110th CONGRESS
2d Session
H. R. 3221
In the Senate of the United
States,
July 11, 2008.
Senate Amendment to House Amendments to Senate
Amendment:
That on June 25, 2008, the Senate concurs in the
House amendment, striking section 1 through title V and inserting certain
language, to the Senate amendment to the bill (H.R. 3221) entitled An
Act moving the United States toward greater energy independence and security,
developing innovative new technologies, reducing carbon emissions, creating
green jobs, protecting consumers, increasing clean renewable energy production,
and modernizing our energy infrastructure, and to amend the Internal Revenue
Code of 1986 to provide tax incentives for the production of renewable energy
and energy conservation.
, with an amendment
In lieu of the
matter proposed to be inserted, insert the
following:
1.Short title; table of
contents
(a)This Act may be cited
as the Housing and Economic Recovery
Act of 2008
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
DIVISION A—HOUSING FINANCE
REFORM
Sec. 1001. Short
title.
Sec. 1002.
Definitions.
TITLE I—Reform of regulation of
enterprises
Subtitle A—Improvement of safety and soundness
supervision
Sec. 1101. Establishment of the Federal Housing
Finance Agency.
Sec. 1102. Duties and authorities of the
Director.
Sec. 1103. Federal Housing Finance Oversight
Board.
Sec. 1104. Authority to require reports by
regulated entities.
Sec. 1105. Examiners and accountants; authority
to contract for reviews of regulated entities; ombudsman.
Sec. 1106. Assessments.
Sec. 1107. Regulations and orders.
Sec. 1108. Prudential management and operations
standards.
Sec. 1109. Review of and authority over
enterprise assets and liabilities.
Sec. 1110. Risk-based capital
requirements.
Sec. 1111. Minimum capital levels.
Sec. 1112. Registration under the securities
laws.
Sec. 1113. Prohibition and withholding of
executive compensation.
Sec. 1114. Limit on golden
parachutes.
Sec. 1115. Reporting of fraudulent
loans.
Subtitle B—Improvement of mission
supervision
Sec. 1121. Transfer of program approval and
housing goal oversight.
Sec. 1122. Assumption by the Director of
certain other HUD responsibilities.
Sec. 1123. Review of enterprise
products.
Sec. 1124. Conforming loan limits.
Sec. 1125. Annual housing report.
Sec. 1126. Public use database.
Sec. 1127. Reporting of mortgage
data.
Sec. 1128. Revision of housing
goals.
Sec. 1129. Duty to serve underserved
markets.
Sec. 1130. Monitoring and enforcing compliance
with housing goals.
Sec. 1131. Affordable housing
programs.
Sec. 1132. Financial education and
counseling.
Sec. 1133. Transfer and rights of certain HUD
employees.
Subtitle C—Prompt corrective action
Sec. 1141. Critical capital levels.
Sec. 1142. Capital classifications.
Sec. 1143. Supervisory actions applicable to
undercapitalized regulated entities.
Sec. 1144. Supervisory actions applicable to
significantly undercapitalized regulated entities.
Sec. 1145. Authority over critically
undercapitalized regulated entities.
Subtitle D—Enforcement actions
Sec. 1151. Cease and desist
proceedings.
Sec. 1152. Temporary cease and desist
proceedings.
Sec. 1153. Removal and prohibition
authority.
Sec. 1154. Enforcement and
jurisdiction.
Sec. 1155. Civil money penalties.
Sec. 1156. Criminal penalty.
Sec. 1157. Notice after separation from
service.
Sec. 1158. Subpoena authority.
Subtitle E—General provisions
Sec. 1161. Conforming and technical
amendments.
Sec. 1162. Presidentially-appointed directors
of enterprises.
Sec. 1163. Effective date.
TITLE II—Federal Home Loan Banks
Sec. 1201. Recognition of distinctions between
the enterprises and the Federal Home Loan Banks.
Sec. 1202. Directors.
Sec. 1203. Definitions.
Sec. 1204. Agency oversight of Federal Home
Loan Banks.
Sec. 1205. Housing goals.
Sec. 1206. Community development financial
institutions.
Sec. 1207. Sharing of information among Federal
Home Loan Banks.
Sec. 1208. Exclusion from certain
requirements.
Sec. 1209. Voluntary mergers.
Sec. 1210. Authority to reduce
districts.
Sec. 1211. Community financial institution
members.
Sec. 1212. Public use database; reports to
Congress.
Sec. 1213. Semiannual reports.
Sec. 1214. Liquidation or reorganization of a
Federal Home Loan Bank.
Sec. 1215. Study and report to Congress on
securitization of acquired member assets.
Sec. 1216. Technical and conforming
amendments.
Sec. 1217. Study on Federal Home Loan Bank
advances.
Sec. 1218. Federal Home Loan Bank refinancing
authority for certain residential mortgage loans.
TITLE III—Transfer of functions, personnel, and
property of OFHEO and the Federal Housing Finance Board
Subtitle A—OFHEO
Sec. 1301. Abolishment of OFHEO.
Sec. 1302. Continuation and coordination of
certain actions.
Sec. 1303. Transfer and rights of employees of
OFHEO.
Sec. 1304. Transfer of property and
facilities.
Subtitle B—Federal Housing Finance
Board
Sec. 1311. Abolishment of the Federal Housing
Finance Board.
Sec. 1312. Continuation and coordination of
certain actions.
Sec. 1313. Transfer and rights of employees of
the Federal Housing Finance Board.
Sec. 1314. Transfer of property and
facilities.
TITLE IV—HOPE for Homeowners
Sec. 1401. Short title.
Sec. 1402. Establishment of HOPE for Homeowners
Program.
Sec. 1403. Fiduciary duty of servicers of
pooled residential mortgage loans.
Sec. 1404. Revised standards for FHA
appraisers.
TITLE V—S.A.F.E. Mortgage Licensing
Act
Sec. 1501. Short title.
Sec. 1502. Purposes and methods for
establishing a mortgage licensing system and registry.
Sec. 1503. Definitions.
Sec. 1504. License or registration
required.
Sec. 1505. State license and registration
application and issuance.
Sec. 1506. Standards for State license
renewal.
Sec. 1507. System of registration
administration by Federal agencies.
Sec. 1508. Secretary of Housing and Urban
Development backup authority to establish a loan originator licensing
system.
Sec. 1509. Backup authority to establish a
nationwide mortgage licensing and registry system.
Sec. 1510. Fees.
Sec. 1511. Background checks of loan
originators.
Sec. 1512. Confidentiality of
information.
Sec. 1513. Liability provisions.
Sec. 1514. Enforcement under HUD backup
licensing system.
Sec. 1515. State examination
authority.
Sec. 1516. Reports and recommendations to
Congress.
Sec. 1517. Study and reports on defaults and
foreclosures.
TITLE VI—Miscellaneous
Sec. 1601. Study and reports on guarantee
fees.
Sec. 1602. Study and report on default risk
evaluation.
Sec. 1603. Conversion of HUD
contracts.
Sec. 1604. Bridge depository
institutions.
Sec. 1605. Sense of the Senate.
DIVISION B—FORECLOSURE PREVENTION
Sec. 2001. Short title.
Sec. 2002. Emergency designation.
TITLE I—FHA Modernization Act of
2008
Sec. 2101. Short title.
Subtitle A—Building American
Homeownership
Sec. 2111. Short title.
Sec. 2112. Maximum principal loan
obligation.
Sec. 2113. Cash investment requirement and
prohibition of seller-funded down payment assistance.
Sec. 2114. Mortgage insurance
premiums.
Sec. 2115. Rehabilitation loans.
Sec. 2116. Discretionary action.
Sec. 2117. Insurance of
condominiums.
Sec. 2118. Mutual Mortgage Insurance
Fund.
Sec. 2119. Hawaiian home lands and Indian
reservations.
Sec. 2120. Conforming and technical
amendments.
Sec. 2121. Insurance of mortgages.
Sec. 2122. Home equity conversion
mortgages.
Sec. 2123. Energy efficient mortgages
program.
Sec. 2124. Pilot program for automated process
for borrowers without sufficient credit history.
Sec. 2125. Homeownership
preservation.
Sec. 2126. Use of FHA savings for improvements
in FHA technologies, procedures, processes, program performance, staffing, and
salaries.
Sec. 2127. Post-purchase housing counseling
eligibility improvements.
Sec. 2128. Pre-purchase homeownership
counseling demonstration.
Sec. 2129. Fraud prevention.
Sec. 2130. Limitation on mortgage insurance
premium increases.
Sec. 2131. Savings provision.
Sec. 2132. Implementation.
Sec. 2133. Moratorium on implementation of
risk-based premiums.
Subtitle B—Manufactured Housing Loan
Modernization
Sec. 2141. Short title.
Sec. 2142. Purposes.
Sec. 2143. Exception to limitation on financial
institution portfolio.
Sec. 2144. Insurance benefits.
Sec. 2145. Maximum loan limits.
Sec. 2146. Insurance premiums.
Sec. 2147. Technical corrections.
Sec. 2148. Revision of underwriting
criteria.
Sec. 2149. Prohibition against kickbacks and
unearned fees.
Sec. 2150. Leasehold requirements.
TITLE II—Mortgage foreclosure protections for
servicemembers
Sec. 2201. Temporary increase in maximum loan
guaranty amount for certain housing loans guaranteed by the Secretary of
Veterans Affairs.
Sec. 2202. Counseling on mortgage foreclosures
for members of the Armed Forces returning from service abroad.
Sec. 2203. Enhancement of protections for
servicemembers relating to mortgages and mortgage foreclosures.
TITLE III—Emergency assistance for the
redevelopment of abandoned and foreclosed homes
Sec. 2301. Emergency assistance for the
redevelopment of abandoned and foreclosed homes.
Sec. 2302. Nationwide distribution of
resources.
Sec. 2303. Limitation on use of funds with
respect to eminent domain.
Sec. 2304. Limitation on distribution of
funds.
Sec. 2305. Counseling
intermediaries.
TITLE IV—Housing counseling
resources
Sec. 2401. Housing counseling
resources.
Sec. 2402. Credit counseling.
TITLE V—Mortgage Disclosure Improvement
Act
Sec. 2501. Short title.
Sec. 2502. Enhanced mortgage loan
disclosures.
Sec. 2503. Community development investment
authority for depository institutions.
TITLE VI—VETERANS HOUSING MATTERS
Sec. 2601. Home improvements and structural
alterations for totally disabled members of the Armed Forces before discharge
or release from the Armed Forces.
Sec. 2602. Eligibility for specially adapted
housing benefits and assistance for members of the Armed Forces with
service-connected disabilities and individuals residing outside the United
States.
Sec. 2603. Specially adapted housing assistance
for individuals with severe burn injuries.
Sec. 2604. Extension of assistance for
individuals residing temporarily in housing owned by a family
member.
Sec. 2605. Increase in specially adapted
housing benefits for disabled veterans.
Sec. 2606. Report on specially adapted housing
for disabled individuals.
Sec. 2607. Report on specially adapted housing
assistance for individuals who reside in housing owned by a family member on
permanent basis.
Sec. 2608. Definition of annual income for
purposes of section 8 and other public housing programs.
Sec. 2609. Payment of transportation of baggage
and household effects for members of the Armed Forces who relocate due to
foreclosure of leased housing.
TITLE VII—Small Public Housing
Authorities Paperwork Reduction Act
Sec. 2701. Short
title.
Sec. 2702. Public housing
agency plans for certain qualified public housing agencies.
TITLE VIII—Foreclosure rescue
fraud protection
Sec. 2801. Short
title.
Sec. 2802.
Definitions.
Sec. 2803. Mortgage rescue
fraud protection.
Sec. 2804. Warnings to
homeowners of foreclosure rescue scams.
Sec. 2805. Civil
liability.
Sec. 2806. Administrative
enforcement.
Sec. 2807.
Limitation.
Sec. 2808.
Preemption.
DIVISION C—TAX-RELATED PROVISIONS
Sec. 3000. Short title; etc.
TITLE I—Housing tax incentives
Subtitle A—Multi-family housing
PART I—Low-income housing tax
credit
Sec. 3001. Temporary increase in volume cap for
low-income housing tax credit.
Sec. 3002. Determination of credit
rate.
Sec. 3003. Modifications to definition of
eligible basis.
Sec. 3004. Other simplification and reform of
low-income housing tax incentives.
Sec. 3005. Treatment of military basic
pay.
PART II—Modifications to tax-exempt housing
bond rules
Sec. 3007. Recycling of tax-exempt debt for
financing residential rental projects.
Sec. 3008. Coordination of certain rules
applicable to low-income housing credit and qualified residential rental
project exempt facility bonds.
PART III—Reforms related to the low-income
housing credit and tax-exempt housing bonds
Sec. 3009. Hold harmless for reductions in area
median gross income.
Sec. 3010. Exception to annual current income
determination requirement where determination not relevant.
Subtitle B—Single family housing
Sec. 3011. First-time homebuyer
credit.
Sec. 3012. Additional standard deduction for
real property taxes for nonitemizers.
Subtitle C—General provisions
Sec. 3021. Temporary liberalization of
tax-exempt housing bond rules.
Sec. 3022. Repeal of alternative minimum tax
limitations on tax-exempt housing bonds, low-income housing tax credit, and
rehabilitation credit.
Sec. 3023. Bonds guaranteed by Federal home
loan banks eligible for treatment as tax-exempt bonds.
Sec. 3024. Modification of rules pertaining to
FIRPTA nonforeign affidavits.
Sec. 3025. Modification of definition of
tax-exempt use property for purposes of the rehabilitation credit.
Sec. 3026. Extension of special rule for
mortgage revenue bonds for residences located in disaster areas.
TITLE II—Reforms related to real estate
investment trusts
Subtitle A—Foreign currency and other qualified
activities
Sec. 3031. Revisions to REIT income
tests.
Sec. 3032. Revisions to REIT asset
tests.
Sec. 3033. Conforming foreign currency
revisions.
Subtitle B—Taxable REIT
subsidiaries
Sec. 3041. Conforming taxable REIT subsidiary
asset test.
Subtitle C—Dealer sales
Sec. 3051. Holding period under safe
harbor.
Sec. 3052. Determining value of sales under
safe harbor.
Subtitle D—Health care REITs
Sec. 3061. Conformity for health care
facilities.
Subtitle E—Effective dates
Sec. 3071. Effective dates.
TITLE III—Revenue provisions
Subtitle A—General provisions
Sec. 3081. Election to accelerate amt and r and
d credits in lieu of bonus depreciation.
Sec. 3082. Certain GO Zone
incentives.
Subtitle B—Revenue offsets
Sec. 3091. Returns relating to payments made in
settlement of payment card and third party network transactions.
Sec. 3092. Gain from sale of principal
residence allocated to nonqualified use not excluded from income.
Sec. 3093. Increase in information return
penalties.
Sec. 3094. Increase in penalty for failure to
file S corporation returns.
Sec. 3095. Increase in penalty for failure to
file partnership returns.
Sec. 3096. Increase in minimum penalty on
failure to file a return of tax.
A
1001.This division may be
cited as the Federal Housing Finance
Regulatory Reform Act of 2008
.
1002.
(a)Federal safety and
soundness act definitionsSection 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502) is
amended—
(1)in each of paragraphs
(8), (9), (10), and (19), by striking Secretary
each place that
term appears and inserting Director
;
(2)by redesignating
paragraphs (16) through (19) as paragraphs (21) through (24),
respectively;
(3)by striking paragraphs
(13) through (15) and inserting the following:
(19)The term Office of Finance means the Office
of Finance of the Federal Home Loan Bank System (or any successor
thereto).
(20)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; and
(C)any Federal Home Loan
Bank.
;
(4)by redesignating
paragraphs (11) and (12) as paragraphs (17) and (18), respectively;
(5)by redesignating
paragraph (7) as paragraph (12);
(6)by redesignating
paragraphs (8) through (10) as paragraphs (14) through (16),
respectively;
(7)in paragraph (5)—
(A)by striking
(5)
and inserting (9)
; and
(B)by striking Office
of Federal Housing Enterprise Oversight of the Department of Housing and Urban
Development
and inserting Federal Housing Finance
Agency
;
(8)by redesignating
paragraph (6) as paragraph (10);
(9)by redesignating
paragraphs (2) through (4) as paragraphs (5) through (7), respectively;
(10)by inserting after
paragraph (7), as redesignated, the following:
(8)Default; in danger of
default
(A)The
term default means, with respect to a regulated entity, any
adjudication or other official determination by any court of competent
jurisdiction, or the Agency, pursuant to which a conservator, receiver,
limited-life regulated entity, or legal custodian is appointed for a regulated
entity.
(B)The term in danger of default means a
regulated entity with respect to which, in the opinion of the Agency—
(i)the regulated entity is
not likely to be able to pay the obligations of the regulated entity in the
normal course of business; or
(ii)the regulated
entity—
(I)has incurred or is likely
to incur losses that will deplete all or substantially all of its capital;
and
(II)there is no reasonable
prospect that the capital of the regulated entity will be
replenished.
;
(11)by inserting after
paragraph (1) the following:
(2)The
term Agency
means the Federal Housing Finance Agency established
under section 1311.
(3)The term authorizing statutes means—
(A)the Federal National
Mortgage Association Charter Act;
(B)the Federal Home Loan
Mortgage Corporation Act; and
(C)the Federal Home Loan
Bank Act.
(4)The
term Board means the Federal Housing Finance Oversight Board
established under section
1313A.
;
(12)by inserting after
paragraph (10), as redesignated by this section, the following:
(11)The term entity-affiliated party means—
(A)any director, officer,
employee, or controlling stockholder of, or agent for, a regulated
entity;
(B)any shareholder,
affiliate, consultant, or joint venture partner of a regulated entity, and any
other person, as determined by the Director (by regulation or on a case-by-case
basis) that participates in the conduct of the affairs of a regulated entity,
provided that a member of a Federal Home Loan Bank shall not be deemed to have
participated in the affairs of that Bank solely by virtue of being a
shareholder of, and obtaining advances from, that Bank;
(C)any independent
contractor for a regulated entity (including any attorney, appraiser, or
accountant), if—
(i)the independent
contractor knowingly or recklessly participates in—
(I)any violation of any law
or regulation;
(II)any breach of fiduciary
duty; or
(III)any unsafe or unsound
practice; and
(ii)such violation, breach,
or practice caused, or is likely to cause, more than a minimal financial loss
to, or a significant adverse effect on, the regulated entity;
(D)any not-for-profit
corporation that receives its principal funding, on an ongoing basis, from any
regulated entity; and
(E)the Office of
Finance.
;
(13)by inserting after
paragraph (12), as redesignated by this section, the following:
(13)Limited-life regulated
entityThe term limited-life regulated entity means
an entity established by the Agency under section 1367(i) with respect to a
Federal Home Loan Bank in default or in danger of default or with respect to an
enterprise in default or in danger of
default.
;
and
(14)by adding at the end the
following:
(25)The
term violation includes any action (alone or in combination with
another or others) for or toward causing, bringing about, participating in,
counseling, or aiding or abetting a
violation.
.
(b)As used in this Act, unless otherwise specified—
(1)the term
Agency means the Federal Housing Finance Agency;
(2)the term
Director means the Director of the Agency; and
(3)the terms
enterprise, regulated entity, and authorizing
statutes have the same meanings as in section 1303 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by
this Act.
<enum>I</enum><header>Reform of regulation of
enterprises</header>
<subtitle id="ID067B602C66D743D294F4723FE6CEF059"><enum>A</enum><header>Improvement of safety and
soundness supervision</header>
<section id="ID2ACF112474754BA3B932EF001A6D4E62"><enum>1101.</enum><header>Establishment of the
Federal Housing Finance Agency</header><text display-inline="no-display-inline">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 by
striking sections 1311 and 1312 and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDD80F8F4CD12A444AB8677C8C8ABF2935" reported-display-style="italic" style="OLC">
<section id="IDE3B867CB3BA643EB9EE1223510431EEB"><enum>1311.</enum><header>Establishment of the
Federal Housing Finance Agency</header>
<subsection id="IDA90CB244342D49F1AA883ABB8D2EA096"><enum>(a)</enum><header>Establishment</header><text>There
is established the Federal Housing Finance Agency, which shall be an
independent agency of the Federal Government.</text>
</subsection><subsection id="ID279318C18AD7401CB8809438D6C1696A"><enum>(b)</enum><header>General supervisory and
regulatory authority</header>
<paragraph id="IDFF8F879A5C8342F19EF8A48806FC105A"><enum>(1)</enum><header>In
general</header><text>Each regulated entity shall, to the extent provided in
this title, be subject to the supervision and regulation of the Agency.</text>
</paragraph><paragraph id="IDC04D2BEEFBE8466B8C17FBB63E5876D7"><enum>(2)</enum><header>Authority over fannie
mae, freddie mac, the federal home loan banks, and the office of
finance</header><text>The Director shall have general regulatory authority over
each regulated entity and the Office of Finance, and shall exercise such
general regulatory authority, including such duties and authorities set forth
under section 1313, to ensure that the purposes of this Act, the authorizing
statutes, and any other applicable law are carried out.</text>
</paragraph></subsection><subsection id="ID073ADE8EF7C04351B20E8B5DE2483650"><enum>(c)</enum><header>Savings
provision</header><text>The authority of the Director to take actions under
subtitles B and C shall not in any way limit the general supervisory and
regulatory authority granted to the Director under subsection (b).</text>
</subsection></section><section id="IDCDFDCE99B7D74558A1B9696504509EA6"><enum>1312.</enum><header>Director</header>
<subsection id="ID58A7C35EF4114B6EA54624C17D42D73D"><enum>(a)</enum><header>Establishment of
position</header><text>There is established the position of the Director of the
Agency, who shall be the head of the Agency.</text>
</subsection><subsection id="ID9B252B7B35774B0FB2790308F5903A1B"><enum>(b)</enum><header>Appointment;
term</header>
<paragraph id="ID4D7C5FC81D664B3DB34D12E8EE8A75FD"><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 are citizens of the United
States, have a demonstrated understanding of financial management or oversight,
and have a demonstrated understanding of capital markets, including the
mortgage securities markets and housing finance.</text>
</paragraph><paragraph id="IDABF4A8FCA0EE47A382A17ECFF2BDFF69"><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="ID7087217D5CA04578BE4B94DA88EA28A3"><enum>(3)</enum><header>Vacancy</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>
</paragraph><paragraph id="ID5D91E113C9234944BB365D7787F5B6CB"><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="ID26CF1468050B42EDA8811259B6A2012A"><enum>(5)</enum><header>Transitional
provision</header><text>Notwithstanding paragraphs (1) and (2), during the
period beginning on the effective date of the <short-title>Federal Housing Finance Regulatory Reform Act of
2008</short-title>, and ending on the date on which the Director is appointed
and confirmed, the person serving as the Director of the Office of Federal
Housing Enterprise Oversight of the Department of Housing and Urban Development
on that effective date shall act for all purposes as, and with the full powers
of, the Director.</text>
</paragraph></subsection><subsection id="ID342D29B7F6254AE1B8AA25FFC787A1CF"><enum>(c)</enum><header>Deputy director of the
division of enterprise regulation</header>
<paragraph id="ID8BA15EA9B05A498180083E1E21DC4893"><enum>(1)</enum><header>In
general</header><text>The Agency shall have a Deputy Director of the Division
of Enterprise Regulation, who shall be designated by the Director from among
individuals who are citizens of the United States, have a demonstrated
understanding of financial management or oversight, and have a demonstrated
understanding of mortgage securities markets and housing finance.</text>
</paragraph><paragraph id="IDD86E132482E04CD79D0B7C60606C9C4C"><enum>(2)</enum><header>Functions</header><text>The
Deputy Director of the Division of Enterprise Regulation shall have such
functions, powers, and duties with respect to the oversight of the enterprises
as the Director shall prescribe.</text>
</paragraph></subsection><subsection id="IDA773196435624B21BD3E921B8C73D6D0"><enum>(d)</enum><header>Deputy Director Of The
Division Of Federal Home Loan Bank Regulation</header>
<paragraph id="IDB00C075416214C0BB6F5E9E1FAC01340"><enum>(1)</enum><header>In
general</header><text>The Agency shall have a Deputy Director of the Division
of Federal Home Loan Bank Regulation, who shall be designated by the Director
from among individuals who are citizens of the United States, have a
demonstrated understanding of financial management or oversight, and have a
demonstrated understanding of the Federal Home Loan Bank System and housing
finance.</text>
</paragraph><paragraph id="ID2AF02616D59340A08740DB00CEE67985"><enum>(2)</enum><header>Functions</header><text>The
Deputy Director of the Division of Federal Home Loan Bank Regulation shall have
such functions, powers, and duties with respect to the oversight of the Federal
Home Loan Banks as the Director shall prescribe.</text>
</paragraph></subsection><subsection id="IDCE94A1E16A28498598368CEC1C2D0499"><enum>(e)</enum><header>Deputy director for
housing mission and goals</header>
<paragraph id="ID922A111475D2472EB88A3D65195AEB19"><enum>(1)</enum><header>In
general</header><text>The Agency shall have a Deputy Director for Housing
Mission and Goals, who shall be designated by the Director from among
individuals who are citizens of the United States, and have a demonstrated
understanding of the housing markets and housing finance.</text>
</paragraph><paragraph id="IDFCDF4BD35C4840F7A36C6642A4177EB5"><enum>(2)</enum><header>Functions</header><text>The
Deputy Director for Housing Mission and Goals shall have such functions,
powers, and duties with respect to the oversight of the housing mission and
goals of the enterprises, and with respect to oversight of the housing finance
and community and economic development mission of the Federal Home Loan Banks,
as the Director shall prescribe.</text>
</paragraph><paragraph id="id717AE412BE22471D90BF7610ADDE59A7"><enum>(3)</enum><header>Considerations</header><text>In
exercising such functions, powers, and duties, the Deputy Director for Housing
Mission and Goals shall consider the differences between the enterprises and
the Federal Home Loan Banks, including those described in section
1313(f).</text>
</paragraph></subsection><subsection id="IDF02395E924B84948BC38CADB08F39022"><enum>(f)</enum><header>Acting
director</header><text>In the event of the death, resignation, sickness, or
absence of the Director, the President shall designate either the Deputy
Director of the Division of Enterprise Regulation, the Deputy Director of the
Division of Federal Home Loan Bank Regulation, or the Deputy Director for
Housing Mission and Goals, to serve as acting Director until the return of the
Director, or the appointment of a successor pursuant to subsection (b).</text>
</subsection><subsection id="IDAB5B60D89979408EA3CEBA7901995819"><enum>(g)</enum><header>Limitations</header><text>The
Director and each of the Deputy Directors may not—</text>
<paragraph id="IDA3C09CCCF9D34B48BBCFB2637BC6B086"><enum>(1)</enum><text>have any direct or
indirect financial interest in any regulated entity or entity-affiliated
party;</text>
</paragraph><paragraph id="ID9CA8D23132B64B4BA10B9C8FAC9A97E8"><enum>(2)</enum><text>hold any office,
position, or employment in any regulated entity or entity-affiliated party;
or</text>
</paragraph><paragraph id="ID31AE9BE282F241FA8AD972343929A90A"><enum>(3)</enum><text>have served as an
executive officer or director of any regulated entity or entity-affiliated
party at any time during the 3-year period preceding the date of appointment or
designation of such individual as Director or Deputy Director, as
applicable.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDCA267389E2844443BEDD680F926AE6EE"><enum>1102.</enum><header>Duties and
authorities of the Director</header>
<subsection id="ID57D64D48329247CFB9EE66FFFD30B730"><enum>(a)</enum><header>In
general</header><text>Section 1313 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4513">12 U.S.C. 4513</external-xref>) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID41A424C8759142EF9DAE2E856AE0EEB7" reported-display-style="italic" style="OLC">
<section id="IDB2A1EC888DF8424FA7AF019F696FF332"><enum>1313.</enum><header>Duties and
authorities of director</header>
<subsection id="IDC55A55866DEB4F48AA6F735EC696A160"><enum>(a)</enum><header>Duties</header>
<paragraph id="ID479F3652730840279FECBAC033C7EC6B"><enum>(1)</enum><header>Principal
duties</header><text>The principal duties of the Director shall be—</text>
<subparagraph id="ID65CEB2B23B3D4785B5103AB902A82507"><enum>(A)</enum><text>to oversee the prudential
operations of each regulated entity; and</text>
</subparagraph><subparagraph id="IDCFEAAFA875684DC99FC1E3117A810585"><enum>(B)</enum><text>to ensure that—</text>
<clause id="ID8B849C1CE0C740868FC93A042654B995"><enum>(i)</enum><text>each regulated entity
operates in a safe and sound manner, including maintenance of adequate capital
and internal controls;</text>
</clause><clause id="ID32EF84BE58D44BB183EF0D0EE7C27425"><enum>(ii)</enum><text>the operations and
activities of each regulated entity foster liquid, efficient, competitive, and
resilient national housing finance markets (including activities relating to
mortgages on housing for low- and moderate-income families involving a
reasonable economic return that may be less than the return earned on other
activities);</text>
</clause><clause id="IDB69C30B615D24F55924B65467A39A43B"><enum>(iii)</enum><text>each regulated entity
complies with this title and the rules, regulations, guidelines, and orders
issued under this title and the authorizing statutes;</text>
</clause><clause id="ID960CD192103B4926BA39E73BD994994D"><enum>(iv)</enum><text>each regulated entity
carries out its statutory mission only through activities that are authorized
under and consistent with this title and the authorizing statutes; and</text>
</clause><clause id="IDDF129CF4C7E24A78AC7B6810389527D9"><enum>(v)</enum><text>the activities of each
regulated entity and the manner in which such regulated entity is operated are
consistent with the public interest.</text>
</clause></subparagraph></paragraph><paragraph id="ID3AB1708D7CB440F89EEEC0D6C5AD2C30"><enum>(2)</enum><header>Scope of
authority</header><text>The authority of the Director shall include the
authority—</text>
<subparagraph id="ID5278395C4B694750A3CFD56999E70E9A"><enum>(A)</enum><text>to review and, if
warranted based on the principal duties described in paragraph (1), reject any
acquisition or transfer of a controlling interest in a regulated entity;
and</text>
</subparagraph><subparagraph id="ID405B252079B0406BB5DB04CE8632988E"><enum>(B)</enum><text>to exercise such
incidental powers as may be necessary or appropriate to fulfill the duties and
responsibilities of the Director in the supervision and regulation of each
regulated entity.</text>
</subparagraph></paragraph></subsection><subsection id="ID4BDF7E8839514D1289C79C9359E2F80C"><enum>(b)</enum><header>Delegation of
authority</header><text>The Director may delegate to officers and employees of
the Agency any of the functions, powers, or duties of the Director, as the
Director considers appropriate.</text>
</subsection><subsection id="IDFC3E1ABB78574735A26BBD5898C1C6A5"><enum>(c)</enum><header>Litigation
authority</header>
<paragraph id="IDB0FBE100D6024258A654EFF5DCBD76AF"><enum>(1)</enum><header>In
general</header><text>In enforcing any provision of this title, any regulation
or order prescribed under this title, or any other provision of law, rule,
regulation, or order, or in any other action, suit, or proceeding to which the
Director is a party or in which the Director is interested, and in the
administration of conservatorships and receiverships, the Director may act in
the Director's own name and through the Director's own attorneys.</text>
</paragraph><paragraph id="ID55FCF918FE6B40958B81E48EB3AA9981"><enum>(2)</enum><header>Subject to
suit</header><text>Except as otherwise provided by law, the Director shall be
subject to suit (other than suits on claims for money damages) by a regulated
entity with respect to any matter under this title or any other applicable
provision of law, rule, order, or regulation under this title, in the United
States district court for the judicial district in which the regulated entity
has its principal place of business, or in the United States District Court for
the District of Columbia, and the Director may be served with process in the
manner prescribed by the Federal Rules of Civil
Procedure.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID390B29BEA8BC4719B81A6324FBFB62F7"><enum>(b)</enum><header>Independence in
congressional testimony and recommendations</header><text>Section 111 of Public
Law 93–495 (<external-xref legal-doc="usc" parsable-cite="usc/12/250">12 U.S.C. 250</external-xref>) is amended by striking <quote>the Federal Housing
Finance Board</quote> and inserting <quote>the Director of the Federal Housing
Finance Agency</quote>.</text>
</subsection></section><section id="IDEF7B2C9893794F46A5A658E32208BEF0"><enum>1103.</enum><header>Federal Housing
Finance Oversight Board</header>
<subsection id="ID28F36F9D1AB5478EA0FD3F4D3127D3E5"><enum>(a)</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 by inserting after
section 1313 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDA025C32911834A9CBC2687FC09BD751E" reported-display-style="italic" style="OLC">
<section id="ID01CDF5447CBD4517A3700A59013B8724"><enum>1313A.</enum><header>Federal Housing
Finance Oversight Board</header>
<subsection id="ID401D0141AB72498EA37F6231A190E0C2"><enum>(a)</enum><header>In
general</header><text>There is established the Federal Housing Finance
Oversight Board, which shall advise the Director with respect to overall
strategies and policies in carrying out the duties of the Director under this
title.</text>
</subsection><subsection id="IDBDF177057C364E6F837D1DDA8756E0F2"><enum>(b)</enum><header>Limitations</header><text>The
Board may not exercise any executive authority, and the Director may not
delegate to the Board any of the functions, powers, or duties of the
Director.</text>
</subsection><subsection id="IDF3DADCC07B6E4CFCA39FAA12238A20B3"><enum>(c)</enum><header>Composition</header><text>The
Board shall be comprised of 4 members, of whom—</text>
<paragraph id="ID02BC38C2456E476F90272B03EDD06484"><enum>(1)</enum><text>1 member shall be the
Secretary of the Treasury;</text>
</paragraph><paragraph id="ID6E81B1760D1F4470B5D27746CCE3C134"><enum>(2)</enum><text>1 member shall be the
Secretary of Housing and Urban Development;</text>
</paragraph><paragraph id="ID93C502DEB86F4ED7B9A592C667A0632F"><enum>(3)</enum><text>1 member shall be the
Chairman of the Securities and Exchange Commission; and</text>
</paragraph><paragraph id="IDDDAB2F9A73DF48388B92ABB2A05060B9"><enum>(4)</enum><text>1 member shall be the
Director, who shall serve as the Chairperson of the Board.</text>
</paragraph></subsection><subsection id="ID8DA957B016BA4F969D3AD817FB64841A"><enum>(d)</enum><header>Meetings</header>
<paragraph id="IDCFF877B645CF4903894B151E0A4B72D9"><enum>(1)</enum><header>In
general</header><text>The Board shall meet upon notice by the Director, but in
no event shall the Board meet less frequently than once every 3 months.</text>
</paragraph><paragraph id="ID23E9CCD1EE45480395DAF30BD2D3E4DF"><enum>(2)</enum><header>Special
meetings</header><text>Either the Secretary of the Treasury, the Secretary of
Housing and Urban Development, or the Chairman of the Securities and Exchange
Commission may, upon giving written notice to the Director, require a special
meeting of the Board.</text>
</paragraph></subsection><subsection id="IDF505AE0E564840EBA97147740C398049"><enum>(e)</enum><header>Testimony</header><text>On
an annual basis, the Board shall testify before Congress regarding—</text>
<paragraph id="ID338A7F4331984F0DBF5E09C87A5EEDAC"><enum>(1)</enum><text>the safety and soundness
of the regulated entities;</text>
</paragraph><paragraph id="IDB6733C79C7AB4D7F8032A9C15EBE6B85"><enum>(2)</enum><text>any material deficiencies
in the conduct of the operations of the regulated entities;</text>
</paragraph><paragraph id="IDB0CC3906A1524155AE36FF6BED96FDA7"><enum>(3)</enum><text>the overall operational
status of the regulated entities;</text>
</paragraph><paragraph id="ID0C3A420CCED1459991FB22A2EC3099DB"><enum>(4)</enum><text>an evaluation of the
performance of the regulated entities in carrying out their respective
missions;</text>
</paragraph><paragraph id="ID203038FD323E4D59AADD321ED125A32D"><enum>(5)</enum><text>operations, resources,
and performance of the Agency; and</text>
</paragraph><paragraph id="IDBABE50C61CCF4A939FE82E59BBFBC374"><enum>(6)</enum><text>such other matters
relating to the Agency and its fulfillment of its mission, as the Board
determines
appropriate.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0DA1DB7A425E41429244011C81874D75"><enum>(b)</enum><header>Annual report of the
director</header><text>Section 1319B(a) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521(a)</external-xref>) is
amended—</text>
<paragraph id="IDFC0FE82B13D74A71B047E0879B020F77"><enum>(1)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</paragraph><paragraph id="ID3F4AA7C09B9240D0879EAD7CC9513881"><enum>(2)</enum><text>by striking
<quote>enterprises</quote> each place that term appears and inserting
<quote>regulated entities</quote>;</text>
</paragraph><paragraph id="IDE2CDBAB34BDE415C955B09F38F91F6C7"><enum>(3)</enum><text>in paragraph (3), by
striking <quote>; and</quote> and inserting a semicolon;</text>
</paragraph><paragraph id="ID1F3E4AD56C884499A3CA6FE815DA1081"><enum>(4)</enum><text>in paragraph (4), by
striking <quote>1994.</quote> and inserting <quote>1994; and</quote>;
and</text>
</paragraph><paragraph id="ID1C531A2AD29B4E45AF92E8C8B0433F74"><enum>(5)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID0A88AC464FF5416CA73918007215DB26" reported-display-style="italic" style="OLC">
<paragraph id="IDF7119BB11C1D417E9193F2C5787C88CA"><enum>(5)</enum><text>the assessment of the
Board or any of its members with respect to—</text>
<subparagraph id="IDB8B9876F494D48279739BF430D9606C0"><enum>(A)</enum><text>the safety and soundness
of the regulated entities;</text>
</subparagraph><subparagraph id="ID611C6273BE1D433C99D6303E6E3E045B"><enum>(B)</enum><text>any material deficiencies
in the conduct of the operations of the regulated entities;</text>
</subparagraph><subparagraph id="ID48F728E971F34977BFDE9DB8A9AE1ADA"><enum>(C)</enum><text>the overall operational
status of the regulated entities; and</text>
</subparagraph><subparagraph id="ID42F8068080194E0198ECC505E8C4074E"><enum>(D)</enum><text>an evaluation of the
performance of the regulated entities in carrying out their respective
missions;</text>
</subparagraph></paragraph><paragraph id="IDC0153294CDD04380B92A8F426B5D0E6C"><enum>(6)</enum><text>operations, resources,
and performance of the Agency; and</text>
</paragraph><paragraph id="ID5FB88AB7DCBE470398D42DFC7F761F3F"><enum>(7)</enum><text>such other matters
relating to the Agency and the fulfillment of its
mission.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID3E28C4294B514616A70EDA06D64FF9D5"><enum>1104.</enum><header>Authority to require
reports by regulated entities</header>
<subsection id="ID55290C224A2E4CE98A66A1A7A8009C75"><enum>(a)</enum><header>In
general</header><text>Section 1314 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>) is amended—</text>
<paragraph id="ID2FC2623242044760B521D24AC474B09A"><enum>(1)</enum><text>in the section heading,
by striking <quote><header-in-text level="section">enterprises</header-in-text></quote> and inserting
<quote><header-in-text level="section">regulated
entities</header-in-text></quote>;</text>
</paragraph><paragraph id="IDDDD049C6544D48BEB28383DA86F0446E"><enum>(2)</enum><text>by striking <quote>an
enterprise</quote> each place that term appears and inserting <quote>a
regulated entity</quote>;</text>
</paragraph><paragraph id="IDA665B83A70174D9D9EA18B49022B0B59"><enum>(3)</enum><text>by striking <quote>the
enterprise</quote> and inserting <quote>the regulated entity</quote>;</text>
</paragraph><paragraph id="ID92B965DBBFA84193982EC1F5024B84DE"><enum>(4)</enum><text>in subsection (a)—</text>
<subparagraph id="ID654BA4E5DC6D45938C936F15FF179413"><enum>(A)</enum><text>by striking the
subsection heading and all that follows through <quote>and operations</quote>
in paragraph (1) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID700EAA89F9344AC6997B22FA2FA02C54" reported-display-style="italic" style="OLC">
<subsection id="IDE5FB5AF8F19146BEBA6926610C017202"><enum>(a)</enum><header>Regular and special
reports</header>
<paragraph id="IDBD74B53C638F4DE6B85D48A9FB0C938B"><enum>(1)</enum><header>Regular
reports</header><text>The Director may require, by general or specific orders,
a regulated entity to submit regular reports, including financial statements
determined on a fair value basis, on the condition (including financial
condition), management, activities, or operations of the regulated entity, as
the Director considers appropriate</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID26F553C9BFD646BDB0B9F4AF2A8B4251"><enum>(B)</enum><text>in paragraph (2)—</text>
<clause id="ID17DD616BCB8343949798EBF30436BA8B"><enum>(i)</enum><text>by inserting <quote>, by
general or specific orders,</quote> after <quote>may also require</quote>;
and</text>
</clause><clause id="IDC657933E6EF547CEBC9D2FA9035A707D"><enum>(ii)</enum><text>by striking
<quote>whenever</quote> and inserting <quote>on any of the topics specified in
paragraph (1) or any other relevant topics, if</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="IDFB5CEC41BD7E4E99854F42C12D55FD90"><enum>(5)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDD458C66C91E64CA4A4F3B2B85BB8013C" reported-display-style="italic" style="OLC">
<subsection commented="no" id="ID28473101786D46A1AF44B33C3D5E66A6"><enum>(c)</enum><header>Penalties for failure
To make reports</header>
<paragraph commented="no" id="ID3B410C086A26483E96696C5A23DA01D3"><enum>(1)</enum><header>Violations</header><text>It
shall be a violation of this section for any regulated entity—</text>
<subparagraph commented="no" id="ID84CDD73A166D41C6B0C88FAE55877A18"><enum>(A)</enum><text>to fail to make,
