113 S1217 RS: Housing Finance Reform and Taxpayer Protection Act of 2013 U.S. Senate 2013-06-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
IICalendar No. 579113th CONGRESS2d SessionS. 1217IN THE SENATE OF THE UNITED STATESJune 25, 2013Mr. Corker (for himself, Mr. Warner, Mr. Johanns, Mr. Tester, Mr. Heller, Ms. Heitkamp, Mr. Moran, Mrs. Hagan, Mr. Kirk, Mr. Manchin, Mr. Chambliss, and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsSeptember 18, 2014Reported by Mr. Johnson of South Dakota, with an amendmentStrike out all after the enacting clause and insert the part printed in italicA BILLTo provide secondary mortgage market reform, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Housing Finance Reform and Taxpayer Protection Act of 2013.(b)
Table of Contents
The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Sec. 2. Definitions.TITLE I—Federal Mortgage Insurance CorporationSec. 101. Establishment.Sec. 102. Director.Sec. 103. Board of Directors.Sec. 104. Office of the Inspector General.Sec. 105. Staff, experts, and consultants.Sec. 106. Reports; testimony; audits.Sec. 107. Initial funding.TITLE II—Duties, Responsibilities, and Structure of the FMICSubtitle A—Duties and AuthoritiesSec. 201. Duties and responsibilities of the FMIC.Sec. 202. Standard form credit risk-sharing mechanisms, products, structures, contracts, or other security agreements.Sec. 203. Mortgage Insurance Fund.Sec. 204. Insurance.Sec. 205. Authority to protect taxpayers in unusual and exigent market conditions.Sec. 206. General powers.Sec. 207. Exemptions.Subtitle B—Oversight of market participantsSec. 211. Approval of private mortgage insurers.Sec. 212. Approval of servicers.Sec. 213. Approval of issuers.Sec. 214. Approval of bond guarantors.Sec. 215. Authority to establish FMIC Mutual Securitization Company.Sec. 216. Additional authority relating to oversight of market participants.Sec. 217. Civil money penalties.Sec. 218. Protection of privilege and other matters relating to disclosures by market participants.Subtitle C—Transparency in market operationsSec. 221. Review of loan documents; disclosures.Sec. 222. Investor immunity.Sec. 223. Uniform securitization agreements.Sec. 224. Uniform mortgage database.Sec. 225. Electronic registration of eligible mortgages.Subtitle D—FMIC StructureSec. 231. Office of Underwriting.Sec. 232. Office of Securitization.Sec. 233. Office of Federal Home Loan Bank Supervision.TITLE III—Transfer of powers, personnel, and property to FMIC from FHFASec. 301. Powers and duties transferred.Sec. 302. Transfer and rights of employees of the FHFA.Sec. 303. Abolishment of FHFA.Sec. 304. Transfer of property and facilities.Sec. 305. Technical and conforming amendments.TITLE IV—Improving transparency, accountability, and efficacy within affordable housingSec. 401. Affordable housing allocations.Sec. 402. Housing Trust Fund.Sec. 403. Capital Magnet Fund.Sec. 404. Additional taxpayer protections.TITLE V—Wind Down of Fannie Mae and Freddie MacSec. 501. Repeal of GSE charters.Sec. 502. Wind down.Sec. 503. Aligning purpose of conservatorship with FMIC.Sec. 504. Conforming loan limits.Sec. 505. Portfolio reduction.Sec. 506. Repeal of mandatory housing goals.TITLE VI—Improvements to functioning of housing marketSec. 601. Continuation of multifamily business of the enterprises.Sec. 602. Multiple lender issues.Sec. 603. GAO report on full privatization of secondary mortgage market.TITLE VII—General provisionsSec. 701. Authority to issue regulations.Sec. 702. Fair value accounting.Sec. 703. Rule of construction.Sec. 704. Severability.
2.
Definitions
As used in this Act, the following definitions shall apply:(1)
Approved bond guarantor
The term approved bond guarantor means any entity that provides credit enhancement that is approved by the Corporation pursuant to section 214 to guarantee the timely payment of principal and interest on securities collateralized by eligible mortgages and insured by the Corporation.(2)
Approved issuer
The term approved issuer means an issuer that is approved by the Corporation pursuant to section 213—(A)to issue covered securities; and(B)to purchase insurance offered by the Corporation pursuant to title II on a covered security for which first loss credit enhancement has been secured.(3)
Approved private mortgage insurer
The term approved private mortgage insurer means an insurer that is approved by the Corporation pursuant to section 211 to provide private mortgage insurance on eligible mortgages.(4)
Approved servicer
The term approved servicer means a servicer that is approved by the Corporation pursuant to section 212 to administer eligible mortgages.(5)
Area
The term area—(A)means a metropolitan statistical area as established by the Office of Management and Budget; and(B)for purposes of paragraph (11)(A)(ii), the median 1-family house price for an area shall be equal to the median 1-family house price of the county within the area that has the highest such median price.(6)
Board; Board of Directors
The terms Board and Board of Directors mean the Board of Directors of the Federal Mortgage Insurance Corporation.(7)
Charter
The term charter means—(A)with respect to the Federal National Mortgage Association, the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); and(B)with respect to the Federal Home Loan Mortgage Corporation, the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.).(8)
Corporation
The term Corporation means the Federal Mortgage Insurance Corporation established under title I.(9)
Covered security
The term covered security means a mortgage-backed security—(A)collateralized by eligible mortgages;(B)which is issued subject to a standard form credit-risk sharing mechanism, product, structure, contract, or other securitization agreement developed by the Corporation pursuant to title II; and(C)which is eligible for insurance by the Corporation pursuant to title II, which insurance is purchased by an approved issuer who issues covered securities.(10)
Director
The term Director means the Director of the Federal Mortgage Insurance Corporation, unless the context otherwise requires.(11)
Eligible mortgage
The term eligible mortgage means a mortgage—(A)that is a residential real estate loan secured by a property with 1 to 4 single family units that has been originated in compliance with the provisions of section 1026 of title 12 of the Code of Federal Regulations, as promulgated by the Bureau of Consumer Financial Protection pursuant to section 129C(b) of the Truth in Lending Act (15 U.S.C. 1639c(b)) (commonly referred to as the Ability-to-Repay and Qualified Mortgage Rule);(B)has a maximum original principal obligation amount that does not exceed the conforming loan limitation determined under section 504;(C)the outstanding principal balance of which at the time of purchase of insurance available under title II—(i)is less than 80 percent of the value of the property securing the mortgage;(ii)is not less than 80 percent but not more than 85 percent of the value of the property securing the mortgage, provided that not less than 12 percent of the unpaid principal balance of the mortgage, accounting for any downpayment required under subparagraph (D), is insured by—(I)an approved private mortgage insurer; or(II)lender recourse or other credit enhancement that—(aa)meets standards comparable to the standards required of private mortgage insurers under section 211; and(bb)is approved by the Corporation;(iii)is not less than 85 percent but not more than 90 percent of the value of the property securing the mortgage, provided that not less than 25 percent of the unpaid principal balance of the mortgage, accounting for any downpayment required under subparagraph (D), is insured by—(I)an approved private mortgage insurer; or(II)lender recourse or other credit enhancement that—(aa)meets standards comparable to the standards required of private mortgage insurers under section 211; and(bb)is approved by the Corporation; or(iv)is not less than 90 percent but not more than 95 percent of the value of the property securing the mortgage, provided that not less than 30 percent of the unpaid principal balance of the mortgage, accounting for any downpayment required under subparagraph (D), is insured by—(I)an approved private mortgage insurer; or(II)lender recourse or other credit enhancement that—(aa)meets standards comparable to the standards required of private mortgage insurers under section 211; and(bb)is approved by the Corporation;(D)having a downpayment which shall be equal to not less than 5 percent of purchase price of the property securing the mortgage;(E)that is insured by an approved State licensed title insurance company;(F)that contains such terms and provisions with respect to insurance, property maintenance, repairs, alterations, payment of taxes, default, reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters, including matters that set forth terms and provisions for establishing escrow accounts, performing financial assessments, or limiting the amount of any payment made available under the mortgage as the Corporation may prescribe; and(G)that contains such other terms or characteristics as the Corporation, in consultation with the Bureau of Consumer Financial Protection, may determine necessary or appropriate.(12)
Enterprise
The term enterprise means—(A)the Federal National Mortgage Association and any affiliate thereof; and(B)the Federal Home Loan Mortgage Corporation and any affiliate thereof.(13)
Federal banking agencies
The term—(A)Federal banking agency means, individually, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Bureau of Consumer Financial Protection, the National Credit Union Administration, the Securities and Exchange Commission, the Commodities Futures Trading Commission, the Federal Housing Finance Agency, and the Secretary of the Treasury; and(B)Federal banking agencies means all of the agencies referred to in subparagraph (A), collectively.(14)
Federal Home Loan Bank
The term Federal Home Loan Bank means a bank established under the authority of the Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.).(15)
Federal Home Loan Bank System
The term Federal Home Loan Bank System means the Federal Home Loan Banks and the Office of Finance and any authorized subsidiary of one or more Federal Home Loan Banks.(16)
FMIC certification date
The term FMIC certification date means the date on which the Board of Directors certifies that the Corporation is operational and able to perform the insurance functions for covered securities as provided in this Act, which date shall be not later than 5 years after the date of enactment of this Act.(17)
Insured depository institution
The term insured depository institution means—(A)an insured depository institution, as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)a credit union that meets the definition of depository institution as that term is defined under section 19(b) of the Federal Reserve Act (12 U.S.C. 461).(18)
Senior Preferred Stock Purchase Agreement defined
The term Senior Preferred Stock Purchase Agreement means—(A)the Amended and Restated Senior Preferred Stock Purchase Agreement, dated September 26, 2008, as such Agreement has been amended on May 6, 2009, December 24, 2009, and August 17, 2012, respectively, and as such Agreement may be further amended and restated, entered into between the Department of the Treasury and each enterprise, as applicable; and(B)any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of an enterprise issued or sold pursuant to such Agreement.(19)
Transfer date
The term transfer date means the date that is 1 year after the date of enactment of this Act.
<enum>I</enum><header>Federal Mortgage Insurance Corporation</header><section id="idD4F7D7A30CA948EFB30CFB4B7F5FA34F"><enum>101.</enum><header>Establishment</header><subsection id="id9A4FB049BEE44FBDA1E66020A4ACB7B4"><enum>(a)</enum><header>Establishment</header><text>There is hereby established the Federal Mortgage Insurance Corporation which shall have the powers hereinafter granted.</text></subsection><subsection id="id7D541F9D247E4021AD542BD496B78894"><enum>(b)</enum><header>Purpose</header><text>The purpose of the Corporation shall be to—</text><paragraph id="id2E058AE236044549A0B27FEB59E866A4"><enum>(1)</enum><text>provide liquidity, transparency, and access to mortgage credit by supporting a robust secondary mortgage market and the production of residential mortgage-backed securities; and</text></paragraph><paragraph id="idF90FCFF45F6E4461AD69AFB6E44108F7"><enum>(2)</enum><text>protect the taxpayer from having to absorb losses incurred in the secondary mortgage market during periods of economic stress.</text></paragraph></subsection><subsection id="id2f96e14d42e543319e9310b95419eaa9"><enum>(c)</enum><header>Federal Status</header><text>The Corporation shall be an independent agency of the Federal Government.</text></subsection><subsection id="idd762f9f8ae104aec80a471ffc7166a3a"><enum>(d)</enum><header>Succession</header><text>The Corporation shall have succession until dissolved by Act of Congress.</text></subsection><subsection id="idD04C0E3CC433472591495967F09BA808"><enum>(e)</enum><header>Principal office</header><text>The Corporation shall maintain its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof.</text></subsection><subsection id="id30317E366806451D9906B606F33B997C"><enum>(f)</enum><header>Authority To establish other offices</header><text>The Corporation may establish such other offices in such other place or places as the Corporation may deem necessary or appropriate in the conduct of its business.</text></subsection><subsection id="id687FD7119F844B4C8589E00C56A2824F"><enum>(g)</enum><header>Prohibition</header><text>The Corporation shall not engage in mortgage origination.</text></subsection></section><section id="id521A5B4A4A954D1386631BA43B1D94CE"><enum>102.</enum><header>Director</header><subsection id="id11DB206E18EC4A39AF78A94C10575DC1"><enum>(a)</enum><header>Establishment of position</header><text>There is established the position of the Director of the Corporation, who shall be the head of the Corporation.</text></subsection><subsection id="id258C80A8D893489EAE3A4D13D2F531E2"><enum>(b)</enum><header>Appointment; term</header><paragraph id="id15192A6050174A208E79051970402F16"><enum>(1)</enum><header>Appointment</header><text>The Director shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who—</text><subparagraph id="id07B106F324FD4A62964A4360B5F96E3B"><enum>(A)</enum><text>are citizens of the United States; and</text></subparagraph><subparagraph id="id19BB68B160B94A93B07423E11CF3DBDD"><enum>(B)</enum><text>have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working in, the mortgage securities markets and housing finance.</text></subparagraph></paragraph><paragraph id="id76D37E911E684AA8BAAA7D0E688D7B6A"><enum>(2)</enum><header>Term</header><text>The Director shall be appointed for a term of 5 years, unless removed before the end of such term for cause by the President.</text></paragraph><paragraph id="id2902E926500140628693172223F1D93F"><enum>(3)</enum><header>Vacancy</header><subparagraph id="idF94FC39BD9414D83BEAC1663437AF37F"><enum>(A)</enum><header>In general</header><text>A vacancy in the position of Director that occurs before the expiration of the term for which a Director was appointed shall be filled in the manner established under paragraph (1), and the Director appointed to fill such vacancy shall be appointed only for the remainder of such term.</text></subparagraph><subparagraph id="idFC183293E18B4572A662066627F580E7"><enum>(B)</enum><header>Acting Director</header><clause id="idE861CF5139BD448CB8CCBEC189DDA5DD"><enum>(i)</enum><header>Designation by the President</header><subclause id="idBFA8CA866040459AB8C0E48D9E3C46FA"><enum>(I)</enum><header>Eligible individuals</header><text>If the Senate has not confirmed a Director, the President may designate either the individual nominated, but not yet confirmed, for the position of Director or a member of the Board of Directors to serve as the Acting Director, and such Acting Director shall have all the rights, duties, powers, and responsibilities of the Director, until such time as a Director is confirmed by the Senate.</text></subclause><subclause id="id5FF7774C9D134DDA93FBD650AE572012"><enum>(II)</enum><header>Limitation</header><text>No individual may serve concurrently as the Acting Director of the Corporation and the Director of the Federal Housing Finance Agency.</text></subclause></clause></subparagraph></paragraph><paragraph id="idCFD6F41D7A644A87ABA858C79E98893E"><enum>(4)</enum><header>Service after end of term</header><text>An individual may serve as the Director after the expiration of the term for which appointed until a successor has been appointed.</text></paragraph><paragraph id="id2461FE96226D45408A5BE2448C46E69D"><enum>(5)</enum><header>Compensation</header><text>The Director shall be compensated at the rate prescribed for level II of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5313">section 5313</external-xref> of title 5, United States Code.</text></paragraph><paragraph id="id01ABFB8F12764C05A9254DBA5C89E999"><enum>(6)</enum><header>Rules of construction</header><text>No individual—</text><subparagraph id="id65FB182C67DD4EF2867461FDA1424A01"><enum>(A)</enum><text>may serve concurrently as the Director of the Corporation and the Director of the Federal Housing Finance Agency; and</text></subparagraph><subparagraph id="id0E3598F26651403DA08DE0C9E1CEF4DB"><enum>(B)</enum><text>that has, at any time prior to, on, or after the date of enactment of this Act, served as the Director of the Federal Housing Finance Agency may serve as the Director of the Corporation.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id31590981CF904370B9A597FB3159CDF9"><enum>(c)</enum><header>Membership on FSOC</header><text>The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id15D38635E89E4433A87690312461BF10"><enum>(1)</enum><text>in section 2, by amending paragraph (12)(E) to read as follows:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id575944082C524C8FB56267AA19D989CD" reported-display-style="strikethrough" style="OLC"><subparagraph commented="no" id="idC53C87E35BD444668E3BE3219D8ED333"><enum>(E)</enum><text>the Federal Mortgage Insurance Corporation, with respect to—</text><clause commented="no" id="idBC7553B48B36472E9886DE00024D001A"><enum>(i)</enum><text>the Mortgage Insurance Fund established under title II of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>; and</text></clause><clause commented="no" id="idF0101DE17DA8493494A00C97DB9F48E6"><enum>(ii)</enum><text>the Federal Home Loan Banks or the Federal Home Loan Bank System.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA4770F5074BC4378954BF6E16C6146FA"><enum>(2)</enum><text>in section 111(b)(1)(H), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></paragraph></subsection></section><section id="idF0B0DE044B9F469B885DDE2E51236E79"><enum>103.</enum><header>Board of Directors</header><subsection id="idAB7A95F389B542BA89A0A78DA6C78508"><enum>(a)</enum><header>Board of Directors</header><paragraph id="idf2c8c12281d24621b374334c427648d6"><enum>(1)</enum><header>Voting members</header><text>The management of the Corporation shall be vested in a Board of Directors consisting of 5 voting members—</text><subparagraph id="id0e2b4edc8cd442919697f9ed8074fc81"><enum>(A)</enum><text>1 of whom shall be the Director, who shall serve as Chairperson of the Board; and</text></subparagraph><subparagraph id="id98c40d00d8db4194b473c9905cd7b051"><enum>(B)</enum><text>4 of whom shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States—</text><clause id="id8BB4D639F9324B3E8EBD3DA4607158EC"><enum>(i)</enum><text>1 of whom shall have demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working in, the field of asset management;</text></clause><clause id="id3C3705B5A0054DD7B98232AD69304403"><enum>(ii)</enum><text>1 of whom shall have demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working in, mortgage insurance markets;</text></clause><clause id="idC4724CE4DD7247DE903F4814E0606093"><enum>(iii)</enum><text>1 of whom shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working with, lenders having less than $10,000,000,000 in total assets; and</text></clause><clause id="id46CF94300EC94C808E35D9089B145106"><enum>(iv)</enum><text>1 of whom shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working with, multifamily housing development.</text></clause></subparagraph></paragraph><paragraph id="id725641c932214ad8b1d28392f695d211"><enum>(2)</enum><header>Non-voting member</header><text>The President shall appoint the Director of the Federal Housing Finance Agency as an additional non-voting member of the Board of Directors. The Director of the Federal Housing Finance Agency shall serve as non-voting member of the Board of Directors until such time as that position is abolished pursuant to title III.</text></paragraph><paragraph id="H9DB6E400D4D747D8895065DEEBDE64E0"><enum>(3)</enum><header>Independence</header><subparagraph id="HF277119FF9F848138A160ECDB8638C32"><enum>(A)</enum><header>In general</header><text>Each voting member of the Board of Directors shall be independent and neutral and maintain a fiduciary relationship to the Corporation in performing his or her duties.</text></subparagraph><subparagraph id="H1309AAF124D942A3835B94FA95C6E9F1"><enum>(B)</enum><header>Independence determination</header><text>In order to be considered independent for purposes of this paragraph, a voting member of the Board of Directors—</text><clause id="H7F46653ECF1544A583C7EFD7F756DFD6"><enum>(i)</enum><text>may not, other than in his or her capacity as a member of the Board of Directors or any committee thereof—</text><subclause id="H7EDE8A9EB0384208B137652DCA3FEA57"><enum>(I)</enum><text>accept any consulting, advisory, or other compensatory fee from the Corporation; or</text></subclause><subclause id="H8435FE13954C4471A33601A34D8D231A"><enum>(II)</enum><text>be a person associated with the Corporation or with any affiliated company thereof; and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H1C68BDD06DF84813ACF424DFA463573A"><enum>(ii)</enum><text>shall be disqualified from any deliberation involving any transaction of the Corporation in which the member has a financial interest in the outcome of the transaction.</text></clause></subparagraph></paragraph><paragraph id="id8caeedbfab884b40b21349cf3e79ddf3"><enum>(4)</enum><header>Rule of construction</header><text>No individual that has, at any time prior to, on, or after the date of enactment of this Act, served as the Director or Acting Director of the Federal Housing Finance Agency may serve as a voting member of the Board of Directors.</text></paragraph></subsection><subsection id="idCC4852E1208D4D26833CC19347CE718B"><enum>(b)</enum><header>Administration</header><text>Except as otherwise may provided in this Act, the Board of Directors shall administer the affairs of the Corporation fairly and impartially and without discrimination.</text></subsection><subsection id="id1FA8A0E2221448C7B40C7FBC54C4BBAD"><enum>(c)</enum><header>Consultation</header><text>The Board of Directors may, in carrying out any duty, responsibility, requirement, or action authorized under this Act, consult with the Federal banking agencies or any individual Federal banking agency, as the Board determines necessary and appropriate.</text></subsection><subsection id="idc6e609c18d2742d8b68ecbf6e8eca60e"><enum>(d)</enum><header>Terms</header><paragraph id="id60177f853db840538fcb2346a10fb0da"><enum>(1)</enum><header>Appointed members</header><text>Each appointed voting member shall be appointed for a term of 5 years and shall serve on a full-time basis.</text></paragraph><paragraph id="id90091d155cc146848efb5b848822b046"><enum>(2)</enum><header>Interim appointments</header><text>Any voting member appointed to fill a vacancy occurring before the expiration of the term for which such member's predecessor was appointed shall be appointed only for the remainder of such term.</text></paragraph><paragraph id="idace22c66423149e182075ff44076a81b"><enum>(3)</enum><header>Continuation of service</header><text>The Chairperson and each appointed voting member may continue to serve after the expiration of the term of office to which such member was appointed until a successor has been appointed and qualified.</text></paragraph></subsection><subsection id="id82389df3eb634e0691eee51c643460fa"><enum>(e)</enum><header>Vacancy</header><text>A vacancy in the voting membership of the Board of Directors shall not affect the powers of the Board, and shall be filled in the manner in which the original appointment was made.</text></subsection><subsection id="id3E03D9A20C4347F99310EB867D5C8B01"><enum>(f)</enum><header>Voting</header><text>A majority vote of all voting members of the Board of Directors is necessary to resolve all voting issues of the Corporation.</text></subsection><subsection id="H6E6AB09D556B4D2792A9AC4F0999FC63"><enum>(g)</enum><header>Meetings</header><text>The Board of Directors shall meet in accordance with the bylaws of the Corporation—</text><paragraph commented="no" display-inline="no-display-inline" id="H95F79F3E3431401F9D5010239DB095D3"><enum>(1)</enum><text>at the call of the Chairperson; and</text></paragraph><paragraph id="HA179EB9ECCB34056832CB41A0C096635"><enum>(2)</enum><text>not less frequently than once each month.</text></paragraph></subsection><subsection id="H9790179FF98D48A5BD6930289E5EB0A6"><enum>(h)</enum><header>Quorum</header><text>Three voting members of the Board of Directors then in office shall constitute a quorum.</text></subsection><subsection id="HD87FD99E9D394E15ABAB02FDAF1A3C9A"><enum>(i)</enum><header>Bylaws</header><text>A majority of the voting members of the Board of Directors may amend the bylaws of the Corporation.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H1F7C61843B014F64AD30323F060F185C"><enum>(j)</enum><header>Attendance</header><text>Members of the Board of Directors may attend meetings of the Corporation and vote in person, via telephone conference, or via video conference.</text></subsection><subsection commented="no" id="idc064c23f190f4c37bb27078ad88e6c10"><enum>(k)</enum><header>Ineligibility for other offices during service</header><paragraph commented="no" id="id47F7B386F16F40918B5C188A21A90184"><enum>(1)</enum><header>In general</header><text>No voting member of the Board of Directors may during the time such member is in office—</text><subparagraph commented="no" id="id6cfc553eea3248f7ae1deb5f037b4062"><enum>(A)</enum><text>be an officer or director of any insured depository institution, depository institution holding company, Federal Reserve bank, Federal home loan bank, approved servicer, approved private mortgage insurer, institution that originates eligible mortgages, or institution that issues a covered security; or</text></subparagraph><subparagraph commented="no" id="idafb1feaea1ec41f19db20bcb5a54415f"><enum>(B)</enum><text>hold stock or a controlling interest in any insured depository institution or depository institution holding company, approved servicer, approved private mortgage insurer, institution that originates eligible mortgages, or institution that issues a covered security.</text></subparagraph></paragraph><paragraph commented="no" id="id17b9cb770c8f4da5b5fcae6ca287d4c9"><enum>(2)</enum><header>Certification</header><text>Upon taking office, each voting member of the Board of Directors shall certify under oath that such member has complied with this subsection and such certification shall be filed with the secretary of the Board of Directors.</text></paragraph></subsection><subsection id="id40c2da8d4160421cb54ea577b23e1cab"><enum>(l)</enum><header>Status of employees</header><paragraph id="iddbd3d30c4f524a35ae5c054160600c75"><enum>(1)</enum><header>In general</header><text>A director, member, officer, or employee of the Corporation has no liability under the Securities Act of 1933 (15 U.S.C. 77a et seq.) with respect to any claim arising out of or resulting from any act or omission by such person within the scope of such person's employment in connection with any transaction involving the Corporation. This subsection shall not be construed to limit personal liability for criminal acts or omissions, willful or malicious misconduct, acts or omissions for private gain, or any other acts or omissions outside the scope of such person's employment.</text></paragraph><paragraph id="id11944ab279f74c86b15475331859c46b"><enum>(2)</enum><header>Effect on other law</header><subparagraph id="idB72ABD1F0A944D99956F40CD9BB09810"><enum>(A)</enum><header>In general</header><text>This subsection does not affect—</text><clause id="id93bf4fcfff544ebb917fbffc40c40c35"><enum>(i)</enum><text>any other immunities and protections that may be available to such person under applicable law with respect to such transactions; or</text></clause><clause id="id672907d0fc99416f93a208f39c94edd8"><enum>(ii)</enum><text>any other right or remedy against the Corporation, against the United States under applicable law, or against any person other than a person described in paragraph (1) participating in such transactions.</text></clause></subparagraph><subparagraph id="idbb9701c441234be4bf92210c787c089b"><enum>(B)</enum><header>Rule of construction</header><text>This subsection shall not be construed to limit or alter in any way the immunities that are available under applicable law for Federal officials and employees not described in this subsection.</text></subparagraph></paragraph></subsection></section><section id="idB9821AD4BCCF4B858E57EB29306B508A"><enum>104.</enum><header>Office of the Inspector General</header><subsection id="id0E5735C0E298407CB09FAA49200222BE"><enum>(a)</enum><header>Office of Inspector General</header><paragraph id="idC7C5EC2727AE4B7DB04DC69B983ED52F"><enum>(1)</enum><header>In general</header><text>There is established the Office of the Inspector General of the Federal Mortgage Insurance Corporation. The head of the Office of the Inspector General of the Federal Mortgage Insurance Corporation is the Inspector General of the Federal Mortgage Insurance Corporation (in this section referred to as the <quote>Inspector General</quote>), who shall be appointed by the President, by and with the advice and consent of the Senate.</text></paragraph><paragraph id="idFEFD7948C38F4E07992F5DD34311DE85"><enum>(2)</enum><header>Additional responsibilities</header><text>In addition to carrying out the requirements established under the Inspector General Act of 1978 (5 U.S.C. App.), the Inspector General shall—</text><subparagraph id="id0992D584BEB64C138118070EA5DCAFFF"><enum>(A)</enum><text>conduct, supervise, and coordinate audits and investigations relating to the programs and operations of the Corporation—</text><clause id="idF1D0034962EB407CB74E6466B3EFF4B6"><enum>(i)</enum><text>to ensure that the first loss position that the Corporation requires of private market holders of covered securities insured under this Act is adequate to cover losses that might be incurred as a result of adverse economic conditions, wherein such conditions are generally consistent with the economic conditions, including national home price declines, observed in the United States during moderate to severe recessions experienced during the last 100 years; and</text></clause><clause id="id033A56B29E4543E88A50E7F071299D4E"><enum>(ii)</enum><text>with respect to the—</text><subclause id="id939B9470C8D94A55A46A4F1B4584F0CB"><enum>(I)</enum><text>oversight and supervision of the Federal Home Loan Banks and the Federal Home Loan Bank System; and</text></subclause><subclause id="id745093A98D764F1D89B135306B125BC9"><enum>(II)</enum><text>the contracting practices and procedures of the Corporation; and</text></subclause></clause></subparagraph><subparagraph id="id13A32A9B49D84939A89F733346CF5C0B"><enum>(B)</enum><text>recommend policies for the purpose of addressing any deficiencies, inefficiencies, gaps, or failures in the administration of such programs and operations.</text></subparagraph></paragraph><paragraph id="idFDBEA9CA705E4B249D94475ADF1E34E8"><enum>(3)</enum><header>Inspector General report; report of independent actuary</header><text>Beginning 1 year after the FMIC certification date, and annually thereafter, the Inspector General and an independent actuary contracted for by the Director shall each conduct an examination and issue a separate report regarding—</text><subparagraph id="idE334A9E565144844AC44315F66BD0116"><enum>(A)</enum><text>the adequacy of insurance fees charged by the Board of Directors under title II; and</text></subparagraph><subparagraph id="idE493DCA613A344458C7B995E8D7CB32C"><enum>(B)</enum><text>the adequacy of the Mortgage Insurance Fund established under title II.</text></subparagraph></paragraph></subsection><subsection id="id881422F7C947463C9717C614B3D88B90"><enum>(b)</enum><header>Amendments to Inspector General Act of 1978</header><text>Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text><paragraph id="id0485055FF38E4563BF61A7E234566A88"><enum>(1)</enum><text>in paragraph (1), by inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation;</quote> after <quote>the Director of the Federal Housing Finance Agency;</quote>; and</text></paragraph><paragraph id="id72CE0F620E50407EBFD0597BCA444546"><enum>(2)</enum><text>in paragraph (2), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>the Federal Housing Finance Agency,</quote>.</text></paragraph></subsection><subsection id="idAB8A2D2BA0354ED9B47AA883D13C2A0A"><enum>(c)</enum><header>Compensation</header><text>The annual rate of basic pay of the Inspector General shall be the annual rate of basic pay provided for positions at level III of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5314">section 5314</external-xref> of title 5, United States Code.</text></subsection></section><section id="id6a0db12365014f61a548ab644417e295"><enum>105.</enum><header>Staff, experts, and consultants</header><subsection id="id280fef4c96fe437b8d0dde23fbcb2332"><enum>(a)</enum><header>Compensation</header><paragraph id="id4c0bac2894c04153b727a5b26c64e3c5"><enum>(1)</enum><header>In general</header><text>The Board of Directors may appoint and fix the compensation of such officers, attorneys, economists, examiners, and other employees as may be necessary for carrying out the functions of the Corporation.</text></paragraph><paragraph id="idb85a58d0be3a40f5990cd599947a078d"><enum>(2)</enum><header>Rates of pay</header><text>Rates of basic pay and the total amount of compensation and benefits for all employees of the Corporation may be—</text><subparagraph id="idC171156C84F8455CBD38610FD3D8F412"><enum>(A)</enum><text>set and adjusted by the Board of Directors without regard to the provisions of chapter 51 or subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United States Code; and</text></subparagraph><subparagraph id="idACD70CC0B780438382BC020127D6B30F"><enum>(B)</enum><text>reasonably increased, notwithstanding any limitation set forth in paragraph (3), if the Board of Directors determines such increases are necessary to attract and hire qualified employees.</text></subparagraph></paragraph><paragraph id="id2db6b6bdb8a24fb1b05aa45de8f3b202"><enum>(3)</enum><header>Parity</header><text>The Board of Directors may provide additional compensation and benefits to employees of the Corporation, of the same type of compensation or benefits that are then being provided by any agency referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not then being provided, could be provided by such an agency under applicable provisions of law, rule, or regulation. In setting and adjusting the total amount of compensation and benefits for employees, the Board of Directors shall consult with and seek to maintain comparability with the agencies referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/1833b">12 U.S.C. 1833b</external-xref>).</text></paragraph></subsection><subsection id="id5bc5a74415cc4deaaec5c281422c9eda"><enum>(b)</enum><header>Detail of government employees</header><text>Upon the request of the Board of Directors, any Federal Government employee may be detailed to the Corporation without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.</text></subsection><subsection id="idfb1eb190a47b4e9fa8aa8937ae956a93"><enum>(c)</enum><header>Experts and consultants</header><text>The Board of Directors may procure the services of experts and consultants as the Board considers necessary or appropriate.</text></subsection><subsection id="idfca430dd5d5d4d478f9f12103803c598"><enum>(d)</enum><header>Technical and professional advisory committees</header><text>The Board of Directors may appoint such special advisory, technical, or professional committees as may be useful in carrying out the functions of the Corporation.</text></subsection></section><section id="id7B8A552DE01F43F3A3026D1263D2E60B"><enum>106.</enum><header>Reports; testimony; audits</header><subsection id="id7b6414bc1bfb4d1eb1b722b1b2f4d833"><enum>(a)</enum><header>Reports</header><paragraph id="idAE5B6CB86D2A49FCB882756541477998"><enum>(1)</enum><header>In general</header><text>The Corporation shall submit, on an annual basis, to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written report of its operations, activities, budget, receipts, and expenditures for the preceding 12-month period.</text></paragraph><paragraph id="id28AB9149442A4E07B17C27AACB03E60A"><enum>(2)</enum><header>Contents of report</header><text>The report required under subsection (a) shall include an analysis of—</text><subparagraph id="idF5E3CC44EB9A43298144CC297361ADE5"><enum>(A)</enum><text>with respect to the Mortgage Insurance Fund established under section 203—</text><clause id="idCAC070FC4FB4437B86BCCB8EB1664F05"><enum>(i)</enum><text>the current financial condition of the Mortgage Insurance Fund;</text></clause><clause id="id2BC322150CB6487094AF4846529D6250"><enum>(ii)</enum><text>the exposure of the Mortgage Insurance Fund to changes in those economic factors most likely to affect the condition of that fund;</text></clause><clause id="idF3C04723411A4BACAA0A4E10849D83CA"><enum>(iii)</enum><text>a current estimate of the resources needed for the Mortgage Insurance Fund to achieve the purposes of this Act; and</text></clause><clause id="id5E4C1CBA4D0348F5AFB89FF57F72B4F9"><enum>(iv)</enum><text>any findings, conclusions, and recommendations for legislative and administrative actions considered appropriate to the future activities of the Corporation;</text></clause></subparagraph><subparagraph id="idF7BDA0330D4B43E1BFD1E6F82A89FEB8"><enum>(B)</enum><text>the secondary mortgage market, the housing market, and the economy, including through use of stress tests, and how such analysis was used to determine and set the reserve ratio for the Mortgage Insurance Fund for the preceding 12-month period;</text></subparagraph><subparagraph id="id07E2511AE2E94142B513494E154B453A"><enum>(C)</enum><text>whether or not the actual reserve ratio of the Mortgage Insurance Fund met—</text><clause id="id4A751580AD894DE189972BB20AE4D61E"><enum>(i)</enum><text>the reserve ratio set for the preceding 12-month period; or</text></clause><clause id="id70015D879D054ABBBC08317B3CD54556"><enum>(ii)</enum><text>the reserve ratio goals established in section 203(e);</text></clause></subparagraph><subparagraph id="id5925EA719F2D45D59AEB72D607BEECF2"><enum>(D)</enum><text>how the Corporation intends to ensure that the goals set for the reserve ratio for the Mortgage Insurance Fund are to be met and maintained for the next 12-month period, and such analysis shall include a detailed and descriptive plan of the actions that the Corporation intends to take pursuant to its authorities under this Act;</text></subparagraph><subparagraph id="id5080F622E6654CF09CB6479286297F5F"><enum>(E)</enum><text>how the Corporation has provided liquidity, transparency, and access to mortgage credit in its support of a robust secondary mortgage market and the production of residential mortgage-backed securities;</text></subparagraph><subparagraph id="idE2221CEA12084FC889834265D9136BE6"><enum>(F)</enum><text>the state of the private label mortgage-backed securities market, and such analysis shall include the submission of a reasonable set of administrative, regulatory, and legislative proposals on how to limit the Federal Government's footprint in the secondary mortgage market;</text></subparagraph><subparagraph id="id0C7A6C2411B24DE58594CD30EA1CAF93"><enum>(G)</enum><text>the effect that further decreases in loan limits would have on the secondary mortgage market, the housing market, and the economy; and</text></subparagraph><subparagraph id="id79AD51CC0E454FE69FBB31F4E331B00E"><enum>(H)</enum><text>the state of the global covered bond market.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id95C4EBDA54D74E4C839975223E9A40A5"><enum>(b)</enum><header>Testimony</header><text>The Chairperson of the Corporation, on a biannual basis, shall provide testimony to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</text></subsection><subsection id="id699F12AEC94D4CADA549F07898E8196F"><enum>(c)</enum><header>Audit of Corporation</header><paragraph id="id120cfc35c3c0463fa98b70fd14d35df1"><enum>(1)</enum><header>Annual audit</header><text>The Comptroller General of the United States shall annually audit the financial transactions of the Corporation in accordance with the United States generally accepted government auditing standards as may be prescribed by the Comptroller General.</text></paragraph><paragraph id="id59F22969F415416CB5900137DBD1D7AC"><enum>(2)</enum><header>Place of audit</header><text>The audit required under this subsection shall be conducted at the place or places where accounts of the Corporation are normally kept.</text></paragraph><paragraph id="idCE290D89334B4A54BD36EB7B6FFC0D13"><enum>(3)</enum><header>Access</header><text>The representatives of the Comptroller General shall have access to the personnel and to all books, accounts, documents, papers, records (including electronic records), reports, files, and all other papers, automated data, or property belonging to or under the control of or used or employed by the Corporation pertaining to its financial transactions and necessary to facilitate the audit required under this subsection, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians.</text></paragraph><paragraph id="id814957C12B5743CEB650E20D4460ED27"><enum>(4)</enum><header>Possession and custody</header><text>All such books, accounts, documents, records, reports, files, papers, and property of the Corporation used to carry out the audit required under this subsection shall remain in the possession and custody of the Corporation.</text></paragraph><paragraph id="idA35DB30684714562B0FDD991C90837D5"><enum>(5)</enum><header>Permissible duplication</header><text>The Comptroller General may obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit without cost to the Comptroller General and the Comptroller General’s right of access to such information shall be enforceable pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/716">section 716(c)</external-xref> of title 31, United States Code.</text></paragraph><paragraph id="id500704cc2db24e0cb470da3f22559442"><enum>(6)</enum><header>Report</header><subparagraph id="idC67191E54688437E909677143B35FD3E"><enum>(A)</enum><header>Submission to Congress</header><text>The Comptroller General shall submit to Congress a report of each annual audit conducted under this subsection.</text></subparagraph><subparagraph id="idDC9E6BE1BF1241CEAF7112F49A5D9AFE"><enum>(B)</enum><header>Required content</header><text>The report to Congress required under subparagraph (A) shall—</text><clause id="id324A96F7395048A4B689113FC59E9382"><enum>(i)</enum><text>set forth the scope of the audit; and</text></clause><clause id="id92B099BAEFCB41488FF5892C10D41E2F"><enum>(ii)</enum><text>include—</text><subclause id="id976C2BD908844B61AD0FE669A59FBC5D"><enum>(I)</enum><text>the statement of assets and liabilities and surplus or deficit;</text></subclause><subclause id="id1D837D5895DB49ADA82CE2816C1559D9"><enum>(II)</enum><text>the statement of income and expenses;</text></subclause><subclause id="id791016DB2013403BA556D8B5648B156F"><enum>(III)</enum><text>the statement of sources and application of funds; and</text></subclause><subclause id="id785FC83DD4E14F25A612FEF6EDBB2FBB"><enum>(IV)</enum><text>such comments and information as the Comptroller General may deem necessary to inform Congress of the financial operations and condition of the Corporation, together with such recommendations with respect thereto as the Comptroller General may deem advisable.</text></subclause></clause></subparagraph><subparagraph id="idE94084A032A94FDDB5B276F0AD36F4D1"><enum>(C)</enum><header>Copies</header><text>A copy of each report required under subparagraph (A) shall be furnished to the President and to the Chairperson of the Corporation at the time such report is submitted to the Congress.</text></subparagraph></paragraph><paragraph id="id1fead710afe6474f80eabdef6be0aec4"><enum>(7)</enum><header>Assistance and costs</header><subparagraph id="id0628C605B41A41BEBCC7265051488C97"><enum>(A)</enum><header>Permitted use of outside assistance</header><text>For the purpose of conducting an audit under this subsection, the Comptroller General may employ by contract, without regard to section 3709 of the Revised Statutes of the United States (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.</text></subparagraph><subparagraph id="id1A6D7229A9C24152AD6ED2486586D86E"><enum>(B)</enum><header>Cost of audit covered by Corporation</header><clause id="idB2A184ED2F2A40CCB303C91CC48854AA"><enum>(i)</enum><header>In general</header><text>Upon the request of the Comptroller General, the Chairperson of the Corporation shall transfer to the Comptroller General from funds available, the amount requested by the Comptroller General to cover the reasonable costs of any audit and report conducted by the Comptroller General pursuant to this subsection.</text></clause><clause id="idD5CB9CFD043C49B79EE58421B4EF99E3"><enum>(ii)</enum><header>Credit of funds</header><text>The Comptroller General shall credit funds transferred under clause (i) to the account at the Treasury established for salaries and expenses of the Government Accountability Office, and such amounts shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report.</text></clause></subparagraph></paragraph></subsection></section><section id="id31AB9C7DD69145119FA2B15FB5329310"><enum>107.</enum><header>Initial funding</header><subsection id="id020DF368396B41B7866AAA052DFF9295"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1316 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4516) is amended by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idA1CADF2F872B4421A3AA1E4E8FBCC313" reported-display-style="strikethrough" style="OLC"><subsection id="id03C861DA12CB4EEEBDDB59EFEFB7C3DF"><enum>(i)</enum><header>Annual assessments relating to initial funding of the FMIC</header><text>Notwithstanding title V of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title> or any other provision of law, for the period beginning on the date of enactment of this subsection and ending on the FMIC certification date (as that date is set forth under section 2(16) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>, the Director, in consultation with the Chairperson of the Federal Mortgage Insurance Corporation, shall establish and collect from the enterprises annual assessments in addition to those required under subsection (a) in an amount not exceeding the amount sufficient to provide for the reasonable costs (including administrative costs) and expenses of the Corporation. All amounts collected under this subsection shall be transferred to the Federal Mortgage Insurance Corporation. The annual assessment shall be payable semiannually for each fiscal year, on October 1 and April 1.</text></subsection><after-quoted-block>. </after-quoted-block></quoted-block></subsection><subsection id="id93872b9f0dba4302bdd2d3af29b553a2"><enum>(b)</enum><header>Treatment of assessments</header><paragraph id="id94307ce3376a42d8b09e07a1939993d5"><enum>(1)</enum><header>Deposit</header><text>Amounts received by the Corporation from assessments imposed under section 1316(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 shall be deposited by the Corporation in the manner provided in section 5234 of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/12/192">12 U.S.C. 192</external-xref>) for monies deposited by the Comptroller of the Currency.</text></paragraph><paragraph id="id1af734ebc30a43989218989e1b510e29"><enum>(2)</enum><header>Not government funds</header><text>The amounts received by the Corporation from any assessment imposed under section 1316(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 shall not be construed to be Government or public funds or appropriated money.</text></paragraph><paragraph commented="no" id="idc1730786f8804e9e8a0ed4ade3b076b1"><enum>(3)</enum><header>No apportionment of funds</header><text>Notwithstanding any other provision of law, the amounts received by the Corporation from any assessment imposed under section 1316(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 shall not be subject to apportionment for the purpose of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, or under any other authority.</text></paragraph><paragraph id="idaf9823cd35c94c0ebc38d1a71a195b6d"><enum>(4)</enum><header>Use of funds</header><subparagraph id="id3AE8D71541E84EEABE406172B2264843"><enum>(A)</enum><header>In general</header><text>The Corporation may use any amounts received from assessments imposed under section 1316(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992—</text><clause id="id42455E49F9154D5B8AF6ED046037D9FA"><enum>(i)</enum><text>for compensation of the employees of the Corporation; and</text></clause><clause id="id960C1C9C466243DCA70A38853FFD160E"><enum>(ii)</enum><text>for all other expenses of the Corporation.</text></clause></subparagraph><subparagraph id="id46f0fd6a40a940899471f3be311531f5"><enum>(B)</enum><header>Treasury investments</header><text>The Corporation may request the Secretary of the Treasury to invest such portions of amounts received from assessments imposed under section 1316(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 that, in the discretion of the Corporation, are not required to meet the current working needs of the Corporation.</text></subparagraph><subparagraph id="id9b44250d7eaa48c3814b30f420d46a83"><enum>(C)</enum><header>Government obligations</header><text>Pursuant to a request under subparagraph (B), the Secretary of the Treasury shall invest such amounts in Government obligations—</text><clause id="id530EA67281CC4E70A91FFCF82F8D1ABE"><enum>(i)</enum><text>guaranteed as to principal and interest by the United States with maturities suitable to the needs of the Corporation; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idD7E1A425C5194E17947BF294192CB979"><enum>(ii)</enum><text>bearing interest at a rate determined by the Secretary of the Treasury taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturity.</text></clause></subparagraph></paragraph></subsection></section><enum>II</enum><header>Duties, Responsibilities, and Structure of the FMIC</header><subtitle id="idA88AC5F5B81E4A22BB3C407EC3E0245A"><enum>A</enum><header>Duties and Authorities</header><section id="id764C1E3D69DE41A1A700401933D84F7A"><enum>201.</enum><header>Duties and responsibilities of the FMIC</header><subsection id="id3DBE4628704142DCA346C6AC8CD81E2E"><enum>(a)</enum><header>Duties</header><text>The principal duties of the Corporation shall be to—</text><paragraph id="id0ACA6260732541DCBE35EDE088FEE68F"><enum>(1)</enum><text>carry out this Act in a manner that—</text><subparagraph id="id1F6432E544D143B886DAE98A9A927588"><enum>(A)</enum><text>minimizes any potential long-term negative cost on the taxpayer; and</text></subparagraph><subparagraph id="idA6AEEB1E730242CBBB01F135C15BE73A"><enum>(B)</enum><text>ensures, to the maximum extent possible—</text><clause id="id67F11788211E4B40999A4A3D990F92A1"><enum>(i)</enum><text>a liquid and resilient housing finance market; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id135B2E49AA0D4752A85257167859B29C"><enum>(ii)</enum><text>the availability of mortgage credit;</text></clause></subparagraph></paragraph><paragraph id="id1B1AD41300A64F84ACECBDA79D919620"><enum>(2)</enum><text>develop standard form credit risk-sharing mechanisms, products, structures, contracts, or other security agreements that require private market holders of a covered security insured under this Act to assume the first loss position with respect to losses incurred on such securities;</text></paragraph><paragraph id="id888D9A467A0D4B72B57C707B6B448738"><enum>(3)</enum><text>provide insurance on any covered security for which private market holders of such security have assumed the first loss position with respect to losses that may be incurred on such security in order to provide a liquid and resilient housing finance market;</text></paragraph><paragraph id="idC366DB5F996D407F9C12967B807066D5"><enum>(4)</enum><text>provide leadership to the housing finance market to help ensure that all geographic locations have access to mortgage credit;</text></paragraph><paragraph id="id975B5058A0FD4039A17D13D66A20DD99"><enum>(5)</enum><text>charge and collect fees in exchange for providing such insurance, whereby such fees shall be sufficient to protect the taxpayer from the risk of providing such insurance and to fund the activities and operations of the Corporation;</text></paragraph><paragraph id="idA4C9211785054DC89E23814DEF67DECA"><enum>(6)</enum><text>establish and maintain a Mortgage Insurance Fund;</text></paragraph><paragraph id="id2B615C4ED80B4F90ACFC2D5C3043B591"><enum>(7)</enum><text>facilitate securitization of eligible mortgages originated by credit unions and community and mid-size banks without securitization capabilities;</text></paragraph><paragraph id="id334218545AD2461EB11ADD65B3F4BF36"><enum>(8)</enum><text>ensure discipline and integrity in the market for covered securities by setting standards for the approval of private mortgage insurers, servicers, issuers, and bond guarantors;</text></paragraph><paragraph id="id2C94F822C9A54CB9A89EC0BA874713B4"><enum>(9)</enum><text>establish, operate, and maintain a database for the collection, public use, and dissemination of uniform loan level information on eligible mortgages;</text></paragraph><paragraph id="id4A4EB9FDDAFD44239C8DEA73BE76BDD0"><enum>(10)</enum><text>develop, adopt, and publish standard uniform securitization agreements for covered securities;</text></paragraph><paragraph id="idD646E5F870EA4CB382942CEB186F923D"><enum>(11)</enum><text>establish, operate, and maintain an electronic registry system for eligible mortgages that collateralize covered securities insured under this Act;</text></paragraph><paragraph id="idADE8A97AEDCD47338F6ACC48932E83BB"><enum>(12)</enum><text>oversee and supervise the common securitization platform developed by the business entity announced by the Federal Housing Finance Agency and established by the enterprises; and</text></paragraph><paragraph id="idE4A749E123B748BE9836928714B49418"><enum>(13)</enum><text>ensure that credit unions and community and mid-size banks—</text><subparagraph id="id3FDAA90D83E643A38BEFBE9B7F4D6ECE"><enum>(A)</enum><text>have equal access to any such common securitization platform and any other securitization platforms; and</text></subparagraph><subparagraph id="idC194FDDA2C94440BA19AB588845182DE"><enum>(B)</enum><text>are not, in their access or use of such platforms, discriminated against through discounts for volume pricing or other mechanisms.</text></subparagraph></paragraph></subsection><subsection id="idd54f5502c8364cce89db0c628bf047b1"><enum>(b)</enum><header>Scope of authority</header><text>The authority of the Corporation shall include the authority to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the Corporation set forth under subsection (a).</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id5aa175ed12b24da3b762112ba06a4842"><enum>(c)</enum><header>Delegation of authority</header><text>The Board of Directors may delegate to officers and employees of the Corporation any of the functions, powers, or duties of the Corporation, as the Board of Directors determines appropriate.</text></subsection></section><section id="idED9F9DC5AF464A718EFA50C9EF7EFA1E"><enum>202.</enum><header>Standard form credit risk-sharing mechanisms, products, structures, contracts, or other security agreements</header><subsection id="idE98CE6D30093409080E60191B9216967"><enum>(a)</enum><header>Requirements; share of loss; diversity</header><text display-inline="yes-display-inline">Pursuant to section 201(a)(2), the Corporation shall develop standard form credit-risk sharing mechanisms, products, structures, contracts, or other security agreements which shall require that the first loss position of private market holders of a covered security insured under this Act—</text><paragraph id="id67933ED45A4F4C349278284EE1FEC432"><enum>(1)</enum><text>is adequate to cover losses that might be incurred as a result of adverse economic conditions, wherein such conditions are generally consistent with the economic conditions, including national home price declines, observed in the United States during moderate to severe recessions experienced during the last 100 years; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC518D9B9C04F4CBE895D464761F2505F"><enum>(2)</enum><text>is not less than 10 percent of the principal or face value of the covered security.</text></paragraph></subsection><subsection id="id40DE639273324E56AB014FA6AF4678E5"><enum>(b)</enum><header>Development window for risk-Sharing mechanisms</header><paragraph id="id58630206ABC04E6A871FCFB44984E815"><enum>(1)</enum><header>In general</header><text>The Corporation shall complete the development and implementation of the mechanisms, products, structures, contracts, or other security agreements required under subsection (a) not later than 5 years after the date of enactment of this Act.</text></paragraph><paragraph id="id299AD2FBEF124DE78CD483E88652221D"><enum>(2)</enum><header>Examination of various mechanisms</header><text>In developing the mechanisms, products, structures, contracts, or other security agreements required under subsection (a), the Corporation shall—</text><subparagraph id="idFB244C9CF6E7404CB8DF3BF249B0B2C2"><enum>(A)</enum><text>examine proposals that include a senior-subordinated deal structure, credit-linked structures, and the use of regulated guarantors with sufficient equity capital to absorb losses associated with moderate or severe economic downturns;</text></subparagraph><subparagraph id="id6E5BE324EABC46FFB56D48FD0887A7A8"><enum>(B)</enum><text>consider any risk-sharing mechanisms, products, structures, contracts, or other security agreements undertaken by the business entity announced by the Federal Housing Finance Agency and established by the enterprises to provide a common securitization platform for issuers in the secondary mortgage market;</text></subparagraph><subparagraph id="id18249CD83C744A998DEBF5E3D32300AF"><enum>(C)</enum><text>consider how each proposed mechanism, product, structure, contract, or other security agreement—</text><clause id="id9fcafac9de714793bf010bdf45c9f185"><enum>(i)</enum><text>minimizes any potential long-term negative cost to the taxpayer;</text></clause><clause id="id7569fb0bb2c94db187e005ddfec2241a"><enum>(ii)</enum><text>impacts the availability of mortgage credit for—</text><subclause id="idAB9B1831C95B4DEAA3F34C699DE8A8E6"><enum>(I)</enum><text>small financial institutions, such as credit unions and community and mid-size banks; and</text></subclause><subclause id="id0C3B36609ADA4796942BBD4D4462BFEA"><enum>(II)</enum><text>consumers;</text></subclause></clause><clause id="id71ab9ed8b2d541ceb15deb01743d2e81"><enum>(iii)</enum><text>influences mortgage affordability;</text></clause><clause id="id63ea3198d4a94f47a3db0110d9bb5b1b"><enum>(iv)</enum><text>allows for loan modifications and foreclosure prevention alternatives;</text></clause><clause id="id6a659f99fa5b49229c247f471a955da7"><enum>(v)</enum><text>interacts with the To-Be-Announced market; and</text></clause><clause id="idf7a7bd8fe7614e1dbaefcd5d8e71d02c"><enum>(vi)</enum><text>facilitates market liquidity and resiliency; and</text></clause></subparagraph><subparagraph id="idE4AB41BFAD684AB39CE1749432174F53"><enum>(D)</enum><text>ensure that lenders of all sizes and from all geographic locations, including rural locations, have equitable access to secondary mortgage market financing.</text></subparagraph></paragraph><paragraph id="idC3640F9C04104D1598022CA53FB26305"><enum>(3)</enum><header>Report</header><subparagraph id="id4325E75F9AE1461BB5C06907C5DB7D6C"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, and annually thereafter until the end of the 5-year period provided in paragraph (1), the Corporation shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that—</text><clause id="idB9FDC22643344726A83F2DF43BBC67D3"><enum>(i)</enum><text>details the benefits and drawbacks of each mechanism, product, structure, contract, or other security agreement that the Director considered in carrying out the requirement of this section;</text></clause><clause id="id5048F97A9C4D4175A33C3B71BF243D01"><enum>(ii)</enum><text>describes the operation and execution of any mechanisms, products, structures, contracts, or other security agreements that the Director determines best fulfills the requirements of this section; and</text></clause><clause id="id840FBB20683E4D99AB0CB504622E7D09"><enum>(iii)</enum><text>explains how the Corporation arrived at the determination made under clause (ii).</text></clause></subparagraph><subparagraph id="id56D183055C894429BA8CB62635BAB24A"><enum>(B)</enum><header>Subsequent reports</header><text>After the expiration of the 5-year period provided in paragraph (1) and the submission of the report required under subparagraph (A), each time the Corporation develops an additional standard form credit risk-sharing mechanism, product, structure, contract, or other security agreement that fulfills the requirements of this section, the Corporation shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives addressing the identical concerns set forth under clauses (i) through (iii) of subparagraph (A).</text></subparagraph></paragraph></subsection></section><section id="id2A5F53D826764700987BE6B54ECEC0F2"><enum>203.</enum><header>Mortgage Insurance Fund</header><subsection id="id9AE43C5865A145288C4F778A955FEDC9"><enum>(a)</enum><header>Establishment</header><text>There is established the Mortgage Insurance Fund, which the Corporation shall—</text><paragraph id="id9B492A0A57D84DDB86664687A564BB5B"><enum>(1)</enum><text>maintain and administer; and</text></paragraph><paragraph id="id3341EB525404491C874855D3F91F65AB"><enum>(2)</enum><text>use to cover losses incurred on covered securities insured under this Act, when such losses exceed the first position losses absorbed by private market holders of such securities.</text></paragraph></subsection><subsection id="id2d98b58039d845fd8ee4d0e02bffe459"><enum>(b)</enum><header>Deposits</header><text>The Mortgage Insurance Fund shall be credited with any—</text><paragraph id="idbf6a6d811c0b4205b1341dae229618f0"><enum>(1)</enum><text>insurance fee amounts required to be deposited in the Fund under this section;</text></paragraph><paragraph id="id5182180423C240038371542A8BFD9150"><enum>(2)</enum><text>guarantee fee amounts collected under section 601; and</text></paragraph><paragraph id="id3c27b4dc1d104f33a52c728de2aee0b2"><enum>(3)</enum><text>amounts earned on investments pursuant to subsection (h).</text></paragraph></subsection><subsection id="idb481acb5c14f4b40bc61fa79cffd25e1"><enum>(c)</enum><header>Fiduciary responsibility</header><text>The Corporation has the responsibility to ensure that the Mortgage Insurance Fund remains financially sound.</text></subsection><subsection id="id0F8B10C13BA343AE8AD9C1D615161818"><enum>(d)</enum><header>Use</header><paragraph id="id20F9623946AC49E78C098FDEF797355F"><enum>(1)</enum><header>In general</header><text>The Mortgage Insurance Fund shall be solely available to the Corporation for use by the Corporation to carry out the functions authorized by this Act and may not be used or otherwise diverted to cover any other expense of the Federal Government.</text></paragraph><paragraph id="id357BC8F0B7C64978B7CAC4B3643638BE"><enum>(2)</enum><header>Exemption from apportionment</header><text>Notwithstanding any other provision of law, amounts received by the Mortgage Insurance Fund pursuant to any fees collected under this section shall not be subject to apportionment for the purposes of chapter 15 of title 31, United States Code, or under any other authority.</text></paragraph></subsection><subsection id="idBE54F0EDEFB5498EBCB2AD321AA0A2C0"><enum>(e)</enum><header>Reserve ratio goals for Mortgage Insurance Fund</header><text>The Corporation shall endeavor to ensure that the Mortgage Insurance Fund attains a reserve balance—</text><paragraph id="id406106B4C3E94AB9A062092DC57F1B62"><enum>(1)</enum><text>of 1.25 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within 5 years of the FMIC certification date, and to strive to maintain such ratio thereafter, subject to subparagraph (B); and</text></paragraph><paragraph id="idBB8E5E90F2334A4C92092B5E1213D4B1"><enum>(2)</enum><text>of 2.50 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within 10 years of the FMIC certification date, and to strive to maintain such ratio at all times thereafter.</text></paragraph></subsection><subsection id="id71218D140349492AAD70EBA4F55E6262"><enum>(f)</enum><header>Maintenance of reserve ratio; establishment of fees</header><paragraph id="ID56c112ab5a2c43e6a46add1e2ca347d6"><enum>(1)</enum><header>Establishment of fees</header><text>The Corporation shall charge and collect a fee, and may in its discretion increase or decrease such fee, in connection with any insurance provided under this title to—</text><subparagraph id="IDfe74ea8615e74a279815279d8d120615"><enum>(A)</enum><text>achieve and maintain the reserve ratio goals established under subsection (e);</text></subparagraph><subparagraph id="ID56b44519c2a340f083c4b9db44f26d46"><enum>(B)</enum><text>achieve such reserve ratio goals, if the actual balance of such reserve is below the goal amounts established under subsection (e); and</text></subparagraph><subparagraph id="id16699D6478DF42B9AA411C8A55F8E3B6"><enum>(C)</enum><text>fund the operations of the Corporation.</text></subparagraph></paragraph><paragraph id="IDbd7982d36c15472cb7cabaa7a374aba8"><enum>(2)</enum><header>Fee considerations</header><text>In exercising the authority granted under paragraph (1), the Corporation shall consider—</text><subparagraph id="ID24a1188c89a946f89df4886dd245b408"><enum>(A)</enum><text>the expected operating expenses of the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="IDb1d2ffafb63a44928892bf5db46f1e63"><enum>(B)</enum><text>the risk of loss to the Mortgage Insurance Fund in carrying out the requirements under this Act;</text></subparagraph><subparagraph id="idC07F73CB55E04F9B908C085E83316FF7"><enum>(C)</enum><text>the risk presented by, and the loss absorption capacity of, the credit enhancement that is provided on the pool of eligible mortgages collateralizing the covered security to be insured under this title;</text></subparagraph><subparagraph id="id562936950FA543F5B202800CD71C97EA"><enum>(D)</enum><text>economic conditions generally affecting the mortgage markets;</text></subparagraph><subparagraph id="idAE5C0CE78FE848E795BEBCA206FE488A"><enum>(E)</enum><text>the extent to which the reserve ratio of the Mortgage Insurance Fund met—</text><clause id="id84F853A8E1424B989BE8954086927884"><enum>(i)</enum><text>the reserve ratio set for the preceding 12-month period; or</text></clause><clause commented="no" display-inline="no-display-inline" id="id6B4738A456944353BF9EA2F1F90B1AAF"><enum>(ii)</enum><text>the reserve ratio goals established in subsection (e); and</text></clause></subparagraph><subparagraph id="ID8e0ab318d94e4e19892319e492f3d71e"><enum>(F)</enum><text>any other factor that the Corporation determines appropriate.</text></subparagraph></paragraph><paragraph id="idE389F20C0E3945D5961516890A632191"><enum>(3)</enum><header>Fee Uniformity</header><text>The fee required under paragraph (1)—</text><subparagraph id="idC21E7BC266B146A6A1884996CF11185A"><enum>(A)</enum><text>shall be set at a uniform amount applicable to all institutions purchasing insurance under this title;</text></subparagraph><subparagraph id="idD0E5FA16E23F455DBC977047C3705DC1"><enum>(B)</enum><text>may not vary—</text><clause id="idB48F9CBB76AA46EC9F3C4E5E8D19BF43"><enum>(i)</enum><text>by geographic location; or</text></clause><clause id="id2778811F8FAF4EF8A50A6EECCC0AA2E0"><enum>(ii)</enum><text>by the size of the institution to which the fee is charged; and</text></clause></subparagraph><subparagraph id="id77C781D4145747FF9ECE911D8F563E3B"><enum>(C)</enum><text>may not be based on the volume of insurance to be purchased by an approved issuer.</text></subparagraph></paragraph><paragraph id="idDE67E945FF79473CB34655F5681B9346"><enum>(4)</enum><header>Deposit into Mortgage Insurance Fund</header><text>Any fee amounts collected under this subsection shall be deposited in the Mortgage Insurance Fund.</text></paragraph></subsection><subsection id="id8f14e089e1a24a66855a753fe70d3d3a"><enum>(g)</enum><header>Full Faith and Credit</header><text>The full faith and credit of the United States is pledged to the payment of all amounts from the Mortgage Insurance Fund which may be required to be paid under any insurance provided under this title.</text></subsection><subsection id="id82F81367164442F7857E4D7E7347BC29"><enum>(h)</enum><header>Investments</header><text>Amounts in the Mortgage Insurance Fund that are not otherwise employed—</text><paragraph id="id427540225E854C73B51304DE69767F73"><enum>(1)</enum><text>shall be invested in obligations of the United States; and</text></paragraph><paragraph id="id92E1BA0AEB0748AB90590B32B3A4E769"><enum>(2)</enum><text>may not be invested in any covered security insured under this Act.</text></paragraph></subsection></section><section id="idDE396487E67E4047B96A4DCF371C7EB3"><enum>204.</enum><header>Insurance</header><subsection id="id01fabfcc412d4024a048525072fba1fa"><enum>(a)</enum><header>Authority</header><text>The Corporation shall, upon application and in exchange for a fee in accordance with section 203(f), insure the payment of principal and interest on a covered security with respect to losses that may be incurred on such security.</text></subsection><subsection id="idD5F1824F190D4B62B5A8D36427705C56"><enum>(b)</enum><header>Precondition; ensuring placement of first loss capital</header><text>The Corporation shall develop standards and processes to ensure that prior to making any commitment to provide insurance under this section that private market holders have taken first loss position in a covered security and that such holders have sufficient capital to cover their risk-sharing obligations.</text></subsection><subsection id="id8DC3B8B1F8244B6FA77D36F7BED7C62A"><enum>(c)</enum><header>Cash payments; continued operations</header><text>In the event of a payment default on an eligible mortgage that collateralizes a covered security insured under this section that exceeds the first loss position assumed by a private market holder or that, in the case of an approved bond guarantor, if the guarantor has become insolvent, the Corporation shall—</text><paragraph id="id8EE4E6BAF85A4385934D839D2E0C05DA"><enum>(1)</enum><text>pay, in cash when due, any shortfalls in payment of principal and interest under the eligible mortgage; and</text></paragraph><paragraph id="idEAA647250B49420A9AEB315A58298DCB"><enum>(2)</enum><text>continue to charge and collect any fees for the provision of insurance (in accordance with section 203(f)) relating to the covered security.</text></paragraph></subsection><subsection id="id527E2003560B4B1193FF2A0AB238FD34"><enum>(d)</enum><header>Full faith and credit</header><text>The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any insurance provided under this section.</text></subsection><subsection id="id92D5B9EB3F7F4AC69B9DA9D2B8C30CA3"><enum>(e)</enum><header>Prohibition on Federal assistance</header><text>Notwithstanding any other provision of law, no Federal funds may be used to purchase or guarantee obligations of, issue lines of credit to, provide direct or indirect access to any financing provided by the United States Government to, or provide direct or indirect grants and aid to any private market holder of the first loss position on a covered security which, on or after the date of enactment of this Act, has defaulted on its obligations, is at risk of defaulting, or is likely to default, absent such assistance from the United States Government.</text></subsection></section><section id="id4671DC57563945928B1FA1F6943A8CA2"><enum>205.</enum><header>Authority to protect taxpayers in unusual and exigent market conditions</header><subsection id="id8C1C734362E74AA2987A83A600FE217B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">If the Corporation, upon the written agreement of the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, and in consultation with the Secretary of Housing and Urban Development, determines that unusual and exigent circumstances have created or threatened to create an anomalous lack of mortgage credit availability within the housing markets that could materially and severely disrupt the functioning of the housing finance system of the United States, the Corporation may, for a period not to exceed 6 months, provide insurance in accord with section 204 to any covered security regardless of whether such security has satisfied the requirements of section 202(a).</text></subsection><subsection id="id889EC6874B004ED094C4A824427D677C"><enum>(b)</enum><header>Considerations</header><text>In exercising the authority granted under subsection (a), the Corporation shall consider the severity of the conditions present in the housing markets and the risks presented to the Mortgage Insurance Fund in exercising such authority.</text></subsection><subsection id="idD8AF2F86BAF14F6BA1FA873BE6D56889"><enum>(c)</enum><header>Limitation</header><text>The authority granted to the Corporation under subsection (a) may not be exercised more than once in any given 3-year period.</text></subsection></section><section id="idc2f92bb57d5b41a98dad61d5546a8b9b"><enum>206.</enum><header>General powers</header><subsection id="idde5b41f4fbe64f55886221537f695afd"><enum>(a)</enum><header>Corporate powers</header><text>The Federal Mortgage Insurance Corporation shall have power—</text><paragraph id="id5737515F8C134919B762F935B45C3445"><enum>(1)</enum><text>to adopt, alter, and use a corporate seal, which shall be judicially noticed;</text></paragraph><paragraph id="id2FC98C52C25E4FEEB56178940E0C948C"><enum>(2)</enum><text>to enter into and perform contracts, leases, cooperative agreements, or other transactions, on such terms as it may deem appropriate, with any agency or instrumentality of the United States, or with any State, Territory, or possession, or the Commonwealth of Puerto Rico, or with any political subdivision thereof, or with any person, firm, association, or corporation;</text></paragraph><paragraph id="idD0EBBEC0BD7E4681BF39AD7AE5A1D798"><enum>(3)</enum><text>to execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers;</text></paragraph><paragraph id="id46D0021C02CA42CC8647A81B9AF8FC18"><enum>(4)</enum><text>in its corporate name, to sue and to be sued, and to complain and to defend, in any court of competent jurisdiction, State or Federal, but no attachment, injunction, or other similar process, mesne or final, shall be issued against the property of the Corporation;</text></paragraph><paragraph id="id62F128340BFF476A8F0807E1A34503A9"><enum>(5)</enum><text>to conduct its business without regard to any qualification or similar statute in any State of the United States, including the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States;</text></paragraph><paragraph id="id837FA4950DA24A498CCEFC497F1FE520"><enum>(6)</enum><text>to lease, purchase, or acquire any property, real, personal, or mixed, or any interest therein, to hold, rent, maintain, modernize, renovate, improve, use, and operate such property, and to sell, for cash or credit, lease, or otherwise dispose of the same, at such time and in such manner as and to the extent that it may deem necessary or appropriate;</text></paragraph><paragraph id="id62F4774F263E4E0FBE244AFD2FD1EE10"><enum>(7)</enum><text>to prescribe, repeal, and amend or modify, rules, regulations, or requirements governing the manner in which its general business may be conducted;</text></paragraph><paragraph id="id66B8F5C856B14620AFD46EBFE11A6047"><enum>(8)</enum><text>to accept gifts or donations of services, or of property, real, personal, or mixed, tangible, or intangible, in aid of any of its purposes; and</text></paragraph><paragraph id="id8BBA59F819DB49698F793551E7D56710"><enum>(9)</enum><text>to do all things as are necessary or incidental to the proper management of its affairs and the proper conduct of its business.</text></paragraph></subsection><subsection id="ide8dd6edaff2f46028417785e6332ef7b"><enum>(b)</enum><header>Expenditures</header><text>Except as may be otherwise provided in this title, in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/91">chapter 91</external-xref> of title 31, United States Code, or in other laws specifically applicable to Government corporations, the Corporation shall determine the necessity for, and the character and amount of its obligations and expenditures, and the manner in which they shall be incurred, allowed, paid, and accounted for.</text></subsection><subsection id="idf7a5c1b84d4a4d278d38d1b23f9b3a68"><enum>(c)</enum><header>Exemption from certain taxes</header><text>The Corporation, including its franchise, capital, reserves, surplus, mortgages or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property of the Corporation shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.</text></subsection><subsection id="idff311aec953a49d695edf4a42e1e9c75"><enum>(d)</enum><header>Exclusive use of name</header><text>No individual, association, partnership, or corporation, except the bodies corporate named under section 101, shall hereafter use the words <quote>Federal Mortgage Insurance Corporation</quote> or any combination of such words, as the name or a part thereof under which the individual, association, partnership, or corporation shall do business. Violations of the foregoing sentence may be enjoined by any court of general jurisdiction at the suit of the proper body corporate. In any such suit, the plaintiff may recover any actual damages flowing from such violation, and, in addition, shall be entitled to punitive damages (regardless of the existence or nonexistence of actual damages) of not exceeding $100 for each day during which such violation is committed or repeated.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id12129ad3ef634b2b9b5562011acc8237"><enum>(e)</enum><header>Fiscal agents</header><text>The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for each of the bodies corporate named in section 101, for its own account or as fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon; and each of such bodies corporate may itself act in such capacities, for its own account or as fiduciary, and for the account of others.</text></subsection></section><section id="id2CFEF93D634543BEBD944007942E2EF8"><enum>207.</enum><header>Exemptions</header><subsection id="id246D703E8E554D6A8642454A6582D370"><enum>(a)</enum><header>Securities exempt from SEC regulation</header><paragraph id="id31D6A2F6732B4BE29874851996B1B4F4"><enum>(1)</enum><header>In general</header><text>All covered securities insured or guaranteed by the Corporation shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.</text></paragraph><paragraph id="id418C37999EC1408AB6868794640CA415"><enum>(2)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">The first sentence of section 3(a)(2) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77c">15 U.S.C. 77c(a)(2)</external-xref>) is amended by inserting <quote>or any covered security, as such term is defined under section 2(9) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>;</quote> after <quote>Federal Reserve bank;</quote>.</text></paragraph></subsection><subsection id="idFB2562E10B6F40A19B9ACE016D5C48C8"><enum>(b)</enum><header>QRM exemption</header><text>Section 15G(e) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-11">15 U.S.C. 78o–11(e)</external-xref>) is amended—</text><paragraph id="id3770AA477D0244E68F3C258F80571A82"><enum>(1)</enum><text>in paragraph (3)(B)—</text><subparagraph id="id27D931BEA48147C7AA752D402991B549"><enum>(A)</enum><text>by striking <quote>Association, the</quote> and inserting <quote>Association and the</quote>; and</text></subparagraph><subparagraph id="id6830F46EC9B44FEBBD57141E59BFE678"><enum>(B)</enum><text>by striking <quote>and the Federal home loan banks</quote>; and</text></subparagraph></paragraph><paragraph id="id5E2B313E35614808AC4766BCF9268B2F"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id26F2864A35394900BD4A87435D126CB1" reported-display-style="strikethrough" style="OLC"><paragraph commented="no" display-inline="no-display-inline" id="idD9FB547F0DAB4D07858A7BCA465D3BB6"><enum>(7)</enum><header>Covered securities insured by the Federal Mortgage Insurance Corporation</header><text>Notwithstanding any other provision of this section, the requirements of this section shall not apply to any covered security, as such term is defined under section 2(9) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>, insured or guaranteed by the Federal Mortgage Insurance Corporation or any institution that is subject to the supervision of the Federal Mortgage Insurance Corporation.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle><subtitle id="id161CCBE6384643978349564D48B265A7"><enum>B</enum><header>Oversight of market participants</header><section id="id68262AE0ADF64843BFC75EF22BB55BE5"><enum>211.</enum><header>Approval of private mortgage insurers</header><subsection id="id6305436D97C748BA86AAEFBD81ACEA12"><enum>(a)</enum><header>Standards for approval of private mortgage insurers</header><paragraph id="idaacfac8922da495fb10f78a1f1248748"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of private mortgage insurers to provide private mortgage insurance on eligible mortgages.</text></paragraph><paragraph id="id55A9D4E8F21541EBA8A3ADF68DD1C9D7"><enum>(2)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include—</text><subparagraph id="idF139F7F48E3A48DDA9C6FD14C0A1256C"><enum>(A)</enum><text>the financial history and condition of the insurer;</text></subparagraph><subparagraph id="id384D2D303A3240E18D89F50D6D8CBFC3"><enum>(B)</enum><text>the adequacy of the insurer's capital structure, including whether the insurer has sufficient capital to cover the first loss insurance obligations it assumes under this Act and that might be incurred in a period of economic stress, including, but not limited to, any period of economic stress that would result in a 30 percent (or greater) national home price decline;</text></subparagraph><subparagraph id="idA194590596284F5D978FDFD4F99ABDCB"><enum>(C)</enum><text>the general character and fitness of the management of the insurer, including compliance history with Federal and State laws;</text></subparagraph><subparagraph id="id39DDAB4EC98D4A24B4F236B3ECC31FF5"><enum>(D)</enum><text>the risk presented by such insurer to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="idfdf616c5a1ed47be94e7e1e181ea72a6"><enum>(E)</enum><text>the adequacy of insurance and fidelity coverage of the insurer;</text></subparagraph><subparagraph id="id6c6d842adaec406d94f5317f0195d44d"><enum>(F)</enum><text>a requirement that the insurer submit audited financial statements to the Director; and</text></subparagraph><subparagraph id="id5B773AAB6198471C94904173C97E2228"><enum>(G)</enum><text>any other standard the Corporation determines necessary or appropriate.</text></subparagraph></paragraph></subsection><subsection id="id0b618edca376490383c67ece98c90116"><enum>(b)</enum><header>Application and approval</header><paragraph id="idd857a9d372c941fc99f3432be807372d"><enum>(1)</enum><header>Application process</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of private mortgage insurers under this section.</text></paragraph><paragraph id="id7a7f15bab2f9407b848084f6d6a7d904"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1) provided the private mortgage insurer meets the standards adopted under subsection (a).</text></paragraph><paragraph id="iddc4f47d595944f2083b9b780fddb48d1"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id0CE2D04697724CE4938FFBFC46355FC7"><enum>(A)</enum><text>publish in the Federal Register a list of newly approved private mortgage insurers; and</text></subparagraph><subparagraph id="id30297A802DE149B29F64D6260BEE3E0F"><enum>(B)</enum><text>maintain an updated list of approved private mortgage insurers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id1dd504459d674ad8b9bd421f810ab8b7"><enum>(c)</enum><header>Review, suspension, and revocation of approved status</header><paragraph id="id97da0e8f5b9145e487e712837611a90e"><enum>(1)</enum><header>In general</header><text>The Corporation may review the status of any approved private mortgage insurer if the Corporation is notified of or becomes aware of any violation by the insurer of this Act or the rules promulgated pursuant to this Act.</text></paragraph><paragraph id="ideb33f0f7386040ef8fd9d2e22328cb94"><enum>(2)</enum><header>Suspension or Revocation</header><subparagraph id="id0496118785f945b1a9a452c190ee3c82"><enum>(A)</enum><header>Corporation authority</header><text>If the Corporation determines, in a review pursuant to paragraph (1), that an approved private mortgage insurer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such insurer.</text></subparagraph><subparagraph id="id65e8489a064a4d4092b6bb3e30e86088"><enum>(B)</enum><header>Rule of construction</header><text>The suspension or revocation of an approved private mortgage insurer's approved status under this paragraph shall have no effect on the status of any covered security.</text></subparagraph></paragraph><paragraph id="id5db618a3696b45758f15aca56087ab3a"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id059C915DD91C44EBBE5336EA57165C05"><enum>(A)</enum><text>publish in the Federal Register a list of any approved private mortgage insurers who lost their approved status; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id821727F28E594A658A81895E3728A950"><enum>(B)</enum><text>maintain an updated list of such insurers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection commented="no" id="ID3396570553d44708bc04d2da7dd8e09f"><enum>(d)</enum><header>Appeals</header><paragraph commented="no" id="idB9563037A435463785AFC46D7760F924"><enum>(1)</enum><header>In general</header><subparagraph commented="no" id="idCCAEA3BC0C8A4DA8A55044DC5B136094"><enum>(A)</enum><header>Appeals of denials of application</header><text>A private mortgage insurer who submits an application under subsection (b)(1) to become an approved private mortgage insurer may appeal a decision of the Corporation denying such application.</text></subparagraph><subparagraph commented="no" id="idEF74E5B0390742EC8BF53A309512EC78"><enum>(B)</enum><header>Appeals of denials of benefits or suspensions of participation</header><text>An approved private mortgage insurer may appeal a decision of the Corporation suspending or revoking the approved status of such insurer.</text></subparagraph></paragraph><paragraph commented="no" id="id906801CC985E4F28B70232D3F2E17760"><enum>(2)</enum><header>Filing of appeal</header><text>Any insurer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.</text></paragraph><paragraph commented="no" id="id4029291D6EF74442B635DC17E7AC5FC9"><enum>(3)</enum><header>Final determination</header><text>The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1F59C30BD8B04F05875A55C173EF0638"><enum>(e)</enum><header>Avoidance of conflicts of interest</header><text>With respect to any eligible mortgage collateralizing a covered security insured under this Act, an approved private mortgage insurer may not provide insurance both—</text><paragraph commented="no" display-inline="no-display-inline" id="id58612992C9A444D0A53E1CDF36734149"><enum>(1)</enum><text>in satisfaction of the credit enhancement required under section 2(11)(C); and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id48C089FBBF404F03A3F424B76808CC3A"><enum>(2)</enum><text>to cover the first loss position of private market holders of such covered security.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id612FE0176DC44ECEB830125AB459FEC4"><enum>212.</enum><header>Approval of servicers</header><subsection id="id0C097FA38E9C467CBC1FE73ECEBAC52A"><enum>(a)</enum><header>Standards for approval of servicers</header><paragraph id="id9CC9488CBEC446B1B56156BFE66256C4"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of servicers to administer eligible mortgages, including standards with respect to—</text><subparagraph id="idE69E161660A9405F87CC1D5368024CFD"><enum>(A)</enum><text>the collection and forwarding of principal and interest payments;</text></subparagraph><subparagraph id="id4D0624369DA04B0393B42C74E5C206E7"><enum>(B)</enum><text>the maintenance of escrow accounts;</text></subparagraph><subparagraph id="id47BF4FF344EF4090AE6A8B7A7374A3EF"><enum>(C)</enum><text>the collection and payment of taxes and insurance premiums;</text></subparagraph><subparagraph id="idEAA2EA51C6A5485FB0F623FBEB9E3CB3"><enum>(D)</enum><text>the maintenance of records on eligible mortgages;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd5546c3619c34d36a4247fb2a2813275"><enum>(E)</enum><text>the establishment of foreclosure loss mitigation programs that seek to enhance investor value and prevent, to greatest extent possible, the need to trigger any claim on insurance offered by the Corporation pursuant to this title;</text></subparagraph><subparagraph id="idc5019d6c23e2407986ea313b5029a953"><enum>(F)</enum><text>the advancement of principal and interest payments to investors in the case of a delinquency by a borrower until such time as the borrower has made all payments in arrears or the property securing the eligible mortgage has been liquidated; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1A7F7E92647940499D76A98338A84CFF"><enum>(G)</enum><text>implementing the terms of any loss mitigation and foreclosure prevention as required by a uniform securitization agreement developed under section 223.</text></subparagraph></paragraph><paragraph id="id3A6E29AD51F0422C9EDB597711E050F6"><enum>(2)</enum><header>Additional required standards</header><text>The standards required under paragraph (1) shall also include—</text><subparagraph id="idA7DC2E7792EE4D8889F2DBB6AF724C54"><enum>(A)</enum><text>the financial history and condition of the servicer;</text></subparagraph><subparagraph id="idED641F7BA7C744CFA3780D20B71B4C72"><enum>(B)</enum><text>the general character and fitness of the management of the servicer, including compliance history with Federal and State laws;</text></subparagraph><subparagraph id="idD41BFDAFC0634BADA09DBA63E0913943"><enum>(C)</enum><text>the risk presented by such servicer to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="id1EC5B2F251624373B204797722DDAC4A"><enum>(D)</enum><text>a requirement that the servicer submit audited financial statements to the Corporation; and</text></subparagraph><subparagraph id="id22B3A079D7E145FBB2ECB0EA765005F9"><enum>(E)</enum><text>any other standard the Corporation determines necessary or appropriate.</text></subparagraph></paragraph><paragraph id="idAB859319D6FC491DB15706DD8E85075B"><enum>(3)</enum><header>Coordination with other regulators</header><text>In developing the standards required under paragraph (1), the Corporation shall—</text><subparagraph id="id2E4F405899D44D99B72D62EDA163DBF5"><enum>(A)</enum><text>coordinate with the Bureau of Consumer Financial Protection; and</text></subparagraph><subparagraph id="id5BBD76E603734A8BAAB474DCCCDF8D90"><enum>(B)</enum><text>to the extent the Corporation determines practical and appropriate, shall coordinate with the other Federal banking agencies.</text></subparagraph></paragraph></subsection><subsection id="id86A4E0E9B5B640258E8F6588411E6225"><enum>(b)</enum><header>Application and approval</header><paragraph id="idD66678E1A64D46649E556FC0596E5DE0"><enum>(1)</enum><header>Application process</header><text>The Corporation shall establish an application process—</text><subparagraph id="idDD3DEDD869FA427B9589509C646B070D"><enum>(A)</enum><text>in such form and manner and requiring such information as the Corporation may require, for the approval of servicers under this section; and</text></subparagraph><subparagraph id="idBC3602F7688943F084F9475BF00A5A2A"><enum>(B)</enum><text>that does not discriminate against or otherwise disadvantage small servicers.</text></subparagraph></paragraph><paragraph id="id35351A2D96AA4A7CB8FEE16D7992D4D9"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1) provided the servicer meets the standards adopted under subsection (a).</text></paragraph><paragraph id="id4C5A16182EC1474BB24E83878A3C2895"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id9D45F1796F204893AFB96743B6DD67FD"><enum>(A)</enum><text>publish in the Federal Register a list of newly approved servicers; and</text></subparagraph><subparagraph id="idE0E2DB805CC346A082FD21A2FF853FFD"><enum>(B)</enum><text>maintain an updated list of approved servicers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="idCA4464D576934DC18CF07AD0DB07F277"><enum>(c)</enum><header>Review, suspension, and revocation of approved status</header><paragraph id="id1E4BE113AB4D43378E02BA1C3CDFC8E8"><enum>(1)</enum><header>In general</header><text>The Corporation may review the status of any approved servicer if the Corporation is notified of or becomes aware of any violation by the servicer of this Act or the rules promulgated pursuant to this Act, including any failure by an approved servicer to comply with terms set forth in any uniform securitization agreement developed under section 223.</text></paragraph><paragraph id="id1B8A7F80A97F4FB8938FDEFDD8497543"><enum>(2)</enum><header>Suspension or Revocation</header><subparagraph id="idF50D6DCD493743A8882A6B731204941A"><enum>(A)</enum><header>Corporation authority</header><text>If the Corporation determines, in a review pursuant to paragraph (1), that an approved servicer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such servicer.</text></subparagraph><subparagraph id="id577EE485E0EE41E18B1B4635668CCE35"><enum>(B)</enum><header>Rule of construction</header><text>The suspension or revocation of an approved servicer's approved status under this paragraph shall have no effect on the status of any covered security.</text></subparagraph></paragraph><paragraph id="id41E2B1AFBE5C41D2A85E486A9AC2465B"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id48C4FE8072A943BF83C976023EBD332D"><enum>(A)</enum><text>publish in the Federal Register a list of any approved servicers who lost their approved status; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id65854B50384B40FFA646EFF0175B360C"><enum>(B)</enum><text>maintain an updated list of such servicers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id3D419C2828FA4B85AE0267AC0E5A8D80"><enum>(d)</enum><header>Appeals</header><paragraph commented="no" id="id451B0E419B3A4D5885198CAD00BA1A23"><enum>(1)</enum><header>In general</header><subparagraph commented="no" id="id727196CBE890421D864F7573A8E9F45A"><enum>(A)</enum><header>Appeals of denials of application</header><text>A servicer who submits an application under subsection (b)(1) to become an approved servicer may appeal a decision of the Corporation denying such application.</text></subparagraph><subparagraph commented="no" id="id7B9E482C6CBF4DA6B8F918BE589269B3"><enum>(B)</enum><header>Appeals of denials of benefits or suspensions of participation</header><text>An approved servicer may appeal a decision of the Corporation suspending or revoking the approved status of such servicer.</text></subparagraph></paragraph><paragraph commented="no" id="idB5FB9BBD3A2247AB80B1FA68BEDFC050"><enum>(2)</enum><header>Filing of appeal</header><text>Any servicer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEAD274B0E8D84268A71D5A3A079F6DF1"><enum>(3)</enum><header>Final determination</header><text>The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id208E85FC14ED48A2A3DF21BC66DBF586"><enum>(e)</enum><header>Petitions for change of servicer by private market holders</header><text>The Corporation shall develop a process by which private market holders of the first loss position in a covered security may petition the Corporation for a change in approved servicers if the private market holders can demonstrate that their current approved servicer has failed to appropriately protect their investment, including by failing to meet any standard identified under subsection (a)(1).</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id5A895DAC2DC44D62BFEE6BAA631FDDFE"><enum>213.</enum><header>Approval of issuers</header><subsection id="id1D46B23367D945CCADD8A388152E1709"><enum>(a)</enum><header>Standards for approval of issuers</header><paragraph id="idB69CADAED46A44E8B80F545A975B8F68"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of issuers to issue covered securities, including standards with respect to an issuer's ability to—</text><subparagraph id="idAB605D3ADDC04056A9DC0B06003E9137"><enum>(A)</enum><text>aggregate eligible mortgage loans into pools;</text></subparagraph><subparagraph id="id5E2E399D3A6847AD83F113D2F6627BFA"><enum>(B)</enum><text>securitize eligible mortgage loans for sale to private investors as a covered security;</text></subparagraph><subparagraph id="id030243FDAECB4A57ABEA23FB62E53DA8"><enum>(C)</enum><text>transfer investment risk and credit to private market participants in accordance with the risk-sharing mechanisms developed by the Corporation under section 202;</text></subparagraph><subparagraph id="id3472DCB6C7D84AD2B406DB6ABDAFA0DB"><enum>(D)</enum><text>ensure equitable access to the secondary mortgage market for covered securities for all institutions regardless of size or geographic location;</text></subparagraph><subparagraph id="idEF8F553F53254543816D60531A6C7712"><enum>(E)</enum><text>create mechanisms for multi-lender pools; and</text></subparagraph><subparagraph id="id2306E36AC7684CCDAD949C72C3D4EABE"><enum>(F)</enum><text>ensure that eligible mortgage loans that collateralize a covered security insured under this title are originated in compliance with the requirements of this Act.</text></subparagraph></paragraph><paragraph id="id92CAEA9776D544E598725A87CC941BCD"><enum>(2)</enum><header>Additional required standards</header><text>The standards required under paragraph (1) shall also include—</text><subparagraph id="idF37BB0C3CDAD47129DEA825616FD2C45"><enum>(A)</enum><text>the financial history and condition of the issuer;</text></subparagraph><subparagraph id="id47A1101678FF4D63BFEA78612023F738"><enum>(B)</enum><text>the adequacy of the capital structure of the issuer;</text></subparagraph><subparagraph id="id1718EF596AFD4DB88D3D4C709EB4F0D9"><enum>(C)</enum><text>the general character and fitness of the management of the issuer, including compliance history with Federal and State laws;</text></subparagraph><subparagraph id="id3A629967E0E2421093F07B4710E8590B"><enum>(D)</enum><text>the risk presented by such issuer to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="ide2494b725225481d9014ab48658e7da3"><enum>(E)</enum><text>the adequacy of insurance and fidelity coverage of the issuer;</text></subparagraph><subparagraph id="id3A3E681D1E674831B36963AF36DB923E"><enum>(F)</enum><text>a requirement that the issuer submit audited financial statements to the Corporation;</text></subparagraph><subparagraph id="id511592965A6E43A7B74E6C92043FFF14"><enum>(G)</enum><text>the capacity of the issuer to secure first loss credit enhancement; and</text></subparagraph><subparagraph id="idD8542E81CB9549F6A596259C87099E5E"><enum>(H)</enum><text>any other standard the Corporation determines necessary or appropriate.</text></subparagraph></paragraph></subsection><subsection id="id994DDC2E3E9844F1B17501416854A375"><enum>(b)</enum><header>Application and approval</header><paragraph id="id8CF861E5565B41A7B72FBF09F81E7A1D"><enum>(1)</enum><header>Application process</header><subparagraph id="id607C6B039AB64D60BE45A3C29EFEA5F4"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of issuers under this section.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDB9DA842FD3F418DBFC7347D6058ADE1"><enum>(B)</enum><header display-inline="yes-display-inline">Application process for insured depository institutions</header><text display-inline="yes-display-inline">If an insured depository institution seeks to become an approved issuer under this section, such institution may only submit its application via a separately capitalized affiliate or subsidiary.</text></subparagraph></paragraph><paragraph id="idFE789C4DE3F44CEAA74D276F4780B09E"><enum>(2)</enum><header>Approval</header><text>The Corporation—</text><subparagraph id="id8D6E0F3993AC4EA1AC3EB9F7DA7821CA"><enum>(A)</enum><text>may approve—</text><clause id="id0EF24C5E7D57453C8FBAD72DAB2F8900"><enum>(i)</enum><text>any application made pursuant to paragraph (1) provided the issuer meets the standards adopted under subsection (a); and</text></clause><clause id="id50C57B769DED48809A94B162BFFD51C9"><enum>(ii)</enum><text>any application to become an approved issuer made by the Federal Home Loan Bank System; and</text></clause></subparagraph><subparagraph id="id7D3BDC6E5478437B8F6E3A8986DE0676"><enum>(B)</enum><text>shall ensure that at least one issuer approved to issue covered securities under this section is dedicated to serving the securitization needs of credit unions and community and mid-size banks without securitization capabilities.</text></subparagraph></paragraph><paragraph id="idF3A4DC52A07C4389BA29CD1889E9E5EF"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id87E762BCB92242B78ED3DF29CCFDC906"><enum>(A)</enum><text>publish in the Federal Register a list of newly approved issuers; and</text></subparagraph><subparagraph id="idE6D97F3D50A94F3B82E5F6D236AC187C"><enum>(B)</enum><text>maintain an updated list of approved issuers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id099D0DADEBFF4C70B7641359C2EE0F84"><enum>(c)</enum><header>Federal Home Loan Bank System</header><paragraph commented="no" display-inline="no-display-inline" id="id4102A3B02B1A48278D7F4FE812C3C1CF"><enum>(1)</enum><header>In general</header><text>If the Federal Home Loan Bank System is approved by the Corporation to become an approved issuer under this section, the Corporation shall—</text><subparagraph commented="no" display-inline="no-display-inline" id="id02649D9C66B7461CBA0C55D67A320E1E"><enum>(A)</enum><text>develop a process by which each individual Federal Home Loan Bank may elect not to engage or otherwise contribute to any activity practiced by the Federal Home Loan Bank System as an approved issuer;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id06941FA92D76433EACD0A0F30E049196"><enum>(B)</enum><text>ensure that, notwithstanding section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431), any covered securities issued by the Federal Home Loan Bank System as an approved issuer are not issued as consolidated Federal Home Loan Bank debentures and are explicitly designated or otherwise treated as not being the joint and several obligations of any individual Federal Home Loan Bank that has made an election under subparagraph (A); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82DC78BC47B84129A3C42387D05736CB"><enum>(C)</enum><text>ensure that in establishing the capital standards set forth under subsection (a)(2)(B) with respect to the Federal Home Loan Bank System, that such standards shall—</text><clause commented="no" display-inline="no-display-inline" id="id44C4FC2285EA4C2F96ADD1A7D9E2DCF4"><enum>(i)</enum><text>not be applicable to any individual Federal Home Loan Bank that has made an election under subparagraph (A);</text></clause><clause id="idca9216d1a12340b782f535cdd5fab4fe"><enum>(ii)</enum><text>be based on the volume of eligible mortgage loan originations made by the Federal Home Loan Banks that have not made an election under subparagraph (A); and</text></clause><clause id="id5DF2FDC2EB6A42DAB9BBA6E93FAB687B"><enum>(iii)</enum><text>not adversely impact the traditional liquidity and advance business of the Federal Home Loan Banks or the Federal Home Loan Bank System.</text></clause></subparagraph></paragraph><paragraph id="id331F128728E446A199543EDE371F230F"><enum>(2)</enum><header>Federal Home Loan Bank Act</header><subparagraph id="id58E910A815CE452FA3B384CF36559317"><enum>(A)</enum><header>Amendment</header><text>Section 12 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1432">12 U.S.C. 1432</external-xref>) is amended by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id3E3EE31D4C2C46EA84E35D7C87FEFE20" reported-display-style="strikethrough" style="OLC"><subsection id="id305EA0CECB6E450EB9ED9FE02149B2BB"><enum>(c)</enum><text>Subject to such regulations as may be prescribed by the Corporation, one or more Federal Home Loan Banks may establish a subsidiary. Any subsidiary established under this subsection shall be subject to supervision by the Office of Federal Home Loan Bank Supervision of the Corporation and shall be restricted to engaging in activities related to being an approved issuer, as that term is defined under section 2(2) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>.</text></subsection><after-quoted-block>. </after-quoted-block></quoted-block></subparagraph><subparagraph id="id13467D4BB662406F8A6E3134AD6FAA04"><enum>(B)</enum><header>Effective date</header><text>The amendment made by subparagraph (A) shall take effect on the transfer date.</text></subparagraph></paragraph></subsection><subsection id="id035A7960968E49CDBB79D610DABD1B0A"><enum>(d)</enum><header>Review, suspension, and revocation of approved status</header><paragraph id="id718939CE678745439D6769A4F2AA6F67"><enum>(1)</enum><header>In general</header><text>The Corporation may review the status of any approved issuer if the Corporation is notified of or becomes aware of any violation by the issuer of this Act or the rules promulgated pursuant to this Act.</text></paragraph><paragraph id="id05B09414BFD043F6AED409CC6CDADE85"><enum>(2)</enum><header>Suspension or Revocation</header><subparagraph id="id7D8455F1031D4CE5B12A8A224B3D08DB"><enum>(A)</enum><header>Corporation authority</header><text>If the Corporation determines, in a review pursuant to paragraph (1), that an approved issuer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such issuer.</text></subparagraph><subparagraph id="id6161A862E60B4CAF8549EA8099095A1F"><enum>(B)</enum><header>Rule of construction</header><text>The suspension or revocation of an approved issuer's approved status under this paragraph shall have no effect on the status of any covered security.</text></subparagraph></paragraph><paragraph id="idAC9A7D5C45E844C0A2586AB0DE7B56C7"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id3BCD187942804DDD8991A6DB0061F562"><enum>(A)</enum><text>publish in the Federal Register a list of any approved issuers who lost their approved status; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCCFBEB1D47BC4BFF924FA6AEC930AAD7"><enum>(B)</enum><text>maintain an updated list of such issuers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection commented="no" id="idDF659B2BA8784A958BEB53E598110113"><enum>(e)</enum><header>Appeals</header><paragraph commented="no" id="idCD1D88E32C41484CAD3C4DAC0ECF8CD0"><enum>(1)</enum><header>In general</header><subparagraph commented="no" id="id8A93166ECE2B41BD835E1450F66D03E6"><enum>(A)</enum><header>Appeals of denials of application</header><text>An issuer who submits an application under subsection (b)(1) to become an approved issuer may appeal a decision of the Corporation denying such application.</text></subparagraph><subparagraph commented="no" id="id1EA1CE4D308F47FE9D357A3051612166"><enum>(B)</enum><header>Appeals of denials of benefits or suspensions of participation</header><text>An approved issuer may appeal a decision of the Corporation suspending or revoking the approved status of such issuer.</text></subparagraph></paragraph><paragraph commented="no" id="idBC8903DEDC214EFDB7A779FE3433BBD1"><enum>(2)</enum><header>Filing of appeal</header><text>Any issuer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id24485854B73A414B84FB01B3D5B68253"><enum>(3)</enum><header>Final determination</header><text>The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id541509EBD8B8487D8BC4BD61A525C58E"><enum>(f)</enum><header>Limitation on market share</header><paragraph commented="no" display-inline="no-display-inline" id="id890D84B119674D538EADA6473CE2DC8F"><enum>(1)</enum><header>In general</header><text>The Corporation may not enter into any contract, covenant, or other agreement with an approved issuer, if such contract, covenant, or agreement would provide the issuer a share of the covered security issuer market in excess of 15 percent of the total market, as such market is measured by the total outstanding principal balance at origination of eligible mortgages collateralizing covered securities issued in the previous 12-month period.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id99326D268A5F4749BB7486BAB7BE71EC"><enum>(2)</enum><header>Exception</header><text>The limitation set forth under paragraph (1) shall not apply to—</text><subparagraph id="id4f5c1701250d4129b37cb6410008d633"><enum>(A)</enum><text>an approved issuer described under subsection (b)(2)(A)(ii);</text></subparagraph><subparagraph id="idcef3b69f007d41b6a12e5573a3d1316b"><enum>(B)</enum><text>the FMIC Mutual Securitization Company;</text></subparagraph><subparagraph id="idf33e837b0189491a9bfb04ce6fcf3920"><enum>(C)</enum><text>any approved issuer which securitizes only eligible mortgage loans originated by the issuer or an affiliate of the issuer; or</text></subparagraph><subparagraph id="id631d0a65f3544dd9a5c5c7a38ce04b78"><enum>(D)</enum><text>any approved issuer to which the Corporation grants a waiver pursuant to paragraph (3).</text></subparagraph></paragraph><paragraph id="id34C6F179EAE241DB8BE517A4C6AE914B"><enum>(3)</enum><header>Waiver</header><text>The Corporation may, during the 3-year period beginning on the FMIC certification date, grant a waiver from the limitation set forth under paragraph (1) to an approved issuer if the Corporation determines that the number of approved issuers is insufficient, such that imposition of the limitation would adversely affect the availability of mortgage credit.</text></paragraph></subsection><subsection id="id19BF6E4AF9CE4003BB2CE01455D6846F"><enum>(g)</enum><header>Limited authority To hold eligible mortgage loans</header><text>An approved issuer may, for a period not to exceed 6-months, hold—</text><paragraph id="idF961356DE8944E5A92498E93DC0771C5"><enum>(1)</enum><text>eligible mortgage loans on the balance sheet of such issuer; and</text></paragraph><paragraph id="id4735EB2B12644F7D861CC1AAFD02C86C"><enum>(2)</enum><text>the first loss position in a covered security for purposes of obtaining insurance under this title.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id2F9FD88B6C9742C5A843C4EEACBFEC5D"><enum>214.</enum><header>Approval of bond guarantors</header><subsection id="id0D4CAB3C7F814D7EA31718F0F82AE92D"><enum>(a)</enum><header>Standards for approval of bond guarantors</header><paragraph id="idC97F6BEC1B56402F8FE2CF52BE89B409"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of bond guarantors to guarantee the timely payment of principal and interest on securities collateralized by eligible mortgages and insured by the Corporation.</text></paragraph><paragraph id="id426A74FF69994019B2FCC065B998D364"><enum>(2)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include—</text><subparagraph id="id3EFDF77029674034AC9F4BDA280A3CA6"><enum>(A)</enum><text>the financial history and condition of the guarantor;</text></subparagraph><subparagraph id="id53D68CC24BE04586857FCA5A55B10FD3"><enum>(B)</enum><text>that the guarantor maintain a minimum capital level equal to not less than 10 percent of the unpaid principal balance of outstanding mortgage-backed securities for which the guarantor is providing insurance, net of any transactions, including derivative transactions, repurchase agreements, reverse repurchase agreements, securities lending transactions, or securities borrowing transactions, that in the determination of the Corporation are used by the guarantor to hedge or mitigate against credit risk, provided that any such hedging transaction does not diminish the total amount of loss absorption capital in the secondary mortgage market that stands in front of the insurance provided by the Corporation under this title;</text></subparagraph><subparagraph id="id2BAADFE0DFD342B6A033A798A785C756"><enum>(C)</enum><text>the general character and fitness of the management of the guarantor, including compliance history with Federal and State laws;</text></subparagraph><subparagraph id="id57F7C0621EF34C10A98130E1F0DE61F5"><enum>(D)</enum><text>the risk presented by such guarantor to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="id74E5A9D819764C709DA31B9782250C0A"><enum>(E)</enum><text>the adequacy of insurance and fidelity coverage of the guarantor;</text></subparagraph><subparagraph id="idE1200FB6A3C64FAD92BC2219BA64F313"><enum>(F)</enum><text>a requirement that the guarantor submit audited financial statements to the Director;</text></subparagraph><subparagraph id="id747C54EDAED64738AE261996CD99525E"><enum>(G)</enum><text>a requirement that the guarantor meet a minimum tangible common equity level, or other minimum capital threshold as the Corporation determines necessary; and</text></subparagraph><subparagraph id="idB9C0003D251A4F818A923AEAD741A02C"><enum>(H)</enum><text>any other standard the Corporation determines necessary or appropriate.</text></subparagraph></paragraph></subsection><subsection id="id07C847A6F2864CBD9B82945A1D7DB320"><enum>(b)</enum><header>Rule of construction</header><text>Any covered security issued by an approved issuer and insured by an approved bond guarantor shall be deemed to have satisfied the credit-risk sharing requirements under section 202(a)(1) with respect to the eligibility of that security to obtain insurance under this title.</text></subsection><subsection id="idCFF060EBE9E049D2BC86069951467374"><enum>(c)</enum><header>Application and approval</header><paragraph id="idC041C740703047FDAA24D7440E3C982C"><enum>(1)</enum><header>Application process</header><subparagraph id="id4EA770E3BB8F4992B0D3AC362924F5F2"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of bond guarantors under this section.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id97FBA5CB4FFB42C5BD9A30179F1B0767"><enum>(B)</enum><header display-inline="yes-display-inline">Application process by insured depository institutions</header><text display-inline="yes-display-inline">If an insured depository institution seeks to become an approved bond guarantor under this section, such institution may only submit its application via a separately capitalized affiliate or subsidiary.</text></subparagraph></paragraph><paragraph id="id1A65871CACB1412BA3B21CBF3B4ABAF8"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1) provided the bond guarantor meets the standards adopted under subsection (a).</text></paragraph><paragraph id="id29B8965398C240459F7C2B43979F4AED"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="idAAD1E002DCC34258A9EB27F8012DD998"><enum>(A)</enum><text>publish in the Federal Register a list of newly approved bond guarantors; and</text></subparagraph><subparagraph id="id1B0360D59D8C4E18938BFF68A3D101BC"><enum>(B)</enum><text>maintain an updated list of approved bond guarantors on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="idD3B88BEBA174426EB78F9A18101A6901"><enum>(d)</enum><header>Review, suspension, and revocation of approved status</header><paragraph id="id6AB3BADA2C2F4314BA7B9F5FF7651C21"><enum>(1)</enum><header>In general</header><text>The Corporation may review the status of any approved bond guarantor if the Corporation is notified of or becomes aware of any violation by the insurer of this Act or the rules promulgated pursuant to this Act.</text></paragraph><paragraph id="idF790D2A84AE74FD1B34E442F5C84CC92"><enum>(2)</enum><header>Suspension or Revocation</header><subparagraph id="id54A17DDC497040948DE85EBEF9032515"><enum>(A)</enum><header>Corporation authority</header><text>If the Corporation determines, in a review pursuant to paragraph (1), that an approved bond guarantor no longer meets the standards for approval, the Corporation shall revoke the approved status of such guarantor.</text></subparagraph><subparagraph id="idFCD70E98CF5B4DCC81669826A9EE7465"><enum>(B)</enum><header>rule of construction</header><text>The revocation of an approved bond guarantor's approved status under this paragraph shall have no effect on the status of any covered security.</text></subparagraph></paragraph><paragraph id="idCFC22B074B7947AF94337981E6C7599E"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="idE075CBF4A71F4109986FB4574A6E3AA4"><enum>(A)</enum><text>publish in the Federal Register a list of any approved bond guarantors who lost their approved status; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1CCB8F3225ED4C7CBEF5C28BDC3F7DD1"><enum>(B)</enum><text>maintain an updated list of such guarantors on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id9414A4382CE5409B92461B14E459E67E"><enum>(e)</enum><header>Appeals</header><paragraph commented="no" id="id4EF81081BC97430BA7D472DDF31225E3"><enum>(1)</enum><header>In general</header><subparagraph commented="no" id="idBE545E6764AF4274966C9A139AF9EA7A"><enum>(A)</enum><header>Appeals of denials of application</header><text>A bond guarantor who submits an application under subsection (c)(1) to become an approved bond guarantor may appeal a decision of the Corporation denying such application.</text></subparagraph><subparagraph commented="no" id="idEEF72EB4A8BE4616972654FB5A83D5B4"><enum>(B)</enum><header>Appeals of denials of benefits or suspensions of participation</header><text>An approved bond guarantor may appeal a decision of the Corporation suspending or revoking the approved status of such guarantor.</text></subparagraph></paragraph><paragraph commented="no" id="idF4C4E0DB57E54F628E51DCC7AB6EFCCE"><enum>(2)</enum><header>Filing of appeal</header><text>Any bond guarantor who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA7B8D34934A443F18AE9CBE1ECB1535A"><enum>(3)</enum><header>Final determination</header><text>The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5BCE4DD97B924ABEA183DAE9277CB5F7"><enum>(f)</enum><header>Limitations on approved bond guarantors</header><text>With respect to any eligible mortgage collateralizing a covered security insured under this Act, an approved bond guarantor may not provide insurance—</text><paragraph commented="no" display-inline="no-display-inline" id="id9D0417EDD7CC47C4A13D2EFC2B722597"><enum>(1)</enum><text>in satisfaction of the credit enhancement required under section 2(11)(C) or as an approved private mortgage insurer pursuant to section 211; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5AD0F6A76335478195A81563476E24D5"><enum>(2)</enum><text>as an approved bond guarantor under this section.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDA4E47916C9D4706BC13AFE61660B132"><enum>(g)</enum><header>Permission To carry out other activities</header><text>Nothing in this Act prohibits an approved bond guarantor from being or controlling an approved issuer, provided that each issuer and bond guarantor, independent of each other, meet the approval standards established by the Corporation under this title.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id02D02E7A43794B8687EA513AC76A605C"><enum>215.</enum><header>Authority to establish FMIC Mutual Securitization Company</header><subsection commented="no" display-inline="no-display-inline" id="idE74F66F67B3A4F83B111F0209848B6CE"><enum>(a)</enum><header>In general</header><text>The Corporation shall establish a mutual corporation to be known as the <quote>FMIC Mutual Securitization Company</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id85276C03AE404E54801C9F23E0391E17"><enum>(b)</enum><header>Purpose</header><text>The purpose of the FMIC Mutual Securitization Company is to—</text><paragraph commented="no" display-inline="no-display-inline" id="idC4ADC6EB9C3A4F949BB601F75298CD71"><enum>(1)</enum><text>develop, securitize, sell, and otherwise meet the issuing needs of credit unions, community and mid-size banks, and non-depository mortgage originators with respect to covered securities; and</text></paragraph><paragraph id="idb085699add864d96aa02dd4862b0c4f0"><enum>(2)</enum><text>purchase from its member participants for cash, on a single loan basis, eligible mortgage loans to securitize in a covered security.