3.0.0 3530 2019-11-15T20:54:04Z 2019-11-15T20:54:04Z House H HR 2011-11-30 112 From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Mr. PERLMUTTER:H.R. 3530.Congress has the power to enact this legislation pursuantto the following:Clause 1 of Article VI of the United States Constitution[Page H7999]]]> hsba00 Financial Services Committee House Standing hsba16 Capital Markets Subcommittee Referred to 2012-01-12T19:52:44Z Referred to 2011-11-30T15:01:00Z 2012-01-12 hsba16 Capital Markets Subcommittee 1 House committee actions Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises. Committee 2011-11-30 Referred to the House Committee on Financial Services. IntroReferral H11100 2 House floor actions hsba00 Financial Services Committee 2011-11-30 Introduced in House IntroReferral Intro-H 9 Library of Congress 2011-11-30 Introduced in House IntroReferral 1000 9 Library of Congress P000593 Rep. Perlmutter, Ed [D-CO-7] Ed Perlmutter D CO 7 N S001183 Rep. Schweikert, David [R-AZ-5] David Schweikert R AZ 5 2011-11-30 True Housing and Community Development Bankruptcy Budget deficits and national debt Financial services and investments Housing finance and home ownership Securities Housing and Community Development 00 2011-11-30 Introduced in House 2012-02-02T17:45:01Z Freddie Mac Debt Reduction Act of 2011 - Amends the Housing and Community Development Act of 1992 with respect to the exercise of options on mortgage-backed securities by the Federal Home Loan Mortgage Corporation (Freddie Mac) or, during the term of any conservatorship or receivership of Freddie Mac, the Director of the Federal Housing Finance Agency (FHFA).

Directs Freddie Mac (or FHFA as its conservator or receiver) to exercise any option on a mortgage-backed security with a clean-up call option Freddie Mac has issued if the residual holder of the security is willing to share at least 50% of any excess proceeds from the exercise of the option with FHFA as conservator or receiver, which would thereby reduce the liability of taxpayers.

(A clean-up call option allows a transferor of assets, in this case mortgage assets, to buy them back after the outstanding asset values have been reduced substantially.)

Defines mortgage-backed security with a clean-up call option as any mortgage-backed security under which there is an option or right to redeem all remaining classes of the security whenever the aggregate remaining principal of the mortgage would be less than the optional redemption or clean-up call percentage.

Directs the Director to prohibit Freddie Mac and the Federal National Mortgage Association (Fannie Mae) from issuing any mortgage-backed security with a clean-up call option.

Directs the Director to ensure that any excess proceeds received as a result of the exercise of any clean-up call options be used only to reduce the budget deficit of the federal government.

]]> Freddie Mac Debt Reduction Act of 2011 Short Titles as Introduced Freddie Mac Debt Reduction Act of 2011 Display Title Freddie Mac Debt Reduction Act of 2011 Official Title as Introduced To require the exercise of clean-up call options under securities issued by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation and to prohibit any new mortgage-backed securities issued by such enterprises to contain provisions for a clean-up call option. Introduced in House 2011-11-30T05:00:00Z https://www.govinfo.gov/content/pkg/BILLS-112hr3530ih/xml/BILLS-112hr3530ih.xml 2012-01-12 Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises. 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. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.