transmit, or publish any report or obtain any information required by the
Director under this section, section 309(k) of the Federal National Mortgage
Association Charter Act, section 307(c) of the Federal Home Loan Mortgage
Corporation Act, or section 20 of the Federal Home Loan Bank Act, within the
period of time specified in such provision of law or otherwise by the Director;
or</text>
</subparagraph><subparagraph commented="no" id="ID5952268220484E19AC3B0CC5F9B5A7FC"><enum>(B)</enum><text>to submit or publish any
false or misleading report or information under this section.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID9ADA063DE24744AABFCC58814345EF25"><enum>(2)</enum><header>Penalties</header>
<subparagraph commented="no" id="ID456913618E664230A2A8E01ECC229EA8"><enum>(A)</enum><header>First tier</header>
<clause commented="no" id="ID3B360A7BDE0841DFAF7FD3C2519E16D5"><enum>(i)</enum><header>In
general</header><text>A violation described in paragraph (1) shall be subject
to a penalty of not more than $2,000 for each day during which such violation
continues, in any case in which—</text>
<subclause commented="no" id="ID42EBCF9F444D4B2992BD0DE1ACE6DD40"><enum>(I)</enum><text>the subject regulated
entity maintains procedures reasonably adapted to avoid any inadvertent error
and the violation was unintentional and a result of such an error; or</text>
</subclause><subclause commented="no" id="IDCE17589D4B1B472CBB3809986684672B"><enum>(II)</enum><text>the violation was an
inadvertent transmittal or publication of any report which was minimally
late.</text>
</subclause></clause><clause commented="no" id="IDF5A3FE5DABA44BC889D207E2C8735F83"><enum>(ii)</enum><header>Burden of
proof</header><text>For purposes of this subparagraph, the regulated entity
shall have the burden of proving that the error was inadvertent or that a
report was inadvertently transmitted or published late.</text>
</clause></subparagraph><subparagraph commented="no" id="ID3C8569B1BC53496098E16E1FDBE011CF"><enum>(B)</enum><header>Second
tier</header><text>A violation described in paragraph (1) shall be subject to a
penalty of not more than $20,000 for each day during which such violation
continues or such false or misleading information is not corrected, in any case
that is not addressed in subparagraph (A) or (C).</text>
</subparagraph><subparagraph commented="no" id="ID2C41632B1A0B4F75B561F1B58A57EF45"><enum>(C)</enum><header>Third
tier</header><text>A violation described in paragraph (1) shall be subject to a
penalty of not more than $1,000,000 per day for each day during which such
violation continues or such false or misleading information is not corrected,
in any case in which the subject regulated entity committed such violation
knowingly or with reckless disregard for the accuracy of any such information
or report.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID3CC2196FE04D45DD86DD2241D045DE2A"><enum>(3)</enum><header>Assessments</header><text>Any
penalty imposed under this subsection shall be in lieu of a penalty under
section 1376, but shall be assessed and collected by the Director in the manner
provided in section 1376 for penalties imposed under that section, and any such
assessment (including the determination of the amount of the penalty) shall be
otherwise subject to the provisions of section 1376.</text>
</paragraph><paragraph commented="no" id="IDD3027CE629E445F9A582D8F76CBAA776"><enum>(4)</enum><header>Hearing</header><text>A
regulated entity against which a penalty is assessed under this section shall
be afforded an agency hearing if the regulated entity submits a request for a
hearing not later than 20 days after the date of the issuance of the notice of
assessment. Section 1374 shall apply to any such
proceedings.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID31F7D43BA869423C9ADDB8F9B8D2AE66"><enum>(b)</enum><header>Conforming
amendment</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 by striking sections
1327 and 1328.</text>
</subsection></section><section id="IDAD98DA5792724ACB91E4911339218D7D"><enum>1105.</enum><header>Examiners and
accountants; authority to contract for reviews of regulated entities;
ombudsman</header>
<subsection id="ID84A9DB9EC9BF4086B0B54144F924F079"><enum>(a)</enum><header>In
general</header><text>Section 1317 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended—</text>
<paragraph id="IDFACC5C7BB58E4540A49D49D1E2FFC717"><enum>(1)</enum><text>in subsection (a), by
striking <quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</paragraph><paragraph id="IDA3AB9EDEFE014AB2A7C562DC6B562101"><enum>(2)</enum><text>in subsection (b)—</text>
<subparagraph id="IDA4731A26BC2345B1B8DB7A52D310020D"><enum>(A)</enum><text>by inserting <quote>of a
regulated entity</quote> after <quote>under this section</quote>; and</text>
</subparagraph><subparagraph id="ID2190DF0D50184DB0BFB7A0622709ACEB"><enum>(B)</enum><text>by striking <quote>to
determine the condition of an enterprise for the purpose of ensuring its
financial safety and soundness</quote> and inserting <quote>or
appropriate</quote>;</text>
</subparagraph></paragraph><paragraph id="IDB1091D20E03B4BD59BF87DDA0FA1515C"><enum>(3)</enum><text>in subsection (c), in the
second sentence, by inserting before the period <quote>to conduct examinations
under this section</quote>;</text>
</paragraph><paragraph id="ID5E67632251964AAAB67360CFFE3072BC"><enum>(4)</enum><text>by redesignating
subsections (d) through (f) as subsections (e) through (g), respectively;
and</text>
</paragraph><paragraph id="ID2A7C5C37226945CCBEC4A7502940D9F4"><enum>(5)</enum><text>by inserting after
subsection (c) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID129A30A200124D489E34C966E85CEBD9" reported-display-style="italic" style="OLC">
<subsection id="ID65800B3616EE4E12891372CF3CB6505D"><enum>(d)</enum><header>Inspector
general</header><text>There shall be within the Agency an Inspector General,
who shall be appointed in accordance with section 3(a) of the Inspector General
Act of
1978.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID609C0CCB3CFE4D5BA1ACAB4141B25DE9"><enum>(b)</enum><header>Direct hire authority
To hire accountants, economists, and examiners</header><text>Section 1317 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4517) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID556D4F18315F496598B1721A24A11135" reported-display-style="italic" style="OLC">
<subsection id="ID726ECD8D5694411C9CAFE3CBA2890D68"><enum>(h)</enum><header>Appointment of
accountants, economists, and examiners</header>
<paragraph id="ID40D6077603CD4A6DA0CA94630520237D"><enum>(1)</enum><header>Applicability</header><text>This
section shall apply with respect to any position of examiner, accountant,
economist, and specialist in financial markets and in technology at the Agency,
with respect to supervision and regulation of the regulated entities, that is
in the competitive service.</text>
</paragraph><paragraph id="ID50D9D1C3AD8240A0BF468A300CDA8F70"><enum>(2)</enum><header>Appointment
authority</header><text>The Director may appoint candidates to any position
described in paragraph (1)—</text>
<subparagraph id="ID16CBCAADA1AD4B6B887CF91B02B239F4"><enum>(A)</enum><text>in accordance with the
statutes, rules, and regulations governing appointments in the excepted
service; and</text>
</subparagraph><subparagraph id="ID2887314EC8E848A2AD9807FDA1661F2D"><enum>(B)</enum><text>notwithstanding any
statutes, rules, and regulations governing appointments in the competitive
service.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDA380E34875884B25A8EBA8D82C52F142"><enum>(c)</enum><header>Amendments to inspector
general act</header><text>Section 11 of the Inspector General Act of 1978 (5
U.S.C. App.) is amended—</text>
<paragraph id="ID2B24692159AE43D1BF6611EF4504AB5B"><enum>(1)</enum><text>in paragraph (1), by
inserting <quote>; the Director of the Federal Housing Finance Agency</quote>
after <quote>Social Security Administration</quote>; and</text>
</paragraph><paragraph id="ID0361E77DB019438781BFC93D4061838D"><enum>(2)</enum><text>in paragraph (2), by
inserting <quote>, the Federal Housing Finance Agency</quote> after
<quote>Social Security Administration</quote>.</text>
</paragraph></subsection><subsection id="IDF62E7E871BAA46B1A0E2DAAD520199C2"><enum>(d)</enum><header>Authority To contract
for reviews of regulated entities</header><text>Section 1319 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4519">12 U.S.C. 4519</external-xref>)
is amended—</text>
<paragraph id="id9C6B8F8F598D42C58AE20F0FD3E66FFF"><enum>(1)</enum><text>in the section heading,
by striking <quote><header-in-text level="section">enterprises by rating
organization</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">regulated entities</header-in-text></quote>;
and</text>
</paragraph><paragraph id="idE70A629416F84CCD874083CCF5FA8319"><enum>(2)</enum><text>by striking
<quote>enterprises</quote> and inserting <quote>regulated
entities</quote>.</text>
</paragraph></subsection><subsection id="id52248FE391924B1CA83BD420113B6495"><enum>(e)</enum><header>Office of the
Ombudsman</header><text display-inline="yes-display-inline">Section 1317 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4517) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2467C5CFBCF740D2901653277489A937" reported-display-style="italic" style="OLC">
<subsection id="id113297CA67EF430AA3ED193D73369C6C"><enum>(i)</enum><header>Ombudsman</header><text display-inline="yes-display-inline">The Director shall establish, by
regulation, an Office of the Ombudsman within the Agency, which shall be
responsible for considering complaints and appeals, from any regulated entity
and any person that has a business relationship with a regulated entity,
regarding any matter relating to the regulation and supervision of such
regulated entity by the Agency. The regulation issued by the Director under
this subsection shall specify the authority and duties of the Office of the
Ombudsman.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HE3DF85555EBC476BB888B42800D4619E"><enum>1106.</enum><header>Assessments</header><text display-inline="no-display-inline">Section 1316 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4516">12 U.S.C. 4516</external-xref>) is
amended—</text>
<paragraph id="HE5D57EE67D294F4DB95000BF5A0DF7F"><enum>(1)</enum><text>by striking subsection
(a) and inserting the following:</text>
<quoted-block changed="added" id="H75ACF9BD6C3043B1BBC97E34C4A52154" reported-display-style="italic" style="OLC">
<subsection id="H2EF10054A30247A9886895004741AA61"><enum>(a)</enum><header>Annual
Assessments</header><text>The Director shall establish and collect from the
regulated entities annual assessments in an amount not exceeding the amount
sufficient to provide for reasonable costs (including administrative costs) and
expenses of the Agency, including—</text>
<paragraph id="H3D67D4CDA45A4AB3A8E24DF637888366"><enum>(1)</enum><text>the expenses of any
examinations under section 1317 of this Act and under section 20 of the
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text>
</paragraph><paragraph id="HFCA65AFB28124142910064006B71A0D9"><enum>(2)</enum><text>the expenses of obtaining
any reviews and credit assessments under section 1319;</text>
</paragraph><paragraph id="H8A5A2FC5AD614A34AE9DCE77D322833B"><enum>(3)</enum><text>such amounts in excess of
actual expenses for any given year as deemed necessary by the Director to
maintain a working capital fund in accordance with subsection (e); and</text>
</paragraph><paragraph id="id093CD07F524B4437A44ED213435DE70C"><enum>(4)</enum><text>the windup of the affairs
of the Office of Federal Housing Enterprise Oversight and the Federal Housing
Finance Board under title III of the <short-title>Federal
Housing Finance Regulatory Reform Act of
2008</short-title>.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE902A7229B3942709107282F3214C4AB"><enum>(2)</enum><text>in subsection (b)—</text>
<subparagraph id="HA09016B79672429F8298E34B6CD7F578"><enum>(A)</enum><text>by realigning the margins
of paragraph (2) two ems from the left, so as to align the left margin of such
paragraph with the left margins of paragraph (1);</text>
</subparagraph><subparagraph id="idE19089EBDD424798A60DC3395C2BDCF4"><enum>(B)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</text>
</subparagraph><subparagraph id="id0E612AE23E034B21B0C0CD28CEF0053A"><enum>(C)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id73DB9BF937084234A25EC4D52FE20600" reported-display-style="italic" style="OLC">
<paragraph id="idE12CF28D96854CCBB32B718DC57F86C3"><enum>(2)</enum><header>Separate treatment of
Federal Home Loan Bank and enterprise assessments</header><text>Assessments
collected from the enterprises shall not exceed the amounts sufficient to
provide for the costs and expenses described in subsection (a) relating to the
enterprises. Assessments collected from the Federal Home Loan Banks shall not
exceed the amounts sufficient to provide for the costs and expenses described
in subsection (a) relating to the Federal Home Loan
Banks.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCB6470C79B43409EBD1E3C09622DBA00"><enum>(3)</enum><text>by striking subsection
(c) and inserting the following:</text>
<quoted-block changed="added" id="HA3AB0834F37D46159D1CD857FB8ED5BB" reported-display-style="italic" style="OLC">
<subsection id="H81C0FAA0E2304B4E9E00BA3C9382298F"><enum>(c)</enum><header>Increased Costs of
Regulation</header>
<paragraph id="H41B16A7AAB7740E2A9DFFA69CBFCFEB"><enum>(1)</enum><header>Increase for inadequate
capitalization</header><text>The semiannual payments made pursuant to
subsection (b) by any regulated entity that is not classified (for purposes of
subtitle B) as adequately capitalized may be increased, as necessary, in the
discretion of the Director to pay additional estimated costs of regulation of
the regulated entity.</text>
</paragraph><paragraph id="H03210A7A6A584AC2A939D7315CB200EF"><enum>(2)</enum><header>Adjustment for
enforcement activities</header><text>The Director may adjust the amounts of any
semiannual payments for an assessment under subsection (a) that are to be paid
pursuant to subsection (b) by a regulated entity, as necessary in the
discretion of the Director, to ensure that the costs of enforcement activities
under this Act for a regulated entity are borne only by such regulated
entity.</text>
</paragraph><paragraph id="H8C0335B776E5477DA673296079DA51C7"><enum>(3)</enum><header>Additional assessment
for deficiencies</header><text>If at any time, as a result of increased costs
of regulation of a regulated entity that is not classified (for purposes of
subtitle B) as adequately capitalized or as the result of supervisory or
enforcement activities under this Act for a regulated entity, the amount
available from any semiannual payment made by such regulated entity pursuant to
subsection (b) is insufficient to cover the costs of the Agency with respect to
such entity, the Director may make and collect from such regulated entity an
immediate assessment to cover the amount of such deficiency for the semiannual
period. If, at the end of any semiannual period during which such an assessment
is made, any amount remains from such assessment, such remaining amount shall
be deducted from the assessment for such regulated entity for the following
semiannual
period.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC7AA36953209409E93E03552F8D9F12F"><enum>(4)</enum><text>in subsection (d), by
striking <quote>If</quote> and inserting <quote>Except with respect to amounts
collected pursuant to subsection (a)(3), if</quote>; and</text>
</paragraph><paragraph id="HFA97FB51AF33484E9EBBCF4CB2532D2F"><enum>(5)</enum><text>by striking subsections
(e) through (g) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H3457530C79674BAD893785287D9E067D" reported-display-style="italic" style="OLC">
<subsection id="H4DF76A8CE96F48F0AFD7A1DCABDDF546"><enum>(e)</enum><header>Working Capital
Fund</header><text>At the end of each year for which an assessment under this
section is made, the Director shall remit to each regulated entity any amount
of assessment collected from such regulated entity that is attributable to
subsection (a)(3) and is in excess of the amount the Director deems necessary
to maintain a working capital fund.</text>
</subsection><subsection id="H2348BB3D373B4298BE945B14529BCFEE"><enum>(f)</enum><header>Treatment of
Assessments</header>
<paragraph id="HC2D67BEB540A41BE88DC79D389B08900"><enum>(1)</enum><header>Deposit</header><text>Amounts
received by the Director from assessments under this section may be deposited
by the Director 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="H3EB001C5B3B04BEA8BD300F7164700F"><enum>(2)</enum><header>Not government
funds</header><text>The amounts received by the Director from any assessment
under this section shall not be construed to be Government or public funds or
appropriated money.</text>
</paragraph><paragraph id="HBE3876775F81427888119F65DD05C94B"><enum>(3)</enum><header>No apportionment of
funds</header><text>Notwithstanding any other provision of law, the amounts
received by the Director from any assessment under this section 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="H8AAF80BF4DFB400684A400C0B35F7B1E"><enum>(4)</enum><header>Use of
funds</header><text>The Director may use any amounts received by the Director
from assessments under this section for compensation of the Director and other
employees of the Agency and for all other expenses of the Director and the
Agency.</text>
</paragraph><paragraph id="HFC9C44F70EE54539A97109FBE603AF75"><enum>(5)</enum><header>Availability of
oversight fund amounts</header><text>Notwithstanding any other provision of
law, any amounts remaining in the Federal Housing Enterprises Oversight Fund
established under this section (as in effect before the effective date of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, and any amounts remaining from assessments on the
Federal Home Loan Banks pursuant to section 18(b) of the
<act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12
U.S.C. 1438(b)), shall, upon such effective date, be treated for purposes of
this subsection as amounts received from assessments under this section.</text>
</paragraph><paragraph id="HDA8D3630A7464A05A9009268F3A6E780"><enum>(6)</enum><header>Treasury
investments</header>
<subparagraph id="HB937941ABAB543DD9995E32DA8EC8DDC"><enum>(A)</enum><header>Authority</header><text display-inline="yes-display-inline">The Director may request the Secretary of
the Treasury to invest such portions of amounts received by the Director from
assessments paid under this section that, in the Director’s discretion, are not
required to meet the current working needs of the Agency.</text>
</subparagraph><subparagraph id="H34CC3933F28747CC99CA042B78D8D8D"><enum>(B)</enum><header>Government
obligations</header><text>Pursuant to a request under subparagraph (A), the
Secretary of the Treasury shall invest such amounts in Government obligations
guaranteed as to principal and interest by the United States with maturities
suitable to the needs of the Agency and 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>
</subparagraph></paragraph></subsection><subsection id="H1B8B2DDB5B5E4825A8451063317169B3"><enum>(g)</enum><header>Budget and Financial
Management</header>
<paragraph id="HB599B6767CA7487E88DA67119B49D4B2"><enum>(1)</enum><header>Financial operating
plans and forecasts</header><text>The Director shall provide to the Director of
the Office of Management and Budget copies of the Director’s financial
operating plans and forecasts, as prepared by the Director in the ordinary
course of the Agency’s operations, and copies of the quarterly reports of the
Agency’s financial condition and results of operations, as prepared by the
Director in the ordinary course of the Agency’s operations.</text>
</paragraph><paragraph id="H8B932D34D9F9453DB354F3DA5E2DC52"><enum>(2)</enum><header>Financial
statements</header><text>The Agency shall prepare annually a statement
of—</text>
<subparagraph id="idCFC98960CCCD42C9A3B001330597ADE2"><enum>(A)</enum><text>assets and liabilities
and surplus or deficit;</text>
</subparagraph><subparagraph id="id9BC349238E8E468FA80756FFCFC6731A"><enum>(B)</enum><text>income and expenses;
and</text>
</subparagraph><subparagraph id="id6AB15D7848FB4FEBB01666E45DE93C71"><enum>(C)</enum><text>sources and application
of funds.</text>
</subparagraph></paragraph><paragraph id="H63FC8517D91C4DA5B277EA23D6D6A297"><enum>(3)</enum><header>Financial management
systems</header><text>The Agency shall implement and maintain financial
management systems that—</text>
<subparagraph id="id93B82FF928C9487EB5800E0D2582FA29"><enum>(A)</enum><text>comply substantially with
Federal financial management systems requirements and applicable Federal
accounting standards; and</text>
</subparagraph><subparagraph id="idE8E11ADB119141AF9A8F18D8FA1054C9"><enum>(B)</enum><text>use a general ledger
system that accounts for activity at the transaction level.</text>
</subparagraph></paragraph><paragraph id="H0B1F993B1DA54D77B6AA551BB3603D22"><enum>(4)</enum><header>Assertion of internal
controls</header><text>The Director shall provide to the Comptroller General of
the United States an assertion as to the effectiveness of the internal controls
that apply to financial reporting by the Agency, using the standards
established in <external-xref legal-doc="usc" parsable-cite="usc/31/3512">section 3512(c)</external-xref> of title 31, United States Code.</text>
</paragraph><paragraph id="H337E556C9CB2482789112F844C9F3E08"><enum>(5)</enum><header>Rule of
construction</header><text>This subsection may not be construed as implying any
obligation on the part of the Director to consult with or obtain the consent or
approval of the Director of the Office of Management and Budget with respect to
any report, plan, forecast, or other information referred to in paragraph (1)
or any jurisdiction or oversight over the affairs or operations of the
Agency.</text>
</paragraph></subsection><subsection id="H8C916FAB85E0400CB718F21F87B78332"><enum>(h)</enum><header>Audit of
Agency</header>
<paragraph id="HE2206670F7474B4DA2ADA2DB52087760"><enum>(1)</enum><header>In
general</header><text>The Comptroller General shall annually audit the
financial transactions of the Agency in accordance with the United States
generally accepted government auditing standards as may be prescribed by the
Comptroller General of the United States. The audit shall be conducted at the
place or places where accounts of the Agency are normally kept. The
representatives of the Government Accountability Office 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,
things, or property belonging to or under the control of or used or employed by
the Agency pertaining to its financial transactions and necessary to facilitate
the audit, and such representatives shall be afforded full facilities for
verifying transactions with the balances or securities held by depositories,
fiscal agents, and custodians. All such books, accounts, documents, records,
reports, files, papers, and property of the Agency shall remain in possession
and custody of the Agency. 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="HE55F89FABD6B42638300D0E383F26DC"><enum>(2)</enum><header>Report</header><text>The
Comptroller General shall submit to the Congress a report of each annual audit
conducted under this subsection. The report to the Congress shall set forth the
scope of the audit and shall include the statement of assets and liabilities
and surplus or deficit, the statement of income and expenses, the statement of
sources and application of funds, and such comments and information as may be
deemed necessary to inform Congress of the financial operations and condition
of the Agency, together with such recommendations with respect thereto as the
Comptroller General may deem advisable. A copy of each report shall be
furnished to the President and to the Agency at the time submitted to the
Congress.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H75EE26AC82034AE59E33E7DFB3CB97B0"><enum>(3)</enum><header>Assistance and
costs</header><text>For the purpose of conducting an audit under this
subsection, the Comptroller General may, in the discretion of the Comptroller
General, employ by contract, without regard to section 3709 of the Revised
Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/41/5">41 U.S.C. 5</external-xref>), professional services of firms and
organizations of certified public accountants for temporary periods or for
special purposes. Upon the request of the Comptroller General, the Director of
the Agency shall transfer to the Government Accountability Office from funds
available, the amount requested by the Comptroller General to cover the full
costs of any audit and report conducted by the Comptroller General. The
Comptroller General shall credit funds transferred to the account established
for salaries and expenses of the Government Accountability Office, and such
amount shall be available upon receipt and without fiscal year limitation to
cover the full costs of the audit and
report.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID611B7F3C23ED4CFF9CF521FB89B20433"><enum>1107.</enum><header>Regulations and
orders</header><text display-inline="no-display-inline">Section 1319G of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4526) is amended—</text>
<paragraph id="IDAA927E649778444CA4467E62C53A22A2"><enum>(1)</enum><text>by striking subsection
(a) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID62302D72FA1E4DE9BED8C8893632ECEA" reported-display-style="italic" style="OLC">
<subsection id="ID51D0394518E4401988173E582BF74C17"><enum>(a)</enum><header>Authority</header><text>The
Director shall issue any regulations, guidelines, or orders necessary to carry
out the duties of the Director under this title or the authorizing statutes,
and to ensure that the purposes of this title and the authorizing statutes are
accomplished.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDEE365CDF5F3B4EC6B5B1335C342C7BC1"><enum>(2)</enum><text>by striking subsection
(c).</text>
</paragraph></section><section id="IDC41727F363B5423180E59D92D0931539"><enum>1108.</enum><header>Prudential management
and operations standards</header><text display-inline="no-display-inline">The
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4501 et seq.) is amended by inserting after section 1313A, as added by
this Act, the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID35EFD5E659C84C3F961CEC1A7CD3C99F" reported-display-style="italic" style="OLC">
<section id="IDEF283C8699DF404380351449BF2F5F1C"><enum>1313B.</enum><header>Prudential
management and operations standards</header>
<subsection id="id2A9C4264CEE341FCB11C7060809ACFA7"><enum>(a)</enum><header>Standards</header><text display-inline="yes-display-inline">The Director shall establish standards, by
regulation or guideline, for each regulated entity relating to—</text>
<paragraph id="IDF223785CC231490E8825C4F8C4865A8B"><enum>(1)</enum><text>adequacy of internal
controls and information systems taking into account the nature and scale of
business operations;</text>
</paragraph><paragraph id="ID0D7B2158771144539D6D22465E8AEBD9"><enum>(2)</enum><text>independence and adequacy
of internal audit systems;</text>
</paragraph><paragraph id="ID8F1B2E9B973A448193397545BF767FCE"><enum>(3)</enum><text>management of interest
rate risk exposure;</text>
</paragraph><paragraph id="IDDAC330FD53184BEDA48813A0BA0591A0"><enum>(4)</enum><text>management of market
risk, including standards that provide for systems that accurately measure,
monitor, and control market risks and, as warranted, that establish limitations
on market risk;</text>
</paragraph><paragraph id="ID25A9DCECEEDF4B2DB415453F43BE3302"><enum>(5)</enum><text>adequacy and maintenance
of liquidity and reserves;</text>
</paragraph><paragraph id="IDD6E2F75AE8764020A7A50279828E498C"><enum>(6)</enum><text>management of asset and
investment portfolio growth;</text>
</paragraph><paragraph id="ID84AD15915D0C4ED484743E0E395B5AAD"><enum>(7)</enum><text>investments and
acquisitions of assets by a regulated entity, to ensure that they are
consistent with the purposes of this title and the authorizing statutes;</text>
</paragraph><paragraph id="ID969C4B3CD49642CD88E3C93A238B04F3"><enum>(8)</enum><text>overall risk management
processes, including adequacy of oversight by senior management and the board
of directors and of processes and policies to identify, measure, monitor, and
control material risks, including reputational risks, and for adequate,
well-tested business resumption plans for all major systems with remote site
facilities to protect against disruptive events;</text>
</paragraph><paragraph id="id76E6AB646E8146DD919D26B25D6EC165"><enum>(9)</enum><text>management of credit and
counterparty risk, including systems to identify concentrations of credit risk
and prudential limits to restrict exposure of the regulated entity to a single
counterparty or groups of related counterparties;</text>
</paragraph><paragraph id="id949022BB010C47ACBFE5E948F865FAC7"><enum>(10)</enum><text>maintenance of adequate
records, in accordance with consistent accounting policies and practices that
enable the Director to evaluate the financial condition of the regulated
entity; and</text>
</paragraph><paragraph id="ID4405A76910414C27BC7FBE765AE10F20"><enum>(11)</enum><text>such other operational
and management standards as the Director determines to be appropriate.</text>
</paragraph></subsection><subsection id="ID046FC88269A54CA991210C2FBDED9EEF"><enum>(b)</enum><header>Failure To meet
standards</header>
<paragraph id="ID947D208F391E44B0BD33BD7E3906577C"><enum>(1)</enum><header>Plan
requirement</header>
<subparagraph id="IDA479EAFBA7A5458BAB7EFA69C1D7A10B"><enum>(A)</enum><header>In
general</header><text>If the Director determines that a regulated entity fails
to meet any standard established under subsection (a)—</text>
<clause id="ID682E657FD6DD467B8E25B881C60BC423"><enum>(i)</enum><text>if such standard is
established by regulation, the Director shall require the regulated entity to
submit an acceptable plan to the Director within the time allowed under
subparagraph (C); and</text>
</clause><clause id="IDF18B50AB10474799879D14DAEE6EE248"><enum>(ii)</enum><text>if such standard is
established by guideline, the Director may require the regulated entity to
submit a plan described in clause (i).</text>
</clause></subparagraph><subparagraph id="IDB47ADFFD79634A86A31FA5C342B1CB95"><enum>(B)</enum><header>Contents</header><text>Any
plan required under subparagraph (A) shall specify the actions that the
regulated entity will take to correct the deficiency. If the regulated entity
is undercapitalized, the plan may be a part of the capital restoration plan for
the regulated entity under section 1369C.</text>
</subparagraph><subparagraph id="IDCABBEA0281A34564A9B4C7D84D3197D6"><enum>(C)</enum><header>Deadlines for
submission and review</header><text>The Director shall by regulation establish
deadlines that—</text>
<clause id="ID65424274AF404804A194E4ED7EFBE9F8"><enum>(i)</enum><text>provide the regulated
entities with reasonable time to submit plans required under subparagraph (A),
and generally require a regulated entity to submit a plan not later than 30
days after the Director determines that the entity fails to meet any standard
established under subsection (a); and</text>
</clause><clause id="ID2894A04526E7489BBE1E7D65038FAD0D"><enum>(ii)</enum><text>require the Director to
act on plans expeditiously, and generally not later than 30 days after the plan
is submitted.</text>
</clause></subparagraph></paragraph><paragraph id="ID66FCC1FFCF5C479EBED818CD3ADA7D13"><enum>(2)</enum><header>Required order upon
failure to submit or implement plan</header><text>If a regulated entity fails
to submit an acceptable plan within the time allowed under paragraph (1)(C), or
fails in any material respect to implement a plan accepted by the Director, the
following shall apply:</text>
<subparagraph id="ID110AE9E42DD54F83A932A9395DB23485"><enum>(A)</enum><header>Required correction of
deficiency</header><text>The Director shall, by order, require the regulated
entity to correct the deficiency.</text>
</subparagraph><subparagraph id="IDCBB39F6B24294C8A8D30BF292C131CB2"><enum>(B)</enum><header>Other
authority</header><text>The Director may, by order, take one or more of the
following actions until the deficiency is corrected:</text>
<clause id="ID89306B22C96843729DB53B90A4820338"><enum>(i)</enum><text>Prohibit the regulated
entity from permitting its average total assets (as such term is defined in
section 1316(b)) during any calendar quarter to exceed its average total assets
during the preceding calendar quarter, or restrict the rate at which the
average total assets of the entity may increase from one calendar quarter to
another.</text>
</clause><clause id="IDDFB54861BF134C0CA5B4974756D5ADC5"><enum>(ii)</enum><text>Require the regulated
entity—</text>
<subclause id="IDEF0DAAD9D8C74988B33B73607BD2FDB9"><enum>(I)</enum><text>in the case of an
enterprise, to increase its ratio of core capital to assets.</text>
</subclause><subclause id="ID4EEE5E66DC4B4F0D8DEBF9B6D1B3F7ED"><enum>(II)</enum><text>in the case of a Federal
Home Loan Bank, to increase its ratio of total capital (as such term is defined
in section 6(a)(5) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(5)</external-xref>) to
assets.</text>
</subclause></clause><clause id="ID9CF87ECAC24142F1933B3AD00B13A8FC"><enum>(iii)</enum><text>Require the regulated
entity to take any other action that the Director determines will better carry
out the purposes of this section than any of the actions described in this
subparagraph.</text>
</clause></subparagraph></paragraph><paragraph id="ID546BB8D0F6E74916972399025CF21509"><enum>(3)</enum><header>Mandatory
restrictions</header><text>In complying with paragraph (2), the Director shall
take one or more of the actions described in clauses (i) through (iii) of
paragraph (2)(B) if—</text>
<subparagraph id="IDD589322197C74C68B1FECD3A6713CB1F"><enum>(A)</enum><text>the Director determines
that the regulated entity fails to meet any standard prescribed under
subsection (a);</text>
</subparagraph><subparagraph id="IDBDA6550C0AF1430590D41DBD9AE02B5C"><enum>(B)</enum><text>the regulated entity has
not corrected the deficiency; and</text>
</subparagraph><subparagraph id="ID1F9321BAE27C450C9E06793DEE803106"><enum>(C)</enum><text>during the 18-month
period before the date on which the regulated entity first failed to meet the
standard, the entity underwent extraordinary growth, as defined by the
Director.</text>
</subparagraph></paragraph></subsection><subsection id="IDDCB1E75767724E6D89F0B075DB6C1731"><enum>(c)</enum><header>Other enforcement
authority not affected</header><text>The authority of the Director under this
section is in addition to any other authority of the
Director.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB8B9CA5E944945028D72CDBC6BFC65D"><enum>1109.</enum><header>Review of and
authority over enterprise assets and liabilities</header>
<subsection id="H9A5E8701AA2847179B0890254CA6F50"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subtitle B of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611 et seq.</external-xref>) is
amended—</text>
<paragraph id="HD0EB7D81435C4A01A2C1E4194ECC5470"><enum>(1)</enum><text>by striking the subtitle
designation and heading and inserting the following:</text>
<quoted-block id="H6188AFD78EC04359A29FBA3B1201A6F0" style="OLC">
<subtitle id="HAAC2AB014BB64C7C806281A467C33CA6"><enum>B</enum><header>Required Capital Levels
for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and
Liabilities</header>
</subtitle><after-quoted-block>;</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="H3E772BB4B4BA4DA8BA84453E9ECA4EB0"><enum>(2)</enum><text>by adding at the end the
following new section:</text>
<quoted-block changed="added" id="H8650B5D8A0D44D83A368FB6E7849FA80" reported-display-style="italic" style="OLC">
<section id="HDDB2ADC74D674B32935BD7C142A1DD00"><enum>1369E.</enum><header>Reviews of
enterprise assets and liabilities</header>
<subsection id="id41BDAC723BCE44E3A004C080CA3C307A"><enum>(a)</enum><header>In
General</header><text>The Director shall, by regulation, establish criteria
governing the portfolio holdings of the enterprises, to ensure that the
holdings are backed by sufficient capital and consistent with the mission and
the safe and sound operations of the enterprises. In establishing such
criteria, the Director shall consider the ability of the enterprises to provide
a liquid secondary market through securitization activities, the portfolio
holdings in relation to the overall mortgage market, and adherence to the
standards specified in section 1313B.</text>
</subsection><subsection id="HDDCD685FC11046509D19B13691CD4946"><enum>(b)</enum><header>Temporary
adjustments</header><text>The Director may, by order, make temporary
adjustments to the established standards for an enterprise or both enterprises,
such as during times of economic distress or market disruption.</text>
</subsection><subsection id="H28E7BEF59A9B42E2AD9BCEDC21211F7F"><enum>(c)</enum><header>Authority To Require
Disposition or Acquisition</header><text>The Director shall monitor the
portfolio of each enterprise. Pursuant to subsection (a) and notwithstanding
the capital classifications of the enterprises, the Director may, by order,
require an enterprise, under such terms and conditions as the Director
determines to be appropriate, to dispose of or acquire any asset, if the
Director determines that such action is consistent with the purposes of this
Act or any of the authorizing
statutes.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD32CD52A9D52450F89A3946E32D149DD"><enum>(b)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than the expiration of the
180-day period beginning on the effective date of this Act, the Director shall
issue regulations pursuant to section 1369E(a) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as added by subsection
(a) of this section) establishing the portfolio holdings standards under such
section.</text>
</subsection></section><section id="ID7661FA4E561B4C4A92C78C796586B60E"><enum>1110.</enum><header>Risk-based capital
requirements</header>
<subsection id="ID14D3E42DFE404EE3AE639575B502006B"><enum>(a)</enum><header>In
general</header><text>Section 1361 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611</external-xref>) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID4680062595154C68A78C1FDCE89BCD38" reported-display-style="italic" style="OLC">
<section id="ID7977FA4FAB8B46379489978C346802AA"><enum>1361.</enum><header>Risk-based capital
levels for regulated entities</header>
<subsection id="IDB1D02A8BE7C347A5A85B52D516B20606"><enum>(a)</enum><header>In general</header>
<paragraph id="ID6036909B2509477C873149F8380DBF32"><enum>(1)</enum><header>Enterprises</header><text>The
Director shall, by regulation, establish risk-based capital requirements for
the enterprises to ensure that the enterprises operate in a safe and sound
manner, maintaining sufficient capital and reserves to support the risks that
arise in the operations and management of the enterprises.</text>
</paragraph><paragraph id="ID97B7A89DA7ED45029750A895FB5968A5"><enum>(2)</enum><header>Federal home loan
banks</header><text>The Director shall establish risk-based capital standards
under section 6 of the Federal Home Loan Bank Act for the Federal Home Loan
Banks.</text>
</paragraph></subsection><subsection id="ID30F3ECA5E1E74ECABA28AE4BBB3C56BE"><enum>(b)</enum><header>No
limitation</header><text>Nothing in this section shall limit the authority of
the Director to require other reports or undertakings, or take other action, in
furtherance of the responsibilities of the Director under this
Act.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDB565073DD64A43F393B3F50BB1332648"><enum>(b)</enum><header>Federal Home Loan Banks
risk-based capital</header><text>Section 6(a)(3) of the Federal Home Loan Bank
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(3)</external-xref>) is amended—</text>
<paragraph id="IDEBAA8A3B2073482285AA9BC6919E444F"><enum>(1)</enum><text>by striking subparagraph
(A) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDCF42A112603C4A6B9B983CB5846C0F6C" reported-display-style="italic" style="OLC">
<subparagraph id="ID48929AB9BB43461093DEC19968A943A0"><enum>(A)</enum><header>Risk-based capital
standards</header><text>The Director shall, by regulation, establish risk-based
capital standards for the Federal Home Loan Banks to ensure that the Federal
Home Loan Banks operate in a safe and sound manner, with sufficient permanent
capital and reserves to support the risks that arise in the operations and
management of the Federal Home Loans
Banks.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID25822894333E491AB48CF706CE3F7873"><enum>(2)</enum><text>in subparagraph (B), by
striking <quote>(A)(ii)</quote> and inserting <quote>(A)</quote>.</text>
</paragraph></subsection></section><section id="IDC27E34D6A6F246BE8857022834174A40"><enum>1111.</enum><header>Minimum capital
levels</header><text display-inline="no-display-inline">Section 1362 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4612) is amended—</text>
<paragraph id="IDDF944C8F7F8743B798CBB34A77B0935C"><enum>(1)</enum><text>in subsection (a), by
striking <quote><header-in-text level="subsection">In
General</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Enterprises</header-in-text></quote>; and</text>
</paragraph><paragraph id="IDA15B174EA68842919ACD089DACB4EF47"><enum>(2)</enum><text>by striking subsection
(b) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID7F6FB56CE1D84B27AA5BB32D8558733A" reported-display-style="italic" style="OLC">
<subsection id="IDEE24F72679A744ADA60741B08A2EF44C"><enum>(b)</enum><header>Federal home loan
banks</header><text>For purposes of this subtitle, the minimum capital level
for each Federal Home Loan Bank shall be the minimum capital required to be
maintained to comply with the leverage requirement for the bank established
under section 6(a)(2) of the Federal Home Loan Bank Act (12 U.S.C.