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id934AF41B180E405C8CDEADABC4CD8821"><enum>(c)</enum><header>Sale of necessary technology</header><text>Upon the FMIC certification date, the enterprises shall sell to the FMIC Mutual Securitization Company any function, activity, infrastructure, property, including intellectual property, platform, or any other object or service of an enterprise that the Corporation determines necessary for the FMIC Mutual Securitization Company to carry out its activities and operations.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id19EA85A461FD4A19A9278FCA41641003"><enum>(d)</enum><header>Designation as an approved issuer</header><text>The FMIC Mutual Securitization Company shall be an approved issuer for purposes of section 213.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idC06D78C8A8094E40A7A98D3AAE7DE3BC"><enum>(e)</enum><header>Eligibility</header><text>Eligibility to participate as a member in the FMIC Mutual Securitization Company shall be limited to—</text><paragraph commented="no" display-inline="no-display-inline" id="id80121A088B6A4329AAA7C6BA22D3C67D"><enum>(1)</enum><text>insured depository institutions having less than $15,000,000,000 in total consolidated assets at the time of the institution's initial participation in the Company; or</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAAEE0ADEBC9D49D3A4F99BFA6B5C985F"><enum>(2)</enum><text>any non-depository mortgage originator having a minimum net worth of $2,500,000.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id81EDA3D47C064BFD92E3991B10543E73"><enum>(f)</enum><header>Governance</header><paragraph commented="no" display-inline="no-display-inline" id="id7B98765A073E4F1389A12620A19AE874"><enum>(1)</enum><header>Recognition of important role of smaller institutions</header><text>The Corporation shall take all necessary steps to ensure that the governance provisions of the FMIC Mutual Securitization Company reflect the important role in the mortgage market played by the small and mid-sized member participants of the FMIC Mutual Securitization Company.</text></paragraph><paragraph id="id2f580e0009554d51996d56a5f5ef7fd8"><enum>(2)</enum><header>Establishment of position of Director</header><text>There is established the position of the Director of the FMIC Mutual Securitization Company who shall be the head of the Company.</text></paragraph><paragraph id="id132106e3704d4efc8783ea180ff12529"><enum>(3)</enum><header>Board of Directors</header><subparagraph id="idC100140653A3446FAF3A6C166C6A78E9"><enum>(A)</enum><header>In general</header><text>The management of the FMIC Mutual Securitization Company shall be vested in a Board of Directors (hereafter referred to as the <quote>Mutual Board</quote>), which shall include representatives of member participants of the Company, including representatives of—</text><clause id="idEBB7E99A22B149D1A63DCA02BB2AA887"><enum>(i)</enum><text>mortgage bankers;</text></clause><clause id="idA1B86AD6A72D45F7874D08F50B4F43C3"><enum>(ii)</enum><text>community banks; and</text></clause><clause id="idCCD2077D86134AB082D83D089D6D174F"><enum>(iii)</enum><text>credit unions.</text></clause></subparagraph><subparagraph id="id7E3DE36C7F61420DAEF7119B76BD6B25"><enum>(B)</enum><header>Initial appointment</header><text>The Corporation shall make initial appointments of the members of the Mutual Board. Each such initial appointment shall be for a term 1 year.</text></subparagraph><subparagraph id="id5089C8B0147B4F05BEB9FD9846D8A5E0"><enum>(C)</enum><header>Appointments</header><text>Following the initial 1-year appointment of the members of the Mutual Board, member participants in the FMIC Mutual Securitization Company shall elect the members of the Mutual Board from within the membership of the Company.</text></subparagraph><subparagraph id="id18D118B945074110A095F56C2A7DD6DA"><enum>(D)</enum><header>Administration</header><text>The Mutual Board shall administer the affairs of the FMIC Mutual Securitization Company fairly and impartially and without discrimination.</text></subparagraph></paragraph><paragraph id="idb853b71088fc47d58193a6587657580b"><enum>(4)</enum><header>No preferences for size</header><text>Member participants of the FMIC Mutual Securitization Company shall have equal voting rights on any matters before the Company, regardless of the size of the individual member participant.</text></paragraph></subsection><subsection id="id9618c345f8944b20a3a14801fa885262"><enum>(g)</enum><header>Approval of member participants</header><paragraph id="id897B8042C5794A0F823DCBD80FB75F22"><enum>(1)</enum><header>In general</header><text>The Mutual Board shall develop standards and procedures to approve the application of member participants in the FMIC Mutual Securitization Company.</text></paragraph><paragraph id="id0DB6E27FB4924802A27FE188607837DC"><enum>(2)</enum><header>Content of standards</header><text>The standards required under paragraph (1) shall include standards relating to the safety and soundness of prospective member participants, including standards regarding the underwriting practices of such prospective members.</text></paragraph><paragraph id="idD6A1E214F6D141478B34B437094CEA4B"><enum>(3)</enum><header>Coordination with other regulators</header><subparagraph id="idEC4616772F734003AAAD17697D71E21C"><enum>(A)</enum><header>Consultation</header><text>In approving any prospective member to become a member participant in the FMIC Mutual Securitization Company, the Mutual Board may consult and share information with the primary prudential regulator of the prospective member.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE9ACDDCADB9F410884AFA299A755A234"><enum>(B)</enum><header>Privilege preserved</header><text>Information shared pursuant to subparagraph (A) shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that a prospective member may claim with respect to such information under Federal or State law as to any person or entity other than the Mutual Board or its primary prudential regulator.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD00FB8F4DD5448C0B57C85EAEBF529EE"><enum>(C)</enum><header>Rule of construction</header><text>No provision of this subsection may be construed as implying or establishing that—</text><clause id="id32A415030A9E4C02B86ED7CEAC524DD8"><enum>(i)</enum><text>any prospective member waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply; or</text></clause><clause commented="no" display-inline="no-display-inline" id="id5891E1FB87D5410AAA422DAC3B76EAA3"><enum>(ii)</enum><text>any prospective would waive any privilege applicable to any information by submitting the information directly to its primary prudential regulator, but for this subsection.</text></clause></subparagraph></paragraph></subsection><subsection id="id198ba30888b547e4ab14961dd065876d"><enum>(h)</enum><header>Funding authority</header><paragraph id="id7FF3841C32E849F38BE837AB5B5BB2E2"><enum>(1)</enum><header>Authority to establish membership fees</header><text>The Mutual Board shall have the authority to charge and collect fees, and may in its discretion increase or decrease such fee, on its member participants for membership in the FMIC Mutual Securitization Company, including to cover the costs of—</text><subparagraph id="idA367564A6EE94A719C52DE67A9D60C5F"><enum>(A)</enum><text>the initial capitalization of the Company;</text></subparagraph><subparagraph id="id4C7629987BEF4447AC9BC81DDF315157"><enum>(B)</enum><text>the purchase of any function, activity, infrastructure, property, including intellectual property, platform, or any other object or service from an enterprise pursuant to subsection (c); and</text></subparagraph><subparagraph id="id8E72C80B442942BD8B50E21F696DA044"><enum>(C)</enum><text>the continued operation of the Company.</text></subparagraph></paragraph><paragraph id="idB6459ADB42F54C24B3235571B0B49B45"><enum>(2)</enum><header>Limitation</header><text>The fees authorized under paragraph (1)—</text><subparagraph id="idCF9F64A0422E4946AEF20BE1120B7077"><enum>(A)</enum><text>shall be equitably assessed; and</text></subparagraph><subparagraph id="id8F23220562934B4D8FD19FFD5EAB8F8A"><enum>(B)</enum><text>may be based on the volume of eligible mortgages that the member participant sells to the FMIC Mutual Securitization Company.</text></subparagraph></paragraph></subsection><subsection id="id01edd593b44746e2b4e8dcb9da7e6717"><enum>(i)</enum><header>Coordination of servicer approval</header><text>The Mutual Board may coordinate with the Corporation to facilitate the application process for its member participants to become approved servicers of the Corporation pursuant to section 212.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="idDF0D1C03B6024DA18DFEF90992ED68E0"><enum>216.</enum><header>Additional authority relating to oversight of market participants</header><text display-inline="no-display-inline">In carrying out its authorities under this subtitle, the Corporation may, in its discretion, develop, publish, and adopt such other additional standards or requirements as the Corporation determines necessary to ensure—</text><paragraph commented="no" display-inline="no-display-inline" id="id16C8628D06BC47FDBF31994E3A2D826C"><enum>(1)</enum><text display-inline="yes-display-inline">competition among approved private mortgage insurers, servicers, issuers, and bond guarantors and other market participants in the secondary mortgage market;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5C57D50A769C4AC6B13782AB63E5204A"><enum>(2)</enum><text>competitive pricing among approved private mortgage insurers, servicers, issuers, and bond guarantors and other market participants in the secondary mortgage market; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id74CD7E98E8074343BB120F5FFB870C94"><enum>(3)</enum><text>liquidity, transparency, and access to mortgage credit in the secondary mortgage market.</text></paragraph></section><section commented="no" display-inline="no-display-inline" id="id0ED580AE1FEE4EE691F02F04F6170F9D"><enum>217.</enum><header>Civil money penalties</header><subsection commented="no" display-inline="no-display-inline" id="idA58F128629264D4BA141FC0C119078CC"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">In addition to any suspension or revocation of the approved status of an approved private mortgage insurer, servicer, issuer, or bond guarantor under this subtitle, the Corporation may, in its discretion, impose a civil money penalty on any such approved private mortgage insurer, servicer, issuer, or bond guarantor that has failed to comply with or otherwise violates—</text><paragraph commented="no" display-inline="no-display-inline" id="id8EB2962A369248B2941EE10270CD8F6D"><enum>(1)</enum><text display-inline="yes-display-inline">any standard adopted by the Corporation pursuant to this subtitle; or</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id63E7D5559CEC4372AF0FE5E8F12A2BA8"><enum>(2)</enum><text display-inline="yes-display-inline">any other requirement or provision of this Act, or any order, condition, rule, or regulation issued pursuant to this Act, applicable to such private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA6C2A9340AB948F29C3F15804566E0EB"><enum>(b)</enum><header>Procedures</header><paragraph commented="no" display-inline="no-display-inline" id="idEB963BB5313845C48A71887CAD160494"><enum>(1)</enum><header>Establishment</header><text>The Corporation shall establish standards and procedures governing the imposition of civil money penalties under this section. Such standards and procedures—</text><subparagraph commented="no" display-inline="no-display-inline" id="id74875AC0FDB4483695E34CDBEA19CE18"><enum>(A)</enum><text>shall provide for the Corporation to notify the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, in writing of the determination of the Corporation to impose the penalty, which shall be made on the record;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id917CB31868434AD089BBF3A740DC4DB3"><enum>(B)</enum><text>shall provide for the imposition of a penalty only after the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, has been given an opportunity for a hearing on the record; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3595524EF404C21AAEFBDFD2CCC8464"><enum>(C)</enum><text>may provide for review by the Corporation of any determination or order, or interlocutory ruling, arising from a hearing.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC1A0296C801451598FE9ECFB7350636"><enum>(2)</enum><header>Factors determining amount of penalty</header><text>In determining the amount of a penalty under this section, the Corporation shall give consideration to factors including—</text><subparagraph commented="no" display-inline="no-display-inline" id="id4A73E955298F477A9E4F5117630F7224"><enum>(A)</enum><text>the gravity of the offense;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6FD5E27BA32142A1927E1D9F2A400FD0"><enum>(B)</enum><text>any history of prior offenses;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF056FDDD1944A62AB24E8EEED7E52FA"><enum>(C)</enum><text>ability to pay the penalty;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7F927034E26D4ACF978955F7EA8156FA"><enum>(D)</enum><text>injury to the public;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id18A6D16A99034008BED27B1D45723D86"><enum>(E)</enum><text>benefits received;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDF8530192FCA4C199F588821B3B7F7C5"><enum>(F)</enum><text>deterrence of future violations; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD36AB1899CF1451CB786C28547CCB1D3"><enum>(G)</enum><text>such other factors as the Corporation may determine, by regulation, to be appropriate.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2073FFC569D846A9A3A311604EFAF3BE"><enum>(c)</enum><header>Action To collect penalty</header><text>If the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, fails to comply with an order by the Corporation imposing a civil money penalty under this section, the Corporation may bring an action in the United States District Court for the District of Columbia to obtain a monetary judgment against the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, and such other relief as may be available. The monetary judgment may, in the court's discretion, include the attorneys' fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the order imposing the penalty shall not be subject to review.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idB05D03C793FC48EAA30DE10316E87ED7"><enum>(d)</enum><header>Settlements</header><text>The Corporation may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.</text></subsection><subsection id="ID9C0EFE6E2D2B46549C05C336692BB4DF"><enum>(e)</enum><header>Deposit of Penalties</header><text>The Corporation shall use any civil money penalties collected under this section to help fund the Mortgage Insurance Fund established under section 203.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="idA5108DAB78D844ED919124DB46BF52AE"><enum>218.</enum><header>Protection of privilege and other matters relating to disclosures by market participants</header><subsection commented="no" display-inline="no-display-inline" id="idB1198AC7E2F64B5F87D9C12A82F759F4"><enum>(a)</enum><header>Information sharing and maintenance of privilege</header><text display-inline="yes-display-inline">The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—</text><paragraph id="ID03ddf018769b4dd7a3d57f867dd02a71"><enum>(1)</enum><text>in section 11(t)(2)(A) (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(t)(2)(A)</external-xref>), by inserting after clause (v) the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idAA802B221D5E4F7CBEDF8A4380C7797F" reported-display-style="strikethrough" style="OLC"><clause id="id42DC64540691472299C40754A4F9B330"><enum>(vii)</enum><text>The Federal Mortgage Insurance Corporation.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="IDa4d9e35c4b044c4da83c23c870aa6929"><enum>(2)</enum><text>in section 18(x) (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(x)</external-xref>)—</text><subparagraph id="id8FE3DA708043462E9C12B7AA324F3306"><enum>(A)</enum><text>by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>any Federal banking agency</quote> each place that term appears; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id05DCB69CADA64A4BA5A81FBC6E460DEB"><enum>(B)</enum><text>by striking <quote>such agency</quote> each place that term appears and inserting <quote>Corporation, agency</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id00F0396B333446B39228E3A0905186EC"><enum>(b)</enum><header>Permissible consultation with Federal banking agencies</header><paragraph commented="no" display-inline="no-display-inline" id="id57F2BA9F5D284F9C92A2F10462274A03"><enum>(1)</enum><header>In general</header><text>Pursuant to its authority under section 103(c), to facilitate the consultive process, the Corporation may share information with the Federal banking agencies, or any individual Federal banking agency, or any State bank supervisor, or foreign banking authority, on a one-time, regular, or periodic basis as determined by the Corporation regarding the capital, asset and liabilities, financial condition, risk management practices or any other practice of any approved private mortgage insurer, servicer, issuer, or bond guarantor.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEDD4FD668FD540CAA289AB82EE528FF1"><enum>(2)</enum><header>Privilege preserved</header><text>Information shared by the Corporation pursuant to paragraph (1) shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that any approved private mortgage insurer, servicer, issuer, or bond guarantor or any other person may claim with respect to such information under Federal or State law as to any person or entity other than such agencies, agency, supervisor, or authority.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBFD05EE5885844EDA8BE2D6F4BA48792"><enum>(3)</enum><header>Rule of construction</header><text>No provision of this subsection may be construed as implying or establishing that—</text><subparagraph id="idbbddb62155194230aef1df4d03fc0da7"><enum>(A)</enum><text>any person waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply; or</text></subparagraph><subparagraph id="idf35aec673269468784f2f051a1d46bf5"><enum>(B)</enum><text>any person would waive any privilege applicable to any information by submitting the information directly to the Federal banking agencies, or any individual Federal banking agency, or any State bank supervisor, or foreign banking authority, but for this subsection.</text></subparagraph></paragraph></subsection></section></subtitle><subtitle id="idBE4CC68597B1408D866BC0DC7029FF70"><enum>C</enum><header>Transparency in market operations</header><section id="id691438B233FC4FBE868404AC085BDAF6"><enum>221.</enum><header>Review of loan documents; disclosures</header><subsection id="id7523153A42434E25A6044E2412AAE363"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Corporation shall, by rule—</text><paragraph id="id31FD11AFA524470CB43108DA469CA81A"><enum>(1)</enum><text display-inline="yes-display-inline">require that approved issuers—</text><subparagraph id="idCBDC48B5AEA3448B84DFFCC1FDFD1797"><enum>(A)</enum><text display-inline="yes-display-inline">grant access to private market investors seeking to take the first loss position in a covered security to all—</text><clause id="idD8C8755663124BE48AA40E0F56EF60BE"><enum>(i)</enum><text display-inline="yes-display-inline">documents relating to eligible mortgage loans collateralizing that covered security; and</text></clause><clause id="id708B93344E28435F89653C9001C5720F"><enum>(ii)</enum><text display-inline="yes-display-inline">servicing reports of the approved servicer relating to such mortgages; and</text></clause></subparagraph><subparagraph id="id6690661F78744CD0976D79F02BE87811"><enum>(B)</enum><text>disclose any other material information that a reasonable investor would want to know, and make no material omission of such information, relating to eligible mortgage loans collateralizing a covered security; and</text></subparagraph></paragraph><paragraph id="id2E39904BA59840EBBD3BB8F5AFF13857"><enum>(2)</enum><text>establish the timing, frequency, and manner in which such access and disclosures are made.</text></paragraph></subsection><subsection id="id2A38803E864D44DF9D99B22B68E446A4"><enum>(b)</enum><header>Privacy protections</header><text>In prescribing the rules required under this section, the Corporation shall take into consideration issues of consumer privacy and all statutes, rules, and regulations related to privacy of consumer credit information and personally identifiable information. Such rules shall expressly prohibit the identification of specific borrowers.</text></subsection></section><section id="idB3203FACDBDE4F94A8F14909D119AEA1"><enum>222.</enum><header>Investor immunity</header><text display-inline="no-display-inline">Any private market investor that has taken the first loss position in a covered security or that has otherwise invested in any covered security insured under this Act shall have immunity and protection from civil liability under Federal and State law, and no cause of action may be brought under Federal or State law against such investor, with respect to whether or not eligible mortgages that collateralize a covered security insured under this Act have complied with the requirements of this Act, including, but not limited to, with respect to any underwriting requirements applicable to such mortgage, any representations or warranties made by an approved issuer or an approved bond guarantor with respect to such mortgages, or whether or not the terms of any uniform securitization agreement have been met.</text></section><section id="idCB0E90A47D8240AE8049C8FDA24AA8B8"><enum>223.</enum><header>Uniform securitization agreements</header><subsection id="id50e540d5926740d8914bb39699975a0f"><enum>(a)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standard uniform securitization agreements for covered securities which are insured under this Act.</text></subsection><subsection id="id277c459ac167462caa07729150f9da4b"><enum>(b)</enum><header>Required content</header><text>The standard uniform securitization agreements required to be developed under subsection (a) shall include terms relating to—</text><paragraph id="id8e1003d3b5954f6abb16274f8321096d"><enum>(1)</enum><text>pooling and servicing, including the development of uniform standards and practices—</text><subparagraph id="idC5390EF01436409EBDDF3B6C9D7472F3"><enum>(A)</enum><text>regarding remittance schedules and payment delays; and</text></subparagraph><subparagraph id="id8D821E9AA5084784B539E147A566CA03"><enum>(B)</enum><text>permitting the transfer of servicing rights, if such transfer is determined to be in the best financial interest of the investor, as such interest is calculated on a net present value basis;</text></subparagraph></paragraph><paragraph id="id1b58fcd0984c401d84c8b22c97156a19"><enum>(2)</enum><text>representations and warranties, including representations and warranties as to compliance or conformity with the requirements of this Act;</text></paragraph><paragraph id="id15d7efb4e4204086ab1468db93788356"><enum>(3)</enum><text>indemnification and remedies, including for the restitution or indemnification of the Corporation with respect to early term delinquencies of eligible mortgages collateralizing a covered security;</text></paragraph><paragraph id="id3b733f988f4346af83d3d222406e21f4"><enum>(4)</enum><text>the qualification, responsibilities, and duties of trustees; and</text></paragraph><paragraph id="idBAED5EDDA5DE4AF0BD97EF659A8B7FAF"><enum>(5)</enum><text>any other terms or standards the Corporation determines necessary or appropriate.</text></paragraph></subsection><subsection id="id8E4E6E8CEB7844B2B4F55486714E2FC0"><enum>(c)</enum><header>Defining representation and warranty violations</header><text>In developing the uniform securitization agreements required under subsection (a), the Corporation shall also develop, adopt, and publish clear and uniform standards that define and illustrate what actions, or omissions to act, comprise a violation of the representations and warranties clauses that are made a part of such agreements.</text></subsection><subsection id="idF09A52B8A50043A4B87E2C098B2A3204"><enum>(d)</enum><header>Consultation</header><text>The Corporation shall work with industry groups, including servicers, originators, issuers, and mortgage investors to develop the uniform securitization agreements required under subsection (a).</text></subsection></section><section id="id16B10FA1849842749F4473E749B5F8BD"><enum>224.</enum><header>Uniform mortgage database</header><subsection id="idDBF1C7DCB83240BBAA04FFBF530579F6"><enum>(a)</enum><header>Uniform Mortgage Database</header><text>The Corporation shall establish, operate, and maintain a database for the collection, public use, and dissemination of uniform loan level information on eligible mortgages relating to—</text><paragraph id="id21C6B3E8797145AA82116B3BF00646ED"><enum>(1)</enum><text>loan characteristics;</text></paragraph><paragraph id="idA819AB14341A40009BEA44A3DC31034B"><enum>(2)</enum><text>borrower information;</text></paragraph><paragraph id="id5209EBEB91874EAE90E6E2E6548917A1"><enum>(3)</enum><text>the property securing the eligible mortgages;</text></paragraph><paragraph id="idD51F53C0B970423AB668D42F84F16545"><enum>(4)</enum><text>loan data required at the time of application for insurance from the Corporation under this title;</text></paragraph><paragraph id="idD83C0FF8167849E59699DDA86C38325D"><enum>(5)</enum><text>the quality and consistency of appraisal and collateral data on eligible mortgages;</text></paragraph><paragraph id="id8DB67EF0059B4F5FB1E24C52B5EC9155"><enum>(6)</enum><text>industry-wide servicing data standards; and</text></paragraph><paragraph id="idD6C9A759B4344F63BE03D8D16DC53991"><enum>(7)</enum><text>such other data, datasets, information, facts, or measurements as the Corporation determines appropriate to improve and enhance loan quality and operational efficiencies within the secondary mortgage market.</text></paragraph></subsection><subsection id="idD81700C0A1914AD6AA6094B1331A2178"><enum>(b)</enum><header>Considerations</header><text>In establishing the database required under subsection (a), the Corporation shall take into consideration, build upon, and adopt to the extent the Corporation determines appropriate, the existing data standards set forth under the Uniform Mortgage Data Program initiative established by the Federal Housing Finance Agency.</text></subsection><subsection id="id81F39A6CCD50427AA92F512682EEA024"><enum>(c)</enum><header>Regulations</header><text>The Corporation shall, by regulation—</text><paragraph id="idB0EEB359DFE649D787706C58259E97AC"><enum>(1)</enum><text>establish the manner and form by which any loan level information collected under subsection (a) may be accessed by the public, including whether or not to establish a fee for such access;</text></paragraph><paragraph id="idC3B4B1C61E7A49E7A449BD5924B4C5C0"><enum>(2)</enum><text>require that such loan level information be made available to the public in a uniform manner, in a form designed for ease and speed of access, ease and speed of downloading, and ease and speed of use; and</text></paragraph><paragraph id="id4DFAA8CCD13C4D9CBB9DB35CCDC49014"><enum>(3)</enum><text>ensure the protection of any personally identifiable information contained in any information, or mix of information, collected and made available for public access.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id024F8879CD9443E4A49159DF576B4EAC"><enum>(d)</enum><header>Monthly update</header><text>The database required under subsection (a) shall be updated not less frequently than once a month.</text></subsection></section><section id="idEB96C04B074D462D9962CB7A894BA8F8"><enum>225.</enum><header>Electronic registration of eligible mortgages</header><subsection id="idADF2E415EE7E4ED8A3E24BF1CD9DB508"><enum>(a)</enum><header>Establishment of electronic registration system</header><text display-inline="yes-display-inline">The Corporation shall establish, operate, and maintain an electronic registry system for eligible mortgages that collateralize a covered security insured under this Act in order to automate, centralize, standardize, and improve the process of tracking changes in servicing rights and beneficial ownership interests in such eligible mortgages.</text></subsection><subsection id="id061E05E4DBBF4AAEAD4DA337E455A0FC"><enum>(b)</enum><header>Considerations</header><text>In establishing the electronic registry system required under subsection (a), the Corporation shall take into consideration, build upon, and adopt to the extent the Corporation determines appropriate, any existing efforts of the Federal Housing Finance Agency or expertise among the private sector to develop a sound, efficient system for document custody and electronic registration of mortgages, notes, titles, and liens.</text></subsection></section></subtitle><subtitle id="idC7DB065A527E4CCD8BE4793E9C64150A"><enum>D</enum><header>FMIC Structure</header><section id="id7337139F233047C28ABEDC40E74D9389"><enum>231.</enum><header>Office of Underwriting</header><subsection id="idC086D02AF25C45D69D06AD3276730963"><enum>(a)</enum><header>Establishment</header><text>There is established within the Federal Mortgage Insurance Corporation an Office of Underwriting which shall be headed by the Deputy Director of Underwriting, who shall be appointed by the Board of Directors.</text></subsection><subsection id="id15DF82588BD448DC9670E5ECF6592B62"><enum>(b)</enum><header>Responsibilities</header><text>The Office of Underwriting shall ensure, through oversight, analysis, and examination, that eligible mortgages that collateralize a covered security insured under this Act comply with the requirements of this Act, including with respect to—</text><paragraph id="id24E6B76C76EC4708BC4E498C1194FFCB"><enum>(1)</enum><text>the submission of complete and accurate loan data on eligible mortgages;</text></paragraph><paragraph id="id38417596EF0D4F7584F51DED02A24FE8"><enum>(2)</enum><text>the identification of ineligible mortgage loans;</text></paragraph><paragraph id="idF741A0C8F3FE45229F251340CD60A5C6"><enum>(3)</enum><text>assisting lenders with originating high-quality, lower-risk eligible mortgages; and</text></paragraph><paragraph id="id4A6F37F858EF4E2296017327D580ED2A"><enum>(4)</enum><text>any other activity that the Director determines appropriate.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id08E317DFBFEF471BBBD486846CF40144"><enum>232.</enum><header>Office of Securitization</header><subsection id="id472A78AD5A2249D79B70B1D92C4A5DD8"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established within the Federal Mortgage Insurance Corporation an Office of Securitization which shall be headed by the Deputy Director of Securitization, who shall be appointed by the Board of Directors.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id8A0DD0702DAF47FBB32623F5B6BACCEC"><enum>(b)</enum><header>Responsibilities</header><paragraph commented="no" display-inline="no-display-inline" id="id44F67F4539384D6F8BBC9C6B60B3CEF6"><enum>(1)</enum><header>In general</header><text>The Office of Securitization shall—</text><subparagraph commented="no" display-inline="no-display-inline" id="idDEE021300422405DBFBA400E3730857E"><enum>(A)</enum><text>oversee and supervise the common securitization platform developed by the business entity announced by the Federal Housing Finance Agency and established by the enterprises, including by requiring that the platform have system capabilities to permit the issuance of multi-lender covered securities;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id73E77F8978454B3ABB5353106C5537AA"><enum>(B)</enum><text>ensure that credit unions, community and mid-size banks, and small non-depository lenders have equitable access to any such platform, including through the development and facilitation of options for multi-lender pools of eligible mortgages to be securitized and issued as covered securities through such platform; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id18FC80F139C344828AFBAFD96D189770"><enum>(C)</enum><text>coordinate and consult with the Federal Home Loan Bank System to establish a securitization platform that addresses the needs of its members.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBBF7B893CE52412E83198347FFB4D446"><enum>(2)</enum><header>Rules for use of common securitization platform</header><subparagraph commented="no" display-inline="no-display-inline" id="id098B0063426040A1B0F647D43DE617C0"><enum>(A)</enum><header>In general</header><text>The Corporation, acting through the Office of Securitization, may promulgate rules—</text><clause commented="no" display-inline="no-display-inline" id="idE4CB93467A164445B2F2DA2EFDAC6446"><enum>(i)</enum><text>regarding the use of the common securitization platform described under paragraph (1)(A); and</text></clause><clause commented="no" display-inline="no-display-inline" id="id8D6E959484754AA3914D60E21AA1F299"><enum>(ii)</enum><text>to permit securities other than covered securities to be issued through such platform for reasonable compensation.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6406CCCE14B34974BA38BE81FF34C104"><enum>(B)</enum><header>Content of rules</header><text>Any rule that may be promulgated under subparagraph (A) may include a requirement that any security to be issued through the common securitization platform be subject to a uniform securitization agreement developed under section 223.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id65E1397EB6744C12B9DA487F6C03A898"><enum>(c)</enum><header>Establishment of database To provide notice to different classes of lien holders</header><text>The Office of Securitization shall establish, operate, and maintain a database that—</text><paragraph commented="no" display-inline="no-display-inline" id="id4E77F3D46A884D55AF26F1F67028BA04"><enum>(1)</enum><text>can be accessed by any holder of a lien on an eligible mortgage;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCA7E887563BB41A1B358FC8B1D6DB64E"><enum>(2)</enum><text>identifies and tracks if a junior lien or any other subordinate lien has been issued on the property securing an eligible mortgage;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD5FEEDF437C94AF0B29BB4B94526F601"><enum>(3)</enum><text>notifies, to the extent feasible, any senior or first lien holder of the existence of such junior or subordinate lien; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id50628A4A5B884AEDB9B78DDBB4ED1FF3"><enum>(4)</enum><text>informs—</text><subparagraph commented="no" display-inline="no-display-inline" id="id9CDFE72C74594940B075CEAC4707BB4D"><enum>(A)</enum><text>the senior or first lien holder of the monthly performance of the junior or subordinate lien; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id41476A6213164A7A906F9A7A94B50825"><enum>(B)</enum><text>the junior or subordinate lien holder of the monthly performance of the senior or first lien.</text></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id9EA2D9B6317945C4AA6BBD2F811AD4B2"><enum>233.</enum><header>Office of Federal Home Loan Bank Supervision</header><subsection id="id454fd4f23b7e4e759e92b15b69119ae9"><enum>(a)</enum><header>Establishment</header><text>There is established within the Federal Mortgage Insurance Corporation an Office of Federal Home Loan Bank Supervision which shall be headed by the Deputy Director of Federal Home Loan Bank Supervision, who shall be appointed by the Board of Directors.</text></subsection><subsection id="id1036076bc6d345c29870c3fa3635e89b"><enum>(b)</enum><header>Responsibilities</header><text>The Office of Federal Home Loan Bank Supervision shall—</text><paragraph id="id83a822312778484db21365d17c0d78ae"><enum>(1)</enum><text>oversee, coordinate, and supervise the Federal Home Loan Banks and the Federal Home Loan Bank System, including the transition of all activities transferred to the Corporation pursuant to section 301; and</text></paragraph><paragraph id="idfb77dd1999a343078b24ee78c2374ff0"><enum>(2)</enum><text>supervise any authorized subsidiary of one or more Federal Home Loan Banks that is approved as an approved issuer pursuant to section 213(b)(2)(A)(ii), including with respect to the initial capitalization of any such subsidiary.</text></paragraph></subsection></section></subtitle><enum>III</enum><header>Transfer of powers, personnel, and property to FMIC from FHFA</header><section id="id28AD4DFC931D479BAF422A59C7BD7291"><enum>301.</enum><header>Powers and duties transferred</header><subsection id="id3184FEFACD714252BC00A7F3D1D711FF"><enum>(a)</enum><header>Federal Home Loan Bank functions transferred</header><paragraph id="idDD880EF4A0E14DFAB7A6D5CE49F0504D"><enum>(1)</enum><header>Transfer of functions</header><text display-inline="yes-display-inline">There are transferred to the Corporation all functions of the Federal Housing Finance Agency and the Director of the Federal Housing Finance Agency relating to—</text><subparagraph id="idCF1400675905489686639D9C36AC42EE"><enum>(A)</enum><text display-inline="yes-display-inline">the supervision of the Federal Home Loan Banks and the Federal Home Loan Bank System; and</text></subparagraph><subparagraph id="id1E32895269AA48DC99BF57800C100FF5"><enum>(B)</enum><text display-inline="yes-display-inline">all rulemaking authority of the Federal Housing Finance Agency and the Director of the Federal Housing Finance Agency relating to the Federal Home Loan Banks and the Federal Home Loan Bank System.</text></subparagraph></paragraph><paragraph id="idBD3140FDB7244134AEB27C552CE4A147"><enum>(2)</enum><header>Powers, authorities, rights, and duties</header><text>The Corporation shall succeed to all powers, authorities, rights, and duties that were vested in the Federal Housing Finance Agency and the Director of the Federal Housing Finance Agency, including all conservatorship or receivership authorities, on the day before the transfer date in connection with the functions and authorities transferred under paragraph (1).</text></paragraph><paragraph id="id5F02FFB003A8459C802819A71B284390"><enum>(3)</enum><header>Effective date</header><text>The transfer of functions under this paragraph shall take effect on the transfer date.</text></paragraph></subsection><subsection id="idDDE0E0DBFA0444C3AD6BCAF9E10D1985"><enum>(b)</enum><header>Continuation and coordination of certain actions</header><paragraph id="id5c4545df02f347d786e41fdbed313a89"><enum>(1)</enum><header>In general</header><text>All regulations, orders, determinations, and resolutions described under paragraph (2) shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Corporation until modified, terminated, set aside, or superseded in accordance with applicable law by the Corporation, any court of competent jurisdiction, or operation of law.</text></paragraph><paragraph id="id652EFB1D8F0D4287B954DFD565EE574C"><enum>(2)</enum><header>Applicability</header><text>A regulation, order, determination, or resolution is described under this subsection if it—</text><subparagraph id="idED16AEE161D74A8BB5E1BEA02B63F241"><enum>(A)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text><clause id="idE4EE5E0298414176A16739FEE96F97B4"><enum>(i)</enum><text>the Federal Housing Finance Agency; or</text></clause><clause id="id7E6D3FD2DD1A47708A1BC2A9A5E85C03"><enum>(ii)</enum><text>a court of competent jurisdiction, and relates to functions transferred by this Act;</text></clause></subparagraph><subparagraph id="id2927276FBE814CFE982BBDF4D8D96531"><enum>(B)</enum><text>relates to the performance of functions that are transferred by this section; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEE60820A451A44C19C70E85C9B8CE4A3"><enum>(C)</enum><text>is in effect on the transfer date.</text></subparagraph></paragraph></subsection><subsection id="id796F654A8B81456F8719067A1D165C88"><enum>(c)</enum><header>Disposition of affairs</header><text>During the period preceding the transfer date, the Director of the Federal Housing Finance Agency, for the purpose of winding up the affairs of the Federal Housing Finance Agency in connection with the performance of functions that are transferred by this section—</text><paragraph id="idE10D5EA5F69145D78D3FE37686F8DBEB"><enum>(1)</enum><text>shall manage the employees of such Agency and provide for the payment of the compensation and benefits of any such employees which accrue before the transfer date; and</text></paragraph><paragraph id="id3AA42999FA6D464A9BDB4087C784D590"><enum>(2)</enum><text>may take any other action necessary for the purpose of winding up the affairs of the Office.</text></paragraph></subsection><subsection id="idB78EA4FA0C8F4AD6994196AFE5CDCA13"><enum>(d)</enum><header>Use of property and services</header><paragraph id="id57B50BF6861D41238B499297771BDDF8"><enum>(1)</enum><header>Property</header><text>The Corporation may use the property and services of the Federal Housing Finance Agency to perform functions which have been transferred to the Corporation until such time as the Agency is abolished under section 303 to facilitate the orderly transfer of functions transferred under this section, any other provision of this Act, or any amendment made by this Act to any other provision of law.</text></paragraph><paragraph id="idA9625376489B499382CA8E505FE046DC"><enum>(2)</enum><header>Agency services</header><text>Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, that was providing supporting services to the Agency before the transfer date in connection with functions that are transferred to the Corporation shall—</text><subparagraph id="idE4DA2EF158114A77824CD4B8A6371171"><enum>(A)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and</text></subparagraph><subparagraph id="id0C15848CC85644EEA84E7C032D8E043F"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text></subparagraph></paragraph></subsection><subsection id="idD084669B946C4B0E81CBCBFDD394C05F"><enum>(e)</enum><header>Continuation of services</header><text>The Corporation may use the services of employees and other personnel of the Federal Housing Finance Agency, on a reimbursable basis, to perform functions which have been transferred to the Corporation for such time as is reasonable to facilitate the orderly transfer of functions pursuant to this section, any other provision of this Act, or any amendment made by this Act to any other provision of law.</text></subsection><subsection id="idA193EEA1470C4EC583F4E8A4ED39E049"><enum>(f)</enum><header>Savings provisions</header><paragraph id="id625DEBF59A084F0D8FCD91F8AB4ED05A"><enum>(1)</enum><header>Existing rights, duties, and obligations not affected</header><text>Subsection (a) and section 303 shall not affect the validity of any right, duty, or obligation of the United States, the Director of the Federal Housing Finance Agency, the Federal Housing Finance Agency, or any other person, that existed on the day before transfer date.</text></paragraph><paragraph id="id8B4D70FF6CE04BDAB18A00412BABFE35"><enum>(2)</enum><header>Continuation of suits</header><text>No action or other proceeding commenced by or against the Director of the Federal Housing Finance Agency in connection with the functions that are transferred to the Corporation under this section shall abate by reason of the enactment of this Act, except that the Corporation shall be substituted for the Director of the Federal Housing Finance Agency as a party to any such action or proceeding.</text></paragraph></subsection><subsection id="ID4ADEFA4B57D54D66A6AC8C32957BDBE4"><enum>(g)</enum><header>Conforming amendments</header><paragraph id="id4DF5DD35CFB94581BFB2C5906E1638C5"><enum>(1)</enum><header>Federal Home Loan Bank Act</header><text display-inline="yes-display-inline">The Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1421">12 U.S.C. 1421 et seq.</external-xref>) is amended—</text><subparagraph id="idE7099A7942B64950A701FBFCFED2426F"><enum>(A)</enum><text>by striking <quote>the Director</quote> and inserting <quote>the Corporation</quote> each place that term appears;</text></subparagraph><subparagraph id="id1F647735154D4089A445A59027E357E2"><enum>(B)</enum><text>by striking <quote>The Director</quote> and inserting <quote>The Corporation</quote> each place that term appears;</text></subparagraph><subparagraph id="idF9501380FE3B466097FBCF7017E9948F"><enum>(C)</enum><text>by striking <quote>Chairman of the Director of Governors</quote> and inserting <quote>Chairman of the Board of Governors</quote> each place that term appears;</text></subparagraph><subparagraph id="id328FE5D2ECD7438E8AE01BC7C890260B"><enum>(D)</enum><text>by striking <quote>the Agency</quote> and inserting <quote>the Corporation</quote> each place that term appears;</text></subparagraph><subparagraph id="id6A860760F5C843AC897A48D04DE808C8"><enum>(E)</enum><text>in section 2, by striking paragraphs (11) and (12) and inserting the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id612A9334F1EC4C0C8DAB8470CE484BFF" reported-display-style="strikethrough" style="OLC"><paragraph id="id5405740380E948EC8C44ABA5577B3D1D"><enum>(11)</enum><header>Corporation</header><text>The term <quote>Corporation</quote> means the Federal Mortgage Insurance Corporation established under title I of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="idB81F3F9ED08F48B7B8D6719B4D01A607"><enum>(F)</enum><text>in section 11(l)(5), in the header to such paragraph, by striking <quote><header-in-text level="paragraph" style="OLC">of the director</header-in-text></quote>.</text></subparagraph></paragraph><paragraph id="id5AF2DB776A014CC4841896C8394E6FD9"><enum>(2)</enum><header>Federal Housing Enterprises Financial Safety and Soundness Act</header><text>Section 1316 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4516) is amended—</text><subparagraph id="idE51F5ECD2E084798B20F4D203D5151F8"><enum>(A)</enum><text>in subsection (a)—</text><clause id="id09DD5F24D4BE4B5C82819D95092FDC4B"><enum>(i)</enum><text>in the matter preceding paragraph (1), by striking <quote>the regulated entities</quote> and inserting <quote>each enterprise</quote>; and</text></clause><clause id="id36ED81DDCB93403D8161A97DB7D57E65"><enum>(ii)</enum><text>in paragraph (1), by striking <quote>and under section 20 of the Federal Home Loan Bank Act</quote>;</text></clause></subparagraph><subparagraph id="id2F779CC5C1354F7AA5E6FCE0807A2C99"><enum>(B)</enum><text>in subsection (b), by striking paragraph (2);</text></subparagraph><subparagraph id="idFE6E904CC82D4CF5AB20C98F597C4613"><enum>(C)</enum><text>in subsection (c)—</text><clause id="idB668DE4CCB404812BBC8674E5996EABE"><enum>(i)</enum><text>by striking <quote>any regulated entity</quote> and inserting <quote>any enterprise</quote>;</text></clause><clause id="id207906EFD8BC4D0F9022884BC1C601DB"><enum>(ii)</enum><text>by striking <quote>the regulated entity</quote> and inserting <quote>the enterprise</quote>;</text></clause><clause id="id7D7B5583B16A45FFA8374B96451D4868"><enum>(iii)</enum><text>by striking <quote>a regulated entity</quote> and inserting <quote>an enterprise</quote> each place that term appears;</text></clause><clause id="id0D990BA874584258A6CE99B39BE3A0FC"><enum>(iv)</enum><text>by striking <quote>such regulated entity</quote> and inserting <quote>such enterprise</quote> each place that term appears; and</text></clause><clause id="id5B1E242B8A574F318FF19563B165395A"><enum>(v)</enum><text>by striking <quote>such entity</quote> and inserting <quote>such enterprise</quote>; and</text></clause></subparagraph><subparagraph id="idD68CFAB20BA64DEEA7A558DD7301BA87"><enum>(D)</enum><text>in subsection (e)—</text><clause id="id7884976FFD044953B8E01EC27BDFCB33"><enum>(i)</enum><text>by striking <quote>each regulated entity</quote> and inserting <quote>each enterprise</quote>; and</text></clause><clause id="id303B2A2DB28C4080B149FD7EB166D976"><enum>(ii)</enum><text>by striking <quote>such regulated entity</quote> and inserting <quote>such enterprise</quote>.</text></clause></subparagraph></paragraph><paragraph id="IDBBBCE8E1A78F4434994646A266A2A7D6"><enum>(3)</enum><header>Right to Financial Privacy Act of 1978</header><text>Section 1113(o) of the Right to Financial Privacy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3413">12 U.S.C. 3413(o)</external-xref>) is amended—</text><subparagraph id="ID7877F82D47984E7D92BF9D1EA68030F5"><enum>(A)</enum><text>in the heading to the subsection, by <quote><header-in-text level="subsection" style="OLC">Federal Housing Finance Agency</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Federal Mortgage Insurance Corporation</header-in-text></quote>;</text></subparagraph><subparagraph id="id876F9FA9F58C452A9ABF467C7C0302E4"><enum>(B)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3856B8B59D7E4FE3B6CDB97686C90BF5"><enum>(C)</enum><text>by striking <quote>Federal Housing Finance Agency's</quote> and inserting <quote>Federal Mortgage Insurance Corporation's</quote>.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0483AC0AA5234FF092D76E11FE343EBB"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall take effect on the transfer date.</text></paragraph></subsection></section><section id="id6ADBB26A9D8541FD93A1C96ACB95FC2F"><enum>302.</enum><header>Transfer and rights of employees of the FHFA</header><subsection id="id4BE577C16855469D9595887DA9D7C818"><enum>(a)</enum><header>Transfer</header><text>Each employee of the Federal Housing Finance Agency that is employed in connection with functions that are transferred to the Corporation under section 301 shall be transferred to the Corporation for employment, not later than the transfer date, and such transfer shall be deemed a transfer of function for purposes of <external-xref legal-doc="usc" parsable-cite="usc/5/3503">section 3503</external-xref> of title 5, United States Code.</text></subsection><subsection id="idA3925B2ADC944D3CA78DEF84B29BC8B5"><enum>(b)</enum><header>Status of employees</header><text display-inline="yes-display-inline">The transfer of functions under this title, and the abolishment of the Federal Housing Finance Agency under section 303, may not be construed to affect the status of any transferred employee as an employee of an agency of the United States for purposes of any other provision of law.</text></subsection><subsection id="id766A1723350842EA9124E11C11682749"><enum>(c)</enum><header>Guaranteed positions</header><text>Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer.</text></subsection><subsection id="id426AD018915C4CD89BC815D932BA9B02"><enum>(d)</enum><header>Appointment authority for excepted employees</header><paragraph id="id55C10A0F64AF44BBB8931E0E3647B9BE"><enum>(1)</enum><header>In general</header><text>In the case of an employee occupying a position in the excepted service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such position shall be transferred, subject to paragraph (2).</text></paragraph><paragraph id="idAA34CB82033540DD91A7FC6EAD4F9B89"><enum>(2)</enum><header>Decline of transfer</header><text>The Corporation may decline a transfer of authority under paragraph (1), to the extent that such authority relates to a position excepted from the competitive service because of its confidential, policymaking, policy-determining, or policy-advocating character.</text></paragraph></subsection><subsection id="id910836C26ABA4A0BA0A42FD1A0D3878A"><enum>(e)</enum><header>Reorganization</header><text>If the Corporation determines, after the end of the 1-year period beginning on the transfer date, that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.</text></subsection><subsection id="id7D70ABD9FACC4F5E9DAE1304395FABB7"><enum>(f)</enum><header>Employee benefit programs</header><paragraph id="id164F4432EFD84CA3B078603D6A2083DF"><enum>(1)</enum><header>In general</header><text>Any employee of the Federal Housing Finance Agency accepting employment with the Corporation as a result of a transfer under subsection (a) may retain, for 12 months after the date on which such transfer occurs, membership in any employee benefit program of the Agency or the Corporation, as applicable, including insurance, to which such employee belongs on the transfer date if—</text><subparagraph id="id31B253F912F747FF8FC8C5A9A9AA6C0E"><enum>(A)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text></subparagraph><subparagraph id="id77AC35FFA8754244A302CFD6F80AB2D2"><enum>(B)</enum><text>the benefit or program is continued by the Corporation.</text></subparagraph></paragraph><paragraph id="id918447540B2240E4B9BC38442DC52E4F"><enum>(2)</enum><header>Cost differential</header><subparagraph id="id741A41CD7DC5470196C64F0902042665"><enum>(A)</enum><header>In general</header><text>The difference in the costs between the benefits which would have been provided by the Federal Housing Finance Agency and those provided by this section shall be paid by the Corporation.</text></subparagraph><subparagraph id="id5AE212494F4E4C479A7EE4273B3D6910"><enum>(B)</enum><header>Health Insurance</header><text>If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by the Corporation, the employee shall be permitted to select an alternate Federal health insurance program not later than 30 days after the date of such election or notice, without regard to any other regularly scheduled open season.</text></subparagraph></paragraph></subsection></section><section id="id7D23FAD7714547F88F2D0F8AD75E7D38"><enum>303.</enum><header>Abolishment of FHFA</header><text display-inline="no-display-inline">Effective upon the FMIC certification date, the Federal Housing Finance Agency and the position of the Director of the Federal Housing Finance Agency are abolished.</text></section><section id="id0F7341E282C24C1782D2E0151660119E"><enum>304.</enum><header>Transfer of property and facilities</header><text display-inline="no-display-inline">Effective upon the FMIC certification date all property of the Federal Housing Finance Agency shall transfer to the Corporation.</text></section><section id="id3DDF42EF62FB42DAA315C7817861A605"><enum>305.</enum><header>Technical and conforming amendments</header><subsection commented="no" display-inline="no-display-inline" id="id0E61EEA6B3084CC88DABFE3EDFD926B9"><enum>(a)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of enactment of this Act.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id2359A856D16E46578073D1B63CF59408"><enum>(b)</enum><header>References in Federal law</header><text>On and after the date of enactment of this Act, any reference in Federal law to the Director of the Federal Housing Finance Agency or the Federal Housing Finance Agency, in connection with any function of the Director of the Federal Housing Finance Agency or the Federal Housing Finance Agency transferred under section 301, shall be deemed a reference to the Chairperson of the Federal Mortgage Insurance Corporation or the Federal Mortgage Insurance Corporation, as appropriate and consistent with the amendments made by this Act.</text></subsection><subsection id="idF69A7138C8A143A88180AD0323A0FC12"><enum>(c)</enum><header>Title 18, United States Code</header><text>Title 18, United States Code, is amended—</text><paragraph id="idBAD787E832554E57B9606E4A4DB2EED3"><enum>(1)</enum><text>in section 1905, by inserting <quote>or the Federal Mortgage Insurance Corporation</quote> after <quote>Federal Housing Finance Agency</quote>;</text></paragraph><paragraph id="id41402FB9C2C543B18A623D33005390C8"><enum>(2)</enum><text>in section 212(c)(2)—</text><subparagraph id="idD6E90E7967C8492293DB7A5682DA7012"><enum>(A)</enum><text>in subparagraph (F), by striking <quote>; and</quote> and inserting a semicolon;</text></subparagraph><subparagraph id="id20AD2B08EACE42AAAB87BEAA01FC90E4"><enum>(B)</enum><text>in subparagraph (G), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id035CF101B5BA4FB48330C0FE8177FF57"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id42C39C58812E441CADCC1255CBF686F8" reported-display-style="strikethrough" style="OLC"><subparagraph id="id87754FFA55A94E5DBD2A670658BDC7DD"><enum>(H)</enum><text>the Federal Mortgage Insurance Corporation.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id3014E812A465485D8D79B3335C1DF4E0"><enum>(3)</enum><text>in section 657, by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>;</text></paragraph><paragraph id="id378DB01744A24480AEED46B3D0DCCABC"><enum>(4)</enum><text>in section 1006, by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>; and</text></paragraph><paragraph id="id2C1AC078EFE9403995D3337F69AED53A"><enum>(5)</enum><text>in section 1014, by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></paragraph></subsection><subsection id="ID3ACFD69096F94BAE91BA2EE12F920CC8"><enum>(d)</enum><header>Flood Disaster Protection Act of 1973</header><text>Section 102(b)(5) of the Flood Disaster Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(b)(5)</external-xref>) is amended in subsection (b)(5), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="IDA48439278C1F4BA8BBE67816368589A0"><enum>(e)</enum><header>Title 5, United States Code</header><text>Title 5, United States Code, is amended—</text><paragraph id="id2B4368F69F6542098858D1D48CEAF870"><enum>(1)</enum><text>in section 5313, by inserting the following new item after the item relating to the Director of the Federal Housing Finance Agency:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="ID6979AA444D334BAF8913731FB478C1CE" reported-display-style="strikethrough" style="OLC"><paragraph id="ID1B8BD0D15F324825B1C71B46DE401AD8"><enum></enum><text>Director of the Federal Mortgage Insurance Corporation.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id46F24BA98B8B4E00B1F5E69B86F46543"><enum>(2)</enum><text>in section 3132(a)(1)(D), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></paragraph></subsection><subsection id="IDC80E1645DC7247A49811389FD9A949CE"><enum>(f)</enum><header>Sarbanes-Oxley Act</header><text>Section 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7215">15 U.S.C. 7215(b)(5)(B)(ii)(II)</external-xref>) is amended by inserting <quote>or the Chairperson of the Federal Mortgage Insurance Corporation</quote> after <quote>Director of the Federal Housing Finance Agency</quote>.</text></subsection><subsection id="IDE2A5014637464670AF531BB127D85F30"><enum>(g)</enum><header>Federal Deposit Insurance Act</header><text>The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—</text><paragraph id="idB32D462B23C24F0082805F1C1EF4BB57"><enum>(1)</enum><text>in section 7(a)(2)(A), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote> each place that term appears;</text></paragraph><paragraph id="id09C4C89F9CC148DAB671F98EB00C79EE"><enum>(2)</enum><text>in section 8(e)(7)(A)(vi), by inserting <quote>, the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency</quote>;</text></paragraph><paragraph id="id901C974C5C8C419CB7E1113544AF4AA4"><enum>(3)</enum><text>in section 11(t)(2)(A), by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idB47A96FB6827409480B3584FDF21FB61" reported-display-style="strikethrough" style="OLC"><clause id="id6F2643F2A8B54672B7D9553737C14662"><enum>(viii)</enum><text>The Federal Mortgage Insurance Corporation.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id1282D521E223410E9B9247F5D79B1F2C"><enum>(4)</enum><text>in section 33(e), by inserting <quote>, the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency</quote>.</text></paragraph></subsection><subsection id="IDB85EA073698D477C9E9509938A8AA2C0"><enum>(h)</enum><header>Riegle Community Development and Regulatory Improvement Act of 1994</header><text>Section 117(e) of the Riegle Community Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4716">12 U.S.C. 4716(e)</external-xref>) is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="ID05FAADD95D4B4C41A012F7776774D5B9"><enum>(i)</enum><header>MAHRA Act of 1997</header><text>Section 517(b)(4) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note) is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="ID95467649EEC040B9AD594709D7D9E54B"><enum>(j)</enum><header>Title 44, United States Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/44/3502">Section 3502(5)</external-xref> of title 44, United States Code, is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="ID631588828ABD408789CEB68A1538EDAD"><enum>(k)</enum><header>Access to local TV Act of 2000</header><text>Section 1004(d)(2)(D)(iii) of the Launching Our Communities' Access to Local Television Act of 2000 (47 U.S.C. 1103(d)(2)(D)(iii)) is amended by inserting <quote>or the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency</quote>.</text></subsection><subsection id="idA1593D57045E4003885D6F78632ACBBD"><enum>(l)</enum><header>FIRREA</header><text>The Financial Institutions Reform, Recovery, and Enhancement Act of 1989 is amended—</text><paragraph id="id3EF71849A6634D598D5934324EEE1ED4"><enum>(1)</enum><text>in section 1216—</text><subparagraph id="id8B0C87C8B8ED48FABF5D8D1925351855"><enum>(A)</enum><text>in subsection (a)—</text><clause id="id7744EE8062B34905BA3A58498C5F33FF"><enum>(i)</enum><text>in paragraph (2), by striking <quote>; and</quote> and inserting a semicolon;</text></clause><clause id="id38EA83D645A3428A9AA09E160A5EBBE4"><enum>(ii)</enum><text>in paragraph (3), by striking the period and inserting <quote>; and</quote>; and</text></clause><clause id="id98312FD331954969831F7E41CA3B6496"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id09480CE4D445472BBF0793E29793DDD5" reported-display-style="strikethrough" style="OLC"><paragraph id="id1811232DD4D0456EAEE318C200FDF07B"><enum>(4)</enum><text>the Federal Mortgage Insurance Corporation.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idDF2AA9EA7E014675B77C330C8E206424"><enum>(B)</enum><text>in subsection (c), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>and the Federal Housing Finance Agency,</quote>;</text></subparagraph></paragraph><paragraph id="id9A3F6E5373584D8AAF96075DFBAF697B"><enum>(2)</enum><text>in section 402(e), by striking <quote>Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Federal Mortgage Insurance Corporation</quote>;</text></paragraph><paragraph id="id96BF500B1CE740FD80A312D750247489"><enum>(3)</enum><text>in section 1124, by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote> each place that term appears; and</text></paragraph><paragraph id="id8EB1BA5765B54A92822FC35FBBE2512B"><enum>(4)</enum><text>in section 1125(b), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></paragraph></subsection><subsection id="id0D396FC237A84B79B816F1AF567E20D0"><enum>(m)</enum><header>EESA</header><text>The Emergency Economic Stabilization Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/12/5201">12 U.S.C. 5201</external-xref> note) is amended—</text><paragraph id="id9232F5BD6CF746A88708BCF1F488F504"><enum>(1)</enum><text>in section 104(b)—</text><subparagraph id="id220FAFC8EC3E429E86529878384A6BD6"><enum>(A)</enum><text>in paragraph (4), by striking <quote>; and</quote> and inserting a semicolon;</text></subparagraph><subparagraph id="id5FC710FEE57D43A2B38269F986AB87B6"><enum>(B)</enum><text>in paragraph (5), by striking the period and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id8E1589BB4EEB40499C5693E61B45D929"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idDB96CC309C314E6BB34CF14425AE8C94" reported-display-style="strikethrough" style="OLC"><paragraph id="id96C18C43AC9A43B384D2F3CE0E629902"><enum>(6)</enum><text>the Federal Mortgage Insurance Corporation.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id014EACD6CB114999A63B4F94FA7A162B"><enum>(2)</enum><text>in section 109(b), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></paragraph></subsection><subsection commented="no" id="id9B1B3BF7050646B9A5D8AE4F82ECD89A"><enum>(n)</enum><header>Dodd-Frank Act</header><text>The Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law 111–203</external-xref>) is amended—</text><paragraph commented="no" id="idF59122853C7F4674974C59F58F3BB854"><enum>(1)</enum><text>in section 342(g)(1)—</text><subparagraph id="id2462F4902D204B2190AA8BA2E3F5D675"><enum>(A)</enum><text>in subparagraph (H), by striking <quote>; and</quote> and inserting a semicolon;</text></subparagraph><subparagraph id="idD825B8D902EE435ABB5674D559EB6BE8"><enum>(B)</enum><text>in subparagraph (I), by striking the period and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id442CE156BC464E08A4B47D65D2D21E62"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id2BDDA921AC184B859EDDD1FB5E997095" reported-display-style="strikethrough" style="OLC"><subparagraph id="idE43C8F4F31EF4B409008A59042EF0D0C"><enum>(J)</enum><text>the Federal Mortgage Insurance Corporation.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="id7116CA525FF44DF6B2B8B86BA77BA629"><enum>(2)</enum><text>in section 989E(a)(1), by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id0ECB9A45D68D43C6BB1E7A3027469441" reported-display-style="strikethrough" style="OLC"><subparagraph commented="no" id="id267FB1BB3B5343ABB04A8428E84B4F3F"><enum>(J)</enum><text>The Federal Mortgage Insurance Corporation.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id715CBAA4207D440EA295505B0D067734"><enum>(3)</enum><text>in section 1481(b), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></paragraph></subsection><subsection id="idE1F8B345C95D4D518DFDAA27B8364D59"><enum>(o)</enum><header>Housing and Urban-Rural Recovery Act</header><text>Section 469 of the Housing and Urban-Rural Recovery Act of 1983 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701p-1">12 U.S.C. 1701p–1</external-xref>) is amended, in the first sentence, by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="id93E916A05FB24268AC9396636F9079F1"><enum>(p)</enum><header>Neighborhood Reinvestment Corporation Act</header><text>Section 606(c)(3) of the Neighborhood Reinvestment Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8105">42 U.S.C. 8105(c)(3)</external-xref>) is amended by inserting <quote>, the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency</quote>.</text></subsection><subsection id="id178C669B08274590986EE23CDEDDCEB9"><enum>(q)</enum><header>Federal Insurance Office Act</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/313">Section 313(r)(4)</external-xref> of title 31, United States Code, is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="id7ADCC418482F4C07941C1A5E5F007477"><enum>(r)</enum><header>Commodity Exchange Act</header><text>Section 1a(39)(E) of the Commodity Exchange Act (7 U.S.C. 1a(39)(E)) is amended—</text><paragraph id="idA02571E3307E4399B75572A0E5CF3100"><enum>(1)</enum><text>by striking <quote>a regulated entity</quote> and inserting <quote>an enterprise</quote>; and</text></paragraph><paragraph id="id3999D9244B4545B98B1B8CB7D37A5EEC"><enum>(2)</enum><text>by inserting before the period at the end <quote>the Federal Mortgage Insurance Corporation in the case of a swap dealer, major swap participant, security-based swap dealer, or major security-based swap participant that is a Federal Home Loan Bank</quote>.</text></paragraph></subsection><subsection id="id6AC8415A63CA4DD5BC79F2FBE0CAE60B"><enum>(s)</enum><header>Truth in Lending Act</header><text>The Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1601">15 U.S.C. 1601 et seq.</external-xref>) is amended—</text><paragraph id="id95270F53E6D24401A021EB3E7541E74A"><enum>(1)</enum><text>section 129H(b)(4), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>; and</text></paragraph><paragraph id="id86127CE4A733442881AACF88F22D7623"><enum>(2)</enum><text>in section 129E—</text><subparagraph id="id53331E0136CB4A70BAF7D85F7CC5D5B5"><enum>(A)</enum><text>in subsection (g)(1), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>; and</text></subparagraph><subparagraph id="id69D6808217E842A1ABC0F2DCFEB59422"><enum>(B)</enum><text>in subsection (h), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></subparagraph></paragraph></subsection><subsection id="id467946E2D2334EB9A3E3FE426201E747"><enum>(t)</enum><header>FFIEC</header><text>The first sentence of section 1011 of the Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3310">12 U.S.C. 3310</external-xref>) is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>and the Federal Housing Finance Agency</quote>.</text></subsection></section><enum>IV</enum><header>Improving transparency, accountability, and efficacy within affordable housing</header><section id="id256C7E494FF04A859753F85CD1C3B346"><enum>401.</enum><header>Affordable housing allocations</header><subsection id="id95B286EB85724213A992A9140167F128"><enum>(a)</enum><header>Fee and allocation of amounts</header><text display-inline="yes-display-inline">Subject to subsection (b), and in addition to any fees for the provision of insurance established in accordance with title II, in each fiscal year the Corporation shall—</text><paragraph id="ide43d9f40efd64608855b68eb8f408873"><enum>(1)</enum><text>charge and collect a fee in an amount equal to not less than 5 basis points and not more than 10 basis points for each dollar of the outstanding principal balance of eligible mortgages collateralizing covered securities for which insurance is being provided under title II; and</text></paragraph><paragraph id="idc66b578f33b5468b88e485524fe0c148"><enum>(2)</enum><text>allocate or otherwise transfer—</text><subparagraph id="id35f4760f707945ad880014a8a5a1eb40"><enum>(A)</enum><text>80 percent of such fee amounts to the Secretary of Housing and Urban Development to fund the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>); and</text></subparagraph><subparagraph id="id77d742de85d245a4a3ad6303c2b8363b"><enum>(B)</enum><text>20 percent of such fee amounts to the Secretary of the Treasury to fund the Capital Magnet Fund established under section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>).</text></subparagraph></paragraph></subsection><subsection id="id7793cdb37601489d9493f2d5f07aaf22"><enum>(b)</enum><header>Suspension of contributions</header><text>The Corporation may temporarily suspend allocations under subsection (a) upon a finding by the Corporation that such allocations are contributing, or would contribute, to the financial instability of the Mortgage Insurance Fund established under section 203.</text></subsection></section><section id="id7CB4A2AE2A2B4AF898ADAABD269681B7"><enum>402.</enum><header>Housing Trust Fund</header><text display-inline="no-display-inline">Section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568) is amended—</text><paragraph id="id84136C60E5514FD4ADE34C55D1628DD8"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>by the enterprises under section 1337</quote> and inserting <quote>pursuant to section 401 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title></quote>;</text></paragraph><paragraph id="idC5F3D85F8AA6463E8A30FE2912E994E9"><enum>(2)</enum><text display-inline="yes-display-inline">by repealing subsection (b); and</text></paragraph><paragraph id="id8EDA0ACEA6FE415E82F0CB3C4FD96113"><enum>(3)</enum><text>in subsection (c)—</text><subparagraph id="idE4414D22E8CF466EBDF5E0E7ED122331"><enum>(A)</enum><text>in paragraph (1), by striking <quote>Except as provided in subsection (b), the</quote> and inserting <quote>The</quote>;</text></subparagraph><subparagraph id="id2355321C5CFD4C0CA03543CB84F6D51A"><enum>(B)</enum><text>in paragraph (4)(B), by striking <quote>other than fiscal year 2009</quote>;</text></subparagraph><subparagraph id="idD87E7E31C02042F19F78C5B9E2722125"><enum>(C)</enum><text>in paragraph (7)—</text><clause id="idC493575853A54A128FD4EC12231F0CDF"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>; and</quote> and inserting a semicolon;</text></clause><clause id="id9E9F8C630FBD4E719F524B4A9CB77AEA"><enum>(ii)</enum><text>in subparagraph (B)(iv)—</text><subclause id="id46C1C11A8B60461E995636EED7E6B253"><enum>(I)</enum><text>by striking <quote>section 132</quote> and inserting <quote>section 1132</quote>; and</text></subclause><subclause id="id13D012593F114F3DAFD50843846F3E42"><enum>(II)</enum><text>by striking the period at the end and inserting a semicolon; and</text></subclause></clause><clause id="idFCE7AA0F18D04997B1EE122CD58A7029"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id0769CE840D7E4338A4F24F65B9C33528" reported-display-style="strikethrough" style="OLC"><subparagraph id="id3779761ABCB4452781A0F802F421091B"><enum>(C)</enum><text>grants and loans, including through the use of pilot programs of sufficient scale, to support the research and development of sustainable homeownership and affordable rental programs, provided that such grant or loan amounts are used only for the benefit of families whose income does not exceed 120 percent of the area median income as determined by the Secretary, with adjustments for family size; and</text></subparagraph><subparagraph id="idAFBC3A40F1214B18A076C9D1364CE479"><enum>(D)</enum><text>provide limited credit enhancement, and other forms of credit support, for product and services that—</text><clause id="idB475479171A74D408EE52C0933122A9F"><enum>(i)</enum><text>will increase the rate of sustainable homeownership and affordable rental by individuals or families whose income does not exceed 120 percent of the area median income as determined by the Secretary, with adjustments for family size; and</text></clause><clause id="idD89D160CB27749B08DF7A529549312CF"><enum>(ii)</enum><text>might not otherwise be offered or supported by a pilot program of sufficient scale to determine the viability of such products and services in the private market.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id0CA87AE8C06A4FE89AA987AA43DFF461"><enum>(D)</enum><text>in paragraph (10)—</text><clause id="id0F8823D7046541AC8FE55FBFB100FC22"><enum>(i)</enum><text>by amending subparagraph (A) to read as follows:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id7D86F9EAF91B44A7B737E5DF53A7AC19" reported-display-style="strikethrough" style="OLC"><subparagraph id="id9C8164360BA54B299D5382C4F8D2D17F"><enum>(A)</enum><header>Ensuring efficient use of grant amounts</header><clause id="id33D97CC51FE54007AFFD8005B15813C1"><enum>(i)</enum><header>Use for certain eligible activities</header><text>In each fiscal year, of the aggregate amount allocated to a State or State designated entity under this subsection—</text><subclause id="id6D08A4D430AC45AA83F1A8C7A4BE0EEF"><enum>(I)</enum><text>35 percent shall be used for activities under subparagraph (A) of paragraph (7);</text></subclause><subclause id="id1D1C86A24326411C9109B678355E0025"><enum>(II)</enum><text>5 percent shall be used for activities under subparagraph (B) of paragraph (7); and</text></subclause><subclause id="id6DB5B702CB034DCEAC73FA238DF818F3"><enum>(III)</enum><text>60 percent shall be used for activities under subparagraphs (C) and (D) of paragraph (7).</text></subclause></clause><clause id="idD751CB6F631D4B7EA59832520A108AD5"><enum>(ii)</enum><header>Ensuring benefits for rural communities</header><subclause id="idAEF1F599BDC94269830E49369D222D50"><enum>(I)</enum><header>In general</header><text>In each fiscal year, of the aggregate amount allocated to a State or State designated entity under this subsection, the State or State designated entity shall ensure that, at a minimum, such amounts are distributed for the benefit of nonentitlement areas in that State in the same proportion that the total amount of nonentitlement areas in that State bears to the total amount of all areas in that State.</text></subclause><subclause id="idE7ABB2FBA43E4584B4D6C84741039F96"><enum>(II)</enum><header>Targeted outreach to smaller communities</header><text>In carrying out the requirement under subclause (I), each State or State designated entity shall in distributing amounts allocated to that State or State designated entity give priority to nonentitlement areas with a population of less than 20,000.</text></subclause><subclause id="id325A286C5C13485294F22D7009115A89"><enum>(III)</enum><header>Definition of nonentitlement area</header><text>For purposes of this clause, the term <quote>nonentitlement area</quote> has the same meaning given that term under section 102(a)(7) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(7)).</text></subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="id66503756227D499A86950F1328C72620"><enum>(ii)</enum><text>by striking subparagraph (E).</text></clause></subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id6055ba39a30645adbf1070577636011c"><enum>403.</enum><header>Capital Magnet Fund</header><text display-inline="no-display-inline">Section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id49A5C8DCF9BF47CF8100F2C1C2A5AB84"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(1), by striking <quote>pursuant to section 1337</quote> and inserting <quote>pursuant to section 401 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title></quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id36F1F0CB1AA74DA5AC8E3B958C240943"><enum>(2)</enum><text>in subsection (h), by striking paragraph (7).</text></paragraph></section><section commented="no" display-inline="no-display-inline" id="id77DF30805DD64994953D7739F7B7157E"><enum>404.</enum><header>Additional taxpayer protections</header><subsection commented="no" display-inline="no-display-inline" id="idAEF285E24EF442ACADB28485F97BDB12"><enum>(a)</enum><header>Ensuring benefits support citizens and lawful permanent residents</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development and the Secretary of the Treasury, respectively, shall ensure that grant amounts allocated to covered grantees, allocated by covered grantees to eligible recipients, or allocated to individuals by such eligible recipients are used for the benefit of only lawful permanent residents and citizens of the United States in carrying out the activities of—</text><paragraph commented="no" display-inline="no-display-inline" id="idDCDC1ACC24A9468FA8B4D7DDCD1109E6"><enum>(1)</enum><text display-inline="yes-display-inline">the Housing Trust Fund; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1E80D8E3F82449AA9BA0F357017AB7E5"><enum>(2)</enum><text>the Capital Magnet Fund.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id38D27171B1874B1CBE671FE98F050B41"><enum>(b)</enum><header>Not To be used for political activities</header><text>Consistent with the existing requirements under sections 1338(c)(10)(D) and section 1339(h)(5) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, the Secretary of Housing and Urban Development and the Secretary of the Treasury, respectively, shall ensure that grant amounts allocated by covered grantees to eligible recipients or allocated to individuals by such eligible recipients are not used for—</text><paragraph id="idc90b0fd440404ed8be6e0c81fc632463"><enum>(1)</enum><text>political activities;</text></paragraph><paragraph id="id185efebbea544253920bb258a80fcbb1"><enum>(2)</enum><text>advocacy;</text></paragraph><paragraph id="id0715435cf11a481280fb857cb6c42e44"><enum>(3)</enum><text>lobbying, whether directly or through other parties;</text></paragraph><paragraph id="idD60638270DC94B4C85A72165F0F349E5"><enum>(4)</enum><text>influencing the selection, nomination, election, or appointment of one or more candidates to any Federal, State or local office;</text></paragraph><paragraph id="idF73FF08CFBFF4A8792D5C47A77727C80"><enum>(5)</enum><text>personal counseling services;</text></paragraph><paragraph id="id0E6438FD9EB543ECAF2B89A9AC8002D3"><enum>(6)</enum><text>travel expenses; and</text></paragraph><paragraph id="idB69F8EDEEBE247ADAE7C2CF5D0FAC42D"><enum>(7)</enum><text>preparing or providing advice on tax returns.</text></paragraph></subsection><subsection id="id78198F2C8AF2465BB26979EFA8AA0CC6"><enum>(c)</enum><header>Penalties</header><paragraph id="id70212E376BA74518998361E31E39D17D"><enum>(1)</enum><header>Civil money penalty</header><text>If an eligible recipient or any other individual in receipt of grant amounts described by this section violates any provision of subsection (a) or (b), the Secretary of Housing and Urban Development or the Secretary of the Treasury, as the case may be, may impose a civil penalty on such recipient or individual, as the case may be, of not more than $1,000,000 for each violation.</text></paragraph><paragraph id="idE302978D731940A8A86666AAF5F2A099"><enum>(2)</enum><header>Criminal penalties</header><text>Whoever, being subject to the provisions of subsection (a) or (b), knowingly participates, directly or indirectly, in any manner in conduct that results in a violation of such provisions shall, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, United States Code, be fined not more than $1,000,000 for each violation, imprisoned for not more than 5 years, or both.</text></paragraph><paragraph id="id20B5976AA793468E85865D880211DA76"><enum>(3)</enum><header>Rule of construction</header><text>The penalties imposed under paragraphs (1) or (2) shall be in addition to any other available civil remedy or any other available criminal penalty and may be imposed whether or not the Secretary of Housing and Urban Development or the Secretary of the Treasury, as the case may be, imposes other administrative sanctions.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6E6FC631AC814147946F11D2B2416C0A"><enum>(d)</enum><header>Definition</header><text>As used in this section—</text><paragraph commented="no" display-inline="no-display-inline" id="id2AA46044927C413CA79461028B44646E"><enum>(1)</enum><text>the term <quote>covered grantee</quote> means—</text><subparagraph commented="no" display-inline="no-display-inline" id="idB9E871ADC3DB4718A2394C1A19812BD6"><enum>(A)</enum><text>for purposes of the Housing Trust Fund, a State or State designated entity; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id632E2777D439404B9D6F63C89422825D"><enum>(B)</enum><text>for purposes of the Capital Magnet Fund, an eligible grantee as described under section 1339(e) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id780CBC2BB75E4A05AF5708C0641F7232"><enum>(2)</enum><text>the term <quote>eligible recipient</quote> means—</text><subparagraph commented="no" display-inline="no-display-inline" id="id92764EE82816422F93AAB351E62ECC90"><enum>(A)</enum><text>for purposes of the Housing Trust Fund, a recipient as described under section 1338(c)(9) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992t; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF066450ED9C4EAEB76C0E7CEDC7E7BF"><enum>(B)</enum><text>for purposes of the Capital Magnet Fund, a recipient of assistance from the Capital Magnet Fund;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7EBC6D118E5443AAB4CBEFEEE42BB10A"><enum>(3)</enum><text>the term <quote>Capital Magnet Fund</quote> means the Capital Magnet Fund established under section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>); and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id04BAE9B616554A8CAB4619AC8177B16A"><enum>(4)</enum><text>the term <quote>Housing Trust Fund</quote> means the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>).</text></paragraph></subsection></section><enum>V</enum><header>Wind Down of Fannie Mae and Freddie Mac</header><section id="idA2398E8DDA5B4D3CAF754E50526404AA"><enum>501.</enum><header>Repeal of GSE charters</header><subsection id="idECB8A4E3560B4A1F81DADEB3DD0ACB89"><enum>(a)</enum><header>Fannie Mae</header><text>Effective on the FMIC certification date, the charter of the Federal National Mortgage Association is repealed and the Federal National Mortgage Association shall have no authority to conduct new business under such charter, except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of—</text><paragraph commented="no" display-inline="no-display-inline" id="id5B14908C23B340319426AFE549F5D42C"><enum>(1)</enum><text>outstanding debt obligations of the Federal National Mortgage Association, including any—</text><subparagraph commented="no" display-inline="no-display-inline" id="id58360A1AAB8C41C1ABBD8CECFE2AE124"><enum>(A)</enum><text>bonds, debentures, notes, or other similar instruments;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98886630786E4F41968557AD143E9AF0"><enum>(B)</enum><text>capital lease obligations; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id73773C872A7C4F278F0FCA524F6424F8"><enum>(C)</enum><text>obligations in respect of letters of credit, bankers' acceptances, or other similar instruments; or</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id40F69AEC981D463BB5F16B060E33FBBA"><enum>(2)</enum><text>mortgage-backed securities guaranteed by the Federal National Mortgage Association.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idBEB6186311384D4185CDF99E1EF7A251"><enum>(b)</enum><header>Freddie Mac</header><text>Effective on the FMIC certification date, the charter of the Federal Home Loan Mortgage Corporation is repealed and the Federal Home Loan Mortgage Corporation shall have no authority to conduct new business under such charter, except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of—</text><paragraph commented="no" display-inline="no-display-inline" id="id0227C7128FC044E5BC02B2527C0BCA12"><enum>(1)</enum><text>outstanding debt obligations of the Federal Home Loan Mortgage Corporation, including any—</text><subparagraph commented="no" display-inline="no-display-inline" id="id99590B16E7DE430E979D552524E32737"><enum>(A)</enum><text>bonds, debentures, notes, or other similar instruments;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id89EFAA41551D4F53BEC42C0B3B0A1AC3"><enum>(B)</enum><text>capital lease obligations; or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id87A3B2A6766747ADBB81FD81348E95EF"><enum>(C)</enum><text>obligations in respect of letters of credit, bankers' acceptances, or other similar instruments; or</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA47D336CA89D4BEBA82F5F79A84D4E6D"><enum>(2)</enum><text>mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation.</text></paragraph></subsection><subsection id="id3FA2FC703D5D41CEAEFE6B255D306F22"><enum>(c)</enum><header>Existing guarantee obligations</header><paragraph id="id4F02887CAB664ED0A8B813CE43E5FD29"><enum>(1)</enum><header>Explicit guarantee</header><text>The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any obligation described under subsections (a) and (b).</text></paragraph><paragraph id="idE49BC48BF5424B39A44BCA15B3E9CB19"><enum>(2)</enum><header>Continued dividend payments</header><text>Notwithstanding section 502 or any other provision of law, and subject to section 601, provision 2(a) (relating to Dividend Payment Dates and Dividend Periods) and provision 2(c) (relating to Dividend Rates and Dividend Amount) of the Senior Preferred Stock Purchase Agreement, or any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of an enterprise issued pursuant to such Agreement—</text><subparagraph id="id6B37FD97CC1246AAB47072B9FC35AA17"><enum>(A)</enum><text>shall not be amended, restated, or otherwise changed to reduce the rate or amount of dividends in effect pursuant to such Agreement as of the Third Amendment to such Agreement dated August 17, 2012, except that any amendment to such Agreement to facilitate the sale of assets of the enterprises to facilitate compliance with the provisions of section 502(b) shall be permitted; and</text></subparagraph><subparagraph id="id5AC00366102344F887F4D7A095420407"><enum>(B)</enum><text>shall remain in effect until the guarantee obligations described under subsections (a)(2) and (b)(2) are fully extinguished.</text></subparagraph></paragraph><paragraph id="id702E179DACA4416883EB6AD1709BDC4B"><enum>(3)</enum><header>Applicability</header><text>Notwithstanding section 502, all guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the FMIC certification date shall be subject to the terms of the Senior Preferred Stock Purchase Agreement.</text></paragraph></subsection><subsection commented="no" id="id0a9de51e1ec040fa94838ebbdac0c6a6"><enum>(d)</enum><header>Federal Safety and Soundness Act</header><paragraph commented="no" id="idDEF7D6DA32C3496A975D24A592320FBD"><enum>(1)</enum><header>In general</header><text>The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended—</text><subparagraph commented="no" id="id73a6a97c37d74083ad136e3e15f22aca"><enum>(A)</enum><text>in section 1303—</text><clause commented="no" id="idFAF62F2DF5D648B2AD4DC619D7955B1B"><enum>(i)</enum><text>in paragraph (2), by striking <quote>'Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>;</text></clause><clause commented="no" id="idF14BAFD8BA6547098FC738A8DEA28273"><enum>(ii)</enum><text>in paragraph (3), by striking <quote>means</quote> and all that follows through the period at the end, and inserting <quote>means the Federal Home Loan Bank Act.</quote>;</text></clause><clause commented="no" id="id835AC9F426BF490C865CEDDDD8620F46"><enum>(iii)</enum><text>by repealing paragraph (4); and</text></clause><clause commented="no" id="idB810170383BA4A9786CDAEC2933F4484"><enum>(iv)</enum><text>in paragraph (9), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Board of Directors of the Federal Mortgage Insurance Corporation</quote>;</text></clause></subparagraph><subparagraph commented="no" id="id90082F348AA941139358ACEA5AD701B5"><enum>(B)</enum><text>by repealing section 1313A; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA776C63822D47DB9EC6D57F2256C15F"><enum>(C)</enum><text>by repealing section 1317(d).</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id734E45DD8EF041EE89B15953F94101EE"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) shall take effect on the FMIC certification date.</text></paragraph></subsection></section><section id="id9363B8AE2784483F98DD333E01E2F157"><enum>502.</enum><header>Wind down</header><subsection id="H6E64A529827147AEA1C5631228228E3C"><enum>(a)</enum><header>Wind down</header><paragraph id="id7A6EC9193D42424786BDD09AE0477C37"><enum>(1)</enum><header>Authority of FHFA</header><text display-inline="yes-display-inline">Beginning on the date of enactment of this Act and ending on the FMIC certification date, the Director of the Federal Housing Finance Agency, in consultation with the Corporation and the Secretary of the Treasury, shall take such action, and may prescribe such regulations and procedures, as may be necessary to wind down the operations of the enterprises in an orderly manner that complies with the requirements of this Act and any amendments made by this Act.</text></paragraph><paragraph id="id915C1DBCD5774FDF9CF2041208FBF084"><enum>(2)</enum><header>Limitation</header><text>Notwithstanding any authority granted to the Director of the Federal Housing Finance Agency under paragraph (1), the sale, transfer, exchange, or other disposition of any asset subject to the wind down required under this section shall be prohibited, if the Corporation—</text><subparagraph id="id736AB062BA7348ED85FDC30671A764C8"><enum>(A)</enum><text>in its discretion determines that such sale, transfer, exchange, or disposition would materially interfere with the ability of the Corporation to carry out the requirements of this Act; and</text></subparagraph><subparagraph id="id3A5330C03B5141B988FBA1788B9B5E67"><enum>(B)</enum><text>notifies, in writing, the Director of the Federal Housing Finance Agency within 14 days of such determination.</text></subparagraph></paragraph><paragraph id="id3256AE224AF54E4DAAD6F09C53FA8E49"><enum>(3)</enum><header>Rule of construction</header><text>Notwithstanding any authority granted to the Director of the Federal Housing Finance Agency under paragraph (1), the Director of the Federal Housing Finance Agency—</text><subparagraph id="idE5F882A7C6F2441EA82DEBE46D587BD4"><enum>(A)</enum><text>shall have no authority to sell, transfer, exchange, or otherwise dispose of any guarantee obligations described under subsections (a)(2) and (b)(2) of section 501; and</text></subparagraph><subparagraph id="idAF1C9070F91449EFAE53C0D930C68678"><enum>(B)</enum><text>shall have no rights, claims, or title to, nor any authority to sell, transfer, exchange, or otherwise dispose of, guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the FMIC certification date.</text></subparagraph></paragraph></subsection><subsection id="H71F783420F634976BDED56289C9BF152"><enum>(b)</enum><header>Division of assets and liabilities; authority To establish holding corporation and dissolution trust fund</header><text>The action and procedures required under subsection (a)—</text><paragraph id="H4698DB3965274036A3A29E1EED39B962"><enum>(1)</enum><text>shall include the establishment and execution of plans to provide for an equitable division, distribution, and liquidation of the assets and liabilities of an enterprise, including any infrastructure, property, including intellectual property, platforms, or any other thing or object of value, provided such plan complies with the requirements of this Act and any amendments made by this Act; and</text></paragraph><paragraph id="H796D8691F962483EA97085FB3FDC10A9"><enum>(2)</enum><text display-inline="yes-display-inline">may provide for establishment of—</text><subparagraph id="H9E39F3197D7D4A76849BCCC0FB67F725"><enum>(A)</enum><text>a holding corporation organized under the laws of any State of the United States or the District of Columbia for the purpose of winding down an enterprise; and</text></subparagraph><subparagraph id="H1565008A6DF043F2A2B7E42A101B39BA"><enum>(B)</enum><text>one or more trusts to which to transfer—</text><clause id="H8D61CAFCBA8B4ED3BD9638F23E998ABF"><enum>(i)</enum><text>outstanding debt obligations of an enterprise; or</text></clause><clause id="H00D936761DF8412487E4438BF2C51639"><enum>(ii)</enum><text>outstanding mortgages held for the purpose of collateralizing mortgage-backed securities guaranteed by an enterprise.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id80ED8B9EA323460AA5D0C8B9B265ED9E"><enum>(c)</enum><header>Recoupment by senior preferred shareholders</header><paragraph commented="no" display-inline="no-display-inline" id="id9B55D25052424034BB60DE8529454C4C"><enum>(1)</enum><header>In general</header><text>Subject to the requirements of this Act, any proceeds from the wind down of an enterprise shall be paid first to the senior preferred shareholders of each such enterprise, then to the preferred shareholders of each such enterprise, and then to the common shareholders of each such enterprise.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD96A060927B84B5BBA3D5A8F5728D97B"><enum>(2)</enum><header>Joint determination</header><text>The amount of any proceeds to be paid pursuant to paragraph (1) shall be jointly determined by the Director of the Federal Housing Finance Agency, the Corporation, and the Secretary of the Treasury.</text></paragraph><paragraph commented="no" id="id7FB266F174594D5F929D9A0F480ADF53"><enum>(3)</enum><header>Maximum return to shareholders</header><text>The wind down of each enterprise required under this section shall be managed by the Director of the Federal Housing Finance Agency, in consultation with the Corporation and the Secretary of the Treasury, to obtain resolutions that maximize the return for the senior preferred shareholders under paragraph (1), to the extent that such resolutions—</text><subparagraph commented="no" id="id7A1283CC5A84411093BEBEE3424C631C"><enum>(A)</enum><text>are consistent with the goal of supporting a sound, stable, and liquid housing market;</text></subparagraph><subparagraph commented="no" id="idFED8816E0D2B49F690ACAA8B4307ADA6"><enum>(B)</enum><text>are consistent with applicable Federal and State law;</text></subparagraph><subparagraph commented="no" id="idF997F27D37554AD48E6E78F9486F37A7"><enum>(C)</enum><text>comply with the requirements of this Act and any amendments made by this Act; and</text></subparagraph><subparagraph commented="no" id="id04F1EB4BB7F94D93BAF81DAEAB922F2C"><enum>(D)</enum><text>protect the taxpayer.</text></subparagraph></paragraph><paragraph commented="no" id="id027572DF8912440780D98D08B90BC30D"><enum>(4)</enum><header>Sale of certain assets as a going concern</header><text>Except as provided in section 601 or elsewhere as required in this Act, if the Director of the Federal Housing Finance Agency, in consultation with the Corporation and the Secretary of the Treasury, determines that the sale of any line of business, or any function, activity, or service of an enterprise as a going concern will maximize the return for the senior preferred shareholders as required under paragraph (3), the Director may conduct such sale, provided that—</text><subparagraph commented="no" id="idFEF3C1D346E74F88946CD91328147950"><enum>(A)</enum><text>under no circumstance, shall such sale transfer, convey, or authorize, or be deemed to transfer, convey, or authorize, any guarantee or Federal support, assistance, or backing, implicit or explicit, related to any such line of business, function, activity, or service; and</text></subparagraph><subparagraph commented="no" id="id37BE29D7085841B19377E8ADDB872290"><enum>(B)</enum><text>such sale does not impede or otherwise interfere with the ability of the Federal Mortgage Insurance Corporation to carry out the functions and requirements of this Act.</text></subparagraph></paragraph><paragraph commented="no" id="idF6BD6499427A4A4F97C4A6BDDA1283AE"><enum>(5)</enum><header>Rule of construction</header><text>For purposes of this subsection, the term <quote>proceeds</quote> does not include any guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the FMIC certification date.</text></paragraph></subsection></section><section id="H61ED645E819F434E8A7F9D215810F8F7"><enum>503.</enum><header>Aligning purpose of conservatorship with FMIC</header><subsection id="id678DF562FD6F400AB18D995C3C024A70"><enum>(a)</enum><header>Power as conservator</header><text display-inline="yes-display-inline">Section 1367(b)(2)(D) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617(b)(2)(D)</external-xref>) is amended to read as follows:</text><quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id04413D0F2C804C1C90A077AE863CB287" reported-display-style="strikethrough" style="OLC"><subparagraph id="idFB409D2F4CEE4B81B77F9CF2F18427E3"><enum>(D)</enum><header>Power as conservator</header><text>After the date of enactment of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title> the Agency shall, as conservator, take such actions as are necessary—</text><clause id="id8DF8BE55485A4CFAA2A72A7DC43498B5"><enum>(i)</enum><text>to ensure the efficient, effective, and expeditious wind down of the enterprises;</text></clause><clause id="id36B06F898BEF49129152D3C568CFE12E"><enum>(ii)</enum><text>to manage the affairs, assets, and obligations of the enterprises and to operate the enterprises in compliance with the requirements of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>;</text></clause><clause id="id21F86827BA6C48E78618B93D27265ABA"><enum>(iii)</enum><text>to assist the Federal Mortgage Insurance Corporation, in a consultative capacity, in carrying out the requirements under the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2013</short-title>; and</text></clause><clause id="id1EF58CF64F63465FB5650320BA001B98"><enum>(iv)</enum><text>to maintain liquidity and stability in the secondary mortgage market until such as time as the charters of the enterprises are revoked pursuant to title V of such Act.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idC8E9A2873B784B85AE00F5DEEB1A3494"><enum>(b)</enum><header>Rule of construction</header><text>Nothing in this Act, or any amendments made by this Act, except as may be explicitly provided for in this Act, or any amendment made by this Act, shall be deemed to alter the powers, authorities, rights, and duties that are vested in the Federal Housing Finance Agency and the Director of the Federal Housing Finance Agency with respect to its supervision and regulation of the enterprises.</text></subsection></section><section id="idFAE4330434BC489C959CB00A6F8D1B27"><enum>504.</enum><header>Conforming loan limits</header><subsection id="id0C6BD9D0EEA5425A9BC2DCBF8357A84A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Beginning on the date of enactment of this Act, the limitations governing the maximum original principal obligation of conventional mortgages that may be purchased by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, referred to in section 302(b)(2) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)(2)</external-xref>), respectively, shall not exceed $417,000 for a mortgage secured by a single-family residence, $533,850 for a mortgage secured by a 2-family residence, $645,300 for a mortgage secured by a 3-family residence, and $801,950 for a mortgage secured by a 4-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the date of enactment of this Act, subject to the limitations in this paragraph. Each adjustment shall be made by adding to each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase, during the most recent 12-month or 4-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained pursuant to section 1322 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4542">12 U.S.C. 4542</external-xref>). If the change in such house price index during the most recent 12-month or 4-quarter period ending before the time of determining such annual adjustment is a decrease, then no adjustment shall be made for the next year, and the next adjustment shall take into account prior declines in the house price index, so that any adjustment shall reflect the net change in the house price index since the last adjustment. Declines in the house price index shall be accumulated and then reduce increases until subsequent increases exceed prior declines.</text></subsection><subsection id="id42E3CEC8B6CF4F22AEAF61EEECB8F5AC"><enum>(b)</enum><header>Special exception for Alaska, Hawaii, Guam, and USVI</header><text>The limitations set forth under subsection (a) shall be increased by not to exceed 50 per centum with respect to properties located in Alaska, Guam, Hawaii, and the Virgin Islands.</text></subsection><subsection id="idE000AFB626194B078D5AF50951A6F6ED"><enum>(c)</enum><header>High-Cost area limit</header><text>The limitations set forth under subsection (a) shall also be increased, with respect to properties of a particular size located in any area for which 115 percent of the median house price for such size residence exceeds the limitation under subsection (a) for such size residence—</text><paragraph id="id65754D68286B4942A6537A85B7366DD9"><enum>(1)</enum><text>for the first year following the date of enactment of this Act, to the lesser of 150 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area for such size residence;</text></paragraph><paragraph id="id3D3030EC4D164B09B44A116F2D96CE36"><enum>(2)</enum><text>for the second year following the date of enactment of this Act, to the lesser of 145 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area for such size residence;</text></paragraph><paragraph id="id0F9C4CDB34C74471B8B61E0CA6EE8871"><enum>(3)</enum><text>for the third year following the date of enactment of this Act, to the lesser of 135 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area for such size residence;</text></paragraph><paragraph id="id10E699B0D7AF429FAF87DA70BD552F57"><enum>(4)</enum><text>for the fourth year following the date of enactment of this Act, to the lesser of 130 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area for such size residence; and</text></paragraph><paragraph id="id75F32F6C9D514812BAB79BBD6716736D"><enum>(5)</enum><text>for the fifth year following the date of enactment of this Act, and each year thereafter, to the lesser of 125 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area for such size residence.</text></paragraph></subsection></section><section id="id4EE7C1899823489298554A56E15FB6A6"><enum>505.</enum><header>Portfolio reduction</header><subsection id="idDAADD374E2C647F3AD366382D575BB3F"><enum>(a)</enum><header>Graduated reduction</header><paragraph id="id2CFFE597E4DA4929B991DE9560E1B74B"><enum>(1)</enum><header>In general</header><text>Each enterprise shall not own, as of any applicable date, mortgage assets in excess of—</text><subparagraph id="id4517805D0A694035B6D7A538F6BB7EB2"><enum>(A)</enum><text>as of December 31, 2013, $552,500,000,000; and</text></subparagraph><subparagraph id="id7EAF1EB518BF4563AD525444876DF9C6"><enum>(B)</enum><text>on December 31 of each year thereafter until the FMIC certification date, 85 percent of the aggregate amount of the mortgage assets that the enterprise was permitted to own as of December 31 of the immediately preceding calendar year.</text></subparagraph></paragraph><paragraph id="idA92105F336454B57914CD2FE66C5DD84"><enum>(2)</enum><header>Retained portfolio to facilitate orderly wind down</header><text>On December 31 of the year in which the FMIC certification date occurs, the Corporation shall establish an allowable amount of enterprise owned mortgage assets in an amount equal to the amount necessary to facilitate—</text><subparagraph id="id6734E9C39D0D4A279E9D66156CE82C7A"><enum>(A)</enum><text>the orderly wind down of the enterprises; and</text></subparagraph><subparagraph id="id4227EC728A424E09887EDD32354375FA"><enum>(B)</enum><text>appropriate loss mitigation on any legacy guarantees of the enterprises.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H921D8FA8B758413F95F45AAB680EFF3B"><enum>(b)</enum><header>Mortgage assets defined</header><text>For purposes of this section, the term <term>mortgage assets</term> means, with respect to an enterprise, assets of such enterprise consisting of mortgages, mortgage loans, mortgage-related securities, participation certificates, mortgage-backed commercial paper, obligations of real estate mortgage investment conduits and similar assets, in each case to the extent such assets would appear on the balance sheet of such enterprise in accordance with generally accepted accounting principles in effect in the United States as of September 7, 2008 (as set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board from time to time; and without giving any effect to any change that may be made after September 7, 2008, in respect of Statement of Financial Accounting Standards No. 140 or any similar accounting standard).</text></subsection></section><section id="id874AE73C620C46288EBE4B52CEDE9174"><enum>506.</enum><header>Repeal of mandatory housing goals</header><subsection id="H4EB54D196FB24E20A9205210C0ABFC86"><enum>(a)</enum><header>Repeal of housing goals</header><text display-inline="yes-display-inline">The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by striking sections 1331 through 1336 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561-6">12 U.S.C. 4561–6</external-xref>).</text></subsection><subsection id="H42CE32CB2569430393F3B69DD3CCDFBB"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended—</text><paragraph id="H229724B888844775AEA85CE0CB41648C"><enum>(1)</enum><text>in section 1303(28), by striking <quote>, and, for the purposes</quote> and all that follows through <quote>designated disaster areas</quote>;</text></paragraph><paragraph id="H2A023D05AAE04E0B881A59ED395FDB13"><enum>(2)</enum><text>in section 1324(b)(1)(A), by striking clauses (i), (ii), and (iv);</text></paragraph><paragraph id="HE01689D905E04829B4F7694AF3F0939D"><enum>(3)</enum><text>in section 1341—</text><subparagraph id="HC9A348863CB4499781D01179C4239DDD"><enum>(A)</enum><text>in subsection (a)—</text><clause id="H9E79BFD1813E469D8133819EB878B75A"><enum>(i)</enum><text>in paragraph (1), by inserting <quote>or</quote> after the semicolon at the end;</text></clause><clause id="H426DB9675E1E4B4682AC009AC1A3F0C9"><enum>(ii)</enum><text>in paragraph (2), by striking the semicolon at the end and inserting a period; and</text></clause><clause id="HAA75076C5CD0457689003998D30AB81E"><enum>(iii)</enum><text>by striking paragraphs (3) and (4); and</text></clause></subparagraph><subparagraph id="H780A5DE9AC9D4A7C8B11CC876739B871"><enum>(B)</enum><text>in subsection (b)(2)—</text><clause id="H2B5D25BE942944EBA34797C3D8F91DF1"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></clause><clause id="HEC065F5731BE4FFEB3EB02F4ABB29CDD"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C); and</text></clause><clause id="H0466E42CAC1A4C2C8A14C4491BE778D2"><enum>(iii)</enum><text>by redesignating subparagraph (D) as subparagraph (B);</text></clause></subparagraph></paragraph><paragraph id="H427463FAC76142B38CAE2F7517AD9884"><enum>(4)</enum><text>in section 1345(a)—</text><subparagraph id="HAE7E6E39A01945E0BC18DE0739EBA44A"><enum>(A)</enum><text>in paragraph (1), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph><subparagraph id="H494B26513B6248AA804B269472E76B14"><enum>(B)</enum><text>in paragraph (2), by striking the semicolon at the end and inserting a period; and</text></subparagraph><subparagraph id="H98733FDA67014F85BEF3ACC94B3DFE82"><enum>(C)</enum><text>by striking paragraphs (3) and (4); and</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H64F44B89A31E46919FCA6774C1B273E6"><enum>(5)</enum><text>in section 1371(a)(2), by striking <quote>with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title,</quote>.</text></paragraph></subsection></section><enum>VI</enum><header>Improvements to functioning of housing market</header><section commented="no" display-inline="no-display-inline" id="id6EE62BE14B8D4547B5F115D301DEA333"><enum>601.</enum><header>Continuation of multifamily business of the enterprises</header><subsection commented="no" display-inline="no-display-inline" id="id1C596570E95D41CE81B20902355B379C"><enum>(a)</enum><header>In general</header><text>Notwithstanding any provision of title V, or any other provision of law, effective on the FMIC certification date, all functions, activities, infrastructure, property, including intellectual property, platforms, or any other object or service of an enterprise relating to the maintenance and operation of the multifamily guarantee business of an enterprise shall be transferred, without cost, to the Corporation.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idB5FF872C3DF44BFBAF8089CC265978DD"><enum>(b)</enum><header>Authority of Director</header><text>The Corporation is authorized, upon such terms and conditions as it may deem appropriate, to guarantee the timely payment of principal of and interest, on any mortgage on multifamily housing purchased by the Corporation pursuant to the transfer of an enterprise's multifamily guarantee business under subsection (a).</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idAD45499165F54555BAF545592F82A3BD"><enum>(c)</enum><header>Limitation on ongoing operation of multifamily business</header><text>In carrying out the multifamily guarantee business of an enterprise transferred pursuant to subsection (a), the Corporation shall ensure that any such business continues to operate, as applicable, consistent with—</text><paragraph commented="no" display-inline="no-display-inline" id="id3FA93A6CCF8F45FA8CA8D25EE175F48A"><enum>(1)</enum><text>the Delegated Underwriting and Servicing Lender Program established by the Federal National Mortgage Association; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5CBE9C9F39064C08B76AD951F0180ECF"><enum>(2)</enum><text>the Program Plus Lender Program established by the Federal Home Loan Mortgage Corporation, especially the Series K Structured Pass-Through Certificates offered by the enterprise.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFD124DAEDE564C569F52DCDD2742E46A"><enum>(d)</enum><header>Explicit guarantee</header><text>The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guaranty—</text><paragraph commented="no" display-inline="no-display-inline" id="idE5368F7FE8554D65B67DEA519B7F094D"><enum>(1)</enum><text>issued by the Corporation pursuant to this subsection; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6FAFBD6F9DA24F0BB790BB10629A4C0B"><enum>(2)</enum><text>obligation assumed by the Corporation pursuant to the transfer of an enterprise's multifamily guarantee business under subsection (a).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id77E1CC41C7F94D1B935CEDE1334CD816"><enum>(e)</enum><header>Guarantee fee</header><paragraph commented="no" display-inline="no-display-inline" id="id2A13D316F3D94FD8BAED8B41C28DEA9E"><enum>(1)</enum><header>In general</header><text>The Corporation shall collect a reasonable fee for any guaranty under this subsection and shall make such charges as it may determine to be reasonable for the analysis of any trust or other security arrangement proposed by an issuer of a security backed by multifamily mortgages guaranteed under this section.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB7CEFFA5EC8649A3BD9C97208707C379"><enum>(2)</enum><header>Deposit into Mortgage Insurance Fund</header><text>Any guarantee fee amounts collected under this subsection shall be deposited in the Mortgage Insurance Fund.</text></paragraph></subsection></section><section id="id34432223433E4989995D504E0117184F"><enum>602.</enum><header>Multiple lender issues</header><text display-inline="no-display-inline">With respect to the dwelling of a borrower that serves as security for an eligible mortgage, if the borrower enters into any credit transaction that would result in the creation of a new mortgage or other lien on such dwelling where the loan-to-value ratio of such credit transaction amount is 80 percent or more, the creditor of such new mortgage or other lien shall seek and obtain the approval of the creditor of the senior eligible mortgage loan before any such credit transaction becomes valid and enforceable.</text></section><section id="id341C6A6F88874A0CBADE2B4CC0B9A4E0"><enum>603.</enum><header>GAO report on full privatization of secondary mortgage market</header><subsection id="id65291F82B197415D8AEBEFBD8EB36E72"><enum>(a)</enum><header>GAO report</header><text display-inline="yes-display-inline">Not later than 8 years after the date of enactment of this Act, the Comptroller General of the United States shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the feasibility of maintaining a fully privatized secondary mortgage market, including recommendations on how to best carry out any displacement of the insurance model established under this Act.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id126D3E828C3E4BDCBBAB19D156310F90"><enum>(b)</enum><header>Corporation plan To transition to a fully private secondary mortgage market</header><paragraph commented="no" display-inline="no-display-inline" id="id8CDB749430D444BAA0D1F92E033C2816"><enum>(1)</enum><header>Required submission to Congress</header><text display-inline="yes-display-inline">Not later than 6 months after the date on which the report required under subsection (a) is submitted, the Corporation shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a plan to transition to a fully privatized secondary mortgage market.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id498F4D81D8104E7D9AE11F27FF08BACC"><enum>(2)</enum><header>Required content of plan</header><text>The plan required to be submitted under paragraph (1) shall describe, chronicle, and specify all the legislative, administrative, and regulatory actions necessary to carry out a transition to a fully private secondary mortgage market, including all actions necessary to dissolve the Corporation and successfully displace the insurance model established under this Act.</text></paragraph></subsection></section><enum>VII</enum><header>General provisions</header><section id="id8bef406900a047bba4029626b37be647"><enum>701.</enum><header>Authority to issue regulations</header><text display-inline="no-display-inline">The Corporation may prescribe such regulations and issue such guidelines, orders, requirements, or standards as are necessary to carry out this Act, or any amendment made by this Act.</text></section><section id="id1A4B40B1F8294D3EACE8739BA29C2112"><enum>702.</enum><header>Fair value accounting</header><text display-inline="no-display-inline">In any evaluation, oversight, audit, or analysis by the Corporation of the cost of the Mortgage Insurance Fund, the insurance or guarantee activities of the Corporation required under this Act, including any fee or charge in connection with the provision of such insurance or guarantee, or the financial transactions of the Corporation, the Corporation shall conduct any such evaluation, oversight, audit, or analysis based on the fair-value accrual accounting method.</text></section><section id="idFEDF31C025174474A80E480FAFA9E4D6"><enum>703.</enum><header>Rule of construction</header><text display-inline="no-display-inline">Nothing in this Act shall be construed to prohibit or otherwise restrict the ability of a holder of any loss position in any covered security insured under this Act from restructuring, retranching, or resecuritizing such position.</text></section><section id="id46020892162D4D55A25B2D324220838F"><enum>704.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act or the application of any provision of this Act to any person or circumstance, is held invalid, the application of such provision to other persons or circumstances, and the remainder of this Act, shall not be affected thereby.</text></section>
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Housing Finance Reform and Taxpayer Protection Act of 2014.(b)
Table of contents
The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Sec. 2. Definitions.TITLE I—Elimination of Fannie Mae and Freddie MacSec. 101. Elimination of Fannie Mae and Freddie Mac.TITLE II—Federal Mortgage Insurance CorporationSec. 201. Establishment.Sec. 202. Management of Corporation.Sec. 203. Advisory Committee.Sec. 204. Office of the Inspector General.Sec. 205. Staff, experts, and consultants.Sec. 206. Reports; testimony; audits.Sec. 207. Specific offices.Sec. 208. Office of Consumer and Market Access.Sec. 209. Office of Multifamily Housing.Sec. 210. Equitable access for lenders and borrowers.Sec. 211. Office of Taxpayer Protection.TITLE III—Duties and responsibilities of the FMICSubtitle A—Duties and authoritiesSec. 301. Duties and responsibilities.Sec. 302. Standards for credit risk-sharing mechanisms.Sec. 303. Insurance; Mortgage Insurance Fund.Sec. 304. Loan limits; Housing Price Index.Sec. 305. Authority to protect taxpayers in unusual and exigent market conditions.Sec. 306. General powers.Sec. 307. Exemptions.Sec. 308. Regulatory consultation and coordination.Sec. 309. Authority to issue regulations.Sec. 310. Equivalency in protection of the Mortgage Insurance Fund.Subtitle B—Approval and supervision of approved entities for single-family activitiesSec. 311. Approval and supervision of guarantors.Sec. 312. Approval and supervision of aggregators.Sec. 313. Approval of private mortgage insurers.Sec. 314. Approval of servicers.Sec. 315. Authority to establish and approve small lender mutuals.Sec. 316. Supervisory actions related to capital and solvency.Sec. 317. Ownership, acquisitions, and operations of covered entities.Subtitle C—Securitization Platform and Transparency in Market OperationsPART I—Securitization PlatformSec. 321. Establishment of the Securitization Platform.Sec. 322. Management of the Platform.Sec. 323. Membership in the Platform.Sec. 324. Fees.Sec. 325. Purposes and obligations of the Platform.Sec. 326. Uniform securitization agreements for covered securities and required contractual terms for noncovered securities.Sec. 327. Approval and standards for collateral risk managers.PART II—Transparency in market operationsSec. 331. Review of loan documents; disclosures.Sec. 332. National mortgage database.Sec. 333. Working group on electronic registration of mortgage loans.Sec. 334. Multiple lender issues.Sec. 335. Required harmonization of standards within eligible mortgage criteria.TITLE IV—FHFA and FMIC TransitionSec. 401. Definitions.Sec. 402. FHFA transition.Sec. 403. Transfer and rights of employees of the FHFA.Sec. 404. Transition Committee.Sec. 405. Transition assessments.Sec. 406. Transfer of powers and duties on the system certification date; continuation and coordination of certain actions.Sec. 407. Technical and conforming amendments relating to abolishment of FHFA.Sec. 408. Repeal of mandatory housing goals.TITLE V—Improving transparency, accountability, and efficacy within affordable housingSec. 501. Affordable housing allocations.Sec. 502. Housing Trust Fund.Sec. 503. Capital Magnet Fund.Sec. 504. Market Access Fund.Sec. 505. Additional taxpayer protections.Sec. 506. Promoting affordable housing investment.TITLE VI—Transition and termination of Fannie Mae and Freddie MacSec. 601. Minimum housing finance system criteria to be met prior to system certification date.Sec. 602. Transition of the housing finance system.Sec. 603. Resolution authority; technical amendments.Sec. 604. Wind down.Sec. 605. Portfolio reduction.Sec. 606. Oversight of transition of the housing finance system.Sec. 607. Authority to establish provisional standards.Sec. 608. Initial fund level for the Mortgage Insurance Fund.Sec. 609. GAO report on full privatization of secondary mortgage market.TITLE VII—MultifamilySec. 701. Establishment of multifamily subsidiaries.Sec. 702. Disposition of multifamily businesses.Sec. 703. Approval and supervision of multifamily guarantors.Sec. 704. Multifamily housing requirement.Sec. 705. Establishment of small multifamily property program.Sec. 706. Multifamily housing study.Sec. 707. Multifamily platform study.Sec. 708. Short-term residential housing.TITLE VIII—General provisionsSec. 801. Rule of construction.Sec. 802. Severability.Sec. 803. Transfer notification under TILA.Sec. 804. Investment authority to support rural infrastructure.Sec. 805. Consolidation of similar housing assistance programs.Sec. 806. Bureau of Consumer Financial Protection review; GAO report.Sec. 807. Determination of budgetary effects.
2.
Definitions
As used in this Act, the following definitions shall apply:(1)
Affiliate
The term affiliate means any person that controls, is controlled by, or is under common control with another person.(2)
Affordable rental housing
The term affordable rental housing means a rental housing unit that is considered affordable for extremely low-, very low-, low-, and moderate-income families if the rent charged, including utilities or a utility allowance, does not exceed 30 percent of the respective income limit in that market area for extremely low-, very low-, low-, or moderate-income families, respectively, of the size appropriate for the number of bedrooms in the unit, as established by the Secretary of Housing and Urban Development.(3)
Agency transfer date
The term agency transfer date means the date that is 6 months after the date of enactment of this Act.(4)
Appropriate Federal banking agency
The term appropriate Federal banking agency has the same meaning as in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), and includes the National Credit Union Administration in the case of any credit union.(5)
Approved aggregator
The term approved aggregator means an entity that is approved by the Corporation pursuant to section 312.(6)
Approved entity
The term approved entity means—(A)an approved guarantor;(B)an approved multifamily guarantor;(C)an approved aggregator;(D)an approved private mortgage insurer; and(E)an approved servicer.(7)
Approved guarantor
The term approved guarantor means an entity that is approved by the Corporation pursuant to section 311.(8)
Approved multifamily guarantor
The term approved multifamily guarantor means an entity that is approved by the Corporation pursuant to section 703.(9)
Approved private mortgage insurer
The term approved private mortgage insurer means an entity that is approved by the Corporation pursuant to section 313.(10)
Approved servicer
The term approved servicer means an entity that is approved by the Corporation pursuant to section 314.(11)
Area
The term area means a metropolitan statistical area, a micropolitan statistical area, and a noncore area, as such areas may be established by the Office of Management and Budget.(12)
Board; Board of Directors
The terms Board and Board of Directors mean the Board of Directors of the Federal Mortgage Insurance Corporation, unless the context otherwise requires.(13)
Chairperson
The term Chairperson means the Chairperson of Board of Directors of the Federal Mortgage Insurance Corporation, unless the context otherwise requires.(14)
Charter
The term charter means—(A)with respect to the Federal National Mortgage Association, the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); and(B)with respect to the Federal Home Loan Mortgage Corporation, the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.).(15)
Community Development Financial Institution
The term Community Development Financial Institution has the same meaning as in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702).(16)
Community land trust
The term community land trust means a nonprofit organization or State or local government that owns real property and leases the land through homeownership programs that—(A)use a ground lease to—(i)make real property affordable to low- or moderate-income borrowers; and(ii)stipulate a preemptive option to purchase the real property from the home owner at resale so that the affordability of the real property is preserved for successive low- and moderate-income borrowers;(B)monitor properties to ensure affordability is preserved over resales; and(C)support homeowners to promote successful homeownership and prevent foreclosure.(17)
Corporation
The term Corporation means the Federal Mortgage Insurance Corporation established under title II.(18)
Covered entity
The term covered entity means—(A)an approved guarantor;(B)an approved multifamily guarantor; and(C)an approved aggregator that is neither an insured depository institution nor an affiliate of an insured depository institution.(19)
Covered guarantee transaction
(A)
Definition
The term covered guarantee transaction means a transaction, as that term shall be defined by the Corporation by regulation, involving the agreement to guarantee—(i)any eligible mortgage loan;(ii)any pool of such eligible mortgage loans; or(iii)the payment of principal and interest on covered securities collateralized by eligible mortgage loans before payments insured by the Corporation are made.(B)
Rules of construction
A covered guarantee transaction—(i)shall not be construed to be—(I)a contract for sale of a commodity for future delivery or a swap under the Commodity Exchange Act; or(II)a contract of insurance or reinsurance under any Federal or State law regulating the sale, underwriting, provision, or brokerage of insurance;(ii)shall not be subject to any requirement of the Commodity Exchange Act; and(iii)shall not be subject to any requirement imposed under State law pertaining to the sale, underwriting, provision, or brokerage of insurance or reinsurance.(20)
Covered market-based risk-sharing transaction
(A)
Definition
The term covered market-based risk-sharing transaction means any private market transaction, as that term shall be defined by the Corporation by regulation, involving a covered security issued subject to a standard risk-sharing mechanism, product, contract, or other security agreement approved by the Corporation under section 302.(B)
Rules of construction
A covered market-based risk-sharing transaction—(i)shall not be construed to be a contract of insurance or reinsurance under any Federal or State law regulating the sale, underwriting, provision, or brokerage of insurance; and(ii)shall not be subject to any requirement imposed under State law pertaining to the sale, underwriting, provision, or brokerage of insurance or reinsurance.(21)
Covered security
The term covered security means—(A)a single-family covered security; and(B)a multifamily covered security.(22)
Credit risk-sharing mechanism
The term credit risk-sharing mechanism means any mechanism, product, structure, contract, or security agreement by which a private market holder assumes the first loss position, or any part of such position, associated with the pool of eligible mortgage loans collateralizing a covered security, or by which an approved guarantor or approved multifamily guarantor manages the credit risk related to guarantees provided for covered securities.(23)
CSP
The term CSP means the securitization infrastructure announced by the Federal Housing Finance Agency on October 4, 2012, and developed by the enterprises while under conservatorship, under the authority of the Federal Housing Finance Agency pursuant to the Safety and Soundness Act, and commonly referred to as the common securitization platform.(24)
Days
The term days means—(A)with respect to any period of time less than or equal to 10 days, business days; and(B)with respect to any period of time greater than 10 days, calendar days.(25)
Depository institution holding company
The term depository institution holding company has the same meaning as section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)).(26)
Eligible borrower
The term eligible borrower means a borrower who—(A)applies for an eligible mortgage loan; and(B)meets the standards required of a borrower to be approved for an eligible mortgage loan.(27)
Eligible mortgage loan
The term eligible mortgage loan means—(A)an eligible single-family mortgage loan; and(B)an eligible multifamily mortgage loan.(28)
Eligible multifamily mortgage loan
The term eligible multifamily mortgage loan means a commercial real estate loan—(A)secured by a property with—(i)5 or more residential units; or(ii)2 or more residential units, if the requirement under clause (i) is waived by the Corporation for purposes of carrying out a demonstration or pilot program;(B)the primary source of repayment for which is expected to be derived from rental income generated by the property;(C)the term of which may not be less than 5 years but not more than 40 years, except that the term may be less than 5 years subject to standards set by the Corporation;(D)that satisfies any additional underwriting criteria established by the Corporation to balance supporting access to capital with managing credit risk to the Mortgage Insurance Fund, including—(i)a maximum loan-to-value ratio;(ii)a minimum debt service coverage ratio; and(iii)considerations for restrictive or special uses of a property, including non-residential uses, properties for seniors, manufactured housing, and affordability restrictions, and the impact of such uses on clauses (i) and (ii); and(E)that satisfies any additional underwriting criteria that may be established by the Corporation.(29)
Eligible single-family mortgage loan
The term eligible single-family mortgage loan means—(A)a loan that—(i)has been originated in compliance with minimum standards issued by the Corporation by regulation, provided that such standards—(I)are uniform and equal in kind, nature, and application regardless of—(aa)the originator of the mortgage loan; or(bb)the role performed by an approved entity with respect to the mortgage loan;(II)are, to the greatest extent possible, substantially similar to the regulations issued by the Bureau of Consumer Financial Protection under section 129C(b) of the Truth in Lending Act (15 U.S.C. 1639c); and(III)permit—(aa)residential real estate loans secured by a property with 1 to 4 single-family units, including units that are not owner-occupied;(bb)loans secured by manufactured homes, as defined in section 603(6) of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6));(cc)residential real estate loans secured by a property with 1 to 4 single-family units that are originated by a State housing finance agency, as defined in section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x);(dd)loans originated by a Community Development Financial Institution;(ee)loans originated by a mission-based nonprofit lender;(ff)loans secured by real property in a permanently affordable homeownership program or community land trust; and(gg)loans to entities that provide non-owner occupied rental housing with care providers for individuals with intellectual and developmental disabilities;(ii)has a maximum original principal obligation amount that does not exceed the applicable loan limitation established under section 304;(iii)has an outstanding principal balance at the time of purchase of insurance available under title II that does not exceed 80 percent of the value of the property securing the loan, unless—(I)for such period and under such circumstances as the Corporation may require, the seller agrees to repurchase or replace the loan upon demand of the Corporation in the event the loan is in default;(II)an approved private mortgage insurer guarantees or insures—(aa)not less than 12 percent of the unpaid principal balance of the loan, accounting for any down payment required under clause (iv), for loans in which the unpaid principal balance exceeds 80 percent but not more than 85 percent of the value of the property securing the loan;(bb)not less than 25 percent of the unpaid principal balance of the loan, accounting for any down payment required under clause (iv), for loans in which the unpaid principal balance exceeds 85 percent but not more than 90 percent of the value of the property securing the loan;(cc)not less than 30 percent of the unpaid principal balance of the loan, accounting for any down payment required under clause (iv), for loans in which the unpaid principal balance exceeds 90 percent but not more than 95 percent of the value of the property securing the loan; and(dd)not less than 35 percent of the unpaid principal balance of the loan, accounting for any down payment required under clause (iv), for loans in which the unpaid principal balance exceeds 95 percent of the value of the property securing the loan; or(III)that portion of the unpaid principal balance of the loan which exceeds 80 percent of the value of the property securing the loan is subject to other credit enhancement that—(aa)meets standards comparable to the standards required of private mortgage insurers under subclause (II); and(bb)is approved by the Corporation;(iv)has a down payment that is—(I)for a first-time homebuyer, as that term shall be defined by the Corporation by regulation, equal to not less than 3.5 percent of the purchase price of the property securing the loan; or(II)for non first-time homebuyers, equal to—(aa)not less than 3.5 percent of the purchase price of the property securing the loan, if such purchase occurs prior to the system certification date or less than 1 year after the system certification date;(bb)not less than 4 percent of the purchase price of the property securing the loan, if such purchase occurs during the period that begins 1 year after the system certification date and ends less than 2 years after the system certification date;(cc)not less than 4.5 percent of the purchase price of the property securing the loan, if such purchase occurs during the period that begins 2 years after the system certification date and ends less than 3 years after the system certification date; or(dd)not less than 5 percent of the purchase price of the property securing the loan, if such purchase occurs during any period after the period set forth in item (cc);(v)satisfies standards related to establishing title or marketability of title, as may be required by the Corporation, which standards may include the required purchase of title insurance on the property securing the loan;(vi)contains such terms and provisions with respect to insurance, property maintenance, repairs, alterations, payment of taxes, default, reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters, including matters that set forth terms and provisions for establishing escrow accounts, performing financial assessments, or limiting the amount of any payment made available under the loan as the Corporation may prescribe; and(vii)contains such other terms, characteristics, or underwriting criteria as the Corporation, in consultation with the Bureau of Consumer Financial Protection, may determine necessary or appropriate; or(B)a loan refinanced pursuant to the authority granted under section 305(i).(30)
Enterprise
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.(31)
Extremely low-income
The term extremely low-income means—(A)in the case of owner-occupied units, income not in excess of 30 percent of the median income of the area; and(B)in the case of rental units, income not in excess of 30 percent of the median income of the area, with adjustments for smaller and larger families, as determined by the Secretary of Housing and Urban Development.(32)
Federal Home Loan Bank
The term Federal Home Loan Bank means a bank established under the authority of the Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.).(33)
Federal Home Loan Bank System
The term Federal Home Loan Bank System means the Federal Home Loan Banks and the Office of Finance and any authorized subsidiary of one or more Federal Home Loan Banks.(34)
FHFA related terms
(A)
Federal Housing Finance Agency
The term Federal Housing Finance Agency shall mean—(i)prior to the agency transfer date, the Federal Housing Finance Agency established under section 1311 of the Safety and Soundness Act (12 U.S.C. 4511);(ii)on and after the agency transfer date but prior to the system certification date, the Federal Housing Finance Agency established within the Corporation under title IV; and(iii)on and after the system certification date, the Corporation.(B)
FHFA Director
The term FHFA Director has the same meaning as the term Director in section 401(1).(35)
Federal regulatory agencies
The term—(A)Federal regulatory agency means, individually, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Bureau of Consumer Financial Protection, the National Credit Union Administration, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Housing Finance Agency; and(B)Federal regulatory agencies means all of the agencies referred to in subparagraph (A), collectively.(36)
First loss position
The term first loss position means, with regard to a covered security—(A)either—(i)the fully-funded position to which any credit loss on such covered security resulting from the nonperformance of underlying mortgage loans will accrue and be absorbed, to the full extent of the holder’s interest in such position; or(ii)the guarantee provided by an approved guarantor or approved multifamily guarantor with respect to an eligible single-family mortgage loan, pool of eligible single-family mortgage loans, or a single-family covered security or eligible multifamily mortgage loan, pool of eligible multifamily mortgage loans, or a multifamily covered security, as applicable; and(B)the position or guarantee described under subparagraph (A), as applicable, which is required to absorb any initial credit loss on a covered security prior to the Corporation becoming obligated to make any payment of insurance in accordance with this Act.(37)
HUD-approved housing counseling agency
The term HUD-approved housing counseling agency means an agency certified by the Secretary of Housing and Urban Development under section 106(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)).(38)
Insured depository institution
The term insured depository institution means—(A)an insured depository institution, as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and(B)an insured credit union, as defined under section 101 of the Federal Credit Union Act (12 U.S.C. 1752).(39)
Issuer
For a noncovered security, the term issuer shall have the same meaning as under the Securities Act of 1933 (15 U.S.C. 77b) and the rules and regulations promulgated thereunder. The Platform shall not be deemed to be an issuer of noncovered securities for purposes of the Securities Act of 1933.(40)
Low-income
The term low-income means—(A)in the case of owner-occupied units, income not in excess of 80 percent of median income of the area; and(B)in the case of rental units, income not in excess of 80 percent of median income of the area, with adjustments for smaller and larger families, as determined by the Secretary of Housing and Urban Development.(41)
Market participant
The term market participant means any—(A)approved entity;(B)private market holder; and(C)member of the Securitization Platform.(42)
Median income
The term median income means, with respect to an area, the unadjusted median family income for the area, as determined and published annually by the Secretary of Housing and Urban Development.(43)
Mission-based nonprofit lender
The term mission-based nonprofit lender means an organization that—(A)is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986;(B)makes—(i)residential real estate loans for the purpose of promoting or facilitating homeownership for poor or low- or moderate-income, disabled, or other disadvantaged persons or families; or(ii)real estate loans for the purpose of promoting or facilitating affordable rental housing for low-income persons or families and subject to any other additional criteria established by the Corporation;(C)sets interest rates on such loans that—(i)are lower than the bank prime loan rate, as determined under the Federal Reserve Statistical Release of selected interest rates (commonly referred to as the H.15) by the Board of Governors of the Federal Reserve System, for the last day of the most recent weekly release of such rates; or(ii)are, after adjusting for inflation, no-interest loans or loans with interest rates at or below the interest rates for mortgage loans generally available in the market;(D)except as described under subparagraph (B), does not engage in the business of a mortgage originator or mortgage broker;(E)conducts its activities in a manner that serves public or charitable purposes;(F)receives funding and revenue and charges fees in a manner that does not incentivize the organization or its employees to act other than in the best interests of its clients;(G)compensates employees in a manner that does not incentivize employees to act other than in the best interests of its clients; and(H)meets such other requirements as the Corporation determines appropriate.(44)
Moderate-income
The term moderate-income means(A)in the case of owner-occupied units, income not in excess of median income of the area; and(B)in the case of rental units, income not in excess of median income of the area, with adjustments for smaller and larger families, as determined by the Secretary of Housing and Urban Development.(45)
Mortgage aggregator
The term mortgage aggregator means a person that—(A)arranges, in connection with a single-family covered security, a credit-risk sharing mechanism that is approved by the Corporation pursuant to section 302;(B)issues such single-family covered security through the Securitization Platform;(C)does not originate eligible single-family mortgage loans; and(D)is not affiliated with a person that actively engages in the business of originating eligible single-family mortgage loans.(46)
Mortgage-backed security
The term mortgage-backed security means an asset-backed security, as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), that is collateralized by—(A)a mortgage loan, including any residential real estate loan or commercial real estate loan; or(B)a collateralized mortgage obligation of mortgage-backed securities.(47)
Mortgage originator
The term mortgage originator has the same meaning as in section 103(cc)(2) of the Truth in Lending Act (15 U.S.C. 1602(cc)(2)).(48)
Multifamily business
The term multifamily business means the activities and processes of the enterprises of—(A)purchasing, selling, lending on the security of, or otherwise dealing in multifamily mortgage loans;(B)securitizing a pool of multifamily mortgage loans; and(C)issuing multifamily securities.(49)
Multifamily covered security
The term multifamily covered security means a multifamily mortgage-backed security—(A)collateralized by eligible multifamily mortgage loans; and(B)that is insured by the Corporation pursuant to section 303.(50)
Multifamily mortgage-backed security
The term multifamily mortgage-backed security means a mortgage-backed security collateralized by commercial real estate loans secured by properties with 5 or more residential units in accordance with the requirements of this Act.(51)
Noncovered security
The term noncovered security means any mortgage-backed security other than a covered security.(52)
Noneligible mortgage loan
The term noneligible mortgage loan means any mortgage loan other than an eligible mortgage loan.(53)
Office of Finance
The term Office of Finance means the Office of Finance in the Federal Home Loan Bank System.(54)
Permanently affordable homeownership program
The term permanently affordable homeownership program includes programs administered by community land trusts, nonprofit organizations, or State or local governments that—(A)use a ground lease, deed restriction, subordinate loan, or similar legal mechanism to—(i)make real property affordable to low- or moderate-income borrowers; and(ii)stipulate a preemptive option to purchase the real property from the homeowner at resale to preserve the affordability of the real property for successive low- and moderate-income borrowers;(B)monitor properties to ensure affordability is preserved over resales; and(C)support homeowners to promote successful homeownership and prevent foreclosure.(55)
Person
The term person means an individual, corporation, company (including a limited liability company or joint stock company), association (incorporated or unincorporated), mutual or cooperative organization, partnership, trust, estate, society, or any other legal entity.(56)
Platform; Securitization Platform
The terms Platform and Securitization Platform mean the securitization infrastructure established under part I of subtitle C of title III.(57)
Platform Directors
The term Platform Directors means the board of directors of the Securitization Platform.(58)
Platform security
The term Platform security means a mortgage-backed security issued through the Securitization Platform.(59)
Private label mortgage-backed securities market
The term private label mortgage-backed securities market means the market in which noncovered securities are issued, bought, and sold.(60)
Private market holder
The term private market holder means the holder or holders, other than an approved guarantor or an approved multifamily guarantor, of the first loss position with respect to eligible mortgage loans collateralizing any covered security insured in accordance with this Act.(61)
Regulated entity
The term regulated entity means—(A)the Federal National Mortgage Association and any affiliate thereof;(B)the Federal Home Loan Mortgage Corporation and any affiliate thereof;(C)any Federal Home Loan Bank; and(D)the Securitization Platform.(62)
Residential real estate loan
The term residential real estate loan includes any—(A)real estate mortgage loan;(B)personal property loan secured solely by the home itself;(C)hybrid land-home loan for a manufactured home, as defined in section 603(6) of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6)), to which the requirements of paragraph (29)(A)(v) shall not apply; and(D)mortgage loan secured by real property in a community land trust or permanently affordable homeownership program.(63)
Safety and Soundness Act
The term Safety and Soundness Act means the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.).(64)
Senior Preferred Stock Purchase Agreement
The term Senior Preferred Stock Purchase Agreement means—(A)the Amended and Restated Senior Preferred Stock Purchase Agreement, dated September 26, 2008, as such Agreement has been amended on May 6, 2009, December 24, 2009, and August 17, 2012, respectively, and as such Agreement may be further amended and restated, entered into between the Department of the Treasury and each enterprise, as applicable; and(B)any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of an enterprise issued or sold pursuant to such Agreement.(65)
Single-family activities
The term single-family activities means the activities and processes of the Corporation in providing insurance for single-family covered securities as provided in this Act.(66)
Single-family covered security
The term single-family covered security means a single-family mortgage-backed security—(A)collateralized by eligible single-family mortgage loans; and(B)that is insured by the Corporation pursuant to section 303.(67)
Small mortgage lender
The term small mortgage lender means a community bank, credit union, mid-sized bank, non-depository institution, Community Development Financial Institution, mission-based nonprofit lender, or housing finance agency that originates residential real estate loans or commercial real estate loans.(68)
Standardized covered security; standardized security for single-family covered securities
The terms standardized covered security and standardized single-family covered security mean a single-family covered security that is—(A)issued through the Platform; and(B)in a form, and includes the standardized and uniform terms for the security and transaction that have been, developed by the Platform Directors and approved by the Corporation for use across various issuances.(69)
Standardized noncovered security; standardized security for single-family noncovered securities
The terms standardized noncovered security and standardized single-family noncovered security mean a single-family noncovered security that is—(A)issued through the Platform; and(B)in a form, and includes the standardized and uniform terms for the security and transaction that have been, developed by the Platform Directors for use across various issuances.(70)
State
The term State means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands or any Federally recognized Indian tribe, as defined by the Secretary of the Interior under section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a–1(a)).(71)
System certification date
The term system certification date means the date on which the Board of Directors certifies that the requirements of section 601 have been met.(72)
Very low-income
(A)
In general
The term very low-income means—(i)in the case of owner-occupied units, families having incomes not greater than 50 percent of the median income of the area; and(ii)in the case of rental units, families having incomes not greater than 50 percent of the median income of the area, with adjustments for smaller and larger families, as determined by the Secretary of Housing and Urban Development.(B)
Rule of construction
For purposes of the Housing Trust Fund established under section 1338 of the Safety and Soundness Act (12 U.S.C. 4568), the Capital Magnet Fund established under section 1339 of the Safety and Soundness Act (12 U.S.C. 4569), and the Market Access Fund established under section 504, the term very low-income means—(i)in the case of owner-occupied units, income in excess of 30 percent but not greater than 50 percent of the median income of the area; and(ii)in the case of rental units, income in excess of 30 percent but not greater than 50 percent of the median income of the area, with adjustments for smaller and larger families, as determined by the Secretary of Housing and Urban Development.
<enum>I</enum><header>Elimination of Fannie Mae and Freddie Mac</header><section id="id70b60fdcbdf545ad918d80f53917c94b"><enum>101.</enum><header>Elimination of Fannie Mae and Freddie Mac</header><subsection id="ide3bb0501a64947bca21dc2da9b7330f2"><enum>(a)</enum><header>Fannie Mae</header><text>Effective on the agency transfer date, the Corporation shall take all steps necessary to dissolve and eliminate the Federal National Mortgage Association pursuant to the provisions of this Act. The charter for the Federal National Mortgage Association shall be repealed pursuant to title VI.</text></subsection><subsection id="id64605c88c0b84759886620fc028eb8bf"><enum>(b)</enum><header>Freddie Mac</header><text>Effective on the agency transfer date, the Corporation shall take all steps necessary to dissolve and eliminate the Federal Home Loan Mortgage Corporation pursuant to the provisions of this Act. The charter for the Federal Home Loan Mortgage Corporation shall be repealed pursuant to title VI.</text></subsection></section><enum>II</enum><header>Federal Mortgage Insurance Corporation</header><section id="idFB664B0D1A8742DC96EE02FA47FE98FE"><enum>201.</enum><header>Establishment</header><subsection id="id3dc6714270eb4d5ca17520ff8ccb9edf"><enum>(a)</enum><header>Establishment</header><text>Effective on the agency transfer date, there is established the Federal Mortgage Insurance Corporation, which is charged with ensuring the safety and soundness of, and compliance with laws and regulations, fair access to financial services, and fair treatment of customers by the institutions and other persons subject to its jurisdiction and which shall have the powers hereinafter granted.</text></subsection><subsection id="idd3955fefeb8f415e9741ed1b1ad93bb6"><enum>(b)</enum><header>Purpose</header><text>The purpose of the Corporation shall be to—</text><paragraph id="idd454fb70be844498a98f74910045b425"><enum>(1)</enum><text>facilitate a liquid, transparent, and resilient single-family and multifamily mortgage credit market by supporting a robust secondary mortgage market, including during the transition to the new housing finance system;</text></paragraph><paragraph id="id1a9cae40f8e046479637aadfdbc8fa86"><enum>(2)</enum><text>provide insurance on any mortgage-backed security that satisfies the requirements under this Act to become a covered security;</text></paragraph><paragraph id="id826f5c906ca04f6d83a8e27d38db2e94"><enum>(3)</enum><text>monitor and supervise approved entities to the extent provided in this Act;</text></paragraph><paragraph id="id49b30a985b53427b9b1d95877ce756ed"><enum>(4)</enum><text>supervise the regulated entities;</text></paragraph><paragraph id="id2b0468f9c6a645ea9b66ed6784d71b78"><enum>(5)</enum><text>facilitate the broad availability of mortgage credit and secondary mortgage market financing through fluctuations in the business cycle for eligible single-family and multifamily lending across all—</text><subparagraph id="idD226958FE43B488F9D89F12E11EC000F"><enum>(A)</enum><text>regions;</text></subparagraph><subparagraph id="id2F51C971ED974882AB4A8385A85704FB"><enum>(B)</enum><text>localities;</text></subparagraph><subparagraph id="id199B3B6F9050471BAE5BC33F9BF9932E"><enum>(C)</enum><text>institutions;</text></subparagraph><subparagraph id="id8EF1971F9772461CBBB462B692BCB3F3"><enum>(D)</enum><text>property types, including housing serving renters; and</text></subparagraph><subparagraph id="idF446ED1EFDDF4488B5A5417E70EE9EAA"><enum>(E)</enum><text>eligible borrowers;</text></subparagraph></paragraph><paragraph id="id606EB1D064DE46018D9D8535F1FF019E"><enum>(6)</enum><text>ensure continued, widespread availability of an affordable, long-term, fixed rate, prepayable mortgage, such as a 30-year fixed rate mortgage; and</text></paragraph><paragraph id="id11BDEF4B98BE4E3F9E5D8617B678CEA6"><enum>(7)</enum><text>preserve and maintain a liquid forward execution market for eligible single-family mortgage loans and single-family covered securities, such as the To-Be-Announced market.</text></paragraph></subsection><subsection id="id7a5e67d756e646309de3c91eea626a31"><enum>(c)</enum><header>General supervisory and regulatory authority</header><paragraph id="id1e2f2c8885c54ce9bf222c1b665f141b"><enum>(1)</enum><header>In general</header><text>Each approved entity shall, to the extent provided in this Act, be subject to the supervision and regulation of the Corporation.</text></paragraph><paragraph id="idfddd362bdcbd4fffa6da9f8c8e14b024"><enum>(2)</enum><header>Regulated entities; Office of Finance</header><text>The Corporation shall have general regulatory authority over each regulated entity and the Office of Finance, and shall exercise such general regulatory authority to ensure that the purposes of this Act, any amendments made by this Act, and any other applicable law as to which the Corporation has responsibility under this Act are carried out.</text></paragraph></subsection><subsection id="id07e4918d9d8b447cb1cc5c1fd8bdddfd"><enum>(d)</enum><header>Federal status</header><text>The Corporation shall be an independent agency and an instrumentality of the Federal Government.</text></subsection><subsection id="id33b76aa5f9bf452193a4cfb26462601d"><enum>(e)</enum><header>Succession</header><text>The Corporation shall have succession until dissolved by an Act of Congress.</text></subsection><subsection id="id677e55885159444d85db19b27013c35e"><enum>(f)</enum><header>Principal office</header><text>The Corporation shall maintain its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof.</text></subsection><subsection id="ida5691067e8f5458e8cc67368d6b659b9"><enum>(g)</enum><header>Authority to establish other offices</header><text>The Corporation may establish such other offices in such other place or places as the Corporation may deem necessary or appropriate in the conduct of its business.</text></subsection><subsection id="idacebcde5478e4be9b020868633d0a606"><enum>(h)</enum><header>Prohibition</header><text>The Corporation shall not engage in mortgage loan origination.</text></subsection></section><section id="id38DAD16B117F4FD4A349E5EE1AA2815F"><enum>202.</enum><header>Management of Corporation</header><subsection id="id3961f5fa192340bb9ae4e9a3e2b6affa"><enum>(a)</enum><header>Board of Directors</header><paragraph id="id0b72f0e104c44c6786f2d71038a78d9a"><enum>(1)</enum><header>Members</header><text>The management of the Corporation shall be vested in a Board of Directors consisting of 5 members who shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who—</text><subparagraph id="id6645d4eec68f45a1b2f5043cde3830ff"><enum>(A)</enum><text>are citizens of the United States; and</text></subparagraph><subparagraph id="id3f38ff9466be4fc7b89d2931f33004bd"><enum>(B)</enum><text>have demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working in, housing and housing finance.</text></subparagraph></paragraph><paragraph id="id2622b663e2f442569028b0dd249f5bfa"><enum>(2)</enum><header>Political affiliation</header><text>Not more than 3 of the members of the Board of Directors may be members of the same political party.</text></paragraph><paragraph id="idb0db206207cd411cada50df7399e26f8"><enum>(3)</enum><header>Duties</header><text>The Board of Directors shall advise the Chairperson regarding overall strategies and policies to carry out the duties and purposes of this Act.</text></paragraph></subsection><subsection id="id61b698563b3b4ae19c965582c8c12f0d"><enum>(b)</enum><header>Chairperson and Vice Chairperson</header><paragraph id="idb64a5a996f84463abd1a76a506bb2be7"><enum>(1)</enum><header>Chairperson</header><subparagraph id="id246e7b4334de44f0884b6a143ff4dcdb"><enum>(A)</enum><header>Designation</header><text>1 of the members appointed pursuant to subsection (a)(1) shall be designated by the President to serve as Chairperson of the Board of Directors.</text></subparagraph><subparagraph id="ide2f7a6207ee845cfa5bd8fb2d1f9d5e4"><enum>(B)</enum><header>Term</header><text>Except as provided in subsection (c)(1)(A), the Chairperson shall be appointed for a term of 5 years, unless removed before the end of such term by the President under subparagraph (C).</text></subparagraph><subparagraph id="id5bb7183e15324125a3182474244800e9"><enum>(C)</enum><header>Removal for cause</header><text>The President may remove the Chairperson for inefficiency, neglect of duty, or malfeasance in office.</text></subparagraph><subparagraph id="id7a6a9464a5b1443ca52215a4a8693a69"><enum>(D)</enum><header>Duties and authorities</header><clause id="ide9e8f9195d2840ddabfab59011b1101f"><enum>(i)</enum><header>In general</header><text>The Chairperson—</text><subclause id="id41497d5313974cb7be9dd418c474d034"><enum>(I)</enum><text>shall—</text><item id="id85fa5a9de2a24bccae105bd5d928ba30"><enum>(aa)</enum><text>be the active executive officer of the Corporation, subject to supervision by the Board of Directors;</text></item><item id="idbfd9fbdbf24d4338986b06aae379787b"><enum>(bb)</enum><text>oversee the prudential operations of each regulated entity; and</text></item><item id="idd2bd4ac2b7ac49309a82ca1632145564"><enum>(cc)</enum><text>ensure that each approved entity and regulated entity operates in a safe and sound manner, including—</text><subitem id="id85a1264d67924f2a8fdf026663c1e05d"><enum>(AA)</enum><text>through the maintenance of adequate capital, standards, and internal controls; and</text></subitem><subitem id="id43a46af3c1a44205a884c665903a09ac"><enum>(BB)</enum><text>by ensuring compliance with the rules, regulations, guidelines, and orders issued pursuant to this Act; and</text></subitem></item></subclause><subclause id="id961fca144fc540bd9c9e4396c1254ef0"><enum>(II)</enum><text>may exercise such incidental powers as may be necessary or appropriate to assist the Corporation in fulfilling the duties and responsibilities of the Corporation in the supervision and regulation of each approved entity and regulated entity.</text></subclause></clause><clause id="idbddfaf22eea046f5ad749f01f88a594b"><enum>(ii)</enum><header>Delegation</header><text>The Chairperson may delegate to officers and employees of the Corporation any of the functions, powers, or duties of the Chairperson, as the Chairperson considers appropriate.</text></clause></subparagraph></paragraph><paragraph id="idedcb9f22f6da429a84398d12589bcfcc"><enum>(2)</enum><header>Vice Chairperson</header><subparagraph id="id366b156a62464fa5ac246722b08f6fd4"><enum>(A)</enum><header>Designation</header><text>1 of the members appointed pursuant to subsection (a)(1) shall be designated by the President to serve as Vice Chairperson of the Board of Directors.</text></subparagraph><subparagraph id="id7a197e00eefd44ce9f8e7f4211ecfc21"><enum>(B)</enum><header>Term</header><text>Except as provided in subsection (c)(1)(B), the Vice Chairperson shall be appointed for a term of 5 years, unless removed before the end of such term by the President under subparagraph (C).</text></subparagraph><subparagraph id="idfd0e9ebc2c3a41cbbd3fbb1d0220502d"><enum>(C)</enum><header>Removal for cause</header><text>The President may remove the Vice Chairperson for inefficiency, neglect of duty, or malfeasance in office.</text></subparagraph></paragraph><paragraph id="id08fc43d157f848328d00528fef1fe902"><enum>(3)</enum><header>Acting Chairperson</header><subparagraph id="id56f889fc6eee4ff899ab6e2e4c9af1b9"><enum>(A)</enum><header>During vacancy in the position of Chairperson</header><text>Except as provided in section 402, in the event of a vacancy in the position of Chairperson of the Board of Directors or during the absence or disability of the Chairperson, the Vice Chairperson shall act as Chairperson.</text></subparagraph><subparagraph id="id12fe5ca1cc1143e1b93423ccc3e72a25"><enum>(B)</enum><header>During vacancies in the position of Chairperson and Vice Chairperson</header><text>Except as provided in section 402, in the event of vacancies in the positions of Chairperson and Vice Chairperson, or during the absence or disability of both the Chairperson and the Vice Chairperson, the President shall designate 1 of the other members appointed pursuant to subsection (a)(1) as Acting Chairperson.</text></subparagraph><subparagraph id="id2e1f4f8d250e41b5b3e25f6315e10a98"><enum>(C)</enum><header>Retention of authority</header><text>Any person confirmed to serve as Chairperson, or acting as Chairperson, whether designated to act as such by the President under this paragraph or acting in such capacity by operation of this paragraph or section 402, shall for the period that such person is serving as Chairperson or acting as Chairperson—</text><clause id="id18e04ab35ecf48afbfa2c69d4c2a2a4d"><enum>(i)</enum><text>act for all purposes as the Chairperson; and</text></clause><clause id="id41911b70c54140b8bf395ae329f561c5"><enum>(ii)</enum><text>have all the rights, duties, powers, and responsibilities of the Chairperson.</text></clause></subparagraph></paragraph></subsection><subsection id="id5fc789a1a41e4c009aed8a8b2d5146ad"><enum>(c)</enum><header>Staggered terms; term continuation</header><paragraph id="id84fa084c544d47baad6bcbc1dee0d40a"><enum>(1)</enum><header>Terms</header><subparagraph id="id1ccb2cabf3c34557a3b0667a77dcd009"><enum>(A)</enum><header>Term of initial Chairperson</header><text>The initial member of the Board of Directors appointed pursuant to subsection (a)(1) and designated as Chairperson under subsection (b)(1) shall serve a term of 30 months.</text></subparagraph><subparagraph id="idb82a95518c6b47eaaf9b91cdfcbfa25e"><enum>(B)</enum><header>Term of initial Vice Chairperson</header><text>The initial member of the Board of Directors appointed pursuant to subsection (a)(1) and designated as Vice Chairperson under subsection (b)(2) shall serve a term of 30 months.</text></subparagraph><subparagraph id="id188489a9dc484a96be97b12cbe10ee1c"><enum>(C)</enum><header>Term of other appointed members</header><text>1 of the other initial members of the Board of Directors appointed pursuant to subsection (a)(1) and not designated as Chairperson or Vice Chairperson under subsection (b) shall serve a term of 30 months and the other 2 initial members shall serve a term of 4 years.</text></subparagraph><subparagraph id="id6dc60468896b4231a4bf27fd52e7cd2f"><enum>(D)</enum><header>All other terms</header><text>After the expiration of the initial terms under subparagraphs (A) through (C), all subsequent members of the Board of Directors appointed pursuant to subsection (a)(1) shall serve for a term of 5 years.</text></subparagraph></paragraph><paragraph id="id6c240a39655648829fa0b5295ecd9299"><enum>(2)</enum><header>Continuation of service</header><text>Each member of the Board of Directors appointed pursuant to subsection (a)(1), including any member appointed to serve as Chairperson or Vice Chairperson, may continue to serve after the expiration of the term of office to which such member was appointed until the expiration of the next session of Congress subsequent to the expiration of said fixed term of office.</text></paragraph></subsection><subsection id="ide3c072991ec04f80a45e76e88ac2dc34"><enum>(d)</enum><header>Vacancy; manner of fulfillment</header><text>Any vacancy on the Board of Directors shall be filled in the manner in which the original appointment was made, and the person appointed to fill such vacancy shall be appointed only for the remainder of such term.</text></subsection><subsection id="idfe81879f9ba94fe6a7003d710e321a89"><enum>(e)</enum><header>Compensation of members</header><paragraph id="idcb8535d9c9e94c92bc743b72d5450c02"><enum>(1)</enum><header>Chairperson</header><text>The Chairperson shall receive compensation at the rate prescribed for Level II of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5313">section 5313</external-xref> of title 5, United States Code.</text></paragraph><paragraph id="id3bc36bc6fadc47f28e40b10073cb33e7"><enum>(2)</enum><header>Other appointed members</header><text>All members of the Board of Directors not described in paragraph (1) shall receive compensation at the rate prescribed for Level III of the Executive Schedule under section 5314 of title 5, United States Code.</text></paragraph></subsection><subsection id="id3cf3dccba8574116a73d4e6e45c75d30"><enum>(f)</enum><header>Ineligibility for other offices during service; postservice restriction</header><paragraph id="idb5a3d9fe80314754b4164b7a819a16a3"><enum>(1)</enum><header>Restrictions during service</header><text>No member of the Board of Directors may, during the time such member is serving in such capacity and for the 2-year period beginning on the date such member ceases to serve as a member of the Board of Directors—</text><subparagraph id="idd38972e2092a436b981fc0e3a91808b6"><enum>(A)</enum><text>be an officer, employee, or director of any—</text><clause id="id163d064ebf3142c59bbdc13b53cdca6f"><enum>(i)</enum><text>insured depository institution;</text></clause><clause id="id8fe24a9988e544f9bba30f39dfde905a"><enum>(ii)</enum><text>insured depository institution holding company;</text></clause><clause id="id28083adadd7f4001841361d74f90321c"><enum>(iii)</enum><text>Federal Reserve bank;</text></clause><clause id="id0fb61b6f12844e018cef440a6a58ee92"><enum>(iv)</enum><text>regulated entity;</text></clause><clause id="idd1014a5d23064dcdafac539e5d52b436"><enum>(v)</enum><text>approved entity; or</text></clause><clause id="id366abdf624e6448a84eaa8524063dea2"><enum>(vi)</enum><text>non-bank financial institution or company that originates eligible mortgage loans; or</text></clause></subparagraph><subparagraph id="idff00af8193f94bcda5631e4041350b50"><enum>(B)</enum><text>hold stock or have beneficial ownership in any—</text><clause id="id4cc698d5000244ab95415597fbab0bd4"><enum>(i)</enum><text>insured depository institution;</text></clause><clause id="id7cde9d972379450d956527308a8c8fa8"><enum>(ii)</enum><text>insured depository institution holding company;</text></clause><clause id="id5902ecdad59c4d1bb95f773b518f2308"><enum>(iii)</enum><text>regulated entity;</text></clause><clause id="id057cb08f69a24921bf230546c05b181f"><enum>(iv)</enum><text>approved entity; or</text></clause><clause id="idde6402bd799e46c48d1fd9562d245429"><enum>(v)</enum><text>non-bank financial institution or company that originates eligible mortgage loans.</text></clause></subparagraph></paragraph><paragraph id="id5a452157be4f4c8a82ba2a2a74eba319"><enum>(2)</enum><header>Certification</header><text>Upon taking office, each member of the Board of Directors shall certify under oath that such member has complied, and will comply, with this subsection and such certification shall be filed with the secretary of the Board of Directors.</text></paragraph></subsection><subsection id="id633f8aad96bc4920add0ef9929f12c53"><enum>(g)</enum><header>Status of directors, officers, and employees</header><paragraph id="id77a0e2f6978a40b4a98448bef8a0550a"><enum>(1)</enum><header>In general</header><text>A member of the Board of Directors, officer, or employee of the Corporation has no liability under the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C. 77b et seq.</external-xref>) with respect to any claim arising out of or resulting from any act or omission by such person within the scope of such person’s employment in connection with any transaction involving the disposition of assets (or any interests in any assets or any obligations backed by any assets) by the Corporation. This subsection shall not be construed to limit personal liability for criminal acts or omissions, willful or malicious misconduct, acts or omissions for private gain, or any other acts or omissions outside the scope of such person’s employment.</text></paragraph><paragraph id="id070af45859dd4c279c4555f51f502f31"><enum>(2)</enum><header>Effect on other law</header><text>This subsection does not affect—</text><subparagraph id="id14bc1229bfba4700adc350ea48c4507d"><enum>(A)</enum><text>any other immunities and protections that may be available to such person under applicable law with respect to such transactions; or</text></subparagraph><subparagraph id="idf58066f2e5fc43699ed897620ebc3ef6"><enum>(B)</enum><text>any other right or remedy against the Corporation, against the United States under applicable law, or against any person other than a person described in paragraph (1) participating in such transactions.</text></subparagraph></paragraph><paragraph id="idc47c147ab41d4ae69f5ecf7f1e524494"><enum>(3)</enum><header>Rule of construction</header><text>This subsection shall not be construed to limit or alter in any way the immunities that are available under applicable law for Federal officials and employees not described in this subsection.</text></paragraph></subsection><subsection id="idf889924c796b40a081f1e91702714f84"><enum>(h)</enum><header>Independence</header><paragraph id="id22b945d5c04a49d691eb161f1db89e66"><enum>(1)</enum><header>In general</header><text>Each member of the Board of Directors shall be independent in performing his or her duties.</text></paragraph><paragraph id="id8f011083da5d44b29488b0134392c425"><enum>(2)</enum><header>Independence determination</header><text>In order to be considered independent for purposes of this subsection, a member of the Board of Directors—</text><subparagraph id="id407b159c52234abdb2aa26e243f07e9d"><enum>(A)</enum><text>may not, other than in his or her capacity as a member of the Board of Directors or any committee thereof—</text><clause id="idcc851a1a6ba64a58896e351a8d05d67d"><enum>(i)</enum><text>accept any consulting, advisory, or other compensatory fee from the Corporation; or</text></clause><clause id="id5561ae4b0bf845619a01852b508e16f1"><enum>(ii)</enum><text>be a person associated with the Corporation or with any affiliate of the Corporation; and</text></clause></subparagraph><subparagraph id="idb0b8eaad33424563a02a4bc62ba8da6e"><enum>(B)</enum><text>shall be disqualified from any deliberation involving any transaction of the Corporation in which the member has a financial interest in the outcome of the transaction.</text></subparagraph></paragraph></subsection><subsection id="id32ac3730ebfe45fe8e1458fb5aa3e1f0"><enum>(i)</enum><header>Administration</header><text>Except as may be otherwise provided in this Act, the Board of Directors shall administer the affairs of the Corporation fairly and impartially and without discrimination.</text></subsection><subsection id="id3ea3413be94445d69bb186cd688624a1"><enum>(j)</enum><header>Voting</header><text>A majority vote of all members of the Board of Directors is necessary to resolve all voting issues of the Corporation.</text></subsection><subsection id="id2e17c9ffe31547c0b58a3bd964bc97c1"><enum>(k)</enum><header>Meetings</header><text>The Board of Directors shall meet in accordance with the bylaws of the Corporation—</text><paragraph id="id9fd2959364b240a4a22431025cb62f13"><enum>(1)</enum><text>at the call of the Chairperson; and</text></paragraph><paragraph id="id9a6ddf144ca94d56a5f0d364e1102128"><enum>(2)</enum><text>not less frequently than once each quarter.</text></paragraph></subsection><subsection id="idc774954ef6a74c71a25a3afc563b767d"><enum>(l)</enum><header>Quorum</header><text>3 members of the Board of Directors then in office shall constitute a quorum.</text></subsection><subsection id="id7940cd669322433baa0d206686d12a17"><enum>(m)</enum><header>Bylaws</header><text>A majority of the members of the Board of Directors may amend the bylaws of the Corporation.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id187d69fb-1562-42b5-9829-accba9656efd"><enum>203.</enum><header>Advisory Committee</header><subsection id="idd6b525dc0e9349cdb09a658559b86fef"><enum>(a)</enum><header>Establishment</header><paragraph id="idd30d39bf8cc54398934450871c836e2c"><enum>(1)</enum><header>In general</header><text>The Corporation shall establish an Advisory Committee for the purpose of advising the Office of Consumer and Market Access and the Board of Directors on developments in the primary and secondary mortgage markets that have material effects on the ongoing mission of the Corporation.</text></paragraph><paragraph id="id82dca560d54740b796120f2ee68016e6"><enum>(2)</enum><header>Duties</header><text>The Advisory Committee shall provide advice and recommendations to the Office of Consumer and Market Access and the Board of Directors as to material developments in the following areas:</text><subparagraph id="id4134aa8bf9284f33a41edb901b5ef270"><enum>(A)</enum><text>Housing prices and affordability.</text></subparagraph><subparagraph id="ida24f8a174c0e4c0fbf5de81f43cd3b66"><enum>(B)</enum><text>The effectiveness of consumer protections in the housing market.</text></subparagraph><subparagraph id="id1fd1a9b6537e44409da86f2279aaf1b8"><enum>(C)</enum><text>Volume and characteristics of eligible mortgage loan originations.</text></subparagraph><subparagraph id="ida4d0337e80c34de8a13c9c2e8ee3e85a"><enum>(D)</enum><text>The condition of the rental housing market.</text></subparagraph><subparagraph id="id86d12bd883ef481e8aec4c0e2424237d"><enum>(E)</enum><text>Small lender participation in the secondary mortgage market.</text></subparagraph><subparagraph id="id3fafefe4b13f40e6a164d77f93a1c69c"><enum>(F)</enum><text>Access to credit in rural and underserved communities.</text></subparagraph><subparagraph id="idd775dd687a574f1fa6266979f8852b80"><enum>(G)</enum><text>Competition among approved entities.</text></subparagraph><subparagraph commented="no" id="id2DB53F3561144EEBAAB08F0C252966DE"><enum>(H)</enum><text>Fair, equitable, and nondiscriminatory access to mortgage credit for individuals and communities.</text></subparagraph></paragraph></subsection><subsection id="id05f217506afc4448b2ebbb598abbab6e"><enum>(b)</enum><header>Composition and qualifications</header><paragraph id="id0fae4423479a46d3bd2b8d5dfa544bee"><enum>(1)</enum><header>In general</header><text>The Advisory Committee shall be composed of 14 members as follows:</text><subparagraph id="id668cc602c9724c2ca7bcacb0c8b03bfd"><enum>(A)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working with, non-depository mortgage originators having less than $10,000,000,000 in total assets.</text></subparagraph><subparagraph id="id3d9d79fce0a2405f89260c3b1477f6c7"><enum>(B)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working with, credit unions having less than $10,000,000,000 in total assets.</text></subparagraph><subparagraph id="idec3c7879473a45649d8192bc252a0d86"><enum>(C)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working with, banks having less than $10,000,000,000 in total assets.</text></subparagraph><subparagraph id="id24d582b4a2ae49598abcd6ed7454abf1"><enum>(D)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience working with, banks having more than $500,000,000,000 in total assets.</text></subparagraph><subparagraph id="id1277a74b5759498fad0e905fcd7ca67f"><enum>(E)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocation, or regulatory experience working with, regional banks having more than $10,000,000,000 and less than $500,000,000,000 in total assets.</text></subparagraph><subparagraph id="id29d7114e45d0418e87951c8e5896caa1"><enum>(F)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience with private mortgage insurance.</text></subparagraph><subparagraph id="id459d55f8044e495eb7d728bed7314fbe"><enum>(G)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience with securitization.</text></subparagraph><subparagraph id="id9705d8d5f09546fe80d8b9f424240f91"><enum>(H)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, and practical, disciplinary, vocational, or regulatory experience with investor protection and institutional investors.</text></subparagraph><subparagraph id="idb0f9fa48b61449988ff1d7bf638ad4b5"><enum>(I)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, or practical, disciplinary, or vocational experience with consumer protection.</text></subparagraph><subparagraph id="id084bb849786f4b56b178ba362861785b"><enum>(J)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, or practical, disciplinary, or vocational experience with policies and programs to support sustainable homeownership.</text></subparagraph><subparagraph id="id351c235db4ff421e940910b68cda46c1"><enum>(K)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, or practical, disciplinary, or vocational experience with multifamily housing development.</text></subparagraph><subparagraph id="id3fc5b6fa31544ce2b35197d036240202"><enum>(L)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, or practical, disciplinary, or vocational experience with affordable rental housing.</text></subparagraph><subparagraph id="idac1ba970607c4acab552ab73e8b23640"><enum>(M)</enum><text>1 member who shall have a demonstrated technical, academic, or professional understanding of, or practical, disciplinary, or vocational experience with asset management.</text></subparagraph><subparagraph id="id182b9b92b2314e6e9b7845ee8e399b0f"><enum>(N)</enum><text>1 member who shall have a demonstrated professional understanding of and vocational experience with State bank, non-bank, or insurance regulation.</text></subparagraph></paragraph><paragraph id="id983b5fbec17f473eb97ee3dfaa3d6d94"><enum>(2)</enum><header>Experience with rural housing</header><text>Of the members of the Advisory Committee identified under subparagraphs (B) and (C) of paragraph (1), at least 1 shall be required to have practical, disciplinary, or vocational experience working in rural areas and with rural borrowers.</text></paragraph><paragraph commented="no" id="id16EF769C884A405E94CA0DCC8B208E07"><enum>(3)</enum><header>Experience with fair lending</header><text>Of the members of the Advisory Committee identified under paragraph (1), at least 1 shall be required to have demonstrated practical, academic, disciplinary, or vocational experience with fair lending practices and policies and programs that promote fair, equitable, and nondiscriminatory access to credit in underserved markets.</text></paragraph></subsection><subsection id="id392ace8d904d4e1cbb0b29315d8f9fde"><enum>(c)</enum><header>Member selection</header><text>Members of the Advisory Committee shall be appointed to the Committee by the Chairperson, subject to approval by a majority of the Board of Directors.</text></subsection><subsection id="idb856daf8eec04fd8bca59634269cfacf"><enum>(d)</enum><header>Meetings</header><text>The Advisory Committee shall meet no less frequently than once during each calendar quarter.</text></subsection></section><section id="id12333B05B11942BB87E0C527671B895F"><enum>204.</enum><header>Office of the Inspector General</header><subsection id="id3F28186543894247B4D608546836D1F5"><enum>(a)</enum><header>Office of Inspector General</header><paragraph id="id8DE4C254EFB648DC8A4E952BED88F445"><enum>(1)</enum><header>Establishment</header><text>On the agency transfer date, there is established the Office of the Inspector General of the Federal Mortgage Insurance Corporation.</text></paragraph><paragraph id="idCB27E454B6A140C4A65DBBBD4BFAB1DD"><enum>(2)</enum><header>Head of office</header><subparagraph id="id1B2BA58C4FD743489545075CB3E57E92"><enum>(A)</enum><header>In general</header><text>The head of the Office of the Inspector General of the Federal Mortgage Insurance Corporation shall be the Inspector General of the Federal Mortgage Insurance Corporation, who shall be appointed by the President, by and with the advice and consent of the Senate, in accordance with section 3(a) of the Inspector General Act of 1978 (5 U.S.C. App.).</text></subparagraph><subparagraph id="id10C245700102437D9BD1A98B95AFD8BF"><enum>(B)</enum><header>Transitional provision</header><text>Notwithstanding subparagraph (A), during the period beginning on the agency transfer date and ending on the date on which the Inspector General of the Federal Mortgage Insurance Corporation is confirmed, the person serving as the Inspector General or the Acting Inspector General for the Office of the Inspector General within the Federal Housing Finance Agency on the date that is 1 day prior to the agency transfer date shall act for all purposes as, and with the full powers of, the Inspector General of the Federal Mortgage Insurance Corporation.</text></subparagraph></paragraph><paragraph commented="no" id="id282b6e3ef0a84ecdb4760c7e8f972b3a"><enum>(3)</enum><header>Office of the Inspector General authorities</header><text>Beginning on the agency transfer date, the authority of the Office of the Inspector General of the Federal Mortgage Insurance Corporation shall include all rights and responsibilities of the Office of the Inspector General of the Federal Housing Finance Agency as such rights and responsibilities existed on the date that is 1 day prior to the agency transfer date.</text></paragraph></subsection><subsection id="idA84D994CC23F45009BD8B2A5195F8631"><enum>(b)</enum><header>Provision of property and facilities</header><text>The Chairperson shall provide the Office of the Inspector General of the Federal Mortgage Insurance Corporation with—</text><paragraph id="id517E9C185F334301B1ED241659B727EB"><enum>(1)</enum><text>appropriate and adequate office space at each central and field office location established by the Corporation, together with such equipment, office supplies, and communications facilities and services as may be necessary for the Inspector General of the Federal Mortgage Insurance Corporation to operate such offices; and</text></paragraph><paragraph id="idDA1A87E1C5EB4B8A9237A3A02BB9E83D"><enum>(2)</enum><text>the necessary maintenance services for—</text><subparagraph id="idE6D101E9F6614843B6D20553922157EA"><enum>(A)</enum><text>any office provided under paragraph (1); and</text></subparagraph><subparagraph id="idC1EEC63556B845B693AED75B5326F212"><enum>(B)</enum><text>the equipment and facilities located in any such office.</text></subparagraph></paragraph></subsection><subsection id="idB092729D4A314DA1AC587F83D3A7022B"><enum>(c)</enum><header>Hiring of employees, experts, and consultants</header><text>Notwithstanding paragraphs (7) and (8) of <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /6">section 6(a)</external-xref> of the Inspector General Act of 1978 (5 U.S.C. App.), the Inspector General of the Federal Mortgage Insurance Corporation may select, appoint, and employ such officers and employees as may be necessary—</text><paragraph id="idC96E53546F5F4EA0950C3BF8AC9A6E6B"><enum>(1)</enum><text>for carrying out the functions, powers, and duties of the Office of the Inspector General; and</text></paragraph><paragraph id="id14408CC7890F45AA960B7F4565F3BB68"><enum>(2)</enum><text>to obtain the temporary or intermittent services of experts or consultants or an organization of experts or consultants, subject to the applicable laws and regulations that govern such selections, appointments, and employment, and the obtaining of such services, within the Corporation.</text></paragraph></subsection><subsection id="id5FB998C935C44BFA8FA03720942D8749"><enum>(d)</enum><header>Submission of budget</header><paragraph id="id26580069F7CA41818CADDD93C8BD9BE7"><enum>(1)</enum><header>In general</header><text>For each fiscal year, the Inspector General of the Federal Mortgage Insurance Corporation shall transmit a budget estimate and request for funds to the Chairperson.</text></paragraph><paragraph id="idE6B6696D577A45329AA4C9C2BABF7A01"><enum>(2)</enum><header>Required content</header><text>The budget request required under paragraph (1) shall—</text><subparagraph id="id21F8E33D432B455BBA7A93A396CFF283"><enum>(A)</enum><text>specify—</text><clause id="id89E2692A68D548E6B45CD059D74BDB4D"><enum>(i)</enum><text>the aggregate amount of funds requested for such fiscal year for the operations of the Office of the Inspector General of the Federal Mortgage Insurance Corporation; and</text></clause><clause id="idC57318F2D01D455CB8338F09CBED571A"><enum>(ii)</enum><text>the amount requested for all training needs, including a certification from the Inspector General that the amount requested satisfies all training requirements for the Office of the Inspector General of the Federal Mortgage Insurance Corporation for that fiscal year; and</text></clause></subparagraph><subparagraph id="id594FF7174E2045B7963787D9AF6F63C4"><enum>(B)</enum><text>specifically—</text><clause id="idE6D9F3F9C32647F4A5F90EDCCE54FF5E"><enum>(i)</enum><text>identify and specify any resources necessary to support the Council of the Inspectors General on Integrity and Efficiency; and</text></clause><clause id="id02A3665A5FB24E51B95E7EE8399DC2CB"><enum>(ii)</enum><text>justify the need for any resources identified and specified under clause (i).</text></clause></subparagraph></paragraph></subsection><subsection id="id459E770A679B4D0F9632538174BBBD42"><enum>(e)</enum><header>Amendments to Inspector General Act of 1978</header><text>The Inspector General Act of 1978 (5 U.S.C. App.) is amended—</text><paragraph id="id46E3BEA2BB414CC5A4C9CDCD1367A5F4"><enum>(1)</enum><text>in section 6(e)(3), by inserting <quote>Federal Mortgage Insurance Corporation</quote> after <quote>Federal Emergency Management Agency</quote>;</text></paragraph><paragraph id="id438AADFD16BC4AAAB8177753E0783E93"><enum>(2)</enum><text>in section 8G(a)(2), by striking <quote>the Federal Housing Finance Board</quote>; and</text></paragraph><paragraph id="id5A464391344A4D0B8BAD2387F771E9EB"><enum>(3)</enum><text>in section 12—</text><subparagraph id="id49bd546cae924db99687d7266880c642"><enum>(A)</enum><text>in paragraph (1), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></subparagraph><subparagraph id="id9b44e43747ce4582b454a9a33daf122b"><enum>(B)</enum><text>in paragraph (2), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subparagraph></paragraph></subsection><subsection id="idF8F938CADECE4D3A824F64C522AE4492"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the agency transfer date.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id8BB3CAC04AD54F25A960756F7BD3972E"><enum>205.</enum><header>Staff, experts, and consultants</header><subsection id="ida07166e3d26a47019130451432eddff1"><enum>(a)</enum><header>Compensation</header><paragraph id="ida7cf6396c0aa40c288e16295c72a5644"><enum>(1)</enum><header>In general</header><text>The Board of Directors may appoint and fix the compensation of such officers, attorneys, economists, examiners, and other employees as may be necessary for carrying out the functions of the Corporation.</text></paragraph><paragraph id="id1c857a645494422784aff01b7e3f0cc5"><enum>(2)</enum><header>Rates of pay</header><text>Rates of basic pay and the total amount of compensation and benefits for all employees of the Corporation may be—</text><subparagraph id="id53942e2757e945c6ad643c8f731495a6"><enum>(A)</enum><text>set and adjusted by the Board of Directors without regard to the provisions of chapter 51 or subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United States Code; and</text></subparagraph><subparagraph id="id5936028e854d404f8f06826da5fca445"><enum>(B)</enum><text>reasonably increased, notwithstanding any limitation set forth in paragraph (3), if the Board of Directors determines such increases are necessary to attract and hire qualified employees.</text></subparagraph></paragraph><paragraph id="id72a83fe1cacc4a8cbaec90b78eb826f8"><enum>(3)</enum><header>Parity</header><text>The Board of Directors may provide additional compensation and benefits to employees of the Corporation, of the same type of compensation or benefits that are then being provided by any agency referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not then being provided, could be provided by such an agency under applicable provisions of law, rule, or regulation. In setting and adjusting the total amount of compensation and benefits for employees, the Board of Directors shall consult with and seek to maintain comparability with the agencies referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).</text></paragraph></subsection><subsection id="idf37e85c9e7f847f29f81bce622eee6ac"><enum>(b)</enum><header>Detail of government employees</header><text>Upon the request of the Board of Directors, any Federal Government employee may be detailed to the Corporation without reimbursement from the Corporation, and such detail shall be without interruption or loss of civil service status or privilege.</text></subsection><subsection id="id99ab842c83dd483ba2b0d59c606a28fd"><enum>(c)</enum><header>Experts and consultants</header><text>The Corporation may procure the services of experts and consultants as the Corporation considers necessary or appropriate.</text></subsection><subsection id="ida48463a2fa2b4696a1ced317746c22f5"><enum>(d)</enum><header>Technical and professional advisory committees</header><text>The Board of Directors may appoint such special advisory, technical, or professional committees as may be useful in carrying out the functions of the Corporation.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="idFCC2DEB20CB6469A977B24D4A67067B1"><enum>206.</enum><header>Reports; testimony; audits</header><subsection id="id046b428ad93d4bdea46856c448a2255e"><enum>(a)</enum><header>Reports</header><paragraph id="id35c92fe0e2004acaa73758e275230371"><enum>(1)</enum><header>In general</header><text>After the system certification date, the Corporation shall submit, on an annual basis, to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written report of its operations, activities, budget, receipts, and expenditures for the preceding 12-month period.</text></paragraph><paragraph id="id041e87a7b6464fa7ac3a3fbbd1fec1cf"><enum>(2)</enum><header>Contents of report</header><text>The report required under subsection (a) shall include—</text><subparagraph id="id6E69049D039C4B2998156E69B3AA143C"><enum>(A)</enum><text>an analysis of—</text><clause id="id730b6aa1d8ae4deabc03728e8ec78643"><enum>(i)</enum><text>with respect to the Mortgage Insurance Fund established under section 303(e)—</text><subclause id="id9e3588ba0d4a4d6280df1fc2542b91b5"><enum>(I)</enum><text>the current financial condition of the Mortgage Insurance Fund;</text></subclause><subclause id="idd2ee7c1c940246bfa3600ba75c898e7f"><enum>(II)</enum><text>the exposure of the Mortgage Insurance Fund to economic conditions and an analysis of any stress tests conducted with respect to the Fund;</text></subclause><subclause id="id86BA4DC47D4E4999B44D44FB8BF03FA6"><enum>(III)</enum><text>an estimate of the resources needed for the Mortgage Insurance Fund to achieve the purposes of this Act; and</text></subclause><subclause id="id661842b3c679480d9e245c0a0b819005"><enum>(IV)</enum><text>any findings, conclusions, and recommendations for legislative and administrative actions considered appropriate to the future activities of the Corporation;</text></subclause></clause><clause id="id3ed7bc54549d4852a52d8ab22d27f16b"><enum>(ii)</enum><text>whether or not the actual reserve ratio of the Mortgage Insurance Fund met—</text><subclause id="ida014738be604405889409ad2808fa83d"><enum>(I)</enum><text>the reserve ratio set for the preceding 12-month period; or</text></subclause><subclause id="id5e0d168b23c54a8fbedc34fba0a62661"><enum>(II)</enum><text>the reserve ratio goals established in section 303(e)(7);</text></subclause></clause><clause id="idc983ff5fde8249d8b60118a9a18e5e4e"><enum>(iii)</enum><text>the detailed plan of the Corporation to ensure that the goals set for the reserve ratio for the Mortgage Insurance Fund are met and maintained for the next 12-month period;</text></clause><clause id="id4e56ed89ae7847bf9c429497bc257d72"><enum>(iv)</enum><text>the state of the private label mortgage-backed securities market, including the submission of a reasonable set of administrative, regulatory, and legislative proposals on how to limit the Federal Government’s footprint in the secondary mortgage market;</text></clause><clause id="idC93E5B1ED0EC4D9D94CEDB6AAA3B13C5"><enum>(v)</enum><text>how and the extent to which the Corporation and the Small Lender Mutual established under section 315(a)(1) has fulfilled its obligations to ensure that community and mid-size banks, credit unions, and other small lenders have equitable and meaningful access to the secondary mortgage market; and</text></clause><clause id="id75640CDA088B48A2B5620165ACDFAF2A"><enum>(vi)</enum><text>the report required under section 208(b)(2)(B);</text></clause></subparagraph><subparagraph id="id6cf188cfe8294517b54bbe67e4766a84"><enum>(B)</enum><text>a discussion of the significant problems faced by consumers in shopping for or obtaining mortgage credit or services;</text></subparagraph><subparagraph id="id9fe770b2a0ff45af9bd017001e0dce70"><enum>(C)</enum><text>a justification of the Corporation’s budget for the preceding 12-month period;</text></subparagraph><subparagraph id="ided58a56e237140278a96ea9474943850"><enum>(D)</enum><text>a list of the significant rules and orders adopted by the Corporation, as well as other significant initiatives conducted by the Corporation, during the preceding 12-month period and the plan of the Corporation for rules, orders, or other initiatives to be undertaken during the next 12-month period;</text></subparagraph><subparagraph id="id510ccf50acc34be8b845d287cd072125"><enum>(E)</enum><text>a list, with a brief statement of the issues, of the public supervisory and enforcement actions to which the Corporation was a party during the preceding 12-month period;</text></subparagraph><subparagraph id="id15a57a48976f498497ec2ea91ee47693"><enum>(F)</enum><text>the actions of the Corporation taken regarding rules, orders, and supervisory actions with respect to covered entities; and</text></subparagraph><subparagraph id="idbcf22f6b77ff48ac8b0be325e28b93d3"><enum>(G)</enum><text>an assessment of significant actions by State attorneys general or State regulators relating to Federal law within the Corporation’s jurisdiction.</text></subparagraph></paragraph></subsection><subsection id="ide1e6a672ecdb4f6aa40a4174c17d6c2a"><enum>(b)</enum><header>Testimony</header><text>After the system certification date, the Chairperson shall appear annually before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives to provide testimony on the report submitted under subsection (a).</text></subsection><subsection id="id06525d890ab94a63957614f814e1240a"><enum>(c)</enum><header>Reports to the Office of Management and Budget</header><paragraph id="idbec0a70f6efb4f82b312adc1b5e0755c"><enum>(1)</enum><header>Financial operating plans and forecasts</header><text>The Corporation shall provide to the Director of the Office of Management and Budget copies of the—</text><subparagraph id="idEDCFC39D7AD74503B55182D0BEE11797"><enum>(A)</enum><text>Corporation’s financial operating plans and forecasts as prepared by the Corporation in the ordinary course of its operations; and</text></subparagraph><subparagraph id="id4119E20A06B04FD287685F6AE3A931A8"><enum>(B)</enum><text>quarterly reports of the Corporation’s financial condition and results of operations as prepared by the Corporation in the ordinary course of its operations.</text></subparagraph></paragraph><paragraph id="id99d3405340fa496b9353b77d845c2cf8"><enum>(2)</enum><header>Rule of construction</header><text>This subsection shall not be construed to—</text><subparagraph id="idB9B3AEAFF39140D594A4B6B8EBC9E72E"><enum>(A)</enum><text>require any obligation on the part of the Corporation to consult with, or obtain the consent or approval of, the Director of the Office of Management and Budget with respect to any reports, plans, forecasts, or other information referred to in paragraph (1); or</text></subparagraph><subparagraph id="id4843D1EC2EF3470C99DB722E00E9C563"><enum>(B)</enum><text>authorize any jurisdiction or oversight by the Director of the Office of Management and Budget over the affairs or operations of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id9fae028178b44d85a8f352dc9b87e142"><enum>(d)</enum><header>Audit</header><paragraph id="id25633bf8c63240f7ba53462335f87f74"><enum>(1)</enum><header>Annual audit</header><text>The Comptroller General of the United States shall annually audit—</text><subparagraph id="id2fa5d837d7f24788897e8f2aca2f4d6e"><enum>(A)</enum><text>the financial transactions of the Corporation; and</text></subparagraph><subparagraph id="ide42f777b2b9f4c058bae52161e11a41f"><enum>(B)</enum><text>the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="id0d58d73312ed40cbbb7c4f0bfc97a5f4"><enum>(2)</enum><header>Auditing standards</header><text>The audit required under this subsection shall be completed in accordance with the United States generally accepted government auditing standards as may be prescribed by the Comptroller General.</text></paragraph><paragraph id="id1624dc8b289346f5892f4fd2f9aa2ce5"><enum>(3)</enum><header>Place of audit</header><text>The audit required under this subsection shall be conducted at the place or places where accounts of the Corporation are normally kept.</text></paragraph><paragraph id="id381f02e6c16b4e1aac56990642667e80"><enum>(4)</enum><header>Access</header><text>Notwithstanding any other provision of law, upon request and in such reasonable form as the Comptroller General may request, the Comptroller General shall have access to—</text><subparagraph id="id83bf38457bdd4d49b95a396413183007"><enum>(A)</enum><text>any records, books, accounts, documents, reports, files, papers, property, or other information under the control of or used by the Corporation;</text></subparagraph><subparagraph id="id96a7b62bd8054da7836eb6a38d9cff95"><enum>(B)</enum><text>any records or other information under the control of a person or entity acting on behalf of or under the authority of the Corporation, to the extent that such records or other information are relevant to an audit required under this subsection; and</text></subparagraph><subparagraph id="id5b32018110a54ee1a19f927b94dc1534"><enum>(C)</enum><text>the officers, directors, employees, financial advisors, staff, working groups, and agents and representatives of the Corporation (relating to the activities on behalf of the Corporation of such agent or representative).</text></subparagraph></paragraph><paragraph id="id9831ed4a48db4632aed988c74e309f87"><enum>(5)</enum><header>Rule of construction</header><text>All records, books, accounts, documents, reports, files, papers, property, or other information referred to in paragraph (4) shall remain in the possession and custody of the Corporation.</text></paragraph><paragraph id="idff91bf4295c54d8783ab6605c8cc363e"><enum>(6)</enum><header>Copies</header><text>The Comptroller General may, as the Comptroller General considers appropriate, make and retain copies of the records, books, accounts, documents, reports, files, papers, property, or other information to which the Comptroller General is granted access under paragraph (3).</text></paragraph><paragraph id="idba1729a71d484075baf0620eb384353b"><enum>(7)</enum><header>Report</header><subparagraph id="idab434c70f77847969e3489526f8cb5cc"><enum>(A)</enum><header>Submission to Congress</header><text>The Comptroller General shall submit to Congress a report of each annual audit conducted under this subsection not later than six and one-half months following the close of the year covered by such audit.</text></subparagraph><subparagraph id="ide0b3619b0ca9410ea1129c167417e158"><enum>(B)</enum><header>Required content</header><text>The report required under subparagraph (A) shall—</text><clause id="id4bbf20fd68434efd940232eb9a716d9d"><enum>(i)</enum><text>set forth the scope of the audit; and</text></clause><clause id="idf47173eebc8947638a174adf8e88335d"><enum>(ii)</enum><text>include—</text><subclause id="ide5966803abb747088273cd6d5cd780d0"><enum>(I)</enum><text>the statement of assets and liabilities, as well as any surplus or deficit;</text></subclause><subclause id="ide94d127d211e4f5ab7263f64e579f5f4"><enum>(II)</enum><text>the statement of income and expenses;</text></subclause><subclause id="id899b22f3ae76444486e7919b9295d21f"><enum>(III)</enum><text>the statement of sources and application of funds;</text></subclause><subclause id="idf86c059faf0141f1b562c9960e38012d"><enum>(IV)</enum><text>such comments and information as the Comptroller General may deem necessary to inform Congress of the financial operations and condition of the Corporation and the Mortgage Insurance Fund, together with such recommendations with respect thereto as the Comptroller General may deem advisable; and</text></subclause><subclause id="idd38591a851ac4d3d9a89f33f2e6e8e5a"><enum>(V)</enum><text>a description of any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law.</text></subclause></clause></subparagraph><subparagraph id="idfbf09f62af8f48c4b9a98908563c33e5"><enum>(C)</enum><header>Copies</header><text>A copy of each report required under subparagraph (A) shall be furnished to the President and to the Chairperson at the time such report is submitted to Congress.</text></subparagraph></paragraph><paragraph id="id4618289f53ae492c8c1139efe936ae77"><enum>(8)</enum><header>Assistance and costs</header><subparagraph id="idc485f18422d248c89ca1a93987393c89"><enum>(A)</enum><header>Permitted use of outside assistance</header><text>For the purpose of conducting an audit under this subsection, the Comptroller General may employ by contract, without regard to section 3709 of the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/41/6101">41 U.S.C. 6101</external-xref>), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes.</text></subparagraph><subparagraph id="id8e5fae0171cb4786b1b2554d4b8d13e5"><enum>(B)</enum><header>Cost of audit covered by Corporation</header><clause id="idbd8464523c2b4008a23f0bb871269f9c"><enum>(i)</enum><header>In general</header><text>Upon the request of the Comptroller General, the Chairperson shall transfer to the Comptroller General from funds available the amount requested by the Comptroller General to cover the reasonable costs of any audit and report conducted by the Comptroller General pursuant to this subsection.</text></clause><clause id="id44fc0b99d7da4c08bcd8ebdaed7d560f"><enum>(ii)</enum><header>Credit of funds</header><text>The Comptroller General shall credit funds transferred under clause (i) to the account at the United States Treasury established for salaries and expenses of the Government Accountability Office, and such amounts shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report.</text></clause></subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idA0495541F0C04BB6AFF28B94556D64C6"><enum>207.</enum><header>Specific offices</header><subsection commented="no" display-inline="no-display-inline" id="idDD41789E821C46D2998F564AD9B92D56"><enum>(a)</enum><header>Establishment</header><paragraph commented="no" display-inline="no-display-inline" id="id0C0E6A6B094045D6B3CC1003534C7D41"><enum>(1)</enum><header>General authority</header><text>The Corporation—</text><subparagraph commented="no" display-inline="no-display-inline" id="id0492746CCB444D6798901478648FAA4E"><enum>(A)</enum><text>shall establish within the Corporation any office required to be established by this Act;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD5A8D540749A48F1B0B7BD24C446E8DB"><enum>(B)</enum><text>may establish such other offices or suboffices as are necessary and proper for the functioning of the Corporation; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id06979100BCA5410D964A467E44430980"><enum>(C)</enum><text>may eliminate or consolidate any office or suboffice established under subparagraph (B).</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id92F2C98A50A14A3D86AEDCC2BD328F9F"><enum>(2)</enum><header>Appointments</header><text>Except as may otherwise be specifically provided, the head of any office established pursuant to paragraph (1) shall be appointed by the Board of Directors.</text></paragraph></subsection><subsection id="id697371a2a77d4f30aa8cad75f790b964"><enum>(b)</enum><header>Underwriting</header><text>The Corporation shall establish an Office of Underwriting in the Corporation, whose functions shall include ensuring that eligible single-family mortgage loans that collateralize single-family covered securities insured under this Act comply with the requirements of this Act and minimize risk to the Mortgage Insurance Fund.</text></subsection><subsection id="id55753586b110433798b7d2834b0b2ba5"><enum>(c)</enum><header>Securitization</header><text>The Corporation shall establish an Office of Securitization in the Corporation, whose functions shall include—</text><paragraph id="idED133D45A448487288B49A7E61A5B1EF"><enum>(1)</enum><text>overseeing and supervising the Securitization Platform established under part I of subtitle C of title III; and</text></paragraph><paragraph id="ida37ae7b2341a403a9fbd132ca8bc296b"><enum>(2)</enum><text>ensuring that small mortgage lenders have equitable access to—</text><subparagraph id="idECEF2D3F412543838DBB43A09F357E70"><enum>(A)</enum><text>the Securitization Platform, including through the development and facilitation of options such as multi-guarantor pools and multi-lender pools of eligible single-family mortgage loans to be securitized and issued as single-family covered securities through such Platform; and</text></subparagraph><subparagraph id="id2A2878C895DE48B4B0D9788AD7246B68"><enum>(B)</enum><text>any small lender mutual established or approved under section 315.</text></subparagraph></paragraph></subsection><subsection id="id81b413c7b9db411ea2a946c58bc08bfd"><enum>(d)</enum><header>Federal Home Loan Banks</header><paragraph id="id87F38E4E1B314886918B9E5D32EB24C7"><enum>(1)</enum><header>In general</header><text>Upon the system certification date, the Corporation shall establish an Office of Federal Home Loan Bank Supervision in the Corporation, whose functions shall include—</text><subparagraph id="id40579d9f2f66494b8c36db0d11a44e2c"><enum>(A)</enum><text>overseeing, coordinating, and supervising the Federal Home Loan Banks and the Federal Home Loan Bank System;</text></subparagraph><subparagraph id="id8b1a0e2e34a1424ebadb4a88c6fb1f18"><enum>(B)</enum><text>supervising any authorized subsidiary of 1 or more Federal Home Loan Banks that is an approved aggregator pursuant to section 312(m), including with respect to the capitalization of any such subsidiary;</text></subparagraph><subparagraph id="id97b38d7b2c1449dda9dc45c75b741bba"><enum>(C)</enum><text>serving as the central point of coordination within the Corporation with respect to any regulations or regulatory actions relating to the role of a Federal Home Loan Bank, or subsidiary or joint office thereof, as a covered entity; and</text></subparagraph><subparagraph id="idca1e8d9ba7184835bcb3e2bdf8aba1a6"><enum>(D)</enum><text>monitoring whether any regulation or regulatory action taken with respect to a Federal Home Loan Bank, or subsidiary or joint office thereof, approved under section 312 in its role as a covered entity does not adversely impact the traditional liquidity and advance mission of the Federal Home Loan Banks and Federal Home Loan Bank System.</text></subparagraph></paragraph><paragraph id="id0866E0CB6F42434CB664A691DBD7FD9A"><enum>(2)</enum><header>Transfer of functions</header><text>Effective on the system certification date, there are transferred to the Office of Federal Home Loan Bank Supervision in the Corporation all functions of the Federal Housing Finance Agency of the Corporation relating to—</text><subparagraph id="id096A1E7AA5C7466BA87F93044E2D1EE7"><enum>(A)</enum><text>the supervision of the Federal Home Loan Banks and the Federal Home Loan Bank System; and</text></subparagraph><subparagraph id="id5176F102604D4BBBA089530ABB2F32F0"><enum>(B)</enum><text>all rulemaking authority of the Federal Housing Finance Agency of the Corporation relating to the Federal Home Loan Banks and the Federal Home Loan Bank System.</text></subparagraph></paragraph></subsection></section><section id="idB97C3069AEEE4087A26740A88EEE1390"><enum>208.</enum><header>Office of Consumer and Market Access</header><subsection id="id27BA729E271248ECBE8C4A9C8161E038"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Corporation shall establish an Office of Consumer and Market Access in the Corporation, whose functions shall include the responsibilities set forth under subsection (b).</text></subsection><subsection id="id2CB8DA06FD404266A5887C527AEA3A01"><enum>(b)</enum><header>Responsibilities</header><paragraph id="id006E1F4C60674BBBA4446F56AC972DEC"><enum>(1)</enum><header>Administering the Market Access Fund</header><text display-inline="yes-display-inline">The Office of Consumer and Market Access shall administer the Market Access Fund established under section 504.</text></paragraph><paragraph id="id39D2DA3FF7EF48F0A2FC14010E0608EF"><enum>(2)</enum><header>Monitoring, coordinating, and facilitating the needs of underserved markets</header><subparagraph id="id82609D7CBE884483BD1EDAD383625C4A"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Office of Consumer and Market Access shall—</text><clause id="id537DE0196E5E430C9FC4739B83253259"><enum>(i)</enum><text display-inline="yes-display-inline">monitor, on a macro level, the national, regional, and area single-family and multifamily housing finance markets to identify underserved markets, communities, and consumers in accordance with the market segments identified and defined under section 210;</text></clause><clause id="id8A12F0E664BE4B6C9383850AB473B1E4"><enum>(ii)</enum><text display-inline="yes-display-inline">coordinate with Federal and State agencies regarding existing policies and initiatives that address—</text><subclause id="id8CAD87A3546C4208AA90AD2B580E4498"><enum>(I)</enum><text display-inline="yes-display-inline">the housing needs of underserved markets, communities, and consumers; and</text></subclause><subclause id="id1ADDF3193C6D41FAB916CAD157403A6A"><enum>(II)</enum><text display-inline="yes-display-inline">the affordable housing needs of markets, communities, and consumers; and</text></subclause></clause><clause id="id5635A95BE2DA494CA2DECC6F79ABA24A"><enum>(iii)</enum><text display-inline="yes-display-inline">provide information on business practices and technical assistance to market participants regarding communities identified as underserved with regards to addressing the housing needs of consumers in that community.</text></clause></subparagraph><subparagraph id="idE68F4900C33440EB8CD30656CD2B3C8F"><enum>(B)</enum><header>Annual state of covered securities market report</header><clause id="id5F46A43C1AC344C79DA76DE02BE3C44A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Office of Consumer and Market Access shall, on an annual basis, submit a report to Congress on the state of the covered securities market, and make such report available to the public.</text></clause><clause id="idE96C8A5E76D848DAA97E85CD96752448"><enum>(ii)</enum><header>Required content</header><text display-inline="yes-display-inline">The report required under clause (i) shall include—</text><subclause id="id0F4EB3E814BF420DB9CA8D6D73F93667"><enum>(I)</enum><text display-inline="yes-display-inline">an assessment of the extent to which the covered securities market is providing liquidity to eligible borrowers in all segments of the mortgage origination primary market, including underserved segments identified and defined by the Corporation under section 210; and</text></subclause><subclause id="id7C12A499295F40029D6DEBC08CF59684"><enum>(II)</enum><text display-inline="yes-display-inline">recommendations for such legislative, regulatory, or administrative actions as may be necessary to address any deficiencies in the availability of mortgage credit in any market or region identified pursuant to clause (i) via existing Federal programs or the covered securities market.</text></subclause></clause><clause id="id54958A11391E454D856EF5DFE6B0BC26"><enum>(iii)</enum><header>Reliance on public data</header><text display-inline="yes-display-inline">In preparing each report required under this subparagraph, the Office of Consumer and Market Access—</text><subclause id="id0F721525069F41F694320424CFA34D3E"><enum>(I)</enum><text display-inline="yes-display-inline">shall use, to the maximum extent practicable, publicly available data and data otherwise collected under this Act; and</text></subclause><subclause id="idC98C6440D1DA4189AA5735C9C032B47E"><enum>(II)</enum><text display-inline="yes-display-inline">shall not include or review any confidential information or information collected by the Corporation as part of its supervisory or examination authorities that is confidential.</text></subclause></clause></subparagraph><subparagraph id="idE893A7F253A9410AAD8BC1781249188A"><enum>(C)</enum><header>Incentive study</header><text display-inline="yes-display-inline">The Office of Consumer and Market Access shall, on a biennial basis, conduct a study on incentives to encourage mortgage lenders and mortgage originators to address the housing needs of underserved markets and communities.</text></subparagraph><subparagraph id="id40E6540A380E484795C3F2DAAAA79A6F"><enum>(D)</enum><header>Inclusion in annual report</header><text display-inline="yes-display-inline">The Corporation shall include the report required in subparagraph (B) and the study required in subparagraph (C) in the annual report required under section 206.</text></subparagraph><subparagraph id="id9D8EC1BF25DD4EE5AB54544154155C41"><enum>(E)</enum><header>Consultation</header><text display-inline="yes-display-inline">The Office of Consumer and Market Access shall consult with the Federal Home Loan Banks and any small lender mutual established or approved under section 315 on approaches, methods, and practices designed to address the housing needs of underserved markets and communities.</text></subparagraph></paragraph></subsection></section><section id="id3923D494A7314274AE0A21F1A4B272A2"><enum>209.</enum><header>Office of Multifamily Housing</header><text display-inline="no-display-inline">The Corporation shall establish an Office of Multifamily Housing in the Corporation, whose functions shall include—</text><paragraph id="idB333B5B5BD72425A89D915C7DDD4761E"><enum>(1)</enum><text display-inline="yes-display-inline">developing, adopting, and publishing specific eligibility criteria to ensure that eligible multifamily mortgage loans that collateralize multifamily covered securities insured under this Act comply with the requirements of this Act; and</text></paragraph><paragraph id="id6B8125DF42454ADC82BB0C451AE61B47"><enum>(2)</enum><text display-inline="yes-display-inline">performing any other activity relating to the multifamily housing finance system that the Corporation may determine appropriate to fulfill the requirements of this Act.</text></paragraph></section><section id="idB5537AF74AD64637BF05650E6C16B49F"><enum>210.</enum><header>Equitable access for lenders and borrowers</header><subsection id="idf3f941a602d24e9eaea3d563073a59dd"><enum>(a)</enum><header>Equitable access in underserved market segments</header><paragraph id="idd7532db30cb0458d8345c27b7d762343"><enum>(1)</enum><header>In general</header><text>Subject to subsection (b), the Corporation shall seek to support the primary mortgage market for eligible mortgage loans on an equitable, nondiscriminatory, and non-exclusionary basis to help ensure that all eligible borrowers have access to mortgage credit, including underserved segments of the primary mortgage market as identified and defined by the Corporation under paragraph (2).</text></paragraph><paragraph id="id5e5fd378c46f4f2a86e024601d2a0b94"><enum>(2)</enum><header>Underserved market segments</header><text>The Corporation shall, by regulation, identify and define not more than 8 segments of the primary mortgage market in which lenders and eligible borrowers have been determined to lack equitable access to the housing finance system facilitated by the Corporation. The regulation required under this paragraph shall set forth the criteria by which the Corporation identified such underserved market segments. The identified underserved market segments required to be identified and defined under this paragraph may include the following:</text><subparagraph id="id75eb94f475984c31ad47e51fc9414a8b"><enum>(A)</enum><text>Historically underserved communities, including rural and urban areas.</text></subparagraph><subparagraph id="idfb2f1d5cd0f4402a992eb90544109d97"><enum>(B)</enum><text>Manufactured housing.</text></subparagraph><subparagraph id="idd9f696d6f88d420b867d831854db27ca"><enum>(C)</enum><text>Small balance loans.</text></subparagraph><subparagraph id="id67b4b96f9030457d99b71e8dc9c87f89"><enum>(D)</enum><text>Low- and moderate-income creditworthy borrowers.</text></subparagraph><subparagraph id="idc4d30935f3454bbc98b4a20001d6b6d8"><enum>(E)</enum><text>Preservation of existing housing stock created by State or Federal laws.</text></subparagraph><subparagraph id="id15d29235a741489e8738b6a7a3296c62"><enum>(F)</enum><text>Affordable rental housing.</text></subparagraph></paragraph><paragraph id="id79febfc7c8be451e85a9370c8d411045"><enum>(3)</enum><header>Reports on serving underserved market segments</header><subparagraph id="ida16ec9b6c4474097b07538d87e3f363d"><enum>(A)</enum><header>Annual reports</header><text>The Corporation shall require that each approved guarantor and approved aggregator engaged in a covered guarantee transaction or in a covered market-based risk-sharing transaction submit on annual basis a public report describing the actions taken by such approved guarantor or approved aggregator during the year, consistent with its business judgment, to provide credit to the underserved market segments identified and defined by the Corporation pursuant to this subsection, including corporate practices designed to serve such identified market segments. The annual report required under this subparagraph shall be approved by the board of directors and signed by the chief executive officer of the approved guarantor or approved aggregator submitting the report.</text></subparagraph><subparagraph id="id9a026c65694c40729c80e5d4e0e0c73e"><enum>(B)</enum><header>Report template</header><text>The Corporation may establish an optional template for the annual report required under subparagraph (A).</text></subparagraph><subparagraph id="id46772d2e40d943f58159d0cc46e4635f"><enum>(C)</enum><header>Report not subject to prior review or approval</header><text>An annual report required under subparagraph (A) shall not be subject to prior review or approval by the Corporation.</text></subparagraph><subparagraph id="ida54d4c87af684622ad2c60c841e96413"><enum>(D)</enum><header>Coordination with other Federal and State agencies</header><text>The Corporation shall, in establishing the requirements for the annual report required under subparagraph (A), coordinate with other Federal and State agencies, as necessary, to reduce duplicative reporting requirements.</text></subparagraph></paragraph></subsection><subsection id="id4f5a2fb93562455c8aff4049077a39b1"><enum>(b)</enum><header>Limitations</header><paragraph id="id512b2f0c8a0040758f3312e5a3f343eb"><enum>(1)</enum><header>Limitation on use of authorities and information</header><text>In carrying out this title, the Corporation shall not interfere with the exercise of business judgment of an approved aggregator or approved guarantor in determining which specific mortgage loans to include in a covered guarantee transaction or a covered market-based risk-sharing transaction, including through the Corporation’s use of—</text><subparagraph id="id251D9A3611AC45B6BFF4DE4A4F24271B"><enum>(A)</enum><text>the approval process for a guarantor or an aggregator established under subtitle B of title III;</text></subparagraph><subparagraph id="id9977BF3796804A19BFAA4C54AD2EB1FE"><enum>(B)</enum><text>its general supervisory and examination authorities under subtitle B of title III; or</text></subparagraph><subparagraph id="idC61B0E1A473245E79560A7FBA5CD59CC"><enum>(C)</enum><text>information collected under this section, section 501, or section 208.</text></subparagraph></paragraph><paragraph id="idE523379F81DD49BD94FA33F30E7446CD"><enum>(2)</enum><header>Rule of construction</header><text>Nothing in this subsection shall prevent the imposition of the variable incentive-based fees authorized in section 501 nor shall it exempt covered entities from compliance with the Fair Housing Act (42 U.S.C. 3601 et seq.) and the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691">15 U.S.C. 1691 et seq.</external-xref>) as required in section 408(d).</text></paragraph><paragraph id="iddfe67c329ac5419597f33fe479c646d3"><enum>(3)</enum><header>Consistency with safety and soundness</header><text>The Corporation shall take appropriate measures designed to ensure that the requirements under this section are implemented in a manner consistent with safety and soundness principles.</text></paragraph></subsection></section><section id="id3D59CE0AE0D84B0593BB96B0CF904596"><enum>211.</enum><header>Office of Taxpayer Protection</header><subsection id="idD605EC1E952D4C0AB7AEED42D4B10619"><enum>(a)</enum><header>Establishment</header><text>The Corporation shall establish an Office of Taxpayer Protection whose functions shall include the responsibilities set forth under subsection (b).</text></subsection><subsection id="idB505CE05C2174B0D887B30BE0C92D30A"><enum>(b)</enum><header>Responsibilities</header><paragraph id="id3DF2B345C23E437FB5FFC68159573EDE"><enum>(1)</enum><header>Study on market concentration and the impact of the FMIC guarantee</header><text>The Office of Taxpayer Protection shall, on a semi-annual basis, conduct a study and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on—</text><subparagraph id="idBA3A7EBB2F18426EA4CE82500E8F2F35"><enum>(A)</enum><text>market concentration in the secondary mortgage markets, including the exposure of the Mortgage Insurance Fund to the top 10 largest approved aggregators and approved guarantors, as measured by the total outstanding principal balance at origination of eligible single-family mortgage loans collateralizing single-family covered securities for which such aggregator or guarantor has obtained insurance provided under this Act in the previous 6 months;</text></subparagraph><subparagraph id="idBDEEC305AFA34EC2BAC6C47AE90B2082"><enum>(B)</enum><text>the general state of underwriting standards in the origination of eligible single-family mortgage loans and the effect of insurance provided under this Act on such underwriting standards;</text></subparagraph><subparagraph id="id9F9F286D2B034DCA80BA9DFBEC88A5A8"><enum>(C)</enum><text>whether the insurance provided under this Act produces a subsidy to any approved entity or approved entities;</text></subparagraph><subparagraph id="id8DDAEFF42FF24DB3BE50F06B4E65295E"><enum>(D)</enum><text>a comparison of the treatment in the secondary mortgage markets of mortgage-backed securities guaranteed by the Government National Mortgage Association and single-family covered securities insured under this Act, which shall include—</text><clause id="id3AFB9FD5DDB94A509F80C29729E4A456"><enum>(i)</enum><text>a discussion of the characteristics of—</text><subclause id="idEF4D7E8791AA47F0B033C50EAA23728B"><enum>(I)</enum><text>mortgage loans collateralizing mortgage-backed securities guaranteed by the Government National Mortgage Association; and</text></subclause><subclause id="id7E1816E144BF4DE0A5C957682999F3D2"><enum>(II)</enum><text>eligible single-family mortgage loans collateralizing single-family covered securities insured under this Act; and</text></subclause></clause><clause id="id57539BAB23C244E7AB640788F82352BF"><enum>(ii)</enum><text>an analysis of any actions taken in the secondary mortgage markets to manipulate the guarantee provided by the Government National Mortgage Association and the insurance provided under this Act to the advantage of the secondary mortgage markets; and</text></clause></subparagraph><subparagraph id="idB2043DF78F924126AC8E72291BB44E54"><enum>(E)</enum><text>what steps the Corporation has taken to minimize any potential long-term costs to the taxpayers and the Mortgage Insurance Fund relating to risks identified in subparagraphs (A) through (D).</text></subparagraph></paragraph><paragraph id="id95ECE716961147D18CC9FACE092425A9"><enum>(2)</enum><header>Annual report on taxpayer protection and the exposure of the Mortgage Insurance Fund</header><subparagraph id="id53D2B87B03FA43919DDD14014184EBF1"><enum>(A)</enum><header>In general</header><text>The Office of Taxpayer Protection shall, on an annual basis, submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives containing the information required under subparagraph (B).</text></subparagraph><subparagraph id="idD0562835EB6D4746A43E34150AC4A5AB"><enum>(B)</enum><header>Required content</header><text>The report required under subparagraph (A) shall—</text><clause id="idC7904FFE7A7F4666A1E05D7AD35FFCBB"><enum>(i)</enum><text>include an analysis of the adequacy of—</text><subclause id="idA35A97E9F3DD40F299296FF610B4BD37"><enum>(I)</enum><text>the first loss position required under this Act, including the sufficiency of any permissible risk-sharing or risk mitigation permitted as a substitute for equity capital intended to cover the initial credit losses on a covered security prior to use of any amounts in the Mortgage Insurance Fund, the ability of the first loss position to absorb credit loss on covered securities, and to protect taxpayers; and</text></subclause><subclause id="id2173CFC923C54B7A9E7882B89C37FDA7"><enum>(II)</enum><text>the performance of eligible single-family mortgage loans collateralizing single-family covered securities insured under this Act based upon current underwriting standards and how that performance differs from the performance of noneligible mortgage loans based upon the underwriting standards for such noneligible mortgage loans, including with respect to—</text><item id="idC585C8EE519946F9863F491907655952"><enum>(aa)</enum><text>debt to income ratio;</text></item><item id="id4E6AC3723CAA4A8C9A80E180911215D4"><enum>(bb)</enum><text>loan to value ratios;</text></item><item id="id32F91997C0D74224A897DE7DDED0799A"><enum>(cc)</enum><text>credit history;</text></item><item id="idAF3A934DF9944E958A40E7360228EF42"><enum>(dd)</enum><text>loan documentation;</text></item><item id="id35D28807834548F2B95B478370B94B04"><enum>(ee)</enum><text>occupancy status;</text></item><item id="id1198DC0EDA5E4CAD9B0FFB30C97F5882"><enum>(ff)</enum><text>credit enhancements;</text></item><item id="id84637D32AFDE48959EB144CEF42064A4"><enum>(gg)</enum><text>housing counseling by a HUD-approved housing counseling agency;</text></item><item id="id0C5385FB442F4B538EF624A71BBAB72B"><enum>(hh)</enum><text>loan payments;</text></item><item id="id4F05D3B111914CA29ECBB4E8E5A147A6"><enum>(ii)</enum><text>the purpose of the loan, such as to refinance or purchase a home;</text></item><item id="id548711AF4F2E4479895AB45E524A1F1A"><enum>(jj)</enum><text>the type of loan product, such as a 30-year fixed interest rate mortgage loan, a 15-year fixed interest rate mortgage loan, or an adjustable interest rate mortgage loan;</text></item><item id="id3725A46C1A9D42D09F09C60980BBC8DE"><enum>(kk)</enum><text>the mortgage loan origination channel; and</text></item><item id="id939ACBF5AAFD4DADBD23C37B5DA7D8E7"><enum>(ll)</enum><text>such other underwriting criteria that would be useful to the Director of Taxpayer Protection; and</text></item></subclause></clause><clause id="id837A8624F2794A0DAE1284F92459F2E4"><enum>(ii)</enum><text>provide recommendations for such legislative, regulatory, or administrative actions to—</text><subclause id="id7BB179E5DEE1461DB9758DE47727E263"><enum>(I)</enum><text>address any need to further limit overexposure of the Mortgage Insurance Fund to any 1 approved entity or business practice;</text></subclause><subclause id="id8FEFEC31D4CB46F48473155F402A9383"><enum>(II)</enum><text>foster and encourage a robust private secondary mortgage market for noneligible mortgage loans and mortgage-backed securities that are not guaranteed by the Government National Mortgage Association; and</text></subclause><subclause id="id41A294715B2A4F809371A158396B8B20"><enum>(III)</enum><text>assist the Corporation in protecting taxpayers, including a recommendation as to whether a counter-cyclical increase of the reserve ratio of the Mortgage Insurance Fund or of the capital standards required of individual approved guarantors is necessary to protect taxpayers.</text></subclause></clause></subparagraph></paragraph><paragraph id="idA64FDF40C09243409C8514EDE7B2FCFE"><enum>(3)</enum><header>Annual report on system-wide leverage</header><text>The Office of Taxpayer Protection shall, on an annual basis, submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on system-wide leverage in the secondary mortgage market.</text></paragraph><paragraph id="id8B2D98E67E8948B29637ECC6C65B8CAF"><enum>(4)</enum><header>Annual report on early payment defaults</header><text>The Office of Taxpayer Protection shall, on an annual basis, submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on early payment defaults on eligible single-family mortgage loans for the preceding year, which shall include any eligible single-family mortgage loan that becomes delinquent or that is in default within 24 months of the origination of the loan.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id06122550815D4DD1B05AFB5ED7D3F69D"><enum>(5)</enum><header>Inclusion in annual report</header><text>The Corporation shall include the reports required under paragraphs (2) and (3) in the annual report required under section 206.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id23348A177F7D4157B2F77DC9647BDE78"><enum>(6)</enum><header>Reliance on public data</header><text>In preparing each report required under this section, the Office of Taxpayer Protection—</text><subparagraph commented="no" display-inline="no-display-inline" id="id459956AFB3894FDCBC87EB27DE02D225"><enum>(A)</enum><text>shall use, to the maximum extent practicable, publicly available data and data otherwise collected under this Act; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id00284773E95745D2923142C67133C7E1"><enum>(B)</enum><text>shall not include or review any confidential information or information collected by the Corporation as part of its supervisory or examination authorities that is confidential.</text></subparagraph></paragraph></subsection></section><enum>III</enum><header>Duties and responsibilities of the FMIC</header><subtitle id="id5FACEC5334234F6C9D7D9FC4AB78B78B" style="OLC"><enum>A</enum><header>Duties and authorities</header><section id="id37EDF80DEA77463E82EDEB6A4D08AEFD"><enum>301.</enum><header>Duties and responsibilities</header><subsection id="id93a5a2e7b055483fa1f9cf6cc028f0b2"><enum>(a)</enum><header>Duties</header><text>The principal duties of the Corporation shall be to—</text><paragraph id="id8f02be586d1a495badf8bb905a1330ba"><enum>(1)</enum><text>carry out this Act in a manner that fulfills the purposes of the Corporation as described in section 201(b);</text></paragraph><paragraph id="ide84af1aad5424067879c11034201e07e"><enum>(2)</enum><text>minimize any potential long-term cost to the taxpayer, including through the use of the Mortgage Insurance Fund, the assessment of insurance fees, and the approval of approved entities and credit risk-sharing mechanisms;</text></paragraph><paragraph id="id38737a63b5574373b49ae012156939eb"><enum>(3)</enum><text>facilitate fair access to the secondary mortgage market for small mortgage lenders originating eligible single-family and multifamily mortgage loans, including through the establishment, approval, and oversight of small lender mutuals;</text></paragraph><paragraph id="id6106f1547b814e96a50156af38bc2e34"><enum>(4)</enum><text>ensure integrity and discipline in the mortgage market, particularly by monitoring the safety and soundness of regulated entities and approved entities;</text></paragraph><paragraph commented="no" id="id81d5dc9b95874965b265d93f0abc82af"><enum>(5)</enum><text>ensure that approved entities maintain the capacity to further the requirements of the Corporation pursuant to section 201(b)(5) and that approved guarantors, approved multifamily guarantors, and approved aggregators are in compliance with section 210(a)(3);</text></paragraph><paragraph id="idf23395cf14374a7bbd64256d8464080b"><enum>(6)</enum><text>promote the standardization of the secondary mortgage market through the use of uniform securitization agreements, servicing agreements, and the Securitization Platform;</text></paragraph><paragraph id="id48e52c357ee9468b8f0714ea3b99badd"><enum>(7)</enum><text>increase transparency in single-family and multifamily mortgage markets, including through the National Mortgage Database; and</text></paragraph><paragraph id="id90A513C690A5401296E19371D31E54A4"><enum>(8)</enum><text>ensure continued, widespread availability of an affordable, long-term, fixed rate, prepayable mortgage, such as a 30-year fixed rate mortgage.</text></paragraph></subsection><subsection id="ida06e3ddfeb3343eabd235e0a067d8557"><enum>(b)</enum><header>Scope of authority</header><text>The authority of the Corporation shall include the authority to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the Corporation set forth in this Act.</text></subsection><subsection id="id852fd8a829ea4961a8fcb4d6b71f676a"><enum>(c)</enum><header>Delegation of authority</header><text>The Board of Directors may delegate to any duly authorized employee or representative any power vested in the Corporation by law.</text></subsection></section><section id="id4A787FF09F1548409C6537630048C8B1"><enum>302.</enum><header>Standards for credit risk-sharing mechanisms</header><subsection id="id090790D143D448C9B3DCBBDD8C332DD2"><enum>(a)</enum><header>Approval</header><paragraph commented="no" id="id0f257c29124a4196a7e901df9bf93dfa"><enum>(1)</enum><header>Authority</header><text>The Corporation shall develop, adopt, and publish, after notice and comment, standards for the consideration and, as appropriate, the approval of credit risk-sharing mechanisms that shall require that the first loss position of private market holders on single-family covered securities is—</text><subparagraph commented="no" id="idB6ABA23B9D39477EBFC3D864E2FEBE00"><enum>(A)</enum><text>adequate to cover losses that might be incurred in a period of economic stress, including national and regional home price declines, such as those observed during moderate to severe recessions in the United States; and</text></subparagraph><subparagraph commented="no" id="id7CCACF48960B4590BF9DE4B02AF69BD6"><enum>(B)</enum><text>not less than 10 percent of the principal or face value of the single-family covered security at the time of issuance.</text></subparagraph></paragraph><paragraph commented="no" id="id6a831c36d6e34ed6a80572b1ec416cd4"><enum>(2)</enum><header>Fraud prohibition</header><subparagraph commented="no" id="id189DF191589544B39A866D444FB80111"><enum>(A)</enum><header>Prohibition</header><text>It shall be unlawful for any person to intentionally create and issue any instrument or security as a first loss position on a single-family covered security that such person knows or in the exercise of reasonable care should have known does not satisfy the requirements of this section.</text></subparagraph><subparagraph commented="no" id="id3EFD85C032734B0783FC00BD6B0260F8"><enum>(B)</enum><header>Penalty</header><text>Violations of subparagraph (A) shall be punishable in accordance with <external-xref legal-doc="usc" parsable-cite="usc/18/1343">section 1343</external-xref> of title 18, United States Code.</text></subparagraph></paragraph></subsection><subsection id="id1D4175E3F6E84F58B749133C32C11906"><enum>(b)</enum><header>Approval of credit risk-sharing mechanisms</header><paragraph commented="no" id="id3C2B1D5A604F4D71B501DFEBD11A945E"><enum>(1)</enum><header>Considerations for approval of various mechanisms</header><text>In approving credit risk-sharing mechanisms under subsection (a), the Corporation shall—</text><subparagraph commented="no" id="id68F0AAB15B994C5E90C24DB7F700F351"><enum>(A)</enum><text>consider proposals that include credit-linked structures or other instruments that are designed to absorb credit losses on single-family covered securities;</text></subparagraph><subparagraph commented="no" id="id74FC78D3E5F248D7977B9430C5297D6A"><enum>(B)</enum><text>consider any credit risk-sharing mechanisms undertaken by the enterprises;</text></subparagraph><subparagraph id="ide65508a5e0ac48c48f9c15ef38a9377e"><enum>(C)</enum><text>ensure that the first loss position is fully funded to meet the requirements of subsection (a)(1)(B);</text></subparagraph><subparagraph commented="no" id="idF8E5E962C45B4E97BC5086ACD6E10072"><enum>(D)</enum><text>ensure that each type of proposed mechanism—</text><clause commented="no" id="idC30A6A95F7664ED686F5135053FDDB64"><enum>(i)</enum><text>enables the Corporation to verify that the first loss position is fully funded;</text></clause><clause commented="no" id="idB7EBEF57220541D29B03939869A2A0C8"><enum>(ii)</enum><text>minimizes any potential long-term cost to the taxpayer;</text></clause><clause commented="no" id="idF8173B74A6BF4022A4E80397576BD419"><enum>(iii)</enum><text>accommodates the availability of mortgage credit on equal and transparent terms in the secondary mortgage market for—</text><subclause commented="no" id="id73988E394B1546EDBA97C9101A912361"><enum>(I)</enum><text>small mortgage lenders; and</text></subclause><subclause commented="no" id="idEB093504CD1E4B2880E8624BB30E9E6B"><enum>(II)</enum><text>lenders from all geographic locations, including rural locations;</text></subclause></clause><clause commented="no" id="id72A142FA971743AA89AE6E513FEAFE34"><enum>(iv)</enum><text>allows for broad availability of mortgage credit and secondary mortgage market financing through fluctuations in the business cycle for eligible single-family lending across all—</text><subclause id="id0DE014A346954465AAA298480B416B24"><enum>(I)</enum><text>regions;</text></subclause><subclause id="id616E1ECB8D954E44ADD956B323BD3935"><enum>(II)</enum><text>localities;</text></subclause><subclause id="id48B0228F7F384953B93B6C1A47BD06FC"><enum>(III)</enum><text>institutions;</text></subclause><subclause id="id11CF54B9D77C456F8E96388805B49E8E"><enum>(IV)</enum><text>property types, including housing serving renters; and</text></subclause><subclause id="idEB66396065C24608B290C89DA2E4885F"><enum>(V)</enum><text>eligible borrowers;</text></subclause></clause><clause commented="no" id="idDFBD1200362F41C4813B25AC96374A84"><enum>(v)</enum><text>fulfills the requirements under section 314 with respect to loan modifications and foreclosure prevention;</text></clause><clause commented="no" id="idD1E8D26CC68741E78A4C348012BF45F1"><enum>(vi)</enum><text>does not prevent the securitization of refinanced or modified eligible single-family mortgage loans within single-family covered securities during a period when the authority under section 305(i) is exercised;</text></clause><clause commented="no" id="id9EEA7CD7591B4E01B944E08D4E02EF64"><enum>(vii)</enum><text>does not diminish market liquidity and resiliency;</text></clause><clause commented="no" id="id69178FF931B64B33B5875CEB2ECF5B06"><enum>(viii)</enum><text>does not prevent the refinancing of underwater eligible single-family mortgage loans; and</text></clause><clause commented="no" id="id14DD07B5F4584E2BB5847D93A093D5E9"><enum>(ix)</enum><text>does not present an unnecessary risk to the Mortgage Insurance Fund;</text></clause></subparagraph><subparagraph commented="no" id="id9B4F208E514649F1AE5F7BB37619A5A1"><enum>(E)</enum><text>consider whether the approval of any credit risk-sharing mechanism will impair the operation and liquidity of forward market executions for eligible single-family mortgage loans and single-family covered securities, such as the To-Be-Announced market, taking into consideration other risk-sharing options available to market participants; and</text></subparagraph><subparagraph id="ida3300dfe49fe4659bcccfc3c05fce976"><enum>(F)</enum><text>take necessary steps to prevent abuse and deceptive practices in the use of the credit risk-sharing mechanisms, including by—</text><clause id="ida2c3436def1145729b2601285e2fea31"><enum>(i)</enum><text>creating appropriate standards relating to—</text><subclause id="idaa8895daf38d42d3839efc35d345cc1b"><enum>(I)</enum><text>the vintages or categories of covered securities that are referenced by a credit risk-sharing mechanism;</text></subclause><subclause id="id649f5bc87ecb49aa82152da79756cb7b"><enum>(II)</enum><text>standardization of the terms and features of credit risk-sharing structures; and</text></subclause><subclause id="id5f604f92a3124d47b4ed2490ee9f3967"><enum>(III)</enum><text>measures that prevent the duplicative sale by a guarantor of the same mortgage credit risk in the same pool of eligible single-family mortgage loans; and</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="idf407e036bb244b209a791718f1ced1c5"><enum>(ii)</enum><text>requiring additional disclosures and affirmative representations that must be made by entities that create and issue credit risk-sharing mechanisms.