1426(a)(2)).</text>
</subsection><subsection id="ID564D9D5A976D411587547C2C37B86072"><enum>(c)</enum><header>Establishment of
revised minimum capital levels</header><text>Notwithstanding subsections (a)
and (b) and notwithstanding the capital classifications of the regulated
entities, the Director may, by regulations issued under section 1319G,
establish a minimum capital level for the enterprises, for the Federal Home
Loan Banks, or for both the enterprises and the banks, that is higher than the
level specified in subsection (a) for the enterprises or the level specified in
subsection (b) for the Federal Home Loan Banks, to the extent needed to ensure
that the regulated entities operate in a safe and sound manner.</text>
</subsection><subsection id="IDa503a42beda04921b710437359903a2d"><enum>(d)</enum><header>Authority To require
temporary increase</header>
<paragraph id="ID53d9d38516454616971a8ad6f2f8e966"><enum>(1)</enum><header>In
general</header><text>Notwithstanding subsections (a) and (b) and any minimum
capital level established pursuant to subsection (c), the Director may, by
order, increase the minimum capital level for a regulated entity on a temporary
basis, when the Director determines that such an increase is necessary and
consistent with the prudential regulation and the safe and sound operations of
a regulated entity.</text>
</paragraph><paragraph id="ID2c653e638540442e812d961d0d10d4f3"><enum>(2)</enum><header>Rescission</header><text>The
Director shall rescind any temporary minimum capital level established under
paragraph (1) when the Director determines that the circumstances or facts no
longer justify the temporary minimum capital level.</text>
</paragraph><paragraph id="ID2631ee8811d1472ca3c82224e0f140b3"><enum>(3)</enum><header>Regulations
required</header><text>The Director shall issue regulations
establishing—</text>
<subparagraph id="idFB36658FCA1E4680A14E29946B377A29"><enum>(A)</enum><text>standards for the
imposition of a temporary increase in minimum capital under paragraph
(1);</text>
</subparagraph><subparagraph id="IDd4ae268073ca4d448cd1dfe82dcddbfb"><enum>(B)</enum><text>the standards and
procedures that the Director will use to make the determination referred to in
paragraph (2); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFE4CFAB59B604FFDAA68B7E2645262A7"><enum>(C)</enum><text display-inline="yes-display-inline">a reasonable time frame for periodic review
of any temporary increase in minimum capital for the purpose of making the
determination referred to in paragraph (2).</text>
</subparagraph></paragraph></subsection><subsection id="ID238DBBAE4AE14838A9F9D9387ADDEB2D"><enum>(e)</enum><header>Authority To Establish
additional capital and reserve requirements for particular
purposes</header><text>The Director may, at any time by order or regulation,
establish such capital or reserve requirements with respect to any product or
activity of a regulated entity, as the Director considers appropriate to ensure
that the regulated entity operates in a safe and sound manner, with sufficient
capital and reserves to support the risks that arise in the operations and
management of the regulated entity.</text>
</subsection><subsection id="ID814DCB192B2C46599E1B262047B41D8E"><enum>(f)</enum><header>Periodic
review</header><text>The Director shall periodically review the amount of core
capital maintained by the enterprises, the amount of capital retained by the
Federal Home Loan Banks, and the minimum capital levels established for such
regulated entities pursuant to this
section.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID3FA6C9504EE844CFB04FA2A8D35E67A7"><enum>1112.</enum><header>Registration under
the securities laws</header><text display-inline="no-display-inline">The
Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>) is amended by adding at
the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDE160BE871FE84A1D9CE5F7290C1B8C0B" reported-display-style="italic" style="OLC">
<section id="ID5978AD4C47AC4DCEAA1520F91CB1550C"><enum>38.</enum><header>Federal National
Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan
Banks</header>
<subsection id="ID273458A9FA2D4086810E39BE9DD76849"><enum>(a)</enum><header>Federal national
mortgage association and federal home loan mortgage
corporation</header><text>No class of equity securities of the Federal National
Mortgage Association or the Federal Home Loan Mortgage Corporation shall be
treated as an exempted security for purposes of section 12, 13, 14, or
16.</text>
</subsection><subsection id="ID97012214F1D94630BB287ACB49A1732D"><enum>(b)</enum><header>Federal home loan
banks</header>
<paragraph id="ID747CD74A4EA948E5B53CC7E4E8F5F006"><enum>(1)</enum><header>Registration</header><text>Each
Federal Home Loan Bank shall register a class of its common stock under section
12(g), not later than 120 days after the date of enactment of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, and shall thereafter maintain such registration and be
treated for purposes of this title as an <quote>issuer</quote>, the securities
of which are required to be registered under section 12, regardless of the
number of members holding such stock at any given time.</text>
</paragraph><paragraph id="ID4BD29DE4BACD4D948495FA64445EA194"><enum>(2)</enum><header>Standards relating to
audit committees</header><text>Each Federal Home Loan Bank shall comply with
the rules issued by the Commission under section 10A(m).</text>
</paragraph></subsection><subsection id="IDE0D381787F6F453C8838DEA195D2D780"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="IDC0E4F7A8C18C4E8CA30FAE92502F4D7F"><enum>(1)</enum><header>Federal home loan bank;
member</header><text>The terms <term>Federal Home Loan Bank</term> and
<term>member</term>, have the same meanings as in section 2 of the Federal Home
Loan Bank Act.</text>
</paragraph><paragraph id="IDA4FF7DEF38394AF6A3DD54F5B5D242DB"><enum>(2)</enum><header>Federal national
mortgage association</header><text>The term <term>Federal National Mortgage
Association</term> means the corporation created by the Federal National
Mortgage Association Charter Act.</text>
</paragraph><paragraph id="IDAB21ABBC76D54A89A66ADB5F88175042"><enum>(3)</enum><header>Federal home loan
mortgage corporation</header><text>The term <term>Federal Home Loan Mortgage
Corporation</term> means the corporation created by the Federal Home Loan
Mortgage Corporation
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID383FE564FE024A4F970F051CA0187E3A"><enum>1113.</enum><header>Prohibition and
withholding of executive compensation</header>
<subsection id="ID83E890A40DD04A90B87032885C8CCECD"><enum>(a)</enum><header>In
general</header><text>Section 1318 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>) is amended—</text>
<paragraph id="IDC812C9078B4648709707BAA02798B686"><enum>(1)</enum><text>in the section heading,
by striking <quote><header-in-text level="section">of
excessive</header-in-text></quote> and inserting <quote><header-in-text level="section">and withholding of executive</header-in-text></quote>;</text>
</paragraph><paragraph id="IDDCDFA4D959FC47DC950CC2587A6548AE"><enum>(2)</enum><text>by redesignating
subsection (b) as subsection (d); and</text>
</paragraph><paragraph id="ID06F9C95DC60E49488695C2651B37C979"><enum>(3)</enum><text>by inserting after
subsection (a) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID341E68B1EC054519B59B185DAB8F175C" reported-display-style="italic" style="OLC">
<subsection id="ID452DF870580843F5B09214084DBB9827"><enum>(b)</enum><header>Factors</header><text>In
making any determination under subsection (a), the Director may take into
consideration any factors the Director considers relevant, including any
wrongdoing on the part of the executive officer, and such wrongdoing shall
include any fraudulent act or omission, breach of trust or fiduciary duty,
violation of law, rule, regulation, order, or written agreement, and insider
abuse with respect to the regulated entity. The approval of an agreement or
contract pursuant to section 309(d)(3)(B) of the Federal National Mortgage
Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)(3)(B)</external-xref>) or section 303(h)(2) of the
Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>) shall not
preclude the Director from making any subsequent determination under subsection
(a).</text>
</subsection><subsection id="IDD501E64A6E464FCA84F5EDCE1D5A421E"><enum>(c)</enum><header>Withholding of
compensation</header><text>In carrying out subsection (a), the Director may
require a regulated entity to withhold any payment, transfer, or disbursement
of compensation to an executive officer, or to place such compensation in an
escrow account, during the review of the reasonableness and comparability of
compensation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID37FB6E6B17544B608ACF714EF3F08C7F"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID95B65BABF2FB47BB82245140D808662E"><enum>(1)</enum><header>Fannie
mae</header><text>Section 309(d) of the Federal National Mortgage Association
Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)</external-xref>) is amended by adding at the end the following
new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID5CF121056F2D45B2AC7B217A6FFBA865" reported-display-style="italic" style="OLC">
<paragraph id="ID5232E8BF580545FBBA30196897F54BAE" indent="up1"><enum>(4)</enum><text>Notwithstanding any other
provision of this section, the corporation shall not transfer, disburse, or pay
compensation to any executive officer, or enter into an agreement with such
executive officer, without the approval of the Director, for matters being
reviewed under section 1318 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C.
4518).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID516CD09BAC5F4893B42469B36D5106DA"><enum>(2)</enum><header>Freddie
mac</header><text>Section 303(h) of the Federal Home Loan Mortgage Corporation
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)</external-xref>) is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID56E006B6CB7A482A822CABDBB49F6BFD" reported-display-style="italic" style="OLC">
<paragraph id="ID9EDB0B05B75D4D28A5A3692998C01ACB" indent="up1"><enum>(4)</enum><text>Notwithstanding any other
provision of this section, the Corporation shall not transfer, disburse, or pay
compensation to any executive officer, or enter into an agreement with such
executive officer, without the approval of the Director, for matters being
reviewed under section 1318 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C.
4518).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDDDD7DB832693462897FD7B9F5F9A4897"><enum>(3)</enum><header>Federal home loan
banks</header><text>Section 7 of the Federal Home Loan Bank Act (12 U.S.C.
1427) is amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDD2F519CFF7D64DC68A6DED15BB3A7E1E" reported-display-style="italic" style="OLC">
<subsection id="ID29E7E916581143CB96FC4982DE4DD824"><enum>(l)</enum><header>Withholding of
compensation</header><text>Notwithstanding any other provision of this section,
a Federal Home Loan Bank shall not transfer, disburse, or pay compensation to
any executive officer, or enter into an agreement with such executive officer,
without the approval of the Director, for matters being reviewed under section
1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C.
4518).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID75B11F40286543DC9A822AACEB173238"><enum>1114.</enum><header>Limit on golden
parachutes</header><text display-inline="no-display-inline">Section 1318 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4518) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID89938D95A2874198B702E118632FF32B" reported-display-style="italic" style="OLC">
<subsection id="ID0BC76E516FF04AFBBA56BE5B0DB4F0BE"><enum>(e)</enum><header>Authority To regulate
or prohibit certain forms of benefits to affiliated parties</header>
<paragraph id="ID0DDFBF99BDE94575926B298CC2FE8318"><enum>(1)</enum><header>Golden parachutes and
indemnification payments</header><text>The Director may prohibit or limit, by
regulation or order, any golden parachute payment or indemnification
payment.</text>
</paragraph><paragraph id="ID420A3590A6654BE1B0A1C14F0E60A76D"><enum>(2)</enum><header>Factors to be taken
into account</header><text>The Director shall prescribe, by regulation, the
factors to be considered by the Director in taking any action pursuant to
paragraph (1), which may include such factors as—</text>
<subparagraph id="ID2D9270C210B34DA380D0A427C2D3604D"><enum>(A)</enum><text>whether there is a
reasonable basis to believe that the affiliated party has committed any
fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse
with regard to the regulated entity that has had a material effect on the
financial condition of the regulated entity;</text>
</subparagraph><subparagraph id="IDB670A1BB8D344DD1BDEE46EEB836C1CD"><enum>(B)</enum><text>whether there is a
reasonable basis to believe that the affiliated party is substantially
responsible for the insolvency of the regulated entity, the appointment of a
conservator or receiver for the regulated entity, or the troubled condition of
the regulated entity (as defined in regulations prescribed by the
Director);</text>
</subparagraph><subparagraph id="ID1B2E244A3D044CDBAA7087FF7F4F9F8E"><enum>(C)</enum><text>whether there is a
reasonable basis to believe that the affiliated party has materially violated
any applicable provision of Federal or State law or regulation that has had a
material effect on the financial condition of the regulated entity;</text>
</subparagraph><subparagraph id="ID5BFFD0CE8C7F43098DB2AC00096386D1"><enum>(D)</enum><text>whether the affiliated
party was in a position of managerial or fiduciary responsibility; and</text>
</subparagraph><subparagraph id="ID5D221F5F920249C6B02167FCE7128407"><enum>(E)</enum><text>the length of time that
the party was affiliated with the regulated entity, and the degree to
which—</text>
<clause id="ID3D253C7A2D9947DA9C4CC4AF24EE29B6"><enum>(i)</enum><text>the payment reasonably
reflects compensation earned over the period of employment; and</text>
</clause><clause id="IDE1C9A5B7E40B47F48C445E6C8209DBC2"><enum>(ii)</enum><text>the compensation
involved represents a reasonable payment for services rendered.</text>
</clause></subparagraph></paragraph><paragraph id="IDACF162059BD44B389F64D3E3CFBBF27E"><enum>(3)</enum><header>Certain payments
prohibited</header><text>No regulated entity may prepay the salary or any
liability or legal expense of any affiliated party if such payment is
made—</text>
<subparagraph id="ID51CB396DC00C48728D4D0149015D78F8"><enum>(A)</enum><text>in contemplation of the
insolvency of such regulated entity, or after the commission of an act of
insolvency; and</text>
</subparagraph><subparagraph id="IDDA391D7751514BCC9578416DDAAE6831"><enum>(B)</enum><text>with a view to, or having
the result of—</text>
<clause id="IDF9071B3038184649AA31F17F25F1E1D3"><enum>(i)</enum><text>preventing the proper
application of the assets of the regulated entity to creditors; or</text>
</clause><clause id="IDDB5BA80F73F9401C8518E90394DBCB4E"><enum>(ii)</enum><text>preferring one creditor
over another.</text>
</clause></subparagraph></paragraph><paragraph id="IDCA0A468477DF48F4A4C003D0373CBEB4"><enum>(4)</enum><header>Golden parachute
payment defined</header>
<subparagraph id="IDA09D5837FE2A42E7AB85B5E33298DC01"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term <term>golden
parachute payment</term> means any payment (or any agreement to make any
payment) in the nature of compensation by any regulated entity for the benefit
of any affiliated party pursuant to an obligation of such regulated entity
that—</text>
<clause id="IDCCCB9F14428348C79D8FFAA037FC297D"><enum>(i)</enum><text>is contingent on the
termination of such party's affiliation with the regulated entity; and</text>
</clause><clause id="ID88527448CC04449DBB055081909F8039"><enum>(ii)</enum><text>is received on or after
the date on which—</text>
<subclause id="IDC87862C34DDF4290B59CB9CF377F51E2"><enum>(I)</enum><text>the regulated entity
became insolvent;</text>
</subclause><subclause id="ID3B27BDB87B254CAA8A8602E97C93FCFB"><enum>(II)</enum><text>any conservator or
receiver is appointed for such regulated entity; or</text>
</subclause><subclause id="ID36190FDA6B5B418C940DF33288ECAC66"><enum>(III)</enum><text>the Director determines
that the regulated entity is in a troubled condition (as defined in the
regulations of the Director).</text>
</subclause></clause></subparagraph><subparagraph id="ID06EBB56EE8EA48EAA86B39EF2F9C9187"><enum>(B)</enum><header>Certain payments in
contemplation of an event</header><text>Any payment which would be a golden
parachute payment but for the fact that such payment was made before the date
referred to in subparagraph (A)(ii) shall be treated as a golden parachute
payment if the payment was made in contemplation of the occurrence of an event
described in any subclause of such subparagraph.</text>
</subparagraph><subparagraph id="ID53B7C9F7EC3F499195856D7BE7EE985B"><enum>(C)</enum><header>Certain payments not
included</header><text>For purposes of this subsection, the term <term>golden
parachute payment</term> shall not include—</text>
<clause id="ID7526B912B8344A2AB61CF96D4CF9EDD7"><enum>(i)</enum><text>any payment made pursuant
to a retirement plan which is qualified (or is intended to be qualified) under
<external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</external-xref> of the Internal Revenue Code of 1986, or other nondiscriminatory
benefit plan;</text>
</clause><clause id="ID4377A58D7B7A4206A8EF7AE10D33EC6F"><enum>(ii)</enum><text>any payment made
pursuant to a bona fide deferred compensation plan or arrangement which the
Director determines, by regulation or order, to be permissible; or</text>
</clause><clause id="IDC37CA14C4AF644D692B0ED1491B2B85F"><enum>(iii)</enum><text>any payment made by
reason of the death or disability of an affiliated party.</text>
</clause></subparagraph></paragraph><paragraph id="ID2F58CCA9DDE24D9BBE6B87C825A217CC"><enum>(5)</enum><header>Other
definitions</header><text>For purposes of this subsection, the following
definitions shall apply:</text>
<subparagraph id="IDC926F5EA4F414403867BDCB11A733C16"><enum>(A)</enum><header>Indemnification
payment</header><text>Subject to paragraph (6), the term <term>indemnification
payment</term> means any payment (or any agreement to make any payment) by any
regulated entity for the benefit of any person who is or was an affiliated
party, to pay or reimburse such person for any liability or legal expense with
regard to any administrative proceeding or civil action instituted by the
Agency which results in a final order under which such person—</text>
<clause id="IDF1ED5F8BB7B74C7CAE57B35A9E8108C4"><enum>(i)</enum><text>is assessed a civil money
penalty;</text>
</clause><clause id="IDB7FE2EB0E1AC4F7EA6F05F6CD42F5D6C"><enum>(ii)</enum><text>is removed or prohibited
from participating in conduct of the affairs of the regulated entity; or</text>
</clause><clause id="ID37EB24513CA5429C8D51B38C97E11BC4"><enum>(iii)</enum><text>is required to take any
affirmative action to correct certain conditions resulting from violations or
practices, by order of the Director.</text>
</clause></subparagraph><subparagraph id="ID8180281D24D24B8DB48353FDD95D2499"><enum>(B)</enum><header>Liability or legal
expense</header><text>The term <term>liability or legal expense</term>
means—</text>
<clause id="ID675F0BF0F6FE443CA7E6959B38E98C7E"><enum>(i)</enum><text>any legal or other
professional expense incurred in connection with any claim, proceeding, or
action;</text>
</clause><clause id="ID402488D5F0DF43B6A40EFB21AAABA748"><enum>(ii)</enum><text>the amount of, and any
cost incurred in connection with, any settlement of any claim, proceeding, or
action; and</text>
</clause><clause id="ID8C3BCF32F991461EBD13A23CA8A06E68"><enum>(iii)</enum><text>the amount of, and any
cost incurred in connection with, any judgment or penalty imposed with respect
to any claim, proceeding, or action.</text>
</clause></subparagraph><subparagraph id="IDCCB96D5612344D0A8B47ED5EE0306BEE"><enum>(C)</enum><header>Payment</header><text>The
term <term>payment</term> includes—</text>
<clause id="ID6EF8900591E940D6AE699FEDAFF23E16"><enum>(i)</enum><text>any direct or indirect
transfer of any funds or any asset; and</text>
</clause><clause id="IDB4765F1A532F427385508DB8D2C98D63"><enum>(ii)</enum><text>any segregation of any
funds or assets for the purpose of making, or pursuant to an agreement to make,
any payment after the date on which such funds or assets are segregated,
without regard to whether the obligation to make such payment is contingent
on—</text>
<subclause id="ID90724F09AA5C4AA0BA32A589D0BA7540"><enum>(I)</enum><text>the determination, after
such date, of the liability for the payment of such amount; or</text>
</subclause><subclause id="ID0075CF35F25F413B9B69C61EF03396F8"><enum>(II)</enum><text>the liquidation, after
such date, of the amount of such payment.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID5C6E280A3E544C47810679CDE23E656B"><enum>(6)</enum><header>Certain commercial
insurance coverage not treated as covered benefit payment</header><text>No
provision of this subsection shall be construed as prohibiting any regulated
entity from purchasing any commercial insurance policy or fidelity bond, except
that, subject to any requirement described in paragraph (5)(A)(iii), such
insurance policy or bond shall not cover any legal or liability expense of the
regulated entity which is described in paragraph
(5)(A).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDB78D768F0D2748EB8EC1DC0B8B561D8C"><enum>1115.</enum><header>Reporting of
fraudulent loans</header><text display-inline="no-display-inline">Part 1 of
subtitle C of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>), as amended by this Act, is amended by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID0C1D332242674C85AC5633D22E735384" reported-display-style="italic" style="OLC">
<section id="ID9EC3100591A84C3C98A96D93B044F083"><enum>1379E.</enum><header>Reporting of
fraudulent loans</header>
<subsection id="IDDAD8EC0B34114B948D62AF33A059D903"><enum>(a)</enum><header>Requirement to
report</header><text>The Director shall require a regulated entity to submit to
the Director a timely report upon discovery by the regulated entity that it has
purchased or sold a fraudulent loan or financial instrument, or suspects a
possible fraud relating to the purchase or sale of any loan or financial
instrument. The Director shall require each regulated entity to establish and
maintain procedures designed to discover any such transactions.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID85ED4CBD3711458ABAAA3D3CFC79F044"><enum>(b)</enum><header>Protection from
liability for reports</header><text>Any regulated entity that, in good faith,
makes a report pursuant to subsection (a), and any entity-affiliated party,
that, in good faith, makes or requires another to make any such report, shall
not be liable to any person under any provision of law or regulation, any
constitution, law, or regulation of any State or political subdivision of any
State, or under any contract or other legally enforceable agreement (including
any arbitration agreement) for such report or for any failure to provide notice
of such report to the person who is the subject of such report or any other
persons identified in the
report.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="ID9B0E353D52C34C7BA2A82AA386E00E87"><enum>B</enum><header>Improvement of mission
supervision</header>
<section id="ID9EDFE5FB49F54CF79ECA5EBF5CDD9998"><enum>1121.</enum><header>Transfer of program
approval and housing goal oversight</header><text display-inline="no-display-inline">Part 2 of subtitle A of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>)
is amended—</text>
<paragraph id="ID8555FAE1EE9D4E648EAF7DF2989477E5"><enum>(1)</enum><text>by striking the heading
for the part and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDEB7186F45F6844E1830A607D9C8DBBE7" reported-display-style="italic" style="OLC">
<part id="ID853284FE166E404A8FA31C20B3A29406"><enum>2</enum><header>Additional authorities of
the
director</header>
</part><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDF6C08A58E3EB433E921FF6A055AFD5B0"><enum></enum><text>and</text>
</paragraph><paragraph id="ID0952FFA9DE3149159AA7A23A8C7307EC"><enum>(2)</enum><text>by striking sections 1321
and 1322.</text>
</paragraph></section><section id="ID10EE7DDBBD0841DEAB17B07537254638"><enum>1122.</enum><header>Assumption by the
Director of certain other HUD responsibilities</header>
<subsection id="idE7AA50323FA14EAE9BDDD4A0C3AA5BA7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Part 2 of subtitle A
of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
(<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text>
<paragraph id="id3544023EFDEC42C3A9FA429F90B5D577"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Secretary</quote> each
place that term appears and inserting <quote>Director</quote> in each of
sections 1323, 1326, 1327, 1328, and 1336; and</text>
</paragraph><paragraph id="IDB96A51B9E4D548E8A08326F8C2D633C6"><enum>(2)</enum><text>by striking sections 1338
and 1349 (<external-xref legal-doc="usc" parsable-cite="usc/12/4562">12 U.S.C. 4562</external-xref> note and 4589).</text>
</paragraph></subsection><subsection id="ID9376FB663F0C4DCEAF00CC44AC79B898"><enum>(b)</enum><header>Retention of fair
housing responsibilities</header><text>Section 1325 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4545">12 U.S.C. 4545</external-xref>) is
amended in the matter preceding paragraph (1), by inserting <quote>of Housing
and Urban Development</quote> after <quote>The Secretary</quote>.</text>
</subsection></section><section id="ID31BD1B5BEA9D4A6B80AE66484970B053"><enum>1123.</enum><header>Review of enterprise
products</header><text display-inline="no-display-inline">Part 2 of subtitle A
of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
(<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended by inserting before section 1323 the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDCF67EFE26DEF4C8689FE8429E33D5612" reported-display-style="italic" style="OLC">
<section id="ID7C64F47C3A994D1CB807365B403803D4"><enum>1321.</enum><header>Prior approval
authority for products</header>
<subsection id="IDFB0EAF5D09654A06A5EF75517C711B07"><enum>(a)</enum><header>In
general</header><text>The Director shall require each enterprise to obtain the
approval of the Director for any product of the enterprise before initially
offering the product.</text>
</subsection><subsection id="IDF45890A4E19247EEA470950986DB67E8"><enum>(b)</enum><header>Standard for
approval</header><text>In considering any request for approval of a product
pursuant to subsection (a), the Director shall make a determination
that—</text>
<paragraph id="ID0964CA41500441C193FE9AADCB8FFEB9"><enum>(1)</enum><text>in the case of a product
of the Federal National Mortgage Association, the product is authorized under
paragraph (2), (3), (4), or (5) of section 302(b) or section 304 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>, 1719);</text>
</paragraph><paragraph id="IDA16FFB6D4EC04EA5AADF543952DE7239"><enum>(2)</enum><text>in the case of a product
of the Federal Home Loan Mortgage Corporation, the product is authorized under
paragraph (1), (4), or (5) of section 305(a) of the Federal Home Loan Mortgage
Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)</external-xref>);</text>
</paragraph><paragraph id="IDB03C7AD1407E4E1782096757A7C7B76E"><enum>(3)</enum><text>the product is in the
public interest; and</text>
</paragraph><paragraph id="ID3D5EDBC10BF244F6B2AD19727A7EA5FE"><enum>(4)</enum><text>the product is consistent
with the safety and soundness of the enterprise or the mortgage finance
system.</text>
</paragraph></subsection><subsection id="IDA490C1B85970409DB092626F6593E707"><enum>(c)</enum><header>Procedure for
approval</header>
<paragraph id="ID46EB66E03188463A882336247699492E"><enum>(1)</enum><header>Submission of
request</header><text>An enterprise shall submit to the Director a written
request for approval of a product that describes the product in such form as
prescribed by order or regulation of the Director.</text>
</paragraph><paragraph id="ID50F9364CB5494EE08FA854CDA0F56B24"><enum>(2)</enum><header>Request for public
comment</header><text>Immediately upon receipt of a request for approval of a
product, as required under paragraph (1), the Director shall publish notice of
such request and of the period for public comment pursuant to paragraph (3)
regarding the product, and a description of the product proposed by the
request. The Director shall give interested parties the opportunity to respond
in writing to the proposed product.</text>
</paragraph><paragraph id="IDF8E2A9DB48374F5AB2DBD9BCDC8860F2"><enum>(3)</enum><header>Public comment
period</header><text>During the 30-day period beginning on the date of
publication pursuant to paragraph (2) of a request for approval of a product,
the Director shall receive public comments regarding the proposed
product.</text>
</paragraph><paragraph id="ID493177995F424B749E13365911E19C3E"><enum>(4)</enum><header>Offering of
product</header>
<subparagraph id="ID0306D45DB0EC49CB9B7DF194299AAA7A"><enum>(A)</enum><header>In
general</header><text>Not later than 30 days after the close of the public
comment period described in paragraph (3), the Director shall approve or deny
the product, specifying the grounds for such decision in writing.</text>
</subparagraph><subparagraph id="ID3CDAA3C41FB146198A89E2480F8161CC"><enum>(B)</enum><header>Failure to
act</header><text>If the Director fails to act within the 30-day period
described in subparagraph (A), then the enterprise may offer the
product.</text>
</subparagraph><subparagraph id="idDD8E3E60CFBC4C4B97BF115684176E47"><enum>(C)</enum><header>Temporary
approval</header><text>The Director may, subject to the rules of the Director,
provide for temporary approval of the offering of a product without a public
comment period, if the Director finds that the existence of exigent
circumstances makes such delay contrary to the public interest.</text>
</subparagraph></paragraph></subsection><subsection id="ID3A7E6C985CAE46A6A2F3CA85E2533E62"><enum>(d)</enum><header>Conditional
approval</header><text>If the Director approves the offering of any product by
an enterprise, the Director may establish terms, conditions, or limitations
with respect to such product with which the enterprise must comply in order to
offer such product.</text>
</subsection><subsection id="IDB2E8FE98D3644DAEA937E98D11306CC3"><enum>(e)</enum><header>Exclusions</header>
<paragraph id="idB7AD4AAF7DB4496DA1A90FB986D17D02"><enum>(1)</enum><header>In
general</header><text>The requirements of subsections (a) through (d) do not
apply with respect to—</text>
<subparagraph id="ID668D627D47D84364BF6D34AF712D0858"><enum>(A)</enum><text>the automated loan
underwriting system of an enterprise in existence as of the date of enactment
of the <short-title>Federal Housing Finance Regulatory
Reform Act of 2008</short-title>, including any upgrade to the technology,
operating system, or software to operate the underwriting system;</text>
</subparagraph><subparagraph id="ID1DA2044EB7DA4888AF30742065903B44"><enum>(B)</enum><text>any modification to the
mortgage terms and conditions or mortgage underwriting criteria relating to the
mortgages that are purchased or guaranteed by an enterprise, provided that such
modifications do not alter the underlying transaction so as to include services
or financing, other than residential mortgage financing; or</text>
</subparagraph><subparagraph id="id98FC8173CEE0473BA3D353816F8DD00A"><enum>(C)</enum><text>any other activity that
is substantially similar, as determined by rule of the Director to—</text>
<clause id="idD8AE7770BEBA4BAB869318E22EA7DC52"><enum>(i)</enum><text>the activities described
in subparagraphs (A) and (B); and</text>
</clause><clause id="id5168702594E54950A7728A5ED17B01C0"><enum>(ii)</enum><text>other activities that
have been approved by the Director in accordance with this section.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="IDB7E44878BB434D5EBE7D9D527D7C1206"><enum>(2)</enum><header>Expedited
review</header>
<subparagraph commented="no" id="id9CC1E422990E4DD3B3C5CD71CD3F6197"><enum>(A)</enum><header>Enterprise
notice</header><text>For any new activity that an enterprise considers not to
be a product, the enterprise shall provide written notice to the Director of
such activity, and may not commence such activity until the date of receipt of
a notice under subparagraph (B) or the expiration of the period described in
subparagraph (C). The Director shall establish, by regulation, the form and
content of such written notice.</text>
</subparagraph><subparagraph commented="no" id="id57F145A912EE4C2FA7B08BB490C7898D"><enum>(B)</enum><header>Director
determination</header><text>Not later than 15 days after the date of receipt of
a notice under subparagraph (A), the Director shall determine whether such
activity is a product subject to approval under this section. The Director
shall, immediately upon so determining, notify the enterprise.</text>
</subparagraph><subparagraph commented="no" id="id3E1106C8584B4C2EB573BAF924CA5911"><enum>(C)</enum><header>Failure to
act</header><text>If the Director fails to determine whether such activity is a
product within the 15-day period described in subparagraph (B), the enterprise
may commence the new activity in accordance with subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="ID0B2F92FEE6894DF18D17B133B222700B"><enum>(f)</enum><header>No
limitation</header><text>Nothing in this section may be construed to
restrict—</text>
<paragraph id="ID6DB892716C8C4133AE194DE7075DCAC7"><enum>(1)</enum><text>the safety and soundness
authority of the Director over all new and existing products or activities;
or</text>
</paragraph><paragraph id="ID08FD7AC6F6DD4CA3A50FF41714626133"><enum>(2)</enum><text>the authority of the
Director to review all new and existing products or activities to determine
that such products or activities are consistent with the statutory mission of
an enterprise.</text>
</paragraph></subsection></section><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section id="IDB13F7F774CEA41608978869483F56462"><enum>1124.</enum><header>Conforming loan
limits</header>
<subsection id="ID67082727525242C8B8355164A908116C"><enum>(a)</enum><header>Fannie mae</header>
<paragraph id="IDEF8AAC097AD94D70AE4E4C442FFB1DC6"><enum>(1)</enum><header>General
limit</header><text>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>) is amended by striking the 7th
and 8th sentences and inserting the following new sentences: <quote>Such
limitations shall not exceed $417,000 for a mortgage secured by a single-family
residence, $533,850 for a mortgage secured by a 2-family residence, $645,300
for a mortgage secured by a 3-family residence, and $801,950 for a mortgage
secured by a 4-family residence, except that such maximum limitations shall be
adjusted effective January 1 of each year beginning after the effective date of
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, 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 4th-quarter period ending before the time of
determining such annual adjustment, in the housing price index maintained by
the Director of the Federal Housing Finance Agency (pursuant to section 1322 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4541)). If the change in such house price index during the most recent
12-month or 4th-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.</quote>.</text>
</paragraph><paragraph id="ID43DFB395E30A42C08CC44B2A90FA720C"><enum>(2)</enum><header>High-cost area
limit</header><text>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>) is amended by adding after the
period at the end the following: <quote>Such foregoing limitations shall also
be increased with respect to properties of a particular size located in any
area for which the median price for such size residence exceeds the foregoing
limitation for such size residence, to the lesser of 150 percent of such
foregoing limitation for such size residence or the amount that is equal to the
median price in such area for such size residence.</quote>.</text>
</paragraph><paragraph id="idD83B4A4C05204BE4903E8AA6773F4AAE"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by paragraphs (1) and (2) of this
subsection shall take effect upon the expiration of the date described in
section 201(a) of the Economic Stimulus Act of 2008 (Public Law
110–185).</text>
</paragraph></subsection><subsection id="IDA5E5B93C65FA4F12AEEF60864CA40987"><enum>(b)</enum><header>Freddie mac</header>
<paragraph id="IDAE9ABBB5C0954FD298698A00FB686C8F"><enum>(1)</enum><header>General
limit</header><text>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>) is amended by striking the 6th and 7th
sentences and inserting the following new sentences: <quote>Such limitations
shall not exceed $417,000 for a mortgage secured by a single-family residence,
$533,850 for a mortgage secured by a 2-family residence, $645,300 for a
mortgage secured by a 3-family residence, and $801,950 for a mortgage secured
by a 4-family residence, except that such maximum limitations shall be adjusted
effective January 1 of each year beginning after the effective date of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>, 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 fourth-quarter period ending before the time
of determining such annual adjustment, in the housing price index maintained by
the Director of the Federal Housing Finance Agency (pursuant to section 1322 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4541)). If the change in such house price index during the most recent
12-month or 4th-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.</quote>.</text>
</paragraph><paragraph id="ID74D68DD84092494FA675BC8544E76FFA"><enum>(2)</enum><header>High-cost area
limit</header><text>Section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act is amended by adding after the period at the end the following:
<quote>Such foregoing limitations shall also be increased with respect to
properties of a particular size located in any area for which the median price
for such size residence exceeds the foregoing limitation for such size
residence, to the lesser of 150 percent of such foregoing limitation for such
size residence or the amount that is equal to the median price in such area for
such size residence.</quote>.</text>
</paragraph><paragraph id="id3E773998D0F64422B353A520B98850BF"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by paragraphs (1) and (2) of this
subsection shall take effect upon the expiration of the date described in
section 201(a) of the Economic Stimulus Act of 2008 (Public Law
110–185).</text>
</paragraph></subsection><subsection id="id98D4546883EF4B9BAE6349786AFBEBAC"><enum>(c)</enum><header>Sense of
Congress</header><text>It is the sense of the Congress that the securitization
of mortgages by the Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation plays an important role in providing liquidity to the
United States housing markets. Therefore, the Congress encourages the Federal
National Mortgage Association and the Federal Home Loan Mortgage Corporation to
securitize mortgages acquired under the increased conforming loan limits
established under this Act.</text>
</subsection><subsection id="ID1F31C5C05D4F48E88F685EFBFDD2BEC7"><enum>(d)</enum><header>Housing price
index</header><text>Part 2 of subtitle A of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended
by inserting after section 1321 (as added by section 1123 of this Act) the
following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID7ABCCBB6CB8E48EBA419D8B5A9FD8892" reported-display-style="italic" style="OLC">
<section id="ID06D00981B32C41D9931E1B2D8E52C37C"><enum>1322.</enum><header>Housing price
index</header><text display-inline="no-display-inline">The Director shall
establish and maintain a method of assessing the national average 1-family
house price for use for adjusting the conforming loan limitations of the
enterprises. In establishing such method, the Director shall take into
consideration the monthly survey of all major lenders conducted by the Federal
Housing Finance Agency to determine the national average 1-family house price,
the House Price Index maintained by the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban Development before the
effective date of the Federal Housing Finance Regulatory Reform Act of 2008,
any appropriate house price indexes of the Bureau of the Census of the
Department of Commerce, and any other indexes or measures that the Director
considers
appropriate.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID83CB85B40262478081026E883260562E"><enum>1125.</enum><header>Annual housing
report</header>
<subsection id="idFDF3E19DF038498A96440B7BC0BA13AF"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1324 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544</external-xref>)</act-name> is hereby
repealed.</text>
</subsection><subsection id="idCF9920D4C2F74862AA1C1DA872351D8E"><enum>(b)</enum><header>Annual housing
report</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is </act-name>amended by inserting after section 1323
the following:</text>
<quoted-block act-name="Housing and Community Development Act of 1992" changed="added" id="ID8689EEA247344F969DEA5CA212D86AAE" reported-display-style="italic" style="OLC">
<section id="ID0F5E747F7FBF431581DC134E9FF8EEC0"><enum>1324.</enum><header>Annual housing
report</header>
<subsection id="IDA3609A9A02844A4A9236C88E69AB9564"><enum>(a)</enum><header>In
General</header><text>After reviewing and analyzing the reports submitted under
section 309(n) of the <act-name parsable-cite="FNMACA">Federal National
Mortgage Association Charter Act</act-name> and section 307(f) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>, the Director shall submit a report, not later than October 30
of each year, 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 activities of each enterprise.</text>
</subsection><subsection id="IDCB5CFBC46F8547F1BDAE65D6B1D454C2"><enum>(b)</enum><header>Contents</header><text>The
report required under subsection (a) shall—</text>
<paragraph id="ID2B4111E117214036B11AD77487B58674"><enum>(1)</enum><text>discuss—</text>
<subparagraph id="id0AE446210FA643B1B5204FCA56574938"><enum>(A)</enum><text>the extent to and manner
in which—</text>
<clause id="IDC9A5A82F2EC14198882BC2A166E0FDCF"><enum>(i)</enum><text>each enterprise is
achieving the annual housing goals established under subpart B;</text>
</clause><clause id="ID06AD266B290549D3A23A323413420357"><enum>(ii)</enum><text>each enterprise is
complying with its duty to serve underserved markets, as established under
section 1335;</text>
</clause><clause id="ID1C6B8C8A68EB42CB94AFEAB3105B56D4"><enum>(iii)</enum><text>each enterprise is
complying with section 1337;</text>
</clause><clause id="id4BE43FEA20614895877AB586EB6C7F23"><enum>(iv)</enum><text>each enterprise received
credit towards achieving each of its goals resulting from a transaction or
activity pursuant to section 1331(b)(2); and</text>
</clause><clause id="ID04F43E6EC11E4E3C9505D4E0AC747E71"><enum>(v)</enum><text>each enterprise is
achieving the purposes of the enterprise established by law; and</text>
</clause></subparagraph><subparagraph id="id98C5283F6726458DB9EEA424D9A6427B"><enum>(B)</enum><text>the actions that each
enterprise could undertake to promote and expand the purposes of the
enterprise;</text>
</subparagraph></paragraph><paragraph id="ID4B93974A44A14F99BF58ABB6B77E7479"><enum>(2)</enum><text>aggregate and analyze
relevant data on income to assess the compliance of each enterprise with the
housing goals established under subpart B;</text>
</paragraph><paragraph id="ID0324D15F43A649EEB01785CDFC632E43"><enum>(3)</enum><text>aggregate and analyze
data on income, race, and gender by census tract and other relevant
classifications, and compare such data with larger demographic, housing, and