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id4584B924FC4E4F0C9442074D195CBA23"><enum>(2)</enum><header>Notice and publication</header><text>The Corporation shall—</text><subparagraph commented="no" id="id48A292DA9A974788A859C98B04953EBF"><enum>(A)</enum><text>provide prompt notice to any person seeking approval for a credit risk-sharing mechanism of the approval or denial of that credit risk-sharing mechanism; and</text></subparagraph><subparagraph commented="no" id="idB681577B8898410487431A980430D8DB"><enum>(B)</enum><text>make available detailed information regarding approved mechanisms on the website of the Corporation.</text></subparagraph></paragraph><paragraph commented="no" id="id1274F7724A5E4707A15F8D7216E8F9D6"><enum>(3)</enum><header>Review of approved credit risk-sharing mechanisms</header><subparagraph commented="no" id="idDC97A030FCA84B239403C4BE975483B4"><enum>(A)</enum><header>Authority to suspend</header><text>The Corporation may, from time to time and in its discretion—</text><clause commented="no" id="id0B3517DDCB1C49648F96531AD323B973"><enum>(i)</enum><text>conduct reviews of approved credit risk-sharing mechanisms to determine whether such credit risk-sharing mechanisms continue to satisfy the considerations for approval under paragraph (1);</text></clause><clause commented="no" id="idB490E0AD95D9469E8CCBE981D08C9457"><enum>(ii)</enum><text>assess the functioning of the forward market for eligible single-family mortgage loans and single-family covered securities, including the To-Be-Announced market, to determine whether any approved credit risk-sharing mechanism has adversely affected the liquidity or resiliency of such market; and</text></clause><clause commented="no" id="id38EE0B894FC140889A9C55217C390E2A"><enum>(iii)</enum><text>suspend the approval of—</text><subclause commented="no" id="id3BAC58FEC0EC403DAAC1CC4D896D40DE"><enum>(I)</enum><text>any credit risk-sharing mechanism that it determines does not satisfy the considerations for approval under paragraph (1); or</text></subclause><subclause commented="no" id="id0D2FB329D7F74A21831B561839E50304"><enum>(II)</enum><text>any credit risk-sharing mechanism that it determines has adversely affected the liquidity or resiliency of the forward market for eligible single-family mortgage loans and single-family covered securities, including the To-Be-Announced market.</text></subclause></clause></subparagraph><subparagraph commented="no" id="id1ECBE443C64845D88FA90D616673ACD1"><enum>(B)</enum><header>Reconsideration</header><clause commented="no" id="idED2A10CD491C4098884297CA2691191D"><enum>(i)</enum><header>Development of expedited process</header><text>The Corporation shall develop an expedited process for the reinstatement of the approval of any credit risk-sharing mechanism that is suspended under subparagraph (A)(iii).</text></clause><clause commented="no" id="id5C08CFE7C9BC4FDEA3AD00545B853531"><enum>(ii)</enum><header>Revision of mechanism</header><text>If a credit risk-sharing mechanism is suspended under subparagraph (A)(iii), the credit risk-sharing mechanism may be adapted or revised, as necessary, for reconsideration for reinstatement of the approval of the credit risk-sharing mechanism under the expedited process developed under clause (i).</text></clause></subparagraph><subparagraph commented="no" id="id6181B85858EB4490977192CE4CB63809"><enum>(C)</enum><header>No effect on existing mechanisms</header><text>The suspension of the approval of any credit risk-sharing mechanism under subparagraph (A)(iii) shall have no effect on the status of single-family covered securities and related instruments using the credit risk-sharing mechanism that were issued prior to the suspension.</text></subparagraph></paragraph><paragraph commented="no" id="idDF209F8FC9EF431BB2439F35C6B8DCAB"><enum>(4)</enum><header>Additional credit risk-sharing mechanisms</header><subparagraph commented="no" id="idB65B34446D8148CEAF597EA3E86FF1FD"><enum>(A)</enum><header>Approval</header><text>In addition to credit risk-sharing mechanisms approved by the Corporation under subsection (a), the Corporation shall consider and may approve additional fully-funded credit risk-sharing mechanisms that—</text><clause commented="no" id="idF5C4E723FE474BE7ABC1CBCF1C0E9690"><enum>(i)</enum><text>may be employed by an approved guarantor to manage the credit risk relating to guarantees provided for single-family covered securities; and</text></clause><clause commented="no" id="id025F59E6F4BB489F8EDBE83023D41179"><enum>(ii)</enum><text>do not represent the first loss position with respect to single-family covered securities.</text></clause></subparagraph><subparagraph commented="no" id="id81C04164331A430CBD8B067DBAF192DE"><enum>(B)</enum><header>Rule of construction</header><text>Nothing in this paragraph shall be construed to limit an approved guarantor from engaging in other forms of risk-sharing or risk mitigation using mechanisms that have not been considered or approved by the Corporation.</text></subparagraph></paragraph><paragraph commented="no" id="idED56548CBE434C8F9722487D2EBE38CB"><enum>(5)</enum><header>Reports</header><subparagraph commented="no" id="id4CD34E4F84B64C51BE4B5B09450110E9"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the agency transfer date, and annually thereafter until the system certification date, the Corporation shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that—</text><clause commented="no" id="id7AAE49A96F994A36BE6F96AF634C5BC9"><enum>(i)</enum><text>discusses each credit risk-sharing mechanism that the Chairperson considered in carrying out the requirements of this section;</text></clause><clause commented="no" id="id199262E18E774C89B432069D4EFC454B"><enum>(ii)</enum><text>describes how the operation and execution of each approved credit risk-sharing mechanism fulfills the requirements of this section; and</text></clause><clause commented="no" id="id4BE865E4B16E44A3B21BACFE8A70CE4D"><enum>(iii)</enum><text>explains how the Corporation arrived at the determinations made under clause (ii), including a discussion of the data considered.</text></clause></subparagraph><subparagraph commented="no" id="idC6AD0709577E44FB8FD01585B4BA8D49"><enum>(B)</enum><header>Subsequent reports</header><text>On the system certification date and annually thereafter, the Corporation shall publish in the Federal Register a list of the credit risk-sharing mechanisms that the Corporation approved or suspended, addressing the identical concerns set forth under clauses (i) through (iii) of subparagraph (A) and, with respect to any suspension, the considerations under paragraph (1) that are no longer satisfied.</text></subparagraph><subparagraph commented="no" id="idFF4847F8B2854BF5B2C3CA8C1852045D"><enum>(C)</enum><header>Multifamily reports</header><text>The Corporation shall include in the reports prepared under subparagraphs (A) and (B) a description of the credit risk-sharing mechanisms approved by the Corporation for multifamily guarantors pursuant to section 703.</text></subparagraph></paragraph></subsection><subsection commented="no" id="idE4634D5984D6460484B899D6BC6D6D3B"><enum>(c)</enum><header>Collateral diversification standards</header><text>The Corporation shall establish standards, after notice and comment, for the appropriate minimum level of diversification for eligible single-family mortgage loans that collateralize single-family covered securities that are issued subject to an approved credit risk-sharing mechanism in order to reduce the credit risk such single-family covered securities could pose to the Mortgage Insurance Fund.</text></subsection><subsection commented="no" id="idEC05669B1DBE4F7C8E771D42F171E8A3"><enum>(d)</enum><header>Rule of construction</header><text>Nothing in this section shall be construed to require the Corporation to approve any credit risk-sharing mechanism.</text></subsection><subsection id="id817ac7dce22f4ce2b45358d97d2afe05"><enum>(e)</enum><header>Applicability of the Commodity Exchange Act and Securities Act of 1933</header><paragraph id="id329aabcbef2f4d05ba32c22c05a8e08a"><enum>(1)</enum><header>Exemption from the Commodity Exchange Act; prior consultation required</header><subparagraph id="idaaf892d98bf84078993ab7457ecb4871"><enum>(A)</enum><header>Exemption</header><text>No counterparty that enters into a swap, as that term is defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>), for purposes of structuring any credit risk-sharing mechanism that is approved by the Corporation pursuant to this section, which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any single-family covered security insured in accordance with section 303 or section 305, shall be deemed, by reason of such swap transaction, to be a commodity pool, as that term is defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>).</text></subparagraph><subparagraph id="id91cf4e94c18c465baa39b0f3832dadfe"><enum>(B)</enum><header>Prior consultation required</header><text>Before approving any credit risk-sharing mechanism that would be exempt from the Commodity Exchange Act pursuant to subparagraph (A), the Corporation shall consult with the Commodity Futures Trading Commission.</text></subparagraph></paragraph><paragraph id="id03fcf1294f8046eabb2850e4d22e14c3"><enum>(2)</enum><header>Exemption from section 27B of the Securities Act of 1933; prior consultation required</header><subparagraph id="idfcb088769b3f47ad9cc856acbbdbc8e5"><enum>(A)</enum><header>Exemption</header><text>Any credit risk-sharing mechanism that is approved by the Corporation pursuant to this section, which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any single-family covered security insured in accordance with section 303 or section 305, shall be exempt from section 27B of the Securities Act of 1933 (15 U.S.C. 77z-2a).</text></subparagraph><subparagraph id="id62302dbc68b7464da289054e1003dd5a"><enum>(B)</enum><header>Prior consultation required</header><text>Before approving any credit risk-sharing mechanism that would be exempt from section 27B of the Securities Act of 1933 pursuant to subparagraph (A), the Corporation shall consult with the Securities and Exchange Commission.</text></subparagraph></paragraph></subsection></section><section id="id7ED72FA41B0E4B17A4466206E7DC4987"><enum>303.</enum><header>Insurance; Mortgage Insurance Fund</header><subsection id="id87f4637817d644b7871c76dcf16e1222"><enum>(a)</enum><header>Authority</header><text>The Corporation shall, in exchange for a fee in accordance with subsection (e)(8), insure the payment of principal and interest on a covered security with respect to any failure to pay on such covered security subject to the requirements of this section.</text></subsection><subsection id="id6b8ea304517947d9a509f1a2d6d1fdbb"><enum>(b)</enum><header>Terms and conditions</header><paragraph id="id5097D080B5424D4B8C1923C7D25B506A"><enum>(1)</enum><header>In general</header><text>The Corporation shall, by regulation, establish terms and conditions for the provision of insurance under this Act.</text></paragraph><paragraph id="ida7e891cbf5054c5cbd42cdd650da401e"><enum>(2)</enum><header>Single-family</header><text>The terms and conditions required to be established under paragraph (1) shall, for single-family covered securities, include terms and conditions that ensure—</text><subparagraph id="id21c0f465f3a649afa234a92bbaccd2f0"><enum>(A)</enum><text>eligible single-family mortgage loans collateralizing single-family covered securities have been delivered to the Platform; and</text></subparagraph><subparagraph id="id2692bc35c49b4144a0a31b6e72254df5"><enum>(B)</enum><text>with respect to each single-family covered security, either—</text><clause id="id92bd01d1e7084c86b114703c107963fc"><enum>(i)</enum><text>private market holders have taken a first loss position that satisfies the requirements of section 302; or</text></clause><clause id="idf9efffb319194090b24f6b50fc3f84e9"><enum>(ii)</enum><text>an approved guarantor has provided a guarantee in satisfaction of the requirements of section 311.</text></clause></subparagraph></paragraph><paragraph id="idf2e008cd5d2947b0bf728fc06db3ec58"><enum>(3)</enum><header>Multifamily</header><text>The terms and conditions required to be established under paragraph (1) shall, for multifamily covered securities, include terms and conditions that ensure, with respect to each multifamily covered security, that an approved multifamily guarantor has provided a guarantee in satisfaction of the requirements of section 703.</text></paragraph></subsection><subsection id="id9b02dae34a394b09ac0b51cc4df51227"><enum>(c)</enum><header>Cash payments; continued operations</header><text>The Corporation shall facilitate the timely and unconditional payment of principal and interest on covered securities insured under this Act by paying, in cash when due, any shortfalls in principal and interest due on the covered security, and continuing to charge and collect any fees for the provision of insurance (in accordance with subsection (e)(8)) relating to the covered security in the event of any losses that may be incurred (1) in excess of a payment default on the covered security that exceeds the first loss position assumed by a private market holder, (2) in the case of a covered security that is guaranteed by an approved guarantor or approved multifamily guarantor as a result of the insolvency of the guarantor, or (3) upon the failure of the servicer or guarantor to transfer to the bond administrator for the covered security funds in amounts necessary to make timely payment of principal and interest due on the covered security.</text></subsection><subsection id="idDDDEF118B0CA4519A1C33F2A7C77C522"><enum>(d)</enum><header>Cost recovery</header><text>In the event the Corporation makes a payment on a covered security based on subsection (c)(3), the Corporation shall recover such amount paid, and reasonable costs and expenses, from the servicer or guarantor.</text></subsection><subsection id="id7e97fe49ff6e4812aae25b0c5b27f618"><enum>(e)</enum><header>Mortgage Insurance Fund</header><paragraph id="id5bd553832d894d4b9718e6062a315210"><enum>(1)</enum><header>Establishment</header><text>On the agency transfer date, there shall be established the Mortgage Insurance Fund, which the Corporation shall—</text><subparagraph id="id9f9557c6b1084775a1070452756a96cb"><enum>(A)</enum><text>maintain and administer;</text></subparagraph><subparagraph id="id7e28c92304e24a5d850351b4eb79e83a"><enum>(B)</enum><text>use to carry out the insurance functions authorized under this Act, including any function or action authorized under section 305; and</text></subparagraph><subparagraph id="id2f2593fe7d6447f2ba590979984a96ec"><enum>(C)</enum><text>invest in accordance with the requirements of paragraph (10).</text></subparagraph></paragraph><paragraph id="ida43e199b2db74507b32ef837690c7cda"><enum>(2)</enum><header>Deposits</header><text>The Mortgage Insurance Fund shall be credited with any—</text><subparagraph id="id75f001ba30b246c5989044d2060cd0f7"><enum>(A)</enum><text>fee amounts required to be deposited in the Fund under this section;</text></subparagraph><subparagraph id="id50bf65a65e6247af8f7b07bfb0e5b82d"><enum>(B)</enum><text>amounts earned on investments pursuant to paragraph (10);</text></subparagraph><subparagraph id="id4EE7315F721D4BD0A01D543981A86954"><enum>(C)</enum><text>assessment amounts authorized to be deposited into the Fund under section 405(b); and</text></subparagraph><subparagraph id="id5193e7654071462fb0ae2c95434ccb2a"><enum>(D)</enum><text>assessment amounts required to be deposited into the Fund under section 608(c).</text></subparagraph></paragraph><paragraph id="id4c9bd2575e9842d4a2e6fa7e38590097"><enum>(3)</enum><header>Fees for single-family and multifamily covered securities</header><text>In determining the amount of any fee to be charged by the Corporation under this section, the Corporation shall charge a separate fee for single-family covered securities and multifamily covered securities, as appropriate for each asset class.</text></paragraph><paragraph id="id2ae22c11acd24490a78506fa57f79894"><enum>(4)</enum><header>Separate accounting required</header><text>The Corporation shall keep and maintain separate accounting for deposits in the Mortgage Insurance Fund related to fee amounts charged and collected for the insurance of single-family covered securities and multifamily covered securities.</text></paragraph><paragraph id="idaa4b5695450f4557ad628baa9462b277"><enum>(5)</enum><header>Fiduciary responsibility</header><text>The Corporation has the responsibility to ensure that the Mortgage Insurance Fund remains financially sound.</text></paragraph><paragraph id="id1dfa8de29b6040f995c8d34120878787"><enum>(6)</enum><header>Use and treatment of amounts in the Fund</header><subparagraph id="id3bebfd128c50473c908da091a47dc522"><enum>(A)</enum><header>In general</header><text>The Mortgage Insurance Fund shall be solely available to the Corporation for use by the Corporation to carry out the functions authorized by this Act, for the expenses of the Corporation, and for—</text><clause id="ida57d4e95788f4cafaddf6d915e254c76"><enum>(i)</enum><text>compensation of the employees of the Corporation;</text></clause><clause id="id1eb8c9d00eeb498789fcfff72197cc5b"><enum>(ii)</enum><text>purposes of—</text><subclause id="id5553C688A0AB416DA8289147779A68F2"><enum>(I)</enum><text>funding the CSP; and</text></subclause><subclause id="id82D0E01A44E34635BAE57B2696148024"><enum>(II)</enum><text>establishing the Securitization Platform under section 321, multifamily subsidiaries under section 701, the initial Small Lender Mutual under section 315, and any other entity authorized by this Act that facilitates an orderly transition to the new housing finance system; and</text></subclause></clause><clause id="id16b4e02a9eba451f9e54990f1084926b"><enum>(iii)</enum><text>covering all other expenses of the Corporation.</text></clause></subparagraph><subparagraph id="id419DEB312FED4249835CD8EA615A9D96"><enum>(B)</enum><header>Prohibition</header><text>The Mortgage Insurance Fund may not be used or otherwise diverted to cover any other expense of the Federal Government.</text></subparagraph><subparagraph id="id0900e88c4b4548c8af4651719b5d9807"><enum>(C)</enum><header>Exemption from apportionment</header><text>Notwithstanding any other provision of law, amounts in the Mortgage Insurance Fund shall not be subject to apportionment for the purposes of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, or under any other authority.</text></subparagraph><subparagraph id="id2BA1178025464FD1BBE053D5B64DD6FC"><enum>(D)</enum><header>Not Government funds</header><text>Amounts in the Mortgage Insurance Fund shall not be construed to be Government or public funds or appropriated money.</text></subparagraph></paragraph><paragraph id="id365ad3ae879a45069b7418ebefaf7900"><enum>(7)</enum><header>Reserve ratio goals for Mortgage Insurance Fund</header><text>The Corporation shall—</text><subparagraph id="id4ad376545ffb4f55bd3fa0b9e0d10308"><enum>(A)</enum><text>endeavor to ensure that the Mortgage Insurance Fund attains a reserve ratio—</text><clause id="idf1c163aa2add45fe83406391241b9c1d"><enum>(i)</enum><text>of 1.25 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within 5 years of the system certification date; and</text></clause><clause id="idd95cb18b724b4b568402ac1331b52888"><enum>(ii)</enum><text>of 2.50 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within 10 years of the system certification date; and</text></clause></subparagraph><subparagraph id="idb6cdcb3013ff42bb8a09c411af356d3f"><enum>(B)</enum><text>after the expiration of the period referred to in subparagraph (A)(ii), endeavor to ensure that the Mortgage Insurance Fund maintains a reserve ratio of not less than 2.50 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title.</text></subparagraph></paragraph><paragraph id="idef211453493041ccbb551e34c3c31d37"><enum>(8)</enum><header>Maintenance of reserve ratio; establishment of fees</header><subparagraph id="ida4232c540c954fd59af6ddc53e3a4f8f"><enum>(A)</enum><header>Establishment of fees</header><text>The Corporation shall charge and collect a fee, and may in its discretion increase or decrease such fee, in connection with any insurance provided under this title to—</text><clause id="id1d2ed7cc1d0540f1b46a7a17d5392f5f"><enum>(i)</enum><text>achieve and maintain the reserve ratio goals established under paragraph (7); and</text></clause><clause id="id654a04ce759f41aca50129387e841131"><enum>(ii)</enum><text>fund the operations of the Corporation.</text></clause></subparagraph><subparagraph id="ida392156ad44a44b79b1d55503cd7d44b"><enum>(B)</enum><header>Fee considerations</header><text>In establishing fees under subparagraph (A), the Corporation shall consider—</text><clause id="id93ce15e674474a3aa9c692c45048c02b"><enum>(i)</enum><text>the expected operating expenses of the Mortgage Insurance Fund;</text></clause><clause id="id46d79860c2874839b07cfe1fa78f1989"><enum>(ii)</enum><text>the risk of loss to the Mortgage Insurance Fund in carrying out the requirements under this Act;</text></clause><clause id="id715214d7cdf448cdbfd5a9feb76c206d"><enum>(iii)</enum><text>the risk presented by, and the loss absorption capacity of, the credit risk-sharing mechanism or guarantee that is provided on the pool of eligible mortgage loans collateralizing the covered security to be insured under this title;</text></clause><clause id="id89a0fe7db1d4461d9aea29f5b8ea8a7e"><enum>(iv)</enum><text>economic conditions generally affecting the mortgage markets;</text></clause><clause id="ida1f2c896d2004a4fa235abdaae7291ef"><enum>(v)</enum><text>the extent to which the reserve ratio of the Mortgage Insurance Fund met—</text><subclause id="id46bb6c582c224435917ae3693366572b"><enum>(I)</enum><text>the reserve ratio set for the preceding 12-month period; or</text></subclause><subclause id="id7f95c49898df4dd59a5e50c4b142f976"><enum>(II)</enum><text>the reserve ratio goals established in paragraph (7); and</text></subclause></clause><clause id="id944cad0451424040af6ea7305982f89b"><enum>(vi)</enum><text>any other factors that the Corporation determines appropriate.</text></clause></subparagraph><subparagraph id="id321e4e1730ee4e96883be01394668d67"><enum>(C)</enum><header>Fee uniformity</header><text>The fee required under subparagraph (A)—</text><clause id="id02ee4e78480e473cb9018b0f3b0a1579"><enum>(i)</enum><text>except as provided in subparagraph (D), shall be set at a uniform amount applicable to all institutions purchasing insurance under this title;</text></clause><clause id="id4a65023f677840b9b3b992e14f044a52"><enum>(ii)</enum><text>may not vary—</text><subclause id="idbb5c9b84cf5847f694352bdbc293c458"><enum>(I)</enum><text>by geographic location; or</text></subclause><subclause id="id1b42ed44f7a14710a1c7390cacc2c88e"><enum>(II)</enum><text>by the size of the institution to which the fee is charged; and</text></subclause></clause><clause id="id038dfaca7e054ba1b4d37bdcaace58ae"><enum>(iii)</enum><text>may not be based on the volume of insurance to be purchased.</text></clause></subparagraph><subparagraph id="id1641290309b44b2fa41010096775ee2e"><enum>(D)</enum><header>Separate and distinct fees based on credit risk-sharing mechanisms</header><text>Nothing in subparagraph (C) shall prohibit or be construed to prohibit the Corporation from charging separate and distinct fees under this paragraph based on the type or form of credit risk-sharing mechanism applicable to the covered security to be insured under this title.</text></subparagraph><subparagraph id="idb19f88b33b894ee8a4b67f0595c69f23"><enum>(E)</enum><header>Deposit into Mortgage Insurance Fund</header><text>Any fee amounts collected under this paragraph shall be deposited in the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="idebbbfdfaf3b648a384d63f72a7ce7d0e"><enum>(9)</enum><header>Full faith and credit</header><text>The full faith and credit of the United States is pledged to the payment of all amounts from the Mortgage Insurance Fund which may be required to be paid under any insurance provided under this title.</text></paragraph><paragraph id="ide44c936978a34b688e3d7055138f3659"><enum>(10)</enum><header>Investments</header><subparagraph id="idA8D1329D03C741CBB98EEBD320D17EDA"><enum>(A)</enum><header>In general</header><text>The Board of Directors may request the Secretary of the Treasury to invest such portion of amounts in the Mortgage Insurance Fund that, in the judgment of the Board, is not required to meet the current needs of the Corporation.</text></subparagraph><subparagraph commented="no" id="id68B5EDFAA3B449F0810B32FACDB97CC0"><enum>(B)</enum><header>Eligible investments</header><text>Pursuant to a request under subparagraph (A), the Secretary of the Treasury shall invest such portions in obligations of the United States with maturities suitable to the needs of the Corporation, as determined by the Board, and bearing interest at a rate determined by the Secretary of the Treasury, taking into consideration, at the time of the investment, market yields on outstanding marketable obligations of the United States of comparable maturity.</text></subparagraph><subparagraph id="id59AA7A91F0DF43DBAD83A18FE614D11B"><enum>(C)</enum><header>Prohibited investments</header><text>Amounts in the Mortgage Insurance Fund may not be invested in any—</text><clause id="ide8c9e8c213a54050ba453ffe871a4425"><enum>(i)</enum><text>covered security insured under this title; or</text></clause><clause id="id94d28b8a17d742d0999dd5daf3c23975"><enum>(ii)</enum><text>mortgage-backed security issued by the enterprises.</text></clause></subparagraph></paragraph></subsection><subsection id="idd1282d0cf6b94007a4cf16958c4f5ac2"><enum>(f)</enum><header>Mandatory loss review by the Inspector General of the Federal Mortgage Insurance Corporation</header><paragraph id="id6a5015a73c674bd09b47378cfcbf5584"><enum>(1)</enum><header>In general</header><text>If the Mortgage Insurance Fund is required to make any payment of principal or interest, or both, on a covered security with respect to losses incurred on such covered security to any holder of such covered security, the Inspector General of the Federal Mortgage Insurance Corporation shall—</text><subparagraph id="id8004826fc80a48e9b1543876efb2b4b8"><enum>(A)</enum><text>review and make a written report to the Corporation regarding the decision of the Corporation to insure such covered security and the supervision by the Corporation of all market participants involved in the creation, issuance, servicing, guarantee of, or insurance of such covered security, which shall—</text><clause id="id66f499d751d74fbfb51f371501d8fd1f"><enum>(i)</enum><text>ascertain why the covered security resulted in a loss to the Mortgage Insurance Fund; and</text></clause><clause id="idfc7fa195865b4f68bb4c3d451cd9ce4f"><enum>(ii)</enum><text>make recommendations for preventing any such loss in the future; and</text></clause></subparagraph><subparagraph id="id8ab2030eb25446dfa8c8d79d08a833d6"><enum>(B)</enum><text>provide a copy of the report required under subparagraph (A) to—</text><clause id="id9b4b1353b053416e8c0145055c56c274"><enum>(i)</enum><text>the Comptroller General of the United States;</text></clause><clause id="id0c5ec00d3ab94977976acf4e5b28148d"><enum>(ii)</enum><text>the appropriate Federal banking agency or State regulatory authority, as appropriate, of any market participant involved in the creation, issuance, servicing, guarantee of, or insurance of such covered security; and</text></clause><clause id="idd8621c870ce541fb8cab7ef17687b92a"><enum>(iii)</enum><text>the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</text></clause></subparagraph></paragraph><paragraph id="id01ff517ff70345f98bd4c2605ef69377"><enum>(2)</enum><header>Deadline for report</header><text>The Inspector General of the Federal Mortgage Insurance Corporation shall comply with paragraph (1) as expeditiously as possible, but in no event shall the report required under paragraph (1) be submitted later than 6 months after the date on which the loss was incurred.</text></paragraph><paragraph id="iddc0a1b9573634e16a59c21d6da21b4d9"><enum>(3)</enum><header>Public disclosure required</header><subparagraph id="id684e56cb114a432f8d31eb0dfef60597"><enum>(A)</enum><header>In general</header><text>The Corporation shall disclose any report on losses required under this subsection, upon request under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States Code, without excising—</text><clause id="id4b9a13d2b3874f4c87a67bb233a8b772"><enum>(i)</enum><text>any portion under section 552(b)(5) of that title; or</text></clause><clause id="id798a6a49ae3d49cbaf6004506d4dc508"><enum>(ii)</enum><text>any information under paragraph (4) (other than trade secrets) or paragraph (8) of section 552(b) of that title.</text></clause></subparagraph><subparagraph id="id5ca659865ce84e9f9efd36ce1ad20275"><enum>(B)</enum><header>Exception</header><text>Subparagraph (A) does not require the Corporation to disclose the name of any holder of the covered security, or information from which the identity of such a person could reasonably be ascertained.</text></subparagraph></paragraph><paragraph id="id24ab218dccc845d59c6769bb55a69e95"><enum>(4)</enum><header>Review by Comptroller General</header><text>The Comptroller General of the United States shall, under such conditions as the Comptroller General determines to be appropriate, review any report made under paragraph (1) and recommend to the Corporation improvements in the supervision of market participants.</text></paragraph></subsection></section><section id="id790DCD4AC6D04FEC8FEFCC2779E90F0D"><enum>304.</enum><header>Loan limits; Housing Price Index</header><subsection id="idA91A3A9068A842298CD1E1709DA33A11"><enum>(a)</enum><header>Establishment</header><text>The Corporation shall establish limitations governing the maximum original principal obligation of eligible single-family mortgage loans that may collateralize a covered security to be insured by the Corporation under this title.</text></subsection><subsection id="idCF99C333B84B4347AFCB25BE34F2F4A4"><enum>(b)</enum><header>Calculation of amount</header><text>The limitation set forth under subsection (a) shall be calculated with respect to the total original principal obligation of the eligible single-family mortgage loan and not merely with respect to the amount insured by the Corporation.</text></subsection><subsection id="id632FE3239837488284A221717B98B65A"><enum>(c)</enum><header>Maximum limits</header><paragraph id="id67E1B11C3CA14830A4247349871F7D70"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the maximum limitation amount under this subsection shall not exceed $417,000 for a mortgage loan secured by a 1-family residence, for a mortgage loan secured by a 2-family residence the limit shall equal 128 percent of the limit for a mortgage loan secured by a 1-family residence, for a mortgage loan secured by a 3-family residence the limit shall equal 155 percent of the limit for a mortgage loan secured by a 1-family residence, and for a mortgage loan secured by a 4-family residence the limit shall equal 192 percent of the limit for a mortgage loan secured by a 1-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the effective date of this Act, subject to the limitations in this paragraph. Each adjustment shall be made by adding to each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase, during the most recent 12-month or 4-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained by the Chairperson pursuant to subsection (d). If the change in such house price index during the most recent 12-month or 4-quarter period ending before the time of determining such annual adjustment is a decrease, then no adjustment shall be made for the next year, and the next upward adjustment shall take into account prior declines in the house price index, so that any adjustment shall reflect the net change in the house price index since the last adjustment. Declines in the house price index shall be accumulated and then reduce increases until subsequent increases exceed prior declines.</text></paragraph><paragraph id="idA08A8109191D42FE8D44FF7A79ECC077"><enum>(2)</enum><header>High-cost area limits</header><text>The limitations set forth in paragraph (1) may be increased by not more than 50 percent with respect to properties located in Alaska, Guam, Hawaii, and the Virgin Islands. Such foregoing limitations shall also be increased, with respect to properties of a particular size located in any area for which 115 percent of the median house price for such size residence exceeds the limitation for such size residence set forth under paragraph (1), to the lesser of 150 percent of such limitation for such size residence or the amount that is equal to 115 percent of the median house price in such area for such size residence.</text></paragraph></subsection><subsection id="idAA5BEC1599CC4949B3A898266DDA0A92"><enum>(d)</enum><header>Housing Price Index</header><paragraph id="id08CCB81FF132410D8229271CB2896C32"><enum>(1)</enum><header>National Index</header><text>The Corporation shall establish and maintain a method of assessing a national average single-family house price for use in calculating the loan limits for eligible single-family mortgage loans under subsection (c), and other averages as the Corporation considers appropriate, including—</text><subparagraph id="id19ab8bbfb96e46c2ad9da9e4605c5d11"><enum>(A)</enum><text>averages based on different geographic regions; and</text></subparagraph><subparagraph id="id37c65afb66424b4e9c6b1f7bd60f3c48"><enum>(B)</enum><text>an average for houses whose mortgage collateralized single-family covered securities.</text></subparagraph></paragraph><paragraph id="id03c8ae40b11c4d6aa4f970f582597203"><enum>(2)</enum><header>Considerations</header><text>In establishing the method described under subsection (a), the Corporation may take into consideration the data collected in carrying out the functions described under section 332, and such other data, existing house price indexes, and other measures as the Corporation considers appropriate.</text></paragraph></subsection></section><section id="idD74B4C9584584F9DB07D89A42FDB6BB2"><enum>305.</enum><header>Authority to protect taxpayers in unusual and exigent market conditions</header><subsection id="id0989076be02c4fa9a63fe1e03b7d6fea"><enum>(a)</enum><header>In general</header><text>If the Corporation, upon the written agreement of the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, and in consultation with the Secretary of Housing and Urban Development, determines that unusual and exigent circumstances have created or threaten to create an anomalous lack of mortgage credit availability within the single-family housing market, multifamily housing market, or entire United States housing market that could materially and severely disrupt the functioning of the housing finance system of the United States, the Corporation may, for a period of 6 months—</text><paragraph id="id68c89bd7d209428aa30161246ba69d5b"><enum>(1)</enum><text>provide insurance in accordance with section 303 to any single-family covered security regardless of whether such security has satisfied the requirements of section 302; and</text></paragraph><paragraph id="id7f7561043c19452fb995c7a89c61d5b7"><enum>(2)</enum><text>establish provisional standards for approved entities, notwithstanding any standard required under subtitle B or section 703, pursuant to section 607.</text></paragraph></subsection><subsection id="id9223434bd815448d80a34618eae2b5d6"><enum>(b)</enum><header>Considerations</header><text>In exercising the authority granted under subsection (a), the Corporation shall consider the severity of the conditions present in the housing markets and the risks presented to the Mortgage Insurance Fund in exercising such authority.</text></subsection><subsection id="idfff2451ac2e442f6bba61cb5e6086b54"><enum>(c)</enum><header>Terms and conditions</header><text>Insurance provided under subsection (a) shall be subject to such additional or different limitations, restrictions, and regulations as the Corporation may prescribe.</text></subsection><subsection id="id597a187ee3c94f048fdb7d070987f4c4"><enum>(d)</enum><header>Bailout strictly prohibited</header><text>In exercising the authority granted under subsection (a), the Corporation may not—</text><paragraph id="id1ead2c7400474a9492065fd80e124f01"><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="id11960ce3ca1245079a843a6dcf8c0c11"><enum>(2)</enum><text>provide aid for the purpose of assisting a single and specific company to avoid bankruptcy or any other Federal or State insolvency proceeding.</text></paragraph></subsection><subsection id="id691165747b974032a95df0f1dee77235"><enum>(e)</enum><header>Notice</header><text>Not later than 7 days after authorizing insurance or establishing provisional standards under subsection (a), the Corporation shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes—</text><paragraph id="id667df88b386344a5b5167485f0be1aa3"><enum>(1)</enum><text>the justification for the exercise of authority to provide such insurance or establish such provisional standards;</text></paragraph><paragraph id="idced17e8669ff4f31be0decaaf9c0e915"><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="id42c2758356c84b23b83165d1f51aaffb"><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="idad26e70ab53047849613205fed7089a9"><enum>(f)</enum><header>Additional exercise of authority</header><paragraph id="id4D7744831E42495CAC1B66068A989D39"><enum>(1)</enum><header>In general</header><text>Subject to the limitation under subsection (g), the authority granted to the Corporation under subsection (a) may be exercised for 2 additional 9-month periods within any given 3-year period, provided that the Corporation, upon the written agreement of the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, and in consultation with the Secretary of Housing and Urban Development—</text><subparagraph id="ida5a2783fa7164624ba0669558d9da869"><enum>(A)</enum><text>determines—</text><clause id="id9810079B75204487A060C5E8FE12A505"><enum>(i)</enum><text>for a second exercise of authority under subsection (a), by an affirmative vote of <fraction>2/3</fraction> or more of the Board of Directors then serving, that a second exercise of authority under subsection (a) is necessary; or</text></clause><clause id="idC8224932F7B04F9CBEF5513DF2F23651"><enum>(ii)</enum><text>for a third exercise of authority under subsection (a), by an affirmative vote of <fraction>2/3</fraction> or more of the Board of Directors then serving, 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="idD403008CDB0144FBA339453C62E00BD0"><enum>(B)</enum><text>provides notice to Congress, as provided under subsection (e).</text></subparagraph></paragraph><paragraph id="id18B321C6C02548B2A72F1D2E3E1D1477"><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="idd0c891d82d3c48d296b6145a465a8fa2"><enum>(g)</enum><header>Limitation</header><text>The authority granted to the Corporation under this section may not be exercised more than 3 times in any given 3-year period, which 3-year period shall commence upon the initial exercise of authority under subsection (a).</text></subsection><subsection id="idb3c335d0e8d245989ddcf31bc534cf2f"><enum>(h)</enum><header>Normalization and reduction of risk</header><text>Following any exercise of authority under this section, the Corporation shall—</text><paragraph id="idB754603D4CA941C3BBF1417DE0E38C11"><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="id10BAB661A8F04A32B6A2E56F0B2B3B16"><enum>(2)</enum><text>in a manner and pursuant to a timeline that will minimize losses to the Mortgage Insurance Fund, establish a program to either—</text><subparagraph id="idBF8E67A263514F9AAD87623FAEBE2867"><enum>(A)</enum><text>sell, in whole or in part, the first loss position on covered securities issued pursuant to this section to private market holders; or</text></subparagraph><subparagraph id="idBBC38E2A09FF43B3A55C6DD755D2BB98"><enum>(B)</enum><text>transfer for value to approved entities, or work with approved entities to sell, in whole or in part, the first lost position on covered securities issued pursuant to this section.</text></subparagraph></paragraph></subsection><subsection id="idA9A6797F615F47328477E3552549F72F"><enum>(i)</enum><header>Authority to respond to sustained national home price decline</header><paragraph id="idAA3445CE057644CE90C0A6F6187C08BB"><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, the Corporation, by an affirmative vote of <fraction>2/3</fraction> or more of the Board of Directors then serving, may for a period of 6 months permit the transfer of guarantees of eligible mortgage loans that secure covered securities if such eligible mortgage loans are refinanced, regardless of the value of the underlying collateral securing such eligible mortgage loans.</text></paragraph><paragraph id="id8B7B6049ADB94F20A91DE1514E36C1D7"><enum>(2)</enum><header>Additional exercise of authority</header><text>The authority granted to the Corporation under paragraph (1) may be exercised for additional 6-month periods, if upon each additional extension of such authority there is an affirmative vote of <fraction>2/3</fraction> or more of the Board of Directors then serving.</text></paragraph><paragraph id="id5481A125C86C43FF8FF0DCE018DA0979"><enum>(3)</enum><header>Limitation</header><text>The Corporation shall not provide insurance under this section to any covered security that includes mortgage loans that do not meet the definition of an eligible mortgage loan, as defined in this Act, except for mortgage loans refinanced from eligible mortgage loans in covered securities.</text></paragraph><paragraph id="id377CF9CFA4F840F59B4CF15B96A8E8FD"><enum>(4)</enum><header>Rule of construction</header><text>No provision in this section shall be construed as permitting the Corporation to lower any other requirement related to the requirements set forth under the definition of an eligible mortgage loan.</text></paragraph></subsection></section><section id="id2c88e488495949e5958d08a135baccfa"><enum>306.</enum><header>General powers</header><subsection id="id184beb7e663648aaa42088d043d8d15e"><enum>(a)</enum><header>Corporate powers</header><text>The Federal Mortgage Insurance Corporation shall have the power—</text><paragraph id="id86e872df421f4b309585b7b66bffa06a"><enum>(1)</enum><text>to adopt, alter, and use a corporate seal, which shall be judicially noticed;</text></paragraph><paragraph id="ida9b43bae4aa54478b4795fef0a752055"><enum>(2)</enum><text>to enter into, execute, and perform contracts, leases, cooperative agreements, or other transactions, on such terms as it may deem appropriate, with any agency or instrumentality of the United States, or with any political subdivision thereof, or with any person, firm, association, or corporation;</text></paragraph><paragraph id="id9fa9eece43eb4d118e2086a2ffb6ac26"><enum>(3)</enum><text>to execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers;</text></paragraph><paragraph id="id965cdf82d7e94097af0b4e35b34df713"><enum>(4)</enum><text>in its corporate name, to sue and to be sued, and to complain and to defend, in any court or tribunal of competent jurisdiction, Federal or State, but no attachment, injunction, or other similar process, mesne or final, shall be issued against the property of the Corporation;</text></paragraph><paragraph id="id9b4013674b2a4b99a679f74ee0b11e29"><enum>(5)</enum><text>to conduct its business without regard to any qualification or similar statute in any State of the United States;</text></paragraph><paragraph id="id605c384ab96f4eb1a24f727690d3711e"><enum>(6)</enum><text>to lease, purchase, or acquire any property, real, personal, or mixed, or any interest therein, to hold, rent, maintain, modernize, renovate, improve, use, and operate such property, and to sell, for cash or credit, lease, or otherwise dispose of the same, at such time and in such manner as and to the extent that it may deem necessary or appropriate;</text></paragraph><paragraph id="id816c1abbc69e47a0addec19574c27fe4"><enum>(7)</enum><text>to prescribe, repeal, and amend or modify, rules, regulations, or requirements governing the manner in which its general business may be conducted;</text></paragraph><paragraph id="id03d06af9381c4880a009fcb50972b7ed"><enum>(8)</enum><text>to accept gifts or donations of services, or of property, real, personal, or mixed, tangible, or intangible, in aid of any of its purposes;</text></paragraph><paragraph id="idd5e1538a84f44a6c887995c8b32572a1"><enum>(9)</enum><text>to appoint and supervise personnel employed by the Corporation;</text></paragraph><paragraph id="idf305a0cdac0b45a0b0789a96ce94c29b"><enum>(10)</enum><text>to establish and maintain divisions, units, or other offices within the Corporation, including those established in sections 207, 208, 209, and 211 in order to carry out the responsibilities of this Act, and to satisfy the requirements of other applicable law; and</text></paragraph><paragraph id="id4a6dfcbef2d3444281ff44d00af73b9c"><enum>(11)</enum><text>to manage the affairs of the Corporation and conduct the business of the Corporation, as necessary.</text></paragraph></subsection><subsection id="id546ef0c72ec242f99718b97e89ca47c4"><enum>(b)</enum><header>Litigation authority</header><paragraph id="idf268677655b94d16bc4112135261a930"><enum>(1)</enum><header>In general</header><text>In enforcing any provision of this Act, any regulation or order prescribed under this Act, or any other provision of law, rule, regulation, or order, or in any other action, suit, or proceeding to which the Corporation is a party or in which the Corporation is interested, and in the administration of conservatorships and receiverships, the Corporation may act in the Corporation’s own name and through attorneys or other agents acting on behalf of the Corporation.</text></paragraph><paragraph id="id9530feee8424460db63a48c3b4f691d0"><enum>(2)</enum><header>Subject to suit</header><text>Except as otherwise provided by law, the Corporation shall be subject to suit (other than suits for claims for money damages) by a regulated entity or market participant with respect to any matter under this Act or any other applicable provision of law, rule, order, or regulation under this Act, in the United States district court for the judicial district in which the regulated entity or market participant has its principal place of business, or in the United States District Court for the District of Columbia, and the Corporation may be served with process in the manner prescribed by the Federal Rules of Civil Procedure.</text></paragraph></subsection><subsection id="id6a3b14dab66342c39e8d2bc20f44f031"><enum>(c)</enum><header>Expenditures</header><text>Except as may be otherwise provided in this title, the Corporation shall determine the necessity for, and the character and amount of its obligations and expenditures, and the manner in which they shall be incurred, allowed, paid, and accounted for.</text></subsection><subsection id="ida9978e671bf24219b8a70e2ba0222d45"><enum>(d)</enum><header>Exemption from certain taxes</header><text>The Corporation, including its franchise, capital, reserves, surplus, mortgage loans or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property of the Corporation shall be subject to State, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.</text></subsection><subsection id="id00dfe16a3f9b467b96afa5c0744acd2c"><enum>(e)</enum><header>Exclusive use of name</header><text>No individual, association, partnership, or corporation, except the body corporate named under section 201, shall hereafter use the words <quote>Federal Mortgage Insurance Corporation</quote> or any combination of such words, as the name or a part thereof under which such individual, association, partnership, or corporation shall do business. Violations of the foregoing sentence may be enjoined by any court of general jurisdiction at the suit of the proper body corporate named under section 201. In any such suit, the plaintiff may recover any actual damages flowing from such violation, and, in addition, shall be entitled to punitive damages (regardless of the existence or nonexistence of actual damages) of not exceeding $1,000 for each day during which such violation is committed or repeated.</text></subsection><subsection id="id3a400bd870034dc1a1a944c1c6ca0aeb"><enum>(f)</enum><header>Fiscal agents</header><text>The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for the Corporation, for its own account or as fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon, and the Corporation may itself act in such capacities, for its own account or as fiduciary, and for the account of others.</text></subsection><subsection id="id609f3a51a02f4b8fbdb4e2b7dfc14704"><enum>(g)</enum><header>Other powers</header><text>The Corporation is authorized to assess and collect fees on regulated entities and approved entities, including for applications, examinations, and other purposes, as authorized by this Act.</text></subsection><subsection id="id98A0EA578E7E4107A3CC59904FE0D16D"><enum>(h)</enum><header>Federal Home Loan Bank assessment</header><text>The Corporation shall have the authority to assess a fee on the Federal Home Loan Banks to cover the necessary costs related to supervising the Federal Home Loan Banks. The costs associated with the secondary market activities of the Federal Home Loan Banks pursuant to section 312 shall be covered by the fee charged pursuant to this subsection.</text></subsection><subsection id="idB25BEE517D8B4FE1BB703F1F518168D0"><enum>(i)</enum><header>Rule of construction related to fair housing</header><text>Nothing in this Act shall be construed as authorizing the Corporation to waive, repeal, amend, or modify requirements relating to fair housing law, including those requirements under the Fair Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/3601">42 U.S.C. 3601 et seq.</external-xref>) and the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691">15 U.S.C. 1691 et seq.</external-xref>).</text></subsection></section><section id="id9fb9cbc5656a4233a991da5e3b2c07e4"><enum>307.</enum><header>Exemptions</header><subsection id="id5f1c2c7348d94b439d7cae2e7d3a46eb"><enum>(a)</enum><header>Securities exempt from Securities and Exchange Commission regulation</header><paragraph id="ida5460120f4b14a618c63fa218b019b7d"><enum>(1)</enum><header>Covered securities</header><subparagraph id="id354ff1e26c034d759a0b64e7feef877d"><enum>(A)</enum><header>In general</header><text>All securities insured or guaranteed by the Corporation shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.</text></subparagraph><subparagraph id="id454baeb251934c2c8a958953e388c3dc"><enum>(B)</enum><header>Conforming amendment</header><text>The first sentence of section 3(a)(2) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77c">15 U.S.C. 77c(a)(2)</external-xref>) is amended by inserting <quote>or any security insured or guaranteed by the Federal Mortgage Insurance Corporation;</quote> after <quote>Federal Reserve bank;</quote>.</text></subparagraph></paragraph><paragraph id="id209547d5acfc4399aa089833f8502f3e"><enum>(2)</enum><header>Credit risk-sharing mechanisms</header><text>Section 27B(c) of the Securities Act of 1933 (15 U.S.C. 77z-2a(c)) is amended—</text><subparagraph id="idff519eca8b5a451699de18b19a5a107f"><enum>(A)</enum><text>in paragraph (1), by striking <quote>or</quote> at the end;</text></subparagraph><subparagraph id="idd053fb822ac143cf9706136c9f72e305"><enum>(B)</enum><text>in paragraph (2), by striking the period at the end and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="id4b45819ffd9b4167becff303547a330d"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idac4ad4eb7e5e492d940476d4fe8ed346" reported-display-style="italic" style="OLC"><paragraph id="id848bd21a99d44d26b4d5b3aa841db552"><enum>(3)</enum><text>purchases or sales of any asset-backed security that is a credit risk-sharing mechanism approved by the Federal Mortgage Insurance Corporation in accordance with section 302 or section 703(c) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>, which credit risk-sharing mechanism is designed to be used or is used, as determined by the Federal Mortgage Insurance Corporation, by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any pool of eligible mortgage loans that collateralizes a covered security insured in accordance with section 303 or 305 of that Act.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id52b87d8c43d64969b5bb709ebfd05f13"><enum>(b)</enum><header>QRM exemption</header><text>Section 15G(e) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-11">15 U.S.C. 78o–11(e)</external-xref>) is amended—</text><paragraph id="idb2c560ed50fc40a4a15f9bc48ba709ed"><enum>(1)</enum><text>in paragraph (3)(B)—</text><subparagraph id="id5044d09948eb46749a4542b34e4dfae4"><enum>(A)</enum><text>by striking <quote>Association, the</quote> and inserting <quote>Association and the</quote>; and</text></subparagraph><subparagraph id="id5f0aa70f86444af1a62dc427e97fd651"><enum>(B)</enum><text>by striking <quote>and the Federal home loan banks</quote>; and</text></subparagraph></paragraph><paragraph id="ida8a37d71ac264db4a7422274dabae2a1"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id01293094a4f44325b8e52ed0341e48df" reported-display-style="italic" style="OLC"><paragraph id="id7dc481c458d0432f89fa9dde1d60770a"><enum>(7)</enum><header>Covered securities insured by the Federal Mortgage Insurance Corporation</header><text>Notwithstanding any other provision of this section, the requirements of this section shall not apply to any covered security, as such term is defined under section 2 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>, insured or guaranteed by the Federal Mortgage Insurance Corporation or any institution that is subject to the supervision of the Federal Mortgage Insurance Corporation.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id011b631a1c6f4bc7a443f5a1c5eb32e0"><enum>(c)</enum><header>Counterparties exempt from the Commodity Exchange Act</header><text>Section 1a(10) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a(10)</external-xref>) is amended by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="ida1bceff1b75c48538d1e5d26e9c65e7c" reported-display-style="italic" style="OLC"><subparagraph id="id3fbee83eb0634500b2768dce69be7200"><enum>(C)</enum><header>Exemption</header><text>Solely as it relates to the specific role of a counterparty in connection with the swap transaction described in this paragraph, the term <term>commodity pool</term> does not include any counterparty that enters into any swap for purposes of structuring a credit risk-sharing mechanism that is approved by the Federal Mortgage Insurance Corporation in accordance with section 302 or section 703(c) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>, which credit risk-sharing mechanism is designed to be used or is used, as determined by the Federal Mortgage Insurance Corporation, by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any pool of eligible mortgage loans that collateralizes a covered security insured in accordance with section 303 or 305 of that Act.</text></subparagraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection></section><section commented="no" display-inline="no-display-inline" id="idF151B7E8484B4749ADD26DC9E5CA73BA"><enum>308.</enum><header>Regulatory consultation and coordination</header><subsection id="id995b5007eaa6456ab6bb07832694966f"><enum>(a)</enum><header>Consultation permitted</header><text>The Corporation may, in carrying out any duty, responsibility, requirement, or action authorized under this Act, consult with the Federal regulatory agencies, any individual Federal regulatory agency, the Secretary of the Treasury, the Secretary of Housing and Urban Development, any State banking regulator, any State insurance regulator, and any other State agency, as the Corporation determines necessary and appropriate.</text></subsection><subsection id="idb81fd2458a534c39aa08b7236009f329"><enum>(b)</enum><header>Coordination required</header><text>The Corporation shall, as required by this Act, in carrying out any duty, responsibility, requirement, or action authorized under this Act, coordinate with the Federal regulatory agencies, any individual Federal regulatory agency, the Secretary of the Treasury, the Secretary of Housing and Urban Development, any State banking regulator, any State insurance regulator, and any other State agency.</text></subsection><subsection id="idc9ca62aa4c20454da1693023457114ce"><enum>(c)</enum><header>Avoidance of duplication</header><text>To the fullest extent possible, the Corporation shall—</text><paragraph id="idaf276f67c0ba43a7b14e2a3313324229"><enum>(1)</enum><text>avoid duplication of examination activities, reporting requirements, and requests for information;</text></paragraph><paragraph id="idb08836bae4a845fcab7d89ebe2710bc6"><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="id9c624e649b6d477e872306d8b8f7a32e"><enum>(3)</enum><text>ensure that approved entities are not subject to conflicting supervisory demands by the Corporation and other Federal regulatory agencies.</text></paragraph></subsection><subsection id="id10937d296ef142a0a3969dbcf1f61e95"><enum>(d)</enum><header>Protection of privileges</header><paragraph id="idc9cde6944ed04888affbfcf7cb32b4bd"><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 Corporation may share information with the Federal regulatory agencies, any individual Federal regulatory agency, the Secretary of the Treasury, the Secretary of Housing and Urban Development, any State bank supervisor, any State insurance regulator, any other State agency, or any foreign banking authority, on a one-time, regular, or periodic basis, as determined by the Corporation, regarding the capital assets and liabilities, financial condition, risk management practices, or any other practice of any market participant.</text></paragraph><paragraph id="id991a65834c0743aea10239f98d9bd422"><enum>(2)</enum><header>Privilege preserved</header><text>Information shared by the Corporation pursuant to paragraph (1) shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that any market participant or any other person may claim with respect to such information under Federal or State law as to any person or entity other than such agencies, agency, supervisor, or authority.</text></paragraph><paragraph id="idba8918be9d294dd59bdd546abc4a0c9c"><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="id68138a23e9df4330a5b31c4b46ddcb12"><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="id2175546338e4435f833812053d63150f"><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="idAD0CA6DC3340414BBBA8020A7F0EABB1"><enum>(e)</enum><header>Federal and State 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 or State regulatory authority.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id68259C8170564319ABF44FD1CD3BC84A"><enum>309.</enum><header>Authority to issue regulations</header><subsection commented="no" display-inline="no-display-inline" id="id7DF9FEEF81C34533823006C5FDD04EA3"><enum>(a)</enum><header>General authority</header><text>The Corporation may prescribe such regulations and issue such guidelines, orders, requirements, or standards as are necessary to—</text><paragraph commented="no" display-inline="no-display-inline" id="idF2DF5FC0AED142FF977283F8705E0DA5"><enum>(1)</enum><text>carry out this Act, or any amendment made by this Act; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8E064F8BCEC142298D67107A73350D0F"><enum>(2)</enum><text>ensure—</text><subparagraph id="id74650257990b4c43b0a883ac7624cffc"><enum>(A)</enum><text>competition among approved entities in the secondary mortgage market;</text></subparagraph><subparagraph id="iddc5b636ea42c4ca8a1cfd22bc2894c63"><enum>(B)</enum><text>liquidity in the secondary mortgage market and the forward execution market for eligible single-family mortgage loans and single-family covered securities, such as the To-Be-Announced market; and</text></subparagraph><subparagraph id="id8f09c9a284d74ae89de10eb7b7e04b87"><enum>(C)</enum><text>mitigation of systemic risk in the secondary mortgage market.</text></subparagraph></paragraph></subsection><subsection id="ide549b8bdd27c43299533f01c63655bc7"><enum>(b)</enum><header>Capital standards</header><paragraph id="id7dc565d8f74a4566a735fd35d177444d"><enum>(1)</enum><header>In general</header><text>For each type of covered entity the Corporation shall establish, by regulation, capital standards and related solvency standards necessary to implement the provisions of this Act.</text></paragraph><paragraph id="idca2e9e87ded34b5790dfae6c20ee714a"><enum>(2)</enum><header>Definitions</header><subparagraph id="id600C93D87E56419DAFF4658A48412864"><enum>(A)</enum><header>In general</header><text>The regulations required under this subsection shall define all such terms as are necessary to carry out the purposes of this subsection.</text></subparagraph><subparagraph id="idEF6380E7B32C48F59494C0A5152AA298"><enum>(B)</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), the Corporation—</text><clause id="id224488FBFA65481E94893DCB576AAC93"><enum>(i)</enum><text>shall include such instruments and contracts that will absorb losses before the Mortgage Insurance Fund; and</text></clause><clause id="id446FE748B04D48BF91CD3CC05C7D4896"><enum>(ii)</enum><text>may assign significance to those instruments and contracts based on the nature and risks of such instruments and contracts.</text></clause></subparagraph><subparagraph id="id73660ff6ab304e9780770d008b5d0a9c"><enum>(C)</enum><header>Considerations in defining capital ratios</header><text>Solely for the purposes of calculating a capital ratio appropriate to the business model of the applicable entity pursuant to subparagraph (A), the Corporation shall consider for the denominator—</text><clause id="id4FA2D07D0BAA40D797C652ED3F512F01"><enum>(i)</enum><text>total assets;</text></clause><clause id="id116FCD728BC34324945B7387151789C4"><enum>(ii)</enum><text>total liabilities;</text></clause><clause id="idB9528473D48642428221880C7AFBE849"><enum>(iii)</enum><text>risk in force; or</text></clause><clause id="id80B30770EC3B4343BC884A9589370DF9"><enum>(iv)</enum><text>unpaid principal balance.</text></clause></subparagraph></paragraph><paragraph id="id503053edcdbc4367aef77efdd10b6cab"><enum>(3)</enum><header>Designed to ensure safety and soundness</header><text>The capital and related solvency standards established under this subsection shall be designed to—</text><subparagraph id="idc80d4c630d4046ed962fd0c83712c4b4"><enum>(A)</enum><text>ensure the safety and soundness of a covered entity;</text></subparagraph><subparagraph id="ide977da97a48f4afa880cc14b3ca5d313"><enum>(B)</enum><text>minimize the risk of loss to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="id4b3970143ba04a7fb05c25ff8f722b1d"><enum>(C)</enum><text>in consultation and coordination with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration, reduce the potential for regulatory arbitrage between capital standards for covered entities and capital standards promulgated by Federal regulatory agencies for insured depository institutions and their affiliates; and</text></subparagraph><subparagraph id="ideb65b102ad914f34927c4a66897247e0"><enum>(D)</enum><text>be specifically tailored to accommodate a diverse range of business models that may be employed by covered entities.</text></subparagraph></paragraph><paragraph id="idb1283b6cf0be41e991fb6e469763010e"><enum>(4)</enum><header>Supplemental capital requirements</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 covered entities that are large approved aggregators or large approved guarantors that engage in covered guarantee transactions, the Corporation, by regulation—</text><subparagraph id="idE14F6EDF0C3243169D641368AB996D34"><enum>(A)</enum><text>shall establish supplemental capital requirements for covered entities that are large approved aggregators or large approved guarantors; and</text></subparagraph><subparagraph id="id55846DE75C184464A114652E15A8063D"><enum>(B)</enum><text>may establish such other standards for covered entities that are large approved aggregators or large approved guarantors that the Corporation determines necessary or appropriate.</text></subparagraph></paragraph></subsection><subsection id="id3e3bd452b68b400f93ede152f3736a64"><enum>(c)</enum><header>Market share limitation for certain large entities</header><text>The Corporation shall establish, by regulation, market share limitations for large approved aggregators and large approved guarantors that would take effect only in the event the Corporation has reason to believe the supplemental standards established under subsection (b)(4) are insufficient to prevent or mitigate risks to the secondary mortgage market of the United States that could arise from the material financial distress or failure, or ongoing activities, of such approved aggregators and approved guarantors.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id9EC499D0D1284842AEDC76C7CB3C5140"><enum>(d)</enum><header>Recognition of distinctions between the approved entities and the Federal Home Loan Banks</header><paragraph commented="no" display-inline="no-display-inline" id="idAD931638FAE7492B93D2A0CE509A92F9"><enum>(1)</enum><header>In general</header><text>Prior to promulgating any regulation or taking any other formal or informal action of general applicability and future effect relating to the Federal Home Loan Banks, including the issuance of an advisory document or examination guidance, the Chairperson, in consultation with the Office of Federal Home Loan Bank Supervision, shall consider the differences between the Federal Home Loan Banks and approved entities with respect to—</text><subparagraph id="ideee6ceafa20d41e8a98c3d749d4cb12b"><enum>(A)</enum><text>the Banks’—</text><clause id="id1e8100b96c694bb9ace3eb18876922ae"><enum>(i)</enum><text>cooperative ownership structure;</text></clause><clause id="id9fc32fdced124375aa1ff8247cbb7d67"><enum>(ii)</enum><text>mission of providing liquidity to its members;</text></clause><clause id="ide11d86d922d348a096753d916033aa6b"><enum>(iii)</enum><text>affordable housing and community development mission;</text></clause><clause id="ide0ff75816c784c9ab97b6d1dfee2c0bc"><enum>(iv)</enum><text>capital structure; and</text></clause><clause id="id47cbab5865dc4d1cb55c4616e6fb20c1"><enum>(v)</enum><text>joint and several liability; and</text></clause></subparagraph><subparagraph id="idffff1ea8fef54a0daa0c4835847bff20"><enum>(B)</enum><text>any other differences that the Corporation considers appropriate.</text></subparagraph></paragraph><paragraph id="id710bb50087c64f5cbc64f78e7eab7552"><enum>(2)</enum><header>Capital considerations</header><text>The Corporation, in coordination with the Office of Federal Home Loan Bank Supervision, shall establish capital standards, as required under section 309(b), with respect to a Federal Home Loan Bank, or subsidiary or joint office thereof, that is approved as an aggregator under section 312, that—</text><subparagraph id="idb28a5efb53454133a93426bba0ba670e"><enum>(A)</enum><text>are adequate to support the role of a Federal Home Loan Bank as a covered entity, consistent with the safe and sound operations of the Bank or Banks involved; and</text></subparagraph><subparagraph id="id5c486dea9b37498f9effc66c06ea4ffc"><enum>(B)</enum><text>do not adversely impact the traditional liquidity and advance business of the Federal Home Loan Bank System or the marketability or creditworthiness of Federal Home Loan Bank consolidated obligations.</text></subparagraph></paragraph></subsection><subsection id="idD89DA1CBF7EF480C89DB739B1E25F92B"><enum>(e)</enum><header>Regulations relating to force-placed insurance</header><paragraph id="idF1BC2A67EA5247C49FEDF26FFE33A475"><enum>(1)</enum><header>In general</header><text>The Corporation shall, by regulation, set standards for the purchase of force-placed insurance by market participants.</text></paragraph><paragraph id="idc8d8e4b4592e49a48b392e2a82b824b0"><enum>(2)</enum><header>Limitation</header><text>No standards developed, adopted, or published under paragraph (1) shall concern the regulation of the business of insurance or preempt any State law, regulation, or procedure concerning the regulation of the business of insurance.</text></paragraph></subsection><subsection id="idca406e842927454e9b7b74f7f9bac56c"><enum>(f)</enum><header>Use and protection of personally identifiable information</header><paragraph id="idDBFA065EC40D48858796F53190C6A209"><enum>(1)</enum><header>Privacy considerations</header><text>In collecting information from any person, in publicly releasing information held by the Corporation, or in requiring approved entities to publicly report information, the Corporation shall take steps to ensure that proprietary, personal, or confidential consumer information that is protected from public disclosure under section <external-xref legal-doc="usc" parsable-cite="usc/5/552">552(b)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/5/552a">552a</external-xref> of title 5, United States Code, or any other provision of law, is not made public.</text></paragraph><paragraph id="idaf56d989865b440098c7121bd85c8146"><enum>(2)</enum><header>Treatment of approved entities</header><text>With respect to the application of any provision of the Right to Financial Privacy Act of 1978 to a disclosure by an approved entity subject to this subsection, the approved entity shall be treated as if it were a <quote>financial institution</quote> as defined in section 1101 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/12/3401">12 U.S.C. 3401</external-xref>).</text></paragraph><paragraph id="id6CC2F80D287D4D42857AB59B8C447F65"><enum>(3)</enum><header>Non disclosure</header><subparagraph id="id39A47E72B4144444AD1411CF5AFF4667"><enum>(A)</enum><header>In general</header><text>Unless otherwise specified by this Act, any personally identifiable information obtained or maintained by the Corporation in connection with any supervision or enforcement authority or function, including the Office of General Counsel and Office of the Inspector General of the Federal Mortgage Insurance Corporation, may not be disclosed to any non supervisory or non enforcement office, division, or employee of the Corporation, or to any other Federal or State agency unless—</text><clause id="id7FC12A9AEBB1452EA97BB2188BE37331"><enum>(i)</enum><text>the information is necessary and appropriate for such office, division, or employee of the Corporation to comply with this Act, and the office, division, or employee cannot reasonably obtain the information through the normal course of business of such office, division, or employee;</text></clause><clause id="idFD6675F4C1854656A39390CA6CBA7D99"><enum>(ii)</enum><text>the other Federal or State agency has satisfied any conditions of information sharing that the Corporation may establish, including treatment of personally identifiable information and sharing of information that shall conform to the standards for protection of the confidentiality of personally identifiable information and for data integrity and security that are applicable to Federal agencies; or</text></clause><clause id="id6F20BB82B7374BCB987DBA264BFC144B"><enum>(iii)</enum><text>the records are relevant to a legitimate law enforcement inquiry, or intelligence or counterintelligence activity, investigation, or analysis related to international terrorism within the jurisdiction of the receiving entity.</text></clause></subparagraph><subparagraph id="id55326c58dbe7406791e7a7891bd28a10"><enum>(B)</enum><header>Protection of personally identifiable information by specific offices</header><text>Any office created under section 207(a)(1)(B) shall—</text><clause id="idef85f0bd5c6c4ae4b0ff405fdbc62ad8"><enum>(i)</enum><text>develop standards regarding treatment and confidentiality of personally identifiable information and the collection and sharing of information that are tailored to the purpose or mission of the office; and</text></clause><clause id="id7c2f72ac139a4d5dae9336beefd30516"><enum>(ii)</enum><text>obtain approval from the Chairperson of the standards developed under clause (i) prior to the operation of the office.</text></clause></subparagraph></paragraph></subsection><subsection id="iddeb93bd575ce4c4098a7455a29610e9d"><enum>(g)</enum><header>Consumer Privacy</header><text>The Corporation shall not obtain from an approved entity any personally identifiable financial information about a consumer from the financial records of the approved entity, except—</text><paragraph id="id391400b1a88641ac847c30fac6869fc7"><enum>(1)</enum><text>if the financial records are reasonably described in a request by the Corporation and the consumer provides written permission for the disclosure of such information by an approved entity to the Corporation; or</text></paragraph><paragraph id="id217d0c0d7b024e5282cc09f0812a0a85"><enum>(2)</enum><text>as may be specifically permitted or required under other applicable provisions of law and in accordance with the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.).</text></paragraph></subsection><subsection id="id86da8999961041b3a528ad490aa0779d"><enum>(h)</enum><header>Option for approved guarantors and approved aggregators</header><paragraph id="id3a4ccbbe62874906af45d764f0836ba6"><enum>(1)</enum><header>Establishment of process for approval</header><text>The Corporation may, if it determines necessary or appropriate, establish a process and criteria for approved guarantors and approved aggregators to apply to the Corporation for approval to operate a cash window for the purchase of individual eligible single-family mortgage loans.</text></paragraph><paragraph id="id5880a5a97faa4d70960c1fe4dd2c5b2d"><enum>(2)</enum><header>Requirements</header><text>If the Corporation establishes a process and criteria under paragraph (1), the Corporation—</text><subparagraph id="id954b18c5cc30468c951eeb8665a7c38b"><enum>(A)</enum><text>may grant approval to an approved guarantor or an approved aggregator that applies to operate a cash window for the purchase of individual eligible single-family mortgage loans only if the Corporation determines that—</text><clause id="id72c3340da0a6428eaf565eb23951bc41"><enum>(i)</enum><text>the approved guarantor or approved aggregator meets the criteria established under paragraph (1); and</text></clause><clause id="idef975ab9b15d47d99d766cc2c3366d61"><enum>(ii)</enum><text>the operation of the cash window would not pose a risk to the Mortgage Insurance Fund; and</text></clause></subparagraph><subparagraph id="id07a0a99e59be490ba1628ca38a951870"><enum>(B)</enum><text>to ensure the safety and soundness of each approved guarantor and approved aggregator, shall establish standards for the regulation, supervision, and operation of each cash window that an approved guarantor or approved aggregator is approved to operate under this paragraph.</text></subparagraph></paragraph></subsection></section><section id="id48D07C12724441D3970B04502110827E"><enum>310.</enum><header>Equivalency in protection of the Mortgage Insurance Fund</header><text display-inline="no-display-inline">In order to protect the Mortgage Insurance Fund and promote multiple sources of first loss positions, the Corporation shall seek to ensure equivalent loss absorption capacity between approved credit risk-sharing mechanisms pursuant to section 302 and capital standards for approved guarantors pursuant to section 311.</text></section></subtitle><subtitle id="idEBE2EEEE017640EE8DE95FF38C20A3E5" style="OLC"><enum>B</enum><header>Approval and supervision of approved entities for single-family activities</header><section id="id691D05622C764413B68B4FBC9EF35505"><enum>311.</enum><header>Approval and supervision of guarantors</header><subsection id="idd33d0af64f834d57b3cea40a5c009a8e"><enum>(a)</enum><header>Standards for approval of guarantors</header><paragraph id="id5981de54159741fabe374adb1d65877b"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of guarantors to guarantee the timely payment of principal and interest on securities collateralized by eligible single-family mortgage loans and insured by the Corporation.</text></paragraph><paragraph id="id76fb16e5b2c248398ad7148277d3c5bd"><enum>(2)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include—</text><subparagraph id="ida3ca6e99a70441eca419abe2f5d22660"><enum>(A)</enum><text>the financial history and condition of the guarantor;</text></subparagraph><subparagraph id="id2832be98aa7e43a88edb19607e7d0c6d"><enum>(B)</enum><text>a requirement that the guarantor maintain capital levels as defined by the Corporation, pursuant to subsection (g);</text></subparagraph><subparagraph id="id91A14747959643C18A70826EF0DC9982"><enum>(C)</enum><text>the capability of the management of the guarantor;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ida93398d4d282469184961f7c35bad278"><enum>(D)</enum><text>the general character and fitness of the officers and directors of the guarantor, including the compliance history of the guarantor’s officers and directors with Federal and State laws and the rules and regulations promulgated by self-regulatory organizations (as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(26)</external-xref>), as applicable;</text></subparagraph><subparagraph id="id1034f35c4997461ea2afca4586c96301"><enum>(E)</enum><text>the risk presented by the guarantor to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="idfef2646cd2374c6a88331b3bf29dd6a5"><enum>(F)</enum><text>the adequacy of insurance and fidelity coverage of the guarantor;</text></subparagraph><subparagraph id="id5fd52d3c063c42e3a8bb8200dc5a5a8f"><enum>(G)</enum><text>the ability of the guarantor to—</text><clause id="id5ff9a0b7d437449aa834c9f477947d24"><enum>(i)</enum><text>at the discretion of the guarantor, transfer investment risk and credit risk to private market holders in the single-family market in accordance with the credit risk-sharing mechanisms approved by the Corporation under section 302;</text></clause><clause id="id5af77155e33c4fee9459a3a7cef1ada7"><enum>(ii)</enum><text>create mechanisms to guarantee multi-lender pools; and</text></clause><clause id="ide97425886ff9405c9f38df8ed2dc1028"><enum>(iii)</enum><text>ensure that eligible single-family mortgage loans that collateralize a single-family covered security insured under this title are originated in compliance with the requirements of this Act;</text></clause></subparagraph><subparagraph id="id3a9fd9228f11424a930f332b2af519ed"><enum>(H)</enum><text>the capacity of the guarantor to take the first loss position;</text></subparagraph><subparagraph id="id0ecc1b23c9064bfb99f2034533bc46b8"><enum>(I)</enum><text>that the guarantor has the capacity to guarantee eligible single-family mortgage loans in a manner that furthers the purposes of the Corporation described in section 201(b)(5);</text></subparagraph><subparagraph id="idD49028E5223347A3B46D78C6445D4803"><enum>(J)</enum><text>a requirement that the guarantor timely issue publicly available audited financial statements on an annual basis prepared in accordance with generally accepted accounting principles used in the industry;</text></subparagraph><subparagraph id="idC5262DA3C31A49D89C14854F204D764E"><enum>(K)</enum><text>that the guarantor is in compliance with section 210(a)(3);</text></subparagraph><subparagraph id="idCA91486EFAD9462781407A599C491E44"><enum>(L)</enum><text>that the guarantor has substantial analytical capabilities to effectively manage credit risk;</text></subparagraph><subparagraph id="idbfb1cffe565b4171b1e46c9bb8d02703"><enum>(M)</enum><text>that the guarantor does not originate eligible single-family mortgage loans and is not an affiliate of a person that actively engages in the business of originating eligible single-family mortgage loans; and</text></subparagraph><subparagraph id="id3ABC180B01234A73B4A28DEA2D255B98"><enum>(N)</enum><text>any other standard the Corporation determines necessary to protect the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="ida750de2afeae41a5b8d5436f8737674d"><enum>(3)</enum><header>Rule of construction</header><text>Nothing in subparagraph (I) of paragraph (2) shall be construed to prevent the Corporation from approving a small or specialty guarantor, provided that the guarantor has the capacity to adequately diversify its risk to meet appropriate safety and soundness concerns.</text></paragraph><paragraph id="idB4F63B81A5AE44178BDFC98362284A9F"><enum>(4)</enum><header>Consultation and coordination</header><text>To promote consistency and minimize regulatory conflict, the Corporation shall consult and coordinate with appropriate Federal and State regulators and officials when developing standards pursuant to this subsection.</text></paragraph></subsection><subsection id="idde0b6de6a23d44d78185f3b6ab46ebfa"><enum>(b)</enum><header>Application and approval</header><paragraph id="idfe57575e6e934535bb14052c63d960b8"><enum>(1)</enum><header>Application process</header><subparagraph id="id3a9244ace7e045a4b41f4d5042af5b8d"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of a guarantor under this section.</text></subparagraph><subparagraph id="idf1a380fe1c1943fcb7468b798d8cfd6a"><enum>(B)</enum><header>Application review</header><text>The Corporation shall establish internal timelines for its processing of an application under this section, including timelines for any action to approve or to deny an application under this section.</text></subparagraph><subparagraph id="idD086CB154E7243CC849D54C4138534DF"><enum>(C)</enum><header>Prohibition on control by insured depository institutions or affiliates of insured depository institutions</header><clause id="id6F939FAED9644DC49F34A8F111AF7E78"><enum>(i)</enum><header>In general</header><text>It shall be unlawful for an insured depository institution or an affiliate of an insured depository institution to control an approved guarantor.</text></clause><clause id="id44ACFFE5834249D7A9D5CD9C78F764B7"><enum>(ii)</enum><header>Rule of construction regarding control</header><text>For purposes of this subparagraph, any insured depository institution or affiliate of an insured depository institution has control over an approved guarantor if the company directly or indirectly or acting through 1 or more other persons owns, controls, or has power to vote 10 percent or more of any class of voting shares of the approved guarantor.</text></clause></subparagraph></paragraph><paragraph id="id175463a8b16443fc91dd48a6b26334e6"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1), provided the guarantor meets the standards established under subsection (a).</text></paragraph><paragraph id="id747FF8DD337E4577B316E80D76AD7719"><enum>(3)</enum><header>Denial</header><text>The Corporation shall have the authority to deny any application made pursuant to paragraph (1) if an officer or director of the guarantor has, at any time prior to the date of the approval of such application, been—</text><subparagraph id="id6b0e6abd19c447acbecc26242e97674f"><enum>(A)</enum><text>subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(39)</external-xref>); or</text></subparagraph><subparagraph id="idc410dc27814142e1be8ffafc0d4bcd22"><enum>(B)</enum><text>suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(g)</external-xref>), prohibited from certain action pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(e)</external-xref>), subject to an action resulting in a written agreement or other written statement under section 8(u)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(u)(1)</external-xref>), for which a violation may be enforced by an appropriate Federal banking agency, or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subparagraph></paragraph><paragraph id="idc4bc8502907242d792460da6c5c89634"><enum>(4)</enum><header>Notice and publication</header><text>The Corporation shall—</text><subparagraph id="id44bdad617d6f437f95167199a6a2dfeb"><enum>(A)</enum><text>provide prompt notice to a guarantor of the approval or denial of any application of the guarantor to become an approved guarantor under this section;</text></subparagraph><subparagraph id="idfb38760f3a764da59b8021edfaff3c92"><enum>(B)</enum><text>publish a notice in the Federal Register upon approval of any guarantor; and</text></subparagraph><subparagraph id="id3fd6f54503a54e3b98d067051446601d"><enum>(C)</enum><text>maintain an updated list of approved guarantors on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id3eb8e1afd649437b8fe2524bcd71c20f"><enum>(c)</enum><header>Requirement to maintain approval status</header><paragraph id="id43c94d0e4a814920958bf6ba666b42e5"><enum>(1)</enum><header>Authority to issue order</header><text>If the Corporation determines that an approved guarantor no longer meets the standards for such approval or violates a requirement under this Act, including any standard, regulation, or order promulgated in accordance with this Act, the Corporation may—</text><subparagraph id="idc9655024b656412094c2eddd0ff5a9eb"><enum>(A)</enum><text>suspend or revoke the approved status of the approved guarantor; or</text></subparagraph><subparagraph id="id36f0b1b8bc7245b59110f6fdac621068"><enum>(B)</enum><text>take any other action with respect to such approved guarantor as may be authorized under this Act.</text></subparagraph></paragraph><paragraph id="id50932e5edc9142a883912e2401c71545"><enum>(2)</enum><header>Rule of construction</header><text>The suspension or revocation of the approved status of an approved guarantor under this section shall have no effect on the status as a covered security of any covered security collateralized by eligible mortgage loans with which the approved guarantor contracted prior to the suspension or revocation.</text></paragraph><paragraph id="idf483af4a5d1b4f4081e525ba6e747341"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="idc87560197a3f4182b8e475018c2aa7a1"><enum>(A)</enum><text>promptly publish a notice in the Federal Register upon suspension or revocation of the approval of any approved guarantor; and</text></subparagraph><subparagraph id="id0f9a8e9113b6418598004d8a3db8f48a"><enum>(B)</enum><text>maintain an updated list of such approved guarantors on the website of the Corporation.</text></subparagraph></paragraph><paragraph id="idcc4b6d5ac1bc4ccf9b3f63284144acd2"><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="id6202b467c54d444b88243b276f8c351c"><enum>(d)</enum><header>Prudential standards for supervision</header><text>The Corporation shall prescribe prudential standards for approved guarantors in order to—</text><paragraph id="id34F11FB9F6A44E499EE9022BA55BCF83"><enum>(1)</enum><text>ensure—</text><subparagraph id="id9E477624914A4170B09799968409443C"><enum>(A)</enum><text>the safety and soundness of approved guarantors; and</text></subparagraph><subparagraph id="id9E4D526BB6C141D3BCFA85FD1BD0925A"><enum>(B)</enum><text>the maintenance of approval standards by approved guarantors; and</text></subparagraph></paragraph><paragraph id="idCAA2111907D442F598F59377134C44A9"><enum>(2)</enum><text>minimize the risk presented to the Mortgage Insurance Fund.</text></paragraph></subsection><subsection id="idb4b04fac27dd4757abd67d2bd2abe478"><enum>(e)</enum><header>Reports and examinations</header><text>For purposes of determining whether an approved guarantor is fulfilling the requirements under this Act, the Corporation shall have the authority to require reports from and examine an approved guarantor, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsection (a) of section 9 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1819">12 U.S.C. 1819</external-xref>).</text></subsection><subsection id="id812a53d094e34aedb15da98fe7c7475e"><enum>(f)</enum><header>Enforcement</header><text>The Corporation shall have the authority to enforce the provisions of this Act with respect to an approved guarantor, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsections (b) through (n) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subsection><subsection id="id8e37742920d64d209174647ceeb6a6a8"><enum>(g)</enum><header>Capital standards</header><paragraph id="id75c0dbc2215a4176b42368492a889d22"><enum>(1)</enum><header>In general</header><text>Pursuant to the requirement to establish capital and related solvency standards under section 309(b), the Corporation shall establish standards for approved guarantors that require an approved guarantor to—</text><subparagraph id="id10265b707711427faedc2ed254231264"><enum>(A)</enum><text>hold 10 percent capital; and</text></subparagraph><subparagraph id="id7bfa70bce0544b43bed637b434ebd7df"><enum>(B)</enum><text>maintain solvency levels adequate for the approved guarantor to withstand losses that might be incurred by the approved guarantor in a period of economic stress, including national and regional home price declines, such as those observed during moderate to severe recessions in the United States.</text></subparagraph></paragraph><paragraph id="id57bc537e854e4e738f283b5afc60922a"><enum>(2)</enum><header>Risk-sharing considerations</header><text>For purposes of paragraph (1), the Corporation shall consider the extent, amount, and form of risk-sharing and risk mitigation through the use by approved guarantors of credit risk-sharing mechanisms approved pursuant to section 302(b)(4). The Corporation shall allow such risk-sharing and risk mitigation to fulfill required amounts of capital to be held under paragraph (1)(A) such that it ensures an equivalent amount of loss absorption capacity as required under section 302(a)(1)(B) while maintaining an appropriate structure of capital as determined by the Corporation.</text></paragraph><paragraph id="idddcba121054a47be881a4fccf5c3d24a"><enum>(3)</enum><header>Stress tests</header><text>The Corporation shall conduct appropriate stress tests of each approved guarantor that has total assets of more than $10,000,000,000, provided that such stress tests shall be—</text><subparagraph id="id68E66BF7B9E54140A60AC9DD84EA2AD1"><enum>(A)</enum><text>specifically tailored to the business model of the approved guarantor; and</text></subparagraph><subparagraph id="id0A689CFF5FFE482D829BB00DFAAD5E38"><enum>(B)</enum><text>utilized to—</text><clause id="id4C4F2B7B33914E3DAC512EED8643DAA1"><enum>(i)</enum><text>ensure the safety and soundness of the approved guarantor; and</text></clause><clause id="id5E847FC19A694F319C213C37002EA47F"><enum>(ii)</enum><text>minimize the risk the approved guarantor may present to the Mortgage Insurance Fund.</text></clause></subparagraph></paragraph></subsection><subsection id="id8609622b8c5641bf8841e0fca133df4d"><enum>(h)</enum><header>Resolution authority for failing guarantors</header><paragraph id="id004A54E61CBD4D088413E12EC45B6CE3"><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 Corporation shall—</text><subparagraph id="id2CCE76C12F144E738B77E3C7B42DBB97"><enum>(A)</enum><text>have the authority to act, in the same manner and to the same extent, with respect to an approved guarantor as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under subsections (c) through (s) of section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821), section 12 of the Federal Deposit Insurance Act (<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 approved guarantor, as may be necessary to properly exercise such authority under this subsection;</text></subparagraph><subparagraph id="idC7BAFB9A33034F6788637D6B26834742"><enum>(B)</enum><text>in carrying out any authority provided in subparagraph (A), act, in the same manner and to the same extent, with respect to the Mortgage Insurance Fund as the Federal Deposit Insurance Corporation may act with respect to the Deposit Insurance Fund under the provisions of the Federal Deposit Insurance Act set forth in subparagraph (A);</text></subparagraph><subparagraph id="id434D1DBEDCD94126979CDCFB4836FA4E"><enum>(C)</enum><text>prescribe regulations governing the applicable rights, duties, and obligations of an approved guarantor placed into resolution under this subsection, its creditors, counterparties, and other persons, as the Corporation deems necessary to properly exercise the authority provided in subparagraph (A);</text></subparagraph><subparagraph id="id2AB0B47A7B534374A99AA8468F014612"><enum>(D)</enum><text>consistent with the authorities provided in subparagraph (A), immediately place an insolvent approved guarantor into receivership; and</text></subparagraph><subparagraph id="idCF6A918F2E364BDCB4941F4B217FEF72"><enum>(E)</enum><text>upon placing an approved guarantor into receivership, treat single-family covered securities insured by the Corporation under section 303 in the same manner as the Federal Deposit Insurance Corporation treats deposit liabilities under section 11(d)(11)(A)(ii) of the Federal Deposit Insurance Act and insured deposits under section 11(f) of the Federal Deposit Insurance Act, where the Corporation shall have the same right of subrogation as the Federal Deposit Insurance Corporation has under section 11(g) of the Federal Deposit Insurance Act.</text></subparagraph></paragraph><paragraph id="id21373DBA8F574D09A92B2289D19FB3CD"><enum>(2)</enum><header>Least-cost resolution required</header><text>The Corporation may not exercise any authority under paragraph (1) with respect to any approved guarantor unless the total amount of the expenditures by the Corporation and obligations incurred by the Corporation in connection with the exercise of any such authority with respect to such approved guarantor is the least costly to the Mortgage Insurance Fund, consistent with the least cost approach specified in the Federal Deposit Insurance Act (<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 the Corporation's obligations under this Act and expeditiously concluding its resolution activities, subject to section 13 of the Federal Deposit Insurance Act where the Corporation and the Board of Directors shall have the same authority as the Federal Deposit Insurance Corporation and the Federal Deposit Insurance Corporation’s board of directors.</text></paragraph><paragraph id="id235c001275464124a41ff6c0cc3f4733"><enum>(3)</enum><header>Taxpayer protection</header><text>The Corporation, in carrying out any authority provided in this subsection, shall prescribe regulations to ensure that any amounts owed to the United States, unless the United States agrees or consents otherwise, shall have priority following administrative expenses of the receiver when satisfying unsecured claims against an approved guarantor, or the receiver therefor, that are proven to the satisfaction of the receiver.</text></paragraph></subsection><subsection id="id204a5de820e14eeabcc03adee4296142"><enum>(i)</enum><header>Hearing</header><text>Upon notice of denial of an application for approval under subsection (b) or upon a notice of suspension or revocation of the approved status of an approved guarantor under subsection (c), the applicant or approved guarantor shall be afforded a hearing under subsection (h) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(h)</external-xref>), in the same manner and to the same extent as if the Corporation were the appropriate Federal banking agency, provided that the approved guarantor submits a request to the Corporation for a hearing not later than 10 days after the date on which the notice is published under subsection (b)(3) or (c)(3).</text></subsection><subsection id="id3988275E8F644D949B268262CBB1FB0E"><enum>(j)</enum><header>Other activities</header><text>An approved guarantor shall be prohibited from being an approved aggregator.</text></subsection><subsection id="id98092fd02ed144f9967acc74798137b3"><enum>(k)</enum><header>Provision of pool level insurance</header><text>Subject to such standards as the Corporation may provide, an approved guarantor may provide insurance or other credit enhancement on a pool of eligible single-family mortgage loans collateralizing a single-family covered security insured under this title.</text></subsection><subsection id="id5d256fb54067414dbe88ac4a4d4a67e2"><enum>(l)</enum><header>Prohibited activity</header><text>An approved guarantor may not—</text><paragraph id="id6957ca95953945569723dee1de599623"><enum>(1)</enum><text>originate eligible single-family mortgage loans; or</text></paragraph><paragraph id="id3d616d5fe5744840a16974125d6b2fba"><enum>(2)</enum><text>be an affiliate of a person that actively engages in the business of originating eligible single-family mortgage loans.</text></paragraph></subsection><subsection id="id9e7ad37d0cf249aab1c68ab5e32a2f3e"><enum>(m)</enum><header>Guarantors required to pay claims</header><text>Subject to such standards as the Corporation may provide, an approved guarantor may not for any reason withhold payment of funds that would ensure holders of single-family covered securities receive timely payment of principal and interest on single-family covered securities. The Corporation shall by regulation develop a process for the mediation and resolution of disputed payment amounts.</text></subsection></section><section id="idF0C07E9EBC8C401BB97C0CB456E33BA2"><enum>312.</enum><header>Approval and supervision of aggregators</header><subsection id="id3e01526bed7145898d34e57941d81da0"><enum>(a)</enum><header>Standards for approval of mortgage aggregators</header><paragraph id="id2ebaed2b5aed4cd5bb9cacb022407521"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of mortgage aggregators to deliver eligible single-family mortgage loans to the Securitization Platform for securitization by such aggregator as a single-family covered security.</text></paragraph><paragraph id="ideb5f1a1f83d94dcf9c7ae333bc63d0ff"><enum>(2)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include standards with respect to the ability of mortgage aggregator to—</text><subparagraph id="id7e85a4c2c42945b1a8662189165cec90"><enum>(A)</enum><text>aggregate eligible single-family mortgage loans into pools, including multi-lender pools, as appropriate;</text></subparagraph><subparagraph id="ida14024a86b1a46869d4467d29076e00d"><enum>(B)</enum><text>transfer investment risk and credit risk to private market participants in accordance with the credit risk-sharing mechanisms approved by the Corporation under section 302;</text></subparagraph><subparagraph id="idef189c2b2f1a450c874d24603cd37b0d"><enum>(C)</enum><text>ensure equitable access to the secondary mortgage market for single-family covered securities for all institutions regardless of size or geographic location; and</text></subparagraph><subparagraph id="id498fdcfe4302445ea6421e5aa1a42e91"><enum>(D)</enum><text>ensure that eligible single-family mortgage loans that collateralize a single-family covered security insured under this title are originated in compliance with the requirements of this Act.</text></subparagraph></paragraph><paragraph id="id8c360cb3ec774b2e8eb575db0b5c664e"><enum>(3)</enum><header>Additional required standards</header><text>The standards required under paragraph (1) shall also include—</text><subparagraph id="idd3c6d6a052e14c81b35389ed4ae52a55"><enum>(A)</enum><text>the financial history and condition of the mortgage aggregator;</text></subparagraph><subparagraph id="id5b866ed2020644d6861e20620fa2f320"><enum>(B)</enum><text>the adequacy of the capital structure of the mortgage aggregator;</text></subparagraph><subparagraph id="id904aff587e7d41b6a06bf70625506f62"><enum>(C)</enum><text>the capability of the management of the mortgage aggregator;</text></subparagraph><subparagraph id="id7ca7fb33dafe483cabf6014e9eda3bff"><enum>(D)</enum><text>the general character and fitness of the officers and directors of the mortgage aggregator, including the compliance history of the mortgage aggregator’s officers and directors with Federal and State laws and the rules and regulations promulgated by self-regulatory organizations (as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(26)</external-xref>), as applicable;</text></subparagraph><subparagraph id="ida4ac9e3deb2749a284b8ee2b37e79296"><enum>(E)</enum><text>the risk presented by the mortgage aggregator to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="idb28b6e8752c74921a91e91f0ac70cd4a"><enum>(F)</enum><text>the adequacy of insurance and fidelity coverage of the mortgage aggregator;</text></subparagraph><subparagraph id="idf5ee5b9bf4484bf59e8a27e524134435"><enum>(G)</enum><text>a requirement that the mortgage aggregator submit audited financial statements to the Corporation;</text></subparagraph><subparagraph id="id180FD89D9DFE459ABF88BE48023CDCB5"><enum>(H)</enum><text>that the mortgage aggregator has the capacity to aggregate mortgage loans in a manner that furthers purposes of the Corporation described in section 201(b)(5);</text></subparagraph><subparagraph id="id45CC5DBBA105423191863C363D4F57A8"><enum>(I)</enum><text>that the mortgage aggregator is in compliance with section 210(a)(3); and</text></subparagraph><subparagraph id="id023d998dbf3841118c52b15ec6d9f20d"><enum>(J)</enum><text>any other standard the Corporation determines necessary to protect the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="idB5381BC5DB0C4398895AB53450192ABA"><enum>(4)</enum><header>Rule of construction</header><text>Nothing in subparagraph (H) of paragraph (3) shall be construed to prevent the Corporation from approving a small or specialty mortgage aggregator, provided that the mortgage aggregator has the capacity to adequately diversify its risk to meet appropriate safety and soundness concerns of the Corporation.</text></paragraph><paragraph id="id57DD5338A1DE41C892E094A1D7594E4F"><enum>(5)</enum><header>Consultation and coordination</header><text>To promote consistency and minimize regulatory conflict, the Corporation shall consult and coordinate with appropriate Federal and State regulators and officials when developing standards pursuant to this subsection.</text></paragraph></subsection><subsection id="idc252c1bc78914af28b3c005bf7b734f9"><enum>(b)</enum><header>Application and approval</header><paragraph id="id10adb9541de04558bc0abba6593ad1d6"><enum>(1)</enum><header>Application process</header><subparagraph id="id0aaeb309c10845f790d83535eb5e9b00"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of a mortgage aggregator under this section.</text></subparagraph><subparagraph id="idf14e42959c66436793f2773fe9966c8a"><enum>(B)</enum><header>Application review</header><text>The Corporation shall establish internal timelines for its processing of an application under this section, including timelines for any action to approve or to deny an application under this section.</text></subparagraph></paragraph><paragraph id="id618df568484c4036945e8c16127091f1"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1), provided the mortgage aggregator meets the standards established under subsection (a).</text></paragraph><paragraph id="idC2A8262D749B4B878D9A09C70D9D46F3"><enum>(3)</enum><header>Denial</header><text>The Corporation shall have the authority to deny any application made pursuant to paragraph (1) if an officer or director of the mortgage aggregator has, at any time prior to the date of the approval of such application, been—</text><subparagraph id="id919515B8A51B4BE48C59CCB39D26D3CF"><enum>(A)</enum><text>subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(39)</external-xref>); or</text></subparagraph><subparagraph id="idB34B144BCE62467993BA13AC2358768F"><enum>(B)</enum><text>suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(g)</external-xref>), prohibited from certain action pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(e)</external-xref>), subject to an action resulting in a written agreement or other written statement under section 8(u)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(u)(1)</external-xref>), for which a violation may be enforced by an appropriate Federal banking agency, or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subparagraph></paragraph><paragraph id="id093faa6530a74adc9640d94a003a447a"><enum>(4)</enum><header>Notice and publication</header><text>The Corporation shall—</text><subparagraph id="idb4bd7568cce143c2806b6ccad2108290"><enum>(A)</enum><text>provide prompt notice to a mortgage aggregator of the approval or denial of any application of the mortgage aggregator to become an approved aggregator under this section;</text></subparagraph><subparagraph id="idaa22fc091fd949f0bec76911f90fae3f"><enum>(B)</enum><text>publish a notice in the Federal Register upon approval of any mortgage aggregator; and</text></subparagraph><subparagraph id="id8dd31dc23c7f43e6ac677a47387c1a7d"><enum>(C)</enum><text>maintain an updated list of approved aggregators on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id4570b4b5d2e24007b8f042efa1992f82"><enum>(c)</enum><header>Requirement to maintain approval status</header><paragraph id="idc21d607bf1f6443bb11d962968f9d081"><enum>(1)</enum><header>Authority to issue order</header><text>If the Corporation determines that an approved aggregator no longer meets the standards for such approval or violates a requirement under this Act, including any standard, regulation, or order promulgated in accordance with this Act, the Corporation may—</text><subparagraph id="id3e742f4090794b8896914436c3cd9a0a"><enum>(A)</enum><text>suspend or revoke the approved status of the approved aggregator; or</text></subparagraph><subparagraph id="iddf1cce98aa3f4002864e8a95e6e712cc"><enum>(B)</enum><text>take any other action with respect to such approved aggregator as may be authorized under this Act.</text></subparagraph></paragraph><paragraph id="idd11072813d4d4f39b2b1c6b1465b6670"><enum>(2)</enum><header>Rule of construction</header><text>The suspension or revocation of the approved status of an approved aggregator under this section shall have no effect on the status as a covered security of any covered security collateralized by eligible mortgage loans with which the approved aggregator contracted prior to the suspension or revocation.</text></paragraph><paragraph id="id7ca460aa04b0466b804c5bbf048e4b1b"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id881aa01eb8fb45289cf6ecac0f306e10"><enum>(A)</enum><text>promptly publish a notice in the Federal Register upon suspension or revocation of the approval of any approved aggregator; and</text></subparagraph><subparagraph id="id37edbc635645485d8e2756d8af14eac1"><enum>(B)</enum><text>maintain an updated list of such approved aggregators on the website of the Corporation.</text></subparagraph></paragraph><paragraph id="ide8d1780577e6465fba54f428c4d15f6c"><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="idD7A4EEA94CBB4D11871A45E0EF3AFE8F"><enum>(d)</enum><header>Prudential standards for supervision</header><paragraph id="id0E5AC933779F4E2289A876C0B367DD21"><enum>(1)</enum><header>In general</header><text>Subject to subsection (k)(1), the Corporation shall prescribe prudential standards for approved aggregators in order to—</text><subparagraph id="id18E54984BFE24BF29239ED85F8269DFF"><enum>(A)</enum><text>ensure—</text><clause id="idFA9A6054F6BD42A5BC60BEEBAC882ACD"><enum>(i)</enum><text>the safety and soundness of approved aggregators; and</text></clause><clause id="idFBDD4AB3BB444F589704D7A84B799078"><enum>(ii)</enum><text>the maintenance of approval standards by approved aggregators; and</text></clause></subparagraph><subparagraph id="id303FEE0300524694A3923792B437EC2F"><enum>(B)</enum><text>minimize the risk presented to the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="id92170B29C22B4F25854FA6219E94B084"><enum>(2)</enum><header>Recognition of distinctions between aggregators that are insured depository institutions, affiliates of insured depository institutions, and those that are not</header><text>In carrying out the requirements under paragraph (1), the Corporation shall—</text><subparagraph id="id6D19F0E6E1744F9898A173F3DEC65D4F"><enum>(A)</enum><text>distinguish between prudential standards for approved aggregators that are insured depository institutions, approved aggregators that are affiliates of insured depository institutions, and approved aggregators that are neither insured depository institutions nor affiliates of insured depository institutions; and</text></subparagraph><subparagraph id="idC59A375DCFE14943A20E21FE337E7CEA"><enum>(B)</enum><text>consult and coordinate with Federal and State banking agencies when establishing prudential standards for approved aggregators that are insured depository institutions and approved aggregators that are affiliates of insured depository institutions, in order to minimize duplication of and conflicts with the prudential standards set by the appropriate Federal or State banking agencies of insured depository institutions or the affiliates of insured depository institutions.</text></subparagraph></paragraph><paragraph id="idAFB52385DFD24C8EABF93B8B2601BD05"><enum>(3)</enum><header>Rule of construction</header><text>Nothing in this section shall supersede the prudential standards established by the appropriate Federal banking agencies.</text></paragraph></subsection><subsection id="idfa6d54729449489ea53fc124db4e70ca"><enum>(e)</enum><header>Reports and examinations</header><text>For purposes of gathering information to determine whether an approved aggregator is fulfilling the requirements under this Act, the Corporation shall have the authority to require reports from and examine an approved aggregator as follows:</text><paragraph id="id179d126203b04f9485651501415d0e3b"><enum>(1)</enum><header>Not insured depository institutions or affiliates</header><text>For an approved aggregator that is neither an insured depository institution nor an affiliate of an insured depository institution, the Corporation shall have the authority to require reports from and examine an approved aggregator, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsection (a) of section 9 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1819">12 U.S.C. 1819</external-xref>).</text></paragraph><paragraph id="idbad589150ecd4fb2b5afd4f15df7c6f2"><enum>(2)</enum><header>Insured depository institutions and affiliates</header><text>For an approved aggregator that is an insured depository institution or an affiliate of an insured depository institutions:</text><subparagraph id="idcaef9963c9164003be313ba47b2c7260"><enum>(A)</enum><header>Use of existing reports to reduce examinations</header><text>To the fullest extent possible, the Corporation shall—</text><clause id="idF7B615135B2F417DA2D7191F61352EF7"><enum>(i)</enum><text>rely on the examinations, inspections, and reports of the appropriate Federal or State banking agencies;</text></clause><clause id="id7B454AB96F254C1897C3F3F998BBDB81"><enum>(ii)</enum><text>avoid duplication of examination activities, reporting requirements, and requests for information; and</text></clause><clause id="id7671233417154AFFA466697BABB702D9"><enum>(iii)</enum><text>ensure that the depository institution holding company and the subsidiaries of the depository institution holding company are not subject to conflicting supervisory demands by the Corporation and appropriate Federal and State banking agencies.</text></clause></subparagraph><subparagraph id="idaf669abdef9246e5945c36d804e7d83e"><enum>(B)</enum><header>Examination authority</header><text>If the Corporation determines that the examinations, inspections, and reports obtained pursuant to subparagraph (A) are insufficient for the Corporation to adequately supervise an approved aggregator for compliance with this Act, the Corporation shall have the authority to require reports from and examine the approved aggregator for compliance with this Act, in the same manner and to the same extent as the Board of Governors of the Federal Reserve System has with respect to a subsidiary of a bank holding companyunder the provisions of paragraphs (1) and (2) of subsection (c) of section 5 of the Bank Holding Company Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1844">12 U.S.C. 1844</external-xref>).</text></subparagraph><subparagraph id="idd8e7af99ad7e481893bb63bab2764171"><enum>(C)</enum><header>Regulatory notice</header><clause id="id10abfb00e30f4eedb38ef2e77117cd0b"><enum>(i)</enum><header>Regulatory notice</header><text>Before commencing an examination of an approved aggregator under this paragraph, the Corporation shall provide reasonable notice to, and coordinate with, the appropriate Federal or State banking agency or State regulatory agency.</text></clause><clause id="id94fa02a7bb7c4e3ba3f7247b46e9ae56"><enum>(ii)</enum><header>Rule of construction</header><text>Nothing in this Act shall limit the authority of the Corporation to require reports of and examine an approved aggregator—</text><subclause id="ided0f20c3954f472a8fab709895367f26"><enum>(I)</enum><text>to verify the sale of, and funds received from, the first loss position; and</text></subclause><subclause id="id50984c4d280d419e9d7cef98c6d82b9a"><enum>(II)</enum><text>when the Corporation becomes aware—</text><item id="id08217900a10646e8b02273bb69a3a3ea"><enum>(aa)</enum><text>of a material threat to the safety and soundness of the approved aggregator;</text></item><item id="ide618025e3cce4a3fabbcc4dc19105638"><enum>(bb)</enum><text>that the approved aggregator is in material violation of this Act or the rules promulgated by the Corporation pursuant to this Act; or</text></item><item id="idc8155f7131bb4b31b65516f9dbf40a24"><enum>(cc)</enum><text>that the activities of the approved aggregator threaten the financial stability of the housing finance system or the Mortgage Insurance Fund.</text></item></subclause></clause></subparagraph></paragraph></subsection><subsection id="id176c6260220e4e66ba2762a8977d817a"><enum>(f)</enum><header>Enforcement</header><text>The Corporation shall have the authority to enforce the provisions of this Act with respect to an approved aggregator, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsections (b) through (n) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>), provided that to the extent that the Corporation and an appropriate Federal banking agency are each authorized to enforce prudential standards with respect to an approved aggregator that is an insured depository institution or an affiliate of an insured depository institution, the appropriate Federal banking agency shall have primary authority to enforce such standards.</text></subsection><subsection id="id4eed9e374a5c481e81c54424497cced7"><enum>(g)</enum><header>Capital standards</header><text>For approved aggregators that are neither an insured depository institution nor an affiliate of an insured depository institution the following shall apply:</text><paragraph id="id24a20fc7c43444c09e8fe0ed76d2582d"><enum>(1)</enum><header>In general</header><text>Pursuant to the requirement to establish capital and related solvency standards under section 309(b), the Corporation shall establish standards for approved aggregators that require an approved aggregator—</text><subparagraph id="idED8E4495811C46DE97DFDC39D76AFE98"><enum>(A)</enum><text>to hold capital in an amount comparable to that which is required to be held by insured depository institutions and their affiliates with respect to their applicable aggregating activities; and</text></subparagraph><subparagraph id="idC2D5ABCBD3794B3EB6012F0D05877C15"><enum>(B)</enum><text>to maintain solvency levels adequate for the approved aggregator to withstand losses that might be incurred by the approved aggregator in a period of economic stress, including national and regional home price declines, such as those observed during moderate to severe recessions in the United States.</text></subparagraph></paragraph><paragraph id="id4EE082D56DCD471C8FAAEE5A49F11C84"><enum>(2)</enum><header>Stress tests</header><text>The Corporation shall conduct appropriate stress tests of each approved aggregator that has total assets of more than $10,000,000,000, provided that such stress tests shall be—</text><subparagraph id="id94C5E1C7416744738F19D2AB4B0C1F45"><enum>(A)</enum><text>specifically tailored to the business model of the approved aggregator;</text></subparagraph><subparagraph id="id9050E970C5D44DF7A870F2FF494B3077"><enum>(B)</enum><text>utilized to—</text><clause id="idB156F769AA914921B9FF820B77215079"><enum>(i)</enum><text>ensure the safety and soundness of the approved aggregator; and</text></clause><clause id="idC81B372CD4D3435880BB9AFB4E57919A"><enum>(ii)</enum><text>minimize the risk the approved aggregator may present to the Mortgage Insurance Fund; and</text></clause></subparagraph><subparagraph id="id81CADD0782904D3D8531CB12064B2B98"><enum>(C)</enum><text>coordinated with the Board of Governors of the Federal Reserve System, if the approved aggregator is an affiliate of an insured depository institution.</text></subparagraph></paragraph></subsection><subsection id="idAF36C5C6A9604B23A1AF08C785609AD9"><enum>(h)</enum><header>Resolution authority for failing aggregators</header><paragraph id="idD6D677AF0F32450FA7CC5109A423B682"><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 Corporation shall—</text><subparagraph id="id6b564309cde146aa8a1e6329189b0fee"><enum>(A)</enum><text>have the authority to act, in the same manner and to the same extent, with respect to an approved aggregator that is not an insured depository institution as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under subsections (c) through (s) of section 11 of the Federal Deposit Insurance Act (<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 approved aggregator, as may be necessary to properly exercise such authority under this subsection;</text></subparagraph><subparagraph id="id9ff1eb1a30d745f39bf61929aca08d64"><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 Mortgage Insurance Fund as the Federal Deposit Insurance Corporation may act with respect to the Deposit Insurance Fund under the provisions of the Federal Deposit Insurance Act set forth in subparagraph (A);</text></subparagraph><subparagraph id="idAA220B2FBA164CE29951B7B2CDF10814"><enum>(C)</enum><text>prescribe regulations governing the applicable rights, duties, and obligations of an approved aggregator that is not an insured depository institution placed into resolution under this subsection, its creditors, counterparties, and other persons, as the Corporation deems necessary to properly exercise the authority provided in subparagraph (A); and</text></subparagraph><subparagraph id="ide0cbbbaad05847a982f785e11e97d0ef"><enum>(D)</enum><text>consistent with the authorities provided in subparagraph (A), immediately place an insolvent approved aggregator that is not an insured depository institution into receivership.</text></subparagraph></paragraph><paragraph id="id1959b95b278a461889d263982109b3b5"><enum>(2)</enum><header>Rule of construction</header><text>If an insolvent approved aggregator is an insured depository institution, the Corporation shall recommend, in writing, to such approved aggregator’s appropriate Federal banking agency or State banking regulator to resolve such approved aggregator, which agency shall have sole authority to resolve such aggregator pursuant to section 11(c) of the Federal Deposit Insurance Act (<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 (12 U.S.C. 1811 et seq.) or appropriate Federal or State law, as applicable.</text></paragraph><paragraph id="id0deb6c36bdbf4c3a9631848f03120077"><enum>(3)</enum><header>Least-cost resolution required</header><text>The Corporation may not exercise any authority under paragraph (1) with respect to any approved aggregator that is not an insured depository institution unless the total amount of the expenditures by the Corporation and obligations incurred by the Corporation in connection with the exercise of any such authority with respect to such approved aggregator is the least costly to the Mortgage Insurance Fund, consistent with the least cost approach specified in the Federal Deposit Insurance Act (<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 the Corporation’s obligations under this Act and expeditiously concluding its resolution activities, subject to section 13 of the Federal Deposit Insurance Act where the Corporation and the Board of Directors shall have the same authority as the Federal Deposit Insurance Corporation and the Federal Deposit Insurance Corporation’s board of directors.</text></paragraph><paragraph id="idAF8D186709D3450AAA5E9ABFAF1C260C"><enum>(4)</enum><header>Taxpayer protection</header><text>The Corporation, in carrying out any authority provided in this subsection, shall prescribe regulations to ensure that any amounts owed to the United States, unless the United States agrees or consents otherwise, shall have priority following administrative expenses of the receiver when satisfying unsecured claims against an approved aggregator, or the receiver therefor, that are proven to the satisfaction of the receiver.</text></paragraph></subsection><subsection id="id1308970e09ee4ba9a1924009519496c7"><enum>(i)</enum><header>Hearing</header><text>Upon notice of denial of an application for approval under subsection (b) or upon a notice of suspension or revocation of the approved status of an approved aggregator under subsection (c), the applicant or approved aggregator shall be afforded a hearing under subsection (h) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(h)</external-xref>), in the same manner and to the same extent as if the Corporation were the appropriate Federal banking agency, provided that the approved aggregator submits a request to the Corporation for a hearing not later than 10 days after the date on which the notice is published under subsection (b)(3) or (c)(3).</text></subsection><subsection id="id3007867414D24715B10D0C88A6F102C1"><enum>(j)</enum><header>Other activities</header><text>An approved aggregator shall be prohibited from being an approved guarantor.</text></subsection><subsection id="id28a26deb877044bbbeaa4617c8202df5"><enum>(k)</enum><header>Information sharing regarding insured depository institutions and affiliates of insured depository institutions</header><paragraph id="id8CA3D28DFB284D699DD2087792344970"><enum>(1)</enum><header>By the Corporation</header><text>To the extent the Corporation has relevant information indicating that an approved aggregator that is an insured depository institution or an affiliate of an insured depository institution (A) faces a material threat to its safety and soundness, including insufficient capital, (B) may be in material violation of Federal banking law, or (C) may threaten the financial stability of the housing finance system or the Mortgage Insurance Fund, the Corporation shall notify, in writing, such appropriate Federal banking agency that such conditions exist. The Corporation shall have no authority to enforce prudential standards established by an appropriate Federal banking agency pursuant to the appropriate Federal banking agency’s authority.</text></paragraph><paragraph id="id8FE92458393E422F8B86B7C02BE8BEDF"><enum>(2)</enum><header>By Federal and State banking agencies</header><text>To the extent an appropriate Federal banking agency or State banking agency has relevant information indicating that an approved aggregator that is an insured depository institution or an affiliate of an insured depository institution (A) faces a material threat to its safety and soundness, including insufficient capital, (B) may be in material violation of this Act or the rules promulgated by the Corporation pursuant to this Act, or (C) may threaten the financial stability of the housing finance system or the Mortgage Insurance Fund, such appropriate Federal banking agency or State banking agency shall notify, in writing, the Corporation that such conditions exist.</text></paragraph></subsection><subsection id="ided7af6f3247d4491b88e65bd5eba1a8c"><enum>(l)</enum><header>Rule of construction regarding preservation of Corporation authority</header><text>Nothing in this section limits, or shall be construed to limit, the authority of the Corporation to provide exemptions to, or adjustments for, the provisions of this section based on the asset size of an approved aggregator, or other criteria, as the Corporation deems appropriate, in order to reduce regulatory burdens while appropriately balancing protection of the Mortgage Insurance Fund.</text></subsection><subsection commented="no" id="id831BFAB66AB9486680CD55D08EE81B62"><enum>(m)</enum><header>Federal Home Loan Banks, joint offices, and bank subsidiaries as aggregators</header><paragraph commented="no" id="idc91f7245ad3244919193cc83872b08f9"><enum>(1)</enum><header>Federal Home Loan Bank Act</header><subparagraph commented="no" id="idbd1c39febdce48ae8e251a2e6e8c0ccf"><enum>(A)</enum><header>Establishment of joint offices and subsidiaries</header><clause commented="no" id="idfd64bd2d1a3141b3b1a293aa581ce2b2"><enum>(i)</enum><header>Amendment</header><text>Section 12 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1432">12 U.S.C. 1432</external-xref>) is amended by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id316d2e68d12e480292d7c53ecc3cd740" reported-display-style="italic" style="OLC"><subsection commented="no" id="id2edf458ef46c433c8a4ac416974f8fd3"><enum>(c)</enum><text>Subject to such regulations as may be prescribed by the Agency, in coordination with the Federal Mortgage Insurance Corporation, 1 or more Federal Home Loan Banks may establish a subsidiary or joint office in any form under the laws of any State, subject to the approval of the Corporation. Any subsidiary or joint office established under this subsection shall be restricted to engaging in activities related to being an approved aggregator, as that term is defined under section 2 of <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>.</text></subsection><subsection commented="no" id="id80911bd1600e4b528d87a7ad28943330"><enum>(d)</enum><text>Subject to such regulations as may be prescribed by the Agency, in coordination with the Federal Mortgage Insurance Corporation, 1 or more Federal Home Loan Banks or any subsidiary or joint office of a Federal Home Loan Bank established under subsection (c) may apply to become, and may become, an approved aggregator, as that term is defined under section 2 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause><clause commented="no" id="id68E2B722EECF4741B6ACBE1E119BDBAF"><enum>(ii)</enum><header>Effective date</header><text>The amendments made by clause (i) shall take effect on the system certification date.</text></clause></subparagraph><subparagraph commented="no" id="id5f5a70ae0e3a4658ac14627d1128f2f0"><enum>(B)</enum><header>CDFIs</header><clause commented="no" id="id0A4B8F6F50484AEE955E375432B06DA9"><enum>(i)</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><subclause commented="no" id="id5ed6390a5b3e499b97906bc4b755a5ed"><enum>(I)</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></subclause><subclause commented="no" id="id2b26239c5b8944d7a108a9183e8e264c"><enum>(II)</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></subclause></clause><clause commented="no" id="id90f1c1b005744aa7bb780f79a9216e46"><enum>(ii)</enum><header>Effective date</header><text>The amendment made by clause (i) shall take effect on the agency transfer date.</text></clause></subparagraph></paragraph><paragraph id="id110FF815992B4A7A8EEEBB9D53878C83"><enum>(2)</enum><header>Not consolidated debt</header><text>Notwithstanding section 11 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431</external-xref>), any covered security secured by eligible mortgage loans transferred to the Platform by a Federal Home Loan Bank or subsidiary or joint office thereof, acting as an approved aggregator, shall not be designated as, or considered to be the joint and several obligations of the Federal Home Loan Banks.</text></paragraph></subsection></section><section id="id88E62133A12848728CC1F1CBCDA4220A"><enum>313.</enum><header>Approval of private mortgage insurers</header><subsection id="id61ff46e8f9584fccaef50dc93b9bc36d"><enum>(a)</enum><header>Standards for approval of private mortgage insurers</header><paragraph id="id6c0540a733824658a30c4f5d125a28d2"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of private mortgage insurers to provide private mortgage loan insurance on eligible single-family mortgage loans that collateralize single-family covered securities.</text></paragraph><paragraph id="idf9e7d95c76e24af195da3611d9f7125b"><enum>(2)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include—</text><subparagraph id="id7b0e16020e9e437899a88e0a8fcb8e7b"><enum>(A)</enum><text>the financial history and current financial condition, including capital and loss reserves to comply with any applicable State law or regulation, of the private mortgage insurer;</text></subparagraph><subparagraph id="idfbfffacae8764ca68a149866b7b23eeb"><enum>(B)</enum><text>the capability of the management of the private mortgage insurer;</text></subparagraph><subparagraph id="id05147fdb187541e994c5a1f0efb77277"><enum>(C)</enum><text>the general character and fitness of the officers and directors of the private mortgage insurer, including the compliance history of the private mortgage insurer’s officers and directors with Federal and State laws and the rules and regulations promulgated by self-regulatory organizations (as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as applicable;</text></subparagraph><subparagraph commented="no" id="idf17c079391ff455885c8ad9bd0bd1b1e"><enum>(D)</enum><text>that the private mortgage insurer has the capacity to insure eligible single-family mortgage loans in a manner to comply with any applicable State law or regulation and that furthers the purposes of the Corporation as described in section 201(b)(5);</text></subparagraph><subparagraph id="id9198ee7c66f441828c1d70d4cc782185"><enum>(E)</enum><text>the risk presented by the private mortgage insurer to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="id5de548ad0b374af18a709bc37b356e24"><enum>(F)</enum><text>the adequacy of insurance and fidelity coverage of the private mortgage insurer;</text></subparagraph><subparagraph id="id9d9c7daaab984cfd95f07088970b3666"><enum>(G)</enum><text>a requirement that the private mortgage insurer submit audited financial statements to the Corporation; and</text></subparagraph><subparagraph id="id7a127ff18ba248a09711525e39ec4678"><enum>(H)</enum><text>any other standard the Corporation, after notice and public comment, determines necessary to avoid significant risk to the Mortgage Insurance Fund, provided the standard does not materially conflict with State law.</text></subparagraph></paragraph><paragraph id="id7EC3909D74C64203A0D3299BB8E0B398"><enum>(3)</enum><header>Rule of construction</header><text>Nothing in subparagraph (D) of paragraph (2) shall be construed to prevent the Corporation from approving a small or specialty private mortgage insurer, provided that the private mortgage insurer has the capacity to adequately diversify its risk to meet solvency standards required by any applicable State law or regulation.</text></paragraph><paragraph id="id66D155127C2B4A118E65E44E382E8071"><enum>(4)</enum><header>Consultation and coordination</header><text>To promote consistency and minimize regulatory conflict, the Corporation shall consult and coordinate with appropriate Federal regulators and State regulators and officials when developing standards pursuant to this subsection.</text></paragraph></subsection><subsection id="ida069d42fc195437ebad43fc3813096c0"><enum>(b)</enum><header>Application and approval</header><paragraph id="id69c70fa8e07b4ff4b71941de3c8a5aaa"><enum>(1)</enum><header>Application process</header><subparagraph id="id2f6b6149a1234c438a85fbe5515768e3"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of a private mortgage insurer under this section.</text></subparagraph><subparagraph id="id1087ec3379de4125ad0d5b3fcbe44084"><enum>(B)</enum><header>Application review</header><text>The Corporation shall establish internal timelines for its processing of an application under this section, including timelines for any action to approve or to deny an application under this section.</text></subparagraph><subparagraph id="id2e4be4c2afb34a93baf79bac0dea492b"><enum>(C)</enum><header>Notification</header><text>The Corporation shall notify the appropriate State insurance regulator upon receipt of any application by a private mortgage insurer to become an approved private mortgage insurer under this section.</text></subparagraph></paragraph><paragraph id="idcb9f239824434e8b8dcca276175a7cbb"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1), provided the private mortgage insurer meets the standards established under subsection (a).</text></paragraph><paragraph id="idC9A8AE7B5DF24C43B9FD13BF189F89E2"><enum>(3)</enum><header>Denial</header><text>The Corporation shall have the authority to deny any application made pursuant to paragraph (1) if an officer or director of the private mortgage insurer has, at any time prior to the date of the approval of such application, been—</text><subparagraph id="idAFB42B91884A411EB1A2C6EDCD8AF0FB"><enum>(A)</enum><text>subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(39)</external-xref>); or</text></subparagraph><subparagraph id="id1072A8714CBD4BC790BB998461B1EED5"><enum>(B)</enum><text>suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(g)</external-xref>), prohibited from certain action pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(e)</external-xref>), subject to an action resulting in a written agreement or other written statement under section 8(u)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(u)(1)</external-xref>), for which a violation may be enforced by an appropriate Federal banking agency, or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subparagraph></paragraph><paragraph id="id90c8092aa2124757baa7b198cc02c99c"><enum>(4)</enum><header>Notice and publication</header><text>The Corporation shall—</text><subparagraph id="id6a979260e43c4fc883aa9fcc513b4142"><enum>(A)</enum><text>provide prompt notice to a private mortgage insurer of the approval or denial of any application of the private mortgage insurer to become an approved private mortgage insurer under this section;</text></subparagraph><subparagraph id="id4abf30a53ac24760b54b30c0b110298c"><enum>(B)</enum><text>publish a notice in the Federal Register upon approval of any private mortgage insurer;</text></subparagraph><subparagraph id="id3688e45cb95942b48e08ee4cc22bedd5"><enum>(C)</enum><text>maintain an updated list of approved private mortgage insurers on the website of the Corporation; and</text></subparagraph><subparagraph id="id9e1dcedcce7a481cb01bdac76eb4fe7e"><enum>(D)</enum><text>provide prompt notice to the appropriate State insurance regulator upon the approval or denial of any application of a private mortgage insurer to become an approved private mortgage insurer under this section.</text></subparagraph></paragraph><paragraph id="id438B48207C3E40CF918DDE8E61A4B459"><enum>(5)</enum><header>Grandfathered insurers of the enterprises</header><text>Any private mortgage insurer who was approved to insure mortgage loans for an enterprise on the date that is 1 day before the date the Corporation publishes the provisional standards for the approval of private mortgage insurers required under section 607(a)(2), and was in good standing as of such date—</text><subparagraph id="id980DC790DA11402F959E13C2E317316A"><enum>(A)</enum><text>shall be deemed conditionally approved for a period of 1 year from the date on which the Corporation publishes the provisional standards for the approval of private mortgage insurers required under section 607(a)(2);</text></subparagraph><subparagraph id="id230C9884FCEA4DCDBA848BB6DC8F590E"><enum>(B)</enum><text>shall, not later than the date which is 6 months after date on which the Corporation publishes the standards required under subsection (a), apply for approved status via the application process described in this subsection to be eligible for approved status; and</text></subparagraph><subparagraph id="id41BAE2E5A056475E9C7F9B25D3D8D389"><enum>(C)</enum><text>shall, provided the private mortgage insurer has complied with subparagraph (B), receive a determination from the Corporation as to the approval or denial of its application to become an approved private mortgage insurer prior to the expiration of the 1-year period described under subparagraph (A).</text></subparagraph></paragraph></subsection><subsection id="ideaf3873f32724568a6b99686de35c26b"><enum>(c)</enum><header>Requirement to maintain approval status</header><paragraph id="id8498e677666847c7b6667970a692a183"><enum>(1)</enum><header>Authority to issue order</header><text>If the Corporation determines that an approved private mortgage insurer no longer meets the standards for such approval or violates a requirement under this section, including any standard, regulation, or order promulgated in accordance with this Act, the Corporation may—</text><subparagraph id="id2161EF314255496E92D4120332A53555"><enum>(A)</enum><text>provide prompt notice to the appropriate State insurance regulator that the Corporation determines that an approved private mortgage insurer no longer meets the standard for such approval;</text></subparagraph><subparagraph id="id25082aab86544ddc9f48422aa0620e3b"><enum>(B)</enum><text>suspend or revoke the approved status of the approved private mortgage insurer; or</text></subparagraph><subparagraph id="id46a6c0cadef34eadb358a0550756c244"><enum>(C)</enum><text>take any other action with respect to such approved private mortgage insurer as may be authorized under this Act.</text></subparagraph></paragraph><paragraph id="id125ef88821064df4af6c6132bd2f5819"><enum>(2)</enum><header>Rule of construction</header><text>The suspension or revocation of the approved status of an approved private mortgage insurer under this section shall have no effect on the status as a covered security of any covered security collateralized by eligible mortgage loans with which the approved private mortgage insurer contracted prior to the suspension or revocation.</text></paragraph><paragraph id="id244dabaf25774148bff2bde911a08f8e"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id665908a8993c4aaa84212183d83d1e22"><enum>(A)</enum><text>promptly publish a notice in the Federal Register upon suspension or revocation of the approval of any approved private mortgage insurer; and</text></subparagraph><subparagraph id="idb98c16883f7c4b34842a7fe24ad0ddbf"><enum>(B)</enum><text>maintain an updated list of such approved private mortgage insurers on the website of the Corporation.</text></subparagraph></paragraph><paragraph id="idab53c184b12b437b95962c70ad9d236e"><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="id46b1964c6820499e973a61b7a902e56a"><enum>(d)</enum><header>State regulation</header><text>The appropriate State insurance regulator of an approved private mortgage insurer has primary authority to examine and supervise the approved private mortgage insurer.</text></subsection><subsection id="id37f371bbd48c4b808fc73898912c6589"><enum>(e)</enum><header>Reports and examinations</header><paragraph id="idf0ed0ddc75d245fc8675be4f17dc6666"><enum>(1)</enum><header>In general</header><text>For purposes of determining whether an approved private mortgage insurer is fulfilling the requirements under this Act, the Corporation may, in coordination with the appropriate State insurance regulator of the approved private mortgage insurer, including providing the appropriate State insurance regulator the opportunity to join the Corporation in an on-site examination, examine or review any approved private mortgage insurer if the Corporation has substantial reason to believe—</text><subparagraph id="id2fba524b5cd244ef8b7bbe5cfe67a525"><enum>(A)</enum><text>that an approved private mortgage insurer has engaged in a material violation or pattern of violations of this Act or the rules promulgated pursuant to this Act; or</text></subparagraph><subparagraph id="ide50fa664c7024480bf38dc5bf3bb0608"><enum>(B)</enum><text>that the activities of an approved private mortgage insurer may threaten the financial stability of the housing finance system or the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="id779abaaecb7844df8fe8aeeacfca722b"><enum>(2)</enum><header>3-year compliance examination</header><text>In addition to the authority under paragraph (1), the Corporation shall conduct an examination of an approved private mortgage insurer once, but not more than once, every 3 years, provided the approved private mortgage insurer has not been examined on-site by an appropriate State insurance regulator.</text></paragraph><paragraph id="id2ee591ecf37248d49c6e2c020bb400de"><enum>(3)</enum><header>Coordination</header><text>In conducting an exam or review authorized pursuant to paragraph (1) or paragraph (2), the Corporation shall—</text><subparagraph id="idc8a6bdbc37d24bac812fbd8f01b5f6fa"><enum>(A)</enum><text>provide reasonable notice to, and coordinate with, the appropriate State insurance regulator for an approved private mortgage insurer before commencing an examination of the approved private mortgage insurer under this section;</text></subparagraph><subparagraph id="id148e4f105ac74ac795fcb2c02f4c179e"><enum>(B)</enum><text>to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information, including by relying on existing examinations, inspections, and reports of the appropriate State insurance regulator; and</text></subparagraph><subparagraph id="id435b6f10a0a34fe292c1ed49e6a80ebe"><enum>(C)</enum><text>ensure that the approved private mortgage insurer is not subject to conflicting supervisory demands by the Corporation and State insurance regulators, as appropriate.</text></subparagraph></paragraph><paragraph id="id2822922d9a15408a81d263e144292905"><enum>(4)</enum><header>Notice of determination</header><text>The State insurance regulator of an approved private mortgage insurer shall notify the Corporation if there has been a final determination that the approved private mortgage insurer is in a hazardous financial condition provided that the Corporation agrees to maintain the confidentiality or privileged status of the document, material, or other information received from the State insurance regulator of the approved private mortgage insurer.</text></paragraph></subsection><subsection id="idb60d14785866461c992ba9db486e293b"><enum>(f)</enum><header>Enforcement</header><paragraph id="id64ad9d4a3d0a485984dd66ed06b5500a"><enum>(1)</enum><header>In general</header><text>The Corporation shall have the authority to enforce the provisions of this section with respect to a private mortgage insurer, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsections (b) through (n) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>), provided the Corporation demonstrates that such enforcement action is necessary to avoid significant risk to the Mortgage Insurance Fund.</text></paragraph><paragraph id="idc1ae6b4481e041e7844b7a13cf300d8f"><enum>(2)</enum><header>Notification</header><text>Prior to taking any enforcement action against an approved private mortgage insurer, the Corporation shall promptly notify, consult, and coordinate with the appropriate State insurance regulator.</text></paragraph></subsection><subsection id="id5C564F0EECAA4270883519CBB4EB4B0C"><enum>(g)</enum><header>Resolution authority</header><paragraph id="id58f998b82b3345eab7ddb578ea585764"><enum>(1)</enum><header>In general</header><text>For any approved private mortgage insurer that the Corporation has substantial reason to believe is insolvent, as defined by applicable State law, and would otherwise be subject to receivership proceedings under such applicable State law, the Corporation shall recommend, in writing, that the State insurance regulator for such approved private mortgage insurer take such actions as are necessary and authorized under applicable State law to resolve such approved private mortgage insurer.</text></paragraph><paragraph id="id8b841b1aa03d4c97a1a23a14871c2c67"><enum>(2)</enum><header>Backup authority</header><text>Notwithstanding the requirement under paragraph (1), if, after the end of the 60-day period beginning on the date on which the Corporation provides its written recommendation pursuant to paragraph (1), the appropriate State insurance regulator has not filed the appropriate judicial action in the appropriate State court to place such approved private mortgage insurer into receivership under the laws and requirements of the State, the Corporation shall have the authority to stand in the place of the appropriate regulatory agency and file the appropriate judicial action in the appropriate State court to place such approved private mortgage insurer into receivership under the laws and requirements of the State.</text></paragraph></subsection><subsection id="idda50560d93354188b299f1d88e459243"><enum>(h)</enum><header>Hearing</header><text>Upon notice of denial of an application for approval under subsection (b) or upon a notice of suspension or revocation of the approved status of an approved private mortgage insurer under subsection (c), the applicant or approved private mortgage insurer shall be afforded a hearing under subsection (h) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(h)</external-xref>), in the same manner and to the same extent as if the Corporation were the appropriate Federal banking agency, provided that the approved private mortgage insurer submits a request to the Corporation for a hearing not later than 10 days after the date on which the notice is published under subsection (b)(3) or (c)(3).</text></subsection><subsection id="id6797c1c4038b49fbb57c5240eb762021"><enum>(i)</enum><header>Rule of construction regarding preservation of Corporation authority</header><text>Nothing in this section limits, or shall be construed to limit, the authority of the Corporation to provide exemptions to, or adjustments for, the provisions of this section based on the asset size of approved private mortgage insurers, or other criteria, as the Corporation deems appropriate, in order to reduce regulatory burdens while appropriately balancing the protection of the Mortgage Insurance Fund.</text></subsection></section><section id="id122E2DFB8D214910AAD7BA272B5FCA1A"><enum>314.</enum><header>Approval of servicers</header><subsection id="id25a7faca6e2f4bc2b908347ea3cc433c"><enum>(a)</enum><header>Standards for approval of servicers</header><paragraph id="id3b3370b894c64834ad5c38740dc9f9ff"><enum>(1)</enum><header>In general</header><text>The Corporation shall, by regulation, establish standards for the approval by the Corporation of servicers to administer eligible single-family mortgage loans, including standards with respect to—</text><subparagraph id="iddb0ebd01e3eb47beb6c62decf473344b"><enum>(A)</enum><text>the collection and forwarding of principal and interest payments;</text></subparagraph><subparagraph id="idec3bec686f5946a7a93918cfed1ec504"><enum>(B)</enum><text>the maintenance of escrow accounts;</text></subparagraph><subparagraph id="id772f588d07654ece803f737b62e546af"><enum>(C)</enum><text>the collection and payment of taxes and bona fide insurance premiums;</text></subparagraph><subparagraph id="ida1a088f21d5d4d8ab760ebda07be6a46"><enum>(D)</enum><text>the maintenance of records on eligible single-family mortgage loans;</text></subparagraph><subparagraph id="id453b37a4d022499286b024e206de1d65"><enum>(E)</enum><text>the establishment of loss mitigation options that seek to enhance value and prevent, to greatest extent possible, the need to trigger a claim on insurance offered by the Corporation pursuant to this title, including by—</text><clause id="id983d026e599949a1bf37b1fbe6440c95"><enum>(i)</enum><text>establishing, by rule, a consistent process through which borrowers, who have submitted an initial loan modification request, will be evaluated by servicers and the securitization trust for an affordable loan modification; and</text></clause><clause id="id637df974b4844843837dad44ee2ce24e"><enum>(ii)</enum><text>providing clear guidance regarding the treatment of second lien holders, taking into consideration the priority and subordination of liens under Federal and State laws;</text></clause></subparagraph><subparagraph id="idb8fc1761168f4559a441c710050c0813"><enum>(F)</enum><text>the advancement of principal and interest payments to investors in the case of a delinquency by a borrower until such time as the borrower has made all payments in arrears, the borrower has entered into a repayment plan or modification, an approved entity or regulated entity has purchased the loan, or the property securing the eligible single-family mortgage loan has been liquidated, including specification that the servicer shall recover advances upon permanent modification of a borrower’s mortgage loan;</text></subparagraph><subparagraph id="id4fa36bb6d549457484bc6cc9aec4cd99"><enum>(G)</enum><text>the establishment of procedures under which the servicer may initiate or continue a foreclosure, in accordance with applicable Federal and State laws and regulations that—</text><clause id="id544297C4B03344F3948329B0DB1B6882"><enum>(i)</enum><text>take into account—</text><subclause id="id0e793006ffb54d64be80e7b195f1a5df"><enum>(I)</enum><text>the servicer’s evaluation of, and agreements with, borrowers for loss mitigation options pursuant to subparagraph (E);</text></subclause><subclause id="idf79c25fbac474d4ba8432f039c0b4ab7"><enum>(II)</enum><text>potential losses caused by delays in collateral recovery; and</text></subclause><subclause id="idcf25716bc62a4d879f59b893d742847d"><enum>(III)</enum><text>the need to minimize risks to the Mortgage Insurance Fund; and</text></subclause></clause><clause id="idBDAA4991812B41FE943141C3C9CF35E5"><enum>(ii)</enum><text>provide the borrower, upon request, documentation establishing the right of the mortgagee to foreclose;</text></clause></subparagraph><subparagraph id="id0ba12517cbc342a2b5f10be7abcae981"><enum>(H)</enum><text>the provision of eligible single-family mortgage loan information to borrowers, upon request, including a copy of the pooling and servicing agreement and securitization trust requirements that address the ability of the servicer to offer loss mitigation options; and</text></subparagraph><subparagraph id="idacde8c7c9d964feb8ba61cee54d48d0d"><enum>(I)</enum><text>implementing the terms of any loss mitigation and foreclosure prevention as required by any uniform securitization agreement developed under section 326.</text></subparagraph></paragraph><paragraph id="idcbaad135445b44768505ce2985d0ae6e"><enum>(2)</enum><header>Additional required standards</header><text>The standards required under paragraph (1) shall also include—</text><subparagraph id="idfe3e6a57cc624efa8ac70d5c6ff4af84"><enum>(A)</enum><text>the financial history and condition of the servicer;</text></subparagraph><subparagraph id="id057ae2457f494b38819a4bfe37e97077"><enum>(B)</enum><text>the capability of the management of the servicer;</text></subparagraph><subparagraph id="ide067e5b8b5fe44d78b5af04ad37a63ee"><enum>(C)</enum><text>the general character and fitness of the officers and directors of the servicer, including the compliance history of the servicer’s officers and directors with Federal and State laws and the rules and regulations promulgated by self-regulatory organizations (as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(26)</external-xref>), as applicable;</text></subparagraph><subparagraph id="id6050f6db558c41ed82d6e0c9a633ea9a"><enum>(D)</enum><text>the risk presented by such servicer to the Mortgage Insurance Fund; and</text></subparagraph><subparagraph id="id2f1d9f1996764bbeb86e63c5ed4af52d"><enum>(E)</enum><text>minimum operational and management standards for the servicer, including with respect to—</text><clause id="idA6A4EA49F3424C999AAED0DF6464F1C5"><enum>(i)</enum><text>internal controls;</text></clause><clause id="id70563C81B11941D68349B726CB2517C0"><enum>(ii)</enum><text>recordkeeping;</text></clause><clause id="idE0FCFB9D9C6147F68FDEEFF8403A2BEA"><enum>(iii)</enum><text>internal audit systems;</text></clause><clause id="id3190EB152F664E91A9619C090F6B3D40"><enum>(iv)</enum><text>the maintenance of adequate liquidity and reserves; and</text></clause><clause id="idD560F124734B4BE1A3AC46D094F4FCF2"><enum>(v)</enum><text>reporting standards to the Corporation and investors, including audited financial statements.</text></clause></subparagraph></paragraph><paragraph id="id6db59a53d8f84f2eb6a6e02bec3895b4"><enum>(3)</enum><header>Coordination, consistency, and comparability</header><text>To promote consistency and minimize regulatory conflict, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Bureau of Consumer Financial Protection, the National Credit Union Administration, and the Corporation shall—</text><subparagraph id="id519e1253cb4042ec97cecad02e789483"><enum>(A)</enum><text>consult and coordinate with each other in developing and issuing regulations with respect to the rules and standards for the servicing of eligible single-family mortgage loans; and</text></subparagraph><subparagraph id="id5c997cb935c44f18a15704f48b8ea0b4"><enum>(B)</enum><text>review existing regulations with respect to mortgage loan servicing rules and standards.</text></subparagraph></paragraph><paragraph id="id6564a6d2534e42e89ee6c10e959f2e1e"><enum>(4)</enum><header>Consultation and coordination with State regulators</header><text>To promote consistency and minimize regulatory conflict, the Corporation shall consult and coordinate with appropriate State regulators in developing and issuing regulations with respect to the rules and standards for the servicing of eligible single-family mortgage loans.</text></paragraph></subsection><subsection id="idd262b1b9fd874336829461f18c4aeec0"><enum>(b)</enum><header>Application and approval</header><paragraph id="id10148b7c49bb448ebf713a1645188dbc"><enum>(1)</enum><header>Application process</header><text>The Corporation shall establish an application process—</text><subparagraph id="ida6ab5e38539041f0ab378f8f20d3029a"><enum>(A)</enum><text>in such form and manner and requiring such information as the Corporation may require, for the approval of a servicer under this section; and</text></subparagraph><subparagraph id="id9ecd5c74b39b412081ca6cd6724e1978"><enum>(B)</enum><text>that does not discriminate against or otherwise disadvantage small servicers.</text></subparagraph></paragraph><paragraph id="id4743c414e86947af80c682218f471579"><enum>(2)</enum><header>Approval</header><subparagraph id="id06c7e03074d740a0a118020f852946ca"><enum>(A)</enum><header>In general</header><text>The Corporation may approve any application made pursuant to paragraph (1) provided the servicer meets the standards adopted under subsection (a).</text></subparagraph><subparagraph id="idbc8bf30f0c8b4edead444f5c94d5ed33"><enum>(B)</enum><header>Prompt notice</header><text>The Corporation shall notify any applicant seeking to become an approved servicer under this section of the decision of the Corporation with respect to such approval as promptly as practicable.</text></subparagraph></paragraph><paragraph id="id9FB74B867F29430B940A8BA58D6321AB"><enum>(3)</enum><header>Denial</header><text>The Corporation shall have the authority to deny any application made pursuant to paragraph (1) if an officer or director of the servicer has, at any time prior to the date of the approval of such application, been—</text><subparagraph id="id014FEE6B15C94F0BA210F5E20721D8B3"><enum>(A)</enum><text>subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(39)</external-xref>); or</text></subparagraph><subparagraph id="id08092A1378EB48FCBB266A5B0622F019"><enum>(B)</enum><text>suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(g)</external-xref>), prohibited from certain action pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(e)</external-xref>), subject to an action resulting in a written agreement or other written statement under section 8(u)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(u)(1)</external-xref>), for which a violation may be enforced by an appropriate Federal banking agency, or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subparagraph></paragraph><paragraph id="idfd3d3a2f430f48dfa090e5b2ffcd9360"><enum>(4)</enum><header>Grandfathered servicers of the enterprises</header><text>Any servicer who was approved to service mortgage loans for an enterprise on the date that is 1 day before the date of enactment of this Act, and was in good standing as of such date, shall be deemed to be an approved servicer for purposes of initial servicer approval by the Corporation and thereafter subject to the requirements of this section as an approved servicer.</text></paragraph><paragraph id="id6b213335694d489d97629dd722784285"><enum>(5)</enum><header>Small servicer exemption</header><subparagraph id="idD76C51D7BB47474D8577926D5A5C8277"><enum>(A)</enum><header>In general</header><text>The Corporation shall, by regulation, provide exemptions to, or adjustments for, the provisions of this section for approved servicers that service 7,500 or fewer eligible single-family mortgage loans, in order to reduce regulatory burdens while appropriately balancing protection of the Mortgage Insurance Fund.</text></subparagraph><subparagraph id="idE37828A784714469822845DDB12E9A70"><enum>(B)</enum><header>Limitation of exemption eligibility</header><text>An approved servicer and its subsidiaries and affiliates shall be considered a single entity for purposes of the exemption under subparagraph (A).</text></subparagraph></paragraph><paragraph id="ida14ff22baed04de4ace89e800d91b6cd"><enum>(6)</enum><header>RESPA amendment</header><text>Section 6 of the Real Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2605">12 U.S.C. 2605</external-xref>) is amended by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id57baa201d3284f4ca71bebf8c493a8e9" reported-display-style="italic" style="OLC"><subsection id="id4d8ccddd83f943909f95c61b1dd5e4f7"><enum>(n)</enum><header>Small servicer exemption</header><paragraph id="id1E6D648087524840A53039106DBAA321"><enum>(1)</enum><header>In general</header><text>The Bureau shall, by regulation, provide exemptions to, or adjustments for, the provisions of this section for servicers that service 7,500 or fewer mortgage loans, in order to reduce regulatory burdens while appropriately balancing consumer protections.</text></paragraph><paragraph id="id1117C579B1CD428CA102F0E7BE0200CF"><enum>(2)</enum><header>Limitation of exemption eligibility</header><text>An approved servicer and its subsidiaries and affiliates shall be considered a single entity for purposes of the exemption under paragraph (1).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id34f0b17688f14fb6944b276f125832f0"><enum>(7)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id700314af36774e0aba4514d5972d576b"><enum>(A)</enum><text>publish a notice in the Federal Register upon approving any servicer under this section; and</text></subparagraph><subparagraph id="id9738300cf58e44de84a0452d79c0292e"><enum>(B)</enum><text>maintain an updated list of approved servicers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="idc487718453c94c468f622158ad6db922"><enum>(c)</enum><header>Review, suspension, and revocation of approved status</header><paragraph id="id3ae2cb3d0a1541cc9f06741778690181"><enum>(1)</enum><header>Review</header><subparagraph id="idcd3c2620558e4b76a8d33c6f298b20ee"><enum>(A)</enum><header>In general</header><text>The Corporation may examine or review any approved servicer if the Corporation has substantial reason to believe that a servicer has engaged in a material violation or pattern of violations of this Act or the rules promulgated pursuant to this Act, including—</text><clause id="idD83A6965878D41AEAD7718570B90E069"><enum>(i)</enum><text>any failure by an approved servicer to comply with terms set forth in any uniform securitization agreement developed under section 326; or</text></clause><clause id="id6E181B41F5144B06A99F80AC5421A346"><enum>(ii)</enum><text>through the identification of any information indicating abnormal eligible single-family mortgage loan performance within the loan portfolio of the approved servicer.</text></clause></subparagraph><subparagraph id="id8270e103b3be446394f410eb5076d440"><enum>(B)</enum><header>2-year compliance examination</header><text>In addition to the authority under subparagraph (A), the Corporation shall conduct an examination or review of an approved servicer once, but not more than once, every 2 years, provided however that such examination or review shall be limited to compliance with this Act or regulations promulgated under this Act.</text></subparagraph><subparagraph id="id9043dc13a14446de93ccebf8d23f14a8"><enum>(C)</enum><header>Coordination</header><text>In conducting an exam or review authorized pursuant to subparagraph (A) or subparagraph (B), the Corporation shall—</text><clause id="idca8c46fe1a284ec1895328bef02d33dd"><enum>(i)</enum><text>provide reasonable notice to, and coordinate with, the appropriate Federal banking agency, the Bureau of Consumer Financial Protection, or State regulatory agency, as appropriate, for an approved servicer that is regulated by such Federal banking agency, the Bureau of Consumer Financial Protection, or State regulatory agency before commencing an examination of the approved servicer under this section; and</text></clause><clause id="id181eb0eda4814355955e8cd1ad43191d"><enum>(ii)</enum><text>to the fullest extent possible—</text><subclause id="id982A8F69024A42DF93B1B4A305409AF1"><enum>(I)</enum><text>rely on the examinations, inspections, and reports of the appropriate Federal banking agency, the Bureau of Consumer Financial Protection, or State regulatory agency, as appropriate, for an approved servicer that is regulated by such Federal banking agency, the Bureau of Consumer Financial Protection, or State regulatory agency;</text></subclause><subclause id="id1BB546D4337B40B38623B1F9030F9E7E"><enum>(II)</enum><text>avoid duplication of examination activities, reporting requirements, and requests for information; and</text></subclause><subclause id="id512A5CF025DA4575BCAA87595E780B51"><enum>(III)</enum><text>ensure that approved servicers are not subject to conflicting supervisory demands by the Corporation, appropriate Federal banking agencies, the Bureau of Consumer Financial Protection, or State regulatory agencies, as appropriate.</text></subclause></clause></subparagraph><subparagraph id="id8de6efd297a446f3b42b64d20166baec"><enum>(D)</enum><header>Self certification</header><clause id="idd44404693963490aac5bf0c99d778c08"><enum>(i)</enum><header>In general</header><text>To facilitate any exam or review authorized pursuant to subparagraph (A) or subparagraph (B), each approved servicer shall, on an annual basis and in accordance with such requirements as the Corporation may establish, certify in writing to the Corporation that the approved servicer is in compliance with the standards identified under paragraphs (1) and (2) of subsection (a), all other requirements of this Act, and any rules promulgated pursuant to this Act.</text></clause><clause commented="no" id="id07648da57e5240d09d847272173a10fa"><enum>(ii)</enum><header>Penalty for false or misleading certifications</header><subclause commented="no" id="idD38F41451CFE40F58D191A7B1AE1037D"><enum>(I)</enum><header>Enforcement</header><text>The Corporation shall have the authority to impose enforcement penalties with respect to an approved servicer who submits a certification under clause (i) that contains false or misleading information, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to insured depository institutions under the provisions of subsections (b) through (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), except that the penalties under subsection (j) of such section 8 shall not apply.</text></subclause><subclause commented="no" id="id3C2C0BFD082646258C638C3C62F29AE8"><enum>(II)</enum><header>Notification</header><text>If the Corporation takes any enforcement action against an approved servicer, the Corporation shall notify the approved servicer’s appropriate Federal banking agency, the Bureau of Consumer Financial Protection, or State regulator, if applicable.</text></subclause></clause></subparagraph></paragraph><paragraph id="id8d3a9ff1786d4e078ce70908bde6434e"><enum>(2)</enum><header>Suspension or revocation</header><subparagraph id="id0793aea4297b4e91b87da1b178e0b2f2"><enum>(A)</enum><header>Corporation authority</header><text>If the Corporation determines, in any exam or review authorized pursuant to paragraph (1), that an approved servicer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such servicer.</text></subparagraph><subparagraph id="id0d9237eaa7e645a2a72e27caaf038e5c"><enum>(B)</enum><header>Rule of construction</header><text>The suspension or revocation of an approved servicer’s approved status under this paragraph shall have no effect on the status of any covered security.</text></subparagraph></paragraph><paragraph id="idfb7f7550218e4ddc9f8301436c337641"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="id07d97cba831145bcb3ae7268f2647223"><enum>(A)</enum><text>publish in the Federal Register a list of any approved servicers who have their approved status suspended or revoked; and</text></subparagraph><subparagraph id="id2c7b9588a912472d8e3056fc900b1e9d"><enum>(B)</enum><text>maintain an updated list of such servicers on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id6b96a3508dc04f509c4523fe4db9cfd6"><enum>(d)</enum><header>Appeals</header><paragraph id="id1a67d52f78b44f858ec1a97978d2bafd"><enum>(1)</enum><header>In general</header><subparagraph id="id1b61189704b94e04acc58151d667ba62"><enum>(A)</enum><header>Appeals of denials of application</header><text>A servicer who submits an application under subsection (b)(1) to become an approved servicer may appeal a decision of the Corporation denying such application.</text></subparagraph><subparagraph id="id177f7b0b4df94538ae167c71de042d25"><enum>(B)</enum><header>Appeals of denials of benefits or suspensions of participation</header><text>An approved servicer may appeal a decision of the Corporation suspending or revoking the approved status of such servicer.</text></subparagraph></paragraph><paragraph id="id4c0eebc8c3b245289fc3c386a749fb69"><enum>(2)</enum><header>Filing of appeal</header><text>Any servicer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.</text></paragraph><paragraph id="idec9318fcc7544759b099c14e4461544b"><enum>(3)</enum><header>Final determination</header><text>The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).</text></paragraph></subsection><subsection id="id4c4a824fd3a14f3e9e34b4aa09ca70dc"><enum>(e)</enum><header>Transfer of mortgage servicing duties</header><paragraph id="id7c5d20dab9c843b9a054dfdc4d9cd5af"><enum>(1)</enum><header>In general</header><text>For any eligible single-family mortgage loan or pool of eligible single-family mortgage loans collateralizing a single-family covered security insured by the Corporation under this title and in accordance with rules promulgated by the Corporation, the Corporation may require the approved servicer of any such eligible single-family mortgage loan or pool of eligible single-family mortgage loans to enter into a subservicing arrangement with any independent specialty servicer approved by the Corporation.</text></paragraph><paragraph id="id7c46467838ac499682251348b8826911"><enum>(2)</enum><header>Rules</header><text>The rules required under paragraph (1) shall—</text><subparagraph id="id81fca864b7154219b203d9101485bd69"><enum>(A)</enum><text>set forth with clarity the performance conditions of an approved servicer that would warrant or necessitate the use of the authority granted to the Corporation under this subsection;</text></subparagraph><subparagraph id="id75edd5535ea749df8300c95857282f43"><enum>(B)</enum><text>require that the performance condition warranting or necessitating the use of such authority be of such type or character so as to materially and adversely affect the ability of the Corporation to recover any amounts owed to the Corporation;</text></subparagraph><subparagraph id="id679d613472624a01848d310e0c732aa1"><enum>(C)</enum><text>for purposes of subparagraph (B), define the term <term>materially and adversely affect</term>;</text></subparagraph><subparagraph id="id3a072b8e4e1e4647a299a7ea4e3642c8"><enum>(D)</enum><text>require that any approved servicer whose servicing duties are subject to this subsection be provided a reasonable amount of time, provided that such time does not present a risk to the Mortgage Insurance Fund, to rebut, address, or correct any determination of the Corporation regarding a performance condition described under subparagraph (A);</text></subparagraph><subparagraph id="id81f94cbfcb3c4c0780c04f1d8ebff378"><enum>(E)</enum><text>only permit the Corporation to carry out the authority granted under this subsection upon expiration of the time-period allowed under subparagraph (D);</text></subparagraph><subparagraph id="idd649fd1187b64f3a9a52003ab628fcb9"><enum>(F)</enum><text>limit the scope of any such authority to eligible single-family mortgage loans that share similar underwriting, borrower, and performance characteristics;</text></subparagraph><subparagraph id="id448cd3816aac49c281f8decab54e8813"><enum>(G)</enum><text>ensure that the scope of any such authority is not applied broadly and without further limitation; and</text></subparagraph><subparagraph id="ide11c787989084ce6b925759b58cc7017"><enum>(H)</enum><text>notwithstanding subparagraphs (B) through (G), provide that an approved servicer may be subject to more extensive programmatic discipline or correction measures, as determined by the Corporation, if, during any 5-year period—</text><clause id="id7df5e28e3f8547c6849b6968094e1b4e"><enum>(i)</enum><text>the servicing duties that are the subject of the current use of the Corporation’s authority under this subsection marks the third instance of the use of such authority with respect to the same approved servicer; and</text></clause><clause id="id142fe29ee63840749e6215d6bcdb0d02"><enum>(ii)</enum><text>with respect to the prior 2 separate and individual instances of the use of such authority, the same approved servicer failed to cure any identified performance conditions or implement corrective measures as determined by the Corporation pursuant to subparagraph (D).</text></clause></subparagraph></paragraph><paragraph id="id628c1b59e23e49aeb5eab49c70186309"><enum>(3)</enum><header>Cessation of compensation</header><text>If a transfer of servicing duties occurs under paragraph (1), the approved servicer from whom such servicing duties are extinguished shall cease to receive compensation for any such servicing activities related to those duties.</text></paragraph><paragraph id="idfebd5bba16184a01969a8d05dfc44aa4"><enum>(4)</enum><header>Servicer succession plans</header><subparagraph id="id0baf9787fa384ef4b8fafd55b79d8fd9"><enum>(A)</enum><header>In general</header><text>The Corporation may establish a succession plan for each approved servicer, including provisions for—</text><clause id="id27c8a3e7a8de450a9cac86ffe01f43ec"><enum>(i)</enum><text>a specialized servicer to replace the approved servicer if the performance of the eligible single-family mortgage loan pool serviced by such approved servicer deteriorates to specified levels; and</text></clause><clause id="idb5a89983e3f44620b9d45b63ef877d5f"><enum>(ii)</enum><text>a plan to achieve continuity of contact for borrowers upon the replacement of the approved servicer.</text></clause></subparagraph><subparagraph id="id2081f932a2db4b9292cfad6f9d48e548"><enum>(B)</enum><header>Rule of construction</header><text>Nothing in this paragraph shall be construed as authorizing the Corporation to circumvent, evade, or otherwise disregard the rules established in paragraphs (1) and (2) when facilitating a transfer of servicing rights.</text></subparagraph></paragraph></subsection><subsection id="id6d52c8428fbf4e2a85658782f034df25"><enum>(f)</enum><header>Petitions for change of servicer by private market holders</header><paragraph id="id8984956616744ef0a4fbf428df6beeaa"><enum>(1)</enum><header>Development of process</header><text>The Corporation shall develop a process by which private market holders of the first loss position in a single-family covered security may petition the Corporation for a change in approved servicers, including specialized servicers for individual eligible single-family mortgage loans, if the private market holders can demonstrate that its investment was not appropriately protected by the current approved servicer, including by failing to meet any standard or requirement identified under paragraphs (1) and (2) of subsection (a).</text></paragraph><paragraph id="idbc031d745e0b4846bb067a51b54d33c0"><enum>(2)</enum><header>Cessation of compensation</header><text>If a change in approved servicers is approved under paragraph (1)—</text><subparagraph id="ida96fbf5b43b44172a23dcf1385963ba0"><enum>(A)</enum><text>the change must occur within 30 days after the petition is approved by the Corporation; and</text></subparagraph><subparagraph id="id267ca41b083047519f5c909d4d9b488b"><enum>(B)</enum><text>once the change required under subparagraph (A) has occurred, the approved servicer from whom such servicing rights are extinguished shall cease to receive compensation for any such servicing activities related to those rights.</text></subparagraph></paragraph></subsection><subsection id="id9b3debed0bb14818a26e1e0b4f465d59"><enum>(g)</enum><header>Notice of transfer of servicing rights by current servicer</header><paragraph id="id2da0ecb919604c62a4b47a5c908dbe42"><enum>(1)</enum><header>Notice to FMIC</header><text>The Corporation shall develop a process by which an approved servicer shall provide notice to the Corporation of any transfer of any servicing rights of such approved servicer to another approved servicer.</text></paragraph><paragraph id="id0cc06ab25f30404fa1256659e6ca67ce"><enum>(2)</enum><header>Authority of FMIC to prevent, halt, or rescind a transfer</header><text>The process required to be developed under paragraph (1) shall include the development of procedures to permit the Corporation to prevent, halt, or rescind any transfer of servicing rights from an approved servicer to a servicer that is not approved to service eligible single-family mortgage loans under this section or to any servicer whose approved status has been suspended or revoked pursuant to subsection (c)(2).</text></paragraph></subsection><subsection id="id979e2184d93144049782a8ea57daf7ea"><enum>(h)</enum><header>General authority with respect to the transfer of servicing rights</header><text>The Corporation may develop such other standards with respect to the transfer of servicing rights by approved servicers as the Corporation determines necessary and appropriate to facilitate an orderly transfer of servicing rights after the suspension or revocation of the approved status of a servicer pursuant to subsection (c)(2).</text></subsection><subsection id="id835e408b7d2f41ff828185e2d9aeef6f"><enum>(i)</enum><header>Study of servicer compensation related to non-performing single-family mortgage loans</header><paragraph id="idD23A91B383F9462D9E8E0A5D375A98B7"><enum>(1)</enum><header>In general</header><text>The Corporation shall carry out a study of servicing compensation for non-performing single-family mortgage loans, including alternatives to existing servicing compensation structures.</text></paragraph><paragraph id="idf7df3dc9e5e94d06a320376851c3716e"><enum>(2)</enum><header>Recommendations</header><text>The study required under paragraph (1) shall include recommendations for the optimal structure of servicer compensation, in order to—</text><subparagraph id="idC1C405603B5E435EA0C1297F7EC20C8C"><enum>(A)</enum><text>improve service for borrowers;</text></subparagraph><subparagraph id="id444E942630CA426C806C13D1145545E8"><enum>(B)</enum><text>reduce financial risk to servicers; and</text></subparagraph><subparagraph id="idEB43A521FD224CDFAB3EC2BEC338FE1E"><enum>(C)</enum><text>provide flexibility for guarantors to better manage non-performing single-family mortgage loans.</text></subparagraph></paragraph><paragraph id="id90b9073cf8c54b9da5c84ee4f737143b"><enum>(3)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, the Chairperson shall issue a report to the Congress containing any findings and determinations made in carrying out the study required under paragraph (1).</text></paragraph></subsection><subsection id="idd1ba6f1a9778460cb0f35a5c7fe4f710"><enum>(j)</enum><header>Rule of construction</header><text>Nothing in this section shall prohibit a mortgage originator from retaining rights to service the eligible single-family mortgage loans it originated, provided that the mortgage originator—</text><paragraph id="idDFDB8248355941B98BDB40255AD7C3DB"><enum>(1)</enum><text>meets the standards to be an approved servicer under subsection (a); or</text></paragraph><paragraph id="idE84E0EB776CF4384BABB7F0DA707B73A"><enum>(2)</enum><text>qualifies for an exemption under subsection (b)(5).</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idD0A73D7E76174A5B99F2EEC8C5B71184"><enum>315.</enum><header>Authority to establish and approve small lender mutuals</header><subsection id="id1b79efd6889945179b168b3e27ec5e54"><enum>(a)</enum><header>Establishment of small lender mutuals</header><paragraph id="id653D839BE24A4361A9DF0768F60F5004"><enum>(1)</enum><header>In general</header><text>The Corporation shall establish 1 entity known as the <quote>Small Lender Mutual</quote>, which shall be an approved small lender mutual, owned by and operated for the benefit of its members, for the purposes of subsection (b).</text></paragraph><paragraph id="id512634ad215940a08c11d482d9bd2016"><enum>(2)</enum><header>Approval of other small lender mutuals</header><text>The Corporation shall, by regulation, establish standards for the approval by the Corporation of such other small lender mutuals as may be necessary to facilitate the purposes described in subsection (b).</text></paragraph></subsection><subsection id="id4aabea617c9145a1b9c2658da8d811e6"><enum>(b)</enum><header>Purposes</header><text>The purpose of the Small Lender Mutual established under subsection (a)(1) and any small lender mutual approved under subsection (a)(2) (in this section collectively referred to as a <quote>small lender mutual</quote>) shall be as follows:</text><paragraph id="id56c7a5b3d1dc456fa26710c4f87c6ee6"><enum>(1)</enum><text>To address the needs of small mortgage lenders with respect to covered securities.</text></paragraph><paragraph id="ida4c1c42c7e1d4fc1a682014725dd6397"><enum>(2)</enum><text>To purchase eligible mortgage loans to securitize a covered security from its member participants—</text><subparagraph id="id503a80192e2649089d90635433436d06"><enum>(A)</enum><text>for cash, on a single loan basis; or</text></subparagraph><subparagraph id="id176e6b5023d14e97b5c9805a15ebdb76"><enum>(B)</enum><text>through the sale of a portion of a multi-lender pool or multi-guarantor pool collateralized by eligible mortgage loans securitized in a covered security.</text></subparagraph></paragraph><paragraph id="id07fe9649dd6d45e28ea03647caea29dc"><enum>(3)</enum><text>To obtain all necessary and appropriate credit enhancements for covered securities to support the lending activities of small mortgage lenders.</text></paragraph><paragraph id="id503e8f27857f43fe86a359de9e493314"><enum>(4)</enum><text>To implement policies and procedures that ensure that the access rules and fees of any small lender mutual are not prohibitive and do not discriminate against originators of eligible mortgage loans or any entity that aggregates eligible mortgage loans on the basis of size, composition, business line, or loan volume.</text></paragraph><paragraph id="ide534aa8cb36844edbe047cd9f91c4979"><enum>(5)</enum><text>To appropriately manage the risk of the Small Lender Mutual to ensure the continued safety and soundness of such mutual.</text></paragraph></subsection><subsection id="idf5757d194e5e42fabe536874149f53bd"><enum>(c)</enum><header>Provisions to ensure the effective operations of small lender mutuals</header><paragraph id="ida84e0ac68fca429098cfd1fe2be721a6"><enum>(1)</enum><header>Requirement to assess needs of small lender mutual</header><text>Not later than 1 year after the date of enactment of this Act, the Federal Housing Finance Agency shall conduct an assessment of the intellectual property, technology, infrastructure, and processes of the enterprises relating to the operation and maintenance of the systems needed to ensure small mortgage lender access to the secondary mortgage market to determine the needs of the Small Lender Mutual established under subsection (a)(1). The assessment required under this paragraph shall be submitted to the Transition Committee established under section 404, or the Board if confirmed pursuant to section 404(d), and included in the transition plan required under section 602.</text></paragraph><paragraph id="id2d62a88f954f4a8490c874f995e5b614"><enum>(2)</enum><header>Authority to manage disposition of enterprise infrastructure</header><text>After the agency transfer date and before the system certification date, the Federal Housing Finance Agency, consistent with title VI—</text><subparagraph id="id8DDF72D0F895446EB1B197A1C23978C8"><enum>(A)</enum><text>shall dispose of the intellectual property, technology, infrastructure, and processes of the enterprises relating to the operation and maintenance of the systems needed for small mortgage lenders to access the secondary mortgage market; and</text></subparagraph><subparagraph id="id55EB8094C70842899D97F5D62DF64464"><enum>(B)</enum><text>may manage such disposition through the sale, transfer, licensing, or leasing of such intellectual property, technology, infrastructure, and processes of an enterprise to the Small Lender Mutual established under subsection (a)(1) to ensure that the Small Lender Mutual can access the secondary mortgage market and fulfill the purposes of the section.</text></subparagraph></paragraph><paragraph id="id70bbccf71c5d4b9f8316396de95ad4bc"><enum>(3)</enum><header>Transfer of necessary technology</header><text>After the agency transfer date and before the system certification date, the Federal Housing Finance Agency, consistent with section 604(h), may transfer to a subsidiary or subsidiaries of the enterprises any function, activity, infrastructure, property, including intellectual property, technology, or any other object or service of an enterprise that the Corporation determines is necessary and available for the Small Lender Mutual established under subsection (a)(1) to carry out its activities and operations.</text></paragraph><paragraph id="id99df24b482534a778f7b5288f3e1d737"><enum>(4)</enum><header>Initial capitalization</header><subparagraph id="id54366f2d17e04748a43c7ec955955130"><enum>(A)</enum><header>In general</header><text>The initial capital necessary for the Small Lender Mutual to be established under subsection (a)(1) to purchase a subsidiary established under paragraph (3) or to purchase, lease, or license the systems under paragraph (2)(B), and to perform all other activities and functions of the Small Lender Mutual, including the ability of the Small Lender Mutual to operate a cash window for the purchase of individual eligible mortgage loans, shall be provided by the enterprises.</text></subparagraph><subparagraph id="id38a28bd4c00142759a1e3d55b46f5828"><enum>(B)</enum><header>Determination of amount</header><text>The amount of any initial capital required to be provided by the enterprises under subparagraph (A) shall be determined by the Corporation based on the needs of the Small Lender Mutual to carry out its activities and functions, as well as by the current volume of business from the enterprise-approved sellers that are eligible to participate, pursuant to subsection (e), as a member of the Small Lender Mutual.</text></subparagraph><subparagraph id="id7cb2297e8b8a4bdcb9c0b1add9779865"><enum>(C)</enum><header>Repayment</header><clause id="idB3EEEE0434C749289287395C9B132170"><enum>(i)</enum><header>In general</header><text>The amount of any initial capital required to be provided by the enterprises under subparagraph (A) shall be repaid by the Small Lender Mutual established under subsection (a)(1) on a schedule jointly agreed to by the Small Lender Mutual and the Corporation.</text></clause><clause id="ida2f7249eae534bf5b95622bfc8749650"><enum>(ii)</enum><header>Repayment period</header><subclause id="idBB72BEBDF7FF40999103369C1ED1952D"><enum>(I)</enum><header>In general</header><text>The repayment of any amounts required under clause (i) shall be completed within 7 years from the system certification date.</text></subclause><subclause id="id30ebee23eab34b5e97e8bd397027101d"><enum>(II)</enum><header>Authority to extend repayment period</header><text>The Corporation, after consultation with the mutual board of the Small Lender Mutual established under subsection (a)(1), may extend the repayment period set forth under subclause (I) for an additional 3 years, if, in the sole discretion of the Corporation, the Corporation deems such extension necessary.</text></subclause></clause></subparagraph></paragraph></subsection><subsection id="id308bd9588e3146bdb722641ab8c46daf"><enum>(d)</enum><header>Ensuring fair competition</header><text>The Federal Housing Finance Agency may, consistent with the public interest, for the maintenance of fair competition among all small lender mutuals, and for the purposes set forth in this section, provide, through a licensing agreement or other agreement, access to any technology or platform transferred pursuant to subsection (c)(3).</text></subsection><subsection id="idd12e3d3f679941b5b5963c4695c53a51"><enum>(e)</enum><header>Eligibility</header><paragraph id="id970627866BD34E3DB54195B3814E1782"><enum>(1)</enum><header>In general</header><text>Eligibility to participate as a member in any small lender mutual shall be limited to any—</text><subparagraph id="id142dfdab5b4146a5a69883583a608932"><enum>(A)</enum><text>insured depository institution having less than $500,000,000,000 in total consolidated assets at the time of the initial participation of the institution in the small lender mutual;</text></subparagraph><subparagraph id="id528ad5c49c184b1aa47c1b8adc1ab314"><enum>(B)</enum><text>non-depository mortgage originator that—</text><clause id="idf51b953d7bdc434a9b7c3066051f7095"><enum>(i)</enum><text>has a minimum net worth of $2,500,000;</text></clause><clause id="id5a0d895956dd4423bc41e7b79845e41c"><enum>(ii)</enum><text>has annual eligible mortgage loan production of less than $100,000,000,000; and</text></clause><clause id="id457ae442bf6b4da095c0c0635d600264"><enum>(iii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id86CDD3425BA9452F96F7ABDCAC04547E"><enum>(I)</enum><text>prior to the system certification date, was approved to sell mortgage loans to an enterprise on the date that is 1 day prior to the establishment or approval of the small lender mutual, provided that such originator was in good standing as of such date; or</text></subclause><subclause changed="added" committee-id="SSBK00" id="id7f3818ef5dd44898bdc15f36eccca059" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>meets the standards established by the small lender mutual pursuant to subsection (l);</text></subclause></clause></subparagraph><subparagraph id="id57bd8a7a7d9f4b01837750ab021c5ae0"><enum>(C)</enum><text>Community Development Financial Institution that meets the standards established by the small lender mutual pursuant to subsection (l);</text></subparagraph><subparagraph id="idd5c6c4e7815b4170bcdceac69c2e2980"><enum>(D)</enum><text>mission-based nonprofit lender that meets the standards established by the small lender mutual pursuant to subsection (l);</text></subparagraph><subparagraph id="idd9737903a99f4dea9560ed522e5a07d4"><enum>(E)</enum><text>housing finance agency that meets the standards established by the small lender mutual pursuant to subsection (l); and</text></subparagraph><subparagraph id="idc22f2cce549a492b8444fe4b5b2061db"><enum>(F)</enum><text>Federal Home Loan Bank.</text></subparagraph></paragraph><paragraph id="idBAA6375DC6164FDFA3A4140957BFFCB8"><enum>(2)</enum><header>Access of originators</header><text>An entity eligible to participate as a member of a small lender mutual may not be required to become an approved entity under this Act to access any function or operation of a small lender mutual.</text></paragraph><paragraph id="id8210e6d4d5ed48ec8c26d1dc25df6ea5"><enum>(3)</enum><header>Rule of construction</header><text>Each entity eligible to participate as a member of a small lender mutual under this section shall meet all applicable standards and requirements under this Act.</text></paragraph></subsection><subsection id="idBBD79932C8C149968A9A7D7971E1C168"><enum>(f)</enum><header>Report</header><text>Not later than 2 years after the date on which the Small Lender Mutual is established under subsection (a)(1), the Corporation shall—</text><paragraph id="id4AD5AD305A6C4B80A60810E8F7975A78"><enum>(1)</enum><text>conduct and complete a study evaluating the criteria for eligibility as a member of the Small Lender Mutual under subparagraphs (A) and (B) of subsection (e)(1); and</text></paragraph><paragraph id="id594F668EB20B44CEAAE910308CDE1EE7"><enum>(2)</enum><text>submit a report to Congress, which shall include an evaluation of—</text><subparagraph id="idE0F9C523CBC14044A3074E4915F890E0"><enum>(A)</enum><text>whether the participation levels of members of the Small Lender Mutual under subparagraphs (A) and (B) of subsection (e)(1) are sufficient to create the economies of scale and liquidity necessary for competitive pricing in the secondary mortgage market;</text></subparagraph><subparagraph id="id1320F839150A417CAB6F73D85F8C5BB7"><enum>(B)</enum><text>the ability of the Small Lender Mutual to ensure access for small mortgage lenders to the secondary mortgage market;</text></subparagraph><subparagraph id="idB9F2FC430917452C893A8D67EABBCE67"><enum>(C)</enum><text>the impact of the asset and net worth eligibility criteria established in subparagraphs (A) and (B) of subsection (e)(1) on the size, competitiveness, and membership of the Small Lender Mutual;</text></subparagraph><subparagraph id="idA97F51ED60BA45F9B4681F37EFA8139C"><enum>(D)</enum><text>whether the eligibility thresholds established in subparagraphs (A) and (B) of subsection (e)(1) are facilitating or impeding the creation of a robust market for approved guarantors;</text></subparagraph><subparagraph id="idEAAFD27A705A4BECBDDA9A22EBF13580"><enum>(E)</enum><text>whether the establishment of other eligibility criteria in subparagraphs (A) and (B) of subsection (e)(1) would better serve members of the Small Lender Mutual, including such other criteria as—</text><clause id="idF225255867B94CDEBD4E4FC39EA54F40"><enum>(i)</enum><text>a different asset threshold;</text></clause><clause id="id9A9310C98C6C4493944DDC08DC5D434C"><enum>(ii)</enum><text>an annual mortgage loan origination threshold; or</text></clause><clause id="id0A5CE9607F084F01B0FC6BC4A7922EDC"><enum>(iii)</enum><text>a mortgage loan production cap;</text></clause></subparagraph><subparagraph id="id6A5FB80E731445ED99C2E49A9913D177"><enum>(F)</enum><text>whether the Small Lender Mutual is fully meeting the cash window needs of small mortgage lenders; and</text></subparagraph><subparagraph id="id382EFA484F124F07AA44F9A1B740C09D"><enum>(G)</enum><text>whether the Small Lender Mutual is adequately capitalized to meet the needs of members of the Small Lender Mutual and protect the Mortgage Insurance Fund.</text></subparagraph></paragraph></subsection><subsection id="id09fd34d2c3ec438796ff39050e247b4f"><enum>(g)</enum><header>Eligibility thresholds</header><text>Beginning on the date on which the Corporation submits the report required under subsection (f), the Corporation may adjust the eligibility thresholds established in subparagraphs (A) and (B) of subsection (e)(1) if the Corporation, in consultation with the mutual board of a small lender mutual, determines that—</text><paragraph id="id440BFB41572A4CD397A029168C103CB5"><enum>(1)</enum><text>the thresholds do not facilitate the purposes of the small lender mutual as described in subsection (b);</text></paragraph><paragraph id="id27CD74A883174FFFA88DE229A8FC0770"><enum>(2)</enum><text>the thresholds restrict small multifamily lenders’ participation in the small lender mutual;</text></paragraph><paragraph id="id9e4316ac55c84d959c2b7df669166a66"><enum>(3)</enum><text>the thresholds do not foster competition in the secondary mortgage market; or</text></paragraph><paragraph id="id64f49ed39b534aa8b67fb5384eab78d6"><enum>(4)</enum><text>the thresholds pose a risk to the Mortgage Insurance Fund.</text></paragraph></subsection><subsection id="idCC031C5B9EFA42CCBAEE25850EB4F687"><enum>(h)</enum><header>Reassessment</header><text>Beginning on the date on which the Corporation submits the report required under subsection (f), the Corporation shall, on an annual basis, reassess the Small Lender Mutual’s eligibility thresholds.</text></subsection><subsection id="id0e19b97e828a4fb292e70849505d6fa3"><enum>(i)</enum><header>Platform membership</header><text>Each small lender mutual shall be a member of the Securitization Platform.</text></subsection><subsection id="id93c564f5dc2b4d23b1f82a3a6de2ff27"><enum>(j)</enum><header>Funding authority</header><paragraph id="idbb319b0001f14229bca5026a31571522"><enum>(1)</enum><header>Authority to establish membership fees</header><text>The mutual board of each small lender mutual shall charge and collect fees from its member participants—</text><subparagraph id="ide3762221ab114afcad0ee8430c3a0b26"><enum>(A)</enum><text>for membership in the small lender mutual; and</text></subparagraph><subparagraph id="idaaff2a4066e747818c0823dc1b4fc58f"><enum>(B)</enum><text>to cover the costs of—</text><clause id="idf89fcac1863a46e0b9f4379add3e873e"><enum>(i)</enum><text>in the case of the Small Lender Mutual established under subsection (a)(1)—</text><subclause id="id16A1EFC7F0F84E65B36EAE7E012CE1E1"><enum>(I)</enum><text>the purchase of any function, activity, infrastructure, property, including intellectual property, technology, or any other object or service from an enterprise pursuant to subsection (c);</text></subclause><subclause id="idCAB5294A31EE44E599B1BC3C18E5EDFD"><enum>(II)</enum><text>any initial capital for the establishment of a cash window; and</text></subclause><subclause id="id23911847621041A48D74813F970B03CF"><enum>(III)</enum><text>the repayment of amounts required under subsection (c)(4)(C), provided that any fee charged to cover such repayment amounts is applicable only to those member participants identified and approved after the establishment date of the Small Lender Mutual and before the repayment date established under subsection (c)(4)(C)(ii); and</text></subclause></clause><clause id="idf1ce5383aeb9464eb8284278ba9876b0"><enum>(ii)</enum><text>the continued operation of the small lender mutual, including to build capital reserves and to manage risks.</text></clause></subparagraph></paragraph><paragraph id="id1f67332f86f6435b9e3c7fc465fbe1b6"><enum>(2)</enum><header>Equitable compensation of certain member participants of Small Lender Mutual</header><text>The mutual board of the Small Lender Mutual established under subsection (a)(1) may, in addition to any fee required under paragraph (1), charge and collect a fee from member participants identified and approved after the repayment date established under subsection (c)(4)(C)(ii) to compensate member participants identified and approved prior to such repayment date for the share of the fees paid by such member participants to cover the cost of repayment amounts pursuant to paragraph (1)(B)(i)(III).</text></paragraph><paragraph id="id2170f8eb60214f3aa6d6b7b387ab6b7f"><enum>(3)</enum><header>Authority to increase or decrease fees</header><text>The mutual board of each small lender mutual may, in its discretion and upon consultation with the Corporation, increase or decrease any fee authorized under paragraph (1).</text></paragraph><paragraph id="id7275108b42ad4de894ee93eda4d489dc"><enum>(4)</enum><header>Provision of fee schedule to FMIC</header><text>The mutual board of each small lender mutual shall, on an annual basis and upon any increase or decrease of any fee authorized under paragraph (1), provide the Corporation with a schedule of the fees charged by the small lender mutual to its member participants.</text></paragraph><paragraph id="id15e1b940f3b0425490f3446143cd79f7"><enum>(5)</enum><header>Limitation</header><text>The fees authorized under paragraph (1)—</text><subparagraph id="id5b570d985e6d4c6b8e840a28d37bb6bb"><enum>(A)</enum><text>shall be equitably assessed; and</text></subparagraph><subparagraph id="id5dbfe45cb4d945108f35525ba484bf8e"><enum>(B)</enum><text>shall not discriminate against originators of eligible mortgage loans or any entity that aggregates eligible mortgage loans on the basis of size, composition, business line, or loan volume.</text></subparagraph></paragraph><paragraph id="id31aadcc047ac421ea23351fd53050935"><enum>(6)</enum><header>Authority to reduce fees</header><subparagraph id="ide598925d2f664a018d000b80e942433f"><enum>(A)</enum><header>In general</header><text>If a small lender mutual, in consultation with the Corporation, determines that any fee or fees authorized under this subsection are prohibitive or discriminatory, the small lender mutual may, in the interest of building the membership of the small lender mutual, lower any such fee or fees.</text></subparagraph><subparagraph id="idd0effea6c4404eeda51681267b122b80"><enum>(B)</enum><header>Reasonableness and considerations</header><text>Each small lender mutual shall, in consultation with the Corporation, set reasonable criteria for any determination authorized under subparagraph (A). The criteria required to be set forth under this subparagraph shall consider the potential impact on the financial safety and soundness of the small lender mutual.</text></subparagraph></paragraph></subsection><subsection id="id5dfea174c90d42f4805859191fc9dabb"><enum>(k)</enum><header>Governance</header><paragraph id="id86801e97bfca4b7c9ef9afe6609de597"><enum>(1)</enum><header>Recognition of important role of smaller institutions</header><text>The mutual board of each small lender mutual, in consultation with the Corporation, shall take all reasonable steps necessary to establish governance provisions that reflect the important role in the mortgage market played by the member participants of small lender mutuals.</text></paragraph><paragraph id="id2548ef0fdd7441768ff0ab222d30fcfd"><enum>(2)</enum><header>Mutual board</header><subparagraph id="id98753c6bf56f46609b8648da158fc2d8"><enum>(A)</enum><header>In general</header><text>The management of each small lender mutual shall be vested in a board of 15 directors (in this section referred to as the <quote>mutual board</quote>), which shall include representatives of approved member participants of the small lender mutual.</text></subparagraph><subparagraph id="idf23ddde29f2043259918e162f6b958c5"><enum>(B)</enum><header>Appointment of mutual board of Small Lender Mutual</header><clause id="idCC902FB201B1406589354064992FE5FD"><enum>(i)</enum><header>Initial appointment</header><text>The Corporation shall make initial appointments of the members of the mutual board for the Small Lender Mutual established under subsection (a)(1). Each such initial appointment shall be for a term of 1 year.</text></clause><clause id="idd27822d4c77842cbbef47110d3c5cb32"><enum>(ii)</enum><header>Appointments</header><text>Upon expiration of the 1-year period set forth under clause (i), the member participants of the Small Lender Mutual established under subsection (a)(1) shall elect the members of the mutual board of the Small Lender Mutual from within the membership of the Small Lender Mutual.</text></clause></subparagraph><subparagraph id="id61c69eab7e804f8a8d1286d953c7e190"><enum>(C)</enum><header>Independent directors</header><text>The mutual board of each small lender mutual shall have at least 1 independent director to serve the public interest. The independent director required under this subparagraph shall have a history of representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections.</text></subparagraph><subparagraph id="id5513E5F1A65D4DD19859799971D568EE"><enum>(D)</enum><header>Representation on Board</header><text>No more than <fraction>1/3</fraction> of the directors of the mutual board of the Small Lender Mutual may be held by a single category of member participants, which shall be defined for purposes of this subsection as community banks, credit unions, non-depository mortgage originators, Federal Home Loan Banks, housing finance agencies, Community Development Financial Institutions, and mission-based nonprofit lenders.</text></subparagraph></paragraph><paragraph id="idC648537A92DB4A658A26A1E6A2DDFE5D"><enum>(3)</enum><header>Representation to the Platform</header><text>The mutual board of the Small Lender Mutual shall select, on a rotating basis from representative of its directors, an individual to serve as a Platform Director under section 322.</text></paragraph><paragraph id="idFFDD9D36CD31414997A598343450F2B4"><enum>(4)</enum><header>Representation of multiple small lender mutuals</header><text>If more than 1 small lender mutual is approved under this section, each small lender mutual shall rotate the representation position under section 322.</text></paragraph><paragraph id="idbb2eb1c2146041158727955d7f07d0a3"><enum>(5)</enum><header>No preferences for size</header><text>Member participants of each small lender mutual shall have equal voting rights on any matters before the small lender mutual of which it is a member, regardless of the size of the individual member participant.</text></paragraph><paragraph id="idC6C2C931E09A42CF95AF9EB423DC5DB0"><enum>(6)</enum><header>Rule of construction</header><text>For purposes of this subsection, a member participant and its subsidiaries, joint offices, and affiliates shall be treated as a single entity and shall be entitled to cast a single vote on any matters before the small lender mutual of which it is a member.</text></paragraph></subsection><subsection id="id60b0e460c10448b3bdc6744b4fc76028"><enum>(l)</enum><header>Approval of member participants</header><paragraph id="id21fafeefb3b4413eb18dcd4fa99851e7"><enum>(1)</enum><header>In general</header><text>Each mutual board established under subsection (k) shall develop standards and procedures to approve the application of member participants in the small lender mutual.</text></paragraph><paragraph id="id50c782a80b684e1dbd573571a1782822"><enum>(2)</enum><header>Content of standards</header><text>The standards required under paragraph (1) shall include standards relating to the—</text><subparagraph id="idb3d686dcb7bd46b38006f6fb0111e7ae"><enum>(A)</enum><text>prospective members’ compliance history with Federal and State law;</text></subparagraph><subparagraph id="idd1cc9ebac8e34ac1a358d8239db761d8"><enum>(B)</enum><text>safety and soundness of prospective member participants; and</text></subparagraph><subparagraph id="idc8a0b121ff6c409cb62886033d9b1916"><enum>(C)</enum><text>mortgage underwriting practices of the prospective member.</text></subparagraph></paragraph><paragraph id="id2102ab0de47c469d8daa9516b331405e"><enum>(3)</enum><header>Coordination with other regulators</header><subparagraph id="id8e4c5a792c184f1598c7d1c41b0c3558"><enum>(A)</enum><header>Consultation</header><text>In approving any prospective member to become a member participant in a small lender mutual, the mutual board of that small lender mutual may consult and share information with—</text><clause id="idfa43d305eb7742d69de22492155276b4"><enum>(i)</enum><text>the appropriate Federal banking agency and State regulator of the prospective member; or</text></clause><clause id="ida3da8e880a2e4461bf56c455ec18f9a9"><enum>(ii)</enum><text>the Bureau of Consumer Financial Protection, if the Bureau of Consumer Financial Protection has supervisory authority over the prospective member.</text></clause></subparagraph><subparagraph id="id544535b5b64c43cda00240b4934e27e8"><enum>(B)</enum><header>Privilege preserved</header><text>Information shared pursuant to subparagraph (A) shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that a prospective member may claim with respect to such information under Federal or State law as to any person or entity other than the board of directors or its appropriate Federal banking agency.</text></subparagraph><subparagraph id="id7b1b465b05c742a2ba1ab072b6905e38"><enum>(C)</enum><header>Rule of construction</header><text>No provision of this subsection may be construed as implying or establishing that—</text><clause id="idfc12376df97249cdae0176e58c68ebde"><enum>(i)</enum><text>any prospective member waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply; or</text></clause><clause id="id7e664601abdc4bf5a34d8cfd95e2a49a"><enum>(ii)</enum><text>any prospective would waive any privilege applicable to any information by submitting the information directly to its primary Federal or State regulator, but for this subsection.</text></clause></subparagraph></paragraph><paragraph id="id4199F0600E624DDC8533F08161153136"><enum>(4)</enum><header>Streamlining for existing lenders approved by the enterprises</header><text>Each mutual board established under subsection (k) shall develop streamlined membership standards and procedures for any lender who was approved to sell mortgage loans to an enterprise on the date that is 1 day before the date of enactment of this Act, and was in good standing as of such date.</text></paragraph></subsection><subsection id="ida7ab3733ca3f47fdb479cffbb61b5c41"><enum>(m)</enum><header>Cash window</header><paragraph id="id4401aee471494dff9b4860b83e894455"><enum>(1)</enum><header>Requirement for small lender mutuals</header><text>Each small lender mutual shall have the ability to operate a cash window for the purchase of individual eligible single-family mortgage loans.</text></paragraph><paragraph id="idaddac7c7b80d459784cad3cb1d82d3a4"><enum>(2)</enum><header>Standards to ensure safety and soundness</header><text>To ensure the safety and soundness of each small lender mutual, the Corporation shall establish standards for the regulation, supervision, and operation of each cash window required under paragraph (1).</text></paragraph><paragraph id="idF71253FCDD1345D9ABD2C4F59A4D227D"><enum>(3)</enum><header>Licensing of cash window technology</header><text>The Federal Housing Finance Agency may, consistent with the public interest and for the maintenance of fair competition among entities providing cash window services, provide, through a licensing agreement or other agreement, access to any technology or platform relating to a cash window transferred under paragraph (3) of subsection (c).</text></paragraph></subsection><subsection id="id7816bea61e7847cfa130b81259d6bc4f"><enum>(n)</enum><header>Recognition of distinction between small lender mutual companies and other aggregators</header><text>Prior to promulgating any regulation or taking any other formal or informal action of general applicability, including the issuance of an advisory document or examination guidance, the Corporation shall consider the differences between small lender mutuals and other approved aggregators with respect to—</text><paragraph id="id3e3623fcd9f04abb9e046b39dd4d9ccb"><enum>(1)</enum><text>the cooperative ownership structure of small lender mutuals;</text></paragraph><paragraph id="id9a5f08455dba43779e32f7944f39b4a2"><enum>(2)</enum><text>the purposes of small lender mutuals as set forth in subsection (b);</text></paragraph><paragraph id="id69e00fdc78814e3e8f70ad85a01872b4"><enum>(3)</enum><text>the capital structure of small lender mutuals; and</text></paragraph><paragraph id="id08cd2043eb0f41968eb8b0aa9b7248e4"><enum>(4)</enum><text>any other differences that the Corporation considers appropriate.</text></paragraph></subsection><subsection id="idce42b50a37874a879bf7f15c1e0a701f"><enum>(o)</enum><header>Coordination of servicer approval</header><text>Each mutual board established under subsection (k) may coordinate with the Corporation to facilitate the application process for its member participants to become approved servicers of the Corporation pursuant to section 314.</text></subsection><subsection commented="no" id="ideae0ae7cf4a044929011954fdb0bd3b9"><enum>(p)</enum><header>Multifamily study</header><text>Not later than 1 year after the agency transfer date, the Corporation shall conduct and complete a study to determine—</text><paragraph commented="no" id="id126A2D4291D84B4B9B667A2DE6405EC4"><enum>(1)</enum><text>the access needs of small multifamily mortgage lenders to the secondary multifamily mortgage market; and</text></paragraph><paragraph commented="no" id="idA2C429C24AFE4F7EBE6CD40430CA4D52"><enum>(2)</enum><text>whether the Small Lender Mutual established under subsection (a)(1) can meet the access needs of small multifamily mortgage lenders.</text></paragraph></subsection><subsection id="id865886F02D594B66826A7BA3B4C6B5EB"><enum>(q)</enum><header>Prohibited activities</header><text>A small lender mutual may not guarantee any mortgage loans or mortgage-backed securities.</text></subsection></section><section id="id90F6F694C9064EC4BEEAC8F51FF05874"><enum>316.</enum><header>Supervisory actions related to capital and solvency</header><subsection id="ide7cc47a099754352b91dcbeda0d155ca"><enum>(a)</enum><header>Capital classifications</header><paragraph id="id741328ed21bb42fd8ba7b603d4554ab1"><enum>(1)</enum><header>Establishment</header><text>The Corporation shall establish, by regulation, capital classifications regarding the levels of capital maintained by each type of covered entity.</text></paragraph><paragraph id="id6CE518683F5B4A90B274DFA79E5E9890"><enum>(2)</enum><header>Classes</header><text>In carrying out the requirement under paragraph (1), the Corporation shall classify covered entities according to the following capital classifications:</text><subparagraph id="ide5fcf2cce9a847689d0db799fbf5d745"><enum>(A)</enum><header>Well capitalized</header><text>A covered entity shall be classified as well capitalized if the entity meets or exceeds all of the capital and solvency standards required under section 309(b).</text></subparagraph><subparagraph id="id2c088b43ba2a4d29b71ed28ef36d7ed4"><enum>(B)</enum><header>Adequately capitalized</header><text>A covered entity shall be classified as adequately capitalized if the entity meets or exceeds some, but not all, of the capital and solvency standards required under section 309(b).</text></subparagraph><subparagraph id="id7564beae6ffb4cb1b7dcf306937526a4"><enum>(C)</enum><header>Undercapitalized</header><text>A covered entity shall be classified as undercapitalized if the entity fails to meet any of the capital and solvency standards required under section 309(b).</text></subparagraph><subparagraph id="id3f2e1e0344134519b133df51c16dadf1"><enum>(D)</enum><header>Significantly undercapitalized</header><text>A covered entity shall be classified as significantly undercapitalized if the entity is significantly below any of the capital and solvency standards required under section 309(b).</text></subparagraph><subparagraph id="id226326345f4044398403ab4cf256ca3a"><enum>(E)</enum><header>Critically undercapitalized</header><text>A covered entity shall be classified as critically undercapitalized if the entity is critically below any of the capital and solvency standards required under section 309(b).</text></subparagraph></paragraph><paragraph id="id9ad773fb24194d4dba1553abd8e24b46"><enum>(3)</enum><header>Discretionary classification</header><subparagraph id="id8762f7df3862481d9aa2e8a79e5ac181"><enum>(A)</enum><header>Grounds for reclassification</header><text>The Corporation may reclassify the capital classification of a covered entity if—</text><clause id="idb2bda15370f84f7d9491f7b29f2902d2"><enum>(i)</enum><text>at any time, the Corporation determines, in writing, that the covered entity is engaging in conduct that could result in a rapid depletion of capital held by the covered entity;</text></clause><clause id="idac035137fa394ebcaba978421f7c4ab1"><enum>(ii)</enum><text>after notice and an opportunity for hearing, the Corporation determines that the covered entity is in an unsafe or unsound condition;</text></clause><clause id="id3f632abbcdc84a57a54d82582a57a449"><enum>(iii)</enum><text>pursuant to the requirements of this title, the Corporation deems the covered entity to be engaging in an unsafe or unsound practice;</text></clause><clause id="id11fc16ab014841c4a8e8d8e4653b7f2d"><enum>(iv)</enum><text>the covered entity does not submit a capital restoration plan within the applicable time period that is substantially in compliance with regulations for such plans adopted by the Corporation;</text></clause><clause id="id60af01d0bd924f32b067ce5cb1198b38"><enum>(v)</enum><text>the Corporation does not approve the capital restoration plan submitted by the covered entity; or</text></clause><clause id="id934c21c0e2bd4387bd4c6cab5aba54a3"><enum>(vi)</enum><text>the Corporation determines that the covered entity has failed to comply with the capital restoration plan and fulfill the schedule for the plan approved by the Corporation in any material respect.</text></clause></subparagraph><subparagraph id="id28a4186c3d7d48b985ff17e28a211830"><enum>(B)</enum><header>Reclassification</header><text>In addition to any other action authorized under this title, including the reclassification of a covered entity for any reason not specified in this subsection, if the Corporation takes any action described in subparagraph (A), the Corporation may classify a covered entity as appropriate.</text></subparagraph></paragraph><paragraph id="id1da8af66588a41f3ae8605a708054761"><enum>(4)</enum><header>Restriction on capital distributions</header><subparagraph id="idf76b31f8deeb40199fbed62ca5eeb0d0"><enum>(A)</enum><header>In general</header><text>A covered entity shall make no capital distribution if, after making the distribution, the covered entity would be classified as anything other than well capitalized or adequately capitalized.</text></subparagraph><subparagraph id="idbe679558b3fd44f8bd0a0d2b73237285"><enum>(B)</enum><header>Exception</header><text>Notwithstanding subparagraph (A), the Corporation may permit a covered entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition—</text><clause id="id60054ea775ea4b13a64718f0021156a0"><enum>(i)</enum><text>is made in connection with the issuance of additional shares or obligations of the covered entity in at least an equivalent amount;</text></clause><clause id="id51150dd246af48388790d0f26aecafba"><enum>(ii)</enum><text>will reduce the financial obligations of the covered entity or otherwise improve the financial condition of the covered entity;</text></clause><clause id="id0782d37d93f24aebb2cf5d4b0eb2e741"><enum>(iii)</enum><text>will enhance the ability of the covered entity to promptly meet the minimum capital level for the covered entity;</text></clause><clause id="ida32aa8020c3f420b97275c1bfcc45340"><enum>(iv)</enum><text>contributes to the long-term financial safety and soundness of the covered entity; or</text></clause><clause id="ida0e07c49a30f47efb64909b313c2681f"><enum>(v)</enum><text>furthers the public interest.</text></clause></subparagraph></paragraph></subsection><subsection id="id5d9e315aabc14ded977e8c7dbe378ea5"><enum>(b)</enum><header>Adequately capitalized</header><text>If a covered entity is classified as adequately capitalized:</text><paragraph id="idc1fecbfa4a864e799fa741a97732dac0"><enum>(1)</enum><header>Mandatory capital restoration plan</header><text>The Corporation shall require the covered entity to—</text><subparagraph id="idB86893D8941B4BF89ACFCF28E58A0619"><enum>(A)</enum><text>submit to the Corporation a capital restoration plan; and</text></subparagraph><subparagraph id="idC32A09AEEAB9434F870957C0898C9BEF"><enum>(B)</enum><text>implement the plan after approval.</text></subparagraph></paragraph><paragraph id="id7d62a0cc701646acbee2b7d26d454f97"><enum>(2)</enum><header>Discretionary safeguards</header><text>The Corporation may take, with respect to an adequately capitalized covered entity, any of the actions authorized to be taken under subsection (c) with respect to an undercapitalized covered entity, if the Corporation determines that such actions are necessary to carry out the purposes of this subtitle.</text></paragraph></subsection><subsection id="idd9e4abc108794942aecc8f0c2ca3a175"><enum>(c)</enum><header>Undercapitalized</header><text>If a covered entity is classified as undercapitalized:</text><paragraph id="idCB83E830A0DB4664B1332A29C2CDBF5C"><enum>(1)</enum><header>Mandatory capital restoration plan</header><text>The Corporation shall require the covered entity to—</text><subparagraph id="id5E7E0D47E0914287824F9098E41EA235"><enum>(A)</enum><text>submit to the Corporation a capital restoration plan; and</text></subparagraph><subparagraph id="id62D93C4D3E2C4D2EA33B6995EEBC4A06"><enum>(B)</enum><text>implement the plan after approval.</text></subparagraph></paragraph><paragraph id="id0ca5cb8ad1e6477a81eb6dac0e23ff69"><enum>(2)</enum><header>Restriction on asset growth</header><text>An undercapitalized covered entity shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter, unless—</text><subparagraph id="id5eb259b5666f470fb712fab409c67267"><enum>(A)</enum><text>the Corporation has accepted the capital restoration plan of the covered entity;</text></subparagraph><subparagraph id="id327460c0c99e40598c7767abcb22af9f"><enum>(B)</enum><text>any increase in total assets is consistent with the capital restoration plan; and</text></subparagraph><subparagraph id="id76207ef153644f6aa3b65d0db29d6dac"><enum>(C)</enum><text>the ratio of capital to total assets of the covered entity increases during the calendar quarter at a rate sufficient to enable the covered entity to become adequately capitalized within a reasonable time.</text></subparagraph></paragraph><paragraph id="id32de788f2dbe460aaf68ac91a13848d4"><enum>(3)</enum><header>Prior approval of acquisitions and new activities</header><text>An undercapitalized covered entity shall not, directly or indirectly, acquire any interest in any entity or engage in a new activity, unless—</text><subparagraph id="idaea0ca7bf31f40ad9c9c1589dc83cad1"><enum>(A)</enum><text>the Corporation has accepted the capital restoration plan of the covered entity, the covered entity is implementing the plan, and the Corporation determines that the proposed action is consistent with and will further the achievement of the plan; or</text></subparagraph><subparagraph id="id23d0d1bda4234ac09d1636512649b230"><enum>(B)</enum><text>the Corporation determines that the proposed action will further the purpose of this section.</text></subparagraph></paragraph><paragraph id="id27493c977379475a8997b73be52130b4"><enum>(4)</enum><header>Required monitoring</header><text>The Corporation shall—</text><subparagraph id="id5ff76bb833194e129c728757351e6766"><enum>(A)</enum><text>closely monitor the condition of any undercapitalized covered entity;</text></subparagraph><subparagraph id="ide64a1f89dec641168def440fa1fc285a"><enum>(B)</enum><text>closely monitor compliance with the capital restoration plan, restrictions, and requirements imposed on an undercapitalized covered entity under this section; and</text></subparagraph><subparagraph id="id2e9911b5e91c4565a334d6bfb3d4c032"><enum>(C)</enum><text>periodically review the capital restoration plan, restrictions, and requirements applicable to an undercapitalized covered entity to determine whether the plan, restrictions, and requirements are achieving the purpose of this section.</text></subparagraph></paragraph><paragraph id="id80776eab76c2401baba08bccc95d50ca"><enum>(5)</enum><header>Discretionary safeguards</header><text>The Corporation may take, with respect to an undercapitalized covered entity, any of the actions authorized to be taken under subsection (d) with respect to a significantly undercapitalized covered entity, if the Corporation determines that such actions are necessary to carry out the purpose of this subtitle.</text></paragraph></subsection><subsection id="id63f4cdef421345e0bb06097e021b69d4"><enum>(d)</enum><header>Significantly undercapitalized</header><text>If a covered entity is classified as significantly undercapitalized:</text><paragraph id="id6DE092E96BE2415B860724DEF9965F14"><enum>(1)</enum><header>Mandatory capital restoration plan</header><text>The Corporation shall require the covered entity to—</text><subparagraph id="id8400AA24137C45EDA72A663938F39042"><enum>(A)</enum><text>submit to the Corporation a capital restoration plan; and</text></subparagraph><subparagraph id="id72653BE0DE324539889262A02978F18E"><enum>(B)</enum><text>implement the plan after approval.</text></subparagraph></paragraph><paragraph id="idf1d522e7e32a459f840c2a3176dc914e"><enum>(2)</enum><header>Discretionary supervisory actions for significantly undercapitalized covered entities</header><text>In addition to any other actions taken by the Corporation, the Corporation may, at any time, take any of the following actions with respect to a covered entity that is classified as significantly undercapitalized:</text><subparagraph id="idf8a1293de59b4530b727aa6fa0fcf29a"><enum>(A)</enum><header>Limitation on obligations</header><text>Limit any increase in, or order the reduction of, any obligations of the covered entity, including off-balance sheet obligations.</text></subparagraph><subparagraph id="id4a42192096c94977884e30647307dcf1"><enum>(B)</enum><header>Limitation on growth</header><text>Limit or prohibit the growth of the assets of the covered entity, or require reduction of the assets of the covered entity.</text></subparagraph><subparagraph id="id125fd6b1c29247ecacb21df4c0fce92d"><enum>(C)</enum><header>Acquisition of new capital</header><text>Require the covered entity to raise new capital in a form and amount determined by the Corporation.</text></subparagraph><subparagraph id="id155f53dd1ce643f09c84ce9042eb6613"><enum>(D)</enum><header>Restriction on activities</header><text>Require the covered entity to terminate, reduce, or modify any activity that creates excessive risk to the covered entity, as determined by the Corporation.</text></subparagraph><subparagraph id="id3fe6fa2dfad3495993fecbbf3269c274"><enum>(E)</enum><header>Improvement of management</header><text>Take 1 or more of the following actions:</text><clause id="id260316a43a324808a24813657e3ad616"><enum>(i)</enum><header>New election of Board</header><text>Order or hold a new election for the board of directors of the covered entity.</text></clause><clause id="id69f189cb7e63405fb1752287bc1adb33"><enum>(ii)</enum><header>Dismissal of directors or executive officers</header><text>Require the covered entity to dismiss from office any director or executive officer who had held office for more than 180 days immediately before the date on which the covered entity became undercapitalized.</text></clause><clause id="idad9054e4fc564a8c8c67bd9e65fa804b"><enum>(iii)</enum><header>Employ qualified executive officers</header><text>Require the covered entity to employ qualified executive officers (who, if the Corporation so specifies, shall be subject to approval by the Corporation).</text></clause></subparagraph></paragraph></subsection><subsection id="idd6d487ed801844c7ad0a8d63bcd7247b"><enum>(e)</enum><header>Critically undercapitalized</header><text></text><paragraph id="id2fb96f4e0b59452fba5b74808de83cd8"><enum>(1)</enum><header>Regulated entity</header><text>The Corporation shall have the authority to resolve a critically undercapitalized regulated entity pursuant to section 1367 of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>), as amended by this Act.</text></paragraph><paragraph id="id298f3d913f7a44209a1ec0b43a26c5a8"><enum>(2)</enum><header>Covered entity</header><text>The Corporation shall have the authority to resolve a covered entity that is classified as failing or critically undercapitalized pursuant to the resolution authority granted to the Corporation under section 311(h), section 312(h), section 313(g), and section 703(i), as applicable.</text></paragraph></subsection></section><section id="id46FB6BAC711D4FFBB027BF4AD78FA907"><enum>317.</enum><header>Ownership, acquisitions, and operations of covered entities</header><subsection id="idd33f48af489f4b6baa908a8904a815e2"><enum>(a)</enum><header>Ownership and acquisitions of covered entities</header><text>It shall be unlawful, except with the prior approval of the Corporation, for any person to—</text><paragraph id="id37540e25b451497b8ffdafc90f05b1f8"><enum>(1)</enum><text>directly or indirectly own, control, or have power to vote 10 percent of any class of voting shares of any covered entity (except to the extent that voting stock is required to be purchased by Federal statute as a condition to participate in the programs of the covered entity);</text></paragraph><paragraph id="idd734819a71e344449cfc47d1e4bad4c4"><enum>(2)</enum><text>control in any manner the election of a majority of the directors or trustees of any covered entity;</text></paragraph><paragraph id="idd8c2bb2f09604563bbc4a3fc3cf8297e"><enum>(3)</enum><text>exercise a controlling influence over the management or policies of any covered entity;</text></paragraph><paragraph id="ideb4af3e0459946488aae086f2b41fa13"><enum>(4)</enum><text>merge or consolidate with any covered entity; or</text></paragraph><paragraph id="idfed72e3fbaa0407db06c886c7cd2d658"><enum>(5)</enum><text>divest a covered entity, or any substantial line of business of a covered entity, into any surviving entity.</text></paragraph></subsection><subsection id="id3383aa97f303421cb2c6088b677574d2"><enum>(b)</enum><header>Application and approval process</header><paragraph id="idd94406487ee7457f81ff5d318475966a"><enum>(1)</enum><header>In general</header><text>The Corporation shall establish, by regulation, an application, in such form and manner and requiring such information as the Corporation may require, for the approval of acquisitions, mergers, consolidations, or divestitures under subsection (a).</text></paragraph><paragraph id="id61a06a7a004a4d30ae1face4dd3ca715"><enum>(2)</enum><header>Application review</header><text>The Corporation shall—</text><subparagraph id="id9be9c35acea54729b7353009245417dc"><enum>(A)</enum><text>establish internal timelines for its processing of applications under this section, including timelines for any action to approve or to deny an application under this section; and</text></subparagraph><subparagraph id="ida037f32c3ec148e899bff4a65a5d4aa3"><enum>(B)</enum><text>notify any applicant seeking to undertake an action described under subsection (a) of the decision of the Corporation to approve or to deny their application as promptly as practicable.</text></subparagraph></paragraph></subsection><subsection id="id5932d840f87849b7bae2101213d351f3"><enum>(c)</enum><header>Standards for approval of application</header><text>The Corporation shall establish, by regulation, standards for the approval by the Corporation of acquisitions, mergers, consolidations, or divestitures under subsection (a). The standards required under this subsection shall, at a minimum, be based on—</text><paragraph id="id966e00ef27ee4d3388c91ad683b17767"><enum>(1)</enum><text>the application process established by the Corporation under subsection (b)(1);</text></paragraph><paragraph id="id992d639ed694421abbf526dc453c3a8b"><enum>(2)</enum><text>the financial history and condition of the applicant;</text></paragraph><paragraph id="id3f640b4c26b7471b8341ab2a7b71f369"><enum>(3)</enum><text>the capability of the management of the applicant;</text></paragraph><paragraph id="id82cdc498da53433d88223acd955fcb93"><enum>(4)</enum><text>the general character and fitness of the officers and directors of the applicant, including the compliance history of the applicant’s officers and directors with Federal and State laws and the rules and regulations promulgated by self-regulatory organizations (as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(26)</external-xref>), as applicable;</text></paragraph><paragraph id="id2A6653C686224DE3893DFDED6ECFD82E"><enum>(5)</enum><text>the risk presented by such acquisition, merger, consolidation, or divestiture to the Mortgage Insurance Fund;</text></paragraph><paragraph id="idF34E2E2EA96346B9B208A9ED9251D954"><enum>(6)</enum><text>any other standard the Corporation determines necessary to promote competition and mitigate market dislocations among covered entities in the secondary mortgage market; and</text></paragraph><paragraph id="id4cc6a7fa17aa4b1eb4b1370ef45a380f"><enum>(7)</enum><text>any other standard the Corporation determines necessary or appropriate.</text></paragraph></subsection><subsection id="idbb475b79803b4af69e3ddf36762b6266"><enum>(d)</enum><header>Approval</header><text>The Corporation—</text><paragraph id="id9797ff9d34e244818632ca0e29131af1"><enum>(1)</enum><text>may approve any application made pursuant to this section if the applicant meets the standards established under subsection (c);</text></paragraph><paragraph id="idbc341cb49a5c4527831bef2d16beda00"><enum>(2)</enum><text>may not approve—</text><subparagraph id="id6e8e1d09e3934720847528785e0f10b3"><enum>(A)</enum><text>any application under this section which would result in a monopoly; or</text></subparagraph><subparagraph id="id520e16e50c45489586ae1a869159939a"><enum>(B)</enum><text>any other proposed acquisition or merger or consolidation under this section whose effect in any area of the United States may be substantially to lessen competition, or to tend to create a monopoly, or which in any other manner would be in restraint of trade, unless the Corporation finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the needs of consumers and the communities served; and</text></subparagraph></paragraph><paragraph id="id18A90EC53F184E05BEDF80CCBB7CCE75"><enum>(3)</enum><text>shall have the authority to deny any application made pursuant to paragraph (1) if an officer or director of the applicant has, at any time prior to the date of the approval of such application, been—</text><subparagraph id="id071B5C100D364DE3AB25FF7C5B4162DA"><enum>(A)</enum><text>subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(39)</external-xref>); or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEEDC212CC9744066B6CF1499D0501CC1"><enum>(B)</enum><text>suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(g)</external-xref>), prohibited from certain action pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(e)</external-xref>), subject to an action resulting in a written agreement or other written statement under section 8(u)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(u)(1)</external-xref>), for which a violation may be enforced by an appropriate Federal banking agency, or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subparagraph></paragraph></subsection><subsection id="id9724d1e48a604d6f9ccc825cec83524f"><enum>(e)</enum><header>Restrictions on engaging in other lines of business</header><paragraph id="id642fb2998a4a4349a27f3e7e56487ba3"><enum>(1)</enum><header>For approved guarantors and approved multifamily guarantors</header><text>An approved guarantor or approved multifamily guarantor may not engage in any activity relating to the business of insurance, other than any activity carried out by an approved guarantor or approved multifamily guarantor and approved by the Corporation pursuant to sections 311 or 703.</text></paragraph><paragraph id="id371e6979e4d14f3dba6de19c421d085c"><enum>(2)</enum><header>Other activities</header><text>An approved guarantor or approved multifamily guarantor may engage in any business activity unrelated to the business of insurance, subject to—</text><subparagraph id="idc17f602b79a24778b2ba4adbfed2835e"><enum>(A)</enum><text>the prior approval of the Corporation; and</text></subparagraph><subparagraph id="idc6866bbc04564b70acf81747c149a695"><enum>(B)</enum><text>any terms and conditions set forth by the Corporation.</text></subparagraph></paragraph><paragraph id="id190C8CC0C1A4433FBE3A2E1E4E1F664B"><enum>(3)</enum><header>Rule of construction</header><text>Nothing in paragraph (1) or (2) shall be construed to prevent an approved guarantor from being an affiliate of a private mortgage insurer if approved by the Corporation.</text></paragraph></subsection><subsection id="id359952999c2441119bbda07af84b6a6a"><enum>(f)</enum><header>Limits on support or guarantee arrangement</header><paragraph id="id72034e09b95c4d419f8b714932ea9752"><enum>(1)</enum><header>In general</header><text>An approved guarantor or approved multifamily guarantor may not enter into any agreement, covenant, or other arrangement (including any credit risk-sharing arrangement) with an affiliate or other person to support, guarantee, or finance any operation or activity of that affiliate.</text></paragraph><paragraph id="id7c6298c6357b4af1bc192a90bc801272"><enum>(2)</enum><header>Support</header><text>Subject to any terms and conditions established by the Corporation, by regulation or order, an approved guarantor or approved multifamily guarantor may enter into an agreement, covenant, or other arrangement with an affiliate solely for the purpose of supporting, guaranteeing, or financing an operation or activity of the approved guarantor or approved multifamily guarantor.</text></paragraph><paragraph id="idECD7C38701F04D859667AF54D2FF3122"><enum>(3)</enum><header>Rule of construction</header><text>Nothing in this section shall supersede the requirements under sections 23A and 23B of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/371c">12 U.S.C. 371c</external-xref>, 371c-1).</text></paragraph></subsection><subsection id="idd4c28146b0314efc9bb3acdf37e9950f"><enum>(g)</enum><header>Anti-steering requirement</header><paragraph id="idd9b85c79267d4e78bea5badd5d9edda8"><enum>(1)</enum><header>In general</header><text>The Corporation shall, by regulation, prohibit discounts made by an approved guarantor for any mortgage originator that is an investor, or an affiliate of an investor, in the approved guarantor that are not otherwise available to other similar mortgage originators.</text></paragraph><paragraph id="id82fb5aed54f341c0af70066bcd0ed44c"><enum>(2)</enum><header>Report</header><text>The Office of the Inspector General of the Federal Mortgage Insurance Corporation shall, on an annual basis, submit a report to the Corporation and to Congress on the practices and internal controls of approved guarantors with respect to steering or preferential treatment for their investors prohibited by this section.</text></paragraph></subsection></section></subtitle><subtitle id="id7FE45F28A4B14F00B7FC8292367B19AF" style="OLC"><enum>C</enum><header>Securitization Platform and Transparency in Market Operations</header><part id="id23E89F11A4954FC09CAF310019F7D17B" style="OLC"><enum>I</enum><header>Securitization Platform</header><section id="idBFF294997A3B45169D1C1CE56B59ED9C"><enum>321.</enum><header>Establishment of the Securitization Platform</header><subsection id="idf6652cc511574dc3a16c4ec501c85df6"><enum>(a)</enum><header>In general</header><text>The Corporation shall establish an entity known as the <quote>Securitization Platform</quote> (in this part referred to as the <quote>Platform</quote>) that shall be a utility owned by and operated for the benefit of its members as—</text><paragraph id="idF18739C3B23D4F568F34763B2A779752"><enum>(1)</enum><text>a nonprofit cooperative; or</text></paragraph><paragraph id="id7780CA7759BD4AF39FFAD7367CAEAC52"><enum>(2)</enum><text>a cooperative entity other than as described under paragraph (1) that—</text><subparagraph id="id4EB93443278B485B92B5B6C70C5DD448"><enum>(A)</enum><text>best achieves the purposes and obligations of the Platform under section 325; and</text></subparagraph><subparagraph id="id27DD4892DBA844DCBBBCE8FCC22AAA82"><enum>(B)</enum><text>serves the public interest.</text></subparagraph></paragraph></subsection><subsection id="id7e7afec0db1a43aeb1199d1dee4b7798"><enum>(b)</enum><header>Regulated by the Corporation</header><text>The Platform shall be regulated and supervised by the Corporation.</text></subsection><subsection id="idc7b7f9d2b14c423abd50e030791a71fc"><enum>(c)</enum><header>Incorporation</header><paragraph id="ida09e73e2ef674fe9a688e5470a3ab500"><enum>(1)</enum><header>Non Federal status</header><text>The Platform shall not be an agency or instrumentality of the Federal Government.</text></paragraph><paragraph id="id8c9612fca10e40fb96c5cf681a242fd9"><enum>(2)</enum><header>Discretion as to legal form</header><text>The Corporation shall determine the legal form of incorporation of the Platform.</text></paragraph><paragraph id="idd9d8519a36da4028a2364c9c2b3e509e"><enum>(3)</enum><header>Situs of incorporation</header><text>The Corporation shall—</text><subparagraph id="idD7B645D3A9154AE0A1B3DC836A870E71"><enum>(A)</enum><text>determine in which of the several States to incorporate the Platform; and</text></subparagraph><subparagraph id="id5DA161D5DE244207AFD6B9A38FBD654C"><enum>(B)</enum><text>have the authority to amend the State of incorporation to best effectuate the purposes and obligations of this part and other provisions of this Act.</text></subparagraph></paragraph><paragraph id="idFD6D10F52CE24BF397B8B9AFE120559D"><enum>(4)</enum><header>Timing of incorporation</header><text>Not later than 1 year after the agency transfer date, the Corporation shall file and submit the necessary documents to incorporate the Platform in the State determined under paragraph (3)(A).</text></paragraph></subsection><subsection id="id85984ac5367e47dcb5dc6d9f39d7c97e"><enum>(d)</enum><header>Funding by the Corporation and transfer of property</header><paragraph id="id2d343a2efd214265b4abb0f81ea51ecc"><enum>(1)</enum><header>Transfer of funds from the Corporation</header><text>At a time established by the Corporation, the Corporation shall transfer to the Platform such funds as the Corporation, in consultation with the Platform Directors, determines may be reasonably necessary for the Platform to begin carrying out the activities and operations of the Platform.</text></paragraph><paragraph id="id8eaba996c6d4429cb786b8c794a96559"><enum>(2)</enum><header>Transfer of property</header><subparagraph id="id11F98535A8DA4E429CE9DC15CEDA0EB3"><enum>(A)</enum><header>In general</header><text>Consistent with title VI, the Federal Housing Finance Agency, in consultation with the Corporation and, as appropriate, the enterprises, may direct the enterprises to transfer or sell to the Platform any property, including but not limited to, intellectual property, technology, systems, and infrastructure (including technology, systems, and infrastructure developed by the enterprises for the CSP), as well as any other legacy systems, infrastructure, and processes that may be necessary for the Platform to carry out the functions and operations of the Platform.</text></subparagraph><subparagraph id="idE40B66447E71437BB36558218DC00417"><enum>(B)</enum><header>Contractual and other legal obligations</header><text>As may be necessary for the Corporation, the Federal Housing Finance Agency, and the enterprises to comply with legal, contractual, or other obligations, the Federal Housing Finance Agency shall have the authority to require that any transfer authorized pursuant to subparagraph (A) occurs as an exchange for value, including through the provision of appropriate compensation to the enterprises (including as provided in subparagraphs (C) and (D)), or other entities responsible for creating, or contracting with, the CSP.</text></subparagraph><subparagraph id="id508726f9442e425c8e80fa3e52bed7c4"><enum>(C)</enum><header>Maximum return to senior preferred shareholders of the enterprises</header><text>The transfer or sale of property to the Platform under this paragraph shall, as appropriate, be managed by the Federal Housing Finance Agency to obtain resolutions that maximize the return for the senior preferred shareholders of the enterprises to the extent that such resolutions—</text><clause id="ida154ee0aeda24db9b6a473ddfff3a11a"><enum>(i)</enum><text>are consistent with facilitating—</text><subclause id="id894b4bbd2fd14439acdfd4eda2f3310b"><enum>(I)</enum><text>a deep, liquid, and resilient secondary mortgage market for single-family and multifamily mortgage-backed securities to support access to mortgage credit in the primary mortgage market; and</text></subclause><subclause id="idabfed28ea3bb458ba76c81fd9096c3e4"><enum>(II)</enum><text>an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the Corporation with minimum disruption in the availability of loan credit;</text></subclause></clause><clause id="idf7ccebd031eb4658a350931848bed887"><enum>(ii)</enum><text>are consistent with applicable Federal and State law;</text></clause><clause id="idfe3f6b69069b496bbf5d853f3674ffde"><enum>(iii)</enum><text>comply with the requirements of this Act and the amendments made by this Act; and</text></clause><clause id="id67192634d0334b458f9e05b5d5d78e4f"><enum>(iv)</enum><text>protect the taxpayer from having to absorb losses incurred in the secondary mortgage market.</text></clause></subparagraph><subparagraph id="id97433F8878764077B96E7410A898313D"><enum>(D)</enum><header>Required determinations for sale of assets to the Platform</header><text>The Federal Housing Finance Agency may not require the enterprises to make a sale to the Platform under subparagraph (A) that involves the disposition of the property or assets of the enterprises unless the Federal Housing Finance Agency determines that the sale—</text><clause id="idD59027F4394B49C3A0891A58EAE17470"><enum>(i)</enum><text>is consistent with an orderly transition from housing finance markets facilitated by the enterprises to efficient housing finance markets facilitated by the Corporation with minimum disruption in the availability of loan credit;</text></clause><clause id="id6b51754b75b94cc79add8051dc450240"><enum>(ii)</enum><text>does not impede or otherwise interfere with the ability of the Federal Housing Finance Agency or the Corporation to carry out the functions and requirements of this Act;</text></clause><clause id="idf5bb59842f0c458db9a351f84d63db0a"><enum>(iii)</enum><text>does not transfer, convey, or authorize any guarantee or Federal support, assistance, or backing, implicit or explicit, related to any such property or assets being sold; and</text></clause><clause id="ide97433583baf49019a16901ea6809433"><enum>(iv)</enum><text>will maximize the return for the senior preferred shareholders as required under subparagraph (C).</text></clause></subparagraph></paragraph></subsection><subsection id="id6a87dba0117a46a98cc4914b1c324286"><enum>(e)</enum><header>Platform operability</header><text>The Corporation shall establish sufficient redundancies in the Platform so that in the event of operational disruption of the Platform, there is sufficient back-up capacity to—</text><paragraph id="id7C9DEAD8D2D548959015FD21615D8089"><enum>(1)</enum><text>process payments on existing securities issued through the Platform; and</text></paragraph><paragraph id="id6D8844DD107449A4B4E9350C5B8DC534"><enum>(2)</enum><text>structure, form, and issue new securities through the Platform.</text></paragraph></subsection><subsection commented="no" id="id5a754f6426db4721b8a9b7e9528bc19c"><enum>(f)</enum><header>Use by other entities in exigent circumstance</header><paragraph commented="no" id="id358DEDEB4A5346E6862EF0CB3FCF90C5"><enum>(1)</enum><header>In general</header><text>On and after the system certification date, if the Corporation determines that operational or other problems with the Platform do not permit the Platform to operate in a manner that allows the Platform to achieve the purposes and obligations of the Platform under section 325, the Corporation shall have the authority to permit the Platform Directors to use entities other than the Platform to perform the issuance functions required to be performed through the Platform and that are necessary for the proper functioning of the secondary mortgage market.</text></paragraph><paragraph commented="no" id="idBFC082CC116B4023AA67967BE63215AB"><enum>(2)</enum><header>Rule of construction</header><text>Any entity permitted to perform issuance functions that would ordinarily be expected to be performed by the Platform under paragraph (1) shall be regulated and supervised, as appropriate, by the Corporation as if such entity were the Platform itself.