economic trends;</text>
</paragraph><paragraph id="ID4CB3C1E6ED07458491DAB95008CCB697"><enum>(4)</enum><text>identify the extent to
which each enterprise is involved in mortgage purchases and secondary market
activities involving subprime and nontraditional loans;</text>
</paragraph><paragraph id="IDE7A4972520D744D789F10EE492654169"><enum>(5)</enum><text>compare the
characteristics of subprime and nontraditional loans both purchased and
securitized by each enterprise to other loans purchased and securitized by each
enterprise; and</text>
</paragraph><paragraph id="idEF63B22DDA3242F3AC148A99D790DF4B"><enum>(6)</enum><text>compare the
characteristics of high-cost loans purchased and securitized, where such
securities are not held on portfolio to loans purchased and securitized, where
such securities are either retained on portfolio or repurchased by the
enterprise, including such characteristics as—</text>
<subparagraph id="id315093CACF1F4E8489D52A8678F71C37"><enum>(A)</enum><text>the purchase price of the
property that secures the mortgage;</text>
</subparagraph><subparagraph id="id10EC1F079B914BDC841589AC008C8809"><enum>(B)</enum><text>the loan-to-value ratio
of the mortgage, which shall reflect any secondary liens on the relevant
property;</text>
</subparagraph><subparagraph id="idAC71B3F9E9984B0B98CBE430A336A72D"><enum>(C)</enum><text>the terms of the
mortgage;</text>
</subparagraph><subparagraph id="idBD76319084DC44AC97A23C014D63268A"><enum>(D)</enum><text>the creditworthiness of
the borrower; and</text>
</subparagraph><subparagraph id="id89CE364FD8B044D6BE4E1A93A5207AF6"><enum>(E)</enum><text>any other relevant data,
as determined by the Director.</text>
</subparagraph></paragraph></subsection><subsection id="ID196F40600F98413096032D75C1E40C9A"><enum>(c)</enum><header>Data Collection and
Reporting</header>
<paragraph id="IDB92F95CE62FF4FA6A44B0CE3F6B5C319"><enum>(1)</enum><header>In
general</header><text>To assist the Director in analyzing the matters described
in subsection (b), the Director shall conduct, on a monthly basis, a survey of
mortgage markets in accordance with this subsection.</text>
</paragraph><paragraph id="ID3BE29E1608C34562861710C4C83B463E"><enum>(2)</enum><header>Data
points</header><text>Each monthly survey conducted by the Director under
paragraph (1) shall collect data on—</text>
<subparagraph id="ID5717F4672BFC414F873A1CE2CE6E7AEA"><enum>(A)</enum><text>the characteristics of
individual mortgages that are eligible for purchase by the enterprises and the
characteristics of individual mortgages that are not eligible for purchase by
the enterprises including, in both cases, information concerning—</text>
<clause id="ID698B0A72587848678D13D20F9446E828"><enum>(i)</enum><text>the price of the house
that secures the mortgage;</text>
</clause><clause id="ID959CBCF8D4BB411B819F06F85CD0D680"><enum>(ii)</enum><text>the loan-to-value ratio
of the mortgage, which shall reflect any secondary liens on the relevant
property;</text>
</clause><clause id="ID81A727B3E7DF4689901821724C5CBF78"><enum>(iii)</enum><text>the terms of the
mortgage;</text>
</clause><clause id="ID4546E78C6A6E4AF5B4EF7CDD208883E1"><enum>(iv)</enum><text>the creditworthiness of
the borrower or borrowers; and</text>
</clause><clause id="ID54A90F220EA0458DAEBE187DB4E4A363"><enum>(v)</enum><text>whether the mortgage, in
the case of a conforming mortgage, was purchased by an enterprise;</text>
</clause></subparagraph><subparagraph id="ID017ecdafecf2451aa3611a06d59acb9b"><enum>(B)</enum><text>the characteristics of
individual subprime and nontraditional mortgages that are eligible for purchase
by the enterprises and the characteristics of borrowers under such mortgages,
including the creditworthiness of such borrowers and determination whether such
borrowers would qualify for prime lending; and</text>
</subparagraph><subparagraph id="IDA0578E19F9BC4F82A7210C848A096EEE"><enum>(C)</enum><text>such other matters as the
Director determines to be appropriate.</text>
</subparagraph></paragraph><paragraph id="ID3B003D9ACEB840D794AF33450468D383"><enum>(3)</enum><header>Public
availability</header><text>The Director shall make any data collected by the
Director in connection with the conduct of a monthly survey available to the
public in a timely manner, provided that the Director may modify the data
released to the public to ensure that the data—</text>
<subparagraph id="id51ABE2764F1944B7B79515BA95A59634"><enum>(A)</enum><text>is not released in an
identifiable form; and</text>
</subparagraph><subparagraph id="id63C7AA004A974CE8BB478E4DD7C1025B"><enum>(B)</enum><text>is not otherwise
obtainable from other publicly available data sets.</text>
</subparagraph></paragraph><paragraph id="ID7E567A525DAC40B0AEFA366941FA0ABB"><enum>(4)</enum><header>Definition</header><text>For
purposes of this subsection, the term <term>identifiable form</term> means any
representation of information that permits the identity of a borrower to which
the information relates to be reasonably inferred by either direct or indirect
means.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID06AC4C2308E84B39B68EFAF743826B90"><enum>1126.</enum><header>Public use
database</header><text display-inline="no-display-inline">Section 1323 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4543">42 U.S.C. 4543</external-xref>) is amended—</text>
<paragraph id="IDEE5D0A027AD84043B3ACE4D391C5F96F"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="ID0CA6C4E3F2AA4FF0A9CC25B0D8F23537"><enum>(A)</enum><text>by striking <quote>(a)
<header-in-text level="subsection" style="OLC">In general</header-in-text>.—The
Secretary</quote> and inserting the following:</text>
<quoted-block changed="added" id="ID05DCE2F69A9A4004873706B926165825" reported-display-style="italic" style="OLC">
<subsection id="IDFB888A4401914D4E956F0EA0267DFAFE"><enum>(a)</enum><header>Availability</header>
<paragraph id="ID99057AEDABEF4D1D80866416FB8633EE"><enum>(1)</enum><header>In
general</header><text>The Director</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID0432D3A8BD824E2881DDCC7A8B8DB24F"><enum>(B)</enum><text>by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" id="ID1348C35B272844AF8A6B336DDADE0B8D" reported-display-style="italic" style="OLC">
<paragraph id="ID39ED8C0FC5C74278B26888D44B5AB0F9"><enum>(2)</enum><header>Census tract level
reporting</header><text>Such data shall include the data elements required to
be reported under the Home Mortgage Disclosure Act of 1975, at the census tract
level.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID57520EABAFDB48408C9BB3F81D4C4BB1"><enum>(2)</enum><text>in subsection (b)(2), by
inserting before the period at the end the following: <quote>or with subsection
(a)(2)</quote>; and</text>
</paragraph><paragraph id="ID99A5C217D1A047DB8EB7DC630474B426"><enum>(3)</enum><text>by adding at the end the
following new subsection:</text>
<quoted-block changed="added" id="ID977407CDF2A74BF0B63E21CF6D676920" reported-display-style="italic" style="OLC">
<subsection id="ID2620EAAEFB9B41C8B46AD2950424F3F3"><enum>(d)</enum><header>Timing</header><text>Data
submitted under this section by an enterprise in connection with a provision
referred to in subsection (a) shall be made publicly available in accordance
with this section not later than September 30 of the year following the year to
which the data relates.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></section><section id="IDE78A3E5F01F541F9BD8EFF2B3C75F86E"><enum>1127.</enum><header>Reporting of mortgage
data</header><text display-inline="no-display-inline">Section 1326 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4546) is amended—</text>
<paragraph id="IDA32A5FE67695484D8269A50F26D7ECDB"><enum>(1)</enum><text>in subsection (a), by
striking <quote>The Director</quote> and inserting <quote>Subject to subsection
(d), the Director</quote>; and</text>
</paragraph><paragraph id="ID157506CA3F88451AAE5D609A68513107"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDC5FA22EEA00E435D9E0CE8C27D3A8802" reported-display-style="italic" style="OLC">
<subsection id="IDDCC01C8AF06E4087BD604910C49E8F9A"><enum>(d)</enum><header>Mortgage
information</header><text>Subject to privacy considerations, as described in
section 304(j) of the Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2803">12 U.S.C. 2803(j)</external-xref>),
the Director shall, by regulation or order, provide that certain information
relating to single family mortgage data of the enterprises shall be disclosed
to the public, in order to make available to the public—</text>
<paragraph id="id516B9692C095416790B6A50C80821246"><enum>(1)</enum><text>the same data from the
enterprises that is required of insured depository institutions under the Home
Mortgage Disclosure Act of 1975; and</text>
</paragraph><paragraph id="id51E68092473040409E762A08494A9A31"><enum>(2)</enum><text>information collected by
the Director under section
1324(b)(6).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID4CE7CC201557451EA33BC11BF514CC2C"><enum>1128.</enum><header>Revision of housing
goals</header>
<subsection id="id040BEF6542C84EC4A736C8778FCDFE1F"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Sections 1331 through 1334 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4561 through 4564)</act-name> are hereby
repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id14CB30C0F5334F439F478B3A5776E738"><enum>(b)</enum><header>Housing
Goal</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> is amended by inserting before section
1335 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9CA3FFFC86244F4ABB3D519475B2D5AB" reported-display-style="italic" style="OLC">
<section id="IDFB97969A4DA74D389A1D2BDCC71D7F31"><enum>1331.</enum><header>Establishment of
housing goals</header>
<subsection id="ID791073435D434CD08CE456B64D6A829A"><enum>(a)</enum><header>In
General</header><text>The Director shall, by regulation, establish effective
for the first calendar year that begins after the date of enactment of the
Federal Housing Finance Regulatory Reform Act of 2008, and each year
thereafter, annual housing goals, as described under this subpart, with respect
to the mortgage purchases by the enterprises.</text>
</subsection><subsection id="idB4D00907E96B476782E818D83083E6E3"><enum>(b)</enum><header>Special counting
requirements</header>
<paragraph id="idB7C968F47EA14B4C80EC421131D6BE61"><enum>(1)</enum><header>In
general</header><text>The Director shall determine whether an enterprise shall
receive full, partial, or no credit for a transaction toward achievement of any
of the housing goals established pursuant to this section or sections 1332
through 1334.</text>
</paragraph><paragraph id="id6AD554900F12422D8538E58EF8A8B9C0"><enum>(2)</enum><header>Considerations</header><text>In
making any determination under paragraph (1), the Director shall consider
whether a transaction or activity of an enterprise is substantially equivalent
to a mortgage purchase and either (A) creates a new market, or (B) adds
liquidity to an existing market, provided however that the terms and conditions
of such mortgage purchase is neither determined to be unacceptable, nor
contrary to good lending practices, and otherwise promotes sustainable
homeownership and further, that such mortgage purchase actually fulfills the
purposes of the enterprise and is in accordance with the chartering Act of such
enterprise.</text>
</paragraph></subsection><subsection id="ID3E4482E56E0645C7AE13EA8393E47CF0"><enum>(c)</enum><header>Eliminating interest
rate disparities</header>
<paragraph id="IDCC120DF7008C434486AB0B59A517BF12"><enum>(1)</enum><header>In
general</header><text>In establishing and implementing the housing goals under
this subpart, the Director shall require the enterprises to disclose
appropriate information to allow the Director to assess if there are any
disparities in interest rates charged on mortgages to borrowers who are
minorities, as compared with borrowers of similar creditworthiness who are not
minorities, as evidenced in reports pursuant to the Home Mortgage Disclosure
Act of 1975.</text>
</paragraph><paragraph id="ID34CB031CFE714B7FAD8988B738940172"><enum>(2)</enum><header>Report to congress on
disparities</header><text>Upon a finding by the Director that a pattern of
disparities in interest rates exists pursuant to the information provided by an
enterprise under paragraph (1), the Director shall—</text>
<subparagraph id="IDBE71C85C2DB142078673EEFBF1A740EB"><enum>(A)</enum><text>forward 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 detailing the
disparities; and</text>
</subparagraph><subparagraph id="id49E41D8A92404D0CBA210A0ADB9BEFBA"><enum>(B)</enum><text>forward the report
prepared under subparagraph (A) to any other appropriate regulatory or
enforcement agency.</text>
</subparagraph></paragraph><paragraph id="ID74869A61479A4A74AA38059E335B0594"><enum>(3)</enum><header>Identity of individuals
not disclosed</header><text>In carrying out this subsection, the Director shall
ensure that no personally identifiable financial information that would enable
an individual borrower to be reasonably identified shall be made public.</text>
</paragraph></subsection><subsection id="IDB53D61CC1C6747338D94666D4EE7B925"><enum>(d)</enum><header>Timing</header><text>The
Director shall establish an annual deadline for the establishment of housing
goals described in subsection (a), taking into consideration the need for the
enterprises to reasonably and sufficiently plan their operations and activities
in advance, including operations and activities necessary to meet such
goals.</text>
</subsection></section><section id="ID4E57F71FB91344388D25E0B24E77A87F"><enum>1331A.</enum><header>Discretionary
adjustment of housing goals</header>
<subsection id="ID0EE4D26D2E68433DAF0ACF4BC98383C5"><enum>(a)</enum><header>Authority</header>
<paragraph id="id982D56A30B27405296193BCAF88C0B3F"><enum>(1)</enum><header>Review</header><text>The
Director shall review the appropriateness of each goal established pursuant to
this subpart at least once during each year to assure that given current market
conditions that each such goal is feasible.</text>
</paragraph><paragraph id="id7574F59BB31E4C889CBB7C787D1373CB"><enum>(2)</enum><header>Petition to
reduce</header><text>An enterprise may petition the Director in writing at any
time during a year to reduce the level of any goal for such year established
pursuant to this subpart.</text>
</paragraph></subsection><subsection id="ID759E90606D3E432B9D37A68DF44B59C4"><enum>(b)</enum><header>Standard for
Reduction</header><text>The Director may reduce the level for a goal pursuant
to such a petition only if—</text>
<paragraph id="ID6C04FD83EAE34F7986C866D2A0C9F197"><enum>(1)</enum><text>market and economic
conditions or the financial condition of the enterprise require such action;
or</text>
</paragraph><paragraph id="IDA25657E0D1FA4EF68E08FBD92D81D56F"><enum>(2)</enum><text>efforts to meet the goal
would result in the constraint of liquidity, over-investment in certain market
segments, or other consequences contrary to the intent of this subpart, section
301(3) of the <act-name parsable-cite="FNMACA">Federal National Mortgage
Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716(3)</external-xref>), or section 301(b)(3) of
the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note), as applicable.</text>
</paragraph></subsection><subsection id="IDD579DCDA8D9F41B195D4DED1628AE23F"><enum>(c)</enum><header>Determination</header>
<paragraph id="ID841949508C444BD79EA300870D92B537"><enum>(1)</enum><header>30-day
period</header><text>If an enterprise submits a petition for reduction to the
Director under subsection (a)(2), the Director shall make a determination
regarding any proposed reduction within 30 days of receipt of the
petition.</text>
</paragraph><paragraph id="IDE5E62CEA55AB491EA9DA1FF7B3189F5D"><enum>(2)</enum><header>Extension</header><text>The
Director may extend the period described in paragraph (1) for a single
additional 15-day period, but only if the Director requests additional
information from the enterprise.</text>
</paragraph></subsection></section><section id="ID3B7BBE255707444FA65D0EDA6FD2E952"><enum>1332.</enum><header>Single-family housing
goals</header>
<subsection id="ID2DE9183EEA44475E86493AA867B9D39C"><enum>(a)</enum><header>Establishment of
Goals</header>
<paragraph id="ID312E095D7E49422D9EDFE6367D9D4507"><enum>(1)</enum><header>In
General</header><text>The Director shall establish annual goals for the
purchase by each enterprise of conventional, conforming, single-family,
owner-occupied, purchase money mortgages financing housing for each of the
following:</text>
<subparagraph id="IDD040CD0ED7D04626AACEF8E631762C99"><enum>(A)</enum><text>Low-income
families.</text>
</subparagraph><subparagraph id="IDB65BA56AB3714396B8D865E5193AC2B5"><enum>(B)</enum><text>Families that reside in
low-income areas.</text>
</subparagraph><subparagraph id="ID2194EA4EE2794E95A50AA6A570C2F714"><enum>(C)</enum><text>Very low-income
families.</text>
</subparagraph></paragraph><paragraph id="IDCCE4A66CF76C4C55B4B76405CDF98800"><enum>(2)</enum><header>Goals as percentage of
total purchase money mortgage purchases</header><text>The goals established
under paragraph (1) shall be established as a percentage of the total number of
single-family dwelling units financed by single-family purchase money mortgage
purchases of the enterprise.</text>
</paragraph></subsection><subsection id="ID03D2DAEE9E994F4093A64727084822D2"><enum>(b)</enum><header>Determination of
Compliance</header>
<paragraph id="ID1183BFDD1702479A86EE15ADA84A6766"><enum>(1)</enum><header>In
general</header><text>The Director shall determine, for each year that the
housing goals under this section are in effect pursuant to section 1331(a),
whether each enterprise has complied with the single-family housing goals
established under this section for such year.</text>
</paragraph><paragraph id="IDE95BEBDDB0834051B0564BAE67FCE245"><enum>(2)</enum><header>Compliance
requirements</header><text>An enterprise shall be considered to be in
compliance with a goal described under subsection (a) for a year, only if, for
each of the types of families described in subsection (a), the percentage of
the number of conventional, conforming, single-family, owner-occupied, purchase
money mortgages purchased by the enterprise in such year that serve such
families, meets or exceeds the target established under subsection (c) for the
year for such type of family.</text>
</paragraph></subsection><subsection id="ID308F1030907245A8A22FE141FA8A6403"><enum>(c)</enum><header>Annual Targets</header>
<paragraph id="ID582BE554F4DF4973996A16BE73725BF1"><enum>(1)</enum><header>In
general</header><text>The Director shall establish annual targets for each goal
described in subsection (a).</text>
</paragraph><paragraph id="IDE24B3783097941AA87848536CB230D6B"><enum>(2)</enum><header>Considerations</header><text>In
establishing annual targets under paragraph (1), the Director shall
consider—</text>
<subparagraph id="ID0EE4490D516E4F9F9A4E723757D85005"><enum>(A)</enum><text>national housing
needs;</text>
</subparagraph><subparagraph id="IDD4610BFB6AF34D7595479C3985940E5B"><enum>(B)</enum><text>economic, housing, and
demographic conditions;</text>
</subparagraph><subparagraph id="ID52D6E52C175C410F83048749F79017B4"><enum>(C)</enum><text>the performance and
effort of the enterprises toward achieving the housing goals under this section
in previous years;</text>
</subparagraph><subparagraph id="ID06608dd936bc41f6892b7f1af689a003"><enum>(D)</enum><text>the ability of the
enterprise to lead the industry in making mortgage credit available;</text>
</subparagraph><subparagraph id="ID3E9E35EA457B4B81822CCCE73BA8E38C"><enum>(E)</enum><text>recent information
submitted in compliance with the Home Mortgage Disclosure Act of 1975 and such
other reliable mortgage data as may be available;</text>
</subparagraph><subparagraph id="ID93B17B33499C43D4BEA431A8E895ADCA"><enum>(F)</enum><text>the size of the purchase
money conventional mortgage market serving each of the types of families
described in subsection (a), relative to the size of the overall purchase money
mortgage market; and</text>
</subparagraph><subparagraph id="IDC65B8FF37B54403E8037F435DBC8A05F"><enum>(G)</enum><text>the need to maintain the
sound financial condition of the enterprises.</text>
</subparagraph></paragraph><paragraph id="id855CC2C3722C47959386492D67FC1F5F"><enum>(3)</enum><header>High-cost loans and
inappropriate lending practices</header><text>In establishing annual targets
under paragraph (1), the Director shall not consider segments of the market
determined to be unacceptable or contrary to good lending practices pursuant to
section 1331(b)(2).</text>
</paragraph></subsection><subsection id="IDAA1AF0D816D24D20A74C281EDD06849D"><enum>(d)</enum><header>Notice of Determination
and Enterprise Comment</header>
<paragraph id="IDF830A09EF3794764A4F7CF5DB4A31A6D"><enum>(1)</enum><header>Notice</header><text>Within
30 days of making a determination under subsection (b) regarding compliance of
an enterprise for a year with the housing goals established under this section
and before any public disclosure thereof, the Director shall provide notice of
the determination to the enterprise, which shall include an analysis and
comparison, by the Director, of the performance of the enterprise for the year
and the targets for the year under subsection (c).</text>
</paragraph><paragraph id="ID925AD3FB486349C59390CB0FD72248B9"><enum>(2)</enum><header>Comment
period</header><text>The Director shall provide each enterprise and the public
an opportunity to comment on the determination during the 30-day period
beginning upon receipt by the enterprise of the notice.</text>
</paragraph></subsection><subsection id="IDA4AEE16C5CBD49B29094D53A6E8AB305"><enum>(e)</enum><header>Use of Borrower
Income</header><text>In monitoring the performance of each enterprise pursuant
to the housing goals under this section and evaluating such performance (for
purposes of section 1336), the Director shall consider a mortgagor’s income to
be the income of the mortgagor at the time of origination of the
mortgage.</text>
</subsection><subsection id="idF9DEE9DE35954FABB13B3E9CAB014ED4"><enum>(f)</enum><header>Consideration of
properties with rental units</header><text>Mortgages financing 1-to-4 unit
owner-occupied properties shall count toward the achievement of the
single-family housing goal under this section, if such properties otherwise
meet the requirements under this section notwithstanding the use of 1 or more
units for rental purposes.</text>
</subsection></section><section id="IDDFAC8B59F7C94F519421A9DB84840069"><enum>1333.</enum><header>Single-family housing
refinance goals</header>
<subsection id="ID8B40DFDD158345E5B7BD8F9E50CC9133"><enum>(a)</enum><header>Prepayment of Existing
Loans</header>
<paragraph id="ID237587EEF86B431897D5FFEA7441B2AE"><enum>(1)</enum><header>In
general</header><text>The Director shall establish annual goals for the
purchase by each enterprise of mortgages on conventional, conforming,
single-family, owner-occupied housing given to pay off or prepay an existing
loan served by the same property for each of the following:</text>
<subparagraph id="IDE24F2737562F4E92A0EE683067B63B75"><enum>(A)</enum><text>Low-income
families.</text>
</subparagraph><subparagraph id="IDFD969C85B1AC46909F09F07EE888704F"><enum>(B)</enum><text>Families that reside in
low-income areas.</text>
</subparagraph><subparagraph id="idC604DE1CED8B4A23BAAB938F75EB6DA4"><enum>(C)</enum><text>Very low-income
families.</text>
</subparagraph></paragraph><paragraph id="ID069DE0DD23D64976A4EFBF5CD4E82200"><enum>(2)</enum><header>Goals as percentage of
total refinancing mortgage purchases</header><text>The goals described under
paragraph (1) shall be established as a percentage of the total number of
single-family dwelling units refinanced by mortgage purchases of each
enterprise.</text>
</paragraph></subsection><subsection id="ID25BE1AC701BA4F5B98900D696FE7C44E"><enum>(b)</enum><header>Determination of
Compliance</header>
<paragraph id="ID8E29F313227D4FDD994F7D194C684175"><enum>(1)</enum><header>In
general</header><text>The Director shall determine, for each year that the
housing goals under this section are in effect pursuant to section 1331(a),
whether each enterprise has complied with the single-family housing refinance
goals established under this section for such year.</text>
</paragraph><paragraph id="IDE370CB0DE91D49A78F36BE76D145331F"><enum>(2)</enum><header>Compliance</header><text>An
enterprise shall be considered to be in compliance with the goals of this
section for a year, only if, for each of the types of families described in
subsection (a), the percentage of the number of conventional, conforming,
single-family, owner-occupied refinancing mortgages purchased by each
enterprise in such year that serve such families, meets or exceeds the target
for the year for such type of family that is established under subsection
(c).</text>
</paragraph></subsection><subsection id="IDA2410AAA0CBD4EA7866EEB162BEF82CD"><enum>(c)</enum><header>Annual Targets</header>
<paragraph id="ID4498E70478B04F4786E01F077AFB2F2E"><enum>(1)</enum><header>In
general</header><text>The Director shall establish annual targets for each goal
described in subsection (a).</text>
</paragraph><paragraph id="ID13D7AB74D43B42A4A94194C5FAF9CCE7"><enum>(2)</enum><header>Considerations</header><text>In
establishing annual targets under paragraph (1), the Director shall
consider—</text>
<subparagraph id="IDF37AD5D710084BADBE84CC16707D157B"><enum>(A)</enum><text>national housing
needs;</text>
</subparagraph><subparagraph id="ID8F8B427B7EB04FF9ADF0FB17A01B3F84"><enum>(B)</enum><text>economic, housing, and
demographic conditions;</text>
</subparagraph><subparagraph id="IDB54E96B432DE408D8FA455E2806029DA"><enum>(C)</enum><text>the performance and
effort of the enterprises toward achieving the housing goals under this section
in previous years;</text>
</subparagraph><subparagraph id="id7B6140BD3C754625BE05B6B6B48D63B0"><enum>(D)</enum><text>the ability of the
enterprise to lead the industry in making mortgage credit available;</text>
</subparagraph><subparagraph id="id0EABE9405DA44CB59B26FB0532B722BD"><enum>(E)</enum><text>recent information
submitted in compliance with the Home Mortgage Disclosure Act of 1975 and such
other reliable mortgage data as may be available;</text>
</subparagraph><subparagraph id="id1416B2D14B7E44618523CB40A31D09C4"><enum>(F)</enum><text>the size of the purchase
money conventional mortgage market serving each of the types of families
described in subsection (a), relative to the size of the overall purchase money
mortgage market; and</text>
</subparagraph><subparagraph id="IDA070495C517A4866A089BAF1AEEF9C03"><enum>(G)</enum><text>the need to maintain the
sound financial condition of the enterprises.</text>
</subparagraph></paragraph></subsection><subsection id="ID080F2795927D4F0898E125C7B2199F74"><enum>(d)</enum><header>Notice of Determination
and Enterprise Comment</header>
<paragraph id="ID9683E0CE816240578F17026147BA2366"><enum>(1)</enum><header>Notice</header><text>Within
30 days of making a determination under subsection (b) regarding compliance of
an enterprise for a year with the housing goals established under this section
and before any public disclosure thereof, the Director shall provide notice of
the determination to the enterprise, which shall include an analysis and
comparison, by the Director, of the performance of the enterprise for the year
and the targets for the year under subsection (c).</text>
</paragraph><paragraph id="ID3214819A298740C1B402351B57F43FD6"><enum>(2)</enum><header>Comment
period</header><text>The Director shall provide each enterprise and the public
an opportunity to comment on the determination during the 30-day period
beginning upon receipt by the enterprise of the notice.</text>
</paragraph></subsection><subsection id="IDF8A7CAC8E6DE408ABD66B13A449B8097"><enum>(e)</enum><header>Use of Borrower
Income</header><text>In monitoring the performance of each enterprise pursuant
to the housing goals under this section and evaluating such performance (for
purposes of section 1336), the Director shall consider a mortgagor’s income to
be the income of the mortgagor at the time of origination of the
mortgage.</text>
</subsection></section><section id="IDD8EDCF9EBF294F829F626847DA84A467"><enum>1334.</enum><header>Multifamily special
affordable housing goal</header>
<subsection id="ID3BC0914E36384F059EF35A3F7CF7B748"><enum>(a)</enum><header>Establishment</header>
<paragraph id="IDA58BCD25F0204FB8BF471BB400D414B9"><enum>(1)</enum><header>In
general</header><text>The Director shall establish, by regulation, by unit,
dollar volume, or percentage of multifamily activity, as determined by the
Director, an annual goal for the purchase by each enterprise of—</text>
<subparagraph id="id1D68F91977F44ADA8E926702F4033EB9"><enum>(A)</enum><text>mortgages that finance
dwelling units affordable to very low-income families; and</text>
</subparagraph><subparagraph id="ID8B59C7896FAE440498355A2B26083D62"><enum>(B)</enum><text>mortgages that finance
dwelling units assisted by the low-income housing tax credit under section 42
of the Internal Revenue Code of 1986.</text>
</subparagraph></paragraph><paragraph id="ID9889EE57A003472CB9EA6E52C0322391"><enum>(2)</enum><header>Additional requirements
for smaller projects</header><text>The Director shall establish, within the
housing goal established under this section, additional requirements for the
purchase by each enterprise of mortgages described in paragraph (1) for
multifamily housing projects of a smaller or limited size, which may be based
on the number of dwelling units in the project or the amount of the mortgage,
or both, and shall include multifamily housing projects of 5 to 50 units (as
adjusted by the Director), or with mortgages of up to $5,000,000 (as adjusted
by the Director).</text>
</paragraph><paragraph id="IDE9260314838448F6A9B0800994E225CF"><enum>(3)</enum><header>Factors</header><text>The
Director shall establish the goal and additional requirements under this
section taking into consideration—</text>
<subparagraph id="IDE95F5A09322240C99634F6861685BD07"><enum>(A)</enum><text>national multifamily
mortgage credit needs;</text>
</subparagraph><subparagraph id="ID45BD1C6620284BD499FFA45A924EAC64"><enum>(B)</enum><text>the performance and
effort of the enterprise in making mortgage credit available for multifamily
housing in previous years;</text>
</subparagraph><subparagraph id="IDB717B492D48F4A31A08B33E4F613F513"><enum>(C)</enum><text>the size of the
multifamily mortgage market, including the size of the small multifamily
mortgage market;</text>
</subparagraph><subparagraph id="ID0CFE1AE60298441396BFB87760DA9B59"><enum>(D)</enum><text>the most recent
information available for the Residential Survey published by the Census
Bureau, and such other reliable data as may be available regarding multifamily
mortgages;</text>
</subparagraph><subparagraph id="IDD09A45B78BFD42A58FC741437002019F"><enum>(E)</enum><text>the ability of the
enterprise to lead the industry in expanding mortgage credit availability at
favorable terms, especially for underserved markets, such as for—</text>
<clause id="ID77E00926A7934E81968EB068301EE62E"><enum>(i)</enum><text>small multifamily
projects;</text>
</clause><clause id="ID2A182618A5B54882BEF47FB99C7EACDC"><enum>(ii)</enum><text>multifamily properties
in need of preservation and rehabilitation; and</text>
</clause><clause id="ID7AC4F8DDA1AD4F2FAD8CBCE75C5ECE7A"><enum>(iii)</enum><text>multifamily properties
located in rural areas; and</text>
</clause></subparagraph><subparagraph id="ID9280375DEEFB48BEA3DCBF4AAC15221A"><enum>(F)</enum><text>the need to maintain the
sound financial condition of the enterprise.</text>
</subparagraph></paragraph></subsection><subsection id="ID3F2F2AD39F154CE1AEB2EC52161ADAB7"><enum>(b)</enum><header>Units Financed by
Housing Finance Agency Bonds</header><text>The Director may give credit toward
the achievement of the multifamily special affordable housing goal under this
section (for purposes of section 1336) to dwelling units in multifamily housing
projects that otherwise qualify under such goal and that are financed by
tax-exempt or taxable bonds issued by a State or local housing finance agency,
but only if such bonds—</text>
<paragraph id="IDE5438CD15F6346759C03EEF7224C5CF7"><enum>(1)</enum><text>are secured by a
guarantee of the enterprise; or</text>
</paragraph><paragraph id="IDA08C84C9875540079EF40F969B0C4C01"><enum>(2)</enum><text>are not investment grade
and are purchased by the enterprise.</text>
</paragraph></subsection><subsection id="IDE8738B4B75314AB783FD7BBBFE8DAA2D"><enum>(c)</enum><header>Use of Tenant Rent
level</header>
<paragraph id="ID2A1D6CF5058F49DDBEB7517114474CA1"><enum>(1)</enum><header>In
general</header><text>The Director shall monitor the performance of each
enterprise in meeting the goal established under this section and shall
evaluate such performance (for purposes of section 1336) based on whether the
rent levels are affordable to low-income and very low-income families.</text>
</paragraph><paragraph id="IDE7823BBFA8C24F2ABF03BCE49BFF2ECC"><enum>(2)</enum><header>Rent
level</header><text>A rent level shall be considered to be affordable for
purposes of this subsection for an income category referred to in this
subsection if it does not exceed 30 percent of the maximum income level of such
income category, with appropriate adjustments for unit size as measured by the
number of bedrooms.</text>
</paragraph></subsection><subsection id="ID5FAB79258018483392A569224D2D7766"><enum>(d)</enum><header>Determination of
Compliance</header>
<paragraph id="IDABEBD1CD9C7C46F0BB9237C5D7C90E92"><enum>(1)</enum><header>In
general</header><text>The Director shall, for each year that the housing goal
under this section is in effect pursuant to section 1331(a), determine whether
each enterprise has complied with such goal and the additional requirements
under subsection (a)(2).</text>
</paragraph><paragraph id="IDA662CA65E851418F9F2C46D50B7F90DB"><enum>(2)</enum><header>Compliance</header><text>An
enterprise shall be considered to be in compliance with the goal described
under subsection (a) for a year only if the multifamily mortgage purchases of
the enterprise meet or exceed the goal for the year established under
subsection (a).</text>
</paragraph></subsection><subsection id="idDE5BF8AA40784BA69FFFF6BE1EE4B6D0"><enum>(e)</enum><header>Consideration of units
in single-family rental housing</header><text>In establishing the goal under
this section, the Director may take into consideration the number of housing
units financed by any mortgage purchased by an enterprise on single-family
rental housing that is not owner-occupied.</text>
</subsection><subsection id="id903A53D017044410B17B1824F0110184"><enum>(f)</enum><header>Removing
credit</header><text>The Director shall subtract from the units or mortgages
counted toward the goal established under this section in a current year any
units or mortgages credited toward such goal in a prior year if an enterprise
requires a lender to repurchase, or reimburse for losses, or indemnify the
enterprise against potential losses on such units or mortgages.</text>
</subsection><subsection id="id6992C4183AB14F14AC18483E899C46FE"><enum>(g)</enum><header>Notice of Determination
and Enterprise Comment</header>
<paragraph id="idDF9FFA34573045438D1D5651C0AC234C"><enum>(1)</enum><header>Notice</header><text>Within
30 days of making a determination under subsection (d) regarding compliance of
an enterprise for a year with the housing goal established under this section
and before any public disclosure thereof, the Director shall provide notice of
the determination to the enterprise, which shall include an analysis and
comparison, by the Director, of the performance of the enterprise for the year
and the goal for the year under subsection (a).</text>
</paragraph><paragraph id="id1D4C4A61BE574FB98DAEBDC1CAB961D3"><enum>(2)</enum><header>Comment
period</header><text>The Director shall provide each enterprise and the public
an opportunity to comment on the determination during the 30-day period
beginning upon receipt by the enterprise of the
notice.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDA12D956778F0484396675BE63E1BFA20"><enum>(c)</enum><header>Conforming
Amendments</header><text>The <act-name parsable-cite="HCDA92">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> is
amended—</text>
<paragraph id="ID23E4EDD1331141219F1E5F2B90C72685"><enum>(1)</enum><text>in section 1335(a) (12
U.S.C. 4565(a)), in the matter preceding paragraph (1), by striking <quote>low-
and moderate-income housing goal</quote> and all that follows through
<quote>section 1334</quote> and inserting <quote>housing goals established
under this subpart</quote>; and</text>
</paragraph><paragraph id="ID3EC21A0E6EFB4E338EEC59B0783DA6F8"><enum>(2)</enum><text>in section 1336(a)(1) (12
U.S.C. 4566(a)(1)), by striking <quote>sections 1332, 1333, and 1334,</quote>
and inserting <quote>this subpart</quote>.</text>
</paragraph></subsection><subsection id="ID8DBFB30F11084DAE8E8670BF0675D57F"><enum>(d)</enum><header>Definitions</header><text>Section
1303 of the <act-name parsable-cite="HCDA92">Federal Housing Enterprises
Financial Safety and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>) is
amended—</text>
<paragraph id="ID787A96A7A2E74EB89355AE89DDD8C84D"><enum>(1)</enum><text>by striking paragraph
(24), as so designated by section 1002 of this Act, and inserting the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id712386443F7C4451BDECBE90CF56C303" reported-display-style="italic" style="OLC">
<paragraph id="id85246C7F5C3148A5AE9FF697D5290395"><enum>(24)</enum><header>Very
low-income</header>
<subparagraph id="idB3F51AB4651048919BF1CB58AFB31137"><enum>(A)</enum><header>In
general</header><text>The term <quote>very low-income</quote> means—</text>
<clause id="IDe6ce00af4afc43a398239b243b0b5d23"><enum>(i)</enum><text>in the case of
owner-occupied units, families having incomes not greater than 50 percent of
the area median income; and</text>
</clause><clause id="ID4f3d19d96f9f44bdb931f0c29f5badf2"><enum>(ii)</enum><text>in the case of rental
units, families having incomes not greater than 50 percent of the area median
income, with adjustments for smaller and larger families, as determined by the
Director.</text>
</clause></subparagraph><subparagraph id="id0FE4684F969D408EABB1D31AE05A02A2"><enum>(B)</enum><header>Rule of
construction</header><text>For purposes of section 1338 and 1339, the term
<term>very low-income</term> means—</text>
<clause id="idAA7A37B4800946D3824F7BDB7EA2C110"><enum>(i)</enum><text>in the case of
owner-occupied units, income in excess of 30 percent but not greater than 50
percent of the area median income; and</text>
</clause><clause id="idCFE068AFFC2048908D337DF05F15757F"><enum>(ii)</enum><text>in the case of rental
units, income in excess of 30 percent but not greater than 50 percent of the
area median income, with adjustments for smaller and larger families, as
determined by the Director.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID79C3CF2FDA77455E92E552D12C9A2D76"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID4C26FD6EA0AF4509A716A973CD787CC1" reported-display-style="italic" style="OLC">
<paragraph id="ID14C6DAC3515E48FB9C95288D771ADE17"><enum>(26)</enum><header>Conforming
mortgage</header><text>The term <term>conforming mortgage</term> means, with
respect to an enterprise, a conventional mortgage having an original principal
obligation that does not exceed the applicable dollar limitation, in effect at
the time of such origination, under—</text>
<subparagraph id="IDB833AB5EF0D841B69E9D37565D230190"><enum>(A)</enum><text>section 302(b)(2) of the
<act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter
Act</act-name>; or</text>
</subparagraph><subparagraph id="IDDFD51BAD403E4BF2A7D2029066CAF8CF"><enum>(B)</enum><text>section 305(a)(2) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name>.</text>
</subparagraph></paragraph><paragraph id="IDF62A76B0BF8040FD8CFB3C7F036B110B"><enum>(27)</enum><header>Extremely
low-income</header><text>The term <term>extremely low-income</term>
means—</text>
<subparagraph id="ID0CF1B7D94D5244BBBC3FEA7FDA2F1C36"><enum>(A)</enum><text>in the case of
owner-occupied units, income not in excess of 30 percent of the area median
income; and</text>
</subparagraph><subparagraph id="IDC4DB8D179F49483D96EA76D3F8CB4912"><enum>(B)</enum><text>in the case of rental
units, income not in excess of 30 percent of the area median income, with
adjustments for smaller and larger families, as determined by the
Director.</text>
</subparagraph></paragraph><paragraph id="IDD95D86B901F248B2BAE8A230BDD0AC78"><enum>(28)</enum><header>Low-income
area</header><text>The term <term>low-income area</term> means a census tract
or block numbering area in which the median income does not exceed 80 percent
of the median income for the area in which such census tract or block numbering
area is located, and, for the purposes of section 1332(a)(2), shall include
families having incomes not greater than 100 percent of the area median income
who reside in minority census tracts.</text>
</paragraph><paragraph id="idCC6EA9313BFA4673929CABC41FC72517"><enum>(29)</enum><header>Minority census
tract</header><text>The term <quote>minority census tract</quote> means a
census tract that has a minority population of at least 30 percent and a median
family income of less than 100 percent of the area family median income.</text>
</paragraph><paragraph id="idC101DAB79FFD4B4489DA3DC7E108EA2F"><enum>(30)</enum><header>Shortage of standard
rental units both affordable and available to extremely low-income renter
households</header>
<subparagraph id="idA587D0F4A9D24004B4A83C69E70E9E53"><enum>(A)</enum><header>In
general</header><text>The term <term>shortage of standard rental units both
affordable and available to extremely low-income renter households</term> means
the gap between—</text>
<clause id="id90F5D602E82745B7AE1011BF919EADBB"><enum>(i)</enum><text>the number of units with
complete plumbing and kitchen facilities with a rent that is 30 percent or less
of 30 percent of the adjusted area median income as determined by the Director
that are occupied by extremely low-income renter households or are vacant for
rent; and</text>
</clause><clause id="id580F605E7E824CF8964BE96EB9B198BD"><enum>(ii)</enum><text>the number of extremely
low-income renter households.</text>
</clause></subparagraph><subparagraph id="idA0382F22DEDF4988A74C61577B7418F3"><enum>(B)</enum><header>Rule of
construction</header><text>If the number of units described in subparagraph
(A)(i) exceeds the number of extremely low-income households as described in
subparagraph (A)(ii), there is no shortage.</text>
</subparagraph></paragraph><paragraph id="id98A78D3EA33D439E8A7465D8BD37AB7C"><enum>(31)</enum><header>Shortage of standard
rental units both affordable and available to very low-income renter
households</header>
<subparagraph id="idE1C5634A5DA04911AE12589D4B88B842"><enum>(A)</enum><header>In
general</header><text>The term <term>shortage of standard rental units both
affordable and available to very low-income renter households</term> means the
gap between—</text>
<clause id="idA7428673017F43D3BCC7948792B52C30"><enum>(i)</enum><text>the number of units with
complete plumbing and kitchen facilities with a rent that is 30 percent or less
of 50 percent of the adjusted area median income as determined by the Director
that are occupied by either extremely low- or very low-income renter households
or are vacant for rent; and</text>
</clause><clause id="idF5669582201D477B813703FCBA46A143"><enum>(ii)</enum><text>the number of extremely
low- and very low-income renter households.</text>
</clause></subparagraph><subparagraph id="id58D77E1800B2410193B801E5712E054D"><enum>(B)</enum><header>Rule of
construction</header><text>If the number of units described in subparagraph
(A)(i) exceeds the number of extremely low- and very low-income households as
described in subparagraph (A)(ii), there is no
shortage.</text>
</subparagraph></paragraph><after-quoted-block>.
</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="IDC4C65B48E0FC4EE5AD05335E5CE0D338"><enum>1129.</enum><header>Duty to serve
underserved markets</header>
<subsection id="IDEB747C411F6143489ECCC547E4EF6535"><enum>(a)</enum><header>Establishment and
evaluation of performance</header><text>Section 1335 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565</external-xref>) is
amended—</text>
<paragraph id="IDB39D7C6F7A684F0DB1C12820962C5457"><enum>(1)</enum><text>in the section heading,
by inserting <quote><header-in-text level="section">duty to serve underserved
markets and</header-in-text></quote> before <quote><header-in-text level="section">other</header-in-text></quote>;</text>
</paragraph><paragraph id="ID23914AC1538049CCB9573200898B2339"><enum>(2)</enum><text>by striking subsection
(b);</text>
</paragraph><paragraph id="ID2B876B7B7C204F64879153B74DE8B1D8"><enum>(3)</enum><text>in subsection (a)—</text>
<subparagraph id="IDB1FD174AE5F34A7C8FC220497F1341DD"><enum>(A)</enum><text>in the matter preceding
paragraph (1), by inserting <quote>and to carry out the duty under subsection
(a) of this section</quote> before <quote>, each enterprise
shall</quote>;</text>
</subparagraph><subparagraph id="IDCE55190EACDA4132A4D39665BAD2128F"><enum>(B)</enum><text>in paragraph (3), by
inserting <quote>and</quote> after the semicolon at the end;</text>
</subparagraph><subparagraph id="ID22B97EB5C05A46088CE43EDDDB1444B1"><enum>(C)</enum><text>in paragraph (4), by
striking <quote>; and</quote> and inserting a period;</text>
</subparagraph><subparagraph id="ID573B449C999B48B880E404BDD5B47740"><enum>(D)</enum><text>by striking paragraph
(5); and</text>
</subparagraph><subparagraph id="ID44DF512F8F8241C4B40F45ED112C1A6C"><enum>(E)</enum><text>by redesignating such
subsection as subsection (b);</text>
</subparagraph></paragraph><paragraph id="IDEEB15D64C687473093216720BE5E5CD7"><enum>(4)</enum><text>by inserting before
subsection (b) (as so redesignated by paragraph (3)(E) of this subsection) the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID92344BD01CFE4A17AB0902B7DF82FEFE" reported-display-style="italic" style="OLC">
<subsection id="ID8C518E821B304E48A86835F260F766E2"><enum>(a)</enum><header>Duty to serve
underserved markets</header>
<paragraph id="IDC2CABA40E2E846C68D8592B63F3175C6"><enum>(1)</enum><header>Duty</header><text>In
accordance with the purpose of the enterprises under section 301(3) of the
Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716</external-xref>) and section
301(b)(3) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451
note) to undertake activities relating to mortgages on housing for very low-,
low-, and moderate-income families involving a reasonable economic return that
may be less than the return earned on other activities, each enterprise shall
have the duty to increase the liquidity of mortgage investments and improve the
distribution of investment capital available for mortgage financing for
underserved markets by purchasing or securitizing mortgage investments.</text>
</paragraph><paragraph id="ID799C06C8937343D787968DC7AE5CB19B"><enum>(2)</enum><header>Underserved
markets</header><text>To meet its duty under paragraph (1), each enterprise
shall comply with the following requirements with respect to the following
underserved markets:</text>
<subparagraph id="ID46364958EDA44C8AB1AD12DDBB2D2FBF"><enum>(A)</enum><header>Manufactured
housing</header><text>The enterprise shall lead the industry in developing loan
products and flexible underwriting guidelines to facilitate a secondary market
for mortgages on manufactured homes for very low-, low-, and moderate-income
families.</text>
</subparagraph><subparagraph id="ID0519BFD9B9684FD988D75935949DB345"><enum>(B)</enum><header>Affordable housing
preservation</header><text>The enterprise shall lead the industry in developing
loan products and flexible underwriting guidelines to facilitate a secondary
market to preserve housing affordable to very <linebreak></linebreak>low-, low-, and
moderate-income families, including housing projects subsidized under—</text>
<clause id="ID38DFCAF0DE364A1BBE32D7BD920158D3"><enum>(i)</enum><text>the project-based and
tenant-based rental assistance programs under section 8 of the United States
Housing Act of 1937;</text>
</clause><clause id="ID6056DA12677B46CCA98D5C0326C5C479"><enum>(ii)</enum><text>the program under
section 236 of the National Housing Act;</text>
</clause><clause id="ID52DA6EEF8F9B4AAB8711B3FC23413D25"><enum>(iii)</enum><text>the below-market
interest rate mortgage program under section 221(d)(4) of the National Housing
Act;</text>
</clause><clause id="IDA029CFA06A0A4C4BA0A200D0F3AB663F"><enum>(iv)</enum><text>the supportive housing
for the elderly program under section 202 of the Housing Act of 1959;</text>
</clause><clause id="ID39BC9514E4A14A7D8234F1EBB6820A66"><enum>(v)</enum><text>the supportive housing
program for persons with disabilities under section 811 of the
Cranston-Gonzalez National Affordable Housing Act;</text>
</clause><clause id="ID860A5EC74774498E95B36D0E765DC146"><enum>(vi)</enum><text>the programs under title
IV of the McKinney-Vento Homeless Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/42/11361">42 U.S.C. 11361 et seq.</external-xref>), but
only permanent supportive housing projects subsidized under such programs;
and</text>
</clause><clause id="IDB7AABF759CE34A838CB3A755A6042C80"><enum>(vii)</enum><text>the rural rental
housing program under section 515 of the Housing Act of 1949.</text>
</clause></subparagraph><subparagraph id="ID1AE7CCFB5E104916B06896DA38160010"><enum>(C)</enum><header>Rural and other
underserved markets</header><text>The enterprise shall lead the industry in
developing loan products and flexible underwriting guidelines to facilitate a
secondary market for mortgages on housing for very <linebreak></linebreak>low-, low-, and
moderate-income families in rural areas, and for mortgages for housing for any
other underserved market for very low-, low-, and moderate-income families that
the Director identifies as lacking adequate credit through conventional lending
sources. Such underserved markets may be identified by borrower type, market
segment, or geographic area.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDDCFC1BF382904300A2F73B84F9FA8AA2"><enum>(5)</enum><text>by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID50C381501F374D7A90100E4D6680E1FE" reported-display-style="italic" style="OLC">
<subsection id="ID11E3960676644C6BA1949C34CA844D82"><enum>(c)</enum><header>Evaluation and
reporting of compliance</header>
<paragraph id="ID18095CD22F7D482B87CCDB59A75C9B80"><enum>(1)</enum><header>In
general</header><text>Not later than 6 months after the effective date of the
Federal Housing Finance Regulatory Reform Act of 2008, the Director shall
establish a manner for evaluating whether, and the extent to which, the
enterprises have complied with the duty under subsection (a) to serve
underserved markets and for rating the extent of such compliance. Using such
method, the Director shall, for each year, evaluate such compliance and rate
the performance of each enterprise as to extent of compliance. The Director
shall include such evaluation and rating for each enterprise for a year in the
report for that year submitted pursuant to section 1319B(a).</text>
</paragraph><paragraph id="IDE36D480782A84B1BB471183C320D2882"><enum>(2)</enum><header>Separate
evaluations</header><text>In determining whether an enterprise has complied
with the duty referred to in paragraph (1), the Director shall separately
evaluate whether the enterprise has complied with such duty with respect to
each of the underserved markets identified in subsection (a), taking into
consideration—</text>
<subparagraph id="ID95AB35C9956C46728A6CAF1208B7A6E6"><enum>(A)</enum><text>the development of loan
products and more flexible underwriting guidelines;</text>
</subparagraph><subparagraph id="ID15BB81E1AE494B8FB799A96E2EEB3D80"><enum>(B)</enum><text>the extent of outreach to
qualified loan sellers in each of such underserved markets; and</text>
</subparagraph><subparagraph id="ID24C72C29B7CC4B90A2C8D13BD840D047"><enum>(C)</enum><text>the volume of loans
purchased in each of such underserved markets.</text>
</subparagraph></paragraph><paragraph id="ID0630DACD70864CEBB3397BA4C3B0BA7D"><enum>(3)</enum><header>Manufactured housing
market</header><text>In determining whether an enterprise has complied with the
duty under subparagraph (A) of subsection (a)(2), the Director may consider
loans secured by both real and personal
property.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDF844C05A85034BF5AF8E20851DF004E7"><enum>(b)</enum><header>Enforcement</header><text>Subsection
(a) of section 1336 of the Housing and Community Development Act of 1992 (12
U.S.C. 4566(a)) is amended—</text>
<paragraph id="ID07C65EF5899E4AC6A3D0B589C240BE21"><enum>(1)</enum><text>in paragraph (1), by
inserting <quote>and with the duty under section 1335(a) of each enterprise
with respect to underserved markets,</quote> before <quote>as provided in this
section</quote>; and</text>
</paragraph><paragraph id="ID7D7CFBBD76F0466FB3397C8CE03494E2"><enum>(2)</enum><text>by adding at the end of
such subsection, as amended by the preceding provisions of this subtitle, the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDC4BA76FF63384AA798AD9AFFDCE0A8CB" reported-display-style="italic" style="OLC">
<paragraph id="ID661B5AA6641847DC9F57CDEFAB2A94E8"><enum>(4)</enum><header>Enforcement of duty to
provide mortgage credit to underserved markets</header><text>The duty under
section 1335(a) of each enterprise to serve underserved markets (as determined
in accordance with section 1335(c)) shall be enforceable under this section to
the same extent and under the same provisions that the housing goals
established under this subpart are enforceable. Such duty shall not be
enforceable under any other provision of this title (including subpart C of
this part) other than this section or under any provision of the Federal
National Mortgage Association Charter Act or the Federal Home Loan Mortgage
Corporation
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="ID6B31CB9C27954D7AAE99151A6B9D26D0"><enum>1130.</enum><header>Monitoring and
enforcing compliance with housing goals</header>
<subsection id="idC9A503E48D2841108E91E320CB30FDBC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1336 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566</external-xref>) is amended by striking
subsections (b) and (c) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idEBC44C4C1FBE4F56BFE0D92855FC43B5" reported-display-style="italic" style="OLC">
<subsection id="IDD5D246500D394A90ABA2C8290BB73747"><enum>(b)</enum><header>Notice and preliminary
determination of failure To meet goals</header>
<paragraph id="ID1115E8BB7E444C48A19D7315520EB8F2"><enum>(1)</enum><header>Notice</header><text>If
the Director preliminarily determines that an enterprise has failed, or that
there is a substantial probability that an enterprise will fail, to meet any
housing goal under this subpart, the Director shall provide written notice to
the enterprise of such a preliminary determination, the reasons for such
determination, and the information on which the Director based the
determination.</text>
</paragraph><paragraph id="ID1CD0908D54F64841A01DA1F877B272E3"><enum>(2)</enum><header>Response
period</header>
<subparagraph id="ID5E602533566B4EA49E52F47CAD74F2CE"><enum>(A)</enum><header>In
general</header><text>During the 30-day period beginning on the date on which
an enterprise is provided notice under paragraph (1), the enterprise may submit
to the Director any written information that the enterprise considers
appropriate for consideration by the Director in finally determining whether
such failure has occurred or whether the achievement of such goal was or is
feasible.</text>
</subparagraph><subparagraph id="ID46E1C1CC9E9343318108565717C94FB1"><enum>(B)</enum><header>Extended
period</header><text>The Director may extend the period under subparagraph (A)
for good cause for not more than 30 additional days.</text>
</subparagraph><subparagraph id="ID2103EC005F4A40B4B922C6ED1A1AE605"><enum>(C)</enum><header>Shortened
period</header><text>The Director may shorten the period under subparagraph (A)
for good cause.</text>
</subparagraph><subparagraph id="IDE57AE42BA030496CA2B6CFB5E283456B"><enum>(D)</enum><header>Failure to
respond</header><text>The failure of an enterprise to provide information
during the 30-day period under this paragraph (as extended or shortened) shall
waive any right of the enterprise to comment on the proposed determination or
action of the Director.</text>
</subparagraph></paragraph><paragraph id="IDC30270E47EE24FB5939F35B1419BCABE"><enum>(3)</enum><header>Consideration of
information and final determination</header>
<subparagraph id="IDBCCA420B6EBA4E57A56E1CBA7729C867"><enum>(A)</enum><header>In
general</header><text>After the expiration of the response period under
paragraph (2), or upon receipt of information provided during such period by
the enterprise, whichever occurs earlier, the Director shall issue a final
determination on—</text>
<clause id="ID2BD15C0CBD3647EC80AFFAA633D22A68"><enum>(i)</enum><text>whether the enterprise
has failed, or there is a substantial probability that the enterprise will
fail, to meet the housing goal; and</text>
</clause><clause id="ID54D105E62EBE45EA91F30444EC678916"><enum>(ii)</enum><text>whether (taking into
consideration market and economic conditions and the financial condition of the
enterprise) the achievement of the housing goal was or is feasible.</text>
</clause></subparagraph><subparagraph id="ID8D0C8A03163C4056BA124C645683F0F6"><enum>(B)</enum><header>Considerations</header><text>In
making a final determination under subparagraph (A), the Director shall take
into consideration any relevant information submitted by the enterprise during
the response period.</text>
</subparagraph><subparagraph id="ID23C19233407246F99CDF274BBBFE2FC1"><enum>(C)</enum><header>Notice</header><text>The
Director shall provide written notice, including a response to any information
submitted during the response period, to the enterprise, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the Committee on
Financial Services of the House of Representatives, of—</text>
<clause id="ID9FD1CACC91004701A4DB7AC74DB1AF9A"><enum>(i)</enum><text>each final determination
under this paragraph that an enterprise has failed, or that there is a
substantial probability that the enterprise will fail, to meet a housing
goal;</text>
</clause><clause id="ID23A1826E679745A581F493D4CFC29364"><enum>(ii)</enum><text>each final determination
that the achievement of a housing goal was or is feasible; and</text>
</clause><clause id="ID78AAD96C7B3C452FB70F6FC702308987"><enum>(iii)</enum><text>the reasons for each
such final determination.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDFB5F0BB490394BEBA4765C4B91422F9F"><enum>(c)</enum><header>Cease and desist, civil
money penalties, and remedies including housing plans</header>
<paragraph id="IDBFA1845FA01D400EB4B70357EF53BF7F"><enum>(1)</enum><header>Requirement</header><text>If
the Director finds, pursuant to subsection (b), that there is a substantial
probability that an enterprise will fail, or has actually failed, to meet any
housing goal under this subpart, and that the achievement of the housing goal
was or is feasible, the Director may require that the enterprise submit a
housing plan under this subsection. If the Director makes such a finding and
the enterprise refuses to submit such a plan, submits an unacceptable plan,
fails to comply with the plan, or the Director finds that the enterprise has
failed to meet any housing goal under this subpart, in addition to requiring an
enterprise to submit a housing plan, the Director may issue a cease and desist
order in accordance with section 1341, impose civil money penalties in
accordance with section 1345, or order other remedies as set forth in paragraph
(7).</text>
</paragraph><paragraph id="IDFDB0FF878B28494A81ED3FAEE56FF0BB"><enum>(2)</enum><header>Housing
plan</header><text>If the Director requires a housing plan under this
subsection, such a plan shall be—</text>
<subparagraph id="ID58FAAC20D0B440E3BBFBE8CB07BFF185"><enum>(A)</enum><text>a feasible plan
describing the specific actions the enterprise will take—</text>
<clause id="ID15BB26415ED34E9688484CA2D78FC5D5"><enum>(i)</enum><text>to achieve the goal for
the next calendar year; and</text>
</clause><clause id="ID48F7E45D446345458BC747249FF45C08"><enum>(ii)</enum><text>if the Director
determines that there is a substantial probability that the enterprise will
fail to meet a goal in the current year, to make such improvements and changes
in its operations as are reasonable in the remainder of such year; and</text>
</clause></subparagraph><subparagraph id="ID0B788CB38BFA4D5D86B0638548BACBEC"><enum>(B)</enum><text>sufficiently specific to
enable the Director to monitor compliance periodically.</text>
</subparagraph></paragraph><paragraph id="ID20153254BE1F4C2BBDD3BA3206FB39B4"><enum>(3)</enum><header>Deadline for
submission</header><text>The Director shall establish a deadline for an
enterprise to comply with any remedial action or submit a housing plan to the
Director, which may not be more than 45 days after the enterprise is provided
notice. The Director may extend the deadline to the extent that the Director
determines necessary. Any extension of the deadline shall be in writing and for
a time certain.</text>
</paragraph><paragraph id="IDABE00E6357434F0C827FDC839CA2BFCD"><enum>(4)</enum><header>Approval</header><text>The
Director shall review each submission by an enterprise, including a housing
plan submitted under this subsection, and, not later than 30 days after
submission, approve or disapprove the plan or other action. The Director may
extend the period for approval or disapproval for a single additional 30-day
period if the Director determines it necessary. The Director shall approve any
plan that the Director determines is likely to succeed, and conforms with the
Federal National Mortgage Association Charter Act or the Federal Home Loan
Mortgage Corporation Act (as applicable), this title, and any other applicable
provision of law.</text>
</paragraph><paragraph id="ID8AC0A6C4128849C7A8FBA39B91E3DB17"><enum>(5)</enum><header>Notice of approval and
disapproval</header><text>The Director shall provide written notice to any
enterprise submitting a housing plan of the approval or disapproval of the plan
(which shall include the reasons for any disapproval of the plan) and of any
extension of the period for approval or disapproval.</text>
</paragraph><paragraph id="ID6333DB7112064C71927586640FFE9C21"><enum>(6)</enum><header>Resubmission</header><text>If
the initial housing plan submitted by an enterprise under this section is
disapproved, the enterprise shall submit an amended plan acceptable to the
Director not later than 15 days after such disapproval, or such longer period
that the Director determines is in the public interest.</text>
</paragraph><paragraph id="IDF9B2EB0A1D37496B8FD3E4F900B91FE8"><enum>(7)</enum><header>Additional remedies for
failure to meet goals</header><text>In addition to ordering a housing plan
under this section, issuing cease and desist orders under section 1341, and
ordering civil money penalties under section 1345, the Director may—</text>
<subparagraph id="IDE96FC43CB37049EAACE6EEFE7720A0CF"><enum>(A)</enum><text>seek other actions when
an enterprise fails to meet a goal; and</text>
</subparagraph><subparagraph id="ID5E1A8DD7EE834F4DB49439A026984BFC"><enum>(B)</enum><text>exercise appropriate
enforcement authority available to the Director under this
Act.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id7592F77D62A04B72A35A285DE33861CD"><enum>(b)</enum><header>Conforming
Amendment</header><text>The heading for subpart C of part 2 of subtitle A of
the <act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial
Safety and Soundness Act of 1992</act-name> is amended to read as
follows:</text>
<quoted-block act-name="Housing and Community Development Act of 1992" changed="added" id="id3038969D6A7348188C526A7062E04DB9" reported-display-style="italic" style="OLC">
<subpart id="idEA0277329D5E4C08A08E6346F78081D9"><enum>C</enum><header>Enforcement</header>
</subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID7B2C307829CB47C5988AB2C48E947B1B"><enum>(c)</enum><header>Cease and desist
proceedings </header>
<paragraph id="id673137DDD20B44A3A0BCD31DB7789D1D"><enum>(1)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1341 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4581">12 U.S.C. 4581</external-xref>)</act-name> is hereby
repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4E929A7FBBDC4981971BF3048D1D172E"><enum>(2)</enum><header>Cease and desist
proceedings</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is </act-name>amended by inserting before section
1342 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDECED5D8B551E470C9B04222CEC7C36E9" reported-display-style="italic" style="OLC">
<section id="IDCA0354A60E9D49198F0315B6210C7609"><enum>1341.</enum><header>Cease and desist
proceedings</header>
<subsection id="ID77BA2B3840FD4AE1B71867AEF0F2DA7E"><enum>(a)</enum><header>Grounds for
issuance</header><text>The Director may issue and serve a notice of charges
under this section upon an enterprise if the Director determines that—</text>
<paragraph id="IDDEFFF7CF85004D9A9FFDB909FE1E2299"><enum>(1)</enum><text>the enterprise has failed
to meet any housing goal established under subpart B, following a written
notice and determination of such failure in accordance with section
1336;</text>
</paragraph><paragraph id="ID4674DCB4ED9E4A90BBA097111C11B0FB"><enum>(2)</enum><text>the enterprise has failed
to submit a report under section 1327, following a notice of such failure, an
opportunity for comment by the enterprise, and a final determination by the
Director;</text>
</paragraph><paragraph id="ID7644FF44CD764EFEA3792E87B36E5338"><enum>(3)</enum><text>the enterprise has failed
to submit the information required under subsection (m) or (n) of section 309
of the Federal National Mortgage Association Charter Act, subsection (e) or (f)
of section 307 of the Federal Home Loan Mortgage Corporation Act, or section
1337 of this title;</text>
</paragraph><paragraph id="ID0C2B2CFD8A31492A8B3AC137EECCE812"><enum>(4)</enum><text>the enterprise has
violated any provision of part 2 of this title or any order, rule, or
regulation under part 2;</text>
</paragraph><paragraph id="IDBDF455D5B97147F08399F15C2AF13116"><enum>(5)</enum><text>the enterprise has failed
to submit a housing plan or perform its responsibilities under a remedial order
that substantially complies with section 1336(c) within the applicable period;
or</text>
</paragraph><paragraph id="ID91972B6C80AA452A98FBB32D1CF2921B"><enum>(6)</enum><text>the enterprise has failed
to comply with a housing plan under section 1336(c).</text>
</paragraph></subsection><subsection id="ID46F77695819A4C0B8CAA9D67A21EF0B0"><enum>(b)</enum><header>Procedure</header>
<paragraph id="ID58F4E863675C4EB0AD9174E76092A3E4"><enum>(1)</enum><header>Notice of
charges</header><text>Each notice of charges issued under this section shall
contain a statement of the facts constituting the alleged conduct and shall fix
a time and place at which a hearing will be held to determine on the record
whether an order to cease and desist from such conduct should issue.</text>
</paragraph><paragraph id="ID8D4BEF725CC14D5EA75313F3AD93012D"><enum>(2)</enum><header>Issuance of
order</header><text>If the Director finds on the record made at a hearing
described in paragraph (1) that any conduct specified in the notice of charges
has been established (or the enterprise consents pursuant to section
1342(a)(4)), the Director may issue and serve upon the enterprise an order
requiring the enterprise to—</text>
<subparagraph id="ID70DF60352308429BA084D99D4F9E1014"><enum>(A)</enum><text>comply with the
goals;</text>
</subparagraph><subparagraph id="ID67336D06388642E3A9CCA4F9F05C1D66"><enum>(B)</enum><text>submit a report under
section 1327;</text>
</subparagraph><subparagraph id="ID79222596FFA142089E250A2F79779D5B"><enum>(C)</enum><text>comply with any provision
of part 2 of this title or any order, rule, or regulation under part 2;</text>
</subparagraph><subparagraph id="ID1EBB5E19E1AD49438E1398B8518F5598"><enum>(D)</enum><text>submit a housing plan in
compliance with section 1336(c);</text>
</subparagraph><subparagraph id="IDA124E735CC6A4661B6AE5941DAEEB20B"><enum>(E)</enum><text>comply with the housing
plan in compliance with section 1336(c); or</text>
</subparagraph><subparagraph id="ID4DE46FB9E60E4C4A9E8AA816301C5D1F"><enum>(F)</enum><text>provide the information
required under subsection (m) or (n) of section 309 of the Federal National
Mortgage Association Charter Act, or subsection (e) or (f) of section 307 of
the Federal Home Loan Mortgage Corporation Act.</text>
</subparagraph></paragraph></subsection><subsection id="ID0F1DF38802154859BCC20BFFD11CF32B"><enum>(c)</enum><header>Effective
date</header><text>An order under this section shall become effective upon the
expiration of the 30-day period beginning on the date of service of the order
upon the enterprise (except in the case of an order issued upon consent, which
shall become effective at the time specified therein), and shall remain
effective and enforceable as provided in the order, except to the extent that
the order is stayed, modified, terminated, or set aside by action of the
Director or otherwise, as provided in this
subpart.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB661175D20234441B566BDBD93EE1C17"><enum>(d)</enum><header>Civil money
penalties</header>
<paragraph id="id9B96D7C4951B442F878EB9B8C108A25D"><enum>(1)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1345 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585</external-xref>)</act-name> is hereby
repealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF830F4C552A643DB8F5122635EA0275E"><enum>(2)</enum><header>Civil money
penalties</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is </act-name>amended by inserting after section 1344
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID8581C7466EDB4E7D8487D52640B6B291" reported-display-style="italic" style="OLC">
<section id="ID9F4C6F8D341F49C9A41BF7D804D3E13B"><enum>1345.</enum><header>Civil money
penalties</header>
<subsection id="ID874CADEF7D064839878BB624F0C0D654"><enum>(a)</enum><header>Authority</header><text>The
Director may impose a civil money penalty, in accordance with the provisions of
this section, on any enterprise that has failed to—</text>
<paragraph id="ID01AE5D964DB44D5B80DC514EA2A8F6B0"><enum>(1)</enum><text>meet any housing goal
established under subpart B, following a written notice and determination of
such failure in accordance with section 1336(b);</text>
</paragraph><paragraph id="ID928FE3BE345144C598556AF75070C06E"><enum>(2)</enum><text>submit a report under
section 1327, following a notice of such failure, an opportunity for comment by
the enterprise, and a final determination by the Director;</text>
</paragraph><paragraph id="IDF9A3FE2DD4F342FFB6AB30A58D4678C9"><enum>(3)</enum><text>submit the information
required under subsection (m) or (n) of section 309 of the Federal National
Mortgage Association Charter Act or subsection (e) or (f) of section 307 of the
Federal Home Loan Mortgage Corporation Act;</text>
</paragraph><paragraph id="IDDEC82719FE1142AE88871F6C8EFCA02C"><enum>(4)</enum><text>comply with any provision
of part 2 of this title or any order, rule, or regulation under part 2;</text>
</paragraph><paragraph id="IDB6E01315A78D49ECBE0757978DC3049A"><enum>(5)</enum><text>submit a housing plan or
perform its responsibilities under a remedial order issued pursuant to section
1336(c) within the required period; or</text>
</paragraph><paragraph id="ID282F732579F44D459B03352AAF586E8D"><enum>(6)</enum><text>comply with a housing
plan for the enterprise under section 1336(c).</text>
</paragraph></subsection><subsection id="ID2EE80DA8B65D4C7888CFA09071B72D86"><enum>(b)</enum><header>Amount of
penalty</header><text>The amount of a penalty under this section, as determined
by the Director, may not exceed—</text>
<paragraph id="IDA3A3DDE3EE6C4F2DBD3B16659B26A5FE"><enum>(1)</enum><text>for any failure described
in paragraph (1), (5), or (6) of subsection (a), $100,000 for each day that the
failure occurs; and</text>
</paragraph><paragraph id="ID0440AF9AE952486BAB9438EA0DF0126C"><enum>(2)</enum><text>for any failure described
in paragraph (2), (3), or (4) of subsection (a), $50,000 for each day that the
failure occurs.</text>
</paragraph></subsection><subsection id="IDDC5DF3C81B4A4F5E92579A5241AA5FAA"><enum>(c)</enum><header>Procedures</header>
<paragraph id="ID1A72C62273D74B8CA2BACF49D3B46E1C"><enum>(1)</enum><header>Establishment</header><text>The
Director shall establish standards and procedures governing the imposition of
civil money penalties under this section. Such standards and procedures—</text>
<subparagraph id="ID18C72EE514D44952BF3E50D766DC9712"><enum>(A)</enum><text>shall provide for the
Director to notify the enterprise in writing of the determination of the
Director to impose the penalty, which shall be made on the record;</text>
</subparagraph><subparagraph id="ID68D8BA6353DB4976A255350ECF259130"><enum>(B)</enum><text>shall provide for the
imposition of a penalty only after the enterprise has been given an opportunity
for a hearing on the record pursuant to section 1342; and</text>
</subparagraph><subparagraph id="ID8E9A304154FE42AA8184A9A88537D6A5"><enum>(C)</enum><text>may provide for review by
the Director of any determination or order, or interlocutory ruling, arising
from a hearing.</text>
</subparagraph></paragraph><paragraph id="IDD572DCBD3338466FB2F2AEB8E65C84B1"><enum>(2)</enum><header>Factors in determining
amount of penalty</header><text>In determining the amount of a penalty under
this section, the Director shall give consideration to factors
including—</text>
<subparagraph id="ID63E67D02E15B4DD5A8D6996A3552D5BE"><enum>(A)</enum><text>the gravity of the
offense;</text>
</subparagraph><subparagraph id="ID49C170F1F122407286515BD9A6F35788"><enum>(B)</enum><text>any history of prior
offenses;</text>
</subparagraph><subparagraph id="ID5FA42A34D88E4587A3B3036602A30A54"><enum>(C)</enum><text>ability to pay the
penalty;</text>
</subparagraph><subparagraph id="ID38BFB56712F8494FBA293FA2474F6649"><enum>(D)</enum><text>injury to the
public;</text>
</subparagraph><subparagraph id="ID01C58F90A34E40D48DA3350E89149CC4"><enum>(E)</enum><text>benefits received;</text>
</subparagraph><subparagraph id="ID3A874ECCDE1348449F822F7E0210BB75"><enum>(F)</enum><text>deterrence of future
violations;</text>
</subparagraph><subparagraph id="IDE12878697F514F088DEA7A4ED54DF8E3"><enum>(G)</enum><text>the length of time that
the enterprise should reasonably take to achieve the goal; and</text>
</subparagraph><subparagraph id="IDBAE81F3800B647BC936783DCC807103B"><enum>(H)</enum><text>such other factors as the
Director may determine, by regulation, to be appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="IDF67460B87A1240E9B38BA562B82D759F"><enum>(d)</enum><header>Action To collect
penalty</header><text>If an enterprise fails to comply with an order by the
Director imposing a civil money penalty under this section, after the order is
no longer subject to review, as provided in sections 1342 and 1343, the
Director may bring an action in the United States District Court for the
District of Columbia to obtain a monetary judgment against the enterprise, 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 id="IDB7F8478D5E6B44CFB8F3835AE4C6F6D6"><enum>(e)</enum><header>Settlement by
director</header><text>The Director may compromise, modify, or remit any civil
money penalty which may be, or has been, imposed under this section.</text>
</subsection><subsection id="IDABE2E895D7664440A9A109B637815E9C"><enum>(f)</enum><header>Deposit of
penalties</header><text>The Director shall use any civil money penalties
collected under this section to help fund the Housing Trust Fund established
under section
1338.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idFE18D4A6CC4048789F7348B13AE28AF2"><enum>(e)</enum><header>Director
authority</header>
<paragraph id="idDEE4B26D0BC240728269FC4180E060BF"><enum>(1)</enum><header>Authority to bring a
civil action</header><text>Section 1344(a) of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4584">12 U.S.C. 4584</external-xref>) is amended by striking
<quote>The Secretary may request the Attorney General of the United States to
bring a civil action</quote> and inserting <quote>The Director may bring a
civil action</quote>.</text>
</paragraph><paragraph id="id4ED99208A31940F5812B0C608BE4687F"><enum>(2)</enum><header>Subpoena
enforcement</header><text>Section 1348(c) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4588">12 U.S.C. 4588(c)</external-xref>) is amended by
inserting <quote>may bring an action or</quote> before <quote>may
request</quote>.</text>
</paragraph><paragraph id="id067DC93C2CE14C8697DB27F919C3E839"><enum>(3)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Subpart C of part
2 of subtitle A of the <act-name parsable-cite="HCDA92">Federal Housing
Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C.
4581 et seq.) is amended by striking <quote>Secretary</quote> each place that
term appears and inserting <quote>Director</quote> in each of—</text>
<subparagraph id="IDD62094CD6FA34A0C8C71BF02B89E5258"><enum>(A)</enum><text>section 1342 (12 U.S.C.
4582);</text>
</subparagraph><subparagraph id="ID22487F40845247499EC2371433D54418"><enum>(B)</enum><text>section 1343 (12 U.S.C.