</text></paragraph></subsection></section><section id="idbdb3f78e0bc743d3a8a15978af09e491"><enum>322.</enum><header>Management of the Platform</header><subsection id="ide2e5d1a730be4cbbada80a189fbe53cf"><enum>(a)</enum><header>Platform Directors</header><paragraph id="id91037667ab084dd1b78fa1a3d2dbf321"><enum>(1)</enum><header>Authority of the Board</header><subparagraph id="idB78CC2F8B0684B9897E1A85756C9C920"><enum>(A)</enum><header>In general</header><text>The Platform Directors shall have all the powers necessary to carry out the purposes, powers, and functions of the Platform, and in the exercise of such purposes, powers, and functions, and upon approval of the Corporation, shall adopt such rules and guidance and issue such orders as the Platform Directors deem necessary and appropriate.</text></subparagraph><subparagraph id="id31332fcdb9c34e0d971b48abf3c1bcf6"><enum>(B)</enum><header>Conflicts of interest</header><text>The Platform Directors shall develop policies and procedures to monitor and mitigate potential conflicts of interest in carrying out the purposes, powers, and functions of the Platform.</text></subparagraph></paragraph><paragraph id="id5a869fa799fa4094952652a694628b7d"><enum>(2)</enum><header>Initial Board</header><subparagraph id="id249351668e6c483eb2ab24228d74ef73"><enum>(A)</enum><header>Composition</header><text>The initial Platform Directors shall be comprised of 5 directors, each of whom shall be appointed by the Board of Directors but none of whom shall be a member of the Board of Directors.</text></subparagraph><subparagraph id="idD7612B662D624EAE9B562CD5ECF40B12"><enum>(B)</enum><header>Timing of appointment of initial Platform Directors</header><text>The initial Platform Directors shall be appointed pursuant to subparagraph (A) not later than 180 days after the later of—</text><clause id="idc61ff796306948b7940fc1864917bb57"><enum>(i)</enum><text>the filing of the necessary documents to incorporate the Platform as required under section 321(c); or</text></clause><clause id="idb4328e831fea43a09bab44d170dbfa15"><enum>(ii)</enum><text>the approval of the incorporation of the Platform by the relevant State.</text></clause></subparagraph><subparagraph id="idF33F10673B5D4C50968F9F0E776EB9B0"><enum>(C)</enum><header>Term</header><clause id="id371AF97C5E1B43509ED22D410D165666"><enum>(i)</enum><header>In general</header><text>Each initial Platform Director appointed pursuant to subparagraph (A) shall serve for a term of 1 year.</text></clause><clause id="id099f55c2522a42f39103eba31c913118"><enum>(ii)</enum><header>Authority to extend term</header><text>The Board of Directors may—</text><subclause id="idd343a1dabb4c4401ab168c1b4fe38591"><enum>(I)</enum><text>in its discretion, extend for an additional year the term of each initial Platform Director appointed pursuant to subparagraph (A); and</text></subclause><subclause id="idcb405ba97c05402d9451a3b3cbb20051"><enum>(II)</enum><text>upon a determination by the Corporation that the Platform membership does not reflect the diversity or variety of market participants required to conduct the election of the Platform Directors under paragraph (3), extend for an additional 2 years the term of each initial Platform Director appointed pursuant to subparagraph (A).</text></subclause></clause></subparagraph><subparagraph id="id7867C1AB036C428398E37F9791C49A96"><enum>(D)</enum><header>Purpose of the initial Platform Directors</header><text>The initial Platform Directors shall—</text><clause id="idf0c37176ffd74dbfb8a47b35d617f9bc"><enum>(i)</enum><text>draft and enact initial bylaws and other governance documents for the operation of the Platform, including policies and procedures pursuant to paragraph (1)(B);</text></clause><clause id="id3f5058d996a644f6aeb7ebbac65639d8"><enum>(ii)</enum><text>establish criteria for membership in the Platform consistent with the requirements of section 323;</text></clause><clause id="idb303e1549f8647e7b8e5ce4adf60c3f7"><enum>(iii)</enum><text>establish any necessary initial fee structures or usage fee structures under section 324; and</text></clause><clause id="ide77ccad2e87c4e049ebc276c96de877b"><enum>(iv)</enum><text>organize and conduct the election of the Platform Directors from the Platform members as required by paragraph (3).</text></clause></subparagraph></paragraph><paragraph id="id9b1d03d725e94876b1d07b14841e3748"><enum>(3)</enum><header>Elected Board</header><subparagraph id="idfbc96b22b4d74f83a374c2afd5ab0ff3"><enum>(A)</enum><header>Required election; timing of election</header><text>Upon the expiration of the term of the members of the initial Platform Directors, the members of the Platform shall, in accordance with subparagraphs (B) through (F), elect new Platform Directors.</text></subparagraph><subparagraph id="id044ca5fe569643368a794b036de097ec"><enum>(B)</enum><header>Composition</header><clause id="id9BCE7B112992430F92AE8F6F1C0B3DC3"><enum>(i)</enum><header>Diversity</header><text>The Platform Directors elected pursuant to this paragraph shall reflect the diverse range of Platform members, including large, mid-size, and small business members.</text></clause><clause id="id2572C3BA461245D69D6E8675D8F20B6A"><enum>(ii)</enum><header>Members</header><subclause id="idA06156ED496648BF837CD72C637BEF65"><enum>(I)</enum><header>In general</header><text>The Platform Directors elected pursuant to this paragraph shall be comprised of 9 directors as follows:</text><item id="idC05AA9E96D694B559C9923DA587CBE0B"><enum>(aa)</enum><text>8 member directors, including—</text><subitem id="idf4406a00239c4659a1a6bd0305c1ac5a"><enum>(AA)</enum><text>7 member directors who shall be elected from among representatives of the members in the Platform, at least 1 of whom shall represent the interests of small mortgage lenders; and</text></subitem><subitem id="id3a3180b862d04003af10494052a74905"><enum>(BB)</enum><text>1 member director who shall be a representative of a small lender mutual, as established under section 315(k).</text></subitem></item><item id="id9C5F8F2B8AB4462786841DA0876E50EA"><enum>(bb)</enum><text>1 independent director.</text></item></subclause><subclause id="id963F44E833104FAB803867FC86A56810"><enum>(II)</enum><header>Independent director</header><text>The independent director elected pursuant to this paragraph—</text><item id="id50b7a56508094841bf6c0977ce1139fc"><enum>(aa)</enum><text>shall not be an affiliate of any member in the Platform; and</text></item><item id="ide4a1e422ddb3454dafc68687d28a5d36"><enum>(bb)</enum><text>shall have demonstrated knowledge of, or experience in, financial management, financial services, risk management, information technology, or housing finance, which may include affordable housing finance.</text></item></subclause></clause></subparagraph><subparagraph id="id0fcce7e484514d8b97e6f339fe059ac8"><enum>(C)</enum><header>Chairperson</header><text>The Chairperson of the Platform Directors shall be elected from among the Platform Directors elected under this paragraph.</text></subparagraph><subparagraph id="id1ac1a40f4d9e40058bc565fe15cd64a9"><enum>(D)</enum><header>Term</header><clause id="id060442f922fe426f9f194f3a2601ec96"><enum>(i)</enum><header>In general</header><text>Each Platform Director elected under this paragraph shall serve for a term of 2 years.</text></clause><clause id="idbc85934ad78e4e6abbc95dcb1ab9e341"><enum>(ii)</enum><header>Staggered terms</header><text>Notwithstanding clause (i)—</text><subclause id="id278e51e942d94a188ee08eeb8b3e4b49"><enum>(I)</enum><text>the first elected chairperson of the Platform Directors shall be elected to serve for a term of 2 years; and</text></subclause><subclause id="id00a9b3e0d8704ec49ed5242e691f65b8"><enum>(II)</enum><text>of the first 8 other Platform Directors not elected to serve as chairperson:</text><item id="idF77CBB03DD8F4844A72430E82B10541A"><enum>(aa)</enum><text>4 shall be elected to serve for a term of 2 years.</text></item><item id="idD808E7B25D6046829BA3270398214E78"><enum>(bb)</enum><text>4 shall be elected to serve an initial term of 1 year.</text></item></subclause></clause></subparagraph><subparagraph id="ide1a330c284c64b29a4e8f68fe41943b9"><enum>(E)</enum><header>Equal votes</header><text>Platform Directors shall have equal voting rights on any matters before the Platform Directors.</text></subparagraph><subparagraph id="idd71f942b32614de8987e3f54e0c904fd"><enum>(F)</enum><header>Nomination and election procedures</header><text>Procedures for the nomination and election of Platform Directors shall be prescribed by the bylaws adopted by the Platform Directors in a manner consistent with the purposes and provisions of this part.</text></subparagraph><subparagraph id="id00d26e5593c44c2e99d50ac9c93f3402"><enum>(G)</enum><header>Restructuring of Platform Directors</header><text>The Platform Directors elected under this paragraph, with approval from the Corporation, may choose to restructure or reorganize the Platform Directors in a manner different than what is specified under this paragraph following a determination by the Platform Directors and the Corporation that a different Platform board structure or Platform board composition would better achieve the purposes and obligations of this Act, or better serve the owners of the Platform in a manner consistent with the public interest.</text></subparagraph></paragraph></subsection><subsection id="id3fd7a532bd2d40baae0d5935e335dbaa"><enum>(b)</enum><header>Executive officers</header><text>The Platform Directors shall appoint a chief executive officer, chief financial officer, comptroller, chief regulatory officer, and any other officers as the Platform Directors deem necessary to carry out the management and administration of the functions and operations of the Platform.</text></subsection></section><section id="idc8bdf4735b8c47378af48dbc2135fdca"><enum>323.</enum><header>Membership in the Platform</header><subsection id="ide7cc686415dd49179d7ceba4ab48ad0f"><enum>(a)</enum><header>Application</header><paragraph id="id219536e79f47466bb2875b539ff7e900"><enum>(1)</enum><header>In general</header><text>A person seeking to become a member in the Platform, or to be reinstated as a member in the Platform, shall file an application with the Platform Directors.</text></paragraph><paragraph id="id0754d0befa1d4f10af1be1cd124ec946"><enum>(2)</enum><header>Standards</header><text>Consistent with achieving a broad membership that includes small mortgage lenders, as well as large, mid-size, and small business members, the Platform Directors shall develop procedures and standards for—</text><subparagraph id="id7F9E1E32C25E4DD2AFB0C02C00276580"><enum>(A)</enum><text>the application of persons seeking to become members in the Platform; and</text></subparagraph><subparagraph id="id7906FF751DAE43689AE28CC71231B034"><enum>(B)</enum><text>the approval of applicants for membership in the Platform.</text></subparagraph></paragraph><paragraph id="id1ABB4B1991B240FEA8152990C1529412"><enum>(3)</enum><header>Additional standards for approved entities</header><text>The standards for the approval by the Platform Directors of an approved entity as a member in the Platform shall be consistent with and supplement any standards, requirements, and obligations applicable to the approved entity under subtitle B of this title, or any other provision of this Act.</text></paragraph></subsection><subsection id="id1258e5f6d6d040fda957b9d3516d9428"><enum>(b)</enum><header>Members</header><text>The Platform Directors may approve as a member of the Platform any person that applies for membership in the Platform pursuant to subsection (a) that is—</text><paragraph id="id60928B91E5B34E79A918584DD0EF3FD6"><enum>(1)</enum><text>a mortgage aggregator;</text></paragraph><paragraph id="id743AA5C0F6C64E3FBA266B67F385B518"><enum>(2)</enum><text>a mortgage guarantor;</text></paragraph><paragraph id="id56E8487152AE4FD78112248263626516"><enum>(3)</enum><text>a mortgage originator;</text></paragraph><paragraph id="idA3859B69263743E893CE2279EBC6FF83"><enum>(4)</enum><text>a Federal Home Loan Bank or a subsidiary or joint office approved under section 312 of one or more Federal Home Loan Banks;</text></paragraph><paragraph id="idD04B02A02AB246A28E201CABC75C0E16"><enum>(5)</enum><text>a small lender mutual established or approved under section 315; or</text></paragraph><paragraph id="id6535B2D37A2D4CCD8B9599E4EDE954B0"><enum>(6)</enum><text>any other market participant, provided that in the sole determination of the Platform Directors, having such market participant as a member of the Platform is necessary or helpful to fulfilling the purposes and obligations of the Platform under section 325.</text></paragraph></subsection><subsection id="id7a0703fd18714b36aa108b2c644d7d8d"><enum>(c)</enum><header>Termination</header><text>The Platform Directors may terminate membership in the Platform of any member for failure to adhere to any standards established by the Platform Directors.</text></subsection></section><section id="id4359f03a18894dcd95126fd3c837ac04"><enum>324.</enum><header>Fees</header><subsection id="id5ec2d29fb94449a1accf020e0b342d6f"><enum>(a)</enum><header>In general</header><text>The Platform Directors may assess and collect fees, and may, in their discretion, increase or decrease such fees, from the members in the Platform—</text><paragraph id="id96261392A4364CDEB4814D190159EC70"><enum>(1)</enum><text>for initial membership in the Platform, consistent with the requirements of subsection (b);</text></paragraph><paragraph id="id0D6E59FB7E974095B650139B4BADCDDE"><enum>(2)</enum><text>to maintain ongoing membership in the Platform;</text></paragraph><paragraph id="id85295237D11F4070A7C0EEC38ADC3D87"><enum>(3)</enum><text>for use of the Platform, consistent with the requirements of subsection (c); and</text></paragraph><paragraph id="id14841AAB8E25422881E4C70008FFEE1A"><enum>(4)</enum><text>to cover the ongoing costs of the functions and operations of the Platform, including—</text><subparagraph id="id1F71C5E456CE410BADBF67B84D282612"><enum>(A)</enum><text>the purchase of property, technology, and systems developed by either enterprise or others;</text></subparagraph><subparagraph id="id784478918F30443DA057E54275F20CF9"><enum>(B)</enum><text>to develop and invest in new technology;</text></subparagraph><subparagraph id="id0B9299CD567449E598E375C8577B251B"><enum>(C)</enum><text>to build a capital base that would be able to offset, or otherwise mitigate, losses that might occur due to the potential operational failure of the Platform; and</text></subparagraph><subparagraph id="id9DC1BF25C56049099DA2F2C57B89719B"><enum>(D)</enum><text>to conduct any other activities approved by the Platform Directors.</text></subparagraph></paragraph></subsection><subsection id="idebd3809935f84241a86d1998ec8dd34a"><enum>(b)</enum><header>Initial fee</header><text>Upon approval of its application to become a member in the Platform, each new approved member shall pay to the Platform a fee in an amount to be determined by the Platform Directors, provided that such fee amount is consistent with obtaining a broad membership in the Platform that includes small mortgage lenders, as well as large, mid-size, and small business members.</text></subsection><subsection id="id7ac6dac5d6d84321b1cb691edfd9015f"><enum>(c)</enum><header>Usage fees</header><paragraph id="id977dd5b2d3fb4c04a1bfa0ade3b0847a"><enum>(1)</enum><header>Establishment</header><text>Each member in the Platform shall pay usage fees, as such fees are determined by the Platform Directors.</text></paragraph><paragraph id="idCC77F3C5C95045C4980D170FF3ECAB86"><enum>(2)</enum><header>Review of fees</header><text>The Platform Directors shall, not less than annually, review the fee structure established under this subsection and submit any resulting recommendations to amend the fee structure to the Corporation.</text></paragraph><paragraph id="idD152F8C5EFDA4181ACCAB3483027E281"><enum>(3)</enum><header>Assessment and measurement</header><subparagraph id="id332E7CF979B54EE4A259B5DD82411580"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided under subparagraphs (B) and (C), usage fees charged and collected under this subsection shall be equitably assessed and based upon the member’s use of the services offered by the Platform, as such use is to be measured by the total principal balance of the mortgage loans or mortgage-backed securities securitized for the member through the Platform.</text></subparagraph><subparagraph id="id9623B4DF301A49E9B775111132B97EA1"><enum>(B)</enum><header>Tiered fee options</header><text>If the Platform Directors determine that certain entities face a barrier to use the Platform, the Platform Directors may adopt a tiered usage fee structure to promote greater access and a more competitive market for the Platform that may include differential fee structures for usage fee charges incurred by housing finance agencies, small mortgage lenders, Community Development Financial Institutions, mission-based nonprofit lenders, community land trusts, permanently affordable homeownership programs, or other organizations selected by the Corporation.</text></subparagraph><subparagraph id="id7C51CBCAB1154AEEA4087BB23D0C1A0F"><enum>(C)</enum><header>Tiered fee option for covered and noncovered securities</header><text>The Platform Directors may adopt a tiered usage fee structure under this subsection that may include differential fee structures for usage fee charges for the issuance of noncovered securities that differ from the usage fees charged for the issuance of covered securities.</text></subparagraph></paragraph><paragraph id="idf8d25f524e6040529faa0e9b9a32a30d"><enum>(4)</enum><header>Payment</header><text>Usage fees charged under this subsection shall be paid by the member at the time the mortgage loans or mortgage-backed securities are delivered by the member to the Platform.</text></paragraph></subsection><subsection id="id9a6cf30bad814adabc5a1b86ef3ba275"><enum>(d)</enum><header>Corporation review of initial fees and usage fees</header><paragraph id="id77bb6b1cc99c41b78f85c978b3290089"><enum>(1)</enum><header>In general</header><text>The Platform Directors shall submit any fee structure proposal for initial fees or usage fees under subsection (b) or (c) to the Corporation. The Corporation shall approve any initial fee or usage fee structure proposed by the Platform Directors unless the Corporation determines that the fee structure is not consistent with—</text><subparagraph id="id1715332c796745a49af240e855a189c2"><enum>(A)</enum><text>facilitating, a deep, liquid, and resilient secondary mortgage market for mortgage-backed securities; and</text></subparagraph><subparagraph id="idae534a993b8d4d2f9346d8f81ebab2ef"><enum>(B)</enum><text>the purposes and obligations of the Platform under section 325.</text></subparagraph></paragraph><paragraph id="id22c47ed94e014fec96510102950438e5"><enum>(2)</enum><header>Automatic establishment of fees absent Corporation disapproval</header><text>If the Corporation does not issue an order of disapproval of an initial fee or usage fee structure proposed by the Platform Directors within 60 days following the submission of the proposed initial fee or usage fee structure to the Corporation, the proposed initial fee or usage fee structure shall automatically go into effect for the Platform and its members.</text></paragraph><paragraph id="id53a96dbeac8044378a1884a5ef1241de"><enum>(3)</enum><header>Impact of Corporation disapproval</header><text>If the Corporation disapproves an initial fee or usage fee structure proposed by the Platform Directors pursuant to this subsection, the Platform Directors may—</text><subparagraph id="id6F153134BE1B4CD7B57C88C614A4E836"><enum>(A)</enum><text>submit to the Corporation a revised fee or usage fee structure for approval; or</text></subparagraph><subparagraph id="id35c29fecf4d0451aac8ac9c4ef85d673"><enum>(B)</enum><text>if applicable, use the existing approved fee or usage fee structure.</text></subparagraph></paragraph></subsection></section><section id="id0711375123b94204b9a9573999883564"><enum>325.</enum><header>Purposes and obligations of the Platform</header><subsection id="idfcc1ce0e51514677bbe622aa25de2f94"><enum>(a)</enum><header>Purpose</header><text>The purposes of the Platform established under section 321 are to—</text><paragraph id="ide9db82d1aca2414cb3dd380984b7e4ff"><enum>(1)</enum><text>purchase and receive from its members eligible mortgage loans or securities collateralized by eligible mortgage loans for securitization by issuers as covered securities;</text></paragraph><paragraph id="id69cfa21dd87a47549e2a5d30900d3bd2"><enum>(2)</enum><text>issue through the Platform to its members standardized covered securities, or other covered securities, insured by the Corporation pursuant to this Act;</text></paragraph><paragraph id="id94a2353c7e124456bce31e9f36e7d57d"><enum>(3)</enum><text>purchase and receive from its members noneligible mortgage loans or securities not collateralized by eligible mortgage loans for securitization as noncovered securities, to the extent desired or requested by its members; and</text></paragraph><paragraph id="id126f8ad1eade4c658ef429c62edd5815"><enum>(4)</enum><text>issue to its members standardized noncovered securities, or other noncovered securities, that are not insured by the Corporation pursuant to this Act, to the extent desired or requested by its members.</text></paragraph></subsection><subsection id="id833c09c6dc1249b682031eb491b2e0b1"><enum>(b)</enum><header>Powers and functions</header><text>The powers and functions of the Platform are to—</text><paragraph id="id575ca631a56b4a8c99c94ff19856e2f1"><enum>(1)</enum><text>develop the ability to issue, and to issue, standardized covered securities, insured by the Corporation pursuant to this Act, in accordance with subsection (e);</text></paragraph><paragraph id="id8C3EA410D68C4CE5AA2BB8E8C7411CEF"><enum>(2)</enum><text>develop, adopt, and publish standardized securitization documents and agreements (including, but not limited to, uniform pooling, trust, and custodial agreements)—</text><subparagraph id="id0490BE1ABE1D4B808493841BF0AC2017"><enum>(A)</enum><text>required for all covered securities issued by or through the Platform in accordance with section 326(a) (and which shall be made optional for all noncovered securities issued through the Platform); and</text></subparagraph><subparagraph id="idB0F8FAB7EBE24052ADDF4BA14F785CFC"><enum>(B)</enum><text>which—</text><clause id="idC0A266C4B3B34A998FDEE7AAF6415E4E"><enum>(i)</enum><text>shall be drafted in consultation with the Corporation, the Bureau of Consumer Financial Protection, the Department of Housing and Urban Development, and such other Federal regulatory agencies as the Platform Directors determine appropriate;</text></clause><clause id="idA09D4ABAA0A3496D8D77FBDEF94ADAA0"><enum>(ii)</enum><text>may rely upon existing documentation and forms required by the enterprises or other Federal regulatory agencies, to the extent determined by the Platform Directors to be practical or appropriate; and</text></clause><clause id="id8FF33DCA1FBB4522B0D47730F77CA167"><enum>(iii)</enum><text>before being issued through the Platform, shall be approved by the Corporation as being consistent with—</text><subclause id="id5BE410FA440E4E2CA7040024F6A8B5F5"><enum>(I)</enum><text>the requirements under section 326(a); and</text></subclause><subclause id="idBB5A956B12A948A48A7769C176C3B348"><enum>(II)</enum><text>facilitating a deep, liquid, and resilient secondary mortgage market for mortgage-backed securities;</text></subclause></clause></subparagraph></paragraph><paragraph id="idbe1f6718e847400aa7a4f70e9c058c1d"><enum>(3)</enum><text>develop standardized documents approved by the Corporation for servicing and loss mitigation standards pursuant to section 314 for eligible mortgage loans that collateralize the covered securities issued through the Platform to its members, which shall be based on standards set by the Corporation and which may rely upon existing documentation and forms required by the enterprises or other Federal or State regulatory agencies, to the extent determined by the Platform Directors to be practical or appropriate;</text></paragraph><paragraph id="id22c88a07486146a5a9d14997db343973"><enum>(4)</enum><text>as expressly provided in section 326(b)(2)(F), develop, adopt, and publish the required contractual terms for contracts for noncovered securities issued through the Platform, which shall be—</text><subparagraph id="id4ac4f6abb48146219c77c54d9ed3604d"><enum>(A)</enum><text>developed in consultation with the Corporation, the Bureau of Consumer Financial Protection, the Department of Housing and Urban Development, and such other Federal regulatory agencies as the Platform Directors determine appropriate; and</text></subparagraph><subparagraph id="idDCC0ECD055A94B74866B65F120BCE264"><enum>(B)</enum><text>before being issued through the Platform, approved by the Corporation as being consistent with—</text><clause id="id61D688FEDCDF4381B4FB1BB36A31A0A1"><enum>(i)</enum><text>the requirements under section 326(b); and</text></clause><clause id="id4C29EED758E14B3D9D126895B8A58782"><enum>(ii)</enum><text>facilitating a deep, liquid, and resilient secondary mortgage market for mortgage-backed securities;</text></clause></subparagraph></paragraph><paragraph id="id0fa1eec7d8714870ad8a35e858e058a7"><enum>(5)</enum><text>develop, adopt, and publish optional standardized securitization documents and agreements (including, but not limited to, uniform pooling, trust, and custodial agreements) tailored for noncovered securities issued through the Platform, and which may be used as desired or requested by the members of the Platform, in accordance with section 326(c), and which standardized securitization documents and agreements—</text><subparagraph id="idf3defb64a45345d8accc0fbf5b0a441f"><enum>(A)</enum><text>shall be drafted in consultation with the Corporation, the Bureau of Consumer Financial Protection, the Department of Housing and Urban Development, and such other Federal regulatory agencies as the Platform Directors determine appropriate;</text></subparagraph><subparagraph id="id09396A0616FD491F85EC8A7446DB0912"><enum>(B)</enum><text>may rely upon existing documentation and forms required by the enterprises or other Federal or State regulatory agencies, to the extent determined by the Platform Directors to be practical or appropriate; and</text></subparagraph><subparagraph id="idE4DBE730E29C408A98F3F155351930A6"><enum>(C)</enum><text>before being issued through the Platform, shall be approved by the Corporation as being consistent with—</text><clause id="idD34A1BB0D8874ABF848C612C1BE56612"><enum>(i)</enum><text>the requirements under section 326(c); and</text></clause><clause id="id5392ACB194784848AE9CE4979426543E"><enum>(ii)</enum><text>facilitating a deep, liquid, and resilient secondary mortgage market for mortgage-backed securities;</text></clause></subparagraph></paragraph><paragraph id="idC912DFC0D7CD4644A3CE459F9B2D796F"><enum>(6)</enum><text>the extent not otherwise provided in paragraphs (2), (3), and (5), to endeavor to use or rely upon existing documentation and forms required by the enterprises or other Federal or State regulatory agencies, to the extent determined by the Platform Directors to be practical or appropriate;</text></paragraph><paragraph id="idbcb237b7775c4310b482f460a3fc5add"><enum>(7)</enum><text>establish a strong business continuity plan that meets industry best practices and establish sufficient redundancies so that in the event of an operational failure of the Platform there is sufficient back-up capacity to process payments and issue covered and noncovered securities;</text></paragraph><paragraph id="id131d54c9a2ff434d84d555f208eedcf9"><enum>(8)</enum><text>verify that the eligible mortgage loans and securities collateralized by eligible mortgage loans purchased and received by the Platform, including from any small lender mutual established or approved under section 315, for securitization as covered securities, meet the requirements for covered securities under this Act and any regulations adopted by the Corporation pursuant thereto;</text></paragraph><paragraph id="idc743f78f3eb24a21a4e6edf9dcd4efe2"><enum>(9)</enum><text>verify that the noneligible mortgage loans and securities not collateralized by eligible mortgage loans purchased and received by the Platform, including from any small lender mutual established or approved under section 315, for securitization as noncovered securities, meet the requirements for noncovered securities under this Act and any regulations adopted by the Corporation pursuant thereto;</text></paragraph><paragraph id="id098fbd25aaf74540ba043e7278ece622"><enum>(10)</enum><text>for the purpose of securitization, purchase or receive from members of the Platform—</text><subparagraph id="idd6bf005302a64177b846b2597cb71a5b"><enum>(A)</enum><text>eligible mortgage loans, pools of eligible mortgage loans, securities collateralized by eligible mortgage loans, or outstanding mortgage-backed securities issued by the enterprises for securitization as covered securities; and</text></subparagraph><subparagraph id="idF90B58DF5E2C483A8B1A7337D06C0BE2"><enum>(B)</enum><text>noneligible mortgage loans, pools of noneligible mortgage loans, or securities collateralized by noneligible mortgage loans for securitization as noncovered securities, to the extent desired or requested by members of the Platform;</text></subparagraph></paragraph><paragraph id="id70613769B2FD46E3B17028C4E091BA07"><enum>(11)</enum><text>for the purpose of securitization, facilitate the issuance of—</text><subparagraph id="id8c3319bd95694c65920615d0287cadbd"><enum>(A)</enum><text>all covered securities of members of the Platform that are collateralized by eligible mortgage loans, or outstanding mortgage-backed securities issued by the enterprises;</text></subparagraph><subparagraph id="idD574569806F34F35B0BA91360E406866"><enum>(B)</enum><text>all covered securities of members of the Platform that are pooled from—</text><clause id="id4158BDB21D404578A4B2FAFE83A13192"><enum>(i)</enum><text>a single mortgage originator, mortgage aggregator, approved entity, or regulated entity; or</text></clause><clause id="id2F7D13AB4E1646BE82AD02D0BF6BF327"><enum>(ii)</enum><text>multiple mortgage originators, mortgage aggregators, approved entities, or regulated entities;</text></clause></subparagraph><subparagraph id="id55f468e6d7d64242bedf8452cabc0de3"><enum>(C)</enum><text>noncovered securities collateralized by noneligible mortgage loans received from members of the Platform; and</text></subparagraph><subparagraph id="id13d724faf26949499bc9e8d53f96ebb0"><enum>(D)</enum><text>noncovered securities collateralized by noneligible mortgage loans received from members of the Platform that are pooled from—</text><clause id="id12672355279D44558728122CBD369DC3"><enum>(i)</enum><text>a single mortgage originator, mortgage aggregator, or regulated entity; or</text></clause><clause id="idCEA4BB2D95854712AA46CF0EDD2C6058"><enum>(ii)</enum><text>multiple mortgage originators, mortgage aggregators, or regulated entities;</text></clause></subparagraph></paragraph><paragraph id="ide7887f69a9b44984972aa5d1b8887eea"><enum>(12)</enum><text>perform bond administration, data validation, and reporting for all covered and noncovered securities issued through the Platform, including those issued on behalf of any small lender mutual established or approved under section 315;</text></paragraph><paragraph id="id32104cf1947f4f278f6e21c7d89b02ad"><enum>(13)</enum><text>facilitate systems to lower barriers to entry for new mortgage originators and approved entities or access to membership in the Platform;</text></paragraph><paragraph id="idd1795dd9a37c43c19699baeb0f02ea42"><enum>(14)</enum><text>provide essential functions necessary to issue standardized securities which may be compatible with the To-Be-Announced market, for covered securities and, if appropriate, noncovered securities;</text></paragraph><paragraph id="ida30ae0c4a79941a7b6b5333398354ea2"><enum>(15)</enum><text>manage operational and systems related risks associated with delivering covered and noncovered securities and receiving eligible and noneligible mortgage loans;</text></paragraph><paragraph id="idfd91e747ab104196ae4ef9473c344a7f"><enum>(16)</enum><text>develop the capability to offer securitization services to private label issuers;</text></paragraph><paragraph id="idD068D4BE75FA48029AC76C60B364EB47"><enum>(17)</enum><text>require the servicing documentation used for mortgage loans that collateralize securities issued through the Platform to provide a standard method (which may include the use of a single electronic verification system) for a mortgagor who has been denied a loan modification to verify such denial at no cost to the mortgagor;</text></paragraph><paragraph id="idef555b2925354cb0af334c4de202f948"><enum>(18)</enum><text>facilitate the issuance of securitizations for multifamily loans, establish common documentation, or develop other requirements necessary to permit the Platform, or a subsidiary or affiliate thereof, to be used for multifamily loan securitizations if the Platform Directors issue a determination that it would be desirable and practical for the Platform, or a subsidiary or affiliate thereof, to be used to issue or otherwise facilitate multifamily loan securitizations; and</text></paragraph><paragraph id="id86c408e3363e429db77eadf436b298e8"><enum>(19)</enum><text>establish, not later than the system certification date, a Collateral Valuation Advisory Committee—</text><subparagraph id="id44F2D99BB8AC456380CC6F3573FB35B6"><enum>(A)</enum><text>which shall be comprised of 9 members appointed by the Platform Directors, including representatives of appraisers, appraisal management companies, mortgage originators (including small mortgage lenders), investors, real estate professionals, homebuilding professionals, consumer advocates, as well as Federal and State appraisal regulatory organizations;</text></subparagraph><subparagraph id="idb88f76ec75da432f96778b805e7199ca"><enum>(B)</enum><text>the purpose of which shall be to—</text><clause id="id71dead73a6564c5b8fa1baf95d0acfb4"><enum>(i)</enum><text>provide recommendations to the Platform and the Corporation regarding secondary mortgage market residential appraisal guidelines, standards, and reporting formats consistent with the Real Estate Settlement Procedures Act (12 U.S.C. 2603), the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1631">15 U.S.C. 1631 et seq.</external-xref>), and all other applicable Federal and State laws; and</text></clause><clause id="id3123c88496d04d1d9c5e504e66dab705"><enum>(ii)</enum><text>make recommendations regarding the continuation of a repository for valuation reports, taking into account existing operational structures and contractual arrangements; and</text></clause></subparagraph><subparagraph id="id37c4e61c587448a9b8889b3c76927513"><enum>(C)</enum><text>which, in fulfilling its purpose under this paragraph, shall, as appropriate, consult and coordinate with the Appraisal Subcommittee of the Federal Financial Institutions Examinations Council established under title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.).</text></subparagraph></paragraph></subsection><subsection id="idec82564d7a494f228d82ce75a93ef396"><enum>(c)</enum><header>Prohibited activities</header><text>The Platform may not—</text><paragraph id="id52a968d0d8d4402ba54b7d41f05ec5e6"><enum>(1)</enum><text>guarantee any mortgage loans or mortgage-backed securities;</text></paragraph><paragraph id="id48320d6fdb104ddaa3251e712614b5ec"><enum>(2)</enum><text>assume or hold mortgage loan credit risk;</text></paragraph><paragraph id="id5B21146CDE984095A82E86CA0B3AC6A5"><enum>(3)</enum><text>purchase any mortgage loans for cash on a single loan basis for the purpose of securitization;</text></paragraph><paragraph id="id1372a659887847929c46d648318ddb5f"><enum>(4)</enum><text>undertake the issuance of any covered securities through the Platform unless the first loss position is already held by a private entity;</text></paragraph><paragraph id="idb487e7cfc66043f0a8b01bda25b9ce76"><enum>(5)</enum><text>own or hold any mortgage loans or mortgage-backed securities for investment purposes;</text></paragraph><paragraph id="idb0ffc4e87e464516b9a1b25efa4fd206"><enum>(6)</enum><text>make or be a party to any representation and warranty agreement on any mortgage loans; or</text></paragraph><paragraph id="idd9f031efe4a04851bf5ba45e077997cc"><enum>(7)</enum><text>take lender representation and warranty risk.</text></paragraph></subsection><subsection id="id7898e4e5dae44c1985f0ff5087a74f31"><enum>(d)</enum><header>Interoperability with multifamily loan securitization issuance</header><text>The Platform shall be developed in a manner that may permit, and would not preclude, the Platform, or any subsidiary or affiliate thereof, to be used for the issuance of multifamily loan securitizations, provided that the development of this vehicle for multifamily loan securitizations does not delay the ability of the Platform to perform its obligations under this section with respect to single-family securities by the system certification date.</text></subsection><subsection id="idda184763bb7c4d1f8ac4d69d5223434e"><enum>(e)</enum><header>Timing of Platform capacity to develop and to issue standardized securities for the single-family covered securities</header><text>Not later than 2 years following the election of the Platform Directors under section 322(a)(3), or as otherwise permitted under section 601, the Platform shall develop the Platform’s ability to issue, and issue, standardized securities for single-family covered securities.</text></subsection><subsection id="ida554d5daa0524f5fa88e70836da52a51"><enum>(f)</enum><header>Discretion for Platform Directors to issue standardized securities for single-family noncovered securities</header><text>The Platform Directors may develop an ability for the Platform to issue standardized securities for single-family noncovered securities, if the Platform Directors determine that sufficient demand exists among the Platform members for the Platform to issue such a product.</text></subsection></section><section id="id63564847CECA4364A45F455ED92C46D3"><enum>326.</enum><header>Uniform securitization agreements for covered securities and required contractual terms for noncovered securities</header><subsection id="id384034659BFF4A438AD94A0F2030AEC1"><enum>(a)</enum><header>Required uniform securitization agreements for covered securities issued through the Platform</header><paragraph id="idE1E86176C3FD4D85A34C3CB3F465F3D1"><enum>(1)</enum><header>In general</header><text>The Platform Directors shall develop standard uniform securitization agreements for all covered securities to be issued through the Platform, as required pursuant to section 325(b)(2).</text></paragraph><paragraph id="idEF32526B60B646D289770276ED6FA4FB"><enum>(2)</enum><header>Required terms</header><text>The standard uniform securitization agreements required to be developed under paragraph (1) shall include terms relating to—</text><subparagraph id="idac929db4b76340519b1ffc18c5d35e66"><enum>(A)</enum><text>pooling and servicing, including the development of uniform standards and practices consistent with the standards specified by the Corporation pursuant to section 314;</text></subparagraph><subparagraph id="id474d419ae781415a8b3c33b693f0d598"><enum>(B)</enum><text>loss mitigation procedures consistent with those specified by the Corporation pursuant to section 314;</text></subparagraph><subparagraph id="idd605a88dce0345a4beebecac5c89c2aa"><enum>(C)</enum><text>minimum representations and warranties;</text></subparagraph><subparagraph id="ide8ffa9932ba84eab9caf751474deae89"><enum>(D)</enum><text>indemnification and remedies, including for the restitution or indemnification of the Corporation with respect to early term delinquencies of eligible mortgage loans that collateralize a covered security;</text></subparagraph><subparagraph id="idd5a9ee67166f4acf9630939565d6dabd"><enum>(E)</enum><text>the requirements of the indenture for mortgage-backed securities that are exempt from 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>) and the requirements, responsibilities, and duties of trustees, as set forth in the indenture or pooling and servicing agreement;</text></subparagraph><subparagraph id="idcc36c1a9bf0f4955b1ba807da0dcdd4c"><enum>(F)</enum><text>the qualification, responsibilities, and duties of trustees; and</text></subparagraph><subparagraph id="idb30946b901124b6e81fe8c2eb3eacb85"><enum>(G)</enum><text>any other terms or standards the Platform Directors, with approval of the Corporation, determine to be necessary or appropriate.</text></subparagraph></paragraph><paragraph id="ida8ecf89600084209ada428e01aef7421"><enum>(3)</enum><header>Defining representation and warranty violations</header><text>In developing the uniform securitization agreements required under paragraph (1), the Platform Directors shall also develop, adopt, and publish, upon approval by the Corporation, clear and uniform standards that define and illustrate what actions, or omissions to act, comprise a violation of the representations and warranties clauses that are made a part of such agreements.</text></paragraph></subsection><subsection id="idaa041e0b78d948cf895e2d447e27caaa"><enum>(b)</enum><header>Required contractual terms for contracts for all noncovered securities issued through the Platform</header><paragraph id="idFA79B0C33B8C4C8693B0CCAC64C7444A"><enum>(1)</enum><header>In general</header><text>All contracts for noncovered securities issued through the Platform shall include a set of required contractual terms relating to the obligations of the parties to each contract.</text></paragraph><paragraph id="id063e0800a0e24598ae145279317a46f6"><enum>(2)</enum><header>Required contractual terms</header><text>The required contractual terms for agreements for all noncovered securities issued through the Platform shall provide the obligations of the parties to a contract including the following considerations:</text><subparagraph id="id3d4897dd44bb41d3adfa8cc3281cbe03"><enum>(A)</enum><text>Pooling and servicing.</text></subparagraph><subparagraph id="id66a1e35fc7d94c12a210d381accdb1ae"><enum>(B)</enum><text>Loss mitigation procedures.</text></subparagraph><subparagraph id="idb9009f7f0cf045af9d04ca6c16a3cbf2"><enum>(C)</enum><text>Representations and warranties.</text></subparagraph><subparagraph id="id9db7d2fd12884a98b2fb20a5b3709bb3"><enum>(D)</enum><text>Indemnification and remedies.</text></subparagraph><subparagraph id="id125228674fe14fe3b524166668ee5979"><enum>(E)</enum><text>The qualification, responsibilities, and duties of trustees, including, but not limited to, requirements set forth in the indenture or pooling and servicing agreement, or any applicable provisions of the Trust Indenture Act of 1939 (<external-xref legal-doc="usc" parsable-cite="usc/15/77aaa">15 U.S.C. 77aaa et seq.</external-xref>).</text></subparagraph><subparagraph id="idacc32ef4b19840988bd363ce68fcca3a"><enum>(F)</enum><text>Other terms or standards the Platform Directors, with approval of the Corporation, determine to be necessary or appropriate to protect or facilitate the operation of the Platform.</text></subparagraph></paragraph><paragraph id="idf24c854e929847309508403cde6f5b81"><enum>(3)</enum><header>Permissible adjustments</header><text>Parties to contracts for noncovered securities described under this subsection may supplement the required contractual terms identified under paragraph (2) with any additional contractual terms so desired by the parties to contracts for noncovered securities issued through the Platform.</text></paragraph></subsection><subsection id="id5c8e2c6cee8548d9b1ab292f9d5be2d1"><enum>(c)</enum><header>Optional uniform securitization agreements for noncovered securities issued through the Platform</header><text>The Platform Directors may develop optional uniform securitization agreements for use by noncovered securities that are issued through the Platform that include standards and obligations that are different from those included in the uniform securitization agreements for covered securities as set forth in subsection (a), provided that—</text><paragraph id="id84bcb49b94ca4cee97d5fddfe9e7c7f5"><enum>(1)</enum><text>the agreements include the required contractual terms required for noncovered securities that are issued through the Platform set forth in subsection (b); and</text></paragraph><paragraph id="id4c287f8e6aaa4fb6a7a2880288398b59"><enum>(2)</enum><text>the Platform Directors determine that sufficient demand exists among the members of the Platform for the Platform to issue such optional uniform securitization agreements for use by noncovered securities.</text></paragraph></subsection><subsection id="id7eccb7540b43433a93a8bfa06dfc703b"><enum>(d)</enum><header>Agreements for noncovered securities issued off the Platform</header><text>Nothing in this section shall preclude, or require, noncovered securities that are not issued through the Platform from adopting the—</text><paragraph id="id32c3cb160962487f9d0da015c8c7292a"><enum>(1)</enum><text>uniform securitization agreements for covered securities issued through the Platform developed under subsection (a);</text></paragraph><paragraph id="id4c732314183d4de499cbe090f8709ee9"><enum>(2)</enum><text>optional uniform securitization agreements for noncovered securities issued through the Platform developed under subsection (c); or</text></paragraph><paragraph id="id714fcdac41a0435cbfa023f1e82d801a"><enum>(3)</enum><text>required contractual terms for contracts for noncovered securities issued through the Platform developed under subsection (b).</text></paragraph></subsection><subsection id="id510611a209f748e8948e86ac807d307a"><enum>(e)</enum><header>Consultation required</header><text>The Platform Directors shall consult with market participants, including servicers, originators, issuers, and mortgage investors, and community stakeholders and representatives of homeowners in developing—</text><paragraph id="id3f2fbbde94874baaa9e7289ce81c336b"><enum>(1)</enum><text>the uniform securitization agreements pursuant to subsection (a);</text></paragraph><paragraph id="id48230453bac4436ea105047d86a8b4d8"><enum>(2)</enum><text>the required contractual terms for contracts for noncovered securities issued through the Platform pursuant to subsection (b); and</text></paragraph><paragraph id="ided458464c1f14db797db3e6a8273d40f"><enum>(3)</enum><text>the optional uniform securitization agreements for noncovered securities issued through the Platform pursuant to subsection (c).</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id197a0741-5a21-4a16-b11d-c2b2ef3ab60d"><enum>327.</enum><header>Approval and standards for collateral risk managers</header><subsection id="id0c0a8fb94d3d470284993b7b3548307e"><enum>(a)</enum><header>Standards for approval of collateral risk managers</header><text>The Corporation shall develop, adopt, and publish standards for the use of collateral risk managers who may work with the Platform, as well as trustees and servicers of mortgage-backed securities to manage mortgage loan collateral, including standards with respect to—</text><paragraph id="ide89a53b1c1b340a087d928cbbbaee0c8"><enum>(1)</enum><text>tracking mortgage loan repurchases;</text></paragraph><paragraph id="id24a185ed1a484c45aa47e20304092de5"><enum>(2)</enum><text>compliance with obligations under any applicable securitization documents; and</text></paragraph><paragraph id="ida640aadeb79a4a9fb680a0703cfaaf72"><enum>(3)</enum><text>managing—</text><subparagraph id="id741C5EE7BF31439C830D483F3F455104"><enum>(A)</enum><text>any disputes; and</text></subparagraph><subparagraph id="idF40F2828FE694F9B965A9E241F983ADF"><enum>(B)</enum><text>the resolution process.</text></subparagraph></paragraph></subsection><subsection id="id5fd04922ae9444279844dbc52dafd764"><enum>(b)</enum><header>Additional required standards</header><text>The standards required under subsection (a) shall include the review of foreclosure loss mitigation programs established under section 314 for approved servicers.</text></subsection></section></part><part id="id450169404CE646F385606D5644FFA2D1" style="OLC"><enum>II</enum><header>Transparency in market operations</header><section id="idB48002401B8E42758C1914332BD455D5"><enum>331.</enum><header>Review of loan documents; disclosures</header><subsection id="id3CA52C3A1CE040CEB50A75D7597061CF"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Corporation, in consultation and coordination with the Securities and Exchange Commission, shall, by rule—</text><paragraph id="idEE0516A672FD4D269F7DB35ECFD07CA3"><enum>(1)</enum><text display-inline="yes-display-inline">require market participants, as appropriate, to make available to private market investors in connection with the first loss position on a covered security, including through use of the Securitization Platform established under section 321, all—</text><subparagraph id="id16E70CB6D3FA4B93902AC7AFCC111849"><enum>(A)</enum><text display-inline="yes-display-inline">documents relating to eligible mortgage loans collateralizing that covered security; and</text></subparagraph><subparagraph id="idD451CBBC4E5041628E9366D6A6B61660"><enum>(B)</enum><text display-inline="yes-display-inline">servicing reports of the approved servicer relating to such eligible mortgage loans;</text></subparagraph></paragraph><paragraph id="id11BC9EF05CA14D1FBCB45E1AAAAEFA11"><enum>(2)</enum><text>require market participants, as appropriate, to disclose to investors information that is substantially similar, to the extent practicable, to disclosures required of issuers of asset-backed securities under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78m">15 U.S.C. 78m(a)</external-xref>, 78o(d)) until the covered security is fully paid, other than information that the Corporation determines, in consultation and coordination with the Securities and Exchange Commission, is not applicable to a covered security, a particular type of covered security, or eligible mortgage loans collateralizing a covered security;</text></paragraph><paragraph id="idF0964C6203444C1A86D75F587474204D"><enum>(3)</enum><text>require that all disclosures must be made consistent with the antifraud provisions of the Federal securities laws; and</text></paragraph><paragraph id="idAB639A5E40ED43B6A3D16DC2542C0657"><enum>(4)</enum><text>establish the timing, frequency, and manner in which such access and disclosures are made.</text></paragraph></subsection><subsection id="id6958B05BCE704C2E8E91AE7613D42876"><enum>(b)</enum><header>Access and disclosures</header><text>In prescribing the rules required under subsection (a), the Corporation shall take into consideration—</text><paragraph id="id37E4333F19E14AC0BC74F727205E647C"><enum>(1)</enum><text>the potential cost of such access and disclosures;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1BC03FCE6B044365B6CDE6E4210F4B99"><enum>(2)</enum><text>the effect of such access and disclosures on liquidity in the housing finance market; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3B5C92C125B94058A07693426408FEA5"><enum>(3)</enum><text>the interests of investors.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id457F272E8EBA4955BBEE5B8F8C2BB5EB"><enum>(c)</enum><header>Privacy protections</header><text>In prescribing the rules required under subsection (a), the Corporation shall take into consideration issues of consumer privacy and all statutes, rules, and regulations related to privacy of consumer credit information and personally identifiable information. Such rules shall expressly prohibit the identification of specific borrowers.</text></subsection></section><section id="id6168A184E17B4EFC8786CD9891664A98"><enum>332.</enum><header>National mortgage database</header><subsection id="id3935715B8BD941FCAC0215E64D82FC23"><enum>(a)</enum><header>Transfer</header><text>Effective on the system certification date, there are transferred to the Corporation all functions of the Federal Housing Finance Agency of the Corporation relating to the rights, responsibilities, and obligations of the Federal Housing Finance Agency pursuant to the Inter-Agency Agreement (or any successor thereto) entered into by the Federal Housing Finance Agency and the Bureau of Consumer Financial Protection with respect to the development, construction, maintenance, operation, and funding of the National Mortgage Database.</text></subsection><subsection id="idF80E846949A64B45A84B60D950C96421"><enum>(b)</enum><header>Privacy</header><text>In exercising authority under this section, the Corporation and the Bureau of Consumer Financial Protection shall—</text><paragraph id="id543ADA46A248499A8231B38E538EA8CC"><enum>(1)</enum><text>take steps to ensure the privacy of consumers, including prohibiting the identification of specific borrowers;</text></paragraph><paragraph id="idA1DF7587F3154462B4202FBA579335BF"><enum>(2)</enum><text>minimize the collection and storage of personally identifiable information; and</text></paragraph><paragraph id="id71D1D7DDD5E14CA19D0A102357BE0CBC"><enum>(3)</enum><text>consider all statutes, rules, and regulations relating to the privacy of consumer credit information and personally identifiable information.</text></paragraph></subsection><subsection id="id3BAA9AF7ADFA4753BA1EC251AF5F42A3"><enum>(c)</enum><header>Duplication</header><text>The Chairperson and the Director of the Bureau of Consumer Financial Protection shall take all reasonable steps necessary to minimize conflicts and duplication of the data required under this section with data collected, published, or otherwise obtained by other Federal regulators, including the data disclosure system required under section 304(f) of the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2803">12 U.S.C. 2803(f)</external-xref>).</text></subsection><subsection id="idD520D3D081044FBF95145C883210A6F9"><enum>(d)</enum><header>Minimize burden on reporting entities</header><text>If 2 or more entities are required by this section to report the same mortgage data relating to the same mortgage loan, the entities may, by agreement that is clearly communicated to the Corporation and the Bureau, determine that only 1 of such entities will report the data. If 1 of such entities reports the required mortgage data, it shall not be a violation of this section for the other entities not to report the data.</text></subsection><subsection id="idAFA672AE91384A5BA4143E9E8A0CFA10"><enum>(e)</enum><header>Access to data</header><text>The Corporation and the Bureau of Consumer Financial Protection shall each establish, and cause to be published in the Federal Register, the initial date on which—</text><paragraph id="idA751CD5A20394F20BD473010351598EE"><enum>(1)</enum><text>the public shall begin to have access to any data put into the public domain, in accordance with this section and in a manner that is easily accessible to the public; and</text></paragraph><paragraph id="idDE53CA56150742A49C610310BBAEB281"><enum>(2)</enum><text>all mortgage data is required to be put into the public domain, in accordance with this section.</text></paragraph></subsection></section><section id="idF7EA1655F1474603B9057D43E87BBACB"><enum>333.</enum><header>Working group on electronic registration of mortgage loans</header><subsection id="id4BDBE5D58F6A4288940F73C759CE303E"><enum>(a)</enum><header>Establishment</header><text>Not later than 180 days after the agency transfer date, the Corporation shall establish a working group to study—</text><paragraph id="id62E8C4E471844D68A89B388A5F0B07FD"><enum>(1)</enum><text>whether the establishment of a national electronic mortgage registry system is necessary; and</text></paragraph><paragraph id="idBA37F7D3DE13408194BD7DF59E6BD553"><enum>(2)</enum><text>how to establish, operate, and maintain a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans.</text></paragraph></subsection><subsection id="id7CDA919B405646C397804ED7CBCF1A2A"><enum>(b)</enum><header>Composition</header><text>The working group established under subsection (a) shall be composed of the following:</text><paragraph commented="no" id="idC1A8FFBD6581407089C9DF8915814A2E"><enum>(1)</enum><text>The Chairperson or the Chairperson's designee.</text></paragraph><paragraph commented="no" id="idF78DDB4415D84418865C51D251CD848F"><enum>(2)</enum><text>The Director of the Bureau of Consumer Financial Protection or the Director's designee.</text></paragraph><paragraph id="idc37dc37440ef4a77b0e24f9f33d1cb49"><enum>(3)</enum><text>The Chairman of the Federal Deposit Insurance Corporation or the Chairman’s designee.</text></paragraph><paragraph id="id20140be967f6435fae0d50537707cd11"><enum>(4)</enum><text>The Chairman of the Securities and Exchange Commission or the Chairman’s designee.</text></paragraph><paragraph id="idcad9bb08c1d84692b2b22b6d92975891"><enum>(5)</enum><text>The Chairman of the Federal Reserve Board or the Chairman’s designee.</text></paragraph><paragraph id="id2b9399cb7068401795d7efc81d32e72c"><enum>(6)</enum><text>The Comptroller of the Currency or the Comptroller’s designee.</text></paragraph><paragraph id="id7739d96d750843e88674ce7dc4a64322"><enum>(7)</enum><text>A representative from the Federal Home Loan Bank System.</text></paragraph><paragraph id="idd0b21101e67b4f588cba7a7d99c3ceb8"><enum>(8)</enum><text>A representative from a Federal Reserve Bank.</text></paragraph><paragraph id="id3fe9d70b95bb4834a023542efd32a126"><enum>(9)</enum><text>Individuals selected by the Chairperson from among the following:</text><subparagraph id="id4d71ff9834a349feb93cfcce5fca03fb"><enum>(A)</enum><text>State and local government agencies and representatives, including housing finance agencies and those with expertise in property records, electronic recording, and the Uniform Commercial Code.</text></subparagraph><subparagraph id="id31e8bd357d0049f48d10cbb3c7ba4c22"><enum>(B)</enum><text>The National Conference of Commissioners on Uniform State Laws</text></subparagraph><subparagraph id="idce3c6a45db914a9eaaba265ac7c98b8a"><enum>(C)</enum><text>Industry groups, including single-family and multifamily mortgage originators, title insurers, servicers, issuers, and investors.</text></subparagraph><subparagraph id="id3883840027464021ae1259fbf527fec6"><enum>(D)</enum><text>Consumer groups, including representatives of homeowners, community stakeholders, and housing organizations.</text></subparagraph><subparagraph id="id34cc1d6ba46e40a9b0e3f79d125ba7cd"><enum>(E)</enum><text>Individuals with technical expertise, including those with expertise in designing, constructing and maintaining mortgage databases.</text></subparagraph></paragraph></subsection><subsection id="idF616AA42B0D940CE81B6D41EFB330DDD"><enum>(c)</enum><header>Duties</header><text>The duties of the working group established under subsection (a) are to assess and develop recommendations on the necessity for and feasibility of establishing, operating, and maintaining a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans to document custody and registration of mortgage loans, notes, titles, liens, deeds of trust, and other security instruments, in order to automate, centralize, standardize, and improve the tracking of changes in—</text><paragraph id="idEE0F9F38BBAE4D75855E3D202548857D"><enum>(1)</enum><text>the ownership of mortgage loans, deeds of trust, and other security instruments;</text></paragraph><paragraph id="idAA862318898E47BD936B7B3472257D49"><enum>(2)</enum><text>the ownership of the beneficial interest in promissory notes secured by any mortgage loan, deed of trust, or other security instrument;</text></paragraph><paragraph id="id6202E9DB00404539AEA98ED3091F63E8"><enum>(3)</enum><text>the servicing rights for any mortgage loan, deed of trust, or other security instrument; and</text></paragraph><paragraph id="id4E6D5423E5254F109B50D4BB5F48E0B6"><enum>(4)</enum><text>such other information as the Corporation may require.</text></paragraph></subsection><subsection id="idE347898B3B3B44838C8DDE9EB59933DA"><enum>(d)</enum><header>Considerations</header><text>In carrying out the duties under this section, the working group established under subsection (a) shall consider—</text><paragraph id="id57A426B9B81646AA85F14A1C6619CD9A"><enum>(1)</enum><text>the cost to States and localities, including any impact on revenue generated by local recording of mortgage loan documents;</text></paragraph><paragraph id="id448D55DD88E34D11A6779947EF4DD56A"><enum>(2)</enum><text>the feasibility of allowing States and localities to continue to collect fees and revenue;</text></paragraph><paragraph id="idA00C468463BD43B9838F41B662F68E58"><enum>(3)</enum><text>the implications of data accuracy on judicial or non-judicial foreclosure;</text></paragraph><paragraph id="idC49021754F6F431F9C4981EAE56CFD9A"><enum>(4)</enum><text>the need to minimize conflicting mortgage loan registry requirements;</text></paragraph><paragraph id="id9920845977464676B929AF11DF0F793C"><enum>(5)</enum><text>the need to provide consumers with access to key information about the ownership and servicing of their mortgage loans;</text></paragraph><paragraph id="idca9b3d5f018b4849b7240c3089951779"><enum>(6)</enum><text>the need to provide data accuracy, security, and privacy;</text></paragraph><paragraph id="id73c74295d81a4dbcaa03daf8b4e4b14f"><enum>(7)</enum><text>existing State real property and commercial laws and any such laws in development, including an electronic mortgage registry law developed as a uniform State law proposal;</text></paragraph><paragraph id="ide77e40a83ab44f1fb3c60d3213a9f9d6"><enum>(8)</enum><text>the costs and benefits of developing and maintaining a national mortgage registry system, including any potential impact on consumer mortgage credit and industry participants;</text></paragraph><paragraph id="idfb694bfb10bf47528370322c50e832f1"><enum>(9)</enum><text>the feasibility of using existing industry standards and capabilities in the operation of a national mortgage registry system; and</text></paragraph><paragraph id="idc08952e6d1c3483d9a814b9d81e58bb6"><enum>(10)</enum><text>any research, reports, or other work undertaken by outside experts, including Federal and State entities.</text></paragraph></subsection><subsection id="id4B7CC4AF38124433A5D6AB0EE65826D0"><enum>(e)</enum><header>Report</header><text>Not later than 2 years after the date on which the working group is established under subsection (a), the working group shall issue a publicly available report, which shall—</text><paragraph id="id7BC775F40DF84C8282DC0C1D4F291E71"><enum>(1)</enum><text>include recommendations—</text><subparagraph id="id662255B694684741A5D4E3AAD2614F9F"><enum>(A)</enum><text>as to whether the establishment of a national electronic mortgage registry system is necessary or appropriate in the public interest or for the protection of the Mortgage Insurance Fund; and</text></subparagraph><subparagraph id="id4F6B4942C17544BFAA6835B53E2ACF3A"><enum>(B)</enum><text>on how to establish, operate, and maintain a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans; and</text></subparagraph></paragraph><paragraph id="idD30BAFF73C08401C99764847986B39BF"><enum>(2)</enum><text>if the working group recommends that the establishment of the national electronic mortgage registry system is necessary or appropriate under paragraph (1), outline the minimum requirements for such registry, which shall—</text><subparagraph id="id608C86011E184C8DB80644A3533D4EEF"><enum>(A)</enum><text>include considerations for the development and implementation of electronic mortgage registry systems by State and local government agencies, including requirements to ensure accurate reporting to such systems; and</text></subparagraph><subparagraph id="idD401DBE638EF48F6B69A90F8F68E2BBF"><enum>(B)</enum><text>satisfy the recommendations of this report.</text></subparagraph></paragraph></subsection><subsection id="id93CD1D77E0324E59ADE48E1901547279"><enum>(f)</enum><header>Rulemaking</header><paragraph id="idCA9B1DF9924648239BBAE47E3677F159"><enum>(1)</enum><header>In general</header><text>Beginning 5 years after publication of the report under subsection (e), the Corporation may, by rule, establish a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans, deeds of trust, or other security instruments in accordance with the findings of the report if—</text><subparagraph id="id30ECA5F0586548DA8F9CCD68BBF94CAB"><enum>(A)</enum><text>the Corporation determines that electronic mortgage registry systems have not been created by State and local government agencies in accordance with the minimum requirements established in the report; and</text></subparagraph><subparagraph id="idB484724E8EE54564930BD627C25CC3D1"><enum>(B)</enum><text>the establishment of a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans remains necessary or appropriate in the public interest or for the protection of the Mortgage Insurance Fund.</text></subparagraph></paragraph><paragraph id="idA46A06F434664D349460547C16C71452"><enum>(2)</enum><header>Conflicting reports</header><text>If the Corporation establishes a national electronic mortgage registry system under paragraph (1), the Corporation shall provide approved entities a reasonable amount of time to correct a filing made in the national electronic mortgage registry system established under paragraph (1) that is in direct conflict with any filing in a State or local real property recording system.</text></paragraph><paragraph id="id5A76A4486DE84311BD640747DF21485A"><enum>(3)</enum><header>Authority to extend establishment of registries</header><text>The Corporation, in consultation with appropriate State and local government agencies responsible for real property recordation, may extend the period of time provided under paragraph (1) for a single period of not more than 5 years if the Corporation determines that the extension is necessary or appropriate.</text></paragraph><paragraph id="idC0F7A6A4D2B1478982A471E438DEBA4E"><enum>(4)</enum><header>Consultation and coordination with State and local agencies</header><text>To promote consistency in and minimize disruption to the housing finance system and systems for the local recording of mortgage loan documents, the Corporation shall consult and coordinate with appropriate State and local government agencies responsible for real property recordation when developing and issuing rules under this subsection.</text></paragraph><paragraph id="idE0A060A4995942968F896E4663169F2A"><enum>(5)</enum><header>Requirements on rules</header><text>The rules and standards promulgated under this section shall recognize and protect valid perfected security interests in registered mortgage-related documents.</text></paragraph></subsection><subsection id="idFBDE44064779406B9A25AAD5C064C0A5"><enum>(g)</enum><header>Rules of construction</header><paragraph id="idB5921B6545E44D9DAEF1D45FEB0458F8"><enum>(1)</enum><header>Limitation on liability</header><text>Nothing in this section shall be construed as implying or establishing a private right of action against an approved entity for filings made to a national electronic mortgage registry system established under subsection (f)(1) or other filing actions taken pursuant to subsection (f).</text></paragraph><paragraph id="idA93C0A2350C9452CB9EE145B04D3D816"><enum>(2)</enum><header>Limitation on supervisory or enforcement authority</header><text>Nothing in this section shall be construed as authorizing the Corporation, before the establishment of a national electronic mortgage registry system under subsection (f)(1), to exercise supervisory or enforcement authority with respect to an approved entity relating to a real property filing action in a State or local real property recording system by the approved entity.</text></paragraph><paragraph id="idC336CB37EA0144F1A88F46A36116A542"><enum>(3)</enum><header>Preemption</header><text>Nothing in this section shall be construed as preempting, altering, annulling, exempting, or affecting the applicability of any State or local law, including those laws relating to real property recording or foreclosure.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idB7773526AD9A477F88E1633AF7361B5B"><enum>334.</enum><header>Multiple lender issues</header><text display-inline="no-display-inline">With respect to the dwelling of a borrower that serves as security for an eligible mortgage loan, if the borrower enters into any credit transaction that would result in the creation of a new mortgage loan or other credit lien on such dwelling where the loan-to-value ratio of such credit transaction amount is 80 percent or more, the creditor (as defined in <external-xref legal-doc="usc" parsable-cite="usc/12/1026">section 1026.2(a)(17)</external-xref> of title 12 of the Code of Federal Regulations) shall notify the creditor of the senior eligible mortgage loan within 30 days after consummation of such transaction.</text></section><section id="idE6FF5D713BCC4F1B8118ECEE0FAF61D4"><enum>335.</enum><header>Required harmonization of standards within eligible mortgage criteria</header><subsection id="id716de5005148442291d635c50280d799"><enum>(a)</enum><header>In general</header><text>The Corporation shall consult and coordinate with the Bureau of Consumer Financial Protection to ensure that the minimum standards issued by the Corporation with respect to eligible single-family mortgage loans pursuant to section 2(29) remain, to the greatest extent possible, substantially similar to rules promulgated by the Bureau pursuant to section 129C(b) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1639c">15 U.S.C. 1639c(b)</external-xref>) provided that any revisions to, or amendments of, such minimum standards issued by the Corporation—</text><paragraph id="id12c67b1f65e744b89cc0b14761ffbbe7"><enum>(1)</enum><text>conform to all of the other requirements set forth under section 2(29); and</text></paragraph><paragraph id="idb438a6925804475cbf1f32f1855b285c"><enum>(2)</enum><text>in the determination of the Corporation, do not negatively impact the Mortgage Insurance Fund.</text></paragraph></subsection><subsection id="id44bbe354ea834c38867ba37969e42c11"><enum>(b)</enum><header>Annual report on any changes or differences in rules</header><text>The Corporation shall, on an annual basis, submit to the Chair and Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Chair and Ranking Member of the Committee on Financial Services of the House of Representatives a report that—</text><paragraph id="idb5b823f65b814a96a842ec4ddd977112"><enum>(1)</enum><text>describes any changes to the minimum standards identified in subsection (a);</text></paragraph><paragraph id="idfed4affcca3c48aaa29af34dfbcd4039"><enum>(2)</enum><text>describes the economic analysis developed and used by the Corporation for any changes described under paragraph (1) in order to ensure such changes do not violate the duties of the Corporation to protect the Mortgage Insurance Fund; and</text></paragraph><paragraph id="id93afb91916194345b5ccd12033334e75"><enum>(3)</enum><text>identifies any changes that occurred and differences that exist between the minimum standards developed, adopted, and maintained by the Corporation and the rules promulgated by the Bureau pursuant to section 129C(b) of the Truth in Lending Act (15 U.S.C. 1639c(b)).</text></paragraph></subsection></section></part></subtitle><enum>IV</enum><header>FHFA and FMIC Transition</header><section id="idbac2340b60294335ba468611b4f33772"><enum>401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text><paragraph id="id8101C410D0324E5C943A8080DCC88A5F"><enum>(1)</enum><text>the term <term>Director</term> means—</text><subparagraph id="id2077BD3FB1E2421CB7F572C306933529"><enum>(A)</enum><text>during the period beginning on the date of enactment of this Act and ending on the day before the agency transfer date, the Director of the Existing Agency; and</text></subparagraph><subparagraph id="id59CB3495CAFE4887B4F23C31B0A76745"><enum>(B)</enum><text>on and after the agency transfer date, the Director of the Federal Housing Finance Agency of the Corporation appointed under section 402(a)(2);</text></subparagraph></paragraph><paragraph id="idB580643D695D4474BCF1A026414DCCC7"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>Existing Agency</term> means the Federal Housing Finance Agency, as constituted on the day before the agency transfer date;</text></paragraph><paragraph id="idE585640E514F46C49A278D6E9E0C48AB"><enum>(3)</enum><text>the term <term>function</term> means any duty, obligation, power, authority, responsibility, right, privilege, activity, or program;</text></paragraph><paragraph commented="no" id="id68B2AC3C93B54D59843AEBDBA902AB16"><enum>(4)</enum><text>the term <quote>regulated entity</quote> has the same meaning as in section 1303(20) of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502(20)</external-xref>); and</text></paragraph><paragraph id="idB0B251EED25A4F4BB488BC1F8D00DBA1"><enum>(5)</enum><text>the term <term>Transition Committee</term> means the Federal Mortgage Insurance Corporation Transition Committee established under section 404(a)(1).</text></paragraph></section><section id="idD862C09AFF88449E98E2C74CB89B6C18"><enum>402.</enum><header>FHFA transition</header><subsection commented="no" id="id55282f5160344d819980df2ee4a19bff"><enum>(a)</enum><header>Establishment</header><paragraph commented="no" id="id66E608A4024342018244B9E328178777"><enum>(1)</enum><header>In general</header><text>Effective on the agency transfer date, there is established in the Corporation the Federal Housing Finance Agency, which shall be maintained as a distinct entity within the Corporation.</text></paragraph><paragraph commented="no" id="id8ED3F6B79C9D4FCA9B973113B6F4CDCA"><enum>(2)</enum><header>Director</header><text>The Federal Housing Finance Agency shall be headed by a Director, who shall be—</text><subparagraph commented="no" id="id4C4C363563DE4EE9BE270F99653439E3"><enum>(A)</enum><text>appointed by the President, by and with the advice and consent of the Senate; and</text></subparagraph><subparagraph commented="no" id="id7BA2CBA16E6248BB80746376E8720F48"><enum>(B)</enum><text>a non-voting member of the Board of Directors.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id6f92fca0bf2f48a0b77b07912e6724c2"><enum>(b)</enum><header>Federal Housing Finance Agency Transfer</header><paragraph commented="no" id="idA1FCEAB8AC13429B8111396BD124362F"><enum>(1)</enum><header>Transfer of property and functions</header><text>Effective on the agency transfer date and unless otherwise specified by this Act, all property and functions of the Federal Housing Finance Agency are transferred to the Federal Housing Finance Agency of the Corporation.</text></paragraph><paragraph commented="no" id="id1a8cb8858e974a1488c7de65af852d28"><enum>(2)</enum><header>Incumbent Director</header><text>The individual serving as the Director of the Existing Agency on the day before the agency transfer date may serve as the Director of the Federal Housing Finance Agency of the Corporation until the end of the term of such individual as Director of the Existing Agency under section 1312(b)(2) of the Safety and Soundness Act (12 U.S.C. 4512(b)(2)), as in effect on the day before the agency transfer date.</text></paragraph><paragraph commented="no" id="id868a689e99374f61aae5d1e05d138066"><enum>(3)</enum><header>Transition chairperson</header><subparagraph commented="no" id="idDD10A890D4784BE898F030CE98A02854"><enum>(A)</enum><header>In general</header><text>During the period beginning on the agency transfer date and ending on the date on which the first individual is appointed as Chairperson under section 202, the Director shall serve as the Transition Chairperson of the Corporation and, except as provided in subparagraph (B), shall exercise all authorities of the Chairperson, unless stated otherwise.</text></subparagraph><subparagraph commented="no" id="id895C712A2079421B81569E1363C78B87"><enum>(B)</enum><header>Limitation on authority</header><text>In serving as the Transition Chairperson of the Corporation pursuant to subparagraph (A), the Director shall not have the authority to establish any rule under section 2 or any rule relating to approved entities under title III.</text></subparagraph></paragraph></subsection><subsection commented="no" id="idb17908a8b23f478b875d35b62239c642"><enum>(c)</enum><header>Powers and duties</header><paragraph commented="no" id="idCD54AC544558419B84161DF394228033"><enum>(1)</enum><header>In general</header><text>The Director of the Federal Housing Finance Agency of the Corporation shall—</text><subparagraph commented="no" id="idd5225fc313f34215abc63dba58b850f1"><enum>(A)</enum><text>retain and exercise all powers, including conservatorship and receivership powers, as amended by this Act, of the Director of the Existing Agency on the day before the agency transfer date relating to the Federal Home Loan Bank System, the Federal Home Loan Banks, and the enterprises;</text></subparagraph><subparagraph commented="no" id="id607d0abf93f24402a338b0e13762fa4a"><enum>(B)</enum><text>manage and implement actions authorized by the Corporation related to the transition to the new housing finance system that impact the conservatorship or receivership of regulated entities; and</text></subparagraph><subparagraph commented="no" id="id03e344406e7c4083a864351f9779afd1"><enum>(C)</enum><text>consult with other members of the Transition Committee and the Board of Directors as may be appropriate to fulfill the requirements of this Act.</text></subparagraph></paragraph><paragraph commented="no" id="id764853C3616C49E0A1DC39B0756D613E"><enum>(2)</enum><header>Autonomy of FHFA</header><text>Except as provided in section 604(a)(2), or as otherwise specifically provided in this Act, the Chairperson and the Board of Directors may not—</text><subparagraph commented="no" id="idaf4c541c7cb240acaefd593b9815d755"><enum>(A)</enum><text>intervene in any matter or proceeding before the Director, unless otherwise specifically provided by law;</text></subparagraph><subparagraph commented="no" id="idd571dc92e4884df689b5a21d4da4749b"><enum>(B)</enum><text>appoint, direct, or remove any officer or employee of the Federal Housing Finance Agency of the Corporation; or</text></subparagraph><subparagraph commented="no" id="id4be3dbc6c50b42b2ab291b2fdc633541"><enum>(C)</enum><text>merge or consolidate the Federal Housing Finance Agency of the Corporation, or any of the functions or responsibilities of the Federal Housing Finance Agency of the Corporation, with any division, office, or other component of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id3adf3ca7125f4c229c8d32d5cfb0b1bf"><enum>(d)</enum><header>Agency expenditures and budget</header><paragraph id="idBFF2433CF0944D48BF63376555899941"><enum>(1)</enum><header>In general</header><text>After the agency transfer date, the Director of the Federal Housing Finance Agency of the Corporation—</text><subparagraph id="idCFDEDE45269C4354BC5A26DA34CBB1AD"><enum>(A)</enum><text>except as provided in paragraph (2), may obligate and expend amounts available to the Federal Housing Finance Agency; and</text></subparagraph><subparagraph id="id51DFBCDE3C0F4B8B8CFFFF0CA1C4C905"><enum>(B)</enum><text>shall submit regular updates to the Board of Directors.</text></subparagraph></paragraph><paragraph id="id36b4a0cef374448fb3d4412128fe1748"><enum>(2)</enum><header>Limitation on amount</header><subparagraph id="id3D5BCEC1889843BABC2B13E2AD354685"><enum>(A)</enum><header>Before Chairperson appointed</header><text>During the period beginning on the agency transfer date and ending on the date on which the first individual is appointed as Chairperson under section 202, the Director shall require approval from the Transition Committee for any agency capital expenditure in excess of $5,000,000.</text></subparagraph><subparagraph id="idf64c20425b4d4f3093789266aa12a2d7"><enum>(B)</enum><header>Chairperson appointed</header><text>On and after the date on which the first individual is appointed as Chairperson under section 202, the Director shall require approval from the Board of Directors for any agency capital expenditure in excess of $5,000,0000.</text></subparagraph></paragraph></subsection><subsection id="idff46b3e831de4759bfd8bc540724b25a"><enum>(e)</enum><header>Cooperation</header><text>During the period beginning on the date of enactment of this Act and ending on the system certification date, the Board of Directors and the Director shall cooperate and coordinate in the exercise of their respective authorities to facilitate and achieve an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the Corporation with minimum disruption in the availability of mortgage credit.</text></subsection><subsection id="idB6996B59A9904B37A93B8C03AD3A4FD7"><enum>(f)</enum><header>Coordination and continuation of certain actions</header><paragraph id="id7ED029A290A54F5E821DA5FE21E88762"><enum>(1)</enum><header>In general</header><text>All regulations, orders, determinations, and resolutions described in paragraph (2) shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Federal Housing Finance Agency of the Corporation until modified, terminated, set aside, or superseded in accordance with applicable law by the Federal Housing Finance Agency of the Corporation, any court of competent jurisdiction, or operation of law.</text></paragraph><paragraph id="id51CDB08C3A544B9EB1371059EAEEBCA4"><enum>(2)</enum><header>Applicability</header><text>A regulation, order, determination, or resolution is described in this paragraph if it—</text><subparagraph id="id36ABF1CB77B14A71BACA9F3CD0F3730D"><enum>(A)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text><clause id="id7B23F29C8D774CA1A90FD80FEC947462"><enum>(i)</enum><text>the Existing Agency;</text></clause><clause id="id142C7F36D62C42FC80E0664E625D1D62"><enum>(ii)</enum><text>the Federal Housing Finance Board; or</text></clause><clause id="id98AC9242632F49D6906B14422D4EF751"><enum>(iii)</enum><text>a court of competent jurisdiction, and relates to functions transferred by this section;</text></clause></subparagraph><subparagraph id="id3FA48D22574B4F5FB834F41F9E36B0FF"><enum>(B)</enum><text>relates to the performance of functions that are transferred by this section; and</text></subparagraph><subparagraph id="idF1A48BB0673F4F4EA693F6E7BC458E05"><enum>(C)</enum><text>is in effect on the agency transfer date.</text></subparagraph></paragraph></subsection><subsection id="id661ABD94B62C47AAB0D3FAFD071ADBE7"><enum>(g)</enum><header>Use of agency services</header><text>Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Existing Agency before the agency transfer date in connection with functions that are transferred to the Federal Housing Finance Agency of the Corporation shall—</text><paragraph id="id5C853BDBD93D4A129226BF0BC114BB96"><enum>(1)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and</text></paragraph><paragraph id="idB09EF9D445E6483FAA9AD90B0B8D9B3B"><enum>(2)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text></paragraph></subsection><subsection id="id948EDAE9CA544CB0AB1A6011AFDA15BD"><enum>(h)</enum><header>Savings provisions</header><paragraph id="idEFF047A982324E068DC71CC1606C40AC"><enum>(1)</enum><header>Existing rights, duties, and obligations not affected</header><text>Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, the Director of the Existing Agency, or any other person, which—</text><subparagraph id="id7114530C42024CEDB8F3AEC627BE8171"><enum>(A)</enum><text>arises under—</text><clause id="id2CC73090AD664D8F891E38C3D366B526"><enum>(i)</enum><text>the Safety and Soundness Act;</text></clause><clause id="id0BF12B85637847D8B746323FA29720EE"><enum>(ii)</enum><text>the Federal National Mortgage Association Charter Act;</text></clause><clause id="id2F787D224C58431E9084A0B4E46C22F8"><enum>(iii)</enum><text>the Federal Home Loan Mortgage Corporation Act; or</text></clause><clause id="id7AB6F099C8DD45F484109E756B2F376E"><enum>(iv)</enum><text>any other provision of law applicable with respect to the Existing Agency; and</text></clause></subparagraph><subparagraph id="id57716B1AEC094BBDAE90240DBBF572A4"><enum>(B)</enum><text>existed on the day before the agency transfer date.</text></subparagraph></paragraph><paragraph id="id32DAD93C2D2D4EB481EF8621B163832B"><enum>(2)</enum><header>Continuation of suits</header><text>No action or other proceeding commenced by or against the Director of the Existing Agency in connection with functions that are transferred to the Federal Housing Finance Agency of the Corporation shall abate by reason of the enactment of this Act, except that the Director of the Federal Housing Finance Agency of the Corporation shall be substituted for the Director of the Existing Agency as a party to any such action or proceeding.</text></paragraph></subsection><subsection id="id0A1EB2F760EE4EC08C10359501ECE197"><enum>(i)</enum><header>Technical and conforming amendments</header><paragraph id="id407A71DB812A4C0EBE3519F8475D6525"><enum>(1)</enum><header>Federal Housing Enterprises Financial Safety and Soundness Act of 1992</header><text>The Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended—</text><subparagraph id="id5c7e338344fe481d91e415f6f4558655"><enum>(A)</enum><text>in section 1303—</text><clause id="idef3cdc4a8b2d42279a05307aca074e3d"><enum>(i)</enum><text>in paragraph (2), by striking <quote>Federal Housing Finance Agency established under section 1311</quote> and inserting <quote>the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established under section 402(a)(1) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote>; and</text></clause><clause id="id92352eb808b0404580ce9a8911dc78a5"><enum>(ii)</enum><text>in paragraph (9), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Agency</quote>;</text></clause></subparagraph><subparagraph id="id2316CDC34FC74AFDB142D744CFD5530A"><enum>(B)</enum><text>in section 1311(a), by striking <quote>established</quote> and all that follows through <quote>Government</quote> and inserting <quote>established in the Federal Mortgage Insurance Corporation, the Federal Housing Finance Agency, which shall be maintained as a distinct entity within the Federal Mortgage Insurance Corporation</quote>;</text></subparagraph><subparagraph id="idCE84E5F47EEF4F51B6E6FCEC3D0D2C7D"><enum>(C)</enum><text>in section 1312—</text><clause id="id7A8EEDD3928840A3BCDF76419BCA9788"><enum>(i)</enum><text>in subsection (a)—</text><subclause id="id0D1FFBBCF270486D9A10E4EEECDFE75B"><enum>(I)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">Establishment of position</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Director</header-in-text></quote>; and</text></subclause><subclause id="id18F759C3B2644313BA27779BB9AC8A0B"><enum>(II)</enum><text>by striking, <quote>established the position of</quote>; and</text></subclause></clause><clause id="id54AB9397FBB04B769679C006BF2773FD"><enum>(ii)</enum><text>in subsection (b)(1), by striking <quote>by the President</quote> and all that follows through <quote>housing finance</quote> and inserting <quote>in accordance with section 402(a)(2) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote>; and</text></clause></subparagraph><subparagraph id="idEFE5A99E41524A0EB3D9FA39D27F0C08"><enum>(D)</enum><text>in section 1367—</text><clause id="id475F7AB43FC447BE85FF9877C7539AE7"><enum>(i)</enum><text>in subsection (a)(7), by striking <quote>When acting</quote> and inserting <quote>Except as may be provided in section 604(a)(2) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>, or as otherwise specifically provided for in such Act, when acting</quote>; and</text></clause><clause id="idE0DF0AB6EC28458189DEFECBB8D486A3"><enum>(ii)</enum><text>by amending subsection (b)(2)(D) to read as follows:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id9F2214A66AF24C3FB560C34C5FBDD3B1" reported-display-style="italic" style="OLC"><subparagraph id="idd4187cca-2d05-49c1-a423-cee3aad150e0"><enum>(D)</enum><header>Power as conservator</header><clause id="idC8254BFC76C74381844A69230B11A10E"><enum>(i)</enum><header>Enterprises</header><text>On and after the agency transfer date, as that term is defined in section 2 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>, the Agency shall, as conservator, take such actions as are necessary—</text><subclause id="idc87adf56-be5a-4adf-852e-31b01427b295"><enum>(I)</enum><text>to wind down the operations of the enterprises in an orderly manner that complies with the requirements of such Act;</text></subclause><subclause id="ida00a1372-6e99-4964-9c09-873e26093969"><enum>(II)</enum><text>to manage the affairs, assets, and obligations of the enterprises and to operate the enterprises in compliance with the requirements of such Act;</text></subclause><subclause id="id2e1ee1bb-7ddd-4a1f-a965-3ee16c698543"><enum>(III)</enum><text>to undertake and carry out any sale, transfer, or disposition authorized in sections 315(c), 321(d), 604(i)(2), 701(b), or 702 of such Act in order to facilitate the orderly transition to the new housing finance system authorized by such Act; and</text></subclause><subclause id="id4942bef1-a7e7-4291-a386-fd04d2363aa9"><enum>(IV)</enum><text>to maintain liquidity and stability in the secondary mortgage market until such time as the enterprises shall have no authority to conduct new business, pursuant to title VI of such Act.</text></subclause></clause><clause id="idD0291CE578904C1498E4CAB49538EB54"><enum>(ii)</enum><header>Federal Home Loan Banks</header><text>The Corporation may, as conservator, take such actions as are—</text><subclause id="id4046C64C670F46E880A838D2C5E34FC9"><enum>(I)</enum><text>necessary to put a Federal Home Loan Bank in a sound and solvent condition; and</text></subclause><subclause id="idE74984D771E64AFF895D41A734C20764"><enum>(II)</enum><text>appropriate to carry on the business of a Federal Home Loan Bank and preserve and conserve the assets and property of the Federal Home Loan Bank.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="id353CD89CE00D40B7B81FBFA8B1DD341F"><enum>(2)</enum><header>Federal Home Loan Bank Act</header><text>The Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1421">12 U.S.C. 1421 et seq.</external-xref>) is amended—</text><subparagraph id="id773f90e58c1645b88629eb09e7d6a013"><enum>(A)</enum><text>by striking <quote>Chairman of the Director of Governors</quote> each place that term appears and inserting <quote>Chairman of the Board of Governors</quote>; and</text></subparagraph><subparagraph id="id8970BDAD317C4DDC9583E7482C24BA4A"><enum>(B)</enum><text>in section 2—</text><clause id="idE88CE6BC42CF4D2FB63AB26C082CFCE3"><enum>(i)</enum><text>in paragraph (11), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Agency</quote>; and</text></clause><clause id="idD07D831BD86E4CD6B86A56EB9F705CCB"><enum>(ii)</enum><text>in paragraph (12), by striking <quote>the Federal Housing Finance Agency</quote> and all that follows through the period at the end and inserting <quote>the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established under section 402(a)(1) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote>.</text></clause></subparagraph></paragraph><paragraph id="id64DDDD7BD2D84B419BE17208656E8B9B"><enum>(3)</enum><header>Federal Deposit Insurance Act</header><text>The Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>) is amended—</text><subparagraph id="idC8438F45697642FE9FCE4090F9D6F90A"><enum>(A)</enum><text>in section 11(t)(2)(A), by inserting after clause (vii) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id4A30F2CD26FF4C96B13731BC3B48C82C" reported-display-style="italic" style="OLC"><clause id="idFF3074E219944119BDD0C4FACC912576"><enum>(viii)</enum><text>The Federal Mortgage Insurance Corporation.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id55C935EE505C4431BF3602A6C72EF7D6"><enum>(B)</enum><text>in section 18(x)—</text><clause id="id26DC27F1D22646209EFB88FFA17E1B55"><enum>(i)</enum><text>by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>any Federal banking agency</quote> each place that term appears; and</text></clause><clause id="idB7DC59F3F4CB4B50815BE98D53F688C0"><enum>(ii)</enum><text>by inserting <quote>Corporation,</quote> after <quote>such Bureau,</quote> each place that term appears.</text></clause></subparagraph></paragraph><paragraph id="id414bb05b776e4cec8e9c8bd36d56cb0d"><enum>(4)</enum><header>Federal Financial Institutions Examination Council Act of 1978</header><text>The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301 et seq.</external-xref>) is amended—</text><subparagraph id="ida442ccfccff3492e89af9dc048c6f1f7"><enum>(A)</enum><text>in section 1004(a)—</text><clause id="idD2B67276C2B2426695401957EA21C4D8"><enum>(i)</enum><text>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and</text></clause><clause id="id9131198835B44C6C830E415A5DAA4806"><enum>(ii)</enum><text>by inserting after paragraph (4) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id4EF8A93DEF0F4B19A72DA5F55A755766" reported-display-style="italic" style="OLC"><paragraph id="idCC7211C6C4E34FE1A1507C511F8E6B32"><enum>(5)</enum><text>the Chairman of the Federal Mortgage Insurance Corporation,</text></paragraph><after-quoted-block>; </after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="ide035add95d534d6f9147c093c22ba5ab"><enum>(B)</enum><text>in section 1011, in first sentence, by inserting <quote>Federal Mortgage Insurance Corporation,</quote> after <quote>Financial Protection,</quote>; and</text></subparagraph><subparagraph id="id66A072FB103B4C30A893FD84A0157AC2"><enum>(C)</enum><text>by inserting at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id9D2E83BE9DA14ED59DD085893DF6662B" reported-display-style="italic" style="OLC"><section id="idCE92D6CFA25E433A9D28227217D15810"><enum>1012.</enum><header>Establishment of the Subcommittee on Mortgage Servicing</header><text display-inline="no-display-inline">There shall be within the Council a subcommittee to be known as the <quote>Subcommittee on Mortgage Servicing</quote>, which shall consist of designees of heads of the Federal financial institution regulatory agencies, the Bureau of Consumer Financial Protection, the Federal Mortgage Insurance Corporation, the Federal Housing Finance Agency, and a representative of the State Liaison Committee established under section 1007.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idddf007a941f340bfbdb9a057c2957f66"><enum>(5)</enum><header>FIRREA</header><text>Section 1216 of the Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1833e) is amended—</text><subparagraph id="id8AC1E4AB5C464AAFA23674F76F87172B"><enum>(A)</enum><text>in subsection (a), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subparagraph><subparagraph id="idE57BB35ACF134A82AE2F8AF8D99EF0B0"><enum>(B)</enum><text>in subsection (c), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subparagraph></paragraph><paragraph id="id49549A96A2E84AB6A486D9701C574397"><enum>(6)</enum><header>Housing and Urban-Rural Recovery Act of 1983</header><text>The first sentence of section 469 of the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701p–1) is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>cooperation of </quote>.</text></paragraph><paragraph id="id6952a4c873a64c288e24e082e4d19f9e"><enum>(7)</enum><header>Paperwork Reduction Act</header><text><external-xref legal-doc="usc" parsable-cite="usc/44/3502">Section 3502(5)</external-xref> of title 44, United States Code (commonly known as the <quote>Paperwork Reduction Act</quote>), is amended by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></paragraph><paragraph id="idB9955364B6344E71A7AB57970437FFF4"><enum>(8)</enum><header>Public Law 93–495</header><text>Section 111 of <external-xref legal-doc="public-law" parsable-cite="pl/93/495">Public Law 93–495</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/12/250">12 U.S.C. 250</external-xref>) is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></paragraph><paragraph id="id5F8D9D6AA80940C4ABF9F1FD1DCCD403"><enum>(9)</enum><header>Right to Financial Privacy Act of 1978</header><text>Section 1101(7) of the Right to Financial Privacy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3401">12 U.S.C. 3401(7)</external-xref>) is amended—</text><subparagraph id="idB842BE036CE44B8D9B9A8960DE333315"><enum>(A)</enum><text>in subparagraph (H), by striking <quote>; or</quote> and inserting a semicolon;</text></subparagraph><subparagraph id="id0EB81BA4C164407B91371E07F2939615"><enum>(B)</enum><text>in subparagraph (I), by striking <quote>; and</quote> and inserting <quote>; or</quote>; and</text></subparagraph><subparagraph id="id38F368B5DCD140FAB1FF72B960C55768"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id7EA702FFEE2449A29E9B3E6A63EC17E2" reported-display-style="italic" style="OLC"><subparagraph id="id38A796A02C814072A010DBACCE7CB6C5"><enum>(J)</enum><text>the Federal Mortgage Insurance Corporation; and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id1cc2f0ada57f40379f40a12bf9e35e9c"><enum>(10)</enum><header>Title 5, United States Code</header><text>Title 5, United States Code, is amended—</text><subparagraph id="id6b857760604c4de79bf466af5572638a"><enum>(A)</enum><text>in section 5313, by inserting the following new item:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idf35432005a834754a55f6ae870abf2d7" reported-display-style="italic" style="OLC"><paragraph id="idba427d11c22c49e7a24596a56af62e31"><enum></enum><text>Chairperson of the Federal Mortgage Insurance Corporation.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id7cd50a3211ae457cb9736b40c4e5c91d"><enum>(B)</enum><text>in section 3132(a)(1)(D)—</text><clause id="id6500681f6d20452c8497a58304b04dc0"><enum>(i)</enum><text>by striking <quote>Supervision,,</quote> and inserting <quote>Supervision,</quote>; and</text></clause><clause id="id3dea13945a3c4384a1ca5d308ad151e9"><enum>(ii)</enum><text>by inserting the <quote>Federal Mortgage Insurance Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>.</text></clause></subparagraph></paragraph><paragraph id="id5ce5e23e19b44b78b2c90063de44e6f1"><enum>(11)</enum><header>Title 18, United States Code</header><text>Title 18, United States Code, is amended by striking <quote>Federal Housing Finance Agency</quote> each place such term appears in each of sections 212, 657, 1006, 1014, and 1905 and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></paragraph><paragraph id="idAE1577C9A00046C586850AB8D9C53799"><enum>(12)</enum><header>Federal Credit Union Act</header><text>Section 107(7)(E) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1757">12 U.S.C. 1757(7)(E)</external-xref>) is amended by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>the Federal National Mortgage Association</quote>.</text></paragraph><paragraph id="id2CEB4E8525D54EF085E443D15DBF66A9"><enum>(13)</enum><header>Bank Holding Company Act</header><text>Section 5(c)(5)(B) of the Bank Holding Company Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1844">12 U.S.C. 1844(c)(5)(B)</external-xref>) is amended—</text><subparagraph id="idA8A7F96971A4431FAE3DC8F4D27D47EE"><enum>(A)</enum><text>in clause (iv), by striking <quote>; or</quote> and inserting a semicolon;</text></subparagraph><subparagraph id="idE25338202EF845F287A7E9DC77A7A317"><enum>(B)</enum><text>in clause (v), by striking the period at the end and insert <quote>; or</quote>; and</text></subparagraph><subparagraph id="id68220FA7F9614259BD6609CDCBD86908"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id536925673A0B4DD3B7BE69DCFA979F19" reported-display-style="italic" style="OLC"><clause id="id535B888B36F34E5E8A40C7EA2BF4E428"><enum>(vi)</enum><text>an approved guarantor approved under section 311 of the Housing Finance Reform and Taxpayer Protection Act of 2014.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idD7F9E1118D7646D5B5B8C0B1B5682B29"><enum>(14)</enum><header>Congressional Budget Act of 1974</header><text>Section 504(c) of the Congressional Budget Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/2/661c">2 U.S.C. 661c(c)</external-xref>) is amended—</text><subparagraph id="idcba6f02efc6e4abebedfd71245df778a"><enum>(A)</enum><text>in paragraph (1), by striking <quote>or</quote>;</text></subparagraph><subparagraph id="idA4490895A0804F9A81FA5FE6842B5DC5"><enum>(B)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text></subparagraph><subparagraph id="id8567c8da55154124bc5371bb39088d41"><enum>(C)</enum><text>by inserting after paragraph (1) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idC692B935C55245CDABA07C395C0029AD" reported-display-style="italic" style="OLC"><paragraph id="idFF9AFE22F96B4284BF73D6F85CD00035"><enum>(2)</enum><text>are credit programs of the Federal Mortgage Insurance Corporation; or</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idE7641DC6A83544F69BE163670573D8FE"><enum>(15)</enum><header>Effective date</header><text>The amendments made by this subsection shall take effect on the agency transfer date.</text></paragraph></subsection></section><section id="id5df053a442be4ebd9bc3593bebc32bb7"><enum>403.</enum><header>Transfer and rights of employees of the FHFA</header><subsection id="id22206e86984141a6bdbe9563f72522bb"><enum>(a)</enum><header>Transfer</header><paragraph id="idB855E60CE4424E98AAA5814E756AB5FA"><enum>(1)</enum><header>In general</header><text>Effective on the agency transfer date, each employee of the Existing Agency, including each employee of the Office of the Inspector General of the Existing Agency, who is in good standing, shall be transferred to the Corporation for employment, and such transfer shall be deemed a transfer of function for purposes of section 3503 of title 5, United States Code.</text></paragraph><paragraph id="idC1AAC5630458405F90E1EB19797368A2"><enum>(2)</enum><header>Assignment</header><subparagraph id="id3422881F14A745A8846AA5568605833F"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), an employee transferred under paragraph (1) shall be appointed to a position in the Federal Housing Finance Agency of the Corporation.</text></subparagraph><subparagraph id="idE483DB7297924E9887EF4D63127A349E"><enum>(B)</enum><header>Exception</header><text>On and after the agency transfer date, the Chairperson, in consultation with the Director of the Federal Housing Finance Agency of the Corporation, may reassign an employee transferred under paragraph (1) to a component of the Corporation other than the Federal Housing Finance Agency of the Corporation, if the reassignment is in the best interest of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="idecad03b5e2a54337b4851d2771dade1a"><enum>(b)</enum><header>Guaranteed positions</header><paragraph id="id9907dfc710c04e34a2ee7a29306c9e62"><enum>(1)</enum><header>In general</header><text>Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer.</text></paragraph><paragraph id="id92249df16b8f4650a4663d2cf4f5eb37"><enum>(2)</enum><header>No involuntary separation or reduction</header><text>An employee transferred under subsection (a) holding a permanent position on the day immediately preceding the transfer may not be involuntarily separated or reduced in grade or compensation during the 12-month period beginning on the date of transfer, except for cause, or, in the case of a temporary employee, separated in accordance with the terms of the appointment of the employee.</text></paragraph></subsection><subsection id="id6394508887124ca7a985a90a16c4f023"><enum>(c)</enum><header>Appointment authority for excepted and senior executive service employees</header><paragraph id="id7b3b435486664973a31ff0c37c666c43"><enum>(1)</enum><header>In general</header><text>In the case of an employee occupying a position in the excepted service or the Senior Executive Service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such position shall be transferred, subject to paragraph (2).</text></paragraph><paragraph id="id70b076502ea549bc8d460cd30247db39"><enum>(2)</enum><header>Decline of transfer</header><text>The Corporation may decline a transfer of authority under paragraph (1), to the extent that such authority relates to—</text><subparagraph id="id105ffcb5fb704c56ab0d3bb2c26e24a5"><enum>(A)</enum><text>a position excepted from the competitive service because of its confidential, policymaking, policy-determining, or policy-advocating character; or</text></subparagraph><subparagraph id="ide3b9c97ddc354141911ddcb1bc8efec3"><enum>(B)</enum><text>a noncareer appointee in the Senior Executive Service (within the meaning of section 3132(a)(7) of title 5, United States Code).</text></subparagraph></paragraph></subsection><subsection id="id5709cc60e4124b7cadd32785b8b7ceba"><enum>(d)</enum><header>Employee benefit programs</header><paragraph id="id17cb2844ef274c8fad7148c2b098c286"><enum>(1)</enum><header>In general</header><text>Any employee of the Existing Agency accepting employment with the Corporation as a result of a transfer under subsection (a) may retain, for 12 months after the date on which such transfer occurs, membership in any employee benefit program of the Existing Agency or the Corporation, as applicable, including insurance, to which such employee belongs on the date of the transfer under subsection (a), if—</text><subparagraph id="id4bf61973b35e4d00a64db2facfbe48bc"><enum>(A)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text></subparagraph><subparagraph id="id0eddc3eb34614d27a8f1f5938c59aebd"><enum>(B)</enum><text>the benefit or program is continued by the Corporation.</text></subparagraph></paragraph><paragraph id="idbd6cc56fd7c148fe82c914724a59fc09"><enum>(2)</enum><header>Cost differential</header><subparagraph id="id90ac4325461542798f72c5147880c219"><enum>(A)</enum><header>In general</header><text>The difference in the costs between the benefits which would have been provided by the Existing Agency and those provided by this section shall be paid by the Corporation.</text></subparagraph><subparagraph id="id240f43ea5a32488796a8a05513a9f00a"><enum>(B)</enum><header>Health insurance</header><text>If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by the Corporation, the employee shall be permitted to select an alternate Federal health insurance program not later than 30 days after the date of such election or notice, without regard to any other regularly scheduled open season.</text></subparagraph></paragraph></subsection><subsection id="id6a949a2ce76c49e5be146ea845bde7f2"><enum>(e)</enum><header>Enterprise employees</header><text>To ensure an orderly transition to the new housing finance system established under this Act and to facilitate the organization, formation, and competency of the Corporation, the Corporation may hire employees from the enterprises.</text></subsection><subsection id="idf4ec7635cf10411e95dfdb46611b09dd"><enum>(f)</enum><header>Reorganization</header><text>If the Corporation determines that a reorganization of the workforce is required, the reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.</text></subsection></section><section id="id91281679135649F087D47D338264E58E"><enum>404.</enum><header>Transition Committee</header><subsection id="id12f3e5d0ff8c412caba447d56466e6dc"><enum>(a)</enum><header>Establishment and purpose</header><paragraph id="ide4814d7988174e5b8827abec3ec911ff"><enum>(1)</enum><header>In general</header><text>Effective on the date of enactment of this Act, there is established the Federal Mortgage Insurance Corporation Transition Committee.</text></paragraph><paragraph id="id04854a896a694da597dd781264ee3a92"><enum>(2)</enum><header>Purpose</header><text>The purpose of the Transition Committee shall be to—</text><subparagraph id="ide643de9fc8cd47afbd7474efe28ecce2"><enum>(A)</enum><text>develop a plan to facilitate an orderly transition to a new housing finance system in accordance with this Act; and</text></subparagraph><subparagraph id="id9736e006975945db840a1d9eed2274af"><enum>(B)</enum><text>provide advice to the Transition Chairperson or the Board when consulted.</text></subparagraph></paragraph></subsection><subsection id="ide5578a0503644ed3be0fe2c4da20f83a"><enum>(b)</enum><header>Composition</header><paragraph id="idb6beedb8b8254436ba51027a939ee4c1"><enum>(1)</enum><header>Members</header><text>The Transition Committee shall be comprised of—</text><subparagraph id="id30b5f5a860d24e36baca6a3223c903cd"><enum>(A)</enum><text>the Director;</text></subparagraph><subparagraph id="idfea9c9203e5a4a5593fcf894f8cf8594"><enum>(B)</enum><text>the Chairman of the Federal Deposit Insurance Corporation;</text></subparagraph><subparagraph id="ide3e5fe46d7d24780920030a90da1ca82"><enum>(C)</enum><text>the Comptroller of the Currency;</text></subparagraph><subparagraph id="id323466931698441c94de106177e4f0a0"><enum>(D)</enum><text>the Chairperson; and</text></subparagraph><subparagraph id="id475e75b289fa480ca83f2f8187adc7b3"><enum>(E)</enum><text>any member of the Board of Directors.</text></subparagraph></paragraph><paragraph id="iddf34881d445944aa8a6bcba0281af2cb"><enum>(2)</enum><header>Chairperson</header><subparagraph id="id2B4DE7CF03BE4650BEE96DA7D37CA8E5"><enum>(A)</enum><header>Before Chairperson of Corporation</header><text>Until the date on which the first individual is appointed as Chairperson under section 202, the Director shall serve as the Chairperson of the Transition Committee.</text></subparagraph><subparagraph id="idEAD82A2C4E214E579E794AF45B6557F8"><enum>(B)</enum><header>Chairperson of Corporation appointed</header><text>On and after the date on which the first individual is appointed as Chairperson under section 202, the Chairperson shall serve as the Chairperson of the Transition Committee.</text></subparagraph></paragraph><paragraph id="ida03b865f458646cd8f41dd445d2050f1"><enum>(3)</enum><header>Acting officials may serve</header><text>In the event of a vacancy in the office of the head of a member agency, and pending the appointment of a successor, or during the absence or disability of the head of a member agency, the acting head of the member agency shall serve as a member of the Transition Committee in the place of that agency head.</text></paragraph><paragraph id="id4dfcb0444fc54c0b96be3b8872b5a322"><enum>(4)</enum><header>Staff</header><text>As necessary to carry out the duties of the Transition Committee, the Chairperson of the Transition Committee may—</text><subparagraph id="id486842EFF5404455BEB26E44ED9288AF"><enum>(A)</enum><text>before the agency transfer date, use employees of the Existing Agency; and</text></subparagraph><subparagraph id="id173C1A54884645CCA9577FBCB3E2F71E"><enum>(B)</enum><text>on and after the agency transfer date, use employees of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id882261e49ae242d89da2f911f74c5f04"><enum>(c)</enum><header>Transition plan</header><paragraph id="idc7e1a4db37da4c5caa5d414d692bcae6"><enum>(1)</enum><header>Development</header><text>The Transition Committee shall develop the transition plan required by section 602.</text></paragraph><paragraph id="id3d682f1a67dd41ddad80de145e362da7"><enum>(2)</enum><header>Approval</header><text>The transition plan may not be submitted to Congress under section 602, unless it is approved by a majority of the Transition Committee.</text></paragraph></subsection><subsection id="id940933ecca58420a8fe202bd69c72767"><enum>(d)</enum><header>Dissolution</header><text>The Transition Committee shall be dissolved upon the later of—</text><paragraph id="ida9579c2bf2bf4a4c8ddc3c02ae02a982"><enum>(1)</enum><text>the date on which the first individual is appointed as Chairperson under section 202; or</text></paragraph><paragraph id="id80def4ad66d14aa9b615952b362255d3"><enum>(2)</enum><text>the date on which the transition plan is submitted to Congress in accordance with subsection (c)(2) and section 602.</text></paragraph></subsection></section><section id="id9CB6FBFBCA604BE58B59AE06809C706D"><enum>405.</enum><header>Transition assessments</header><subsection id="id3cca1c4898e940bea5bb8ad8f62ce0c1"><enum>(a)</enum><header>In General</header><text>Section 1316 of the Safety and Soundness Act (12 U.S.C. 4516) is amended by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id0B1FA652FAAA4F7BBC6D71292A833AFD" reported-display-style="italic" style="OLC"><subsection id="id7A28D8A4F48142F8BADFB0C9086F0EB6"><enum>(i)</enum><header>Annual assessments relating to initial funding of the FMIC</header><text>Notwithstanding title VI of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title> or any other provision of law, for the period beginning on the date of enactment of this subsection and ending on the system certification date (as that date is set forth under title VI of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>), the Agency shall establish and collect from the enterprises annual assessments in addition to those required under subsection (a) in an amount not exceeding the amount sufficient to provide for the reasonable costs (including administrative costs) and expenses of the Federal Mortgage Insurance Corporation, including those purposes detailed in section 303(e)(6) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>. All amounts collected under this subsection shall be transferred to the Federal Mortgage Insurance Corporation. The annual assessment shall be payable semiannually for each fiscal year, on October 1 and April 1.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id10e8b12d87c343258ba67ad09f57eafe"><enum>(b)</enum><header>Treatment of Assessments</header><paragraph id="ida22ee5434bb84bf2aa0fdf9fcfb2abf8"><enum>(1)</enum><header>Deposit</header><subparagraph id="idAAC7438C28914F7596A5FE4356122B54"><enum>(A)</enum><header>Amounts received by the Corporation</header><text>Amounts received by the Corporation from assessments imposed under section 1316(i) of the Safety and Soundness Act shall be deposited by the Corporation in the Mortgage Insurance Fund.</text></subparagraph><subparagraph id="id335B35A22FDB472CB3279CD42B687450"><enum>(B)</enum><header>Amounts received by the Existing Agency</header><text>Amounts received by the Existing Agency beginning on the date of enactment of this Act until the agency transfer date from assessments imposed under section 1316(i) of the Safety and Soundness Act shall be held in an account of the Existing Agency and shall be transferred to the Corporation on the agency transfer date for deposit in the Mortgage Insurance Fund in accordance with subparagraph (A).</text></subparagraph><subparagraph commented="no" id="idD9C88691F2034D40B079275D84BF0DA7"><enum>(C)</enum><header>Exemption from apportionment</header><text>Notwithstanding any other provision of law, amounts received by the Corporation from any assessment imposed under section 1316(i) of the Safety and Soundness Act shall not be subject to apportionment for the purposes of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, or under any other authority.</text></subparagraph><subparagraph commented="no" id="idFA73E4F9496B47AA927A1E383946A3BB"><enum>(D)</enum><header>Rule of construction</header><text>Amounts received by the Corporation from any assessment imposed under section 1316(i) of the Safety and Soundness Act shall not be construed to be Government or public funds or appropriated money.</text></subparagraph></paragraph><paragraph id="id80a3adabcf144bdd8c4194c86d66857d"><enum>(2)</enum><header>Use of funds</header><subparagraph id="id0138D25399CD4BD985160F126005B287"><enum>(A)</enum><header>In general</header><text>The Existing Agency shall use amounts received from assessments imposed under section 1316(i) of the Safety and Soundness Act solely for the purpose of funding the Mortgage Insurance Fund on the agency transfer date.</text></subparagraph><subparagraph id="idF6DC3D6EDBCC42C7969BD4AC10444647"><enum>(B)</enum><header>Treasury investments</header><text>The Existing Agency may request the Secretary of the Treasury to invest the amounts received from assessments imposed under section 1316(i) of the Safety and Soundness Act.</text></subparagraph><subparagraph id="id01B637E1198940DFBB36F220E409C44B"><enum>(C)</enum><header>Government obligations</header><text>Pursuant to a request under subparagraph (B), the Secretary of the Treasury shall invest such amounts in Federal Government obligations—</text><clause id="id4C8F3CF19779491D98541C9DB3D52763"><enum>(i)</enum><text>guaranteed as to principal and interest by the United States with maturities suitable to the needs of the Existing Agency; and</text></clause><clause id="idB5CD23DCBD344A1588B235ABF9D3A998"><enum>(ii)</enum><text>bearing interest at a rate determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturity.</text></clause></subparagraph></paragraph></subsection></section><section id="id1b36901064a142488a5ec06de25dda55"><enum>406.</enum><header>Transfer of powers and duties on the system certification date; continuation and coordination of certain actions</header><subsection commented="no" id="id33d39cc9475a4b45b4cf20df7cefae02"><enum>(a)</enum><header>Transfer of functions</header><text>Effective on the system certification date and except as provided in section 332(a), there are transferred to the Corporation all functions of the Federal Housing Finance Agency of the Corporation and the Director thereof.</text></subsection><subsection id="id6dff56c8ebf64fcfa284c64d048448ae"><enum>(b)</enum><header>Coordination and continuation of certain actions</header><paragraph id="id76833993cec242d88fcb4e32038011e6"><enum>(1)</enum><header>In general</header><text>All regulations, orders, determinations, and resolutions described in paragraph (2) shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Corporation until modified, terminated, set aside, or superseded in accordance with applicable law by the Corporation, any court of competent jurisdiction, or operation of law.</text></paragraph><paragraph id="idad2d91855146488690eef516ca02f2b9"><enum>(2)</enum><header>Applicability</header><text>A regulation, order, determination, or resolution is described in this paragraph if it—</text><subparagraph id="id207ece1050114105bafa0a90e9ec7854"><enum>(A)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text><clause id="id8fc1f7c603a24780a3be094c3839fb88"><enum>(i)</enum><text>the Existing Agency;</text></clause><clause id="id2612B22081704947874979DF10D116E5"><enum>(ii)</enum><text>the Federal Housing Finance Agency of the Corporation;</text></clause><clause id="id86ce083ebaf6414990f810dcf8a48622"><enum>(iii)</enum><text>the Federal Housing Finance Board; or</text></clause><clause id="ida491808424e64378a3f193248c03924b"><enum>(iv)</enum><text>a court of competent jurisdiction;</text></clause></subparagraph><subparagraph id="id31f6119f2f09409489e75b91cabb60db"><enum>(B)</enum><text>relates to the performance of functions that are transferred by subsection (a); and</text></subparagraph><subparagraph id="id2ba0fb928daf48749597580f9b283cbd"><enum>(C)</enum><text>is in effect on the effective date of the transfer under subsection (a).</text></subparagraph></paragraph></subsection><subsection id="idce4dd6c5517c4bf4bd433db5aaebc2ee"><enum>(c)</enum><header>Use of agency services</header><text>Any agency, department, or other instrumentality of the United States, and any successor to any such agency, department, or instrumentality, which was providing supporting services to the Federal Housing Finance Agency of the Corporation before the system certification date in connection with functions that are transferred to the Corporation under subsection (a) shall—</text><paragraph id="id68f13ef40657445799a26f970f5b547b"><enum>(1)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is complete; and</text></paragraph><paragraph id="id8a546d5cb6784a458c9b9165613770f9"><enum>(2)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text></paragraph></subsection><subsection id="id615565f334e14bfe9acced35a89af202"><enum>(d)</enum><header>Savings provisions</header><paragraph id="idf0d57c87e29f424eb2f4b1a19a70b344"><enum>(1)</enum><header>Existing rights, duties, and obligations not affected</header><text>Subsection (a) shall not affect the validity of any right, duty, or obligation of the United States, the Director of the Federal Housing Finance Agency of the Corporation, or any other person, which—</text><subparagraph id="id8c0c0db9e02947d8a1e208b2e4e67bc3"><enum>(A)</enum><text>arises under—</text><clause id="id2823faa361884d358adda1f7cdce8d2d"><enum>(i)</enum><text>the Safety and Soundness Act;</text></clause><clause id="id0de56378a76140a1a8a7115f1a2bbee6"><enum>(ii)</enum><text>the Federal National Mortgage Association Charter Act;</text></clause><clause id="id55aa293aaafe41e8b2b764070f389193"><enum>(iii)</enum><text>the Federal Home Loan Mortgage Corporation Act; or</text></clause><clause id="idf495b231ef6f48e2ada1f98f997fa0f5"><enum>(iv)</enum><text>any other provision of law applicable with respect to the Federal Housing Finance Agency; and</text></clause></subparagraph><subparagraph id="idf3e887ebdf9a46ef960bbc194364dcf9"><enum>(B)</enum><text>existed on the day before the system certification date.</text></subparagraph></paragraph><paragraph id="id74c3fdbc7e1a4b4296f5daa0b7f4f628"><enum>(2)</enum><header>Continuation of suits</header><text>No action or other proceeding commenced by or against the Director of the Federal Housing Finance Agency of the Corporation in connection with functions that are transferred to the Corporation under subsection (a) shall abate by reason of the enactment of this Act, except that the Corporation shall be substituted for the Director of the Federal Housing Finance Agency of the Corporation as a party to any such action or proceeding.</text></paragraph></subsection></section><section id="id5aff35d35bd448aaae9b9dcb84ebf9b8"><enum>407.</enum><header>Technical and conforming amendments relating to abolishment of FHFA</header><subsection id="id01b9c9fe46c54b4eb38f95571448dbd4"><enum>(a)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the system certification date.</text></subsection><subsection id="idf2d1d68b782a427d8424f7bc65bc7217"><enum>(b)</enum><header>Access to Local TV Act of 2000</header><text>Section 1004(d)(2)(D)(iii) of the Launching Our Communities’ Access to Local Television Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/47/1103">47 U.S.C. 1103(d)(2)(D)(iii)</external-xref>) is amended by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="id8236d7bd63fd4259a6042649b6edcc73"><enum>(c)</enum><header>Commodity Exchange Act</header><text>Section 1a(39)(E) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a(39)(E)</external-xref>) is amended by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="id98f85fdb2bf041eaa15881e6d6b97529"><enum>(d)</enum><header>Emergency Economic Stabilization Act of 2008</header><text>The Emergency Economic Stabilization Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/12/5201">12 U.S.C. 5201</external-xref> note) is amended—</text><paragraph id="id68c51d661997424988465800d732fc57"><enum>(1)</enum><text>in section 104(b)(3), by striking <quote>the Director of the Federal Housing Finance Agency</quote> and inserting <quote>the Chairperson of the Federal Mortgage Insurance Corporation</quote>;</text></paragraph><paragraph id="id758d3748350443bf871612285ba54737"><enum>(2)</enum><text>in section 109(b), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id2120bad9faa04eaf900ab7b990fc5b5c"><enum>(3)</enum><text>in section 110(a)(1)(A), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></paragraph></subsection><subsection id="idc2f531fdbd3f41fdb7b88dd4fbbfac68"><enum>(e)</enum><header>Federal National Mortgage Association Charter Act</header><text>The Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>) is amended—</text><paragraph id="id81197c3a11f8490caca7f6bd94512f5a"><enum>(1)</enum><text>in section 303(c)(2), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id5e1d6d46f40d4bd6bf230bfd4193919e"><enum>(2)</enum><text>in section 309—</text><subparagraph id="id6b292992c5044dab833da3f21bb67838"><enum>(A)</enum><text>in subsection (d)(3)(B)—</text><clause id="idBD6F820C49274FCB9CC490A188E1A2F9"><enum>(i)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></clause><clause id="id81958F9EB83E47428095E283ECADAD08"><enum>(ii)</enum><text>by striking <quote>Director</quote> each place that term appears and inserting <quote>Chairperson</quote>;</text></clause></subparagraph><subparagraph id="id6d93897ffe334edc8e963c5fbe437f9d"><enum>(B)</enum><text>in subsection (k)(1), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>;</text></subparagraph><subparagraph id="id2db924c5bee84c86ba939beafad79335"><enum>(C)</enum><text>in subsection (m)—</text><clause id="id8a8211914a404d92a2563ed112fb7046"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></clause><clause id="idf22358de2c944858a9c89468e45ec169"><enum>(ii)</enum><text>in paragraph (2)—</text><subclause id="id38C53F53A74C4054B1DF5672F7105483"><enum>(I)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subclause><subclause id="id4332FC8412834C0EB5AEDA0BAA64C640"><enum>(II)</enum><text>by striking <quote>Director</quote> each place that term appears and inserting <quote>Chairperson</quote>; and</text></subclause></clause></subparagraph><subparagraph id="id118c565554734f9d8072870ad45849c0"><enum>(D)</enum><text>in subsection (n)—</text><clause id="id5b248f3719a14dd7b127aa2d2b16ed45"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>;</text></clause><clause id="ida59cc19ce5054222b0308345bf524fde"><enum>(ii)</enum><text>in paragraph (2)(L), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></clause><clause id="idb7297376d1e44fd4ba8f744f293aab16"><enum>(iii)</enum><text>in paragraph (3)(B), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="id838be792290b45dc95584665dd913eca"><enum>(f)</enum><header>Federal Deposit Insurance Act</header><text>The Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>) is amended—</text><paragraph id="id24da5df6418d4b10b5ad42fd5981dc7d"><enum>(1)</enum><text>in section 7(a)(2)(A), by striking <quote>Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Federal Mortgage Insurance Corporation</quote>;</text></paragraph><paragraph id="iddbb88229d9624f6f93b49b5d7cf0eaad"><enum>(2)</enum><text>in section 8(e)(7)(A)(vi), by striking <quote>Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id84e1d2f7e9b247f484ee51fe60dbf761"><enum>(3)</enum><text>in section 33(e), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></paragraph></subsection><subsection id="id69028ff800c142b4901255f06601b25a"><enum>(g)</enum><header>Federal Financial Institutions Examination Council Act of 1978</header><text>The first sentence of section 1011 of the Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3310">12 U.S.C. 3310</external-xref>) is amended by striking <quote>and the Federal Housing Finance Agency</quote>.</text></subsection><subsection id="id20D48CBCB4CA4A53B4F970211F307365"><enum>(h)</enum><header>Federal Home Loan Bank Act</header><text>The Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1421">12 U.S.C. 1421 et seq.</external-xref>) is amended—</text><paragraph id="id4BBF657FA80D403BA0DCD11B68259EF3"><enum>(1)</enum><text>in section 2—</text><subparagraph id="idf0563e9431eb4deb8f78588025bf6a37"><enum>(A)</enum><text>in paragraph (11), as previously amended by section 402(i), by striking <quote>Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></subparagraph><subparagraph id="id30ac82725f054160a2e3213927feac6e"><enum>(B)</enum><text>in paragraph (12), as previously amended by section 402(i), by striking <quote>the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established under section 402(a)(1) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote> and inserting <quote>Federal Mortgage Insurance Corporation established under section 201 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote>;</text></subparagraph></paragraph><paragraph id="id2e9afc90e5a64bb98e1619112f6b34c1"><enum>(2)</enum><text>in section 10(a)(3)(B), by inserting <quote>, subject to such regulations that the Federal Mortgage Insurance Corporation may issue to ensure the safety and soundness of the Federal Home Loan Banks, covered securities insured by the Federal Mortgage Insurance Corporation under the Housing Finance Reform and Taxpayer Protection Act of 2014</quote> after <quote>Government National Mortgage Association</quote>; and</text></paragraph><paragraph id="idcf3ead99048e437286dfbabe63e0f504"><enum>(3)</enum><text>in section 11(h), by inserting <quote>, subject to such regulations that the Federal Mortgage Insurance Corporation may issue to ensure the safety and soundness of the Federal Home Loan Banks, covered securities insured by the Federal Mortgage Insurance Corporation under the Housing Finance Reform and Taxpayer Protection Act of 2014</quote> after <quote>Federal Home Loan Mortgage Corporation pursuant to section 305 or section 306 of the Federal Home Loan Mortgage Corporation Act</quote>.</text></paragraph></subsection><subsection id="id07efd6e1acbd4a5791dd62ba84239f76"><enum>(i)</enum><header>Federal Home Loan Mortgage Corporation Act</header><text>The Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451 et seq.</external-xref>) is amended—</text><paragraph id="id2458653c43084043912a3108d51d53fb"><enum>(1)</enum><text>in section 303—</text><subparagraph id="id2d1841f049664dd9996eb4521962196e"><enum>(A)</enum><text>in subsection (b)(2), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></subparagraph><subparagraph id="id0651823733ff4efaa90f2ce150ae8e1f"><enum>(B)</enum><text>in subsection (h)—</text><clause id="id3B8881FBC54F4A33B48CF6A9B96636EA"><enum>(i)</enum><text>in paragraph (2)—</text><subclause id="idA5BEFB09F7ED4B38846B36DB8D106183"><enum>(I)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subclause><subclause id="idC8A5A6EB28A7439F8EA4075754F80AB8"><enum>(II)</enum><text>by striking <quote>Director</quote> each place that term appears and inserting <quote>Chairperson;</quote> and</text></subclause></clause><clause id="id3F55548455254FEE974D06DB4EFD34E5"><enum>(ii)</enum><text>in paragraph (4), by striking <quote>Director</quote> and inserting <quote>Chairperson</quote>;</text></clause></subparagraph></paragraph><paragraph id="id2E0775DE08254600AB0C5DBB9BC657E6"><enum>(2)</enum><text>in section 305(a)(2), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id6dd943e0522b4e34bfcf096268f689b6"><enum>(3)</enum><text>in section 307—</text><subparagraph id="idc7fa4fafef2f47429f5c2ee5bc833139"><enum>(A)</enum><text>in subsection (c)(1), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>;</text></subparagraph><subparagraph id="id696d8d7b3d0642e8aebb5100783e7327"><enum>(B)</enum><text>in subsection (e)—</text><clause id="id163d43b9f06e4e1b93f59512e7456dcf"><enum>(i)</enum><text>in paragraph (1)—</text><subclause id="idED05BA6A26974BEC9C7D685180C56D1B"><enum>(I)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subclause><subclause id="idA75D55D0FA924381930A257311950FA6"><enum>(II)</enum><text>by striking <quote>Director</quote> each place that term appears and inserting <quote>Chairperson</quote>; and</text></subclause></clause><clause id="idf125e42409214739bd88edcc7167ce9f"><enum>(ii)</enum><text>in paragraph (2)—</text><subclause id="id0743B25D11EB4622A73285A98DA6316F"><enum>(I)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subclause><subclause id="idACB84211CDDF4F8997A57FBBED4B37B8"><enum>(II)</enum><text>by striking <quote>Director</quote> each place that term appears and inserting <quote>Chairperson</quote>; and</text></subclause></clause></subparagraph><subparagraph id="idc04b9c6211c94e8ba3dabd161d039937"><enum>(C)</enum><text>in subsection (f)—</text><clause id="id99857077dc204e3cbace7488a6ce5dc6"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>;</text></clause><clause id="id196ceded7d8e4f0cb55bbd876826b2d3"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Director of the Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>; and</text></clause><clause id="idf63067c43acb490488636047410eee8d"><enum>(iii)</enum><text>in paragraph (3)(B), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="id47f5d3ebcf8d452da23f75f647cfcdf8"><enum>(j)</enum><header>Federal Housing Enterprises Financial Safety and Soundness Act of 1992</header><text>The Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended—</text><paragraph id="idBA6CD0F6A1F148D6AEB058B8B8052DB9"><enum>(1)</enum><text>in section 1303—</text><subparagraph id="id0E33490B1FB74A9E9F5F96130B5BF2B3"><enum>(A)</enum><text>in paragraph (2), as previously amended by section 402(i), by striking <quote>the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established under section 402(a)(1) of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote> and inserting <quote>Federal Mortgage Insurance Corporation established under section 201 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote>;</text></subparagraph><subparagraph id="id0449f5069e244feaa0b85e26078b8941"><enum>(B)</enum><text>by striking paragraph (4) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id48ae5ba3bfff4b6da14406a17c6a9c44" reported-display-style="italic" style="OLC"><paragraph id="idb31993b2bcc14fef95f9b8b309a1410c"><enum>(4)</enum><text>[Reserved.]</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="idED1FE8BF2DA845F0AD203C1037B1E544"><enum>(C)</enum><text>in paragraph (9), as previously amended by section 402(i), by striking <quote>Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>;</text></subparagraph></paragraph><paragraph id="id4ae40a78625b45d5855b4f521beae696"><enum>(2)</enum><text>by repealing section 1313A;</text></paragraph><paragraph id="id92a0ba4526104640b6f38052a153ab23"><enum>(3)</enum><text>in section 1317—</text><subparagraph id="id5da9497684c041fd97ee39a8aef61488"><enum>(A)</enum><text>by striking subsection (d); and</text></subparagraph><subparagraph id="idceb8d7a633c7417ab9166b325a237648"><enum>(B)</enum><text>by redesignating subsections (e) through (i) as subsections (d) through (h), respectively; and</text></subparagraph></paragraph><paragraph id="id6142E03CE46642D79258805A5AE385F7"><enum>(4)</enum><text>in section 1367—</text><subparagraph id="id0488a36a502448669d4dedcbb59cf393"><enum>(A)</enum><text>in subsection (a), in the heading, by striking <quote><header-in-text level="subsection" style="OLC">Agency</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Corporation</header-in-text></quote>; and</text></subparagraph><subparagraph id="idF03D411E85D64C2B950EF2C830CC05A9"><enum>(B)</enum><text>in subsection (b), in the heading to paragraph (9)(B), as so redesignated, by striking <quote><header-in-text level="clause" style="OLC">Agency</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">Corporation</header-in-text></quote>.</text></subparagraph></paragraph></subsection><subsection id="idc94ed125c68a4404ad258cd22f6c29e2"><enum>(k)</enum><header>Financial Institutions Reform, Recovery, and Enhancement Act of 1989</header><text>The Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (<external-xref legal-doc="public-law" parsable-cite="pl/101/73">Public Law 101–73</external-xref>; 103 Stat. 183) is amended—</text><paragraph id="id96145fd0b82047e78da9163996217535"><enum>(1)</enum><text>in section 402(e), by striking <quote>Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Federal Mortgage Insurance Corporation</quote>;</text></paragraph><paragraph id="id5e99e6becfff47d1ab9055403cd5b895"><enum>(2)</enum><text>in section 1124, by striking <quote>Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id4def65cccf7e41b4a54e2996c049378b"><enum>(3)</enum><text>in section 1125(b), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></paragraph></subsection><subsection id="idb25b760c4e764801b92a7d4ba6bd4823"><enum>(l)</enum><header>Flood Disaster Protection Act of 1973</header><text>Section 102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(f)(3)(A)</external-xref>) is amended by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="iddf8d5cc2b56945b5b1d1d9187c0f5946"><enum>(m)</enum><header>Housing Economic Recovery Act of 2008</header><text>Section 1002(b) of the Housing and Economic Recovery Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/289">Public Law 110–289</external-xref>; 122 Stat. 2661) is amended—</text><paragraph id="id2b0d3e496bdd4939a03e78edb50bfe32"><enum>(1)</enum><text>in paragraph (1), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id05827dd231ae4d0b9844d471d8070f68"><enum>(2)</enum><text>in paragraph (2), by striking <quote>Director of the Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></paragraph></subsection><subsection id="ide91fc1817aba487f941cc061f17569fc"><enum>(n)</enum><header>Housing and Urban-Rural Recovery Act of 1983</header><text>The first sentence of section 469 of the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701p-1) is amended by striking <quote>Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="id19cf4d427443406b8471dddf3d32121e"><enum>(o)</enum><header>Multifamily Assisted Housing Reform and Affordability Act of 1997</header><text>Section 517(b)(4) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="id4daac0bb536f464d92709ed60330780f"><enum>(p)</enum><header>Public law 93–495</header><text>Section 111 of <external-xref legal-doc="public-law" parsable-cite="pl/93/495">Public Law 93–495</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/12/250">12 U.S.C. 250</external-xref>) is amended by striking <quote>the Director of the Federal Housing Finance Agency,</quote>.</text></subsection><subsection id="ided00059102a5476faa1db11a0c37bd3e"><enum>(q)</enum><header>Neighborhood Reinvestment Corporation Act</header><text>Section 606(c)(3) of the Neighborhood Reinvestment Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8105">42 U.S.C. 8105(c)(3)</external-xref>) is amended by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="id8cf1b249cb6144319224b1b879a73119"><enum>(r)</enum><header>Riegle Community Development and Regulatory Improvement Act of 1994</header><text>Section 117(e) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4716(e)) is amended by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="idf0c5d274824644328c01410049944b69"><enum>(s)</enum><header>Right to Financial Privacy Act of 1978</header><text>Section 1113(o) of the Right to Financial Privacy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3413">12 U.S.C. 3413(o)</external-xref>) is amended—</text><paragraph id="id609A8D7A9FCE42B1B5C09BC8B14704AB"><enum>(1)</enum><text>in the heading to the subsection, by striking <quote><header-in-text level="subsection" style="OLC">Federal Housing Finance Agency</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Federal Mortgage Insurance Corporation</header-in-text></quote>;</text></paragraph><paragraph id="idf583123b0fee4d5cbfb768d1fae1fad9"><enum>(2)</enum><text>by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="id8c8cb49926734b508bea24840ddd42af"><enum>(3)</enum><text>by striking <quote>Federal Housing Finance Agency’s</quote> and inserting <quote>Federal Mortgage Insurance Corporation’s</quote>.</text></paragraph></subsection><subsection id="idd09a1cbb465c4da0b9b10543c1cb8fcd"><enum>(t)</enum><header>Sarbanes-Oxley Act of 2002</header><text>Section 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7215">15 U.S.C. 7215(b)(5)(B)(ii)(II)</external-xref>) is amended by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></subsection><subsection id="id3db60b181c79492ab64a610546e81971"><enum>(u)</enum><header>Securities Exchange Act</header><text>Section 15G of the Securities Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-11">15 U.S.C. 78o-11</external-xref>) is amended—</text><paragraph id="idb1279b7ea5f04f68ab492508701683ba"><enum>(1)</enum><text>in subsection (b)(2), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="idcf4b6c119dd2487a968c5285c7980513"><enum>(2)</enum><text>in subsection (e)(4), by striking <quote>Director of the Federal Housing Finance Agency</quote> each place that term appears and inserting <quote>Chairperson of the Federal Mortgage Insurance Corporation</quote>.</text></paragraph></subsection><subsection id="idb3db5a49b75c42eea942f8b8e41e1b44"><enum>(v)</enum><header>Truth in Lending Act</header><text>The Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1601">15 U.S.C. 1601 et seq.</external-xref>) is amended—</text><paragraph id="id909545d901d4447297128b4330126fc6"><enum>(1)</enum><text>section 129H(b)(4), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></paragraph><paragraph id="iddce13557b2364403aa3b261591fb76d7"><enum>(2)</enum><text>in section 129E—</text><subparagraph id="id945f8509db5a4bd191e85d9916444546"><enum>(A)</enum><text>in subsection (g)(1), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>; and</text></subparagraph><subparagraph id="idf48cc063a15b48c49bfd50e590db76dc"><enum>(B)</enum><text>in subsection (h), by striking <quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal Mortgage Insurance Corporation</quote>.</text></subparagraph></paragraph></subsection><subsection id="id84475ca7ad8248e28dc13802f0148b28"><enum>(w)</enum><header>Other references in Federal law</header><text>On and after the system certification date, any reference to the Federal Housing Finance Agency or the Director thereof in any law, rule, regulation, certificate, directive, instruction, or other official paper in force on the system certification date shall be considered to refer and apply to the Federal Mortgage Insurance Corporation and the Chairperson thereof, respectively.</text></subsection></section><section commented="no" id="idD1A61A905E7A461F9B8A83A95CBC6BA1"><enum>408.</enum><header>Repeal of mandatory housing goals</header><subsection id="id7e150869-5d4c-4971-b0fb-1ac9dea0743e"><enum>(a)</enum><header>Repeal of housing goals</header><text display-inline="yes-display-inline">The Safety and Soundness Act is amended by striking sections 1331 through 1336 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561-6">12 U.S.C. 4561–6</external-xref>).</text></subsection><subsection id="id60aa2cb5-07a5-47ea-98d9-92da3a20744d"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">The Safety and Soundness Act (12 U.S.C. 4501 et seq.) is amended—</text><paragraph id="id4f568db1-065a-4b1f-8e3d-2241142d699f"><enum>(1)</enum><text>in section 1303(28), by striking <quote>, and, for the purposes</quote> and all that follows through <quote>designated disaster areas</quote>;</text></paragraph><paragraph id="id4d4df70a-35ee-400f-8219-a829c4dc7792"><enum>(2)</enum><text>in section 1324(b)(1)(A), by striking clauses (i), (ii), and (iv);</text></paragraph><paragraph id="id067a2731-9df1-436e-918d-68fe358ffcf1"><enum>(3)</enum><text>in section 1341—</text><subparagraph id="id902ba638-2de9-4d73-bf41-b6eaba15812b"><enum>(A)</enum><text>in subsection (a)—</text><clause id="id938b28c9-c2cc-4eaa-ab1f-36f71d9a62c9"><enum>(i)</enum><text>in paragraph (1), by inserting <quote>or</quote> after the semicolon at the end;</text></clause><clause id="id7d401267-51e0-4298-8cc5-d5471152ce61"><enum>(ii)</enum><text>in paragraph (2), by striking the semicolon at the end and inserting a period; and</text></clause><clause id="idc33444de-d675-40d6-8214-0f557af32d43"><enum>(iii)</enum><text>by striking paragraphs (3) and (4); and</text></clause></subparagraph><subparagraph id="idcf305c59-3068-4832-8f81-cfc9b9b36356"><enum>(B)</enum><text>in subsection (b)(2)—</text><clause id="id35113c40-ffc4-49be-9557-b81cca34c01a"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></clause><clause id="ide2065830-821d-46f6-bf83-ac7d513a2902"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C); and</text></clause><clause id="id8154871a-cb94-4c53-8cd9-a7a917e2bb94"><enum>(iii)</enum><text>by redesignating subparagraph (D) as subparagraph (B);</text></clause></subparagraph></paragraph><paragraph id="id03b81ae8-457f-41a2-9ad2-0955a7464b88"><enum>(4)</enum><text>in section 1345(a)—</text><subparagraph id="iddf391acf-5405-4a80-8f12-0dacd4927534"><enum>(A)</enum><text>in paragraph (1), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph><subparagraph id="idd5cd7a0f-d783-4dc5-b2bb-aaa5265c0b06"><enum>(B)</enum><text>in paragraph (2), by striking the semicolon at the end and inserting a period; and</text></subparagraph><subparagraph id="id0e85cc6d-a728-4f4a-bfd6-aa04abf6e848"><enum>(C)</enum><text>by striking paragraphs (3) and (4); and</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id13720b0f-7e2e-4d3e-b523-2ebba4ae1f89"><enum>(5)</enum><text>in section 1371(a)(2), by striking <quote>with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title,</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id564D37B03E2349FFBD6A393D20A65547"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of enactment of this Act.</text></subsection><subsection commented="no" id="idD99E6F37FA994EFE84122E5983939D73"><enum>(d)</enum><header>Required compliance with nondiscrimination laws</header><paragraph commented="no" id="id05473EE7C3CB4C35832A32B423F456CA"><enum>(1)</enum><header>Approved entities; Platform</header><text>Notwithstanding any other provision of this Act, approved entities and the Securitization Platform shall comply with Federal and State nondiscrimination laws, including the Fair Housing Act (42 U.S.C. 3601 et seq.) and the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).</text></paragraph><paragraph commented="no" id="id2B8747540A13461C8BE21C338D565A65"><enum>(2)</enum><header>Corporation</header><subparagraph commented="no" id="id467960E5416247FEBB9500626D27E85A"><enum>(A)</enum><header>In general</header><text>In carrying out this Act, the Corporation shall comply with Federal and State nondiscrimination laws.</text></subparagraph><subparagraph commented="no" id="idEB6D9D01A9A3463691F06464DED07F4C"><enum>(B)</enum><header>Periodic review</header><text>The Corporation shall periodically review its policies, standards, and guidelines with respect to eligible mortgage loans, including, but not limited to, any automated underwriting systems, to ensure that such policies, standards, and guidelines are consistent with the requirements of section 408(d).</text></subparagraph></paragraph><paragraph commented="no" id="idEF190A6604814E8F84DD86790C26327B"><enum>(3)</enum><header>Safety and Soundness Act</header><text>Section 1325 of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4545">12 U.S.C. 4545</external-xref>) is amended—</text><subparagraph commented="no" id="idB9C799B0234241E3B2239660AB966873"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>The Secretary</quote> and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id935C259BD49B4A8C8AA72E2FD94A8682" reported-display-style="italic" style="OLC"><subsection commented="no" id="idBFEB26730D2140DBBB39F5F37241861D"><enum>(a)</enum><header>In general</header><text>The Secretary</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id31DCC0326A594F7890B983F8EEA3AF28"><enum>(B)</enum><text>in paragraph (1)—</text><clause commented="no" id="id86FBDE456C4F4EC598EE64B3F749CB5C"><enum>(i)</enum><text>by inserting <quote>, approved guarantor, approved multifamily guarantor, approved aggregator, and the Securitization Platform</quote> after <quote>enterprise</quote>;</text></clause><clause commented="no" id="idF18DA931F4DB4D8EBBDF184F2AC6A154"><enum>(ii)</enum><text>by inserting <quote>or guarantee</quote> after <quote>purchase</quote>; and</text></clause><clause commented="no" id="id4215EBFACA844A5EADBA774B04FCF883"><enum>(iii)</enum><text>by inserting <quote>or mortgage-backed security</quote> after <quote>mortgage</quote>;</text></clause></subparagraph><subparagraph commented="no" id="idA7D19BCBE97F4C998DED622F22E0268F"><enum>(C)</enum><text>in paragraph (2)—</text><clause commented="no" id="id3E7608F5AD0A4C47A3EED293684E9A81"><enum>(i)</enum><text>by striking <quote>(2) by regulation</quote> and by inserting <quote>(2)(A) by regulation</quote>;</text></clause><clause commented="no" id="idB0F2B12976E3433DB94186D47A7F86ED"><enum>(ii)</enum><text>by inserting <quote>and</quote> after the semicolon; and</text></clause><clause commented="no" id="id2D689CC3B5EE47ED924DBC9BC4ACF80A"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idF271F13EBCF24858BD1D71974C0E3FAC" reported-display-style="italic" style="OLC"><subparagraph commented="no" id="idC8EB1A92DA834A5EA930D6523BAF0F9D" indent="up1"><enum>(B)</enum><text>with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions, by regulation, require each approved guarantor, approved multifamily guarantor, and approved aggregator to submit data to the Secretary to assist the Secretary in investigating whether a mortgage lender with which the approved guarantor, approved multifamily guarantor, or approved aggregator does business has failed to comply with the Fair Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/3601">42 U.S.C. 3601 et seq.</external-xref>);</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id6F87D0E13B7245F980ABF57EF8A32E75"><enum>(D)</enum><text>in paragraph (3)—</text><clause commented="no" id="id2BB53EC2005F4EC1920CF5B61292AEAF"><enum>(i)</enum><text>by striking <quote>(3) by regulation</quote> and by inserting <quote>(3)(A) by regulation</quote>;</text></clause><clause commented="no" id="idE4DF9A4EDF8E48F59A83F097B88CA62E"><enum>(ii)</enum><text>by inserting <quote>and</quote> after the semicolon; and</text></clause><clause commented="no" id="id7829DEDF756A4B2BBD3B27D004824C53"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id979626BFF15A4E98B61BFA9839C2E8C2" reported-display-style="italic" style="OLC"><subparagraph commented="no" id="idB3FE159B54994C6698AFFFA3FDD5F817" indent="up1"><enum>(B)</enum><text>with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions, by regulation, require each approved guarantor, approved multifamily guarantor, and approved aggregator to submit data to the Secretary to assist in investigating whether a mortgage lender with which the approved guarantor, approved multifamily guarantor, or approved aggregator does business has failed to comply with the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691">15 U.S.C. 1691 et seq.</external-xref>), and shall submit any such information received to the appropriate Federal agencies, as provided in section 704 of the Equal Credit Opportunity Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1691c">15 U.S.C. 1691c</external-xref>), for appropriate action;</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id2EE6E5CB1C0A458AB7230345263FA3B4"><enum>(E)</enum><text>in paragraph (4), by inserting <quote>and the Federal Mortgage Insurance Corporation</quote> after <quote>enterprises</quote>;</text></subparagraph><subparagraph commented="no" id="id8AE9A72BDF9846F09CA95A16C182BA8B"><enum>(F)</enum><text>in paragraph (5)—</text><clause commented="no" id="id6E508DAA72684EF8846C92E9B3D2BFA7"><enum>(i)</enum><text>by striking <quote>(5) direct the</quote> and by inserting <quote>(5)(A) direct the</quote>;</text></clause><clause commented="no" id="id5E86039A97CD4B088B6A3D9DDA2F1AFF"><enum>(ii)</enum><text>by inserting <quote>and</quote> after the semicolon; and</text></clause><clause commented="no" id="idF3C242A4CA684271B2B669004C7121BE"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id06E159CD1088406FB1EA341CE05C4A9D" reported-display-style="italic" style="OLC"><subparagraph commented="no" id="id09A8BDEA7FB04EFBAFA42071D3D881A6" indent="up1"><enum>(B)</enum><text>with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions, apply various remedial actions, including suspension, probation, reprimand, or settlement, against lenders that have been found to have engaged in discriminatory lending practices in violation of the Fair Housing Act or the Equal Credit Opportunity Act, pursuant to a final adjudication on the record, and after opportunity for an administrative hearing, in accordance with subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code; and</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id082AE951ACB043A6AE27754BFE295571"><enum>(G)</enum><text>in paragraph (6)—</text><clause commented="no" id="ide9cacc43c9f546d8bd685f4a37484b87"><enum>(i)</enum><text>by striking <quote>(6) periodically review</quote> and by inserting <quote>(6)(A) periodically review</quote>;</text></clause><clause commented="no" id="ideaf8e9ed28ec44a985c8f7934d8f5f5b"><enum>(ii)</enum><text>by striking the period at the end and inserting <quote>; and</quote>; and</text></clause><clause commented="no" id="id5a41baabf5b84f64937632da8efff90c"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id5fb92aeb4b5b4c6d85ae7013dd1edff0" reported-display-style="italic" style="OLC"><subparagraph commented="no" id="ide5d791b0c9934e47aafc088a2cdb5a5f"><enum>(B)</enum><text>with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions, periodically review and comment on the underwriting and appraisal guidelines of each approved guarantor, approved multifamily guarantor, and approved aggregator, and the policies, standards, and guidelines of the Securitization Platform to ensure that such guidelines are consistent with the Fair Housing Act and this section.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idFC2E718FFDD0437EA8616ECD86AE03CC"><enum>(H)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idCF40A9A73C694F1696B24D5782D9FADB" reported-display-style="italic" style="OLC"><subsection commented="no" id="idEEC1889E6A6346C2B2A00B53A33BAEC5"><enum>(b)</enum><header>Definitions</header><text>In this section, the terms <quote>approved guarantor</quote>, <quote>approved multifamily guarantor</quote>, <quote>approved aggregator</quote>, <quote>covered guarantee transaction</quote>, <quote>covered market-based risk-sharing transaction</quote>, and <term>Securitization Platform</term> have the meanings given such terms in section 2 of the Housing Finance Reform and Taxpayer Protection Act of 2014.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection></section><enum>V</enum><header>Improving transparency, accountability, and efficacy within affordable housing</header><section id="idB34E4F8DC8D440E3AD8AEB787FA484B6"><enum>501.</enum><header>Affordable housing allocations</header><subsection id="id489CB7DC1CBF4E4291B0D5203ED7C0FC"><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 III, in each fiscal year the Corporation shall—</text><paragraph id="idFB75CCF9ADBB4B3C90214FB9A7CE3F4F"><enum>(1)</enum><text display-inline="yes-display-inline">charge and collect a fee determined as provided in subsection (b) for each dollar of the outstanding principal balance of all eligible mortgage loans that collateralize covered securities insured under this Act; and</text></paragraph><paragraph id="idE382E1C1A51E420BA70900CC32004E41"><enum>(2)</enum><text display-inline="yes-display-inline">allocate or otherwise transfer, on an annual basis—</text><subparagraph id="id0F0A815ECB284B22A47B3D24667C8C9D"><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 (12 U.S.C. 4568);</text></subparagraph><subparagraph id="id2101D668C3B94967BE5CE4DF659F537A"><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 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>); and</text></subparagraph><subparagraph id="id2C7F44A0E22A4223803F25467B79D7B8"><enum>(C)</enum><text display-inline="yes-display-inline">10 percent of such fee amounts to the Corporation to fund the Market Access Fund established under section 504.</text></subparagraph></paragraph></subsection><subsection id="idDE19BCC0CA6D4A25874D7D89AE6B2AA8"><enum>(b)</enum><header>Determination of fee</header><text>The fee required to be charged under subsection (a) shall be determined as follows:</text><paragraph id="id849b63d9a1d14aadbc5be595b1441f79"><enum>(1)</enum><header>Initial fee</header><text>Beginning on the date of enactment of this Act and ending upon the date set forth under paragraph (2)(E), the fee shall be an amount equal to 10 basis points for each dollar of the outstanding principal balance of eligible mortgage loans collateralizing covered securities insured under this Act.</text></paragraph><paragraph id="id53b55d8dfe36401f99c4e38863c2aab9"><enum>(2)</enum><header>Subsequent incentive-based fee</header><text>Not later than 6 months after the date that the Corporation has approved at least 2 approved guarantors, approved multifamily guarantors, or approved aggregators, the Corporation shall, by regulation, after notice and comment, establish a formula for determining the fee that meets the following criteria:</text><subparagraph commented="no" id="idd344349c17a24737a6f349501cadb66d"><enum>(A)</enum><header>Average for all fees</header><text>The average of fees charged on the total outstanding principal balance of all eligible mortgage loans collateralizing covered securities insured under this Act shall be equal to 10 basis points.</text></subparagraph><subparagraph id="idf120046ba1a144879a861f54761c4522"><enum>(B)</enum><header>Permissible range</header><text>The highest basis point fee charged to an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction shall not exceed 2 times the lowest basis point fee charged.</text></subparagraph><subparagraph id="id2f46d40be3924cd1b1d005169d1899b7"><enum>(C)</enum><header>Incentives to serve underserved market segments</header><clause id="idb63a69a6296b486abbd8b5cd91609239"><enum>(i)</enum><header>In general</header><text>The formula determined under this subsection shall provide that the amount by which any particular fee charged to an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction may be more or less than the average fee required under subparagraph (A) based upon consideration of the following factors:</text><subclause id="idfd12fc6fa288479a8001cd2457b09379"><enum>(I)</enum><header>Performance relative to peers</header><text>The performance of each approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction and each approved aggregator engaged in a covered market-based risk-sharing transaction in serving underserved market segments, as identified and defined under section 210, relative to the performance of all other approved guarantors, approved multifamily guarantors, or approved aggregators engaged in covered guarantee transactions or approved aggregators engaged in covered market-based risk-sharing transactions.</text></subclause><subclause id="id36d5cb3a4be248c2ad1241c927698aa9"><enum>(II)</enum><header>Performance relative to primary market loan origination data</header><text>The performance of each approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction and each approved aggregator engaged in a covered market-based risk-sharing transaction in serving underserved market segments, as identified and defined under section 210, relative to the level of primary market mortgage originations in each of the underserved market segments so identified and defined that were facilitated by the approved guarantor, approved multifamily guarantor, or approved aggregator's engagement in a covered guarantee transaction or the approved aggregator’s engagement in a covered market-based risk-sharing transaction.</text></subclause><subclause id="id1be60d5cc4044543955ce44df6f78d7c"><enum>(III)</enum><header>Relative extent to which individual market segments are underserved</header><text>The relative extent to which each of the underserved market segments, as identified and defined under section 210, that have primary market mortgage originations facilitated by the approved guarantor, approved multifamily guarantor, or approved aggregator's engagement in a covered guarantee transaction or the approved aggregator’s engagement in a covered market-based risk-sharing transaction is underserved.</text></subclause></clause><clause id="id252edc07aa434b8f8d2010f3b8cb07c8"><enum>(ii)</enum><header>Weighing factors</header><text>The formula determined under this subsection shall assign such weights to each of the factors set forth under clause (i) as the Corporation determines necessary and appropriate.</text></clause><clause id="idc75586ead0c346fea7295147d02d7f4f"><enum>(iii)</enum><header>Data for measuring factors</header><text>To measure the performance in serving underserved market segments, as identified and defined under section 210, by approved guarantors, approved multifamily guarantors, or approved aggregators engaged in a covered guarantee transaction and approved aggregators engaged in a covered market-based risk-sharing transaction and the extent to which a market segment is underserved, the formula determined under this subsection shall provide for the use of—</text><subclause id="idf9a6b42ea98f4b9f9ce26e5d3fb4a996"><enum>(I)</enum><text>the identifications and definitions of underserved market segments established by the Corporation under section 210;</text></subclause><subclause id="id6fde3fc2491e4f9d8934616d67258361"><enum>(II)</enum><text>data and other information in the annual report filed with the Corporation by each approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction and each approved aggregator engaged in a covered market-based risk-sharing transaction, as required under section 210;</text></subclause><subclause id="idaaf0033866014ca28e86dfc8dd83b0ac"><enum>(III)</enum><text>loan level data, to the extent possible in the manner required by the Home Mortgage Disclosure Act (<external-xref legal-doc="usc" parsable-cite="usc/12/2801">12 U.S.C. 2801 et seq.</external-xref>) on activities related to covered securities; and</text></subclause><subclause id="id4e33158bf0e24071a7abbf688ce95f9c"><enum>(IV)</enum><text>other publicly available data.</text></subclause></clause></subparagraph><subparagraph id="id72a25c6389e8477e9340ba2418b0c3db"><enum>(D)</enum><header>Third-party entity to measure factors</header><clause id="id261add6098d5405c8f51dc4b4e55fc32"><enum>(i)</enum><header>Selection</header><text>The Corporation, through a competitive process, shall select an entity independent of the Corporation to gather, use, and provide to the Corporation the data required under subparagraph (C)(iii).</text></clause><clause id="idb105e2e94d9948f8a9edb26592c8ea6a"><enum>(ii)</enum><header>Ranking</header><text>The entity selected under clause (i) shall—</text><subclause id="id7DD552B3E5914EEFB2157956E4357A36"><enum>(I)</enum><text>analyze the data required under subparagraph (C)(iii); and</text></subclause><subclause id="id38D13AF7D2A447C9BED74C8E1793F916"><enum>(II)</enum><text>rank the approved guarantors, approved multifamily guarantors, or approved aggregators engaged in covered guarantee transactions and the approved aggregators engaged in covered market-based risk-sharing transactions, applying the formula established by the Corporation.</text></subclause></clause><clause id="id426c2767eb0b4c4c887588b161bbb8a5"><enum>(iii)</enum><header>Timing of ranking</header><text>The entity selected under clause (i) shall, on an annual basis, provide the rankings required under clause (ii)(II). The annual rankings required under this clause shall begin at a time to be determined mutually by the entity selected under clause (i) and the Corporation, so that the Corporation will be positioned to determine, charge, and collect the first incentive-based fees beginning on the date that is 12 months after the date of approval of at least 2 approved guarantors, approved multifamily guarantors, or approved aggregators.</text></clause></subparagraph><subparagraph id="id253e1cf658c844adb578bafb6d40c3e8"><enum>(E)</enum><header>Timing of charging and collecting incentive-based fees</header><clause id="ide85e6d77959a42a7b8b3462c07efd6a4"><enum>(i)</enum><header>First incentive-based fees</header><text>Subject to paragraph (3), the Corporation shall charge and collect the first incentive-based fees required under this subsection beginning on the date that is 12 months after the date of the approval of at least 2 approved guarantors, approved multifamily guarantors, or approved aggregators.</text></clause><clause id="id467a7f2fb4b1466da7c704078ee29d3a"><enum>(ii)</enum><header>Subsequent annual incentive-based fees</header><text>Subject to paragraph (3), the Corporation shall charge and collect incentive-based fees annually on the first business day of each 12-month period that begins after the expiration of the initial 12-month period set forth in clause (i).</text></clause><clause id="id420b5a87644a4f8f8337f9b42515833b"><enum>(iii)</enum><header>Collection</header><subclause id="idE17E60151B734C6BB608BF63500128C5"><enum>(I)</enum><header>Procedures</header><text>The Corporation shall, by regulation, establish procedures for collecting the incentive-based fee required under this paragraph on a periodic basis determined by the Corporation.</text></subclause><subclause id="idD1386A67A8A74E1087EE210373CE69B8"><enum>(II)</enum><header>Compliance with procedures</header><text>The Corporation shall collect all incentive-based fees required under this paragraph consistent with the procedures established pursuant to subclause (I).</text></subclause></clause><clause id="ideca1a6a47ec64cc585ebd2d7a1d315d7"><enum>(iv)</enum><header>Adjustments to incentive-based fees paid</header><subclause id="idE08F0644351043B685F1CA9C622CEE76"><enum>(I)</enum><header>In general</header><text>The Corporation shall make appropriate adjustments to the incentive-based fee charged to an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction for any year based on the—</text><item id="idFC18BBD37012481C99C273CD9F2F416A"><enum>(aa)</enum><text>application of the formula established under this paragraph to such approved guarantor, approved multifamily guarantor, or approved aggregator; and</text></item><item id="id9437F6EC52CF4E1A9AE4811D4A62E99E"><enum>(bb)</enum><text>measured performance of such approved guarantor, approved multifamily guarantor, or approved aggregator in that year.</text></item></subclause><subclause id="id28970A591C29440B8F6F06EC3092E1EF"><enum>(II)</enum><header>Form of adjustments</header><text>Any adjustments made pursuant to subclause (I) may take the form of—</text><item id="idA914DB144B4E4C7D8726176D2CAECCD2"><enum>(aa)</enum><text>a credit against the fee paid by an approved guarantor, approved multifamily guarantor, or approved aggregator for the year; or</text></item><item id="idE73D4101652946D29E645CE015990D3A"><enum>(bb)</enum><text>an additional amount owing on the fee for the year by the approved guarantor, approved multifamily guarantor, or approved aggregator.</text></item></subclause></clause><clause id="id0853309d9d314f73ad781c7e22263b38"><enum>(v)</enum><header>Frequency of incentive-based fee collection</header><text>In determining the appropriate periodic basis for collecting the incentive-based fees required under clause (iii), the Corporation shall take into consideration the need to make appropriate adjustments to the fees under clause (iv) through credits or additional billings.</text></clause><clause id="id59bfbce7eedc4d9599c72251206da4ba"><enum>(vi)</enum><header>Rule of construction</header><text>Nothing in this subparagraph shall be construed to waive, override, or in any manner supersede the requirement set forth under subparagraph (A).</text></clause></subparagraph><subparagraph id="id637aeefc92da46beaefcad8a2f2290e1"><enum>(F)</enum><header>Additional incentives to serve underserved market segments</header><clause id="id6c3485e1e17d4f4894e9563ddcfaef1d"><enum>(i)</enum><header>Fee credits from the Market Access Fund</header><text>Notwithstanding any provision of section 504 or any other provision of law, the Corporation may use up to 50 percent of the amounts in the Market Access Fund, determined as of the date that an incentive-based fee under subparagraph (E) is to be charged in any year, to provide 1 or more approved guarantors, approved multifamily guarantors, or approved aggregators engaged in a covered guarantee transaction or approved aggregators engaged in a covered market-based risk-sharing transaction with additional incentives to serve underserved market segments, as identified and defined under section 210, through the award of a credit that may be applied to reduce the annual fee charged to the approved guarantor, approved multifamily guarantor, or approved aggregator if that person exceeds performance measures related to the service of such underserved market segments established by the Corporation.</text></clause><clause id="ida7c15de873e6460e8f605ae81d2bdaec"><enum>(ii)</enum><header>Rule required</header><text>The Corporation shall establish, by regulation, the terms, conditions, and performance measures for the awarding of credits under clause (i).</text></clause></subparagraph></paragraph><paragraph id="id402de9113c3045a0ac4ec581c7155add"><enum>(3)</enum><header>Opt-out from incentive-based fees</header><subparagraph id="id9487788bca384cfebbecf12c0b22754c"><enum>(A)</enum><header>Election and written agreement</header><text>An approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction may elect to be excepted from the incentive-based fee that is charged under paragraph (2) by notifying the Corporation in writing that the approved guarantor, approved multifamily guarantor, or approved aggregator agrees to pay the fee amount described in subparagraph (C).</text></subparagraph><subparagraph id="idc9dee23d3092420abe591f6789fbb350"><enum>(B)</enum><header>Timing for election</header><text>For any 12-month period for which an incentive-based fee will be charged under paragraph (2), an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction may make an election under subparagraph (A) not later than 3 months prior to the beginning of such 12-month period.</text></subparagraph><subparagraph id="id8c6a4950ab3246efb177680cc2d1f213"><enum>(C)</enum><header>Fee amount for opt-out</header><text>If an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction makes an election under subparagraph (A), the Corporation shall charge to, and collect from, the approved guarantor, approved multifamily guarantor, or approved aggregator a fee in an amount equal to the highest fee charged by Corporation for the 12-month period under the ranking made under paragraph (2)(D).</text></subparagraph><subparagraph id="id12db49565ed24f1fb3b8debb26dd667a"><enum>(D)</enum><header>Opt-out not to affect reporting requirements</header><text>An election made under subparagraph (A) shall not release, diminish, or otherwise affect any requirement set forth by this Act that requires an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction to furnish to the Corporation such information as the Corporation is authorized by this Act to obtain, including the annual report required to be filed with the Corporation under section 210.</text></subparagraph></paragraph></subsection><subsection id="id459c0410ef694e04866ef2334aa41657"><enum>(c)</enum><header>Continuing obligation</header><text>The fee required to be charged under subsection (a) shall be collected for the life of the covered security.</text></subsection><subsection commented="no" id="idF7117F9828C34A7FA271A5943E41C2D6"><enum>(d)</enum><header>Suspension of contributions</header><text>The Corporation may temporarily suspend allocations under subsection (a)(2) upon a finding by the Corporation that such allocations are contributing, or would contribute, to the financial instability of the Mortgage Insurance Fund established under section 303.</text></subsection><subsection id="id9739C9D75EC846148C6E27926DA7EEEB"><enum>(e)</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 id="id35CA8CF3FDE4477094F6D59B00F4E8A9"><enum>502.</enum><header>Housing Trust Fund</header><text display-inline="no-display-inline">Section 1338 of the Safety and Soundness Act (12 U.S.C. 4568) is amended—</text><paragraph id="idF38A598DCCB14091B422E2752A34BB95"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1)—</text><subparagraph id="id528090C318454E10A04E77457C4394A7"><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>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote> after <quote>section 1337</quote>; and</text></subparagraph><subparagraph id="id5589DD16272C45578983E807492C93A8"><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="id3E777B10BEA44E93B09016C0C79167A3"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (b) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idA600B3D15EA64BDFB74193FCDB811760" reported-display-style="italic" style="OLC"><subsection id="id10D646FC0B084F3B8084D5EA50EA56B1"><enum>(b)</enum><text>[Reserved.]</text></subsection><after-quoted-block>; </after-quoted-block></quoted-block></paragraph><paragraph id="id3E75FD62BBC14B938317EB9638EE246B"><enum>(3)</enum><text>in subsection (c)—</text><subparagraph id="id99AF069BA105404DB9B9F904BD6434BA"><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="id80C2F7D075674B20913CEAC2DCEA928C"><enum>(B)</enum><text>in paragraph (2)—</text><clause id="idFCF5FBB846F44A1E892773CCFFE8608E"><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="id20985212886E48B181CE30137E57D505"><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="id1BE9E7C3D75C458AA091860F22D5C5E8"><enum>(C)</enum><text>in paragraph (3)—</text><clause id="id898B1D2C5DA148FDBD02239683537914"><enum>(i)</enum><text>in the heading—</text><subclause id="id211CD864F8FE4E4D974B95375C2806AB"><enum>(I)</enum><text>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>; and</text></subclause><subclause id="id5B625A644E6D402092F9A6971DEA6064"><enum>(II)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">by needs-based formula</header-in-text></quote>;</text></subclause></clause><clause id="id94F48204F8664A8098E279B0CA2E7F35"><enum>(ii)</enum><text>in subparagraph (A), by striking <quote>The Secretary shall</quote> and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idFB60416F985848648F22EABC8E45C705" reported-display-style="italic" style="OLC"><clause id="id71476FC693E24ED3882E6C4F6619216C"><enum>(i)</enum><header>Minimum tribal distributions</header><subclause id="idE04BE549A37F457892E153DAD586FEF3"><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="idB20631D93E9D4802B8419581C1A6CEDD"><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="id8EE8819149F841A987DE40CA1C20120D"><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="id2C2C3D288B0C4E748FD1AD4867D3340C"><enum>(IV)</enum><header>Evaluation of applications</header><item id="id1D3675AB4FCA4C80A5A4E17C1B09F52C"><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="id4111CF5951F84E6092D5390CE133F040"><enum>(AA)</enum><text>Level of poverty on the Indian reservation or in the Indian area.</text></subitem><subitem id="idDDF78EE987B948FDBEA2EBDC35DE7201"><enum>(BB)</enum><text>Level of unemployment on the Indian reservation or in the Indian area.</text></subitem><subitem id="idCDC1AA0CDED04A7492E7022E2C0D901B"><enum>(CC)</enum><text>Condition of housing stock on the Indian reservation or in the Indian area.</text></subitem><subitem id="id4C701D050DF745EF9A80FBF6C87BD488"><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 1.</text></subitem><subitem id="idAD0393235CE742EFBB4E3784A0AF23AD"><enum>(EE)</enum><text>Presence and prevalence of black mold on the Indian reservation or in the Indian area.</text></subitem><subitem id="idE238AD08E4E144F58B0D23A7640D3AB7"><enum>(FF)</enum><text>Demonstrated experience, capacity, and ability of the applicant to manage the development and construction of affordable housing, and manage affordable housing programs, including rental housing programs, homeownership programs, and programs to assist purchasers with down payments, closing costs, or interest rate buy-downs.</text></subitem><subitem id="id11CD69231FE14C34A86E4926FBEB9C6A"><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="id0FEABE62C0464F608DB106CD85576E38"><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="id74294D3564E942E9979DBDC7023F4759"><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="id42A73DCEECFA4442B6DBC95985E17CCB"><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="id3AE5076D6B714B97BFB691A31ADF6CD3"><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="id7FB94A83931B479784C897C64DB7DED9"><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="id5B3DB3FD459B40A2A65E1E28EEE49993"><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="idD5859AD7B73D412B81EC5E3F1938ED5E"><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="id700F2783ECFE42ABAAD1A914ED73D043"><enum>(D)</enum><text>in paragraph (4)—</text><clause id="idC1EE9B241A1D4A9895FFFDE7A335B90E"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>other than fiscal year 2009</quote>; and</text></clause><clause id="id0B0A343E734C41AFA337986F850D5B6D"><enum>(ii)</enum><text>by striking subparagraph (C), and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id847868A2E3714F318448D3938FB9A2EF" reported-display-style="italic" style="OLC"><subparagraph id="idE1592C22205847EAAB22B1E6AFDEEF51"><enum>(C)</enum><header>Minimum State allocations</header><clause id="id3E7E5FC1C1A641898E33882BC4B82B21"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the minimum allocation, following the determination of the formula amount in paragraph (3), to any of the 50 States of the United States or the District of Columbia shall be $10,000,000 and the increase in any such allocation shall be deducted pro rata from the allocations made above such minimum to all other of the States (as such term is defined in section 1303).</text></clause><clause id="id430B40C0F643455E9FCC0DD9FC92BA05"><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>Housing Finance Reform and Taxpayer Protection 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 above such minimum 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="id1696890F041B41918E9BB4BF3BDD983F"><enum>(E)</enum><text>in paragraph (5)(A)—</text><clause id="idEDEC2933C37D448AAE72FC8C90D609F2"><enum>(i)</enum><text>in clause (iii), by striking <quote>and</quote> at the end;</text></clause><clause id="id12C06266D61B488EA75DB6265B3317F6"><enum>(ii)</enum><text>by redesignating clause (iv) as clause (v); and</text></clause><clause id="id9095F853E75F48118AEC4DB68B8CBD2D"><enum>(iii)</enum><text>by inserting after clause (iii) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id80DEA230439D4A19AEC75408F2BFB15F" reported-display-style="italic" style="OLC"><clause id="idA5C47A775E1D42E797098F523482BA1E"><enum>(iv)</enum><text>set forth a plan for achieving geographic diversity, including the distribution of grant amounts to rural areas in proportion to housing needs in those areas; and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idD3659B89690044BDB680393AADA95950"><enum>(F)</enum><text>in paragraph (7)(A), by striking <quote>housing under the programs identified in section 1335(a)(2)(B) of this title</quote> and inserting <quote>housing subsidized under Federal law or comparable State or local laws</quote>;</text></subparagraph><subparagraph id="idE9E0FC6D9D3B48B79F86D0740DA1AAD1"><enum>(G)</enum><text>in paragraph (7)(B)(iv), by striking <quote>section 132</quote> and inserting <quote>section 1132</quote>;</text></subparagraph><subparagraph id="idC2CFF3C9B91E4C89A900497D9D6BD4AA"><enum>(H)</enum><text>in paragraph (9), by inserting <quote>(including a public housing agency)</quote> after <quote>agency</quote>; and</text></subparagraph><subparagraph id="id9DFBD475B13C4377BDAB4CBE7898BAA6"><enum>(I)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id4954528C3DA841EC91524A4417DF8137" reported-display-style="italic" style="OLC"><paragraph id="id63C369C9C47F4F2DAFB41940CB72BF1D"><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>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id66798F2EE2164A4BA145DDE9AECF6DD8"><enum>(4)</enum><text>in subsection (f), by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id1F08F17EC4FA44DA96C20D2730B4B448" reported-display-style="italic" style="OLC"><paragraph id="id5F554A4DCB794082B94EAF427235B58F"><enum>(7)</enum><header>Tribal terms</header><subparagraph id="idBC66C8F6188241F493F6708F088D5154"><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="idEE08BA90DCFD47FFB0FCF32B806FEFAB"><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><paragraph commented="no" display-inline="no-display-inline" id="id7F9BF77E745549E2A53EEF3DF3C3A5E7"><enum>(8)</enum><header display-inline="yes-display-inline">Rural area</header><text display-inline="yes-display-inline">The term <quote>rural area</quote> means any community eligible for assistance under section 520 of the Housing Act of 1949 (42 U.S.C. 1490).</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id04D715CC16F646B08072BB51823CCC90"><enum>(5)</enum><text>in subsection (g)(2)(D)(i), by inserting <quote>, including the distribution of grant amounts to rural areas in proportion to housing needs in those areas</quote> after <quote>diversity</quote>.</text></paragraph></section><section id="idC7054F5293994268A6EC57E57F090B76"><enum>503.</enum><header>Capital Magnet Fund</header><text display-inline="no-display-inline">Section 1339 of the Safety and Soundness Act (12 U.S.C. 4569) is amended—</text><paragraph id="id3029edf87c7d409e88e67f2d85a37ccd"><enum>(1)</enum><text>in subsection (b)(1), by inserting <quote>or section 501 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title></quote> after <quote>section 1337</quote>;</text></paragraph><paragraph id="idE554D7EE4EB8465BA47AB82D78384354"><enum>(2)</enum><text>in subsection (c)—</text><subparagraph id="idBE99BA7303ED46679D9D30F5C3614E51"><enum>(A)</enum><text>in paragraph (1), by striking <quote>; and</quote> and inserting a semicolon;</text></subparagraph><subparagraph id="idA3741443A0FF45FA90CED35468615227"><enum>(B)</enum><text>in paragraph (2)—</text><clause id="id5bd240b0ad4d4003ad63c0c718a98d08"><enum>(i)</enum><text>by inserting <quote>, activities designed to foster revitalization in areas experiencing severe economic distress and property disinvestment, including, but not limited to, demolition, property rehabilitation, and infrastructure configuration,</quote> after <quote>economic development activities</quote>; and</text></clause><clause id="id9091746D175E45AE9E8C5C683F7394DF"><enum>(ii)</enum><text>by inserting <quote>and tribal</quote> after <quote>rural</quote>; and</text></clause></subparagraph></paragraph><paragraph id="id8aacd4ba98304cd1801e5d7426b5e592"><enum>(3)</enum><text>in subsection (h)(2)(A), by inserting <quote>or tribal</quote> after <quote>rural</quote>.</text></paragraph></section><section id="id135242CE40524385A374F495CA6F68DC"><enum>504.</enum><header>Market Access Fund</header><subsection id="idB06644C8EAAB42FE942B91429DE4C93D"><enum>(a)</enum><header>Establishment</header><text>The Corporation shall establish a fund, to be known as the <quote>Market Access Fund</quote>, which shall be maintained and administered by the Office of Consumer and Market Access.</text></subsection><subsection id="id7D235836C3524E3AAA7E43565BCB5EA7"><enum>(b)</enum><header>Deposits</header><text>The Market Access Fund shall be credited with—</text><paragraph id="idF7F25B97144240248533653E65ED9D71"><enum>(1)</enum><text>the share of the fee charged and collected by the Corporation under section 501; and</text></paragraph><paragraph id="id5EC0250566FB4CABBA5D44743B1A6EC0"><enum>(2)</enum><text>such other amounts as may be appropriated or transferred to the Market Access Fund.</text></paragraph></subsection><subsection id="idD1B1264679E041158A3F918BAE81E056"><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 underserved or hard-to-serve populations by—</text><paragraph id="idF0A6EDB2F5DB4272BC3D5961734A0B5B"><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="idBF2012413363484684ED275D88980C7B"><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 Corporation 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="id65035DD906F946B2A3D8810A582CAFC2"><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 the Corporation, with adjustments for family size;</text></paragraph><paragraph id="id671DFB27259741F68DFF4E0268266B83"><enum>(4)</enum><text>providing limited credit enhancement, and other forms of credit support, for product and services that—</text><subparagraph id="idF61C79FAABB34FE49291E8506D098E7A"><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 the Corporation, with adjustments for family size; and</text></subparagraph><subparagraph id="idE026946DE4E442E4B927F471C7BD2006"><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="idBE10073627C042E6A0AE798FB3EC8A78"><enum>(5)</enum><text>providing housing counseling by a HUD-approved housing counseling agency;</text></paragraph><paragraph id="idC0C1534504B84844AC3274F769FE0EA7"><enum>(6)</enum><text>providing incentives to achieve broader access to mortgage credit; and</text></paragraph><paragraph id="id540430DCA1CE4151AB1F7B5456E13F3D"><enum>(7)</enum><text>providing grants and loans for activities designed to foster revitalization in areas experiencing severe economic distress and property disinvestment, including, but not limited to, demolition, rehabilitation, infrastructure configuration, and reuse of vacant land.</text></paragraph></subsection><subsection id="id4C1809B9503C44058F179FFB6C63AA91"><enum>(d)</enum><header>Annual report</header><paragraph id="id90A99EC1514A4A73BD6A2EA749D55C8F"><enum>(1)</enum><header>In general</header><text>The Chairperson shall, on an annual basis, report to Congress on the performance and outcome of grants, loans, or credit support programs funded by the Market Access Fund in accordance with subsection (c), including—</text><subparagraph id="id5D8C487E008E415584B6576AE47EF5C7"><enum>(A)</enum><text>an evaluation of how each grant, loan, or credit support program—</text><clause id="idF5364275EE1642AB911E91506CD0C821"><enum>(i)</enum><text>succeeded in meeting or failed to meet the need of certain populations, especially extremely low-, very low-, low-, and moderate-income and underserved or hard-to-serve populations; and</text></clause><clause id="idE6C611733626487B857C62A2CD77AF35"><enum>(ii)</enum><text>succeeded in maximizing or failed to maximize the leverage of public investment made for each such grant, loan, or credit support program; and</text></clause></subparagraph><subparagraph id="idD7F2E17819F84606BDA4127B582DB90C"><enum>(B)</enum><text>for each award of funds for a grant, loan, or credit support program by the Market Access Fund—</text><clause id="id2491E65D0D7846B88A11BA942DA7A3BB"><enum>(i)</enum><text>the recipient of the funds;</text></clause><clause id="id66E1C73E846F4086A1C211FA9151E3C3"><enum>(ii)</enum><text>the purpose for which the recipient received the funds;</text></clause><clause id="id61A6F9CA22B7491DA4519E5E866EED0B"><enum>(iii)</enum><text>the amount of funds provided to the recipient; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idE29A9903782545D3A317FF914CA56822"><enum>(iv)</enum><text>the amount of funds, excluding administrative costs, that are used to directly meet the purpose identified under clause (ii), including meeting the housing needs of extremely low-, very low-, low-, and moderate-income and underserved or hard-to-serve populations.</text></clause></subparagraph></paragraph><paragraph id="id35AC09F3E4B34CFB98D7177C04D45540"><enum>(2)</enum><header>Inclusion in annual report</header><text>The Chairperson shall include the report required under paragraph (1) in the annual report required under section 206.</text></paragraph></subsection></section><section id="idC59A439940AA4351884D0A35E3085973"><enum>505.</enum><header>Additional taxpayer protections</header><subsection commented="no" display-inline="no-display-inline" id="id6d11a508-fd97-4e35-8abc-fd327f09dea2"><enum>(a)</enum><header>Not to be used for political activities</header><text>Consistent with the existing requirements under sections 1338(c)(10)(D) and 1339(h)(5) of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568(c)(10)(D)</external-xref> and 4569(h)(5)), the Secretary of Housing and Urban Development, the Secretary of the Treasury, and the Office of Community and Market Access, respectively, shall ensure that grant amounts allocated by covered grantees to eligible recipients or allocated to individuals by such eligible recipients are not used for—</text><paragraph id="id7a0f7cdd-de78-4ade-9798-90f3aa7b2143"><enum>(1)</enum><text>political activities;</text></paragraph><paragraph id="idddf67c4b-e71d-42a0-9f3d-afb108490396"><enum>(2)</enum><text>political advocacy;</text></paragraph><paragraph id="id54f7572a-8bb1-452a-be63-bd5c9cb1e948"><enum>(3)</enum><text>lobbying, whether directly or through other parties;</text></paragraph><paragraph id="id54a9ff0f-b6dc-4615-9f95-8dc9174dc00d"><enum>(4)</enum><text>influencing the selection, nomination, election, or appointment of 1 or more candidates to any Federal, State or local office;</text></paragraph><paragraph id="id64832736-7f26-4d41-af09-08cca60d6db2"><enum>(5)</enum><text>personal counseling services;</text></paragraph><paragraph id="id696d64c1-d594-4aa6-9f6c-b34e5202129e"><enum>(6)</enum><text>travel expenses; and</text></paragraph><paragraph id="id74c3d176-5fe9-45ab-a5df-248c99632998"><enum>(7)</enum><text>preparing or providing advice on tax returns.</text></paragraph></subsection><subsection id="id92c282e4-e7ab-44c4-985a-aff7fe018bab"><enum>(b)</enum><header>Penalties</header><paragraph id="id96001ef5-f43b-4430-9e89-099a4113140e"><enum>(1)</enum><header>Civil money penalty</header><text>If an eligible recipient or any other individual in receipt of grant amounts described by this section violates any provision of subsection (a), the Secretary of Housing and Urban Development, the Secretary of the Treasury, or the Corporation, as the case may be, may impose a civil penalty on such recipient or individual, as the case may be, of not more than $1,000,000 for each violation.</text></paragraph><paragraph commented="no" id="idd3712c67-d9ea-4f86-96a9-b701c1808488"><enum>(2)</enum><header>Criminal penalties</header><text>Whoever, being subject to the provisions of subsection (a), knowingly participates, directly or indirectly, in any manner in conduct that results in a violation of such provisions shall, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, United States Code, be fined not more than $1,000,000 for each violation, imprisoned for not more than 5 years, or both.</text></paragraph><paragraph id="id166053e7-a9a8-420e-a24b-a575c91b2373"><enum>(3)</enum><header>Rule of construction</header><text>The penalties imposed under paragraphs (1) or (2) shall be in addition to any other available civil remedy or any other available criminal penalty and may be imposed whether or not the Secretary of Housing and Urban Development, the Secretary of the Treasury, or the Corporation, as the case may be, imposes other administrative sanctions.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id300910a8-79b0-43ae-ae1d-a34e6dc0fe99"><enum>(c)</enum><header>Definitions</header><text>As used in this section—</text><paragraph commented="no" display-inline="no-display-inline" id="id5a13ab78-960a-40cb-b310-b4ad149b64be"><enum>(1)</enum><text>the term <term>covered grantee</term> means—</text><subparagraph commented="no" display-inline="no-display-inline" id="id1a47d1cb-6479-425f-97c2-58cc36541178"><enum>(A)</enum><text>for purposes of the Housing Trust Fund, a State or State designated entity;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idb2b962b6-1b23-4314-90b3-b4bbcd5842ee"><enum>(B)</enum><text>for purposes of the Capital Magnet Fund, an eligible grantee as described under section 1339(e) of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569(e)</external-xref>); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD0AD7039B2A34843959032651234ED58"><enum>(C)</enum><text>for purpose of the Market Access Fund, an eligible grantee as described under section 504(c);</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id977b6870-4355-4346-a714-e13bde249a33"><enum>(2)</enum><text>the term <term>eligible recipient</term> means—</text><subparagraph commented="no" display-inline="no-display-inline" id="id77befaa7-488d-41f4-9a79-3220e06a4502"><enum>(A)</enum><text>for purposes of the Housing Trust Fund, a recipient as described under section 1338(c)(9) of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568(c)(9)</external-xref>);</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc61e0bdf-7e7e-4ee0-8146-a00756c77141"><enum>(B)</enum><text>for purposes of the Capital Magnet Fund, a recipient of assistance from the Capital Magnet Fund; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDAB140F7F76C40718FC3E14A0D439038"><enum>(C)</enum><text>for purposes of the Market Access Fund, a recipient of assistance from the Market Access Fund;</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ideaa9dcee-27ad-48b9-876c-f457cbacaf41"><enum>(3)</enum><text>the term <term>Capital Magnet Fund</term> means the Capital Magnet Fund established under 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>); and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5d7db072-33ae-43af-adc2-27834ff2aebf"><enum>(4)</enum><text>the term <term>Housing Trust Fund</term> means 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></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDE8558BC23204DF7B116210984C03271"><enum>(d)</enum><header>Rule of construction</header><text>Nothing in subsection (a) shall be construed to prevent funds from being used for—</text><paragraph commented="no" display-inline="no-display-inline" id="id2409CC995D214649B6E6581EC8C167EF"><enum>(1)</enum><text>HUD-approved housing counseling services;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id58EF63AB1BE34133A77C4A8FA59ABB24"><enum>(2)</enum><text>financial literacy education; or</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE6687AC102CD40EA94A749EE1D776A7E"><enum>(3)</enum><text>application fees, permits, or other construction-related expenses, if funds are authorized for such construction.</text></paragraph></subsection></section><section id="id0852A7C74B2B48258D070F1EA57FE16E"><enum>506.</enum><header>Promoting affordable housing investment</header><subsection id="id1D8D5856B69647018ABA053E7686F5B0"><enum>(a)</enum><header>Housing and Community Development Act of 1992</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 changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idB536FCB2F8FE4EA5B0A69B5597B5A44E" reported-display-style="italic" style="OLC"><paragraph id="id905AF566526D4DCF8F96A46960431FA9"><enum>(6)</enum><header>Ginnie Mae securitization</header><text>The Government National Mortgage Association may, at the discretion of the Secretary, securitize any multifamily loan insured under this subsection, provided that—</text><subparagraph id="idA93AC5B535584608A9D555E0E0BA2DA2"><enum>(A)</enum><text>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="idDD2D26CA916F4C72A9AF1E9BE5DFD608"><enum>(B)</enum><text>the Federal Housing Administration shall not require an assignment fee for mortgage insurance claims related to the securitized mortgages;</text></subparagraph><subparagraph id="idb59710942cb94c058293aa5ca0e21131"><enum>(C)</enum><text>the risk-sharing agreement must provide for reimbursement to the Secretary by the risk share partner or partners for either all or a portion of the losses incurred on the loans insured, regardless of whether the servicing rights or other related mortgage interest have been transferred to a different entity; and</text></subparagraph><subparagraph id="idb1d7e84fc608492e9428d3fc1e535403"><enum>(D)</enum><text>any entity that subsequently acquires the servicing rights or other related mortgage interest of the risk share partner or partners shall not assume any obligation under the risk-sharing agreement.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id9A0B76736B12412FB291CBB8D9F33873"><enum>(b)</enum><header>National Housing Act</header><text>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="idA68A4C3A633545E99972E00A24825F3A"><enum>(1)</enum><text>by striking the semicolon and inserting a comma; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id145B329BD5DF439DBBDA845A5976CE89"><enum>(2)</enum><text>by inserting before the period at the end the following: <quote>, or which are insured under subsection (c) of section 542 of the Housing and Community Development Act of 1992 (12 U.S.C.1715z-22), subject to the terms of subsection (c)(6) of such section</quote>.</text></paragraph></subsection><subsection id="id0c3b538ac2b74ea3802fee8325dedbfc"><enum>(c)</enum><header>Effective date; sunset</header><paragraph id="id2ee5d4f3e13b4ce58b531fa0b1bafed7"><enum>(1)</enum><header>Effective date</header><text>The amendments made by this section shall take effect beginning on October 1, 2014.</text></paragraph><paragraph id="idc2f79830b4f74f119183261bc1084e31"><enum>(2)</enum><header>Sunset</header><text>The amendments made by this section shall expire on September 30, 2021. Effective October 1, 2021, the provisions of paragraph (6) of section 542(c) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-22">12 U.S.C. 1715z-22(c)</external-xref>) and clause (ii) of the first sentence of section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(g)(1)), as in effect on the day before the date of the enactment of this Act, are hereby revived.</text></paragraph></subsection></section><enum>VI</enum><header>Transition and termination of Fannie Mae and Freddie Mac</header><section id="id2E000940EEDF4669B061B18381A90F1C"><enum>601.</enum><header>Minimum housing finance system criteria to be met prior to system certification date</header><subsection id="id691a8d5a93d943398e6fd3c5ee2440cb"><enum>(a)</enum><header>System certification date</header><text>The system certification date shall be the date that the Board of Directors, in its sole discretion, certifies by a majority vote that—</text><paragraph id="id08824711de2048268889caafe94d2d9c"><enum>(1)</enum><text>the Corporation is able to undertake, in a manner found satisfactory to the Board, the duties specified by this Act, and any amendments made by this Act; and</text></paragraph><paragraph id="id410aa300f3e043f28ea683ee32ae726a"><enum>(2)</enum><text>all the minimum criteria set forth under subsection (b) with respect to the new housing finance system have been fully satisfied.</text></paragraph></subsection><subsection id="id85280ab035564c96a8877625e304d8ed"><enum>(b)</enum><header>Minimum housing finance system criteria</header><text>The Board of Directors shall consider the following minimum criteria in determining whether to certify that the new housing finance system is ready:</text><paragraph commented="no" id="ida610ae3501ba4509a20ada92964158be"><enum>(1)</enum><header>Taxpayer protection</header><text>The Department of the Treasury advised the Board of Directors that laws and contracts are in place to provide for compensation to the Department for its support of the enterprises and the housing finance system.</text></paragraph><paragraph id="idc1e1a55d960b4817b50eaaf23c17ea0f"><enum>(2)</enum><header>Securitization platform and standardized securities</header><text>The Securitization Platform is developed and able to issue standardized securities for the single-family covered securities market.</text></paragraph><paragraph id="idbca34ef6772948ac8c685b4af2d9d15c"><enum>(3)</enum><header>Small lender mutuals</header><text>At least 1 small lender mutual is fully operational and able to undertake the duties specified in section 315.</text></paragraph><paragraph id="id7c7b0865f5c84ad8af9992366ab43392"><enum>(4)</enum><header>Approved entities</header><text>A sufficient number of approved entities have been approved pursuant the provisions of subtitle B of title III—</text><subparagraph id="idfe88d74447714735a3563b87c9e184d0"><enum>(A)</enum><text>to assume a reasonable level of first loss position through approved guarantors or through approved credit risk-sharing mechanisms established under section 302; and</text></subparagraph><subparagraph id="idecdc836f861a4925b7aa35f8d7cdd06f"><enum>(B)</enum><text>to generate a substantial volume of secondary mortgage market activity with respect to eligible single-family mortgage loans collateralizing single-family covered securities insured in accordance with this Act.</text></subparagraph></paragraph><paragraph id="idc915fd5cac9f4a43b48aa60770c5db95"><enum>(5)</enum><header>Multifamily market</header><subparagraph commented="no" id="id288f7ed7760b458f9f6ab72b6c0d4737"><enum>(A)</enum><header>Well-functioning multifamily market</header><text>The Corporation has approved multiple multifamily guarantors pursuant to title VII who are providing sufficient multifamily financing in the primary, secondary, and tertiary geographical markets, including in rural markets and through a diversity of experienced multifamily lenders.</text></subparagraph><subparagraph commented="no" id="id7df082fd30d74c27874899893d4b4c99"><enum>(B)</enum><header>Requirements of the Act</header><text>Approved multifamily guarantors are meeting the requirements of this Act.</text></subparagraph><subparagraph commented="no" id="idf6595171999c43f28216bff25d19884f"><enum>(C)</enum><header>Competitive market</header><text>There is a competitive multifamily market for approved multifamily guarantors engaging in multifamily covered securities.</text></subparagraph><subparagraph commented="no" id="idc590623079134f439b59623441bed7e2"><enum>(D)</enum><header>Rule of construction</header><text>Noncompliance with the requirements of this Act by any individual approved multifamily guarantor shall not constitute grounds to prevent system certification.</text></subparagraph></paragraph></subsection><subsection id="iddd844ee2c81940fc8dd5cc327d78d560"><enum>(c)</enum><header>Rule of construction</header><text>The Corporation shall take all steps necessary to meet each minimum housing finance system criteria set forth under subsection (b) as expeditiously and efficiently as practicable. The Corporation may commence providing guarantees on single-family or multifamily covered securities prior to meeting all the minimum housing finance system criteria set forth under subsection (b).</text></subsection><subsection id="idB1014DBD26F64D6AAEEDC9E7DCB9F100"><enum>(d)</enum><header>Notification to Congress</header><paragraph id="id40503B640D7244F48AC14EA34B27CD2C"><enum>(1)</enum><header>In general</header><text>The Chairperson shall promptly submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written notification that the Board of Directors has certified that the criteria set forth under subsection (b) have been met.</text></paragraph><paragraph id="idcc9f21db78834d30ae9917955c4e60ba"><enum>(2)</enum><header>Timing</header><text>The Corporation shall provide the notification required under paragraph (1) not later than 5 years after the date of enactment of this Act.</text></paragraph><paragraph id="idf59c2999e2804fa4acb07cc6c5e74731"><enum>(3)</enum><header>Deadline extensions</header><subparagraph id="id37902a4bc0c64f43b89a0518db9280f7"><enum>(A)</enum><header>First extension</header><text>If the Board of Directors is unable to make the certification required by this section prior to the deadline required in paragraph (2), the Board of Directors may, with an affirmative vote of the majority of the Board, extend the deadline an additional 2 years.</text></subparagraph><subparagraph id="id316951e1bca14b358a89e050310ebce0"><enum>(B)</enum><header>Second extension</header><text>If, after the expiration of the first extension of 2 years, the Board of Directors is unable to make the certification required by this section, the Board of Directors may, with an affirmative vote of at least <fraction>2/3</fraction> of the Board, extend the deadline an additional 2 years.</text></subparagraph><subparagraph id="id05c4f560c0f4486a94656f7acca94f30"><enum>(C)</enum><header>Additional extensions</header><text>If, after the expiration of the second extension of 2 years, the Board of Directors is unable to make the certification required by this section, the Board of Directors may, with a unanimous affirmative vote of the Board and upon the written agreement of the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, and in consultation with the Secretary of Housing and Urban Development, extend the deadline an additional year, and annually thereafter utilizing the same process described in this subparagraph until such time as the Board of Directors makes the certification required by this section.</text></subparagraph></paragraph></subsection></section><section id="id8D7D28E924274209B68F27786027546D"><enum>602.</enum><header>Transition of the housing finance system</header><subsection id="idaeb44810946d45b9989c2be0f1f8dd20"><enum>(a)</enum><header>Transition plan</header><text>The Transition Committee established under section 404 shall develop a transition plan not later than 12 months after the date of enactment of this Act to facilitate an orderly transition to the new housing finance system authorized by this Act.</text></subsection><subsection id="idb44ac36970844fdf89244673ddd6977e"><enum>(b)</enum><header>Contents of plan</header><text>The transition plan required under subsection (a) shall include—</text><paragraph id="id9b4b990352474847ab0ce0e380fc0013"><enum>(1)</enum><text>estimated timeframes by which to achieve the minimum housing finance system criteria set forth under section 601(b) within 5 years after the date of enactment of this Act;</text></paragraph><paragraph id="id5e4f70a4f1724fc1840aafed1634e8bc"><enum>(2)</enum><text>detailed actions that the Corporation will take to achieve such minimum criteria;</text></paragraph><paragraph id="ideb0ea8cb8d214b9e8fb8a648fb308064"><enum>(3)</enum><text>estimated timeframes and detailed actions that the Corporation, including the Federal Housing Finance Agency, will take to provide an orderly wind down of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;</text></paragraph><paragraph id="idEC5010FF15FF4096BC61117C62EA6C7D"><enum>(4)</enum><text>a detailed inventory of all intellectual property owned, held, or licensed by the enterprises, including patents, trademarks, software, credit evaluation systems, and data and information on mortgage performance and plans for utilizing any such intellectual property, technology, infrastructure, or processes of the enterprises in effecting the transition plan;</text></paragraph><paragraph id="id192a164859674a1fb940f0d5735c9b4c"><enum>(5)</enum><text>a description of and updates on the ongoing operations of the Corporation, including the operations of the Federal Housing Finance Agency;</text></paragraph><paragraph id="id966178c507d846aaba473edaca7daac8"><enum>(6)</enum><text>detailed plans and timeframes for establishing, as soon as practicable, a multifamily covered securities market;</text></paragraph><paragraph id="ide89a268953104802af14ed4b6037bd61"><enum>(7)</enum><text>detailed plans and timeframes for establishing, as soon as practicable, a standardized security issued through the Securitization Platform for the single-family covered securities market; and</text></paragraph><paragraph id="idbd50361c93a04c4e856cca1f02383e4f"><enum>(8)</enum><text>detailed plans for increasing the level of credit risk-sharing in the secondary mortgage market.</text></paragraph></subsection><subsection id="id57cd2890f1ff48bb9667749ad4f390f5"><enum>(c)</enum><header>Considerations</header><paragraph id="id242788C598FC4B758617AF6F08573F04"><enum>(1)</enum><header>In general</header><text>For purposes of facilitating an orderly transition to the new housing finance system authorized by this Act, the Corporation shall consider in determining how to best fulfill the requirements of this title the estimated impact of various transition options with respect to the following:</text><subparagraph id="id41657ce4c8ba4b35b025583a458c83d6"><enum>(A)</enum><text>Housing prices and affordability.</text></subparagraph><subparagraph id="id7198320c9d21407a89023fba05e780fa"><enum>(B)</enum><text>The effectiveness of consumer protections in the housing market.</text></subparagraph><subparagraph id="idc695617ba0df4bd888bba4d79a028ae2"><enum>(C)</enum><text>Volume and characteristics of mortgage loan originations.</text></subparagraph><subparagraph id="id05389a21656f4771a82d0c200e3a9dbb"><enum>(D)</enum><text>The condition of the rental housing market.</text></subparagraph><subparagraph id="idf41809f514e94091afb0d8c7edb49129"><enum>(E)</enum><text>Small lender participation in the secondary mortgage market.</text></subparagraph><subparagraph id="idae40866bb3b44cc39875c709aabacb49"><enum>(F)</enum><text>Access to credit in rural and underserved communities.</text></subparagraph><subparagraph id="idcc1229e67f3744d7a833207968d18012"><enum>(G)</enum><text>Competition among market participants.</text></subparagraph><subparagraph id="idd85143b7dfbd4c168ba0c88b9d7ff674"><enum>(H)</enum><text>The condition of the multifamily housing market.</text></subparagraph><subparagraph id="id6ae8a9bb928947c18578abe7086b659c"><enum>(I)</enum><text>Innovation among secondary mortgage market participants.</text></subparagraph><subparagraph id="idde818f895fb0440081b89cdfce8b96a0"><enum>(J)</enum><text>Taxpayer repayment.</text></subparagraph><subparagraph id="id43cfb39b93bb41a4849be0603975e099"><enum>(K)</enum><text>Private capital in the secondary mortgage market.</text></subparagraph></paragraph><paragraph id="id4E045891FA724B13BE30D5AB6D294BD2"><enum>(2)</enum><header>Inclusion in annual report</header><text>A description and analysis of each consideration required under paragraph (1) shall be included in the report required to be submitted to Congress under subsection (d).</text></paragraph></subsection><subsection id="id8f59caa788e940fd9f564aa25c41f7d3"><enum>(d)</enum><header>Report to Congress</header><paragraph id="id98aa14101f374ca1a452847f7d39fa1a"><enum>(1)</enum><header>In general</header><text>Not later than 12 months after the date of enactment of this Act and in accordance with section 404(c)(2), the Transition Committee shall submit the transition plan required under subsection (a) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</text></paragraph><paragraph id="id5584fe550f80402fb3c79c1267f873f5"><enum>(2)</enum><header>Updates</header><text>Not later than 1 year after the date on which the transition plan is submitted under paragraph (1) and annually thereafter until the system certification date, the Chairperson shall—</text><subparagraph id="idc5aeea10761c45d089e60a6ea3c4bc90"><enum>(A)</enum><text>update the transition plan, subject to the requirements of subsection (b); and</text></subparagraph><subparagraph id="id19b10a93c105473fbe2911e44d5b621c"><enum>(B)</enum><text>submit such updated plan to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</text></subparagraph></paragraph></subsection></section><section id="id5E26E6727C4D4A6DB65E7A64921CB554"><enum>603.</enum><header>Resolution authority; technical amendments</header><subsection id="id23fcc561a23c44b8b8f8c3856955e852"><enum>(a)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the agency transfer date.</text></subsection><subsection id="id866ad710395647d89adcbaa7f7f6df5f"><enum>(b)</enum><header>Federal Housing Enterprises Financial Safety and Soundness Act of 1992</header><text>Section 1367 of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) is amended—</text><paragraph id="id6ed578d51b2a4eae87a5099f36234fea"><enum>(1)</enum><text>by striking <quote>stockholder</quote> and <quote>stockholders</quote> and inserting <quote>shareholder, member,</quote> and <quote>shareholders, members,</quote>, respectively, each place those terms appear;</text></paragraph><paragraph id="ida50d333348f5418ba4bf0e482651ae17"><enum>(2)</enum><text>by striking <quote>wind up</quote> and <quote>winding up</quote> and inserting <quote>wind down</quote> and <quote>winding down</quote>, respectively, each place those terms appear;</text></paragraph><paragraph id="idf6c08cd055b5440baa5421b7194c7259"><enum>(3)</enum><text>in subsection (a)—</text><subparagraph id="id0707927D3FAB49F5913D0892002B9F7A"><enum>(A)</enum><text>in paragraph (3)(G), by striking <quote>, and there is no reasonable prospect for the regulated entity to become adequately capitalized (as defined in section 1364(a)(1))</quote>;</text></subparagraph><subparagraph id="id76226a187d9949c0a5219b4d93f02be9"><enum>(B)</enum><text>by striking paragraph (3)(J) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id5663311528ee4708a204a22e029412e6" reported-display-style="italic" style="OLC"><subparagraph id="id3230a580e9f249be8baedefebde31857"><enum>(J)</enum><header>Insolvency</header><text>The regulated entity is insolvent or near-insolvent.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="id3634b82dbe844de68d66d261b08694de"><enum>(C)</enum><text>by striking paragraph (3)(K);</text></subparagraph><subparagraph id="ide2be6e99b0ed43c79ca5896c14c3f691"><enum>(D)</enum><text>by redesignating paragraph (3)(L) as paragraph (3)(K); and</text></subparagraph><subparagraph id="id49bc021adda948e683d0e44f4d42eb91"><enum>(E)</enum><text>in paragraph (4)(B)—</text><clause id="id4752CD4569E7422BA59F0180B36F5A49"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="paragraph" style="OLC">critically undercapitalized regulated entity</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">insolvent or near-insolvent regulated entities</header-in-text></quote>;</text></clause><clause id="idB005F4DF72B84FCF9DBFF208A0506518"><enum>(ii)</enum><text>in the matter preceding clause (i), by striking <quote>critically undercapitalized</quote> and inserting <quote>insolvent or near-insolvent</quote>; and</text></clause><clause id="id620fbe9d36ad4a64ae1de765c1ed12bd"><enum>(iii)</enum><text>in clause (i), by striking <quote>critically undercapitalized</quote> and inserting <quote>insolvent or near-insolvent</quote>;</text></clause></subparagraph></paragraph><paragraph id="idedcda1a9f2a8499e82ed97090e9ed457"><enum>(4)</enum><text>in subsection (b)—</text><subparagraph id="id59a1304c115d403fafbbb3ab0c77764e"><enum>(A)</enum><text>in paragraph (2)(B)—</text><clause id="idadb075206c624ffab839528e0c77407d"><enum>(i)</enum><text>in clause (iii), by adding <quote>and</quote> after <quote>conservator or receiver;</quote>;</text></clause><clause id="ida027d21201ad45fabca56cde97d4cba7"><enum>(ii)</enum><text>by striking clause (iv); and</text></clause><clause id="id8851e053f65a4e63a9bb6af0d7e73b21"><enum>(iii)</enum><text>by redesignating clause (v) as clause (iv);</text></clause></subparagraph><subparagraph id="ide5e7b11490b84c3d8ded79906f1f0bef"><enum>(B)</enum><text>in paragraph (2)(H), by striking <quote>of proceeds realized from the performance of contracts or sale of the assets of a regulated entity</quote> and inserting <quote>that funds are available</quote>;</text></subparagraph><subparagraph id="id5b5fe4ccdb2f4d638a477c36e853b848"><enum>(C)</enum><text>in paragraph (2)(I)(i)(I), by striking <quote>section 1348</quote> and inserting <quote>part II of this subtitle</quote>;</text></subparagraph><subparagraph id="id09a587c0de9f48778d24471c675d5955"><enum>(D)</enum><text>in paragraph (2)(I)(iii), by striking <quote>section 1317 or 1379B</quote> and inserting <quote>subtitle B of this Act</quote>;</text></subparagraph><subparagraph id="ide9efc937519942aaadc6b45c5f58a33c"><enum>(E)</enum><text>by striking paragraph (3)(A) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id78be52e19002422eacafa75641498d94" reported-display-style="italic" style="OLC"><subparagraph id="idfaad67fc11d1428d802d295704219ea6"><enum>(A)</enum><header>In general</header><text>The Agency—</text><clause id="id00178af4681d43e2af09252b172f33e9"><enum>(i)</enum><text>may, as receiver, determine claims in accordance with the requirements of this subsection and any regulations prescribed under paragraph (4); and</text></clause><clause id="id501c813637e84479bf41dca4b6d4d3a9"><enum>(ii)</enum><text>may define the term <term>creditor</term> and may distinguish between creditors, in order to facilitate the orderly administration of the regulated entity in conservatorship or receivership, in accordance with the requirements of this section.</text></clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="id7106b0457b124f3199d83ff55c548cda"><enum>(F)</enum><text>in paragraph (3)(B), by striking <quote>closed</quote>;</text></subparagraph><subparagraph id="id0bc25d602d93449e854f9e3a9d79f28d"><enum>(G)</enum><text>in paragraph (5)(D)(iii)(II), by inserting <quote>legally enforceable and perfected</quote> before <quote>security interest</quote>;</text></subparagraph><subparagraph id="ide4c330027393420c9550e799ef91130e"><enum>(H)</enum><text>by striking paragraph (7);</text></subparagraph><subparagraph id="idbd02eb9cc1234e62830be1ef6d679008"><enum>(I)</enum><text>by redesignating paragraphs (8) through (19) as paragraphs (7) through (18), respectively; and</text></subparagraph><subparagraph id="id2835ee350e7144d4800c490ce53b2473"><enum>(J)</enum><text>in paragraph (10)(E), as so redesignated—</text><clause id="idB08D7D0453A14101A01C0806A60CE21B"><enum>(i)</enum><text>in clause (ii), by striking <quote>; and</quote> and inserting a semicolon;</text></clause><clause id="id59B1A344B338443683994A69730B2DD8"><enum>(ii)</enum><text>in clause (iii), by striking the period and inserting a semicolon; and</text></clause><clause id="id4AAD2608BDBC452A81A385057EE090DE"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id4638596ea8404f13889b15f9e668af04" reported-display-style="italic" style="OLC"><clause id="id1d5efac1f8764c56b838b02c5f77f38d"><enum>(iv)</enum><text>prohibits discrimination on the basis of race, sex, or ethnic group in the solicitation or consideration of offers; and</text></clause><clause id="idae381986b7c045b693eccaaa659a32be"><enum>(v)</enum><text>mitigates the potential for serious adverse effects to the financial system.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="idff2be755746d4d129acac2d6e42e316b"><enum>(5)</enum><text>by striking subsection (c) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id67e72395b3ed45a3aafe6af6db61fff0" reported-display-style="italic" style="OLC"><subsection id="id8f7f055e48434cc0ac9a53cfa766ccfa"><enum>(c)</enum><header>Priority of expenses and unsecured claims</header><paragraph id="id500917634010498d8ee5bb2b8b264e8e"><enum>(1)</enum><header>In general</header><text>Unsecured claims against a regulated entity, or the receiver therefor, that are proven to the satisfaction of the receiver shall have priority in the following order:</text><subparagraph id="id68ddcd96ff7646a7833cf640aa3ab5c3"><enum>(A)</enum><text>Claims of the receiver for administrative expenses.</text></subparagraph><subparagraph id="idffe5e4d3068641149d0f8f39fe500781"><enum>(B)</enum><text>Any amounts owed to the United States, unless the United States agrees or consents otherwise.</text></subparagraph><subparagraph id="id4cf5be2a7bbf4624acffa7942126484a"><enum>(C)</enum><text>Wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual (other than an individual described in subparagraph (F)), but only to the extent of $12,475 for each individual (as indexed for inflation, by regulation of the Agency) earned not later than 180 days before the date of appointment of the Agency as receiver.</text></subparagraph><subparagraph id="id0ca3e01691d14f2683f7db832e2985cb"><enum>(D)</enum><text>Contributions owed to employee benefit plans arising from services rendered not later than 180 days before the date of appointment of the Agency as receiver, to the extent of the number of employees covered by each such plan, multiplied by $12,475 (as indexed for inflation, by regulation of the Agency), less the aggregate amount paid to such employees under subparagraph (C), plus the aggregate amount paid by the receivership on behalf of such employees to any other employee benefit plan.</text></subparagraph><subparagraph id="idd2e8540f1ac0451493965f5286de6610"><enum>(E)</enum><text>Any claim arising solely from a covered guarantee transaction involving the regulated entity.</text></subparagraph><subparagraph id="idcee0488adef0465fb5bbe984a621ed3f"><enum>(F)</enum><text>Any other general or senior liability of the regulated entity (which is not a liability described under subparagraph (G), (H), or (I)).</text></subparagraph><subparagraph id="id41d9cb52a8094eb29bc5e9b9da953ad4"><enum>(G)</enum><text>Any obligation subordinated to general creditors (which is not an obligation described under subparagraph (H) or (I)).</text></subparagraph><subparagraph id="idb5334921df4c4b3fa228b9177d723aef"><enum>(H)</enum><text>Any wages, salaries, or commissions, including any vacation, severance, and sick leave pay earned, owed to senior executives and directors of the regulated entity.</text></subparagraph><subparagraph id="id6236c784952844daa3b48d05d6f10b2c"><enum>(I)</enum><text>Any obligation to shareholders or members arising as a result of their status as shareholders or members.</text></subparagraph></paragraph><paragraph id="ida9dfe5e8eb984169b7dfcad49859bbb1"><enum>(2)</enum><header>Claims of the United States</header><text>Unsecured claims of the United States shall, at a minimum, have a higher priority than liabilities of the regulated entity that count as regulatory capital.</text></paragraph><paragraph id="id500081a2e6a54914957e7fb3ba0d0dff"><enum>(3)</enum><header>Creditors similarly situated</header><text>All creditors that are similarly situated under paragraph (1) shall be treated in a similar manner, except that the receiver may take any action (including making payments) that does not comply with this subsection, if—</text><subparagraph id="id589eeb4c45f84ae088bb01632e6bccb4"><enum>(A)</enum><text>the Agency determines that such action is necessary to—</text><clause id="idfc650bfa259c46828382da467aa977bb"><enum>(i)</enum><text>maximize the value of the assets of the regulated entity;</text></clause><clause id="id3b3fcc4f84b84a69892275695219a1d5"><enum>(ii)</enum><text>maximize the present value return from the sale or other disposition of the assets of the regulated entity;</text></clause><clause id="idd56211da94224761995c764053ebc256"><enum>(iii)</enum><text>initiate and continue operations essential to implementation of the receivership or any limited-life regulated entity;</text></clause><clause id="id387901b3727c42758756938671fa8740"><enum>(iv)</enum><text>minimize the amount of any loss realized upon the sale or other disposition of the assets of the regulated entity; or</text></clause><clause id="id7ca7f46edc224d01bc92683b0ceca779"><enum>(v)</enum><text>preserve the financial stability of the United States; and</text></clause></subparagraph><subparagraph id="id481522891e10432f8b9a249b4e992ba4"><enum>(B)</enum><text>all creditors that are similarly situated under paragraph (1) receive not less than the amount provided in subsection (f)(2).</text></subparagraph></paragraph><paragraph id="id6b8d40ff822d407b9a60210d7b46565d"><enum>(4)</enum><header>Definition</header><text>As used in this subsection, the term <term>administrative expenses of the receiver</term> includes—</text><subparagraph id="id7e2a4c046cac4b69b49deecd53148519"><enum>(A)</enum><text>the actual, necessary costs and expenses incurred by the receiver in preserving the assets of a failed regulated entity or liquidating or otherwise resolving the affairs of a failed regulated entity; and</text></subparagraph><subparagraph id="id49386067d18542a287c69702091adb12"><enum>(B)</enum><text>any obligations that the receiver determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity.</text></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="id7088ef1bd3154d58a199f783652ccbb3"><enum>(6)</enum><text>by redesignating subsections (d) through (j) as subsections (e) and (k), respectively;</text></paragraph><paragraph id="id012f7a9a32224576b63756ad7e63a926"><enum>(7)</enum><text>by inserting after section (c) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id784661541d244713b876b6461434521d" reported-display-style="italic" style="OLC"><subsection id="id133e4db5e4994748a495b469317c67ec"><enum>(d)</enum><header>Subrogation</header><paragraph id="id875562096b1748cdaa96c82b14348115"><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 Agency, upon the payment to any person as provided in subsection (c) in connection with any covered guarantee transaction (as that term is defined in section 2 of the <short-title>Housing Finance Reform and Taxpayer Protection Act of 2014</short-title>), shall be subrogated to all rights of the person against such regulated entity to the extent of such payment or assumption.</text></paragraph><paragraph id="id15c5bdb71d7045ed94bcf65fea93abc3"><enum>(2)</enum><header>Dividends on subrogated amounts</header><text>The subrogation of the Agency under paragraph (1) with respect to any regulated entity shall include the right on the part of the Agency to receive the same dividends, fees, or other amounts from the proceeds of the assets of such regulated entity and recoveries on account of stockholders’ liability as would have been payable to the person on a claim related to the covered guarantee transaction.</text></paragraph><paragraph id="id28087f3f6153446b805a6a1ed753b60e"><enum>(3)</enum><header>Waiver of certain claims</header><text>The Agency shall waive, in favor only of any person against whom stockholders’ individual liability may be asserted, any claim on account of such liability in excess of the liability, if any, to the regulated entity or its creditors, for the amount unpaid upon such stock in such regulated entity, but any such waiver shall be effected in such manner and on such terms and conditions as will not increase recoveries or dividends on account of claims to which the Agency is not subrogated.</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="id846120649c914d1bb3b4a38a9b76b73a"><enum>(8)</enum><text>in subsection (e), as so redesignated—</text><subparagraph id="id87e44a0a69d74a2ea471c855944c0409"><enum>(A)</enum><text>in paragraph (8), by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idc1dbb1ae37414284a08a24771350d8fe" reported-display-style="italic" style="OLC"><subparagraph id="idb7c54cae1dc34434b723db0807ba0e15"><enum>(H)</enum><header>Recordkeeping</header><text>The Agency may prescribe regulations requiring that regulated entities maintain such records with respect to qualified financial contracts (including market valuations) that the Agency determines to be necessary or appropriate in order to assist the Agency as receiver for a regulated entity in being able to exercise its rights and fulfill its obligations under this paragraph or paragraph (9) or (10).</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph><subparagraph id="id424f9393cde040aab1a462f80c5df3d2"><enum>(B)</enum><text>by striking paragraph (9) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id7e39cf11f2134dfe8f84e3f907522b7e" reported-display-style="italic" style="OLC"><paragraph id="id62d13ac9a77b47fbbb2fdec2d754ca63"><enum>(9)</enum><header>Transfer of qualified financial contracts</header><subparagraph id="id9a9e5fa3669d4ef08775e009023173d5"><enum>(A)</enum><header>In general</header><text>In making any transfer of assets or liabilities of a regulated entity in default which includes any qualified financial contract, the conservator or receiver for such regulated entity shall either—</text><clause id="idebd29932189646efb5215b4e9dbfaeb6"><enum>(i)</enum><text>transfer to 1 person, other than a person for which a conservator, receiver, trustee in bankruptcy, or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding—</text><subclause id="id9df05ad33a054a81905a89ffe1149350"><enum>(I)</enum><text>all qualified financial contracts between any person (or any affiliate of such person) and the regulated entity in default;</text></subclause><subclause id="id3ccffe733af849adb3bf69ced5e76627"><enum>(II)</enum><text>all claims of such person (or any affiliate of such person) against such regulated entity under any such contract (other than any claim which, under the terms of any such contract, is subordinated to the claims of general unsecured creditors of such regulated entity);</text></subclause><subclause id="idb256f911c6b641a19ddf383dfeaa4ab7"><enum>(III)</enum><text>all claims of such regulated entity against such person (or any affiliate of such person) under any such contract; and</text></subclause><subclause id="id1976be1770774e56b4f6a3fb1942fbb2"><enum>(IV)</enum><text>all property securing, or any other credit enhancement for any contract described in subclause (I), or any claim described in subclause (II) or (III) under any such contract; or</text></subclause></clause><clause id="idca3ed99a45c743e19bd5e2500ebf0e96"><enum>(ii)</enum><text>transfer none of the financial contracts, claims, or property referred to under clause (i) (with respect to such person and any affiliate of such person).</text></clause></subparagraph><subparagraph id="id9829b2a31ca1419a9ba4d5b43c37c204"><enum>(B)</enum><header>Transfer to foreign bank, financial institution, or branch or agency thereof</header><text>In transferring any qualified financial contracts and related claims and property under subparagraph (A)(i), the Agency as receiver for a regulated entity shall not make such transfer to a foreign person unless, under the law applicable to such foreign person, to the qualified financial contracts, and to any netting contract, any security agreement or arrangement or other credit enhancement related to 1 or more qualified financial contracts, the contractual rights of the parties to such qualified financial contracts, netting contracts, security agreements or arrangements, or other credit enhancements, are enforceable substantially to the same extent as permitted under this section.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="idb4c704bd12f346d2b89c0f7dcebc7e02"><enum>(C)</enum><text>in paragraph (13)(C)(ii)—</text><clause id="id837A3F5B599D41DEA5FBE6CFFCD93DED"><enum>(i)</enum><text>by redesignating subclause (III) as subclause (IV);</text></clause><clause id="id47DBF4A5FBF04A04B812BD1DBF98CE8B"><enum>(ii)</enum><text>by striking <quote>and</quote> at the end of subclause (II); and</text></clause><clause id="id86E97806DEC5409288CAFAC3A45C823F"><enum>(iii)</enum><text>by inserting after subclause (II) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id2e873156e8f144aa86dcb637d9bba229" reported-display-style="italic" style="OLC"><subclause id="id50c64d47ab8e4c62a31ded150f73b398"><enum>(III)</enum><text>apply to the rights of parties to netting contracts pursuant to subtitle A of title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.); or</text></subclause><after-quoted-block>; </after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="idbc95b8c1eefa4556a1aa75e6ee85be43"><enum>(9)</enum><text>in subsection (g), as so redesignated—</text><subparagraph id="id8d41d196c4154d63867ebade46c460a8"><enum>(A)</enum><text>by striking <quote>section or at the request of the Director</quote> and inserting <quote>title</quote>; and</text></subparagraph><subparagraph id="id310541f0d0db4e199e000e9dce17a577"><enum>(B)</enum><text>by striking <quote>a conservator or a receiver</quote> and inserting <quote>the conservator or receiver hereunder, and any remedy against the Agency as conservator or receiver shall be limited to money damages determined in accordance with this title</quote>;</text></subparagraph></paragraph><paragraph id="ide70c05c4142342df81e59dfd1d77b4b9"><enum>(10)</enum><text>in subsection (j), as so redesignated—</text><subparagraph id="id68bd1d3b5d074a9eb55f02a704beed9d"><enum>(A)</enum><text>in paragraph (1)(A)(ii), by striking <quote>shall</quote> and inserting <quote>may</quote>;</text></subparagraph><subparagraph id="idb179cca645584fb1a5ffacd01fc253fe"><enum>(B)</enum><text>in paragraph (2)—</text><clause id="id6DB61BB2429A4400AEB7920442CA2297"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="paragraph" style="OLC">Charter and establishment</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Establishment of Limited-Life Regulated Entities</header-in-text></quote>; and</text></clause><clause id="idc5bacd0cb28b4f209c62017660757ae7"><enum>(ii)</enum><text>by striking subparagraph (A) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id4c2f59a072e44d3e81b24f9c2e116853" reported-display-style="italic" style="OLC"><subparagraph id="id39dee1993bd34aa4ad77bc9f9bc85e9f"><enum>(A)</enum><header>Transfer of registered status</header><text>If the Agency is appointed as receiver for an enterprise, the limited-life regulated entity established under this subsection with respect to such enterprise shall, by operation of law and immediately upon its organization, succeed to the registered status of the enterprise and thereafter operate in accordance with, and subject to, this Act and any other provision of law to which an enterprise is subject, except as otherwise provided in this subsection.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idbbffd29e94d14d8b90c290e5542f4960"><enum>(C)</enum><text>in paragraph (3)—</text><clause id="id99893A56C4324217A7BF225AE151FD9F"><enum>(i)</enum><text>in the heading, by inserting <quote><header-in-text level="paragraph" style="OLC">and operating funds</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">Capital stock</header-in-text></quote>;</text></clause><clause id="id51fd8319576b4984b3a684ca4dbf430d"><enum>(ii)</enum><text>by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively;</text></clause><clause id="id7d2fda3279f0408f978a83c8f701da63"><enum>(iii)</enum><text>by inserting prior to subparagraph (B), as so redesignated, the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idba683903dc46479ab9b64d7ebafed563" reported-display-style="italic" style="OLC"><subparagraph id="id85a7538671a4475dbfcd8bd7b53ea625"><enum>(A)</enum><header>Capital not required</header><text>Notwithstanding any other provision of Federal or State law, a limited-life regulated entity may, if permitted by the Agency, operate without any capital or surplus as the Agency may in its discretion determine to be appropriate.</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></clause><clause id="id554c52cf457c42e5bead654df251c78f"><enum>(iv)</enum><text>in subparagraph (B), as so redesignated, by striking <quote><header-in-text level="paragraph" style="OLC">No agency requirement</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">No contribution by the Agency required</header-in-text></quote>; and</text></clause><clause id="id6f3ab3063a5c446b8bea191bddf52576"><enum>(v)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id9220367cf9a244e6b401d6f7a82ff7eb" reported-display-style="italic" style="OLC"><subparagraph id="id2c26bc07a75944538ffd0f64f07f5730"><enum>(D)</enum><header>Operating funds</header><text>Upon the organization of a limited-life regulated entity, and thereafter, as the Agency may, in its discretion, determine to be necessary or advisable, the Agency may make available to the limited-life regulated entity, upon such terms and conditions and in such form and amounts as the Agency may in its discretion determine, funds for the operation of the limited-life regulated entity in lieu of capital.</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idd7a85ec20cfd4c6da8069a1194107be6"><enum>(D)</enum><text>in paragraph (6)—</text><clause id="idBE8FA29AA3A742898A0ABCAA7B92C881"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text level="paragraph" style="OLC">Winding up</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Winding down</header-in-text></quote>;</text></clause><clause id="idB9CD91B7092C4031812A2106975CF4E0"><enum>(ii)</enum><text>by striking subparagraph (A) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id33509638135b4ee1b00ffcc7ebe430b8" reported-display-style="italic" style="OLC"><subparagraph id="id0c61a8caa1764a7d9cd9c5e110a197de"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), the Agency shall wind down the affairs of a limited-life regulated entity established under this subsection—</text><clause id="idb03cc08b51c34e9e9d83a76a95b6b590"><enum>(i)</enum><text>with respect to a Federal Home Loan Bank, not later than 2 years after the date of its organization; and</text></clause><clause id="id41dc5c0350c14df38fbf735e7d97d3a1"><enum>(ii)</enum><text>with respect to an enterprise, within such period of time as the Agency determines to be necessary and appropriate.</text></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="id10c60f7f72f84f8ca74614276ceadf61"><enum>(iii)</enum><text>in subparagraph (B), by inserting <quote>established under this subsection with respect to a Federal Home Loan Bank</quote> after <quote>limited-life regulated entity</quote>;</text></clause></subparagraph><subparagraph id="id454f91eb124b48cbb8d3913395015f0c"><enum>(E)</enum><text>in paragraph (7)(A)(iv)—</text><clause id="idBCE3CDB6AE8641988582F29CF007F5E4"><enum>(i)</enum><text>in the matter preceding subclause (I), by inserting <quote>the Agency determines that such actions are necessary to</quote> after <quote>that do not comply with this clause, if</quote>; and</text></clause><clause id="ida43303f2f2cc4b0590e6cdf6e7bbdd7b"><enum>(ii)</enum><text>by striking subclauses (I) and (II) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id3F1B5775C1E446E2AFB19A888D9A981B" reported-display-style="italic" style="OLC"><subclause id="ide6c7e4aee90248d1936d791cb4b525c6"><enum>(I)</enum><text>maximize the value of the assets of the regulated entity;</text></subclause><subclause id="id8f86e9bff4a1401fb5f7e4718dd63984"><enum>(II)</enum><text>maximize the present value return from the sale or other disposition of the assets of the regulated entity;</text></subclause><subclause id="id0703622be9a04df2b33c51b8bcd39a85"><enum>(III)</enum><text>initiate and continue operations essential to the implementation of the limited-life regulated entity;</text></subclause><subclause id="id1dd90bb89e4142cea4fd198c66579eef"><enum>(IV)</enum><text>minimize the amount of any loss realized upon the sale or other disposition of the assets of the regulated entity;</text></subclause><subclause id="id64027188518245af95981f06b1a13ec1"><enum>(V)</enum><text>preserve the financial stability of the United States; and</text></subclause><subclause id="id9b71fe14e1da40b8ac3921bdbf144fe9"><enum>(VI)</enum><text>ensure that all creditors that are similarly situated under subsection (c)(1) receive not less than the amount provided in subsection (f)(2).</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idf94daf6264e241c0ae744f358da34c54"><enum>(F)</enum><text>in paragraph (11)(C)—</text><clause id="idA3F475622B404A91AD39AE0A3D5EBDD2"><enum>(i)</enum><text>in clause (i), in the matter preceding subclause (I), by striking <quote>(other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by an enterprise)</quote>; and</text></clause><clause id="id1e87004487044065a5f906a4b94d3f8d"><enum>(ii)</enum><text>by inserting at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id0824228549e4472eb8111b8f8fe184ae" reported-display-style="italic" style="OLC"><clause id="id1fad2feb6d2a4b01b3ba1d48fe742ab0"><enum>(ii)</enum><header>Hearing</header><text>The hearing required pursuant to this subparagraph shall be before a court of the United States, which shall have jurisdiction to conduct such hearing and to authorize the limited-life regulated entity to obtain secured credit under clause (i).</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="id70bf49cef5614dd0abbf64ea9670c06c"><enum>(11)</enum><text>by striking subsection (k)(relating to charter revocation), as so designated by Public Law 110–289.</text></paragraph></subsection><subsection id="id9b2c903985e84265adc98b7e9980e119"><enum>(c)</enum><header>Rule of construction</header><text>Nothing in this Act, or any amendments made by this Act, except as may be explicitly provided for in this Act, or any amendment made by this Act, shall be deemed to alter the powers, authorities, rights, or duties that are vested in the Federal Housing Finance Agency or the Director thereof with respect to supervision and regulation of the enterprises, until such time as the Federal Housing Finance Agency and the position of the Director are transferred in accordance with title IV of this Act.</text></subsection></section><section id="id437B5BDBACE5471BA53F32BD1E5A8673"><enum>604.</enum><header>Wind down</header><subsection id="ida111e2da73634e8596a920e403ae405b"><enum>(a)</enum><header>Authority of FHFA Director</header><paragraph id="idBC4C36092EDB4C2397DDF39E500CCC82"><enum>(1)</enum><header>In general</header><text>Beginning on the date of enactment of this Act and ending on the system certification date, the FHFA Director, in consultation with the Corporation, shall take such action, and may prescribe such regulations and procedures, as may be necessary to wind down the operations of the enterprises in an orderly manner that complies with the requirements of this Act and any amendments made by this Act.</text></paragraph><paragraph commented="no" id="id20f3d81bc7c2444e8fb62a3b261270b2"><enum>(2)</enum><header>Limitation</header><text>Notwithstanding any authority granted to the FHFA Director under paragraph (1)—</text><subparagraph commented="no" id="idB3B7726AB6FB4C08BEBE5D2EF34FA241"><enum>(A)</enum><text>the sale, exchange, license, or other disposition of any asset for value subject to the wind down required under this section shall be prohibited, if the Corporation—</text><clause commented="no" id="id778e328980654c9abb0038b91591c83d"><enum>(i)</enum><text>in its discretion determines that such sale, exchange, license, or disposition would materially interfere with the ability of the Corporation to carry out the requirements of this Act; and</text></clause><clause commented="no" id="ide8a1858d485943bf9cc54e7f441c5feb"><enum>(ii)</enum><text>notifies, in writing, the FHFA Director within 14 days of such determination; and</text></clause></subparagraph><subparagraph commented="no" id="id8C06EE012BDA44AE96DE606967064851"><enum>(B)</enum><text>the Corporation may direct the conservator of the enterprises to sell, exchange, license, or otherwise dispose of any asset for value subject to the wind down required under this section, if the Board of Directors certifies by a majority vote that—</text><clause commented="no" id="idEFDC9F41716740588BD51FEA8A3B546F"><enum>(i)</enum><text>not completing such sale, transfer, exchange, license, or other disposition for value would be inconsistent with the transition plan approved pursuant to section 602; and</text></clause><clause commented="no" id="idAB0E809BB1064F92A0A8B407C31CD1F3"><enum>(ii)</enum><text>such sale, transfer, exchange, license, or disposition for value would not violate the duties of the conservator.</text></clause></subparagraph></paragraph></subsection><subsection id="id144e69c370cf4c95a2ee93d3b0d4c49c"><enum>(b)</enum><header>Authority of Corporation</header><text>Beginning on the system certification date, the Corporation shall take such action, and may prescribe such regulations and procedures, as may be necessary to wind down the operations of the enterprises in an orderly manner that complies with the requirements of this Act and any amendments made by this Act.</text></subsection><subsection id="id57a44947561f4bd3b2335a2be6bf3081"><enum>(c)</enum><header>Resolution plan</header><paragraph id="id517aa7639ccc42d3b150ec7076d3ed22"><enum>(1)</enum><header>In general</header><text>Each enterprise shall develop a resolution plan in order to facilitate an orderly transition to the new housing finance system authorized by this Act.</text></paragraph><paragraph id="id9d0cef52526d4de2975f093cb51c757c"><enum>(2)</enum><header>Timing</header><text>Each resolution plan required to be developed under paragraph (1) shall be submitted to the FHFA Director not later than 90 days after the agency transfer date.</text></paragraph><paragraph id="id2ad9849f507d47558e6dc91e7e19b75a"><enum>(3)</enum><header>Contents of plans</header><text>Each resolution plan required to be developed under paragraph (1) shall include a full description and valuation of the assets, liabilities, and contractual obligations of the enterprise, and any other information that the FHFA Director may require.</text></paragraph><paragraph id="id80146f1ae50a4772b6a33350b8d3445d"><enum>(4)</enum><header>Retention of authority</header><text>Notwithstanding any provision of a resolution plan required to be developed under paragraph (1), the Federal Housing Finance Agency and the Corporation shall retain and exercise full discretion to the extent that either the Agency or the Corporation utilizes or relies on such a resolution plan, either in whole or in part, in fulfilling any duty or responsibility required by this Act.</text></paragraph><paragraph id="iddd495ddfa83442c48fbb64a34e774b74"><enum>(5)</enum><header>Public summary</header><text>After reviewing each resolution plan required to be developed under paragraph (1), the Corporation shall make available to the public a summary of each such resolution plan.