4583);</text>
</subparagraph><subparagraph id="ID2C9F305681E24BCA983B32138EF2A551"><enum>(C)</enum><text>section 1346 (12 U.S.C.
4586);</text>
</subparagraph><subparagraph id="ID6A585BF8D99745D8970763DCF79D0B1C"><enum>(D)</enum><text>section 1347 (12 U.S.C.
4587); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9C532CEC8DF24652A4D4315E9E70E9B8"><enum>(E)</enum><text>section 1348 (12 U.S.C.
4588).</text>
</subparagraph></paragraph></subsection></section><section id="IDFFA1B74103A0460BAA69D31C16730440"><enum>1131.</enum><header>Affordable housing
programs</header>
<subsection id="id066EC54A0D984DE4A175CFB898C77559"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">Section 1337 of the
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4567">12 U.S.C. 4567</external-xref>)</act-name> is hereby
repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id40964943A5114097AE3591413F395FB6"><enum>(b)</enum><header>Annual housing
report</header><text display-inline="yes-display-inline">The
<act-name parsable-cite="HCDA92">Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1301">12 U.S.C. 1301 et seq.</external-xref>) is </act-name>amended by
inserting after section 1336 the following:</text>
<quoted-block act-name="Housing and Community Development Act of 1992" changed="added" id="IDF07D7C18BF1443DD91ACAD05F61C7C3E" reported-display-style="italic" style="OLC">
<section id="ID66DBD1D5C242413B8D93838F903079AA"><enum>1337.</enum><header>Affordable Housing
allocations</header>
<subsection id="ID84a37124fab7438c9b2b139eee2cbfd1"><enum>(a)</enum><header>Set aside and
allocation of amounts by enterprises</header><text>Subject to subsection (b),
in each fiscal year—</text>
<paragraph id="ID23129ea7013f48baa517606f47cfa249"><enum>(1)</enum><text>the Federal Home Loan
Mortgage Corporation shall—</text>
<subparagraph id="id0EF3B8A1A1694DB1BBF85BA855B14690"><enum>(A)</enum><text>set aside an amount equal
to 4.2 basis points for each dollar of the unpaid principal balance of its
total new business purchases; and</text>
</subparagraph><subparagraph id="id42F9351A861141E9B4F15DB4DD3F0825"><enum>(B)</enum><text>allocate or otherwise
transfer—</text>
<clause id="id613428D78286451CA4C6D5CB8400BBE4"><enum>(i)</enum><text>65 percent of such
amounts to the Secretary of Housing and Urban Development to fund the Housing
Trust Fund established under section 1338; and</text>
</clause><clause id="id38C965EFB8C24BA3A192A5B1C553F455"><enum>(ii)</enum><text>35 percent of such
amounts to fund the Capital Magnet Fund established pursuant to section 1339;
and</text>
</clause></subparagraph></paragraph><paragraph id="IDf805b6eb56974e119472995c21f373f8"><enum>(2)</enum><text>the Federal National
Mortgage Association shall—</text>
<subparagraph id="idBD17C877BBA34F24A72DF652898DFFE7"><enum>(A)</enum><text>set aside an amount equal
to 4.2 basis points for each dollar of unpaid principal balance of its total
new business purchases; and</text>
</subparagraph><subparagraph id="id7D26E74E6B594E5B83DBA4E5D21AAF4F"><enum>(B)</enum><text>allocate or otherwise
transfer—</text>
<clause id="idA72DF7F34A014E3BA6DDB3807B906408"><enum>(i)</enum><text>65 percent of such
amounts to the Secretary of Housing and Urban Development to fund the Housing
Trust Fund established under section 1338; and</text>
</clause><clause id="id3E9A3B63146047218EFDE265CD20666A"><enum>(ii)</enum><text>35 percent of such
amounts to fund the Capital Magnet Fund established pursuant to section
1339.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID5cca3543270b40a8b739819fed45c7cc"><enum>(b)</enum><header>Suspension of
contributions</header><text>The Director shall temporarily suspend allocations
under subsection (a) by an enterprise upon a finding by the Director that such
allocations—</text>
<paragraph id="ID49061017276e4d4e8568bb115de06aeb"><enum>(1)</enum><text>are contributing, or
would contribute, to the financial instability of the enterprise;</text>
</paragraph><paragraph id="ID8e04e7c41efd4f72aca7587a95c2092e"><enum>(2)</enum><text>are causing, or would
cause, the enterprise to be classified as undercapitalized; or</text>
</paragraph><paragraph id="ID152eb6f295aa444883d32216a26df23c"><enum>(3)</enum><text>are preventing, or would
prevent, the enterprise from successfully completing a capital restoration plan
under section 1369C.</text>
</paragraph></subsection><subsection id="IDbac471ccaf5c43e9a537e9284c26931a"><enum>(c)</enum><header>Prohibition of
pass-through of cost of allocations</header><text>The Director shall, by
regulation, prohibit each enterprise from redirecting the costs of any
allocation required under this section, through increased charges or fees, or
decreased premiums, or in any other manner, to the originators of mortgages
purchased or securitized by the enterprise.</text>
</subsection><subsection id="ID4bc6cfb505a94ebabf0666b00bfd574b"><enum>(d)</enum><header>Enforcement of
requirements on enterprise</header><text>Compliance by the enterprises with the
requirements under this section shall be enforceable under subpart C. Any
reference in such subpart to this part or to an order, rule, or regulation
under this part specifically includes this section and any order, rule, or
regulation under this section.</text>
</subsection><subsection id="IDEEB45B6E1A3244DABC8C89224A08FB68"><enum>(e)</enum><header>Required amount for
HOPE reserve fund</header><text>Of the aggregate amount allocated under
subsection (a), 25 percent shall be deposited into a fund established in the
Treasury of the United States by the Secretary of the Treasury for such
purpose.</text>
</subsection><subsection id="idAC97910E7B9E4FDFA5FF5A7C632479BD"><enum>(f)</enum><header>Limitation</header><text>No
funds under this title may be used in conjunction with property taken by
eminent domain, unless eminent domain is employed only for a public use, except
that, for purposes of this section, public use shall not be construed to
include economic development that primarily benefits any private entity.</text>
</subsection></section><section id="ID80af487595ea419189d82b32a413067c"><enum>1338.</enum><header>Housing Trust
Fund</header>
<subsection id="id9CBEDBDCC329480D8A51928A944BA99D"><enum>(a)</enum><header>Establishment and
purpose</header><text display-inline="yes-display-inline">The Secretary of
Housing and Urban Development (in this section referred to as the
<quote>Secretary</quote>) shall establish and manage a Housing Trust Fund,
which shall be funded with amounts allocated by the enterprises under section
1337 and any amounts as are or may be appropriated, transferred, or credited to
such Housing Trust Fund under any other provisions of law. The purpose of the
Housing Trust Fund under this section is to provide grants to States for
use—</text>
<paragraph id="ID17b8e9cef2d44a5da5eb0783b5378391"><enum>(1)</enum><text>to increase and preserve
the supply of rental housing for extremely low- and very low-income families,
including homeless families; and</text>
</paragraph><paragraph id="ID9e093c9778a043a0a8ec1d15652ff6e3"><enum>(2)</enum><text>to increase homeownership
for extremely low- and very low-income families.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2F77038B5D6A4A608E7467D172C5199D"><enum>(b)</enum><header display-inline="yes-display-inline">Allocations for HOPE bond payments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id300439B2127243D8912BD0254365237E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
subsection (c), to help address the mortgage crisis, of the amounts allocated
pursuant to clauses (i) and (ii) of section 1337(a)(1)(B) and clauses (i) and
(ii) of section 1337(a)(2)(B) in excess of amounts described in section
1337(e)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2C67272212CB4EF484F85EA72BEE4532"><enum>(A)</enum><text>100 percent of such
excess shall be used to reimburse the Treasury for payments made pursuant to
section 257(w)(1)(C) of the National Housing Act in calendar year 2009;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9BC15303B2CD4966BBA19541DCB33403"><enum>(B)</enum><text>50 percent of such excess
shall be used to reimburse the Treasury for such payments in calendar year
2010; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id40EBD529C6D64C628D7E2B8C9260D1EE"><enum>(C)</enum><text>25 percent of such excess
shall be used to reimburse the Treasury for such payments in calendar year
2011.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id63C963AFFC6E44EE98D5FC4721DC851C"><enum>(2)</enum><header>Excess
funds</header><text>At the termination of the HOPE for Homeowners Program
established under section 257 of the National Housing Act, if amounts used to
reimburse the Treasury under paragraph (1) exceed the total net cost to the
Government of the HOPE for Homeowners Program, such amounts shall be used for
their original purpose, as described in paragraphs (1)(B) and (2)(B) of section
1337(a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id566DD7C18290421DB4EBF6A1C7F6A960"><enum>(3)</enum><header>Treasury
fund</header><text>The amounts referred to in subparagraphs (A) through (C) of
paragraph (1) shall be deposited into a fund established in the Treasury of the
United States by the Secretary of the Treasury for such purpose.</text>
</paragraph></subsection><subsection id="IDa9dd4380467246ac81b3486bf22b13b8"><enum>(c)</enum><header>Allocation for Housing
Trust Fund in fiscal year 2010 and subsequent years</header>
<paragraph id="ID6fc5de3837d7438981905ee57953fae5"><enum>(1)</enum><header>In
general</header><text>Except as provided in subsection (b), the Secretary shall
distribute the amounts allocated for the Housing Trust Fund under this section
to provide affordable housing as described in this subsection.</text>
</paragraph><paragraph id="idFC3C17E7430D40A4909392EFD5EA6B5B"><enum>(2)</enum><header>Permissible
designees</header><text>A State receiving grant amounts under this subsection
may designate a State housing finance agency, housing and community development
entity, tribally designated housing entity (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>)), or any other qualified instrumentality of the State to
receive such grant amounts.</text>
</paragraph><paragraph id="ID20146e4f53cd4e43bb8961850b669b9f"><enum>(3)</enum><header>Distribution to States
by needs-based formula</header>
<subparagraph id="idAC6145FA9D7149F5A8578A5C83D8FD1A"><enum>(A)</enum><header>In
general</header><text>The Secretary shall, by regulation, establish a formula
within 12 months of the date of enactment of the Federal Housing Finance
Regulatory Reform Act of 2008, to distribute amounts made available under this
subsection to each State to provide affordable housing to extremely low- and
very low-income households.</text>
</subparagraph><subparagraph id="id28ED67F7DDA64A8DAA737B311651BE6D"><enum>(B)</enum><header>Basis for
formula</header><text>The formula required under subparagraph (A) shall include
the following:</text>
<clause id="ID8c92568da2eb4c3a8409e16ed73d4724"><enum>(i)</enum><text>The ratio of the shortage
of standard rental units both affordable and available to extremely low-income
renter households in the State to the aggregate shortage of standard rental
units both affordable and available to extremely low-income renter households
in all the States.</text>
</clause><clause id="IDc463ea3daed1469185da7085cf7b82c4"><enum>(ii)</enum><text>The ratio of the
shortage of standard rental units both affordable and available to very
low-income renter households in the State to the aggregate shortage of standard
rental units both affordable and available to very low-income renter households
in all the States.</text>
</clause><clause id="ID831660c6ca3c4cfda1430d74f1b1a95d"><enum>(iii)</enum><text>The ratio of extremely
low-income renter households in the State living with either (I) incomplete
kitchen or plumbing facilities, (II) more than 1 person per room, or (III)
paying more than 50 percent of income for housing costs, to the aggregate
number of extremely low-income renter households living with either (IV)
incomplete kitchen or plumbing facilities, (V) more than 1 person per room, or
(VI) paying more than 50 percent of income for housing costs in all the
States.</text>
</clause><clause id="ID02979c5615ed448b8cce41d6b23dfb23"><enum>(iv)</enum><text>The ratio of very
low-income renter households in the State paying more than 50 percent of income
on rent relative to the aggregate number of very low-income renter households
paying more than 50 percent of income on rent in all the States.</text>
</clause><clause id="IDc1604fd2a3f644b4a6ddb53d3b17bf80"><enum>(v)</enum><text>The resulting sum
calculated from the factors described in clauses (i) through (iv) shall be
multiplied by the relative cost of construction in the State. For purposes of
this subclause, the term <quote>cost of construction</quote>—</text>
<subclause id="id69620CC9264B49D283E8163165E6C57B"><enum>(I)</enum><text>means the cost of
construction or building rehabilitation in the State relative to the national
cost of construction or building rehabilitation; and</text>
</subclause><subclause id="id7FAE97868CF5400C867F43C2EF0891A8"><enum>(II)</enum><text>shall be calculated such
that values higher than 1.0 indicate that the State’s construction costs are
higher than the national average, a value of 1.0 indicates that the State’s
construction costs are exactly the same as the national average, and values
lower than 1.0 indicate that the State’s cost of construction are lower than
the national average.</text>
</subclause></clause></subparagraph><subparagraph id="idAA0A00FC82F1400E8D055BD7BCA80AD4"><enum>(C)</enum><header>Priority</header><text>The
formula required under subparagraph (A) shall give priority emphasis and
consideration to the factor described in subparagraph (B)(i).</text>
</subparagraph></paragraph><paragraph id="ID23b551679f2c41a7a61c06b27c3c2302"><enum>(4)</enum><header>Allocation of grant
amounts</header>
<subparagraph id="IDb37302526568494b926538eb28149c9a"><enum>(A)</enum><header>Notice</header><text>Not
later than 60 days after the date that the Secretary determines the formula
amounts described in paragraph (3), the Secretary shall caused to be published
in the Federal Register a notice that such amounts shall be so
available.</text>
</subparagraph><subparagraph id="ID7f87c38430d84b58a168bd2ac1e5272a"><enum>(B)</enum><header>Grant
amount</header><text>In each fiscal year other than fiscal year 2009, the
Secretary shall make a grant to each State in an amount that is equal to the
formula amount determined under paragraph (3) for that State.</text>
</subparagraph><subparagraph id="id65FC31A0C9E240CBAA870998FEA5D3AB"><enum>(C)</enum><header>Minimum State
allocations</header><text>If the formula amount determined under paragraph (3)
for a fiscal year would allocate less than $3,000,000 to any State, the
allocation for such State shall be $3,000,000, and the increase shall be
deducted pro rata from the allocations made to all other States.</text>
</subparagraph></paragraph><paragraph id="ID540ab1b8c6d349fcbf912349a67fd1e2"><enum>(5)</enum><header>Allocation plans
required</header>
<subparagraph id="ID117253512e664c6cb275ce99dc3b4bbb"><enum>(A)</enum><header>In
general</header><text>For each year that a State or State designated entity
receives a grant under this subsection, the State or State designated entity
shall establish an allocation plan. Such plan shall—</text>
<clause id="idA0F05A1327C64CEC86A8C26021757AB2"><enum>(i)</enum><text>set forth a plan for the
distribution of grant amounts received by the State or State designated entity
for such year;</text>
</clause><clause id="id3D2AA682BAC64C25B83158A155FF4DE9"><enum>(ii)</enum><text>be based on priority
housing needs, as determined by the State or State designated entity in
accordance with the regulations established under subsection (g)(2)(C);</text>
</clause><clause id="IDbbba98fa680944f6ba5b13792e8a2559"><enum>(iii)</enum><text>comply with paragraph
(6); and</text>
</clause><clause id="ID817e420cd5e14b9abf2b53212fd4c8b3"><enum>(iv)</enum><text>include performance
goals that comply with the requirements established by the Secretary pursuant
to subsection (g)(2).</text>
</clause></subparagraph><subparagraph id="ID2fcdfe0fce8e46e79a19e1f54aaaa09f"><enum>(B)</enum><header>Establishment</header><text>In
establishing an allocation plan under this paragraph, a State or State
designated entity shall—</text>
<clause id="id5A7F852D3C98490F8F03315F62088736"><enum>(i)</enum><text>notify the public of the
establishment of the plan;</text>
</clause><clause id="idDCFC1D2E6B554CEC8EB92D9E46162B02"><enum>(ii)</enum><text>provide an opportunity
for public comments regarding the plan;</text>
</clause><clause id="id179EC91144D54B81B979EEBFF44B5FA5"><enum>(iii)</enum><text>consider any public
comments received regarding the plan; and</text>
</clause><clause id="idB5915FFA903143D5A3FC7DDEE2DF0035"><enum>(iv)</enum><text>make the completed plan
available to the public.</text>
</clause></subparagraph><subparagraph id="ID0de7ed251cd9432395a2c19a1e740620"><enum>(C)</enum><header>Contents</header><text>An
allocation plan of a State or State designated entity under this paragraph
shall set forth the requirements for eligible recipients under paragraph (8) to
apply for such grant amounts, including a requirement that each such
application include—</text>
<clause id="ID7c4677ca3dfa43098d26d226e4f09660"><enum>(i)</enum><text>a description of the
eligible activities to be conducted using such assistance; and</text>
</clause><clause id="IDf101f055183a4e33ae05249746615867"><enum>(ii)</enum><text>a certification by the
eligible recipient applying for such assistance that any housing units assisted
with such assistance will comply with the requirements under this
section.</text>
</clause></subparagraph></paragraph><paragraph id="IDecf61e3e1cc8407187ff08ad7c7888a8"><enum>(6)</enum><header>Selection of activities
funded using housing trust fund grant amounts</header><text>Grant amounts
received by a State or State designated entity under this subsection may be
used, or committed for use, only for activities that—</text>
<subparagraph id="ID52f0866e54d04cd4abcf6c7bbe899d92"><enum>(A)</enum><text>are eligible under
paragraph (7) for such use;</text>
</subparagraph><subparagraph id="IDf36e223804064871a9ed4e07a93ec0fb"><enum>(B)</enum><text>comply with the
applicable allocation plan of the State or State designated entity under
paragraph (5); and</text>
</subparagraph><subparagraph id="IDcff6eed2c2a74450bb58bfc9c8a6d11e"><enum>(C)</enum><text>are selected for funding
by the State or State designated entity in accordance with the process and
criteria for such selection established pursuant to subsection
(g)(2)(C).</text>
</subparagraph></paragraph><paragraph id="ID4cbaebd3a4e54dd488e242b42ac54a40"><enum>(7)</enum><header>Eligible
activities</header><text>Grant amounts allocated to a State or State designated
entity under this subsection shall be eligible for use, or for commitment for
use, only for assistance for—</text>
<subparagraph id="IDeb4e30cb46da4a0880bb3914e1220eee"><enum>(A)</enum><text>the production,
preservation, and rehabilitation of rental housing, including housing under the
programs identified in section 1335(a)(2)(B) and for operating costs, except
that not less than 75 percent of such grant amounts shall be used for the
benefit only of extremely low-income families and not more than 25 percent for
the benefit only of very low-income families; and</text>
</subparagraph><subparagraph id="IDc014de67bf204aecbd23e8220aed9fff"><enum>(B)</enum><text>the production,
preservation, and rehabilitation of housing for homeownership, including such
forms as down payment assistance, closing cost assistance, and assistance for
interest rate buy-downs, that—</text>
<clause id="ID1438800550994dabb73c96f7a490a61e"><enum>(i)</enum><text>is available for purchase
only for use as a principal residence by families that qualify both as—</text>
<subclause id="ID661e3679de1c467891216e9228145db5"><enum>(I)</enum><text>extremely low- and very
low-income families at the times described in subparagraphs (A) through (C) of
section 215(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12745(b)(2)); and</text>
</subclause><subclause id="IDffdc6b8d4e124ac29a3e00909d0ab749"><enum>(II)</enum><text>first-time homebuyers,
as such term is defined in section 104 of the Cranston-Gonzalez National
Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704</external-xref>), except that any reference in such
section to assistance under title II of such Act shall for purposes of this
subsection be considered to refer to assistance from affordable housing fund
grant amounts;</text>
</subclause></clause><clause id="ID7d6559ccb1634d5cb3704d96facb2812"><enum>(ii)</enum><text>has an initial purchase
price that meets the requirements of section 215(b)(1) of the Cranston-Gonzalez
National Affordable Housing Act;</text>
</clause><clause id="IDba5af7d904714b2d87105001821ef554"><enum>(iii)</enum><text>is subject to the same
resale restrictions established under section 215(b)(3) of the
Cranston-Gonzalez National Affordable Housing Act and applicable to the
participating jurisdiction that is the State in which such housing is located;
and</text>
</clause><clause id="IDb9c28b8be5bc4612811998f4e35aaaa3"><enum>(iv)</enum><text>is made available for
purchase only by, or in the case of assistance under this subsection, is made
available only to homebuyers who have, before purchase completed a program of
independent financial education and counseling from an eligible organization
that meets the requirements of section 132 of the Federal Housing Finance
Regulatory Reform Act of 2008.</text>
</clause></subparagraph></paragraph><paragraph id="ID7831a23f0e7b431bb83e382ace2f822d"><enum>(8)</enum><header>Eligible
recipients</header><text>Grant amounts allocated to a State or State designated
entity under this subsection may be provided only to a recipient that is an
organization, agency, or other entity (including a for-profit entity or a
nonprofit entity) that—</text>
<subparagraph id="IDc8850d00bd394990a3f5c821f4ad783f"><enum>(A)</enum><text>has demonstrated
experience and capacity to conduct an eligible activity under paragraph (7), as
evidenced by its ability to—</text>
<clause id="ID5317e87a5dca43f4b5e15f1d4652d350"><enum>(i)</enum><text>own, construct or
rehabilitate, manage, and operate an affordable multifamily rental housing
development;</text>
</clause><clause id="IDa30e78aaed5b4d02b5400bc38b8bc5ef"><enum>(ii)</enum><text>design, construct or
rehabilitate, and market affordable housing for homeownership; or</text>
</clause><clause id="ID9197101850f44e938ed613180b080b29"><enum>(iii)</enum><text>provide forms of
assistance, such as down payments, closing costs, or interest rate buy-downs
for purchasers;</text>
</clause></subparagraph><subparagraph id="IDa6905c146f9c40efa638ce1938e47ab0"><enum>(B)</enum><text>demonstrates the ability
and financial capacity to undertake, comply, and manage the eligible
activity;</text>
</subparagraph><subparagraph id="ID51bcc10c25444349acbbd7b516e76f4a"><enum>(C)</enum><text>demonstrates its
familiarity with the requirements of any other Federal, State, or local housing
program that will be used in conjunction with such grant amounts to ensure
compliance with all applicable requirements and regulations of such programs;
and</text>
</subparagraph><subparagraph id="ID04330eb4a8de44e1848d7f59c3f93f46"><enum>(D)</enum><text>makes such assurances to
the State or State designated entity as the Secretary shall, by regulation,
require to ensure that the recipient will comply with the requirements of this
subsection during the entire period that begins upon selection of the recipient
to receive such grant amounts and ending upon the conclusion of all activities
under paragraph (8) that are engaged in by the recipient and funded with such
grant amounts.</text>
</subparagraph></paragraph><paragraph id="ID0d6fe148de904f2084b7f28a69e64fad"><enum>(9)</enum><header>Limitations on
use</header>
<subparagraph id="IDb85a1b84c63445c5a58298da4ecc7853"><enum>(A)</enum><header>Required amount for
homeownership activities</header><text>Of the aggregate amount allocated to a
State or State designated entity under this subsection not more than 10 percent
shall be used for activities under subparagraph (B) of paragraph (7).</text>
</subparagraph><subparagraph id="ID55aafee740da4d90a4aa33a7c515ac02"><enum>(B)</enum><header>Deadline for commitment
or use</header><text>Grant amounts allocated to a State or State designated
entity under this subsection shall be used or committed for use within 2 years
of the date that such grant amounts are made available to the State or State
designated entity. The Secretary shall recapture any such amounts not so used
or committed for use and reallocate such amounts under this subsection in the
first year after such recapture.</text>
</subparagraph><subparagraph id="IDd85077bf14984bb2bcb7ed9ef5dd213a"><enum>(C)</enum><header>Use of
returns</header><text>The Secretary shall, by regulation, provide that any
return on a loan or other investment of any grant amount used by a State or
State designated entity to provide a loan under this subsection shall be
treated, for purposes of availability to and use by the State or State
designated entity, as a grant amount authorized under this subsection.</text>
</subparagraph><subparagraph id="ID0d5e35bede76497c8baac2a66531e885"><enum>(D)</enum><header>Prohibited
uses</header><text>The Secretary shall, by regulation—</text>
<clause id="IDe52db3d634714ddf838f6cc042b9fd9f"><enum>(i)</enum><text>set forth prohibited uses
of grant amounts allocated under this subsection, which shall include use
for—</text>
<subclause id="IDce13002d561643169efcc2a42679e56b"><enum>(I)</enum><text>political
activities;</text>
</subclause><subclause id="ID5f3c3ac0db684fb2afc420fa1bb045cf"><enum>(II)</enum><text>advocacy;</text>
</subclause><subclause id="ID785a8b3e55804fa093f7cb8e5e166901"><enum>(III)</enum><text>lobbying, whether
directly or through other parties;</text>
</subclause><subclause id="ID4ce24e305d9c42d5a5d46bd4489e7690"><enum>(IV)</enum><text>counseling
services;</text>
</subclause><subclause id="ID1e936c2958bc4ed5b72cb8d2ba52bcc7"><enum>(V)</enum><text>travel expenses;
and</text>
</subclause><subclause id="ID5d5d1681f9544c3a9ab6a09ae4e5a688"><enum>(VI)</enum><text>preparing or providing
advice on tax returns;</text>
</subclause></clause><clause id="ID947810684cb74a518af31b1a6717d834"><enum>(ii)</enum><text>provide that, except as
provided in clause (iii), grant amounts of a State or State designated entity
may not be used for administrative, outreach, or other costs of—</text>
<subclause id="ID1d2f6f99dd764505873db70317ba825e"><enum>(I)</enum><text>the State or State
designated entity; or</text>
</subclause><subclause id="IDcaf87c58c3f24308b0ae610ff1f0edb9"><enum>(II)</enum><text>any other recipient of
such grant amounts; and</text>
</subclause></clause><clause id="ID0858d45fc91d4c2a8365867bd62609bd"><enum>(iii)</enum><text>limit the amount of any
grant amounts for a year that may be used by the State or State designated
entity for administrative costs of carrying out the program required under this
subsection, including home ownership counseling, to a percentage of such grant
amounts of the State or State designated entity for such year, which may not
exceed 10 percent.</text>
</clause></subparagraph><subparagraph id="IDbe437c733b7f452491435731df5ff226"><enum>(E)</enum><header>Prohibition of
consideration of use for meeting housing goals or duty to
serve</header><text>In determining compliance with the housing goals under this
subpart and the duty to serve underserved markets under section 1335, the
Director may not consider any grant amounts used under this section for
eligible activities under paragraph (7). The Director shall give credit toward
the achievement of such housing goals and such duty to serve underserved
markets to purchases by the enterprises of mortgages for housing that receives
funding from such grant amounts, but only to the extent that such purchases by
the enterprises are funded other than with such grant amounts.</text>
</subparagraph></paragraph></subsection><subsection id="ID8c22844bf4834bf3b53e6fab92f1d12c"><enum>(d)</enum><header>Reduction for failure
To obtain return of misused funds</header><text>If in any year a State or State
designated entity fails to obtain reimbursement or return of the full amount
required under subsection (e)(1)(B) to be reimbursed or returned to the State
or State designated entity during such year—</text>
<paragraph id="ID5454b6829b3649aca07b6b588e36023c"><enum>(1)</enum><text>except as provided in
paragraph (2)—</text>
<subparagraph id="ID0fa0e8d99e42495c85f1b0aebe1f76fa"><enum>(A)</enum><text>the amount of the grant
for the State or State designated entity for the succeeding year, as determined
pursuant to this section, shall be reduced by the amount by which such amounts
required to be reimbursed or returned exceed the amount actually reimbursed or
returned; and</text>
</subparagraph><subparagraph id="ID2aa3ae1404c044e7a4e59c096689619c"><enum>(B)</enum><text>the amount of the grant
for the succeeding year for each other State or State designated entity whose
grant is not reduced pursuant to subparagraph (A) shall be increased by the
amount determined by applying the formula established pursuant to this section
to the total amount of all reductions for all State or State designated
entities for such year pursuant to subparagraph (A); or</text>
</subparagraph></paragraph><paragraph id="ID8cfdf53238a94acc9735ab81ee90e5a7"><enum>(2)</enum><text>in any case in which such
failure to obtain reimbursement or return occurs during a year immediately
preceding a year in which grants under this section will not be made, the State
or State designated entity shall pay to the Secretary for reallocation among
the other grantees an amount equal to the amount of the reduction for the
entity that would otherwise apply under paragraph (1)(A).</text>
</paragraph></subsection><subsection id="IDf1206caa76ef47ff9de21be782d1c06a"><enum>(e)</enum><header>Accountability of
recipients and grantees</header>
<paragraph id="ID3c7760804b5d48a69a2f2126ce20c333"><enum>(1)</enum><header>Recipients</header>
<subparagraph id="ID2dc7f9c9c82a4f90abe4eef10a7e5e08"><enum>(A)</enum><header>Tracking of
funds</header><text>The Secretary shall—</text>
<clause id="ID2745e64fa88b4131acd66d01f715c4c9"><enum>(i)</enum><text>require each State or
State designated entity to develop and maintain a system to ensure that each
recipient of assistance under this section uses such amounts in accordance with
this section, the regulations issued under this section, and any requirements
or conditions under which such amounts were provided; and</text>
</clause><clause id="ID35067d7665474b74be4fa6861d89da92"><enum>(ii)</enum><text>establish minimum
requirements for agreements, between the State or State designated entity and
recipients, regarding assistance under this section, which shall
include—</text>
<subclause id="IDe1fde2e1cec24686b091dfcc13590d0f"><enum>(I)</enum><text>appropriate periodic
financial and project reporting, record retention, and audit requirements for
the duration of the assistance to the recipient to ensure compliance with the
limitations and requirements of this section and the regulations under this
section; and</text>
</subclause><subclause id="ID3a3b0b3bc565463e898bfbbed2561f72"><enum>(II)</enum><text>any other requirements
that the Secretary determines are necessary to ensure appropriate
administration and compliance.</text>
</subclause></clause></subparagraph><subparagraph id="IDdb09db6442334ea5880f5d2c1aeca983"><enum>(B)</enum><header>Misuse of
funds</header>
<clause id="IDe3880ec747094b1883850e327660025c"><enum>(i)</enum><header>Reimbursement
requirement</header><text>If any recipient of assistance under this section is
determined, in accordance with clause (ii), to have used any such amounts in a
manner that is materially in violation of this section, the regulations issued
under this section, or any requirements or conditions under which such amounts
were provided, the State or State designated entity shall require that, within
12 months after the determination of such misuse, the recipient shall reimburse
the State or State designated entity for such misused amounts and return to the
State or State designated entity any such amounts that remain unused or
uncommitted for use. The remedies under this clause are in addition to any
other remedies that may be available under law.</text>
</clause><clause id="ID08ccfefe77ae4e1c842443d5ea2271d7"><enum>(ii)</enum><header>Determination</header><text>A
determination is made in accordance with this clause if the determination is
made by the Secretary or made by the State or State designated entity, provided
that—</text>
<subclause id="id457D79586D3748BCA03F4BEF379EA00D"><enum>(I)</enum><text>the State or State
designated entity provides notification of the determination to the Secretary
for review, in the discretion of the Secretary, of the determination;
and</text>
</subclause><subclause id="idA469F769BF92453785C1610318FF1F9F"><enum>(II)</enum><text>the Secretary does not
subsequently reverse the determination.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID7da3cdb923134e70abc3afe529597ecb"><enum>(2)</enum><header>Grantees</header>
<subparagraph id="ID1b41e2072a9c43a7b37460c29b834aca"><enum>(A)</enum><header>Report</header>
<clause id="ID08502dbf4fa147e9b0271099b1cc20dd"><enum>(i)</enum><header>In
general</header><text>The Secretary shall require each State or State
designated entity receiving grant amounts in any given year under this section
to submit a report, for such year, to the Secretary that—</text>
<subclause id="IDb801761811fc4111a64950ce936550a1"><enum>(I)</enum><text>describes the activities
funded under this section during such year with such grant amounts; and</text>
</subclause><subclause id="IDa10e1247a28a4d8a9ec8b0b7e2deee55"><enum>(II)</enum><text>the manner in which the
State or State designated entity complied during such year with any allocation
plan established pursuant to subsection (c).</text>
</subclause></clause><clause id="IDe5754fc0860247a69cccbad0630a2765"><enum>(ii)</enum><header>Public
availability</header><text>The Secretary shall make such reports pursuant to
this subparagraph publicly available.</text>
</clause></subparagraph><subparagraph id="IDa505e706f173400598276b01ae1bbd9a"><enum>(B)</enum><header>Misuse of
funds</header><text>If the Secretary determines, after reasonable notice and
opportunity for hearing, that a State or State designated entity has failed to
comply substantially with any provision of this section, and until the
Secretary is satisfied that there is no longer any such failure to comply, the
Secretary shall—</text>
<clause id="ID18cff547ee824e4cb863ff813b72916f"><enum>(i)</enum><text>reduce the amount of
assistance under this section to the State or State designated entity by an
amount equal to the amount of grant amounts which were not used in accordance
with this section;</text>
</clause><clause id="ID1340a6a66e86482b97cce56f44b8fc8f"><enum>(ii)</enum><text>require the State or
State designated entity to repay the Secretary any amount of the grant which
was not used in accordance with this section;</text>
</clause><clause id="ID608adb20b8b34c97aae2d7618f436d5f"><enum>(iii)</enum><text>limit the availability
of assistance under this section to the State or State designated entity to
activities or recipients not affected by such failure to comply; or</text>
</clause><clause id="ID947e36934a1a4ffc9e401eef9ca15175"><enum>(iv)</enum><text>terminate any assistance
under this section to the State or State designated entity.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID3a4a03b4d02846e7a2211ba0b3c689ab"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="id74CFC6EFBBAB4B4A97CBAC5D71632049"><enum>(1)</enum><header>Extremely low-income
renter household</header><text>The term <term>extremely low-income renter
household</term> means a household whose income is not in excess of 30 percent
of the area median income, with adjustments for smaller and larger families, as
determined by the Secretary.</text>
</paragraph><paragraph id="ID6564fb16c2b84b4f8659167f81ec1be1"><enum>(2)</enum><header>Recipient</header><text>The
term <term>recipient</term> means an individual or entity that receives
assistance from a State or State designated entity from amounts made available
to the State or State designated entity under this section.</text>
</paragraph><paragraph id="idFC086610E8174FE58BDA0CFAD598603E"><enum>(3)</enum><header>Shortage of standard
rental units both affordable and available to extremely low-income renter
households</header>
<subparagraph id="idAD5851D0AC924211A35BA1C718EB69A5"><enum>(A)</enum><header>In
general</header><text>The term <term>shortage of standard rental units both
affordable and available to extremely low-income renter households</term> means
for any State or other geographical area the gap between—</text>
<clause id="idE55FC9B4AAC74D2DA6BB5D2C40D46218"><enum>(i)</enum><text>the number of units with
complete plumbing and kitchen facilities with a rent that is 30 percent or less
of 30 percent of the adjusted area median income as determined by the Secretary
that are occupied by extremely low-income renter households or are vacant for
rent; and</text>
</clause><clause id="idC790112B60564EE4886D0D8CBAA59FAA"><enum>(ii)</enum><text>the number of extremely
low-income renter households.</text>
</clause></subparagraph><subparagraph id="id6348E59F835C4F38A219300B180ACEA9"><enum>(B)</enum><header>Rule of
construction</header><text>If the number of units described in subparagraph
(A)(i) exceeds the number of extremely low-income households as described in
subparagraph (A)(ii), there is no shortage.</text>
</subparagraph></paragraph><paragraph id="id21E55FBE940F48B3B6702F66D6588E21"><enum>(4)</enum><header>Shortage of standard
rental units both affordable and available to very low-income renter
households</header>
<subparagraph id="id4F5EC8D2419B4C84886199DBE4765DC9"><enum>(A)</enum><header>In
general</header><text>The term <term>shortage of standard rental units both
affordable and available to very low-income renter households</term> means for
any State or other geographical area the gap between—</text>
<clause id="id7B2E1CAEEF814561A4D7B382386EE07F"><enum>(i)</enum><text>the number of units with
complete plumbing and kitchen facilities with a rent that is 30 percent or less
of 50 percent of the adjusted area median income as determined by the Secretary
that are occupied by very low-income renter households or are vacant for rent;
and</text>
</clause><clause id="idC974DB1445D7450787A2018E678F8459"><enum>(ii)</enum><text>the number of very
low-income renter households.</text>
</clause></subparagraph><subparagraph id="idE6250809CC624CDB9BF68CD2C68A1C66"><enum>(B)</enum><header>Rule of
construction</header><text>If the number of units described in subparagraph
(A)(i) exceeds the number of very low-income households as described in
subparagraph (A)(ii), there is no shortage.</text>
</subparagraph></paragraph><paragraph id="IDe98392c8d1a349129fa4ea8b28034f19"><enum>(5)</enum><header>Very low-income
family</header><text>The term <term>very low-income family</term> has the
meaning given such term in section 1303, except that such term includes any
family that resides in a rural area that has an income that does not exceed the
poverty line (as such term is defined in section 673(2) of the Omnibus Budget
Reconciliation Act of 1981 (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>), including any revision required
by such section) applicable to a family of the size involved.</text>
</paragraph><paragraph id="id65AC60E08217442EB8EC6BD74EE50A95"><enum>(6)</enum><header>Very low-income renter
households</header><text>The term <term>very low-income renter
households</term> means a household whose income is in excess of 30 percent but
not greater than 50 percent of the area median income, with adjustments for
smaller and larger families, as determined by the Secretary.</text>
</paragraph></subsection><subsection id="IDaa4bb9340bca43bd8242f810409eb0a8"><enum>(g)</enum><header>Regulations</header>
<paragraph id="ID4e43aa95e77643fba695bec367a83ffc"><enum>(1)</enum><header>In
general</header><text>The Secretary shall issue regulations to carry out this
section.</text>
</paragraph><paragraph id="ID06281d0e233e41f6b21ef7731b18e754"><enum>(2)</enum><header>Required
contents</header><text>The regulations issued under this subsection shall
include—</text>
<subparagraph id="IDce3fd8237a1a43e595d3cfdc1abfb9dd"><enum>(A)</enum><text>a requirement that the
Secretary ensure that the use of grant amounts under this section by States or
State designated entities is audited not less than annually to ensure
compliance with this section;</text>
</subparagraph><subparagraph id="IDda330fbedb3b4b43af1073e890401fa6"><enum>(B)</enum><text>authority for the
Secretary to audit, provide for an audit, or otherwise verify a State or State
designated entity's activities to ensure compliance with this section;</text>
</subparagraph><subparagraph id="ID188a83c3172942f2a4a568ca742f2e6f"><enum>(C)</enum><text>requirements for a
process for application to, and selection by, each State or State designated
entity for activities meeting the State or State designated entity's priority
housing needs to be funded with grant amounts under this section, which shall
provide for priority in funding to be based upon—</text>
<clause id="ID67801a6cb5f14c93be05d0ea138f08ff"><enum>(i)</enum><text>geographic
diversity;</text>
</clause><clause id="ID9e71ec47ff90443b8086d7cf7132dda6"><enum>(ii)</enum><text>ability to obligate
amounts and undertake activities so funded in a timely manner;</text>
</clause><clause id="IDf7c4fe87e7784180b25c834cd86d1d82"><enum>(iii)</enum><text>in the case of rental
housing projects under subsection (c)(7)(A), the extent to which rents for
units in the project funded are affordable, especially for extremely low-income
families;</text>
</clause><clause id="IDaedf80d490a94322b7d26308599c2464"><enum>(iv)</enum><text>in the case of rental
housing projects under subsection (c)(7)(A), the extent of the duration for
which such rents will remain affordable;</text>
</clause><clause id="ID99709b7debde45faa0355d751d1028df"><enum>(v)</enum><text>the extent to which the
application makes use of other funding sources; and</text>
</clause><clause id="ID72f345a1d0874e2cad095fd139014a0a"><enum>(vi)</enum><text>the merits of an
applicant's proposed eligible activity;</text>
</clause></subparagraph><subparagraph id="ID60bb4c101ec64a0eae548732e6802ad9"><enum>(D)</enum><text>requirements to ensure
that grant amounts provided to a State or State designated entity under this
section that are used for rental housing under subsection (c)(7)(A) are used
only for the benefit of extremely low- and very low-income families; and</text>
</subparagraph><subparagraph id="ID58166175b2434dc3bb174ac3696e2a0a"><enum>(E)</enum><text>requirements and
standards for establishment, by a State or State designated entity, for use of
grant amounts in 2009 and subsequent years of performance goals, benchmarks,
and timetables for the production, preservation, and rehabilitation of
affordable rental and homeownership housing with such grant amounts.</text>
</subparagraph></paragraph></subsection><subsection id="IDc805ba764f6c4cf9ac0c0f00319ea6b5"><enum>(h)</enum><header>Affordable housing
trust fund</header><text>If, after the date of enactment of the Federal Housing
Finance Regulatory Reform Act of 2008, in any year, there is enacted any
provision of Federal law establishing an affordable housing trust fund other
than under this title for use only for grants to provide affordable rental
housing and affordable homeownership opportunities, and the subsequent year is
a year referred to in subsection (c), the Secretary shall in such subsequent
year and any remaining years referred to in subsection (c) transfer to such
affordable housing trust fund the aggregate amount allocated pursuant to
subsection (c) in such year. Notwithstanding any other provision of law,
assistance provided using amounts transferred to such affordable housing trust
fund pursuant to this subsection may not be used for any of the activities
specified in clauses (i) through (vi) of subsection (c)(9)(D).</text>
</subsection><subsection id="id72348BF43A654EBAA2EBE56EEDDCD3F1"><enum>(i)</enum><header>Funding accountability
and transparency</header><text>Any grant under this section to a grantee by a
State or State designated entity, any assistance provided to a recipient by a
State or State designated entity, and any grant, award, or other assistance
from an affordable housing trust fund referred to in subsection (h) shall be
considered a Federal award for purposes of the Federal Funding Accountability
and Transparency Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/31/6101">31 U.S.C. 6101</external-xref> note). Upon the request of the
Director of the Office of Management and Budget, the Secretary shall obtain and
provide such information regarding any such grants, assistance, and awards as
the Director of the Office of Management and Budget considers necessary to
comply with the requirements of such Act, as applicable, pursuant to the
preceding sentence.</text>
</subsection></section><section id="id174A135BE1A54AA3A2DB3B003C3A7124"><enum>1339.</enum><header>Capital Magnet
Fund</header>
<subsection id="HBA6ABD4786BA40EEB1A26303E8DF0609"><enum>(a)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a trust fund to be known as
the Capital Magnet Fund, which shall be a special account within the Community
Development Financial Institutions Fund.</text>
</subsection><subsection id="HA52289F563784937B0D0BAB824061C00"><enum>(b)</enum><header>Deposits to Trust
Fund</header><text display-inline="yes-display-inline">The Capital Magnet Fund
shall consist of—</text>
<paragraph id="H9B6DB767B0B3461980C7614F2919773B"><enum>(1)</enum><text display-inline="yes-display-inline">any amounts transferred to the Fund
pursuant to section 1337; and</text>
</paragraph><paragraph id="H113E1F5BD1254988A6741CE05857E124"><enum>(2)</enum><text display-inline="yes-display-inline">any amounts as are or may be appropriated,
transferred, or credited to such Fund under any other provisions of law.</text>
</paragraph></subsection><subsection id="H5DF48EB856AD4F1193F3CD00B69D45CB"><enum>(c)</enum><header>Expenditures From Trust
Fund</header><text display-inline="yes-display-inline">Amounts in the Capital
Magnet Fund shall be available to the Secretary of the Treasury to carry out a
competitive grant program to attract private capital for and increase
investment in—</text>
<paragraph id="id15CA0986897F405283B417EF318A59A5"><enum>(1)</enum><text>the development,
preservation, rehabilitation, or purchase of affordable housing for primarily
extremely low-, very low-, and low-income families; and</text>
</paragraph><paragraph id="idC02F173DED2B49A8B597B8964E0C904B"><enum>(2)</enum><text>economic development
activities or community service facilities, such as day care centers, workforce
development centers, and health care clinics, which in conjunction with
affordable housing activities implement a concerted strategy to stabilize or
revitalize a low-income area or underserved rural area.</text>
</paragraph></subsection><subsection commented="no" id="H2A6E242426DF418CB1BE66FF8920A8DA"><enum>(d)</enum><header>Federal
assistance</header><text display-inline="yes-display-inline">All assistance
provided using amounts in the Capital Magnet Fund shall be considered to be
Federal financial assistance.</text>
</subsection><subsection id="ID6ee1c1a94eda40b7a34522c9655dbf7f"><enum>(e)</enum><header>Eligible
grantees</header><text>A grant under this section may be made, pursuant to such
requirements as the Secretary of the Treasury shall establish for experience
and success in attracting private financing and carrying out the types of
activities proposed under the application of the grantee, only to—</text>
<paragraph id="ID75de74ab865b4f8b9c15b3a2daf071c4"><enum>(1)</enum><text>a Treasury certified
community development financial institution; or</text>
</paragraph><paragraph id="IDfdcc2d36e4a5433d808360585a101533"><enum>(2)</enum><text>a nonprofit organization
having as 1 of its principal purposes the development or management of
affordable housing.</text>
</paragraph></subsection><subsection id="IDfbdc4c637feb4b64be0a13bbabf07c30"><enum>(f)</enum><header>Eligible
uses</header><text>Grant amounts awarded from the Capital Magnet Fund pursuant
to this section may be used for the purposes described in paragraphs (1) and
(2) of subsection (c), including for the following uses:</text>
<paragraph id="ID5d136ae45335483ca555b6be345fdbf9"><enum>(1)</enum><text>To provide loan loss
reserves.</text>
</paragraph><paragraph id="ID2b1d86b202524f5288ffe133cc0e113d"><enum>(2)</enum><text>To capitalize a revolving
loan fund.</text>
</paragraph><paragraph id="IDf50b152e34c74874a728887e1abca849"><enum>(3)</enum><text>To capitalize an
affordable housing fund.</text>
</paragraph><paragraph id="ID7fe76609039a4b07916eecc49be1daee"><enum>(4)</enum><text>To capitalize a fund to
support activities described in subsection (c)(2).</text>
</paragraph><paragraph id="ID4329a2a5da934c29a771bc01cfd169eb"><enum>(5)</enum><text>For risk-sharing
loans.</text>
</paragraph></subsection><subsection id="ID4da51d2623a447d9993aee0a933b75b8"><enum>(g)</enum><header>Applications</header>
<paragraph id="IDb38b7c665ba0419d9553844fd0611e1e"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall provide, in a
competitive application process established by regulation, for eligible
grantees under subsection (e) to submit applications for Capital Magnet Fund
grants to the Secretary at such time and in such manner as the Secretary shall
determine.</text>
</paragraph><paragraph id="IDa833d0ba240947bf807c716febfe7b3c"><enum>(2)</enum><header>Content of
application</header><text>The application required under paragraph (1) shall
include a detailed description of—</text>
<subparagraph id="ID3ba9a072813e4530be1d67c82d411d22"><enum>(A)</enum><text>the types of affordable
housing, economic, and community revitalization projects that support or
sustain residents of an affordable housing project funded by a grant under this
section for which such grant amounts would be used, including the proposed use
of eligible grants as authorized under this section;</text>
</subparagraph><subparagraph id="ID3579593df06947f993d416da68d2b6da"><enum>(B)</enum><text>the types, sources, and
amounts of other funding for such projects; and</text>
</subparagraph><subparagraph id="ID5db43c435f0a417b83a2b06b2e5e2f1b"><enum>(C)</enum><text>the expected time frame
of any grant used for such project.</text>
</subparagraph></paragraph></subsection><subsection id="IDb6f0b7ec1f434aa3a71da7c2647cd671"><enum>(h)</enum><header>Grant
limitation</header>
<paragraph id="ID279432786ba44b8091142e4cf4ce57a4"><enum>(1)</enum><header>In
general</header><text>Any 1 eligible grantee and its subsidiaries and
affiliates may not be awarded more than 15 percent of the aggregate funds
available for grants during any year from the Capital Magnet Fund.</text>
</paragraph><paragraph id="ID2d89fdc7542c46939a0e900442bcce0e"><enum>(2)</enum><header>Geographic
diversity</header>
<subparagraph id="IDa51083429b274d27adfdd5cb39b913d9"><enum>(A)</enum><header>Goal</header><text>The
Secretary of the Treasury shall seek to fund activities in geographically
diverse areas of economic distress, including metropolitan and underserved
rural areas in every State.</text>
</subparagraph><subparagraph id="ID6e9b9e37d3b644609dc3d503e054623d"><enum>(B)</enum><header>Diversity
defined</header><text>For purposes of this paragraph, geographic diversity
includes those areas that meet objective criteria of economic distress
developed by the Secretary of the Treasury, which may include—</text>
<clause id="ID832502f89c4f4e97a2e1bdfd420c40b2"><enum>(i)</enum><text>the percentage of
low-income families or the extent of poverty;</text>
</clause><clause id="ID7b89aa3b473a42a09ac566814fcea564"><enum>(ii)</enum><text>the rate of unemployment
or underemployment;</text>
</clause><clause id="ID2b8904639e46409ea6eb78cd18d63547"><enum>(iii)</enum><text>extent of blight and
disinvestment;</text>
</clause><clause id="ID8d30c89205e24f31b477e099cf7851e1"><enum>(iv)</enum><text>projects that target
extremely low-, very low-, and low-income families in or outside a designated
economic distress area; or</text>
</clause><clause id="IDf4bbb763dc8c42bb92473614a04eec51"><enum>(v)</enum><text>any other criteria
designated by the Secretary of the Treasury.</text>
</clause></subparagraph></paragraph><paragraph id="idEB0C0D266C9E438EAC02E28AFEDDE6D1"><enum>(3)</enum><header>Leverage of
funds</header><text>Each grant from the Capital Magnet Fund awarded under this
section shall be reasonably expected to result in eligible housing, or economic
and community development projects that support or sustain an affordable
housing project funded by a grant under this section whose aggregate costs
total at least 10 times the grant amount.</text>
</paragraph><paragraph id="ID121aab3d61e14097980c6f5d970d3c51"><enum>(4)</enum><header>Commitment for use
deadline</header><text>Amounts made available for grants under this section
shall be committed for use within 2 years of the date of such allocation. The
Secretary of the Treasury shall recapture into the Capital Magnet Fund any
amounts not so used or committed for use and allocate such amounts in the first
year after such recapture.</text>
</paragraph><paragraph id="IDed6c70380f5b47b1b7ad444cd7341b4f"><enum>(5)</enum><header>Lobbying
restrictions</header><text>No assistance or amounts made available under this
section may be expended by an eligible grantee to pay any person to influence
or attempt to influence any agency, elected official, officer or employee of a
State or local government in connection with the making, award, extension,
continuation, renewal, amendment, or modification of any State or local
government contract, grant, loan, or cooperative agreement as such terms are
defined in <external-xref legal-doc="usc" parsable-cite="usc/31/1352">section 1352</external-xref> of title 31, United States Code.</text>
</paragraph><paragraph id="id94198D705C604F0DBC5A2729133276E9"><enum>(6)</enum><header>Prohibition of
consideration of use for meeting housing goals or duty to
serve</header><text>In determining the compliance of the enterprises with the
housing goals under this section and the duty to serve underserved markets
under section 1335, the Director of the Federal Housing Finance Agency may not
consider any Capital Magnet Fund amounts used under this section for eligible
activities under subsection (f). The Director of the Federal Housing Finance
Agency shall give credit toward the achievement of such housing goals and such
duty to serve underserved markets to purchases by the enterprises of mortgages
for housing that receives funding from Capital Magnet Fund grant amounts, but
only to the extent that such purchases by the enterprises are funded other than
with such grant amounts.</text>
</paragraph><paragraph id="id6970CD0504DE41348ECE90A31C10073A"><enum>(7)</enum><header>Accountability of
recipients and grantees</header>
<subparagraph id="id5DF63D3C0CB041CD800D5D1DAF3C13F2"><enum>(A)</enum><header>Tracking of
funds</header><text>The Secretary of the Treasury shall—</text>
<clause id="idF168438CF643492380A8D6D910F5C371"><enum>(i)</enum><text>require each grantee to
develop and maintain a system to ensure that each recipient of assistance from
the Capital Magnet Fund uses such amounts in accordance with this section, the
regulations issued under this section, and any requirements or conditions under
which such amounts were provided; and</text>
</clause><clause id="id06BA64832A6E4C9491F7DDBBDF460289"><enum>(ii)</enum><text>establish minimum
requirements for agreements, between the grantee and the Capital Magnet Fund,
regarding assistance from the Capital Magnet Fund, which shall include—</text>
<subclause id="id64384239268C4709A388E7BCA98297EA"><enum>(I)</enum><text>appropriate periodic
financial and project reporting, record retention, and audit requirements for
the duration of the grant to the recipient to ensure compliance with the
limitations and requirements of this section and the regulations under this
section; and</text>
</subclause><subclause id="id879AC692490F4AB0940B6594F38E2C14"><enum>(II)</enum><text>any other requirements
that the Secretary determines are necessary to ensure appropriate grant
administration and compliance.</text>
</subclause></clause></subparagraph><subparagraph id="id819A208C33724576AC03A0FDB6F1EA53"><enum>(B)</enum><header>Misuse of
funds</header><text>If the Secretary of the Treasury determines, after
reasonable notice and opportunity for hearing, that a grantee has failed to
comply substantially with any provision of this section and until the Secretary
is satisfied that there is no longer any such failure to comply, the Secretary
shall—</text>
<clause id="idDD8284091BDA4E1592773137574CB9CD"><enum>(i)</enum><text>reduce the amount of
assistance under this section to the grantee by an amount equal to the amount
of Capital Magnet Fund grant amounts which were not used in accordance with
this section;</text>
</clause><clause id="idCEF9340EBBE647D69EF5313835DF3681"><enum>(ii)</enum><text>require the grantee to
repay the Secretary any amount of the Capital Magnet Fund grant amounts which
were not used in accordance with this section;</text>
</clause><clause id="idAB0E0C21EF564681AC68146A76AE5A1E"><enum>(iii)</enum><text>limit the availability
of assistance under this section to the grantee to activities or recipients not
affected by such failure to comply; or</text>
</clause><clause id="id981C10CCEA00413B9A69AD5A27D94A2C"><enum>(iv)</enum><text>terminate any assistance
under this section to the grantee.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDaab4ce3e78dd4b078b8e5959db21801f"><enum>(i)</enum><header>Periodic
reports</header>
<paragraph id="ID48eb62d01100469d8d536e299fd8582f"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall submit a report, on a
periodic basis, to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
describing the activities to be funded under this section.</text>
</paragraph><paragraph id="ID16d88a1db36a41d4882e04b4a022831c"><enum>(2)</enum><header>Reports available to
public</header><text>The Secretary of the Treasury shall make the reports
required under paragraph (1) publicly available.</text>
</paragraph></subsection><subsection id="IDEE2D0044BD804508A2AB1E117E1D47EA"><enum>(j)</enum><header>Regulations</header>
<paragraph id="IDBD6CEA34194F423B8BD2F607386CD72D"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall issue regulations to
carry out this section.</text>
</paragraph><paragraph id="IDC29EFB36F67E4AA49CD47E1BA2662A23"><enum>(2)</enum><header>Required
contents</header><text>The regulations issued under this subsection shall
include—</text>
<subparagraph id="ID543D113BD92A4EB19041810FDD596CAD"><enum>(A)</enum><text>authority for the
Secretary to audit, provide for an audit, or otherwise verify an enterprise’s
activities, to ensure compliance with this section;</text>
</subparagraph><subparagraph id="ID3807E72EE6C8470BADA10FA632396546"><enum>(B)</enum><text>a requirement that the
Secretary ensure that the allocation of each enterprise is audited not less
than annually to ensure compliance with this section; and</text>
</subparagraph><subparagraph id="ID8976D6AEBDA845E2AF0E4DB1E29AB7A5"><enum>(C)</enum><text>requirements for a
process for application to, and selection by, the Secretary for activities to
be funded with amounts from the Capital Magnet Fund, which shall provide
that—</text>
<clause id="IDEB7C905B6F81470CA44EFB0476A0291A"><enum>(i)</enum><text>funds be fairly
distributed to urban, suburban, and rural areas; and</text>
</clause><clause id="ID954DD03829724BA988B0DBC76F822FD1"><enum>(ii)</enum><text>selection shall be based
upon specific criteria, including a prioritization of funding based
upon—</text>
<subclause id="ID8816DDA8E20F45FBADFB54C446A65CBD"><enum>(I)</enum><text>the ability to use such
funds to generate additional investments;</text>
</subclause><subclause id="ID2DF89834C8FB499AB2C83D7E75359C46"><enum>(II)</enum><text>affordable housing need
(taking into account the distinct needs of different regions of the country);
and</text>
</subclause><subclause id="ID19BE3E8D84EE4285A392C2324A334826"><enum>(III)</enum><text>ability to obligate
amounts and undertake activities so funded in a timely
manner.</text>
</subclause></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="idE260C00F87774BCBA63EF68A0BE92654"><enum>1132.</enum><header>Financial education
and counseling</header>
<subsection commented="no" id="idDF2E8439F0C94B09A20EDAFFA46C46BE"><enum>(a)</enum><header>Goals</header><text>Financial
education and counseling under this section shall have the goal of—</text>
<paragraph commented="no" id="ID98a624789dd44767aff4734de82aba92"><enum>(1)</enum><text>increasing the financial
knowledge and decision making capabilities of prospective homebuyers;</text>
</paragraph><paragraph commented="no" id="ID15ce0cc97d724fde8f3f19787b558426"><enum>(2)</enum><text>assisting prospective
homebuyers to develop monthly budgets, build personal savings, finance or plan
for major purchases, reduce their debt, improve their financial stability, and
set and reach their financial goals;</text>
</paragraph><paragraph commented="no" id="ID83256fb735d24ce3a440599ed06f1a73"><enum>(3)</enum><text>helping prospective
homebuyers to improve their credit scores by understanding the relationship
between their credit histories and their credit scores; and</text>
</paragraph><paragraph commented="no" id="idF0BA50C21E7E4FD8BFBC4AB0E13E6630"><enum>(4)</enum><text>educating prospective
homebuyers about the options available to build savings for short- and
long-term goals.</text>
</paragraph></subsection><subsection commented="no" id="idBF4E0E49BD9E403E96C899FF44F5539D"><enum>(b)</enum><header>Grants</header>
<paragraph commented="no" id="id3FA0886043CA42BA8996583D4E834F04"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury (in this section referred
to as the <quote>Secretary</quote>) shall make grants to eligible organizations
to enable such organizations to provide a range of financial education and
counseling services to prospective homebuyers.</text>
</paragraph><paragraph commented="no" id="id8DD9F00BAE204CB580E8C6D612A82F07"><enum>(2)</enum><header>Selection</header><text>The
Secretary shall select eligible organizations to receive assistance under this
section based on their experience and ability to provide financial education
and counseling services that result in documented positive behavioral
changes.</text>
</paragraph></subsection><subsection commented="no" id="id485716AB8FA04A4A9F9A65C3EC5F4528"><enum>(c)</enum><header>Eligible
organizations</header>
<paragraph commented="no" id="idD40A0CEDA6954AF080F713ED46A7BF6E"><enum>(1)</enum><header>In
general</header><text>For purposes of this section, the term <quote>eligible
organization</quote> means an organization that is—</text>
<subparagraph commented="no" id="id0DED2EB875BF4CB38A0FE5F7FF5CE897"><enum>(A)</enum><text>certified in accordance
with section 106(e)(1) of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x(e)); or</text>
</subparagraph><subparagraph commented="no" id="idB28860BBCAA14A5C833B1F7D9BF76776"><enum>(B)</enum><text>certified by the Office
of Financial Education of the Department of the Treasury for purposes of this
section, in accordance with paragraph (2).</text>
</subparagraph></paragraph><paragraph commented="no" id="id5B5F8A7E91EA4385A899E9170FF2E4D8"><enum>(2)</enum><header>OFE
certification</header><text>To be certified by the Office of Financial
Education for purposes of this section, an eligible organization shall
be—</text>
<subparagraph commented="no" id="IDe35c2151cca84a3aa8e8e7a410e51014"><enum>(A)</enum><text>a housing counseling
agency certified by the Secretary of Housing and Urban Development under
section 106(e) of the Housing and Urban Development Act of 1968;</text>
</subparagraph><subparagraph commented="no" id="IDb73b98680f1a422b9e0f50f726d54c51"><enum>(B)</enum><text>a State, local, or tribal
government agency;</text>
</subparagraph><subparagraph commented="no" id="IDdb7373088d7745a0947a20635e44246b"><enum>(C)</enum><text>a community development
financial institution (as defined in section 103(5) of the Community
Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4702">12 U.S.C. 4702(5)</external-xref>)
or a credit union; or</text>
</subparagraph><subparagraph commented="no" id="id469F5A50C99E4E5392EDDB985C98A53B"><enum>(D)</enum><text>any collaborative effort
of entities described in any of subparagraphs (A) through (C).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id97D9700117734421B88C2C117487FD40"><enum>(d)</enum><header>Authority for pilot
projects</header>
<paragraph commented="no" id="id1411B06679CC4FFC96D9E77EEB72DA42"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall authorize not more
than 5 pilot project grants to eligible organizations under subsection (c) in
order to—</text>
<subparagraph commented="no" id="id5C31922C002E49609D7018F483CFF08B"><enum>(A)</enum><text>carry out the services
under this section; and</text>
</subparagraph><subparagraph commented="no" id="idA8C8AB02922C4A2B8977D0D3A3CA0298"><enum>(B)</enum><text>provide such other
services that will improve the financial stability and economic condition of
low- and moderate-income and low-wealth individuals.</text>
</subparagraph></paragraph><paragraph commented="no" id="id628A2A94C9004B0095ABA4A40BFEE92D"><enum>(2)</enum><header>Goal</header><text>The
goal of the pilot project grants under this subsection is to—</text>
<subparagraph commented="no" id="ID1c48977965e24ca8ac45e97464564bd4"><enum>(A)</enum><text>identify successful
methods resulting in positive behavioral change for financial empowerment;
and</text>
</subparagraph><subparagraph commented="no" id="ID88d0da8a7c2d408abda8a8408fc5804c"><enum>(B)</enum><text>establish program models
for organizations to carry out effective counseling services.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idD59965E1457448448BC5144780C34831"><enum>(e)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Secretary such sums as are necessary to carry out this section and for the
provision of additional financial educational services.</text>
</subsection><subsection commented="no" id="id03E3CA9097414FBEA06A422C6617D231"><enum>(f)</enum><header>Study and report on
effectiveness and impact</header>
<paragraph commented="no" id="id2646D1D3D61A4617949CE2C0E5F15362"><enum>(1)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study on the effectiveness and impact of the grant program
established under this section. Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall submit a report on the
results of such study 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 commented="no" id="id0C54083F44B54184BC1C730BCD4E2BBA"><enum>(2)</enum><header>Content of
study</header><text>The study required under paragraph (1) shall include an
evaluation of the following:</text>
<subparagraph commented="no" id="ID3974e1bbb6204b6081d0dbabe8897292"><enum>(A)</enum><text>The effectiveness of the
grant program established under this section in improving the financial
situation of homeowners and prospective homebuyers served by the grant
program.</text>
</subparagraph><subparagraph commented="no" id="IDf1e493cb9b2c46a0ba76b739b29eff92"><enum>(B)</enum><text>The extent to which
financial education and counseling services have resulted in positive
behavioral changes.</text>
</subparagraph><subparagraph commented="no" id="IDc95d8cba3dab41a6914729085380fcea"><enum>(C)</enum><text>The effectiveness and
quality of the eligible organizations providing financial education and
counseling services under the grant program.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idDF91D04E73264B3B864A9CB08113E05E"><enum>(g)</enum><header>Regulations</header><text>The
Secretary is authorized to promulgate such regulations as may be necessary to
implement and administer the grant program authorized by this section.</text>
</subsection></section><section commented="no" id="id29A4EB021E5D46BEA25783EEFE9A9ABC"><enum>1133.</enum><header>Transfer and rights
of certain HUD employees</header>
<subsection commented="no" id="id8C54DEB352CC4026A64AE141DD959F9D"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Department of Housing and Urban Development whose position
responsibilities primarily involve the establishment and enforcement of the
housing goals under subpart B of part 2 of subtitle A of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561">12 U.S.C. 4561 et seq.</external-xref>)
shall be transferred to the Federal Housing Finance Agency for employment, not
later than the effective date of the Federal Housing Finance Regulatory Reform
Act of 2008, 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 commented="no" id="idB45520EF1E1A46119BCC1B8492557173"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph commented="no" id="idE915BF3EE42F4AB3988032BE4DAA76C8"><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 commented="no" id="id8E08ECD6999F4AFF9FA2A0EC52FFA454"><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 commented="no" id="id5B0FD27ADC25494DB7914A86FE9AE947"><enum>(c)</enum><header>Appointment authority
for excepted and senior executive service employees</header>
<paragraph commented="no" id="idF82BF2A2E4BB40E3B0E9BEA074A492C8"><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 commented="no" id="id1D1FCB7964B64D1FBE358EC0D59DDCF7"><enum>(2)</enum><header>Decline of
transfer</header><text>The Director may decline a transfer of authority under
paragraph (1) to the extent that such authority relates to—</text>
<subparagraph commented="no" id="idC4C9BA185C5949009BD911C685E1F595"><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 commented="no" id="id9FCA5489A7064E4BAC61B74586B52875"><enum>(B)</enum><text>a noncareer position in
the Senior Executive Service (within the meaning of section 3132(a)(7) of title
5, United States Code).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id6E1710E9BB164E5AAFD6B1FE70B337DF"><enum>(d)</enum><header>Reorganization</header><text>If
the Director determines, after the end of the 1-year period beginning on the
effective date of the Federal Housing Finance Regulatory Reform Act of 2008,
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 commented="no" id="id17F90A5C8FC14D0FA479F9574E2859AD"><enum>(e)</enum><header>Employee benefit
programs</header>
<paragraph commented="no" id="id1DBE443458004807822B4843C2334346"><enum>(1)</enum><header>In
general</header><text>Any employee described under subsection (a) accepting
employment with the Agency 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 Department of Housing and
Urban Development, as applicable, including insurance, to which such employee
belongs on such effective date, if—</text>
<subparagraph commented="no" id="id1DB86DD1927E4903B2BA13809E7CE284"><enum>(A)</enum><text>the employee does not
elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph commented="no" id="idF9EB028A29B94D89B7FFFC312E50F93F"><enum>(B)</enum><text>the benefit or program is
continued by the Director of the Federal Housing Finance Agency.</text>
</subparagraph></paragraph><paragraph commented="no" id="id3711F6DBD15B4775A0BEE7D355B56CD2"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph commented="no" id="id38E08B0837FB48A9BD2D0902321B872A"><enum>(A)</enum><header>In
general</header><text>The difference in the costs between the benefits which
would have been provided by the Department of Housing and Urban Development and
those provided by this section shall be paid by the Director.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2055DE52F54E4229A1F9CD910024E604"><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 Director, 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></subtitle><subtitle id="IDC94198E8659A48D49EA0CD999077EE9F"><enum>C</enum><header>Prompt corrective
action</header>
<section id="ID88DFD0F5BB284C64BD312CDFAE9B3A88"><enum>1141.</enum><header>Critical capital
levels</header>
<subsection id="ID141947387A1640AABFE9791BFB5EFFB5"><enum>(a)</enum><header>In
general</header><text>Section 1363 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4613">12 U.S.C. 4613</external-xref>) is amended—</text>
<paragraph id="IDB9D795F2C2B4429391D06061787CB399"><enum>(1)</enum><text>by striking
<quote>For</quote> and inserting <quote>(a) <header-in-text level="subsection">Enterprises.—For</header-in-text></quote>; and</text>
</paragraph><paragraph id="ID240EA2ED896E48A1A75B3BDECBDF09A9"><enum>(2)</enum><text>by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID5EFDE91D9B2046C0827D70FBF75B5770" reported-display-style="italic" style="OLC">
<subsection id="ID0A759C8B0E3B451FB353F2C4011E54E1"><enum>(b)</enum><header>Federal home loan
banks</header>
<paragraph id="IDE2F0334F724B4CB6BB0922FDA6940659"><enum>(1)</enum><header>In
general</header><text>For purposes of this subtitle, the critical capital level
for each Federal Home Loan Bank shall be such amount of capital as the Director
shall, by regulation, require.</text>
</paragraph><paragraph id="IDE4C46906595B4973AFB8A6A71198630D"><enum>(2)</enum><header>Consideration of other
critical capital levels</header><text>In establishing the critical capital
level under paragraph (1) for the Federal Home Loan Banks, the Director shall
take due consideration of the critical capital level established under
subsection (a) for the enterprises, with such modifications as the Director
determines to be appropriate to reflect the difference in operations between
the banks and the
enterprises.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID5C7DD6D3AE4B4E3DB7ADBAEFB1250C78"><enum>(b)</enum><header>Regulations</header><text>Not
later than the expiration of the 180-day period beginning on the date of
enactment of this Act, the Director of the Federal Housing Finance Agency shall
issue regulations pursuant to section 1363(b) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as added by this
section) establishing the critical capital level under such section.</text>
</subsection></section><section id="ID72846D4D3CFF440AB729A90DF77475A3"><enum>1142.</enum><header>Capital
classifications</header>
<subsection id="IDBA0C44766EF740D898F0C9783952734F"><enum>(a)</enum><header>In
general</header><text>Section 1364 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614</external-xref>) is amended—</text>
<paragraph id="IDB127E7EC860E4A29A4B4C64E56EADA2B"><enum>(1)</enum><text>in the heading for
subsection (a) by striking <quote>In General</quote> and inserting
<quote>Enterprises</quote>;</text>
</paragraph><paragraph id="ID2467B15D390A4981BEF1D710544AD458"><enum>(2)</enum><text>in subsection (c)—</text>
<subparagraph id="IDE285A7586B6C47719293D4F1737DE233"><enum>(A)</enum><text>by striking
<quote>subsection (b)</quote> and inserting <quote>subsection
(c)</quote>;</text>
</subparagraph><subparagraph id="IDE94D6A4F0F2B4E29BEC469B07AF96789"><enum>(B)</enum><text>by striking
<quote>enterprises</quote> and inserting <quote>regulated entities</quote>;
and</text>
</subparagraph><subparagraph id="IDFF3888B485064932AF3829BFBA4E8368"><enum>(C)</enum><text>by striking the last
sentence;</text>
</subparagraph></paragraph><paragraph id="IDFB271D51AFEF4087AD5BF010A371F3C6"><enum>(3)</enum><text>by redesignating
subsections (c) (as so amended by paragraph (2) of this subsection) and (d) as
subsections (d) and (f), respectively;</text>
</paragraph><paragraph id="IDC6580F1BC595477CA1E263E1E8DF5E70"><enum>(4)</enum><text>by striking subsection
(b) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDA17C8A45401747528A9441F6AB4C0F0D" reported-display-style="italic" style="OLC">
<subsection id="IDFA72EA34281445228D70C4EA4B1D296D"><enum>(b)</enum><header>Federal home loan
banks</header>
<paragraph id="IDC6FC83C9C2F440BABE93BC47432F7F15"><enum>(1)</enum><header>Establishment and
criteria</header><text>For purposes of this subtitle, the Director shall, by
regulation—</text>
<subparagraph id="IDCE17A2E9CD784F75AB318E9C289D46AF"><enum>(A)</enum><text>establish the capital
classifications specified under paragraph (2) for the Federal Home Loan
Banks;</text>
</subparagraph><subparagraph id="IDB47AAAC39D224445963D1A47C0A1A519"><enum>(B)</enum><text>establish criteria for
each such capital classification based on the amount and types of capital held
by a bank and the risk-based, minimum, and critical capital levels for the
banks and taking due consideration of the capital classifications established
under subsection (a) for the enterprises, with such modifications as the
Director determines to be appropriate to reflect the difference in operations
between the banks and the enterprises; and</text>
</subparagraph><subparagraph id="ID75050CFE27D04BB8849B6236E76823BC"><enum>(C)</enum><text>shall classify the
Federal Home Loan Banks according to such capital classifications.</text>
</subparagraph></paragraph><paragraph id="IDA598AFBB13764061A9FBC7BC13DC2DEE"><enum>(2)</enum><header>Classifications</header><text>The
capital classifications specified under this paragraph are—</text>
<subparagraph id="ID08C82B5C4E0A40E4955C4C3596741F0F"><enum>(A)</enum><text>adequately
capitalized;</text>
</subparagraph><subparagraph id="ID8B103E16909A4DBAB62779960DC35C70"><enum>(B)</enum><text>undercapitalized;</text>
</subparagraph><subparagraph id="IDD934176B786544429C8343B24B509368"><enum>(C)</enum><text>significantly
undercapitalized; and</text>
</subparagraph><subparagraph id="ID630B246CE0E14BC5BC5F9E613ED829B3"><enum>(D)</enum><text>critically
undercapitalized.</text>
</subparagraph></paragraph></subsection><subsection id="ID0177A2B19DD145028E7B01DCA1A21ADA"><enum>(c)</enum><header>Discretionary
classification</header>
<paragraph id="ID0AD314645CDB4D89A74C5A6CC5ABFA00"><enum>(1)</enum><header>Grounds for
reclassification</header><text>The Director may reclassify a regulated entity
under paragraph (2) if—</text>
<subparagraph id="ID4296F1DCCECC430B87495BCAF0B896D5"><enum>(A)</enum><text>at any time, the Director
determines in writing that the regulated entity is engaging in conduct that
could result in a rapid depletion of core or total capital or the value of
collateral pledged as security has decreased significantly or that the value of
the property subject to any mortgage held by the regulated entity (or
securitized in the case of an enterprise) has decreased significantly;</text>
</subparagraph><subparagraph id="ID22AD6286170C4F929065A4AAC5D4D069"><enum>(B)</enum><text>after notice and an
opportunity for hearing, the Director determines that the regulated entity is
in an unsafe or unsound condition; or</text>
</subparagraph><subparagraph id="IDB21C7C791CC740A0818FC8A6DCA72D0B"><enum>(C)</enum><text>pursuant to section
1371(b), the Director deems the regulated entity to be engaging in an unsafe or
unsound practice.</text>
</subparagraph></paragraph><paragraph id="IDBFA26FFE3BAA4BD6B72B785CAB06FCF7"><enum>(2)</enum><header>Reclassification</header><text>In
addition to any other action authorized under this title, including the
reclassification of a regulated entity for any reason not specified in this
subsection, if the Director takes any action described in paragraph (1), the
Director may classify a regulated entity—</text>
<subparagraph id="IDA5ECF76DD38449E18AF7E5ECBFF14B0D"><enum>(A)</enum><text>as undercapitalized, if
the regulated entity is otherwise classified as adequately capitalized;</text>
</subparagraph><subparagraph id="ID0F84421DA99048DCB269291A4816CDAB"><enum>(B)</enum><text>as significantly
undercapitalized, if the regulated entity is otherwise classified as
undercapitalized; and</text>
</subparagraph><subparagraph id="IDE3C2B4C81F2D4C61877371E503626B38"><enum>(C)</enum><text>as critically
undercapitalized, if the regulated entity is otherwise classified as
significantly undercapitalized.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDF308B4EB8E9C4F098EF8FDDE89877CD6"><enum>(5)</enum><text>by inserting after
subsection (d) (as so redesignated by paragraph (3) of this subsection), the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDC0584167B93B4B019A69C9CBD9BA5A87" reported-display-style="italic" style="OLC">
<subsection id="ID50F7D691C0964F14B783205331125453"><enum>(e)</enum><header>Restriction on capital
distributions</header>
<paragraph id="IDA6856BDDCF2543D5A8ED48EDC53A1ED3"><enum>(1)</enum><header>In
general</header><text>A regulated entity shall make no capital distribution if,
after making the distribution, the regulated entity would be
undercapitalized.</text>
</paragraph><paragraph id="ID2CD8ADCCB71941ADB76A07E1AD7BFA0D"><enum>(2)</enum><header>Exception</header><text>Notwithstanding
paragraph (1), the Director may permit a regulated 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>
<subparagraph id="ID0CA2195EE134489B8A2A94A1CD121F29"><enum>(A)</enum><text>is made in connection
with the issuance of additional shares or obligations of the regulated entity
in at least an equivalent amount; and</text>
</subparagraph><subparagraph id="ID7ED32385762A46E6BB28CA2AB8852DF8"><enum>(B)</enum><text>will reduce the financial
obligations of the regulated entity or otherwise improve the financial
condition of the
entity.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID7FB270B3C5454D659A9F7AE49C79E61E"><enum>(b)</enum><header>Regulations</header><text>Not