</text></paragraph><paragraph id="id026f637465394784becc9a7ff4335d7c"><enum>(6)</enum><header>Valuation study</header><text>After reviewing each resolution plan required to be developed under paragraph (1), the Corporation shall conduct a valuation study of each enterprise’s business segments, including any technology, business unit, legacy book, and other assets and liabilities that may be sold for value in a manner consistent with the purposes and requirements of this Act.</text></paragraph></subsection><subsection id="id74fd4109abd24099ba7468841bde32cb"><enum>(d)</enum><header>Prohibition on new business</header><paragraph id="id1e861a627dbf459e8824829685f976cf"><enum>(1)</enum><header>Federal National Mortgage Association</header><subparagraph id="id6549651a34c44361a06b5441f3c4949c"><enum>(A)</enum><header>New business prohibited</header><text>Effective on the system certification date, the Federal National Mortgage Association shall have no authority to conduct new business under the Federal National Mortgage Association Charter Act.</text></subparagraph><subparagraph id="id7331ce9ee9484998af7f9adc1dca30eb"><enum>(B)</enum><header>New business defined</header><text>For purposes of subparagraph (A), the term <term>new business</term> means any new—</text><clause id="id0144687d5ccf4da28c565507e261824e"><enum>(i)</enum><text>purchase of, servicing of, or dealing in any insured or conventional mortgages by the Federal National Mortgage Association under section 302(b) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)</external-xref>);</text></clause><clause id="idc16fe8a0c9b04a889b4c694ac2e9ac62"><enum>(ii)</enum><text>purchase of a mortgage by the Federal National Mortgage Association in its secondary mortgage market operations under section 304(a) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1719">12 U.S.C. 1719(a)</external-xref>);</text></clause><clause id="id12c6368bf3d34b219df54d5e8a1b5289"><enum>(iii)</enum><text>issue of an obligation of the Federal National Mortgage Association under section 304(b) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1719">12 U.S.C. 1719(b)</external-xref>), including—</text><subclause id="id383dbd8f078848dabe2e474950439b68"><enum>(I)</enum><text>bonds, notes, debentures, and other similar instruments;</text></subclause><subclause id="iddf51ccd80b7646e9a611e686ca3b64f4"><enum>(II)</enum><text>capital lease obligations;</text></subclause><subclause id="id3de150bc167842eb8779ac6b356cfc45"><enum>(III)</enum><text>obligations in respect of letters of credit, bankers acceptances, or other similar instruments;</text></subclause><subclause id="id39bdc8b6f5de4b51838851885b9615d2"><enum>(IV)</enum><text>guarantees of new securities based on mortgages set aside; and</text></subclause><subclause id="idb42c4b7861bb473ea9b6c1384480054c"><enum>(V)</enum><text>swap, security-based swap, derivative product, or other similar instrument;</text></subclause></clause><clause id="idec48338823ab4cf29b514a976bbf0751"><enum>(iv)</enum><text>setting aside of any mortgages held by the Federal National Mortgage Association and any new issue and sale of securities based on the mortgages so set aside under section 304(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(d)); and</text></clause><clause id="id8aa2c7ed91de4132bb7f5f91b887e7dd"><enum>(v)</enum><text>issue of a subordinated obligation of the Federal National Mortgage Association under section 304(e) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(e)).</text></clause></subparagraph><subparagraph id="id21df52643df743dca21c5b7c1a80e512"><enum>(C)</enum><header>Exclusion from new business</header><text>The term <term>new business</term> shall not include any new—</text><clause id="idb8146554dc66414b986e12963df3e500"><enum>(i)</enum><text>purchase by the Federal National Mortgage Association of a non-performing mortgage from a pool of mortgages previously set aside by the enterprise;</text></clause><clause id="id02bc88df19574d89b10e92e7ea792e39"><enum>(ii)</enum><text>issue of an obligation of the Federal National Mortgage Association if, after giving effect to the issuance, the aggregate amount of such obligations does not exceed 120 percent of the amount of mortgage assets permitted to be owned by the enterprise under section 605;</text></clause><clause id="idb5b72542903545918cb88dd26db411d0"><enum>(iii)</enum><text>setting aside of mortgages previously set aside by the Federal National Mortgage Association, or any new issue and sale of securities based on the mortgages so previously set aside, to refund or replace an outstanding issue of securities based on mortgages previously set aside, if the face amount of the refunding or replacing mortgage-backed securities does not exceed the face amount of the mortgage-backed securities being refunded or replaced;</text></clause><clause id="ida19d528445554c2d80f19ad32cf6addf"><enum>(iv)</enum><text>transfer of guarantees of mortgage-backed securities guaranteed by the Federal National Mortgage Association if the mortgage loans collateralizing such securities are refinanced, regardless of the value of the underlying collateral and the homeowner’s current employment status and income; or</text></clause><clause id="idC49996A7E11841D2BA4EFC07EBFC5DD8"><enum>(v)</enum><text>entry into any swap, security-based swap, or other similar instrument, or purchase of sale of any derivative product, or other similar instrument, to facilitate the orderly wind down of the Federal National Mortgage Association and appropriate loss mitigation on any outstanding guarantees of the Federal National Mortgage Association under section 605.</text></clause></subparagraph><subparagraph id="ida16aea9eb45c4df8ae94f246b1193786"><enum>(D)</enum><header>New business prohibition not to affect outstanding enterprise debt or guarantees</header><text>Nothing in subparagraph (A) shall adversely affect the rights and obligations of any holders of—</text><clause id="id315aec20a9724c4984c086e3f3a82873"><enum>(i)</enum><text>outstanding debt obligations of the Federal National Mortgage Association, including any—</text><subclause id="id53035018a2fa4594bf5b3795f34e7a28"><enum>(I)</enum><text>bonds, notes, debentures, or other similar instruments;</text></subclause><subclause id="id1293afd7c20f4713ae4ca34740449251"><enum>(II)</enum><text>capital lease obligations;</text></subclause><subclause id="id055557b1ca3a4176927d20ecf354593a"><enum>(III)</enum><text>obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or</text></subclause><subclause id="id8a349fe88db048c68ded3cfff88dc260"><enum>(IV)</enum><text>swap, security-based swap, derivative product, or other similar instrument; or</text></subclause></clause><clause id="id5cc7eafcd1134460986fc5735cb598e6"><enum>(ii)</enum><text>mortgage-backed securities guaranteed by the Federal National Mortgage Association.</text></clause></subparagraph></paragraph><paragraph id="id6de3f3456e7a47ff94ce9bc20db90e0b"><enum>(2)</enum><header>Federal Home Loan Mortgage Corporation</header><subparagraph id="ida3dad2aa8bed4a338e282d6ca7ea073d"><enum>(A)</enum><header>New business prohibited</header><text>Effective on the system certification date, the Federal Home Loan Mortgage Corporation shall have no authority to conduct new business under the Federal Home Loan Mortgage Corporation Act.</text></subparagraph><subparagraph id="idac36d11813a6461bbdbc020423ffd410"><enum>(B)</enum><header>New business defined</header><text>For purposes of subparagraph (A), the term <term>new business</term> means any new—</text><clause id="id2472ca0f0f0945efbbc6ab0c4e95c677"><enum>(i)</enum><text>purchase of, servicing of, or dealing in any insured or conventional mortgages by the Federal Home Loan Mortgage Corporation under section 305(a) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)</external-xref>);</text></clause><clause id="idafb2a4559f1843128fa92971abd97cbf"><enum>(ii)</enum><text>issue of an obligation of the Federal Home Loan Mortgage Corporation under section 306(a) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1455">12 U.S.C. 1455(a)</external-xref>), including—</text><subclause id="id146da367778946af89d96500c7a69085"><enum>(I)</enum><text>bonds, notes, debentures, and other similar instruments;</text></subclause><subclause id="idac4fd268bf7a4f4d91f25514b7e717e4"><enum>(II)</enum><text>capital lease obligations;</text></subclause><subclause id="id398154bb8dd74e6883e4c8b5ddbd787b"><enum>(III)</enum><text>obligations in respect of letters of credit, bankers acceptances, or other similar instruments;</text></subclause><subclause id="id4a171699123a4e7c949e280987fccb54"><enum>(IV)</enum><text>guarantees of new securities based on mortgages set aside; and</text></subclause><subclause id="idda3b3855457245759904024547dac4b2"><enum>(V)</enum><text>swap, security-based swap, derivative product, or other similar instrument;</text></subclause></clause><clause id="id8a53de70b88a463cb229ac0c116ef80c"><enum>(iii)</enum><text>issue of mortgage-backed securities under the Federal Home Loan Mortgage Corporation Act; and</text></clause><clause id="id50e6359a77154417a166f48c7f68dc1f"><enum>(iv)</enum><text>issue of a subordinated obligation of the Federal Home Loan Mortgage Corporation under the Federal Home Loan Mortgage Corporation Act.</text></clause></subparagraph><subparagraph id="ide655f5b19c37444fb3341cdd14add44b"><enum>(C)</enum><header>Exclusion from new business</header><text>The term <term>new business</term> shall not include any new—</text><clause id="id4603916e527f456a9a08a877a450a471"><enum>(i)</enum><text>purchase by the Federal Home Loan Mortgage Corporation of a non-performing mortgage from a pool of mortgages previously set aside by the enterprise;</text></clause><clause id="idd5092f2de06e47258ffe8ba514eaa99e"><enum>(ii)</enum><text>issue of an obligation of the Federal Home Loan Mortgage Corporation if, after giving effect to the issuance, the aggregate amount of such obligations does not exceed 120 percent of the amount of mortgage assets permitted to be owned by the enterprise under section 605;</text></clause><clause id="idc9dc5143986143caa47c23bc6689e8ee"><enum>(iii)</enum><text>issue of mortgage-backed securities, to refund or replace an outstanding issue of mortgage-backed securities, if the face amount of the refunding or replacing mortgage-backed securities does not exceed the face amount of the mortgage-backed securities being refunded or replaced;</text></clause><clause id="id67eed52984414fbf8689dc16e871d325"><enum>(iv)</enum><text>transfer of guarantees of mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation if the mortgage loans collateralizing such securities are refinanced, regardless of the value of the underlying collateral and the homeowner’s current employment status and income; or</text></clause><clause commented="no" display-inline="no-display-inline" id="idBE57507530794A2E94CE06A47CD4909C"><enum>(v)</enum><text display-inline="yes-display-inline">entry into any swap, security-based swap, or other similar instrument, or purchase of sale of any derivative product, or other similar instrument, to facilitate the orderly wind down of the Federal Home Loan Mortgage Corporation and appropriate loss mitigation on any outstanding guarantees of the Federal Home Loan Mortgage Corporation under section 605.</text></clause></subparagraph><subparagraph id="idfe735b35a4974f8cb166cfb62c7bdacb"><enum>(D)</enum><header>New business prohibition not to affect outstanding enterprise debt or guarantees</header><text>Nothing in subparagraph (A) shall adversely affect the rights and obligations of any holders of—</text><clause id="iddffb20104f94484eadc5c4b970b55e6b"><enum>(i)</enum><text>outstanding debt obligations of the Federal Home Loan Mortgage Corporation, including any—</text><subclause id="id02b8ee5e873c4c84ae478fc733478bde"><enum>(I)</enum><text>bonds, notes, debentures, or other similar instruments;</text></subclause><subclause id="id2efb6fa2a9994f66aa768319f1c8359b"><enum>(II)</enum><text>capital lease obligations;</text></subclause><subclause id="id9461a0af53da415193b5121db7e2ec1b"><enum>(III)</enum><text>obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or</text></subclause><subclause id="id8c5b620ae7dd447287add34c04986ad0"><enum>(IV)</enum><text>swap, security-based swap, derivative product, or other similar instrument; or</text></subclause></clause><clause id="idf6daa491b5c6468fb5a02c1b34dae67d"><enum>(ii)</enum><text>mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation.</text></clause></subparagraph></paragraph><paragraph id="id307aa853e7364a6898654b408253311b"><enum>(3)</enum><header>Rule of construction</header><text>The prohibition on new business by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation set forth in paragraphs (1) and (2) shall not prohibit, nor be construed to prohibit, the Corporation from managing such entity.</text></paragraph><paragraph id="idd0f51c36a4af4087850d8be7f69062f5"><enum>(4)</enum><header>Existing guarantee obligations</header><subparagraph id="id2fc4c808f07f4c90a07ddc63214f5652"><enum>(A)</enum><header>Explicit guarantee</header><text>The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any obligation described under paragraphs (1) and (2), including any obligation issued on or after the system certification date to refund or replace an obligation that was outstanding on the day before the system certification date.</text></subparagraph><subparagraph id="id227774f6f408460f8f53d90572b0beb8"><enum>(B)</enum><header>Loan eligibility</header><text>The enterprises shall include as eligible loans for the purposes of refinancing all current loans that qualify as eligible mortgage loans and meet those underwriting requirements for eligibility for same servicer refinancing, except that the enterprises may not disqualify or impose varying rules based on loan-to-value, combined loan-to-value, employment status, or income with regard to refinancing mortgage loans that collateralize mortgage-backed securities issued by an enterprise prior to the system certification date.</text></subparagraph><subparagraph id="idef047747cbd3419a94115aef324cdab7"><enum>(C)</enum><header>Continued dividend payments</header><text>Notwithstanding the provisions of this section or any other provision of law, provision 2(a) (relating to Dividend Payment Dates and Dividend Periods) and provision 2(c) (relating to Dividend Rates and Dividend Amount) of the Senior Preferred Stock Purchase Agreement, or any provision of any certificate in connection with such Agreement creating or designating the terms, powers, preferences, privileges, limitations, or any other conditions of the Variable Liquidation Preference Senior Preferred Stock of an enterprise issued pursuant to such Agreement—</text><clause id="id972d5bd2bb6f405b9ccbd981ee5d5c4f"><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 shall be permitted if it facilitates the sale of assets of the enterprises to facilitate compliance with this title; and</text></clause><clause id="id7166a12fe59d4a86b305fad2b091d080"><enum>(ii)</enum><text>shall remain in effect until the guarantee obligations described under paragraphs (1) and (2) are fully extinguished.</text></clause></subparagraph><subparagraph id="id78528f9c9c4c420ab86851cda803c384"><enum>(D)</enum><header>Applicability</header><text>Notwithstanding the provisions of this section, all guarantee fee amounts derived from the mortgage guarantee business of the enterprises in existence as of the system certification date, after satisfying the fee amounts required to be collected by section 1327 of the Safety and Soundness Act (12 U.S.C. 4547), shall be subject to the terms of the Senior Preferred Stock Purchase Agreement.</text></subparagraph></paragraph></subsection><subsection id="idf4dd9aefa10b43fba9df41532232660e"><enum>(e)</enum><header>Charters revoked</header><text>Effective upon the date the guarantee obligations under subsection (d)(4)(A) are fully extinguished:</text><paragraph id="id1B55EE4240EA4DF7B4B836A987CC465D"><enum>(1)</enum><text>The Federal National Mortgage Association Charter Act is repealed, except as the provisions of such Act relate to the establishment, purposes, powers, authorities, duties, supervision, administration, and management of the Government National Mortgage Association.</text></paragraph><paragraph id="id2B66C747FBCA42359A2F9BDBB558F972"><enum>(2)</enum><text>The Federal Home Loan Mortgage Corporation Act is repealed.</text></paragraph></subsection><subsection id="idaa6bd844eb054de5a4583c6f1013beab"><enum>(f)</enum><header>Authority to insure outstanding mortgage-backed securities; mortgage-backed securities of the enterprises</header><paragraph id="id3d680830f93c44e8bbadf7959e4a7566"><enum>(1)</enum><header>Authority to insure mortgage-backed securities; authority to develop enterprise mortgage-backed securities</header><text>After the agency transfer date, and subject to such procedures, standards, terms, and conditions as may be adopted by the Corporation under paragraph (2), the Corporation may—</text><subparagraph id="id4980cc4fab0d45a697a8ae853da32531"><enum>(A)</enum><text>upon application and in exchange for a fee determined by the Corporation, provide insurance on outstanding mortgage-backed securities issued by the enterprises; and</text></subparagraph><subparagraph id="id948ba3d0094c4439bfa3a66a7ab114cf"><enum>(B)</enum><text>facilitate, including through the operations of the enterprises or the utilization of the Platform, the—</text><clause id="ida5a4fe3e399c4d24a319b3a90d049c45"><enum>(i)</enum><text>exchange of mortgage-backed securities issued by either enterprise for covered securities;</text></clause><clause id="idB9A160522473421B91401E90BF33B43B"><enum>(ii)</enum><text>exchange of mortgage-backed securities issued by 1 enterprise for those of the other enterprise;</text></clause><clause id="id80f6211cfb344a5f9a1ac03c6327d02f"><enum>(iii)</enum><text>issuance of mortgage-backed securities by both enterprises through a single issuer; and</text></clause><clause id="ide78c4669eccc400283c96487a74b47fb"><enum>(iv)</enum><text>issuance of real estate mortgage investment conduit securities, consisting of mortgage-backed securities issued by the enterprises.</text></clause></subparagraph></paragraph><paragraph id="id3283e4d9c2a643b8b83cd158ec52eda4"><enum>(2)</enum><header>Development of procedures, standards, terms, and conditions</header><text>The Corporation shall develop and adopt procedures, standards, terms, and conditions to enable the Corporation and each of the enterprises, as applicable, to implement each of the activities described in paragraph (1).</text></paragraph><paragraph id="idb939ff3979824c23b809c32aa106256d"><enum>(3)</enum><header>Required procedures, standards, terms, and conditions</header><text>In the development and adoption of the procedures, standards, terms, and conditions required under paragraph (2), the Corporation shall consider the effect of each activity with respect to the following:</text><subparagraph id="id81d56e066efb4628868581b8c651b5a8"><enum>(A)</enum><text>Lender access to the secondary mortgage market.</text></subparagraph><subparagraph id="id2fa1599182af43a88f087d4e4a37afb5"><enum>(B)</enum><text>The liquidity and trading price of existing enterprise mortgage-backed securities.</text></subparagraph><subparagraph id="idaee9dfaff98c4d0a89378c1fc1a21cd5"><enum>(C)</enum><text>The ability of market participants and the enterprises to issue new mortgage-backed securities.</text></subparagraph><subparagraph id="iddfeb1c00b9fb4688b742793405902ba9"><enum>(D)</enum><text>The cost to the enterprises or the Corporation to exchange, restructure, or insure mortgage-backed securities.</text></subparagraph></paragraph></subsection><subsection id="id8571a8ce0c5b4ef185d542a5e5c9698e"><enum>(g)</enum><header>Report to Congress</header><paragraph id="idAC4BD3F463F54BFD878B60961EE03C07"><enum>(1)</enum><header>In general</header><text>Prior to the agency transfer date, the FHFA Director shall submit a study considering the feasibility of activities described in subsection (f)(1) to—</text><subparagraph id="id8aada7af77de4e7db285065528534068"><enum>(A)</enum><text>the Committee on Banking, Housing, and Urban Affairs of the Senate;</text></subparagraph><subparagraph id="idb9f0e8f8ac924ad3bb2cf1315a96cb9c"><enum>(B)</enum><text>the Committee on Financial Services of the House of Representatives; and</text></subparagraph><subparagraph id="ide502309617234c5f868cf792b7422c9c"><enum>(C)</enum><text>the Corporation.</text></subparagraph></paragraph><paragraph id="id3A98F134FF9B45D680B33E93863D48EA"><enum>(2)</enum><header>Updates</header><text>Following the agency transfer date, the Corporation shall provide updates on the activities described in subsection (f)(1) in the transition plan (and in each annual update thereof) required under section 602.</text></paragraph></subsection><subsection id="iddd4773d024dc4c4b917bb3e4e94b8aeb"><enum>(h)</enum><header>Division of assets and liabilities; authority to establish holding companies, trusts, and subsidiaries</header><paragraph id="id3238374dc08c4b84b78996d191080f4f"><enum>(1)</enum><header>In general</header><text>The action and procedures required under subsection (a)—</text><subparagraph id="id26b9ed553c0740e095eb347d18ddb553"><enum>(A)</enum><text>shall include the establishment and execution of plans to manage assets toward the liquidation of liabilities and provide for an equitable division, distribution, and liquidation of the assets and liabilities of an enterprise, including any infrastructure, property, including intellectual property, historic data, platforms, or any other thing or object of value, provided such plan complies with the requirements of this Act and any amendments made by this Act;</text></subparagraph><subparagraph id="ida8ab13bfe7df4b608c30014c5ffa94cd"><enum>(B)</enum><text>may provide for the establishment of—</text><clause id="id615653769c48417f8cc97ddb22291cae"><enum>(i)</enum><text>a holding corporation organized under the laws of any State of the United States or the District of Columbia for the purpose of winding down an enterprise or both enterprises;</text></clause><clause id="id2fdca46c711848a18a6da6c373901034"><enum>(ii)</enum><text>1 or more trusts to which to transfer—</text><subclause id="ide60abaef8a874e2b9a04a3894454922e"><enum>(I)</enum><text>outstanding debt obligations of an enterprise or both enterprises; or</text></subclause><subclause id="iddbaef75416ec46849807fafb52ef3fd0"><enum>(II)</enum><text>outstanding mortgages held for the purpose of collateralizing mortgage-backed securities guaranteed by an enterprise or both enterprises; and</text></subclause></clause><clause id="idd16b10b94a9b4f8795ee25355fe68458"><enum>(iii)</enum><text>1 or more subsidiaries or joint ventures with private entities for the purposes of facilitating an orderly wind down of one enterprise or both enterprises and the transition to the new housing finance system;</text></clause></subparagraph><subparagraph id="id77a47ee5f71e4ed596b2740da61cacdd"><enum>(C)</enum><text>may include the sale as a going concern of any holding company, trust, subsidiary, or joint venture with a private entity established by an enterprise under this subsection; and</text></subparagraph><subparagraph id="id1f7a64dcde4c4b2b8cb7812db3ec2955"><enum>(D)</enum><text>may provide that any holding company, trust, subsidiary, or joint venture sold as a going concern may be utilized to facilitate the formation of—</text><clause id="id10ed2b61976e4b53bd534e2e3d75889e"><enum>(i)</enum><text>a small lender mutual under section 315;</text></clause><clause id="id4c3747ba46134267b93b15930c5e7715"><enum>(ii)</enum><text>an approved guarantor;</text></clause><clause id="id541d486b6da74869af546004ae6cbca2"><enum>(iii)</enum><text>an approved multifamily guarantor;</text></clause><clause id="id4e159bd754f84ca78deeeae3e7c0fa7e"><enum>(iv)</enum><text>an approved aggregator; or</text></clause><clause id="id9957476fd9734d278fd25734545191d5"><enum>(v)</enum><text>the Securitization Platform.</text></clause></subparagraph></paragraph><paragraph id="idfee5990b010a4f9cb592cb5fe4fa0b22"><enum>(2)</enum><header>Rule of construction</header><text>Any holding company, trust, subsidiary, or joint venture established by an enterprise before or after the agency transfer date is eligible to be sold by the Federal Housing Finance Agency as a going concern for the purposes described in this section.</text></paragraph></subsection><subsection id="id7d5f6016d5ee4a569c79049ef22d6c2c"><enum>(i)</enum><header>Recoupment by senior preferred shareholders</header><paragraph id="idd9f3a4a572614cbe9b5869333d556a4e"><enum>(1)</enum><header>Maximum return to senior preferred shareholders</header><text>The wind down of each enterprise required under this section shall be managed by the Corporation to obtain resolutions that maximize the return for the senior preferred shareholders, to the extent that such resolutions—</text><subparagraph id="id4ebaab59927848d0a598afd97582d01e"><enum>(A)</enum><text>are consistent with the goals of facilitating—</text><clause id="id129f812b300740ecafc5fddd53f8959c"><enum>(i)</enum><text>a deep, liquid, and resilient secondary mortgage market for single-family and multifamily mortgage-backed securities in order to support access to mortgage credit in the primary mortgage market; and</text></clause><clause id="id605d271adf0447c180b3a4483b774f68"><enum>(ii)</enum><text>an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the Corporation with minimum disruption in the availability of mortgage credit;</text></clause></subparagraph><subparagraph id="id26f539f28af044f48a5d8606d3cf48e7"><enum>(B)</enum><text>are consistent with applicable Federal and State law;</text></subparagraph><subparagraph id="id42f9cb5fa3f54b12bbc74f1d49826c2f"><enum>(C)</enum><text>comply with the requirements of this Act and the amendments made by this Act; and</text></subparagraph><subparagraph id="id3a6a6979ae4f4921b10902fb56c2d28f"><enum>(D)</enum><text>protect the taxpayer from having to absorb losses incurred in the secondary mortgage market.</text></subparagraph></paragraph><paragraph id="idea02c70046c3421089fd14892fa8b77c"><enum>(2)</enum><header>Sale of certain assets as a going concern</header><subparagraph id="id9d5f054be8754d8d98042e4de5001534"><enum>(A)</enum><header>Sale for value</header><text>If the Federal Housing Finance Agency makes the determinations in subparagraph (B), the Federal Housing Finance Agency may conduct a sale, exchange, license, or other disposition for value of any line of business of an enterprise, or any function, activity, asset, intellectual property, or service of an enterprise, as a going concern.</text></subparagraph><subparagraph id="ida2cb19192b8e4318a2f88e8542743475"><enum>(B)</enum><header>Required determinations</header><text>A sale under subparagraph (A) is permitted if the Federal Housing Finance Agency determines that the sale, exchange, license, or other disposition for value—</text><clause id="id70e16b0512304b8a8ec0f7912ef80ecf"><enum>(i)</enum><text>is consistent with the goal of an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the Corporation with minimum disruption in the availability of mortgage credit;</text></clause><clause id="idf1f81e117f854d1dabb1ab6c3ba520cd"><enum>(ii)</enum><text>does not impede or otherwise interfere with the ability of the Federal Housing Finance Agency or the Corporation to carry out the functions and requirements of this Act;</text></clause><clause id="idbc78cb160e0047c4a2ece4e7887ac422"><enum>(iii)</enum><text>does not transfer, convey, or authorize any guarantee or Federal support, assistance, or backing, implicit or explicit, related to any such business line, function, activity, or service;</text></clause><clause id="id5b578005da6b4ff7b69c56775dffbba6"><enum>(iv)</enum><text>will maximize the return for the senior preferred shareholders as required under paragraph (1); and</text></clause><clause id="id77DED2C63CEC40E89860F4B32B543FFE"><enum>(v)</enum><text>would not result in an uncompetitive primary or secondary mortgage market or otherwise limit competitiveness in the primary or secondary mortgage markets.</text></clause></subparagraph><subparagraph id="idE125FBC3C63F465C818CAE7DA3A23601"><enum>(C)</enum><header>Sale of historic data</header><text>The Federal Housing Finance Agency shall conduct a sale for value of each enterprise’s historic data, including loan-level historical performance data. In conducting such sale, the Federal Housing Finance Agency may require that—</text><clause id="id184f336557034e6295f2baf1bd114304"><enum>(i)</enum><text>the purchaser of the historic data is the Corporation or the Securitization Platform;</text></clause><clause id="id790ea406c03b483c9fd04d4be950a43f"><enum>(ii)</enum><text>the purchaser of the historic data makes the historic data available to the public in a searchable and easily accessible format as promptly as practicable; and</text></clause><clause id="id52fdd1090fb34511a235983db5284054"><enum>(iii)</enum><text>the purchaser of the historic data takes appropriate steps to ensure the privacy of consumers, minimizes the collection and storage of personally identifiable financial information, and considers statutes, rules, and regulations relating to the privacy of consumer credit information and personally identifiable financial information.</text></clause></subparagraph></paragraph></subsection></section><section commented="no" id="id4E352888727F414CAF2309620CDCD97A"><enum>605.</enum><header>Portfolio reduction</header><subsection id="id7ac96978f02b4a7bab789743af156c44"><enum>(a)</enum><header>Graduated reduction</header><paragraph id="id1b73bc44d2e24774b9d8f472cb56d504"><enum>(1)</enum><header>In general</header><text>On December 31 of the year after the date of enactment of this Act, and on December 31 of each year thereafter until each enterprise reaches the allowable size of the retained single-family portfolio specified in paragraph (2), each enterprise shall not own single-family mortgage loan assets in excess of 85 percent of the aggregate amount of the single-family mortgage loan assets that the enterprise was permitted to own as of December 31 of the immediately preceding calendar year.</text></paragraph><paragraph id="id32a5abadc00442a1b93388bdfd247658"><enum>(2)</enum><header>Retained single-family portfolio to facilitate orderly wind down</header><text>Not later than the date on which the system certification date occurs, the Corporation shall establish an allowable amount of enterprise-owned single-family mortgage loan assets in an amount equal to the amount necessary to facilitate—</text><subparagraph id="idb208aa9d01ae4764b8090bf0f9a5d562"><enum>(A)</enum><text>the orderly wind down of the enterprises; and</text></subparagraph><subparagraph id="id32cc81669a2b40d4a82fe195f2b0ded8"><enum>(B)</enum><text>appropriate loss mitigation on any legacy guarantees of the enterprises.</text></subparagraph></paragraph></subsection><subsection id="id2fe6c176fcdf4fdebb00d43c35092856"><enum>(b)</enum><header>Mortgage loan assets defined</header><text>For purposes of this section, the term <term>mortgage loan assets</term> means, with respect to an enterprise, assets of such enterprise consisting of mortgage loans, mortgage-related securities, participation certificates, mortgage-backed commercial paper, obligations of real estate mortgage loan investment conduits, and similar assets, in each case to the extent that such assets would appear on the balance sheet of such enterprise in accordance with generally accepted accounting principles in effect in the United States as of September 7, 2008 (as set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board from time to time, and without giving any effect to any change that may be made after September 7, 2008, in respect of Statement of Financial Accounting Standards No. 140 or any similar accounting standard).</text></subsection></section><section id="idECC534049BAD436DA8928D9202E314F3"><enum>606.</enum><header>Oversight of transition of the housing finance system</header><subsection id="idfc61ab7029254ff8b8b957e72fc9c6a9"><enum>(a)</enum><header>Testimony</header><text>Beginning on the agency transfer date and ending on the system certification date, the Chairperson shall, on an annual basis, appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives to provide testimony on the progress made in carrying out the requirements of this title.</text></subsection><subsection id="idccbaa83389d3474fa35662fd936eb245"><enum>(b)</enum><header>Inspector General report on transition</header><text>Beginning on the agency transfer date and ending on the system certification date, the Inspector General of the Federal Mortgage Insurance Corporation shall, on an annual basis—</text><paragraph id="idda4060b7cb264d5e8e555236e894c9d5"><enum>(1)</enum><text>submit a report to the Corporation and the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives—</text><subparagraph id="id5ef35464fd3c4af49971f63f381a9487"><enum>(A)</enum><text>on the status of the transition to the new housing finance system authorized by this Act;</text></subparagraph><subparagraph id="id84fe185da4db4de79e58834fd0aeea2d"><enum>(B)</enum><text>that includes recommendations to facilitate an orderly transition to the new housing finance system authorized by this Act; and</text></subparagraph><subparagraph id="idf41c04c6500a422e91125d803539d843"><enum>(C)</enum><text>on the impact of various actions required by this Act on borrowers and small mortgage lenders; and</text></subparagraph></paragraph><paragraph id="ida45999732a0148e4936fc6e3baaec886"><enum>(2)</enum><text>appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives to provide testimony on the report required under paragraph (1).</text></paragraph></subsection><subsection id="id3181addf0eec453db2bf1ac0242a3e64"><enum>(c)</enum><header>GAO report on transition</header><paragraph id="id6D3CA3B346514B69B57C0FEFCE894294"><enum>(1)</enum><header>In general</header><text>Not later than 18 months after the system certification date, the Comptroller General of the United States shall conduct a study and submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives reviewing the transition required by this Act.</text></paragraph><paragraph id="id4E3A3DE4BA9147CC889358AF4C834E02"><enum>(2)</enum><header>Contents of study</header><text>In conducting the study required under paragraph (1), the Comptroller General shall review—</text><subparagraph id="id40FF6C81BD0343B1BE1608F85B79C987"><enum>(A)</enum><text>all property, including intellectual property, of the enterprises that may have been sold, transferred, or licensed for value pursuant to this title or any amendment made by this title;</text></subparagraph><subparagraph id="id758C887D890A454CAAA177DD4FAAD16B"><enum>(B)</enum><text>the number and market share of each type of approved entity; and</text></subparagraph><subparagraph id="id8882CAA1C0B94D8BB103288EF6A4C842"><enum>(C)</enum><text>the amount of any taxpayer repayment.</text></subparagraph></paragraph></subsection></section><section commented="no" id="idDB9E90ACC1FA4A9687686BF8694F824E"><enum>607.</enum><header>Authority to establish provisional standards</header><subsection commented="no" id="idced19172f91d40d59ea28a9b98a16a21"><enum>(a)</enum><header>Provisional standards</header><paragraph commented="no" id="id62af0ac9d78843099820bd0334ac34c4"><enum>(1)</enum><header>In general</header><text>Notwithstanding any standard required under subtitle B of title III or section 703, the Corporation may establish provisional standards for the approval of approved entities in order to ensure the sufficient participation of financially sound entities in the housing finance system.</text></paragraph><paragraph commented="no" id="id65ed261045f347f6a17a6e453dc77815"><enum>(2)</enum><header>Period of effectiveness during transition</header><text>The Corporation is authorized to establish provisional standards under paragraph (1) prior to the system certification date and such provisional standards shall—</text><subparagraph commented="no" id="id562B8F3417A449099331F0F95E443041"><enum>(A)</enum><text>be published in the Federal Register for notice and comment; and</text></subparagraph><subparagraph commented="no" id="idEBF5F1F303634688A3B7D053C9168FBD"><enum>(B)</enum><text>remain in effect until the Corporation adopts and publishes final standards for the approval of approved entities pursuant to subtitle B of title III or section 703.</text></subparagraph></paragraph><paragraph commented="no" id="id0603B3ABA98E41F8AEBBB24E2B312C20"><enum>(3)</enum><header>Period of effectiveness during unusual and exigent circumstances</header><text>The Corporation is authorized to establish provisional standards under paragraph (1) during periods when the authority of the Corporation under section 305 is exercised and such provisional standards shall—</text><subparagraph commented="no" id="idCDC940E0C7B746B1BE4FEB52BCB0B14D"><enum>(A)</enum><text>be published in the Federal Register; and</text></subparagraph><subparagraph commented="no" id="idCD4395C7A883468B999E3F8D7D9E567C"><enum>(B)</enum><text>remain in effect until the final date of the timeline established by the Corporation pursuant to section 305(h)(1).</text></subparagraph></paragraph><paragraph commented="no" id="idC38926239E8541A78FEF3AE402EF1638"><enum>(4)</enum><header>Rule of construction</header><text>Nothing in paragraph (2) shall be construed to allow the Corporation to delay or otherwise not implement subsection (c) in the required timeframe.</text></paragraph></subsection><subsection commented="no" id="id7c8ed92c63754604a90625ac3b3c471a"><enum>(b)</enum><header>Oversight of approved entities</header><text>During any period in which a provisional standard is in effect pursuant to subsection (a), the Corporation shall maintain all oversight and enforcement authorities with regard to approved entities in accordance with the requirements and authorities of subtitles B and C of title III and section 703.</text></subsection><subsection commented="no" id="id74dfe02f7b9a49f49eb255e7a7c6e238"><enum>(c)</enum><header>Phase-in of capital standards for approved guarantors</header><paragraph commented="no" id="id6C2DFF2CCEE241BD901FD1EBD192375A"><enum>(1)</enum><header>In general</header><text>The requirement under section 311(g)(1)(A) shall take effect on the date that is 8 years after the date that the Corporation approves the first approved guarantor under this section.</text></paragraph><paragraph commented="no" id="id8F2D894923C14BE0ACECAC595BF23E48"><enum>(2)</enum><header>Phase-in</header><text>Beginning on the date that the Corporation approves the first approved guarantor under this section and ending on the date set forth under paragraph (1), the Corporation shall—</text><subparagraph commented="no" id="idE8E3998B0AC84D229C430C5708E96A75"><enum>(A)</enum><text>require an approved guarantor to maintain an appropriate level of capital necessary to help ensure an orderly transition pursuant to this title; and</text></subparagraph><subparagraph commented="no" id="idC7CF94E6A49E49EAA7A6FBCA53B60931"><enum>(B)</enum><text>increase annually, in equal increments, the required amount of capital to be held by the approved guarantor.</text></subparagraph></paragraph><paragraph id="ide5050fd232bc4302ab7e4a68a5a4768a"><enum>(3)</enum><header>Applicability</header><text>Each capital level required to be held by an approved guarantor under this section, including each annual increase pursuant to paragraph (2)(B), shall only be applicable with respect to new business being guaranteed by an approved guarantor on and after the date each capital level becomes effective.</text></paragraph></subsection><subsection id="ida191a346de0c4127892fad930318c517"><enum>(d)</enum><header>Phase-in of capital standards for multifamily approved guarantors</header><paragraph id="id8190a0c16094495daf14dba1a0f1353d"><enum>(1)</enum><header>In general</header><text>The requirement under section 703(h)(1)(A) shall take effect on the date that is 8 years after the date that the Corporation approves the first multifamily approved guarantor under this section.</text></paragraph><paragraph id="id9f92c3fe396b4a7c8efd687248f4f349"><enum>(2)</enum><header>Phase-in</header><text>Beginning on the date that the Corporation approves the first approved multifamily guarantor under this section and ending on the date set forth under paragraph (1), the Corporation shall—</text><subparagraph id="id1adf3556677f4ba8a0525ff25b6871a8"><enum>(A)</enum><text>require an approved multifamily guarantor to maintain an appropriate level of capital necessary to help ensure an orderly transition pursuant to this title; and</text></subparagraph><subparagraph id="ida911e5c7604a490b8100b21bc27172ee"><enum>(B)</enum><text>increase annually, in equal increments, the required amount of capital to be held by the approved multifamily guarantor.</text></subparagraph></paragraph><paragraph id="idab059b2cb61947a285829e7e0dbff314"><enum>(3)</enum><header>Applicability</header><text>Each capital level required to be held by an approved multifamily guarantor under this section, including each annual increase pursuant to paragraph (2)(B), shall only be applicable with respect to new business being guaranteed by an approved multifamily guarantor on and after the date each capital level becomes effective.</text></paragraph></subsection></section><section commented="no" id="id6CCFAA311FD54BE490EB08F212E5DFF4"><enum>608.</enum><header>Initial fund level for the Mortgage Insurance Fund</header><subsection commented="no" id="idC6016E837E7D47A799459460D5E46D83"><enum>(a)</enum><header>Fund amount on system certification date</header><text>The Corporation shall endeavor to ensure that the Mortgage Insurance Fund established under section 303 attains a reserve ratio of 0.75 percent of the sum of the outstanding principal balance of the covered securities for which insurance is projected to be provided under this Act for the 5-year period beginning on the system certification date.</text></subsection><subsection id="idc03866d0401e4d89a9cfa3764763878f"><enum>(b)</enum><header>Report to Congress on projection</header><text>The projection required under subsection (a) shall be—</text><paragraph id="id1fff60759dba44ec9635313a6e6b94b8"><enum>(1)</enum><text>determined by the Corporation; and</text></paragraph><paragraph id="idfae6bd814e314ad7878cc7b48b4f1a53"><enum>(2)</enum><text>reported to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</text></paragraph></subsection><subsection id="id54877d2175864108962ec0aebe859a9d"><enum>(c)</enum><header>Assessments</header><text>Pursuant to the authorities granted to the Corporation under section 1316(i) of the Safety and Soundness Act, as added by section 405, the amount of funds required to be held by the Mortgage Insurance Fund under subsection (a) shall be acquired through assessments on the enterprises. The assessments required under this subsection shall be in effect for the period beginning on the date of enactment of this Act and ending on the system certification date. The assessments required under this subsection shall be deposited in the Mortgage Insurance Fund.</text></subsection></section><section commented="no" id="idDF4B989E636E4B02BCB793BA43D808EF"><enum>609.</enum><header>GAO report on full privatization of secondary mortgage market</header><subsection commented="no" id="idC71BB92211714C13BF3BF77FD642E607"><enum>(a)</enum><header>GAO report</header><text display-inline="yes-display-inline">Not later than 8 years after the date of enactment of this Act, the Comptroller General of the United States shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the feasibility of transitioning to and creating a fully privatized secondary mortgage market, including recommendations on how to best carry out any displacement of the insurance model established under this Act, and an assessment of the cost of mortgage credit and the impact on the economy if the secondary mortgage market is fully privatized.</text></subsection><subsection commented="no" id="id0BC906675D354804A14E1FF22F0DB159"><enum>(b)</enum><header>Corporation plan</header><text>Not later than 6 months after the date on which the report required under subsection (a) is submitted, the Corporation shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a description of the legislative, administrative, and regulatory actions necessary to implement the recommendations of the report.</text></subsection></section><enum>VII</enum><header>Multifamily</header><section id="ida0291d13b31249c88f326e72ebc0f547"><enum>701.</enum><header>Establishment of multifamily subsidiaries</header><subsection id="id1b717ede2b59439d977d8f0558628717"><enum>(a)</enum><header>Formation and governance of multifamily subsidiaries</header><paragraph id="id826a8cf3db67492ab35ecbe65526a3c5"><enum>(1)</enum><header>Federal National Mortgage Association</header><subparagraph id="idb3e8551aee3b49f8a8aeedd41fa2a67b"><enum>(A)</enum><header>Multifamily subsidiary plan</header><text>The FHFA Director, in consultation with the Secretary of the Treasury, shall direct the Federal National Mortgage Association to develop a plan, not later than 180 days after the date of enactment of this Act, to establish a multifamily subsidiary for purposes of expeditiously meeting the multifamily market minimum criteria required under section 601.</text></subparagraph><subparagraph id="id9235e6a5f7f9487389091c770cddc871"><enum>(B)</enum><header>Establishment of multifamily subsidiary</header><text>Pursuant to section 604, the Federal Housing Finance Agency shall direct the Federal National Mortgage Association to establish a multifamily subsidiary not later than 1 year after the date of enactment of this Act.</text></subparagraph></paragraph><paragraph id="id5ac02417f9924c58928d068ca011af39"><enum>(2)</enum><header>Federal Home Loan Mortgage Corporation</header><subparagraph id="idcae943144f474b22abbf3474c5cc60d6"><enum>(A)</enum><header>Multifamily subsidiary plan</header><text>The FHFA Director, in consultation with the Secretary of the Treasury, shall direct the Federal Home Loan Mortgage Corporation to develop a plan, not later than 180 days after the date of enactment of this Act, to establish a multifamily subsidiary for purposes of expeditiously meeting the multifamily market minimum criteria required under section 601.</text></subparagraph><subparagraph id="idff6d277002c943a4b183c3f717ef8473"><enum>(B)</enum><header>Establishment of multifamily subsidiary</header><text>Pursuant to section 604, the Federal Housing Finance Agency shall direct the Federal Home Loan Mortgage Corporation to establish a multifamily subsidiary not later than 1 year after the date of enactment of this Act.</text></subparagraph></paragraph></subsection><subsection id="id2bc4a206ba164275bd0ed9c5f6e4f79f"><enum>(b)</enum><header>Transfer of functions</header><paragraph id="id2e7ef75b5c5a49b8af1cec32de1ee3ce"><enum>(1)</enum><header>Fannie Mae multifamily subsidiary</header><subparagraph id="id1008853fcec4434ea650ade45d48ecd8"><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)(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="id161e9178e64f4363a33b25a014fda311"><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 Federal Housing Finance Agency may determine, subject to the approval right of the Secretary of the Treasury in the Senior Preferred Stock Purchase Agreement, any capital necessary to ensure that the multifamily subsidiary established under subsection (a)(1)(B) has, in the determination of the FHFA Director, sufficient capital to carry out its multifamily business, including the ability to obtain warehouse lines of credit.</text></subparagraph><subparagraph id="idd443d1cad33d4df193ce58981bfa306e"><enum>(C)</enum><header>Ensuring continuation of ongoing operation of multifamily business</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><clause id="ided6e39fe5ded4d14b731cf50e2de888b"><enum>(i)</enum><text>the Delegated Underwriting and Servicing Lender Program established by the Federal National Mortgage Association;</text></clause><clause id="id6271da6f65514e7e9607500720f44d2b"><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></clause><clause id="idd5c70bc457f54d11b0913dd3d200c995"><enum>(iii)</enum><text>the provisions of this title.</text></clause></subparagraph></paragraph><paragraph id="ideaf81ff4a4f541bab312a7c40be4d545"><enum>(2)</enum><header>Freddie Mac multifamily subsidiary</header><subparagraph id="id4bab88621d4f4878ad24dd353d7e2430"><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 K Series Structured Pass-Through Certificates originated and offered under the Program Plus Lender Program and other intellectual property, platforms, technology, or any other object or service of the Federal Home Loan Mortgage Corporation necessary to the support, maintenance, and operation of the multifamily business of the Federal Home Loan Mortgage Corporation shall be transferred and contributed, without cost, to the multifamily subsidiary.</text></subparagraph><subparagraph id="idf0410b3f39a141678ed8b829007a421c"><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 Federal Housing Finance Agency may determine, subject to the approval right of the Secretary of the Treasury in the Senior Preferred Stock Purchase Agreement, any capital necessary to ensure that the multifamily subsidiary established under subsection (a)(2)(B) has, in the determination of the FHFA Director, sufficient capital to carry out its multifamily business, including the ability to obtain warehouse lines of credit.</text></subparagraph><subparagraph id="idc6c53c84256f4f0b9c35422caf4e1f16"><enum>(C)</enum><header>Ensuring continuation of ongoing operation of multifamily business</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><clause id="id8f9bde088d76415e8ca8705eb3f317c9"><enum>(i)</enum><text>the K Series Structured Pass-Through Certificates originated and offered under the Program Plus Lender Program established by the Federal Home Loan Mortgage Corporation;</text></clause><clause id="id044e38a133d647b9880f9247285ef6ef"><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></clause><clause id="id12f41f9138154314bf1a6fee237989d6"><enum>(iii)</enum><text>the provisions of this title.</text></clause></subparagraph></paragraph></subsection><subsection id="idace9c9b8fb434eac83216a9b9a783a03"><enum>(c)</enum><header>Multifamily subsidiaries</header><paragraph id="idf92e3fa74be64ef5852b31fef1c1db5a"><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="id25349a80f2c84543aa83120252f51d2b"><enum>(A)</enum><text>aggregate mortgage loans for pooled securities executions;</text></subparagraph><subparagraph id="idba9f58a8fd5b47c58c3867274e7c2cd2"><enum>(B)</enum><text>implement pilot mortgage loan programs and other risk-sharing transactions and product modification testing;</text></subparagraph><subparagraph id="idb18fd141785344ff82748c4aa01034b5"><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="id94255a1d6a5749c6b2245279ad10241e"><enum>(D)</enum><text>perform additional activities as may be established by the Corporation for the purpose of facilitating the continuation of existing multifamily activities.</text></subparagraph></paragraph><paragraph id="id985ecefb7986457099013aec77bcc113"><enum>(2)</enum><header>Portfolio reduction applicability</header><text>For purposes of expeditiously meeting the multifamily market minimum criteria required under section 601, the multifamily subsidiaries established under subsection (a) shall not be subject to the portfolio reduction required under section 605.</text></paragraph></subsection></section><section id="id471256378A6E40BD9DB6377D9B53CA4C"><enum>702.</enum><header>Disposition of multifamily businesses</header><subsection id="idbc2e47ec185a4276b9a124d0f9e83dd1"><enum>(a)</enum><header>Authority to manage disposition of multifamily businesses</header><text>Notwithstanding any provision of title VI or any other provision of law, the Federal Housing Finance Agency may, on or before the system certification date, manage the sale, transfer, or disposition for value of property, including intellectual property, technology, platforms, and legacy systems, infrastructure and processes of an enterprise relating to the operation and maintenance of the multifamily business of an enterprise.</text></subsection><subsection id="idaf6dce063e9e4d4899325c45946bd8f3"><enum>(b)</enum><header>Required establishment of well-functioning multifamily covered security market</header><text>In exercising the authority in subsection (a), the Federal Housing Finance Agency shall manage any disposition of the multifamily business of an enterprise in a manner consistent with—</text><paragraph id="idb2e553b525a64a24b5c55b4a07b2d9dc"><enum>(1)</enum><text>the establishment of a well-functioning multifamily covered security market;</text></paragraph><paragraph commented="no" id="id4af2e907254049219195e9a69416d270"><enum>(2)</enum><text>the provision of broad access to multifamily financing; and</text></paragraph><paragraph id="id1d03014131c94cc58f03ddc97569504e"><enum>(3)</enum><text>facilitating competition in the multifamily covered security market by—</text><subparagraph id="id47e3cdf88e8c4a6dbb5168a996f18a40"><enum>(A)</enum><text>providing open access to performance information on the legacy multifamily business of an enterprise;</text></subparagraph><subparagraph id="id5f97bebe8eb8482abaa164b27aeade47"><enum>(B)</enum><text>providing for reasonable licensing of the multifamily proprietary systems of an enterprise; and</text></subparagraph><subparagraph id="id678153f9db124c0c98f6bce2633a5a9c"><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 id="id9A993F3BB55648F7880FA7308033AE0B"><enum>703.</enum><header>Approval and supervision of multifamily guarantors</header><subsection id="id838b459fd1344dca93bb676d55c5224b"><enum>(a)</enum><header>Standards for approval of multifamily guarantors</header><paragraph id="idc0adb22c909a4467b07f9ff9aaadcda9"><enum>(1)</enum><header>In general</header><text>The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of multifamily guarantors to—</text><subparagraph id="idb1f7307ce1f140cc83a363c9774010d9"><enum>(A)</enum><text>issue multifamily covered securities; and</text></subparagraph><subparagraph id="idd1d904663d644ee1a79b13a01e08b9fb"><enum>(B)</enum><text>guarantee the timely payment of principal and interest on multifamily covered securities collateralized by eligible multifamily mortgage loans and insured by the Corporation.</text></subparagraph></paragraph><paragraph id="id77210a129aea466a89a82bea324487ac"><enum>(2)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include—</text><subparagraph id="id2e5866185127407ebe54980659d7a1cb"><enum>(A)</enum><text>the financial history and condition of the multifamily guarantor;</text></subparagraph><subparagraph id="ida1800f60063941d894ed4347fc7e115a"><enum>(B)</enum><text>a requirement that the multifamily guarantor maintain capital levels as defined by the Corporation, pursuant to subsection (h);</text></subparagraph><subparagraph id="id22c7f24eb441405c93bc153324a571b2"><enum>(C)</enum><text>the capability of the management of the multifamily guarantor;</text></subparagraph><subparagraph id="id7fe31bf073e546a5a805c6825e00c666"><enum>(D)</enum><text>the general character and fitness of the officers and directors of the multifamily guarantor, including the compliance history of the multifamily guarantor’s officers and directors with Federal and State laws and the rules and regulations promulgated by self-regulatory organizations (as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(26)</external-xref>), as applicable;</text></subparagraph><subparagraph id="ideed6188015d2411bb99c5d379ebfdaaa"><enum>(E)</enum><text>the risk presented by the multifamily guarantor to the Mortgage Insurance Fund;</text></subparagraph><subparagraph id="idbdb56683b3cd4b189e81ea930b0b4777"><enum>(F)</enum><text>the adequacy of insurance and fidelity coverage of the multifamily guarantor;</text></subparagraph><subparagraph id="id345e7016768a41f78e5609a5f184a714"><enum>(G)</enum><text>the ability of the multifamily guarantor to—</text><clause id="id072ba17d92494fd68c46e9925ab03c9d"><enum>(i)</enum><text>ensure that eligible multifamily mortgage loans that collateralize a multifamily covered security insured under this Act are originated in compliance with the requirements of this Act;</text></clause><clause id="id8ccae92826bf4d7d90746543d8c6e9f7"><enum>(ii)</enum><text>oversee multifamily servicers and specialty servicers conducting servicing activities on eligible multifamily mortgage loans, which may be governed under the terms of seller-servicer guides in effect at either of the enterprises on the date of enactment of this Act; and</text></clause><clause id="idec76ac5a79b446b188f6788c9fc5831c"><enum>(iii)</enum><text>oversee counterparties in credit risk-sharing transactions;</text></clause></subparagraph><subparagraph id="id6CF70D11A4AA43A69F2493E5E2CDF718"><enum>(H)</enum><text>the capacity of the multifamily guarantor to take the first loss position, pari passu position, or transfer investment risk and credit risk to private market holders;</text></subparagraph><subparagraph commented="no" id="ide30ba5357754438c810caf95d841415e"><enum>(I)</enum><text>that the multifamily guarantor has the capacity to guarantee eligible multifamily mortgage loans in a manner that furthers the purposes of the Corporation as described in section 201(b)(5);</text></subparagraph><subparagraph id="id9598629cf93a46b58b2f1d5e8923e2b1"><enum>(J)</enum><text>a requirement that the multifamily guarantor submit audited financial statements to the Corporation;</text></subparagraph><subparagraph id="id3AB8F50A77634473A09595F3827FBE4A"><enum>(K)</enum><text>that the multifamily guarantor does not originate eligible multifamily mortgage loans and is not an affiliate of a person that actively engages in the business of originating eligible multifamily mortgage loans; and</text></subparagraph><subparagraph id="id9c4cc1b1a5084cf7a3e1ceceacf06ec4"><enum>(L)</enum><text>a requirement that the multifamily guarantor has the capacity to meet the requirement of section 704.</text></subparagraph></paragraph><paragraph id="idfca3a6d8379841ab9a6e6f8d5986514b"><enum>(3)</enum><header>Consultation and coordination</header><text>To promote consistency and minimize regulatory conflict, the Corporation shall consult and coordinate with appropriate Federal and State regulators and officials when developing standards pursuant to this subsection.</text></paragraph></subsection><subsection id="ide571440e0c99497f957776b103b36bbb"><enum>(b)</enum><header>Application and approval</header><paragraph id="id25d34b6fb80b4a1b992c2b1a3089397c"><enum>(1)</enum><header>Application process</header><subparagraph id="id1a44c6e0f409481f980baf0478149dd1"><enum>(A)</enum><header>In general</header><text>The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of a multifamily guarantor under this section.</text></subparagraph><subparagraph id="idbf33e85230eb479bbf6d2b5a87689927"><enum>(B)</enum><header>Application review</header><text>The Corporation shall establish internal timelines for its processing of an application under this section, including timelines for any action to approve or to deny an application under this section.</text></subparagraph><subparagraph id="id968df31acc03492ab99dedacdf7da570"><enum>(C)</enum><header>Prohibition on control by insured depository institutions or affiliates of insured depository institutions</header><clause id="id6939d652cff646d98654783b08af36e2"><enum>(i)</enum><header>In general</header><text>It shall be unlawful for an insured depository institution or an affiliate of an insured depository institution to control an approved multifamily guarantor.</text></clause><clause id="idf54287b73c52448a9ddd89f2936a4f02"><enum>(ii)</enum><header>Rule of construction regarding control</header><text>For purposes of this subparagraph, any insured depository institution or affiliate of an insured depository institution has control over an approved multifamily guarantor if the company directly or indirectly or acting through 1 or more other persons owns, controls, or has power to vote 10 percent or more of any class of voting shares of the approved multifamily guarantor.</text></clause></subparagraph><subparagraph id="id3e4663371147461380d017ba3bfe0484"><enum>(D)</enum><header>Expedited application process</header><text>The Corporation may establish an expedited application process for an applicant applying to become an approved multifamily guarantor, provided that any such applicant—</text><clause id="id3606E6B91EFB4D6D9B2195449772BA41"><enum>(i)</enum><text>proposes to use a credit risk-sharing mechanism approved under subsection (c); and</text></clause><clause id="idA54E4A8C28C4490A9A6853A71AAD091B"><enum>(ii)</enum><text>otherwise meets the requirements of this section.</text></clause></subparagraph></paragraph><paragraph id="id81e4329314b24c22b7003ab77a3df3cc"><enum>(2)</enum><header>Approval</header><text>The Corporation may approve any application made pursuant to paragraph (1), provided the multifamily guarantor meets the standards established under subsection (a).</text></paragraph><paragraph id="id441752CBE88B4187A711ADAAA1F2CBF4"><enum>(3)</enum><header>Denial</header><text>The Corporation shall have the authority to deny any application made pursuant to paragraph (1) if an officer or director of the multifamily guarantor has, at any time prior to the date of the approval of such application, been—</text><subparagraph id="id04D855B86CAF4CFEAE93423B56771C43"><enum>(A)</enum><text>subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(39)</external-xref>); or</text></subparagraph><subparagraph id="id63BF09FDC1244C56B22B572DD0A0BA96"><enum>(B)</enum><text>suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(g)</external-xref>), prohibited from certain action pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(e)</external-xref>), subject to an action resulting in a written agreement or other written statement under section 8(u)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(u)(1)</external-xref>), for which a violation may be enforced by an appropriate Federal banking agency, or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subparagraph></paragraph><paragraph id="idad045b18e7a146ea828361b660299f66"><enum>(4)</enum><header>Notice and publication</header><text>The Corporation shall—</text><subparagraph id="id0b5aa1ab9aa34a3c8e4e9831dc5eab1f"><enum>(A)</enum><text>provide prompt notice to a multifamily guarantor of the approval or denial of any application of the multifamily guarantor to become an approved multifamily guarantor under this section;</text></subparagraph><subparagraph id="id31f0dceb2dc44f419fff7db5fa9847ae"><enum>(B)</enum><text>publish a notice in the Federal Register upon approval of any multifamily guarantor; and</text></subparagraph><subparagraph id="id567a54274b6a48e2b577a6b5e0b7aa03"><enum>(C)</enum><text>maintain an updated list of approved multifamily guarantors on the website of the Corporation.</text></subparagraph></paragraph></subsection><subsection id="id019510914be34e9caf4f2c7cb69fafd3"><enum>(c)</enum><header>Credit risk-sharing mechanisms</header><paragraph id="id23f1bc73cc6f4a92946ef90384cadef4"><enum>(1)</enum><header>Consideration and approval</header><text>The Corporation shall—</text><subparagraph id="id9aa27091c6dc41adbe828b568de894b1"><enum>(A)</enum><text>consider and approve credit risk-sharing mechanisms that may be employed by an approved multifamily guarantor to manage the credit risk related to guarantees provided for multifamily covered securities; and</text></subparagraph><subparagraph id="idf1ae0c933a674dbd9ae774740761292a"><enum>(B)</enum><text>approve any credit risk-sharing mechanism undertaken by an enterprise as of the date of enactment of this Act, including—</text><clause id="id6eb1270bf0ff437b8b6cd165c206e5f3"><enum>(i)</enum><text>the Delegated Underwriting and Servicing Lender Program established by the Federal National Mortgage Association;</text></clause><clause id="id94e4c7fafcdf49e6b01c10234cdbd288"><enum>(ii)</enum><text>the K Series Structured Pass-Through Certificates originated and offered under the Program Plus Lender Program established by the Federal Home Loan Mortgage Corporation;</text></clause><clause id="id5235d7d5e5764295a0387d7cfbd52cc7"><enum>(iii)</enum><text>any other program, activity, or contractual agreement of an enterprise that supports the enterprise's provision of liquidity to the multifamily housing market; and</text></clause><clause id="ida012ab8f58c4422ca78e7b5053e96232"><enum>(iv)</enum><text>any credit risk-sharing mechanism based on the mechanisms described in clause (i), (ii), or (iii), with modifications approved by the Corporation.</text></clause></subparagraph></paragraph><paragraph id="id71d46523730c4829a3e472599c2465dc"><enum>(2)</enum><header>Rule of Construction</header><text>Nothing in paragraph (1) shall be construed to—</text><subparagraph id="idC77327B114954A578D2B380C6680A708"><enum>(A)</enum><text>prevent private market holders from taking a first loss position on multifamily covered securities guaranteed by an approved multifamily guarantor; or</text></subparagraph><subparagraph id="idD1344446809646A4993CC3CB447FFD10"><enum>(B)</enum><text>limit an approved multifamily guarantor from engaging in other forms of risk-sharing using mechanisms that have not been considered or approved by the Corporation.</text></subparagraph></paragraph><paragraph id="ide730bfa8a0044899a3f7749765406355"><enum>(3)</enum><header>Report</header><text>Each report required by section 302(b)(5) shall include a description of each credit risk-sharing mechanism approved by the Corporation pursuant to this subsection.</text></paragraph><paragraph id="idBDC10B65F7A8423E9D482C279F657230"><enum>(4)</enum><header>Notice and publication</header><text>The Corporation shall—</text><subparagraph id="idCB92EF13D9AD4C77802B99BD57D13011"><enum>(A)</enum><text>provide prompt notice to any person seeking approval for a credit risk-sharing mechanism of the approval or denial of that credit risk-sharing mechanism under this subsection; and</text></subparagraph><subparagraph id="id50957A26FF284722BF3043404A0A1E5C"><enum>(B)</enum><text>make available updated information regarding approved credit risk-sharing mechanisms on the website of the Corporation.</text></subparagraph></paragraph><paragraph id="idd7f254d37e7047769cb66ea1d17b3f68"><enum>(5)</enum><header>Applicability of the Commodity Exchange Act and Securities Act of 1933</header><subparagraph id="ide98ff608b5c447f0be5976ee0983fcdc"><enum>(A)</enum><header>Exemption from the Commodity Exchange Act; prior consultation required</header><clause id="id4cae9b358bb54318ae5af66fd7879e68"><enum>(i)</enum><header>Exemption</header><text>No counterparty that enters into a swap, as that term is defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>), for purposes of structuring any credit risk-sharing mechanism that is approved by the Corporation pursuant to this section, which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any multifamily covered security insured in accordance with section 303 or section 305, shall be deemed, by reason of such swap transaction, to be a commodity pool, as that term is defined in section 1a of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1a">7 U.S.C. 1a</external-xref>).</text></clause><clause id="idc9b8997f23164730a1715f5348dd1ba0"><enum>(ii)</enum><header>Prior consultation required</header><text>Before approving any credit risk-sharing mechanism that would be exempt from the Commodity Exchange Act pursuant to subparagraph (A), the Corporation shall consult with the Commodity Futures Trading Commission.</text></clause></subparagraph><subparagraph id="id833e938dd8ec4278a195d3252c23fcc1"><enum>(B)</enum><header>Exemption from section 27B of the Securities Act of 1933; prior consultation required</header><clause id="ida2aa8a3914784155ac60be11817e3c70"><enum>(i)</enum><header>Exemption</header><text>Any credit risk-sharing mechanism that is approved by the Corporation pursuant to this section, which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any multifamily covered security insured in accordance with section 303 or section 305, shall be exempt from section 27B of the Securities Act of 1933 (15 U.S.C. 77z-2a).</text></clause><clause id="ide0bd358596984aa8a31290f2793e6c95"><enum>(ii)</enum><header>Prior consultation required</header><text>Before approving any credit risk-sharing mechanism that would be exempt from section 27B of the Securities Act of 1933 pursuant to subparagraph (A), the Corporation shall consult with the Securities and Exchange Commission.</text></clause></subparagraph></paragraph></subsection><subsection id="idE8DBCF0180D943B2B45E4D886A44B580"><enum>(d)</enum><header>Requirement to maintain approval status</header><paragraph id="id7afd219de1144ad29eb11a0dcd545344"><enum>(1)</enum><header>Authority to issue order</header><text>If the Corporation determines that an approved multifamily guarantor approved under this section no longer meets the standards for such approval or violates a requirement under this Act, including any standard, regulation, or order promulgated in accordance with this Act, the Corporation may—</text><subparagraph id="id33d6e35ef3de4a429027304dfcf04857"><enum>(A)</enum><text>suspend or revoke the approved status of the approved multifamily guarantor; or</text></subparagraph><subparagraph id="id30797bd9b2d145f2ab294a03e84a2727"><enum>(B)</enum><text>take any other action with respect to such approved multifamily guarantor as may be authorized under this Act.</text></subparagraph></paragraph><paragraph id="idd0374ef8437a4575b9b772f7d9c847e1"><enum>(2)</enum><header>Rule of construction</header><text>The suspension or revocation of the approved status of an approved multifamily guarantor under this section shall have no effect on the status as a multifamily covered security of any multifamily covered security collateralized by eligible multifamily mortgage loans with which the approved multifamily guarantor contracted prior to the suspension or revocation.</text></paragraph><paragraph id="ide5798dfb7a1f4e1a922298f2f03c980d"><enum>(3)</enum><header>Publication</header><text>The Corporation shall—</text><subparagraph id="ida047755c3aac4c97803187810166275c"><enum>(A)</enum><text>promptly publish a notice in the Federal Register upon suspension or revocation of the approval of any approved multifamily guarantor; and</text></subparagraph><subparagraph id="id6f08969fc63b4b14bfbfd321994cc4cf"><enum>(B)</enum><text>maintain an updated list of such approved multifamily guarantors on the website of the Corporation.</text></subparagraph></paragraph><paragraph id="id12b6bd672fff44aba2b237bd1870f0b8"><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="id518c8b2e42f14e36bf25a0a483189802"><enum>(e)</enum><header>Prudential standards for supervision</header><text>The Corporation shall prescribe prudential standards for approved multifamily guarantors in order to—</text><paragraph id="id7335E14851C44DEA8B2B51D491B8D2D3"><enum>(1)</enum><text>ensure—</text><subparagraph id="idE8ACE86030E54AFAB31AA3BE170B4E48"><enum>(A)</enum><text>the safety and soundness of approved multifamily guarantors; and</text></subparagraph><subparagraph id="id9421C474D6174D549A269F94068814C8"><enum>(B)</enum><text>the maintenance of approval standards by approved multifamily guarantors; and</text></subparagraph></paragraph><paragraph id="id7D849B3FA8F24B538A1886FD4BB41C84"><enum>(2)</enum><text>minimize the risk presented to the Mortgage Insurance Fund.</text></paragraph></subsection><subsection id="idec96b80e50544fa6833e67fc6a19cdbf"><enum>(f)</enum><header>Reports and examinations</header><text>For purposes of determining whether an approved multifamily guarantor is fulfilling the requirements under this Act, the Corporation shall have the authority to require reports from and examine an approved multifamily guarantor, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsection (a) of section 9 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1819">12 U.S.C. 1819</external-xref>).</text></subsection><subsection id="id0e62374827f44475be7226bdc8babb78"><enum>(g)</enum><header>Enforcement</header><text>The Corporation shall have the authority to enforce the provisions of this Act with respect to an approved multifamily guarantor, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under the provisions of subsections (b) through (n) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text></subsection><subsection id="idfafcc620ba2e4cd0a8be85d36c0a33aa"><enum>(h)</enum><header>Capital standards</header><paragraph id="idbdc47f7e0b404e3bad2900ca1c37944d"><enum>(1)</enum><header>In general</header><text>Pursuant to the requirement to establish capital and related solvency standards under section 309(b), the Corporation shall establish standards for approved multifamily guarantors as follows:</text><subparagraph id="id2D1D09DA8C824D07B3181E1AFCC86673"><enum>(A)</enum><header>Guarantor activities</header><text>The capital standard for eligible multifamily mortgage loans that collateralize multifamily covered securities insured by the Corporation shall require an approved multifamily guarantor to hold 10 percent capital.</text></subparagraph><subparagraph id="id948AD7990E784A17B21C4B3B3BBD6380"><enum>(B)</enum><header>Aggregation activities</header><text>An approved multifamily guarantor shall hold capital in an amount comparable to that which is required to be held by insured depository institutions and their affiliates with respect to their applicable aggregating activities.</text></subparagraph><subparagraph id="id30C8FFF030FB41F3842427F9C7F0AD0A"><enum>(C)</enum><header>Solvency levels</header><text>An approved multifamily guarantor shall maintain solvency levels adequate for the approved multifamily guarantor to withstand losses that might be incurred by the approved multifamily guarantor in a period of economic stress, including national and regional multifamily housing price declines, such as those observed during moderate to severe recessions in the United States.</text></subparagraph></paragraph><paragraph id="id6a85c662ca064bbf9a3cc1f59e77def6"><enum>(2)</enum><header>Risk-sharing considerations</header><subparagraph id="idC455EDE8F2A247649EF236C1246D04F8"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1)(A), the Corporation shall consider the extent, amount, and form of risk-sharing and risk mitigation through the use by approved multifamily guarantors of credit risk-sharing mechanisms approved pursuant to subsection (c). The Corporation shall allow such risk-sharing and risk mitigation to fulfill required amounts of capital to be held under paragraph (1)(A) while maintaining an appropriate structure of capital as determined by the Corporation.</text></subparagraph><subparagraph id="id6bd1dacb474f4ab2aa8908d6376a2963"><enum>(B)</enum><header>Equivalent treatment</header><text>For purposes of paragraph (2)(A), the Corporation shall seek to ensure equivalent capital treatment between approved credit risk-sharing mechanisms approved under subsection (c) with similar performance histories.</text></subparagraph></paragraph><paragraph id="id0E4FDFE14D0B4022A58B070012AC6E0F"><enum>(3)</enum><header>Other consideration</header><text>To reflect the differences between single-family and multifamily businesses, the capital standards established under paragraph (1)(A) may differ from the capital standards established under section 311 for approved guarantors.</text></paragraph><paragraph id="idd68d35b2ccaa4c5eaec8ee164e37c6a4"><enum>(4)</enum><header>Stress tests</header><text>The Corporation shall conduct appropriate stress tests of each approved multifamily guarantor that has total assets of more than $10,000,000,000, provided that such stress tests shall be—</text><subparagraph id="id28E9D9374C16409C90BBE793B0F7B97E"><enum>(A)</enum><text>specifically tailored to the business model of the approved multifamily guarantor; and</text></subparagraph><subparagraph id="id2A564594D7EE483688C96D91E7E028BB"><enum>(B)</enum><text>utilized to—</text><clause id="id1FF14D6972694178BAF764B464280B49"><enum>(i)</enum><text>ensure the safety and soundness of the approved multifamily guarantor; and</text></clause><clause id="id847863ECF72143FBA5C9F4964D252703"><enum>(ii)</enum><text>minimize the risk the approved multifamily guarantor may present to the Mortgage Insurance Fund.</text></clause></subparagraph></paragraph></subsection><subsection id="id1275742954E44FB1B974EA26B6AAC61F"><enum>(i)</enum><header>Resolution authority for failing multifamily guarantors</header><paragraph id="id09C451063F234B61934431EC6EFA2588"><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 Corporation shall—</text><subparagraph id="id3ff05577287d430fba05f68ee806816d"><enum>(A)</enum><text>have the authority to act, in the same manner and to the same extent, with respect to an approved multifamily guarantor as the Federal Deposit Insurance Corporation has with respect to an insured depository institution under subsections (c) through (s) of section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821), section 12 of the Federal Deposit Insurance Act (<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 approved multifamily guarantor, as may be necessary to properly exercise such authority under this subsection;</text></subparagraph><subparagraph id="id1de768f23fa4439eb08cd03261e1eeba"><enum>(B)</enum><text>in carrying out any authority provided in subparagraph (A), act, in the same manner and to the same extent, with respect to the Mortgage Insurance Fund as the Federal Deposit Insurance Corporation may act with respect to the Deposit Insurance Fund under the provisions of the Federal Deposit Insurance Act set forth in subparagraph (A);</text></subparagraph><subparagraph id="idC4E385F8E0D641A18842269AB2DB288F"><enum>(C)</enum><text>prescribe regulations governing the applicable rights, duties, and obligations of an approved multifamily guarantor placed into resolution under this subsection, its creditors, counterparties, and other persons, as the Corporation deems necessary to properly exercise the authority provided in subparagraph (A);</text></subparagraph><subparagraph id="idf6edaeb8c6d949b38377c8deffe1e3c2"><enum>(D)</enum><text>consistent with the authorities provided in subparagraph (A), immediately place an insolvent approved multifamily guarantor into receivership; and</text></subparagraph><subparagraph id="idD017B0F6021840EEAF256049184ADE8E"><enum>(E)</enum><text>upon placing an approved multifamily guarantor into receivership, treat multifamily covered securities insured by the Corporation under section 303 in the same manner as the Federal Deposit Insurance Corporation treats deposit liabilities under section 11(d)(11)(A)(ii) of the Federal Deposit Insurance Act and insured deposits under section 11(f) of the Federal Deposit Insurance Act, where the Corporation shall have the same right of subrogation as the Federal Deposit Insurance Corporation has under section 11(g) of the Federal Deposit Insurance Act.</text></subparagraph></paragraph><paragraph id="id3494B441A13B4DA9969F3F2B6877B1D9"><enum>(2)</enum><header>Least-cost resolution required</header><text>The Corporation may not exercise any authority under paragraph (1) with respect to any approved multifamily guarantor unless the total amount of the expenditures by the Corporation and obligations incurred by the Corporation in connection with the exercise of any such authority with respect to such approved multifamily guarantor is the least costly to the Mortgage Insurance Fund, consistent with the least cost approach specified in the Federal Deposit Insurance Act (<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 the Corporation's obligations under this Act and expeditiously concluding its resolution activities, subject to section 13 of the Federal Deposit Insurance Act where the Corporation and the Board of Directors shall have the same authority as the Federal Deposit Insurance Corporation and the Federal Deposit Insurance Corporation’s board of directors.</text></paragraph><paragraph id="id784b64ce0ece425f9050e7bcf540b2b5"><enum>(3)</enum><header>Taxpayer protection</header><text>The Corporation, in carrying out any authority provided in this subsection, shall prescribe regulations to ensure that any amounts owed to the United States, unless the United States agrees or consents otherwise, shall have priority following administrative expenses of the receiver when satisfying unsecured claims against an approved multifamily guarantor, or the receiver therefor, that are proven to the satisfaction of the receiver.</text></paragraph></subsection><subsection id="idc209b07aa6ee4789a0252e224f77772b"><enum>(j)</enum><header>Hearing</header><text>Upon notice of denial of an application for approval under subsection (b) or upon a notice of suspension or revocation of the approved status of an approved multifamily guarantor under subsection (d), the applicant or approved multifamily guarantor shall be afforded a hearing under subsection (h) of section 8 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(h)</external-xref>), in the same manner and to the same extent as if the Corporation were the appropriate Federal banking agency, provided that the approved multifamily guarantor submits a request to the Corporation for a hearing not later than 10 days after the date on which the notice is published under subsection (b)(3) or (d)(3).</text></subsection><subsection id="id255ac49f418b4c7797d7eb9f59729259"><enum>(k)</enum><header>Prohibited activity</header><text>An approved multifamily guarantor may not—</text><paragraph id="id4c7e6128bef942deba65ab8ae63a58bb"><enum>(1)</enum><text>originate eligible multifamily mortgage loans; or</text></paragraph><paragraph id="id91d07b35f7804fddb34822ee69c79023"><enum>(2)</enum><text>be an affiliate of a person that actively engages in the business of originating eligible multifamily mortgage loans.</text></paragraph></subsection><subsection id="idfb4a6e30b17e431586930d798e9c4aa5"><enum>(l)</enum><header>Guarantors required to pay claims</header><text>Subject to such standards as the Corporation may provide, an approved multifamily guarantor may not for any reason withhold payment of funds that would ensure holders of multifamily covered securities receive timely payment of principal and interest on multifamily covered securities. The Corporation shall by regulation develop a process for the mediation and resolution of disputed payment amounts.</text></subsection></section><section id="id1419A8B9E0FE4C5683F9B5B63B10867D"><enum>704.</enum><header>Multifamily housing requirement</header><subsection id="id0A03D671F46845B6B4FDC94F3430AD38"><enum>(a)</enum><header>In general</header><text>Each approved multifamily guarantor shall ensure, during each calendar year, that at least 60 percent of the rental housing units which are contained in the eligible multifamily mortgage loans that collateralize all multifamily covered securities guaranteed by each such approved multifamily guarantor during the previous 24-month period were, at the time of origination, affordable to low-income families.</text></subsection><subsection id="id633bf69a1cbf4dc085c407f822c51183"><enum>(b)</enum><header>Determination of affordability of rental housing units</header><text>For purposes of subsection (a), the affordability of rental housing units contained in an eligible multifamily mortgage loan shall be determined at the time of loan commitment by using—</text><paragraph id="id57e8710a3819495087e459b013250832"><enum>(1)</enum><text>the most recent rent roll for an occupied property; or</text></paragraph><paragraph id="id4be189e1bdd541de8ebb1c5f18448b3e"><enum>(2)</enum><text>in the case of rental housing units that are newly constructed or substantially rehabilitated, a final pro-forma rent roll.</text></paragraph></subsection><subsection id="id1c6fcf6f1f014d80ac3e84b0b874932d"><enum>(c)</enum><header>Determination of compliance</header><text>The Corporation shall determine, during each calendar year, whether each approved multifamily guarantor has complied with the requirement under subsection (a).</text></subsection><subsection id="id8036D5E57C8D46EA8241F4AEA9A9065D"><enum>(d)</enum><header>Suspension or adjustment</header><paragraph id="id1FAC2427AE674F4996C1E96BC50389B0"><enum>(1)</enum><header>In general</header><text>The Corporation may suspend or adjust the requirement under subsection (a) for an approved multifamily guarantor or guarantors—</text><subparagraph id="idF786419086C34EFEBC6320B91D432300"><enum>(A)</enum><text>during a period of unusual and exigent market conditions in the multifamily housing market as determined pursuant to section 305; or</text></subparagraph><subparagraph id="idF9AE921E2F1D4D31B1380D2E9C6FC8FB"><enum>(B)</enum><text>either—</text><clause id="id9B90E8BA499C466D9F215F0CCD1E3F1F"><enum>(i)</enum><text>pursuant to information available to the Corporation demonstrating adverse market conditions in the multifamily housing market; or</text></clause><clause id="id3768B7D238CE4507817FB3DECFE12339"><enum>(ii)</enum><text>pursuant to a written request to suspend or adjust the requirement under subsection (a) made by an approved multifamily guarantor, which the Corporation may grant in whole or in part.</text></clause></subparagraph></paragraph><paragraph id="id41A1BE899F0F4A98BF27A78F3F54B451"><enum>(2)</enum><header>Criteria for suspension or adjustment</header><text>The Corporation may suspend or adjust the requirement under subsection (a) pursuant to paragraph (1)(B) only if—</text><subparagraph id="id5DB37A2242F84A3885F417A1BD17B594"><enum>(A)</enum><text>market and economic conditions require such an action; or</text></subparagraph><subparagraph id="idB412DBCD3EB24364A613E326ED431D00"><enum>(B)</enum><text>efforts to meet the requirement under subsection (a) would result in—</text><clause id="id3116FDDAD2F244228603DE22D1AE3385"><enum>(i)</enum><text>the constraint of liquidity in certain market segments;</text></clause><clause id="id6FAAEFA543DB4A7089D6EBF49B079670"><enum>(ii)</enum><text>over-investment in certain market segments; or</text></clause><clause id="id47197EFF624E4CC0B1B18E4E6F8C18D7"><enum>(iii)</enum><text>other consequences contrary to the intent of this section.</text></clause></subparagraph></paragraph><paragraph id="idF55745129CEF4851B84D90FA6BFCC91E"><enum>(3)</enum><header>Limitation on authority</header><text>The Corporation shall narrowly tailor any suspension or adjustment made under paragraph (1)(B) to address the market conditions that prompted the suspension or adjustment.</text></paragraph><paragraph id="id81E3AE079816418AB5557BD158B83E8B"><enum>(4)</enum><header>Determination</header><subparagraph id="idE0A3BF3909D648E493CC8D82459D43B7"><enum>(A)</enum><header>Period for public comment</header><text>The Corporation shall, promptly upon a decision to pursue a suspension or adjustment under paragraph (1)(B)(i) or upon receipt of a request under paragraph (1)(B)(ii), seek public comment on the suspension or adjustment for a period of 30 days.</text></subparagraph><subparagraph id="id43C1937010AA488EA561B721E935B9CF"><enum>(B)</enum><header>Period for determination</header><text>The Corporation shall make a determination regarding any proposed suspension or adjustment within 30 days after the expiration of the public comment period provided under subparagraph (A).</text></subparagraph><subparagraph id="id77A2CC6E4BD44197A60DF606F1E8F1EC"><enum>(C)</enum><header>Extensions</header><text>The Corporation may extend the period for determination provided under subparagraph (B) for a single additional 15-day period, but only if the Corporation requests additional information from the approved multifamily guarantor.</text></subparagraph></paragraph><paragraph id="id5B3F822012A445B7B45A2959F79D5997"><enum>(5)</enum><header>Review of suspension or adjustment</header><subparagraph id="id4C9A0AB17BED4218B0436051A147DD6E"><enum>(A)</enum><header>Annual review</header><text>The Corporation shall review any suspension or adjustment made by the Corporation under subparagraphs (A) or (B) of paragraph (1) at least annually to determine whether the suspension or adjustment satisfies the criteria established under paragraph (2).</text></subparagraph><subparagraph id="id06D388DADB9A4832A87A7938B0EEC4D4"><enum>(B)</enum><header>Publication and comment</header><text>The Corporation shall—</text><clause id="idC23345A998CA44FFBABC7BA406E99A58"><enum>(i)</enum><text>not less than annually, publish a list of all suspensions and adjustments in effect under this section; and</text></clause><clause id="idF3CC64FB83F14297A509AB44DAE9BB2B"><enum>(ii)</enum><text>seek public comment as to the continued necessity of such suspensions or adjustments.</text></clause></subparagraph></paragraph></subsection><subsection commented="no" id="idD6A8F6E9394A454AB80446BBB0ABE9BC"><enum>(e)</enum><header>Mixed income liquidity study and review</header><paragraph commented="no" id="id3AC37A70F19D415C8E526D0B7E7C832F"><enum>(1)</enum><header>Study</header><text>Not later than 2 years after the date of enactment of this Act, and periodically or as market conditions warrant thereafter, the Corporation shall conduct a study of liquidity in the market for financing the new construction or substantial rehabilitation of mixed-income properties containing multifamily units that—</text><subparagraph commented="no" id="idA7DAC347FE684373959266CC8F128F59"><enum>(A)</enum><text>otherwise qualify under the requirement under subsection (a); and</text></subparagraph><subparagraph commented="no" id="id7105790894E0423EA6BAD1051C156528"><enum>(B)</enum><text>are financed by tax-exempt bonds that are issued by a State or local housing finance agency.</text></subparagraph></paragraph><paragraph commented="no" id="idA8B7C99735E546B8AD5AB57806C376F9"><enum>(2)</enum><header>Adjustment to requirement</header><text>The Corporation may adjust the requirement under subsection (a), subject to the procedures provided under paragraphs (2) through (5) of subsection (d), if the Corporation finds based on a study conducted under paragraph (1) that—</text><subparagraph commented="no" id="id7A23F2A63B7743E7A6EAF3D3FEA9B9A5"><enum>(A)</enum><text>liquidity is constrained in the market for eligible multifamily mortgage loans for the mixed-income properties described in paragraph (1); and</text></subparagraph><subparagraph commented="no" id="idBB5F94613B58400FB516E25ACE714C4D"><enum>(B)</enum><text>it is necessary to foster liquidity in that market.</text></subparagraph></paragraph></subsection><subsection commented="no" id="id02F1EBA99F33494C86D4160F9634BAC4"><enum>(f)</enum><header>Rule of construction</header><text>Nothing in this section shall be construed to authorize the Corporation to require an approved multifamily guarantor to exceed the 60 percent requirement set forth under subsection (a).</text></subsection><subsection commented="no" id="id5B412F97B7DE4CE99AF90A5ACD7C6E49"><enum>(g)</enum><header>Definitions; applicability to enterprises</header><text>In this section—</text><paragraph id="idf3df6ccd577849c8b73b6718f06f1fa7"><enum>(1)</enum><text>the term <term>approved multifamily guarantor</term> includes an enterprise or any multifamily subsidiary established pursuant to section 701;</text></paragraph><paragraph id="idd9044cbb8f7c4a2991755a9fd835c473"><enum>(2)</enum><text>the term <term>multifamily covered security</term> includes a multifamily mortgage-backed security guaranteed by an enterprise or any multifamily subsidiary established pursuant to section 701; and</text></paragraph><paragraph id="ida1898f3fde344c45aa1949d59ebaf5f3"><enum>(3)</enum><text>the term <term>eligible multifamily mortgage loan</term> includes a multifamily mortgage loan collateralizing a security guaranteed by an enterprise or any multifamily subsidiary established pursuant to section 701.</text></paragraph></subsection></section><section id="idB0BAC631952B4576B51DD09DE80D822A"><enum>705.</enum><header>Establishment of small multifamily property program</header><subsection id="id6479C091A0154BAD9B047D64B7C9097B"><enum>(a)</enum><header>Pilot program</header><text display-inline="yes-display-inline">The Corporation shall establish at least 1 pilot program, to be administered by the Office of Multifamily Housing, in consultation with the Office of Consumer and Market Access, to test and assess methods or products designed to increase secondary mortgage market access for multifamily properties comprised of not more than 50 units or with mortgages not exceeding $3,000,000 (as adjusted for inflation).</text></subsection><subsection id="id9946d1eb844f493e97455d53ff68a6aa"><enum>(b)</enum><header>Activities</header><text>In administering the pilot program required under subsection (a), the Corporation shall—</text><paragraph id="idD927ACCF0C934527803B3FA2A4E94F9D"><enum>(1)</enum><text>review, and may approve, proposals from regulated entities or approved multifamily guarantors, including proposals focused on lending by small mortgage lenders, to participate in the pilot program by carrying out activities to decrease barriers to secondary mortgage market access for multifamily properties comprised of not more than 50 units or with mortgages not exceeding $3,000,000 (as adjusted for inflation) through new risk-sharing, partnerships, or other mechanisms or incentives; and</text></paragraph><paragraph id="idEE5C3998ED184CA8BA14EEB306CABC92"><enum>(2)</enum><text>establish requirements governing the activities of the pilot program, including requirements with respect to—</text><subparagraph id="id806E51D89218412CB5D36821FEA267BC"><enum>(A)</enum><text>any mid-course alterations of activities permitted under the pilot program, information sharing, reporting, and evaluation of the results of a pilot program; and</text></subparagraph><subparagraph id="id9C961A2D82E449C7812325C97D4AA927"><enum>(B)</enum><text>the tracking of any allocations of amounts that may be distributed from the Market Access Fund.</text></subparagraph></paragraph></subsection><subsection id="id23F3DC73B33748899F63AC557CC51BBB"><enum>(c)</enum><header>Use of Market Access Fund</header><text>A regulated entity or approved multifamily guarantor that submits a proposal under subsection (b) may request, as part of the proposal, allocations from the Market Access Fund as necessary to support its proposed activities.</text></subsection><subsection id="idDA8C323A1A664DB2AA65CC75B05C3B33"><enum>(d)</enum><header>Amendments to pilot program</header><text>The Corporation may amend a pilot program established under subsection (a) as needed to accommodate the multifamily mortgage market.</text></subsection><subsection id="id100503d819e94cff92810ef88d749446"><enum>(e)</enum><header>Publication</header><text>The Corporation shall make publicly available the results of a pilot program established under subsection (a).</text></subsection><subsection id="id057d2c3acc444f47a13b54e5a3dd9605"><enum>(f)</enum><header>Requirement</header><text>The Corporation shall consider the results of a pilot program established under subsection (a) for purposes of expanding and implementing new mechanisms to decrease barriers to secondary mortgage market access for multifamily properties comprised of not more than 50 units or with mortgages not exceeding $3,000,000 (as adjusted for inflation).</text></subsection><subsection id="id0797672360af42f8b83a9671d5a8c2cc"><enum>(g)</enum><header>Limitation on funding</header><text>The Corporation may not use funds from the Mortgage Insurance Fund to fund any pilot program activities conducted by a regulated entity or approved multifamily guarantor under this section.</text></subsection></section><section id="idb6eb82e0d1c64ebbb1be436aed3ac736"><enum>706.</enum><header>Multifamily housing study</header><text display-inline="no-display-inline">The Office of Multifamily Housing shall conduct a study on the expansion of the Federal Home Loan Banks’ Acquired Member Assets (<quote>AMA</quote>) programs to eligible multifamily mortgage loans.</text></section><section id="idA4D14BCF4AF24EF79BE7F12DC9804483"><enum>707.</enum><header>Multifamily platform study</header><subsection id="idC0AD7888FF5E43CE9D8688F24A9C48B1"><enum>(a)</enum><header>In general</header><text>Not later than 18 months after the system certification date, the Corporation shall conduct a study on the need, feasibility, costs, and merits of creating a cooperatively-owned, nonprofit multifamily issuance platform to securitize eligible multifamily mortgage loans.</text></subsection><subsection id="id26BF94C24ECB441E96397F41B537C175"><enum>(b)</enum><header>Content of study</header><text>The study required under subsection (a) shall address—</text><paragraph id="idCE07863A5B3C4F88AC4703C06484D97F"><enum>(1)</enum><text>competition between existing approved multifamily guarantors;</text></paragraph><paragraph id="idB818AAD2A5B146D58FA5A69A23CC92D3"><enum>(2)</enum><text>the barriers to entry for new multifamily guarantors;</text></paragraph><paragraph id="id734BD07077C3490A8B9F97809A60BE5D"><enum>(3)</enum><text>the costs associated with developing a new platform;</text></paragraph><paragraph id="id85BF919CBFA649D48A35B0C3D4A4CD0F"><enum>(4)</enum><text>the funding of smaller-balance multifamily mortgage loans, including mortgage loans originated by credit unions and community and mid-size banks and other small-volume lenders in rural and other underserved communities;</text></paragraph><paragraph id="idB1055EA2B7F24E9594DA8A7FA01D755D"><enum>(5)</enum><text>standardized definitions and reporting and payment requirements;</text></paragraph><paragraph id="id93EA0E4284E843AE9D5DC96B5456A893"><enum>(6)</enum><text>stability in the multifamily lending market in times of stress; and</text></paragraph><paragraph id="idFEFC247890EC45CDBEA1FB47A12D8A47"><enum>(7)</enum><text>such other information as the Corporation determines appropriate to further the purpose of the study.</text></paragraph></subsection><subsection id="idB003B80416F24992AF85037CA189E0C6"><enum>(c)</enum><header>Consideration</header><text>In conducting the study required under subsection (a), the Corporation shall consider whether any identified need to establish a multifamily securitization platform can and will be met by the Platform established under section 321, or any subsidiary or affiliate thereof.</text></subsection><subsection id="id5F886A8147CF45A89D75AB185ABBFA21"><enum>(d)</enum><header>Report to Congress</header><text>Not later than 18 months after the system certification date, the Corporation shall submit the study required under subsection (a) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.</text></subsection></section><section id="id1D47F6034B48405A8552F412B693BA0F"><enum>708.</enum><header>Short-term residential housing</header><subsection id="id1C2ACFEA25104502B7235AAEB60D679A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 513 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1731b">12 U.S.C. 1731b</external-xref>) is amended—</text><paragraph id="ID30eda04c674b46548648e8bf0f3b1fc3"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="IDd15e92d739f8410d849b984ef4ab8291"><enum>(A)</enum><text>in clause (1), by striking <quote>or</quote> at the end; and</text></subparagraph><subparagraph id="IDa101da56f72f45069ed10badf491e8dd"><enum>(B)</enum><text>by inserting before the period at the end the following: <quote>, or (3) the project is a short-term residential property (as such term is defined in subsection (e) of this section) and is subject to a mortgage insured under section 207, provided that the Secretary has made a determination pursuant to the study and report required under section 708(b) of the Housing Finance Reform and Taxpayer Protection Act that the provision of such insurance is appropriate</quote>; and</text></subparagraph></paragraph><paragraph id="ID1afc59fbedf14bf6a32961ca94381b8a"><enum>(2)</enum><text>in subsection (e)—</text><subparagraph id="ID396447e68a8f4490ae982fbc86e9b73e"><enum>(A)</enum><text>in clause (1), by striking <quote>and</quote> at the end; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6e6c6b202365479db0998fd4b74b279c"><enum>(B)</enum><text>by inserting before the period at the end the following: <quote>, and (3) the term <quote>short-term residential property</quote> means multifamily housing that (A) has more than 50 dwelling units that each contain a kitchen, including a full refrigerator and cooking surface, and bathroom facilities, (B) provides mail boxes for each unit, (C) rents such units for a minimum stay of 7 days, and (D) does not provide food or beverage services, including in-room service, daily maid services, furnishing and laundering of linen without charge, or bellhop services</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2E837680015B4A49ABD77F6C61FAB5AB"><enum>(b)</enum><header>Study</header><paragraph commented="no" display-inline="no-display-inline" id="id5A1BCB65560D4DCA9867C9FC1D5EB8D6"><enum>(1)</enum><header>In general</header><text>Not later than 6 months after the date of enactment of this Act, the Secretary of Housing and Urban Development shall—</text><subparagraph commented="no" display-inline="no-display-inline" id="id994DE48DBC3A4D0F9E804D5147795541"><enum>(A)</enum><text>conduct and complete a study evaluating the risk of the provision of insurance under section 207 of the National Housing Act (12 U.S.C. 1713) for short-term residential properties; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA84B0BF943304A9FA60A074D3F1B4138"><enum>(B)</enum><text>submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, which shall include—</text><clause commented="no" display-inline="no-display-inline" id="id3C144B07738A47A38F9F7068EBC93E62"><enum>(i)</enum><text>the findings of the study required under subparagraph (A); and</text></clause><clause commented="no" display-inline="no-display-inline" id="id7D655FB16D8D4491BE9192E03B5AE3C8"><enum>(ii)</enum><text>a determination as to whether any additional risk presented to the General Insurance Fund resulting from the provision of insurance under section 207 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1713">12 U.S.C. 1713</external-xref>) for short-term residential properties is appropriate.</text></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCAF599492DF54096902E6A0A6A893E04"><enum>(2)</enum><header>Contents of study</header><text>In conducting the study required under paragraph (1)(A), the Secretary of Housing and Urban Development shall—</text><subparagraph commented="no" display-inline="no-display-inline" id="idA88B1E085322451D99C1057A7714AC07"><enum>(A)</enum><text>evaluate whether the provision of insurance under section 207 of the National Housing Act (12 U.S.C. 1713) for short-term residential properties presents additional risk to the General Insurance Fund; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id355E126A47B44A10BCC9FA5A19373EB6"><enum>(B)</enum><text>consider any additional operational and logistical costs associated with providing such insurance.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE069251994BA4EB9BD1A2F3AF7E4B317"><enum>(3)</enum><header>Definitions</header><text>In this subsection—</text><subparagraph commented="no" display-inline="no-display-inline" id="idDD8489EFEED14217AC8D0294BC610AF7"><enum>(A)</enum><text>the term <term>General Insurance Fund</term> means the fund established under section 519 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1735c">12 U.S.C. 1735c</external-xref>); and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id80853AA779A443969512971808061EC6"><enum>(B)</enum><text>the term <term>short-term residential properties</term> has the meaning given the term under section 513(e)(3) of the National Housing Act (12 U.S.C. 1731b(e)(3)).</text></subparagraph></paragraph></subsection></section><enum>VIII</enum><header>General provisions</header><section commented="no" display-inline="no-display-inline" id="id4630ce28-b2e0-4665-adc0-320be58af569" section-type="subsequent-section"><enum>801.</enum><header display-inline="yes-display-inline">Rule of construction</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="idf054952d-cc3a-42bd-8b4f-b8b334874612"><enum>802.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act or the application of any provision of this Act to any person or circumstance, is held invalid, the application of such provision to other persons or circumstances, and the remainder of this Act, shall not be affected thereby.</text></section><section id="id168205FC5BB946EA83AED13FBB526729"><enum>803.</enum><header>Transfer notification under TILA</header><subsection id="iddba758cbf0b341dfb1c5b084d55f7dd4"><enum>(a)</enum><header>In general</header><text>Section 131(g) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1641">15 U.S.C. 1641(g)</external-xref>) is amended by striking paragraph (2) and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idedf181cedb4e4f399f41377a07c136a7" reported-display-style="italic" style="OLC"><paragraph id="id3e11a4ca523d41d0850982123ad1a532"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph id="id6c37a09879c2435c904c3c3f5e39fa25"><enum>(A)</enum><text>the term <quote>mortgage loan</quote> means any consumer credit transaction that is secured by the principal dwelling of a consumer;</text></subparagraph><subparagraph id="id9458d201d87d4cc6be549843014ee493"><enum>(B)</enum><text>the term <term>securitized residential mortgage</term> means any residential mortgage loan that serves as collateral for a fixed-income or other security that allows the holder of such security to receive payments dependent on the cash flow from such residential mortgage loan; and</text></subparagraph><subparagraph id="id75aac23523ae4d70af71138f1370c819"><enum>(C)</enum><text>the term <term>servicer</term>—</text><clause id="id2b9ff6fb5dd144c69f50594de970ce30"><enum>(i)</enum><text>has the meaning provided in section 129A, except that such term includes a person who receives any payments from a mortgagor, including any amounts for escrow accounts, and makes payments to the owner of the loan or other third parties, including payments made after default, pursuant to the terms of the relevant contracts; and</text></clause><clause id="idac1fa12308ed42748c5095c09689398b"><enum>(ii)</enum><text>excludes State and local housing agencies.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id1E1605AC813B4A9399B0AED5B0450638"><enum>(b)</enum><header>Disclosure of fees</header><text>Section 5(c)(3) of the Real Estate Settlement Procedures Act (<external-xref legal-doc="usc" parsable-cite="usc/12/2605">12 U.S.C. 2605(c)(3)</external-xref>) is amended—</text><paragraph id="id8D0B9E22B03F489F965EA340CD04CABB"><enum>(1)</enum><text>by striking <quote>Any notice required</quote> and inserting the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="idDF3BC2F2447E48068C15E1A00437431E" reported-display-style="italic" style="OLC"><subparagraph id="id198123A65F3E47D08227512E2195FB6F"><enum>(A)</enum><header>In general</header><text>Any notice required</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id363932C0E23F49D5931E6DB097DA26C3"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id6FA18ADBF7D34981BF7DEE9DFCF02AE3" reported-display-style="italic" style="OLC"><subparagraph id="id9F1C7D0F3ED94A30A004DED6117E5B0D"><enum>(B)</enum><header>Disclosure of fees requirement</header><text>The transferee servicer shall provide to the borrower, not more than 15 days after the effective date of transfer of the servicing of the mortgage loan, a statement regarding the loan which shows the following:</text><clause id="idECAFE2FF07DD4B36BE6642D80173A38D"><enum>(i)</enum><text>The application of all payments and charges, including the date received, as allocated to principal, interest, escrow, and other charges.</text></clause><clause id="idF347149A2FBA46C9A1A70B8336F75979"><enum>(ii)</enum><text>The status of the loan as of the date of the transfer including whether the loan is in default and whether any loss mitigation application submitted by the borrower is pending.</text></clause><clause id="id8C6787B430034D79A21DFFE2DE96E276"><enum>(iii)</enum><text>An itemization and explanation for all arrearages claimed to be due as of the date of the transfer.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="ide76a087529104743bac14a42009e82bb"><enum>(c)</enum><header>Safe harbor for mistaken payments; fees</header><text>Section 131 of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1641">15 U.S.C. 1641</external-xref>) is amended—</text><paragraph id="id000b97e352f24796b618e867b8b278c0"><enum>(1)</enum><text>by redesignating subsection (g) as subsection (i); and</text></paragraph><paragraph id="id17dfa3935e1c46ffbedaa864c3d12b9b"><enum>(2)</enum><text>by inserting after subsection (f) the following:</text><quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id20a21e2bf76544858a5711799830743d" reported-display-style="italic" style="OLC"><subsection id="id835aed3abd064bf39209690e7e860431"><enum>(g)</enum><header>Treatment of mistaken loan payments after transfer</header><text>During the 60-day period beginning on the effective date of transfer of the servicing of any securitized residential mortgage loan, a late fee may not be imposed on the consumer with respect to any payment on such loan, and no such payment may be treated as late for any other purpose, if the payment is received by the transferor servicer (rather than the transferee servicer who should properly receive payment) on or before the applicable due date, including any grace period allowed under the loan documents.</text></subsection><subsection id="id20CC08E91AD348E096D82ACD37E2C316"><enum>(h)</enum><header>Fee waive upon transfer</header><paragraph id="idAFB09CA34E2F46F79969896161FBD19F"><enum>(1)</enum><header>In general</header><text>The creditor, new owner, or assignee of the mortgage loan, by itself or through its servicer, may not impose or collect—</text><subparagraph id="idCC9D8532414F4EDF828B362D03E926AD"><enum>(A)</enum><text>any fee that is not listed as having been incurred in the notice to the consumer of the transfer of servicing of a securitized residential mortgage loan; or</text></subparagraph><subparagraph id="idF75F047A357A407791AE96F4107A1F19"><enum>(B)</enum><text>any fee incurred prior to the effective date of servicing transfer that is not disclosed on a periodic statement provided to the consumer prior to the effective date of servicing transfer of a securitized residential mortgage loan.</text></subparagraph></paragraph><paragraph id="id70775D40D9BF49138B55851DD96B0EDD"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph id="idfb7d3655fc5b4c9dba5cd19d90004f56"><enum>(A)</enum><text>the term <term>securitized residential mortgage</term> means any residential mortgage loan that serves as collateral for a fixed-income or other security that allows the holder of such security to receive payments dependent on the cash flow from such residential mortgage loan; and</text></subparagraph><subparagraph id="id9dd31392d5ce4af68ab3764dc21cce13"><enum>(B)</enum><text>the term <term>servicer</term>—</text><clause id="id495bbca13bcc426293c91cb6996e1fdc"><enum>(i)</enum><text>has the meaning provided in section 129A, except that such term includes a person who receives any payments from a mortgagor, including any amounts for escrow accounts, and makes payments to the owner of the loan or other third parties, including payments made after default, pursuant to the terms of the relevant contracts; and</text></clause><clause id="id238e15cf3b064f459f6772ca8da384f3"><enum>(ii)</enum><text>excludes State and local housing agencies.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block></paragraph></subsection></section><section id="id0717DB20BD29455794932CEB78C00921"><enum>804.</enum><header>Investment authority to support rural infrastructure</header><text display-inline="no-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 changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id8C6DF453049C4E47AE68D051E2B8E22F" reported-display-style="italic" style="OLC"><subsection id="id4ABA1E6FF2C5406F9BDAB136F12DF133"><enum>(m)</enum><header>Mission investments for rural infrastructure</header><text>In furtherance of its mission under section 5, each Federal Home Loan Bank is authorized to purchase investment grade securities from nonmember cooperative lenders that have received financing from the Federal Financing Bank and that possess demonstrated experience in making loans to rural cooperatives. Such securities shall be secured investments collateralized by loans of the cooperative lender. The purchase of such securities shall be at the sole discretion of the Bank, consistent with such regulations, restrictions, and limitations as may be prescribed by the Board.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id0A22E774FBFE43EC8001204A37698095"><enum>805.</enum><header>Consolidation of similar housing assistance programs</header><subsection id="id56D1BC7789034FC59602147D40993120"><enum>(a)</enum><header>Report</header><paragraph id="id4C9034D5B37141F6A0FD7E02CD0C37D8"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this Act, the Corporation, the Secretary of Housing and Urban Development, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Veterans Affairs, the Secretary of Labor, and the Secretary of the Interior shall jointly submit to Congress a report, which shall—</text><subparagraph id="idC70646E019F04143AA83164BB662D4E3"><enum>(A)</enum><text>identify and evaluate, based on need and appropriateness, specific opportunities to consolidate similar housing assistance programs, which may include the programs identified in the August 2012 Government Accountability Office report to Congress entitled <quote>Opportunities Exist to Increase Collaboration and Consider Consolidation</quote> (GAO-12-554);</text></subparagraph><subparagraph id="id47E1BAE7CD6D47E098ED3C6ECD2BE245"><enum>(B)</enum><text>provide recommendations to Congress for legislative action to appropriately streamline, consolidate, or eliminate similar housing assistance programs identified and evaluated under subparagraph (A); and</text></subparagraph><subparagraph id="id0CAB7D68E6FC44448532789F1850A4F3"><enum>(C)</enum><text>identify opportunities for cross-agency collaboration of housing assistance efforts.</text></subparagraph></paragraph><paragraph id="idB812D9EF19F54400BA393BA9ACA027D7"><enum>(2)</enum><header>Accessibility</header><text>The report submitted under paragraph (1) shall be made available on a publically accessible Internet website.</text></paragraph></subsection><subsection id="idC42BB24243144FEDB661D9239B3D674F"><enum>(b)</enum><header>Use of administrative authority</header><paragraph id="idB26D798F1BBF4067BC42EBFE3EBDE3D7"><enum>(1)</enum><header>In general</header><subparagraph id="idE9BDC20C74624FA495AFA4F1CC9B3E63"><enum>(A)</enum><text>The Director of the Office of Management and Budget shall coordinate with the Secretary of Housing and Urban Development, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Veterans Affairs, the Secretary of Labor, and the Secretary of the Interior to consider and evaluate opportunities to eliminate, consolidate, or streamline housing assistance programs.</text></subparagraph><subparagraph id="id8803CFA998854CF09E054E217C761EC0"><enum>(B)</enum><text>The Director of the Office of Management and Budget, in coordination with the Secretary of Housing and Urban Development, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Veterans Affairs, the Secretary of Labor, and the Secretary of the Interior, shall eliminate, consolidate, or streamline any programs identified under subparagraph (A) which they find appropriate.</text></subparagraph></paragraph><paragraph id="idDABE5010FE9A42DDBCDD1861EFB684C8"><enum>(2)</enum><header>Cost savings</header><text>Any administrative cost savings resulting from the consolidation, elimination, or streamlining of housing assistance programs under paragraph (1) shall be transferred as follows:</text><subparagraph id="idB0B832A261A643518E2C6135C1E26851"><enum>(A)</enum><text>50 percent to the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>).</text></subparagraph><subparagraph id="id20BF3D354AA9400491BC0ECC8C2F478C"><enum>(B)</enum><text>50 percent to the General Fund of the Treasury to be used for deficit reduction.</text></subparagraph></paragraph><paragraph id="id8558E059A202433B9624720CFF6E6C3E"><enum>(3)</enum><header>Report</header><text>The Director of the Office of Management and Budget shall submit to Congress a report on an annual basis of any actions taken to streamline similar housing assistance programs, and the cost savings resulting from such actions.</text></paragraph></subsection><subsection id="id6D25CB909B614051BE096C4E985D14AA"><enum>(c)</enum><header>Rule of construction</header><text>Nothing in this section shall be construed to grant the Director of the Office of Management and Budget, the Secretary of Housing and Urban Development, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Veterans Affairs, the Secretary of Labor, or the Secretary of the Interior any additional authority to eliminate, consolidate, or streamline housing assistance programs that they did not have prior to the date of enactment of this Act.</text></subsection></section><section id="id27EFD9C254524B3E95E5973BA35CD699"><enum>806.</enum><header>Bureau of Consumer Financial Protection review; GAO report</header><subsection id="id5E91487D58E54E8E8104ADCFC8FCF1C6"><enum>(a)</enum><header>Bureau of Consumer Financial Protection review</header><paragraph id="idD81119CC42854867B7DC686198893FEE"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), not later than 3 months after the date of enactment of this Act, the Bureau of Consumer Financial Protection shall, after reviewing relevant data and consulting with stakeholders, including representatives of the manufactured housing industry and representatives of consumers and homeowners, consider and review the application of subsections (bb) and (cc) of section 103 of the Truth in Lending Act (15 U.S.C. 1602) to manufactured housing loans, including—</text><subparagraph id="idFC1464496792461683AAF1C2B4700DCD"><enum>(A)</enum><text>the annual percentage rate coverage test for high-cost mortgages;</text></subparagraph><subparagraph id="id5A8CD5EB4E9446548B66ED31849F7420"><enum>(B)</enum><text>the total points and fees coverage test for high-cost mortgages; and</text></subparagraph><subparagraph id="id7535556CA8DA4F579418FC8518E477FE"><enum>(C)</enum><text>the definition of the term <term>mortgage originator</term>.</text></subparagraph></paragraph><paragraph id="id56E07B44AAA240DD825FA62680F4A588"><enum>(2)</enum><header>Exception</header><text>The Bureau of Consumer Financial Protection shall not be required to conduct the review under paragraph (1) if the Bureau does not receive relevant data relating to the review that was not previously submitted to the Bureau on or before January 31, 2013.</text></paragraph><paragraph id="id4E95A415ADC9403E94BC247511092DC7"><enum>(3)</enum><header>Rule of construction</header><text>Nothing in paragraph (1) shall be construed to require the Bureau of Consumer Financial Protection to engage in rulemaking, including rulemaking to modify any rule relating to subsection (bb) or (cc) of section 103 of the Truth in Lending Act (15 U.S.C. 1602).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id8355AAFD964E4888AC47CB7287CDC3C3"><enum>(b)</enum><header>GAO report</header><text>Not later than 10 months after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and issue a report to Congress on the manufactured housing loan market, which shall include an analysis of—</text><paragraph id="id528A9B570991498FAF57103A86DD3BFF"><enum>(1)</enum><text>the loan products available in the manufactured housing loan market and the performance of those products, which shall include a review of the underwriting standards and portfolios of creditors that originate manufactured housing loans, such as depository institutions and finance companies;</text></paragraph><paragraph id="id1EA3F873110746AE8CC463697A4D5A39"><enum>(2)</enum><text>the characteristics of borrowers that participate in the manufactured housing loan market, including—</text><subparagraph id="idA678D34CCC6B454289C464DA866F1865"><enum>(A)</enum><text>the creditworthiness of the borrower;</text></subparagraph><subparagraph id="id928222C996F6412984714C0656BD366F"><enum>(B)</enum><text>the usage pattern of the borrower; and</text></subparagraph><subparagraph id="idD5C74F6852EA4405922AD1A2AA6AA7BB"><enum>(C)</enum><text>the process for evaluating and comparing loan products prior to purchase; and</text></subparagraph></paragraph><paragraph id="idC4CEA276DCE940939DEFEA57314A16AD"><enum>(3)</enum><text>the potential impact on access to mortgage credit for manufactured housing loans if subsections (bb) and (cc) of section 103 of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>) were applied to manufactured housing loans, including—</text><subparagraph id="idD02236A4BDCF4ADDB1CF191F4A104AD1"><enum>(A)</enum><text>the annual percentage rate coverage test for high-cost mortgages;</text></subparagraph><subparagraph id="idFEF1AD6A3EC94353B60720E6B0C4A41C"><enum>(B)</enum><text>the total points and fees coverage test for high-cost mortgages;</text></subparagraph><subparagraph id="id539673CAF06F456B88219AFCB59CEEC6"><enum>(C)</enum><text>the definition of <term>mortgage originator</term>;</text></subparagraph><subparagraph id="id5B4AC54418BF4C5AA8A3A5837C6321E0"><enum>(D)</enum><text>borrower delinquency and default in the manufactured housing loan market; and</text></subparagraph><subparagraph id="id676A5D6A904B4F338728F002E160957A"><enum>(E)</enum><text>competition in the manufactured housing loan market.</text></subparagraph></paragraph></subsection></section><section id="id343C5F24C999422BBB807F5D3872372A"><enum>807.</enum><header>Determination of budgetary effects</header><text display-inline="no-display-inline">The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled <quote>Budgetary Effects of PAYGO Legislation</quote> for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.</text></section>September 18, 2014Reported with an amendment