later than the expiration of the 180-day period beginning on the date of
enactment of this Act, the Director of the Federal Housing Finance Agency shall
issue regulations to carry out section 1364(b) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as added by this
section), relating to capital classifications for the Federal Home Loan
Banks.</text>
</subsection></section><section id="ID2ED47DF86FDE4406A8414A3CB86B1A4C"><enum>1143.</enum><header>Supervisory actions
applicable to undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1365 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) is
amended—</text>
<paragraph id="ID82B494B238F74573B86663CDEC845C5A"><enum>(1)</enum><text>by striking <quote>the
enterprise</quote> each place that term appears and inserting <quote>the
regulated entity</quote>;</text>
</paragraph><paragraph id="ID4A5C619F6D114C739A37C7AA69C69FA2"><enum>(2)</enum><text>by striking <quote>An
enterprise</quote> each place that term appears and inserting <quote>A
regulated entity</quote>;</text>
</paragraph><paragraph id="ID551608C2E6B34E6E973506AEBC4649B8"><enum>(3)</enum><text>by striking <quote>an
enterprise</quote> each place that term appears and inserting <quote>a
regulated entity</quote>;</text>
</paragraph><paragraph id="ID57A62B32D4F844B6AAC886EB4683AE0F"><enum>(4)</enum><text>in subsection (a)—</text>
<subparagraph id="ID1CED07D54A9F4ED1B1094A057BE8A844"><enum>(A)</enum><text>by redesignating
paragraphs (1) and (2) as paragraphs (2) and (3), respectively;</text>
</subparagraph><subparagraph id="IDE1AAB3F60C49460CB1BD768943974082"><enum>(B)</enum><text>by inserting before
paragraph (2), as redesignated, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDDA881B682BD34620B5F3F6C4C2A2B019" reported-display-style="italic" style="OLC">
<paragraph id="IDFA87775723104A91832F0437C52D7D62"><enum>(1)</enum><header>Required
monitoring</header><text>The Director shall—</text>
<subparagraph id="IDC8F33D5922DA42EAA0EEFE56A7577CC1"><enum>(A)</enum><text>closely monitor the
condition of any undercapitalized regulated entity;</text>
</subparagraph><subparagraph id="ID559A80CF99834418B05E9DA307C00534"><enum>(B)</enum><text>closely monitor
compliance with the capital restoration plan, restrictions, and requirements
imposed on an undercapitalized regulated entity under this section; and</text>
</subparagraph><subparagraph id="ID9793123D82F04BC69DF64836C3A728AC"><enum>(C)</enum><text>periodically review the
plan, restrictions, and requirements applicable to an undercapitalized
regulated entity to determine whether the plan, restrictions, and requirements
are achieving the purpose of this
section.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDE9748403FF2740FBBA45FDCD20FCDD61"><enum>(C)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID0D82D176E13446489D2DEAD1C0EE9EBD" reported-display-style="italic" style="OLC">
<paragraph id="ID9F483629BF304D4A8D9EBE3C038A0F12"><enum>(4)</enum><header>Restriction of asset
growth</header><text>An undercapitalized regulated 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="ID09BCFC4C954A4FEDAAFD9E7D0DA3BC9D"><enum>(A)</enum><text>the Director has accepted
the capital restoration plan of the regulated entity;</text>
</subparagraph><subparagraph id="ID9F699272DB91488B9F290EB902BAF3FE"><enum>(B)</enum><text>any increase in total
assets is consistent with the capital restoration plan; and</text>
</subparagraph><subparagraph id="ID391656811E7341EEBA47A5027EB64A6A"><enum>(C)</enum><text>the ratio of tangible
equity to assets of the regulated entity increases during the calendar quarter
at a rate sufficient to enable the regulated entity to become adequately
capitalized within a reasonable time.</text>
</subparagraph></paragraph><paragraph id="IDBFD977A26BC8467B920A646688556BCE"><enum>(5)</enum><header>Prior approval of
acquisitions and new activities</header><text>An undercapitalized regulated
entity shall not, directly or indirectly, acquire any interest in any entity or
engage in any new activity, unless—</text>
<subparagraph id="IDFC61898740FD4E088EBB292C07FCEB22"><enum>(A)</enum><text>the Director has accepted
the capital restoration plan of the regulated entity, the regulated entity is
implementing the plan, and the Director determines that the proposed action is
consistent with and will further the achievement of the plan; or</text>
</subparagraph><subparagraph id="IDD5E2FE3ED20941E8B272362B277BAE4F"><enum>(B)</enum><text>the Director determines
that the proposed action will further the purpose of this
subtitle.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID0CE7E25F3EB24E659D12E1605945FA5C"><enum>(5)</enum><text>in subsection (b)—</text>
<subparagraph id="IDB8715443CC90425DB004B1489E78B44C"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection">Discretionary</header-in-text></quote>;</text>
</subparagraph><subparagraph id="ID77270B926A384C7FA546B7AD876B8086"><enum>(B)</enum><text>in the matter preceding
paragraph (1), by striking <quote>may</quote> and inserting
<quote>shall</quote>; and</text>
</subparagraph><subparagraph id="IDDE561B2D503D4DD69F2C1AA3F4898571"><enum>(C)</enum><text>in paragraph (2)—</text>
<clause id="ID54AEB98B5C1A4091B8D176BD182906B3"><enum>(i)</enum><text>by striking <quote>make,
in good faith, reasonable efforts necessary to</quote>; and</text>
</clause><clause id="ID3F490641627B4CB788F38A9F61FE3666"><enum>(ii)</enum><text>by striking the period
at the end and inserting <quote>in any material respect.</quote>; and</text>
</clause></subparagraph></paragraph><paragraph id="IDC3E56DFDBBC247E3935B0D910288CC12"><enum>(6)</enum><text>by striking subsection
(c) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID96BB7FAD3C4B470D8751FCF340919945" reported-display-style="italic" style="OLC">
<subsection id="ID4859B89D70ED4DA6B16E41A4F16B6703"><enum>(c)</enum><header>Other discretionary
safeguards</header><text>The Director may take, with respect to an
undercapitalized regulated entity, any of the actions authorized to be taken
under section 1366 with respect to a significantly undercapitalized regulated
entity, if the Director determines that such actions are necessary to carry out
the purpose of this
subtitle.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID8451F4DF8D7543E3BF8520546D1D2798"><enum>1144.</enum><header>Supervisory actions
applicable to significantly undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1366 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>) is
amended—</text>
<paragraph id="IDC06F0C4676984FA0B8842BA15DCEF6A3"><enum>(1)</enum><text>in subsection (a)(2), by
striking <quote>undercapitalized enterprise</quote> and inserting
<quote>undercapitalized</quote>;</text>
</paragraph><paragraph id="IDFB4DE266AC3E423C8D0D258BF777BBA7"><enum>(2)</enum><text>by striking <quote>the
enterprise</quote> each place that term appears and inserting <quote>the
regulated entity</quote>;</text>
</paragraph><paragraph id="ID0CF7321950D94FB8A5AE084F1248C297"><enum>(3)</enum><text>by striking <quote>An
enterprise</quote> each place that term appears and inserting <quote>A
regulated entity</quote>;</text>
</paragraph><paragraph id="IDBDB914EF0C5E4466B9AE0AFEF01BFE29"><enum>(4)</enum><text>by striking <quote>an
enterprise</quote> each place that term appears and inserting <quote>a
regulated entity</quote>;</text>
</paragraph><paragraph id="ID634032A9A60543AA91B4A2C885A160D2"><enum>(5)</enum><text>in subsection (b)—</text>
<subparagraph id="ID375D13CD1D0D4A28882EF6743CF2AF99"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection">Discretionary
Supervisory</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Specific</header-in-text></quote>;</text>
</subparagraph><subparagraph id="IDB4DC4A95E9504985BF25925D3417B0FD"><enum>(B)</enum><text>in the matter preceding
paragraph (1), by striking <quote>may, at any time, take any</quote> and
inserting <quote>shall carry out this section by taking, at any time, 1 or
more</quote>;</text>
</subparagraph><subparagraph id="ID98BA18D424D54B05BBA44C9D5F332860"><enum>(C)</enum><text>by striking paragraph
(6);</text>
</subparagraph><subparagraph id="IDDD24DA1CE3124094823E1241C3888703"><enum>(D)</enum><text>by redesignating
paragraph (5) as paragraph (6);</text>
</subparagraph><subparagraph id="IDC202C9A776C843718997924039AEDA1B"><enum>(E)</enum><text>by inserting after
paragraph (4) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDAC3A27A7CC184B3FB4FA5024C46F51BF" reported-display-style="italic" style="OLC">
<paragraph id="IDA7326F6926C94A43854F8FD88FF2FC2C"><enum>(5)</enum><header>Improvement of
management</header><text>Take 1 or more of the following actions:</text>
<subparagraph id="IDA0AA8B44C05049CEAE45E64C245E2A71"><enum>(A)</enum><header>New election of
board</header><text>Order a new election for the board of directors of the
regulated entity.</text>
</subparagraph><subparagraph id="ID0009510F246B4A98B73EDC9254DC5E37"><enum>(B)</enum><header>Dismissal of directors
or executive officers</header><text>Require the regulated 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 regulated entity became
undercapitalized. Dismissal under this subparagraph shall not be construed to
be a removal pursuant to the enforcement powers of the Director under section
1377.</text>
</subparagraph><subparagraph id="IDF40327FF0EE84B2583271C22C6ABBE3F"><enum>(C)</enum><header>Employ qualified
executive officers</header><text>Require the regulated entity to employ
qualified executive officers (who, if the Director so specifies, shall be
subject to approval by the Director).</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDF82FA81274AA4E97B9FD988115CFA2A7"><enum>(F)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID13662DD6E80F40F7A5D45B0E4D2616E2" reported-display-style="italic" style="OLC">
<paragraph id="IDC261FE2A7FA348DD944205D1A02A384E"><enum>(7)</enum><header>Other
action</header><text>Require the regulated entity to take any other action that
the Director determines will better carry out the purpose of this section than
any of the other actions specified in this
subsection.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDA8BDFA1A28634586BD413916471D07B3"><enum>(6)</enum><text>by striking subsection
(c) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDFB28FB37D6E247DDA2F120B844FDBD75" reported-display-style="italic" style="OLC">
<subsection id="ID2E881D6A3D54498899EF924E034E8A85"><enum>(c)</enum><header>Restriction on
compensation of executive officers</header><text>A regulated entity that is
classified as significantly undercapitalized in accordance with section 1364
may not, without prior written approval by the Director—</text>
<paragraph id="ID9FC870D1B35C4A36A0657CB50207ECDE"><enum>(1)</enum><text>pay any bonus to any
executive officer; or</text>
</paragraph><paragraph id="IDF58B42583095418BB8815F75677B6F59"><enum>(2)</enum><text>provide compensation to
any executive officer at a rate exceeding the average rate of compensation of
that officer (excluding bonuses, stock options, and profit sharing) during the
12 calendar months preceding the calendar month in which the regulated entity
became significantly
undercapitalized.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID533800D289A74E8182A73769483FE34B"><enum>1145.</enum><header>Authority over
critically undercapitalized regulated entities</header>
<subsection id="ID4B2B0FD3ED0E41F2BDDE4B84579A6A3F"><enum>(a)</enum><header>In
general</header><text>Section 1367 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDDDA1418D73AC4899BEDDEDE760436BE3" reported-display-style="italic" style="OLC">
<section id="ID6E3D2EE9C30F45E899C547D9008E04B4"><enum>1367.</enum><header>Authority over
critically undercapitalized regulated entities</header>
<subsection id="IDDEC628E1223645998B3D58D19F369316"><enum>(a)</enum><header>Appointment of the
agency as conservator or receiver</header>
<paragraph id="IDECE8A5C881A34300869F37318F5E4D38"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal or State
law, the Director may appoint the Agency as conservator or receiver for a
regulated entity in the manner provided under paragraph (2) or (4). All
references to the conservator or receiver under this section are references to
the Agency acting as conservator or receiver.</text>
</paragraph><paragraph id="ID4A904883FCFA4F40B3475780C8B597D2"><enum>(2)</enum><header>Discretionary
appointment</header><text>The Agency may, at the discretion of the Director, be
appointed conservator or receiver for the purpose of reorganizing,
rehabilitating, or winding up the affairs of a regulated entity.</text>
</paragraph><paragraph id="IDEA9D418E10DB40D0894FBB66CF7FCCC6"><enum>(3)</enum><header>Grounds for
discretionary appointment of conservator or receiver</header><text>The grounds
for appointing conservator or receiver for any regulated entity under paragraph
(2) are as follows:</text>
<subparagraph id="ID7239E2269B4E4890AB27DB2921A983CF"><enum>(A)</enum><header>Substantial
dissipation</header><text>Substantial dissipation of assets or earnings due
to—</text>
<clause id="ID95158D6FE1EA4E79A5077ED5020E9284"><enum>(i)</enum><text>any violation of any
provision of Federal or State law; or</text>
</clause><clause id="IDD550E50110154D77B8B6C97B71D51894"><enum>(ii)</enum><text>any unsafe or unsound
practice.</text>
</clause></subparagraph><subparagraph id="ID28EF23B9B176401DB586508D5C04A5C7"><enum>(B)</enum><header>Unsafe or unsound
condition</header><text>An unsafe or unsound condition to transact
business.</text>
</subparagraph><subparagraph id="ID286CE47B4F6542739AEB518B62AAA9F4"><enum>(C)</enum><header>Cease and desist
orders</header><text>Any willful violation of a cease and desist order that has
become final.</text>
</subparagraph><subparagraph id="ID13617DC2601D4C1D98A0BF2BC77F4D5E"><enum>(D)</enum><header>Concealment</header><text>Any
concealment of the books, papers, records, or assets of the regulated entity,
or any refusal to submit the books, papers, records, or affairs of the
regulated entity, for inspection to any examiner or to any lawful agent of the
Director.</text>
</subparagraph><subparagraph id="ID52D0D37A4C7C43C6A98564D5152B9D98"><enum>(E)</enum><header>Inability to meet
obligations</header><text>The regulated entity is likely to be unable to pay
its obligations or meet the demands of its creditors in the normal course of
business.</text>
</subparagraph><subparagraph id="IDD767888B5BAE450E85387A6F5A24E432"><enum>(F)</enum><header>Losses</header><text>The
regulated entity has incurred or is likely to incur losses that will deplete
all or substantially all of its capital, and there is no reasonable prospect
for the regulated entity to become adequately capitalized (as defined in
section 1364(a)(1)).</text>
</subparagraph><subparagraph id="ID15DB83BDC36B450C9F661840CEBABD79"><enum>(G)</enum><header>Violations of
law</header><text>Any violation of any law or regulation, or any unsafe or
unsound practice or condition that is likely to—</text>
<clause id="IDECCBC5BD2EB7463AA10CD7FDABF59923"><enum>(i)</enum><text>cause insolvency or
substantial dissipation of assets or earnings; or</text>
</clause><clause id="ID37FDE0D92AC04906A9E6565AAEED270C"><enum>(ii)</enum><text>weaken the condition of
the regulated entity.</text>
</clause></subparagraph><subparagraph id="ID85212238D19640F1A4577623CA63543B"><enum>(H)</enum><header>Consent</header><text>The
regulated entity, by resolution of its board of directors or its shareholders
or members, consents to the appointment.</text>
</subparagraph><subparagraph id="IDAB9BB2AA3A3A48AFA40C11D28BE05A9D"><enum>(I)</enum><header>Undercapitalization</header><text>The
regulated entity is undercapitalized or significantly undercapitalized (as
defined in section 1364(a)(3)), and—</text>
<clause id="ID6EF70AD18DE64846ADB8DF08F543C14E"><enum>(i)</enum><text>has no reasonable
prospect of becoming adequately capitalized;</text>
</clause><clause id="IDCF9CF0ECAB2A46599A8AFE395638E30F"><enum>(ii)</enum><text>fails to become
adequately capitalized, as required by—</text>
<subclause id="ID646F2CF284D442E39D4D114C2B0529F6"><enum>(I)</enum><text>section 1365(a)(1) with
respect to a regulated entity; or</text>
</subclause><subclause id="ID1368BAFEC89D40CA9E9CF5325425189D"><enum>(II)</enum><text>section 1366(a)(1) with
respect to a significantly undercapitalized regulated entity;</text>
</subclause></clause><clause id="ID02D14318B47340BE95EEA74A11BF2153"><enum>(iii)</enum><text>fails to submit a
capital restoration plan acceptable to the Agency within the time prescribed
under section 1369C; or</text>
</clause><clause id="ID1A500B7CBBB94E4E8741C5D6F2DEF3B1"><enum>(iv)</enum><text>materially fails to
implement a capital restoration plan submitted and accepted under section
1369C.</text>
</clause></subparagraph><subparagraph id="IDFD9A3E699DC14F76A56069E2AC1EC5AF"><enum>(J)</enum><header>Critical
undercapitalization</header><text>The regulated entity is critically
undercapitalized, as defined in section 1364(a)(4).</text>
</subparagraph><subparagraph id="IDDCAC39DB2FDA45588FA69ACFF1B74513"><enum>(K)</enum><header>Money
laundering</header><text>The Attorney General notifies the Director in writing
that the regulated entity has been found guilty of a criminal offense under
section <external-xref legal-doc="usc" parsable-cite="usc/18/1956">1956</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/18/1957">1957</external-xref> of title 18, United States Code, or section 5322 or 5324
of title 31, United States Code.</text>
</subparagraph></paragraph><paragraph id="ID49514946215547E691DCA6BDC647FF48"><enum>(4)</enum><header>Mandatory
receivership</header>
<subparagraph id="ID2FF42B76F0FA41E8BE5363B54A2BBE5D"><enum>(A)</enum><header>In
general</header><text>The Director shall appoint the Agency as receiver for a
regulated entity if the Director determines, in writing, that—</text>
<clause id="ID90B714A6C51C47F899E612A1C6E3A942"><enum>(i)</enum><text>the assets of the
regulated entity are, and during the preceding 60 calendar days have been, less
than the obligations of the regulated entity to its creditors and others;
or</text>
</clause><clause id="IDD9475EA06916402BBAF2413A18087817"><enum>(ii)</enum><text>the regulated entity is
not, and during the preceding 60 calendar days has not been, generally paying
the debts of the regulated entity (other than debts that are the subject of a
bona fide dispute) as such debts become due.</text>
</clause></subparagraph><subparagraph id="ID04357678EDAB4BA7880EB006B94C20BC"><enum>(B)</enum><header>Periodic determination
required for critically undercapitalized regulated entity</header><text>If a
regulated entity is critically undercapitalized, the Director shall make a
determination, in writing, as to whether the regulated entity meets the
criteria specified in clause (i) or (ii) of subparagraph (A)—</text>
<clause id="ID513F9A962EF448E388A5B5F1716B2538"><enum>(i)</enum><text>not later than 30
calendar days after the regulated entity initially becomes critically
undercapitalized; and</text>
</clause><clause id="ID9820703B8E1F41008034AFF56C860192"><enum>(ii)</enum><text>at least once during
each succeeding 30-calendar day period.</text>
</clause></subparagraph><subparagraph id="ID917B23F71D824D27BCC2F3C664D30CA1"><enum>(C)</enum><header>Determination not
required if receivership already in place</header><text>Subparagraph (B) does
not apply with respect to a regulated entity in any period during which the
Agency serves as receiver for the regulated entity.</text>
</subparagraph><subparagraph id="IDBFB50995D55F4D6CA9A132063CC76151"><enum>(D)</enum><header>Receivership terminates
conservatorship</header><text>The appointment of the Agency as receiver of a
regulated entity under this section shall immediately terminate any
conservatorship established for the regulated entity under this title.</text>
</subparagraph></paragraph><paragraph id="ID5442B5B528D24863B4169F4F325B7D85"><enum>(5)</enum><header>Judicial
review</header>
<subparagraph id="ID2390D5CBB55E4F8084B1F21A0AF24509"><enum>(A)</enum><header>In
general</header><text>If the Agency is appointed conservator or receiver under
this section, the regulated entity may, within 30 days of such appointment,
bring an action in the United States district court for the judicial district
in which the home office of such regulated entity is located, or in the United
States District Court for the District of Columbia, for an order requiring the
Agency to remove itself as conservator or receiver.</text>
</subparagraph><subparagraph id="IDB73E2D1A575E44938855FD97B952D3CE"><enum>(B)</enum><header>Review</header><text>Upon
the filing of an action under subparagraph (A), the court shall, upon the
merits, dismiss such action or direct the Agency to remove itself as such
conservator or receiver.</text>
</subparagraph></paragraph><paragraph id="IDA24B2E544A5E454F9F69B682B42F0E6E"><enum>(6)</enum><header>Directors not liable
for acquiescing in appointment of conservator or receiver</header><text>The
members of the board of directors of a regulated entity shall not be liable to
the shareholders or creditors of the regulated entity for acquiescing in or
consenting in good faith to the appointment of the Agency as conservator or
receiver for that regulated entity.</text>
</paragraph><paragraph id="ID7BFC4E5F71A744929FD96F0F4DB202CC"><enum>(7)</enum><header>Agency not subject to
any other federal agency</header><text>When acting as conservator or receiver,
the Agency shall not be subject to the direction or supervision of any other
agency of the United States or any State in the exercise of the rights, powers,
and privileges of the Agency.</text>
</paragraph></subsection><subsection id="IDCA5FE35642054D688689C3D40A61C3D4"><enum>(b)</enum><header>Powers and duties of
the agency as conservator or receiver</header>
<paragraph id="IDBCBDABC8C9DD4C7D9CCA22FC593C777C"><enum>(1)</enum><header>Rulemaking authority of
the agency</header><text>The Agency may prescribe such regulations as the
Agency determines to be appropriate regarding the conduct of conservatorships
or receiverships.</text>
</paragraph><paragraph id="ID3F9F46EC51CF4E5AA81096C35270A90A"><enum>(2)</enum><header>General powers</header>
<subparagraph id="IDB08D0DFE91BE43F4929F21A4396B854F"><enum>(A)</enum><header>Successor to regulated
entity</header><text>The Agency shall, as conservator or receiver, and by
operation of law, immediately succeed to—</text>
<clause id="IDEEA08AB7044543E287F85B96A1512C73"><enum>(i)</enum><text>all rights, titles,
powers, and privileges of the regulated entity, and of any stockholder,
officer, or director of such regulated entity with respect to the regulated
entity and the assets of the regulated entity; and</text>
</clause><clause id="ID758412450D6E4F5D9853CC9E9FF37813"><enum>(ii)</enum><text>title to the books,
records, and assets of any other legal custodian of such regulated
entity.</text>
</clause></subparagraph><subparagraph id="IDAC93EA91B36D44D9952DA44B9DF56D7F"><enum>(B)</enum><header>Operate the regulated
entity</header><text>The Agency may, as conservator or receiver—</text>
<clause id="ID319791C6549A4AA7AD153E89982FDC3B"><enum>(i)</enum><text>take over the assets of
and operate the regulated entity with all the powers of the shareholders, the
directors, and the officers of the regulated entity and conduct all business of
the regulated entity;</text>
</clause><clause id="ID947811BF08DC4723A8BCF605F96CE3F6"><enum>(ii)</enum><text>collect all obligations
and money due the regulated entity;</text>
</clause><clause id="ID61080F15FFC64BEC9BB79CC1D032FB39"><enum>(iii)</enum><text>perform all functions
of the regulated entity in the name of the regulated entity which are
consistent with the appointment as conservator or receiver;</text>
</clause><clause id="IDDF3C4FBF4C6D4170B74EC928D9420589"><enum>(iv)</enum><text>preserve and conserve
the assets and property of the regulated entity; and</text>
</clause><clause id="IDBFE3028E528248969CFCEAC956B03E89"><enum>(v)</enum><text>provide by contract for
assistance in fulfilling any function, activity, action, or duty of the Agency
as conservator or receiver.</text>
</clause></subparagraph><subparagraph id="IDEDE117E818454AC4AF43C2736758F0CB"><enum>(C)</enum><header>Functions of officers,
directors, and shareholders of a regulated entity</header><text>The Agency may,
by regulation or order, provide for the exercise of any function by any
stockholder, director, or officer of any regulated entity for which the Agency
has been named conservator or receiver.</text>
</subparagraph><subparagraph id="IDA18C80762CD54621BA869D836F9E8087"><enum>(D)</enum><header>Powers as
conservator</header><text>The Agency may, as conservator, take such action as
may be—</text>
<clause id="IDE39CBFFD487B455B9F9508DE1E71F809"><enum>(i)</enum><text>necessary to put the
regulated entity in a sound and solvent condition; and</text>
</clause><clause id="ID8EBA11C526944C7688D0482372C7B3DD"><enum>(ii)</enum><text>appropriate to carry on
the business of the regulated entity and preserve and conserve the assets and
property of the regulated entity.</text>
</clause></subparagraph><subparagraph id="ID0AFA9AC7B1B7402BA69A326BB7A6119B"><enum>(E)</enum><header>Additional powers as
receiver</header><text>In any case in which the Agency is acting as receiver,
the Agency shall place the regulated entity in liquidation and proceed to
realize upon the assets of the regulated entity in such manner as the Agency
deems appropriate, including through the sale of assets, the transfer of assets
to a limited-life regulated entity established under subsection (i), or the
exercise of any other rights or privileges granted to the Agency under this
paragraph.</text>
</subparagraph><subparagraph id="ID6F05B979B8BA4A9ABCDCA71565223D68"><enum>(F)</enum><header>Organization of new
enterprise</header><text>The Agency shall, as receiver for an enterprise,
organize a successor enterprise that will operate pursuant to subsection
(i).</text>
</subparagraph><subparagraph id="ID12F606F879564677BC02825F43D4094A"><enum>(G)</enum><header>Transfer or sale of
assets and liabilities</header><text>The Agency may, as conservator or
receiver, transfer or sell any asset or liability of the regulated entity in
default, and may do so without any approval, assignment, or consent with
respect to such transfer or sale.</text>
</subparagraph><subparagraph id="IDE2F9504B06FA40A4ADB64EF407333BCA"><enum>(H)</enum><header>Payment of valid
obligations</header><text>The Agency, as conservator or receiver, shall, to the
extent of proceeds realized from the performance of contracts or sale of the
assets of a regulated entity, pay all valid obligations of the regulated entity
that are due and payable at the time of the appointment of the Agency as
conservator or receiver, in accordance with the prescriptions and limitations
of this section.</text>
</subparagraph><subparagraph id="ID5B4837ABDFFC486E94C850D8B75C5D3A"><enum>(I)</enum><header>Subpoena
authority</header>
<clause id="ID6707146F695049FE8CCE94D640B58E29"><enum>(i)</enum><header>In general</header>
<subclause id="ID59EC37D2C28F4FD39A4C6B3DDF1E0E3C"><enum>(I)</enum><header>Agency
authority</header><text>The Agency may, as conservator or receiver, and for
purposes of carrying out any power, authority, or duty with respect to a
regulated entity (including determining any claim against the regulated entity
and determining and realizing upon any asset of any person in the course of
collecting money due the regulated entity), exercise any power established
under section 1348.</text>
</subclause><subclause id="ID6C83EF384B684F8C96E52645FD3E2F82"><enum>(II)</enum><header>Applicability of
law</header><text>The provisions of section 1348 shall apply with respect to
the exercise of any power under this subparagraph, in the same manner as such
provisions apply under that section.</text>
</subclause></clause><clause id="IDCF428605FD8143F0AD1652B8835C3C67"><enum>(ii)</enum><header>Subpoena</header><text>A
subpoena or subpoena duces tecum may be issued under clause (i) only by, or
with the written approval of, the Director, or the designee of the
Director.</text>
</clause><clause id="ID6BD47EB9035348B8A59940308BC13F05"><enum>(iii)</enum><header>Rule of
construction</header><text>This subsection shall not be construed to limit any
rights that the Agency, in any capacity, might otherwise have under section
1317 or 1379B.</text>
</clause></subparagraph><subparagraph id="ID9906407A3CF44225A9C778C541354459"><enum>(J)</enum><header>Incidental
powers</header><text>The Agency may, as conservator or receiver—</text>
<clause id="IDADB98F17CB40407BBCBB0B4F24A5BF72"><enum>(i)</enum><text>exercise all powers and
authorities specifically granted to conservators or receivers, respectively,
under this section, and such incidental powers as shall be necessary to carry
out such powers; and</text>
</clause><clause id="IDD88F9930F29F476494320239BC6F8883"><enum>(ii)</enum><text>take any action
authorized by this section, which the Agency determines is in the best
interests of the regulated entity or the Agency.</text>
</clause></subparagraph><subparagraph id="ID4454AB8EC2A14AB1AD9CED7476EE5493"><enum>(K)</enum><header>Other
provisions</header>
<clause id="ID657D5034BB4048628D53BD57368C13DE"><enum>(i)</enum><header>Shareholders and
creditors of failed regulated entity</header><text>Notwithstanding any other
provision of law, the appointment of the Agency as receiver for a regulated
entity pursuant to paragraph (2) or (4) of subsection (a) and its succession,
by operation of law, to the rights, titles, powers, and privileges described in
subsection (b)(2)(A) shall terminate all rights and claims that the
stockholders and creditors of the regulated entity may have against the assets
or charter of the regulated entity or the Agency arising as a result of their
status as stockholders or creditors, except for their right to payment,
resolution, or other satisfaction of their claims, as permitted under
subsections (b)(9), (c), and (e).</text>
</clause><clause id="ID7881F79B8748423D8CA6A9D6A503164C"><enum>(ii)</enum><header>Assets of regulated
entity</header><text>Notwithstanding any other provision of law, for purposes
of this section, the charter of a regulated entity shall not be considered an
asset of the regulated entity.</text>
</clause></subparagraph></paragraph><paragraph id="IDDC6A5E1045A24BA58CB528696BD8781E"><enum>(3)</enum><header>Authority of receiver
to determine claims</header>
<subparagraph id="IDF14D28AF7150432582911FAF35A0A8FB"><enum>(A)</enum><header>In
general</header><text>The Agency may, as receiver, determine claims in
accordance with the requirements of this subsection and any regulations
prescribed under paragraph (4).</text>
</subparagraph><subparagraph id="ID57C8D23BFD7C48A09705D8FB07972892"><enum>(B)</enum><header>Notice
requirements</header><text>The receiver, in any case involving the liquidation
or winding up of the affairs of a closed regulated entity, shall—</text>
<clause id="ID2A2FF07403E945B88BE1E479649B200F"><enum>(i)</enum><text>promptly publish a notice
to the creditors of the regulated entity to present their claims, together with
proof, to the receiver by a date specified in the notice which shall be not
less than 90 days after the date of publication of such notice; and</text>
</clause><clause id="ID593C33E428CE4340B51659FA734DE783"><enum>(ii)</enum><text>republish such notice
approximately 1 month and 2 months, respectively, after the date of publication
under clause (i).</text>
</clause></subparagraph><subparagraph id="IDFF07510E33BD4C8F89229272951C4E4E"><enum>(C)</enum><header>Mailing
required</header><text>The receiver shall mail a notice similar to the notice
published under subparagraph (B)(i) at the time of such publication to any
creditor shown on the books of the regulated entity—</text>
<clause id="ID094516CC185D484182B5C57A334C0622"><enum>(i)</enum><text>at the last address of
the creditor appearing in such books; or</text>
</clause><clause id="ID7E2CD092E7E6418D9D2DDF7C901EB9A5"><enum>(ii)</enum><text>upon discovery of the
name and address of a claimant not appearing on the books of the regulated
entity, within 30 days after the discovery of such name and address.</text>
</clause></subparagraph></paragraph><paragraph id="IDF2E3EC87667C480CB47A1C5D15E6CFFD"><enum>(4)</enum><header>Rulemaking authority
relating to determination of claims</header><text>Subject to subsection (c),
the Director may prescribe regulations regarding the allowance or disallowance
of claims by the receiver and providing for administrative determination of
claims and review of such determination.</text>
</paragraph><paragraph id="ID3247FFB5E88E45849550D0454D2E3A3A"><enum>(5)</enum><header>Procedures for
determination of claims</header>
<subparagraph id="ID73C9631688394997BEBFE2545BCBD4C6"><enum>(A)</enum><header>Determination
period</header>
<clause id="ID7D60E1DCD2F3459F9B4022E9BFABB4DD"><enum>(i)</enum><header>In
general</header><text>Before the end of the 180-day period beginning on the
date on which any claim against a regulated entity is filed with the Agency as
receiver, the Agency shall determine whether to allow or disallow the claim and
shall notify the claimant of any determination with respect to such
claim.</text>
</clause><clause id="ID741D689708544F54BE334E7360CA08CD"><enum>(ii)</enum><header>Extension of
time</header><text>The period described in clause (i) may be extended by a
written agreement between the claimant and the Agency.</text>
</clause><clause id="ID2DE6B2784D9A4F1BB0EF08061B1C5913"><enum>(iii)</enum><header>Mailing of notice
sufficient</header><text>The requirements of clause (i) shall be deemed to be
satisfied if the notice of any determination with respect to any claim is
mailed to the last address of the claimant which appears—</text>
<subclause id="ID2CC774EE753C429AA9A5D5C5F781036C"><enum>(I)</enum><text>on the books of the
regulated entity;</text>
</subclause><subclause id="ID256334B6C6FE4A3289546F4683947084"><enum>(II)</enum><text>in the claim filed by
the claimant; or</text>
</subclause><subclause id="ID449E75EC22FB4C69BBB502CC1A4598DB"><enum>(III)</enum><text>in documents submitted
in proof of the claim.</text>
</subclause></clause><clause id="ID6C906148026B459C841FDC88B99B8CF0"><enum>(iv)</enum><header>Contents of notice of
disallowance</header><text>If any claim filed under clause (i) is disallowed,
the notice to the claimant shall contain—</text>
<subclause id="IDE0DFD462D1194FBE8812F77AA1CE97AF"><enum>(I)</enum><text>a statement of each
reason for the disallowance; and</text>
</subclause><subclause id="ID09969403048B4CFFB0BD805EA87B8696"><enum>(II)</enum><text>the procedures available
for obtaining agency review of the determination to disallow the claim or
judicial determination of the claim.</text>
</subclause></clause></subparagraph><subparagraph id="ID01FC5253F26D47BFBBB60C51BF5E4B0B"><enum>(B)</enum><header>Allowance of proven
claim</header><text>The receiver shall allow any claim received on or before
the date specified in the notice published under paragraph (3)(B)(i) by the
receiver from any claimant which is proved to the satisfaction of the
receiver.</text>
</subparagraph><subparagraph id="ID69A2ACB33DF94486A26CB69104677D80"><enum>(C)</enum><header>Disallowance of claims
filed after filing period</header><text>Claims filed after the date specified
in the notice published under paragraph (3)(B)(i), or the date specified under
paragraph (3)(C), shall be disallowed and such disallowance shall be
final.</text>
</subparagraph><subparagraph id="ID2A06ECDFB51D4F528C1BAC594570A86E"><enum>(D)</enum><header>Authority to disallow
claims</header>
<clause id="ID19C376D92A814F14B33F2F189A75F365"><enum>(i)</enum><header>In
general</header><text>The receiver may disallow any portion of any claim by a
creditor or claim of security, preference, or priority which is not proved to
the satisfaction of the receiver.</text>
</clause><clause id="ID8B5534FA5CE3442E9A66A3E08C66AFC8"><enum>(ii)</enum><header>Payments to less than
fully secured creditors</header><text>In the case of a claim of a creditor
against a regulated entity which is secured by any property or other asset of
such regulated entity, the receiver—</text>
<subclause id="ID4EACC5E59BE443F483051928FEC46176"><enum>(I)</enum><text>may treat the portion of
such claim which exceeds an amount equal to the fair market value of such
property or other asset as an unsecured claim against the regulated entity;
and</text>
</subclause><subclause id="ID0E6CE25781D2474483D1B8940C7F1080"><enum>(II)</enum><text>may not make any payment
with respect to such unsecured portion of the claim, other than in connection
with the disposition of all claims of unsecured creditors of the regulated
entity.</text>
</subclause></clause><clause id="ID318F94B768AB4C5AAF70ECE2AB10F4BA"><enum>(iii)</enum><header>Exceptions</header><text>No
provision of this paragraph shall apply with respect to—</text>
<subclause id="IDF38B598852074FB18599363F273E64BE"><enum>(I)</enum><text>any extension of credit
from any Federal Reserve Bank, Federal Home Loan Bank, or the United States
Treasury; or</text>
</subclause><subclause id="IDB4CB156DF7344823BE8E876E6D8402FD"><enum>(II)</enum><text>any security interest in
the assets of the regulated entity securing any such extension of
credit.</text>
</subclause></clause></subparagraph><subparagraph id="ID0A4C7133328A45979560A2CCDD056825"><enum>(E)</enum><header>No judicial review of
determination pursuant to subparagraph (d)</header><text>No court may review
the determination of the Agency under subparagraph (D) to disallow a
claim.</text>
</subparagraph><subparagraph id="IDCB4509ED14D64075A8BDE89E89270A82"><enum>(F)</enum><header>Legal effect of
filing</header>
<clause id="ID1276B03AE1984AF2BABA11C166CC3466"><enum>(i)</enum><header>Statute of limitation
tolled</header><text>For purposes of any applicable statute of limitations, the
filing of a claim with the receiver shall constitute a commencement of an
action.</text>
</clause><clause id="IDFF28FF449C63478285EA093C4A28FB08"><enum>(ii)</enum><header>No prejudice to other
actions</header><text>Subject to paragraph (10), the filing of a claim with the
receiver shall not prejudice any right of the claimant to continue any action
which was filed before the date of the appointment of the receiver, subject to
the determination of claims by the receiver.</text>
</clause></subparagraph></paragraph><paragraph id="ID7B7C5D0F4EC941D7B086158C02ED0969"><enum>(6)</enum><header>Provision for judicial
determination of claims</header>
<subparagraph id="IDEC34817A8F6B483AA795C08B1BEB2202"><enum>(A)</enum><header>In
general</header><text>The claimant may file suit on a claim (or continue an
action commenced before the appointment of the receiver) in the district or
territorial court of the United States for the district within which the
principal place of business of the regulated entity is located or the United
States District Court for the District of Columbia (and such court shall have
jurisdiction to hear such claim), before the end of the 60-day period beginning
on the earlier of—</text>
<clause id="ID3FA7F632180C42B19D9FAB9EC8335F72"><enum>(i)</enum><text>the end of the period
described in paragraph (5)(A)(i) with respect to any claim against a regulated
entity for which the Agency is receiver; or</text>
</clause><clause id="ID5673CE41DAE84D3D96F0C041BD99EA42"><enum>(ii)</enum><text>the date of any notice
of disallowance of such claim pursuant to paragraph (5)(A)(i).</text>
</clause></subparagraph><subparagraph id="IDF70484E4C3454F98997C2599B3757B77"><enum>(B)</enum><header>Statute of
limitations</header><text>A claim shall be deemed to be disallowed (other than
any portion of such claim which was allowed by the receiver), and such
disallowance shall be final, and the claimant shall have no further rights or
remedies with respect to such claim, if the claimant fails, before the end of
the 60-day period described under subparagraph (A), to file suit on such claim
(or continue an action commenced before the appointment of the
receiver).</text>
</subparagraph></paragraph><paragraph id="IDA89EB9B7E14943AFBD44A446256CB54A"><enum>(7)</enum><header>Review of
claims</header>
<subparagraph id="IDCD65CC950D5245F197DC9A9F2E851011"><enum>(A)</enum><header>Other review
procedures</header>
<clause id="ID27D57C012E5F452E97724D29156D5B21"><enum>(i)</enum><header>In
general</header><text>The Agency shall establish such alternative dispute
resolution processes as may be appropriate for the resolution of claims filed
under paragraph (5)(A)(i).</text>
</clause><clause id="IDE6AC798BD0D24D598B0847544155DF26"><enum>(ii)</enum><header>Criteria</header><text>In
establishing alternative dispute resolution processes, the Agency shall strive
for procedures which are expeditious, fair, independent, and low cost.</text>
</clause><clause id="IDDAF560BB09074BD08F25C273DF7D4C17"><enum>(iii)</enum><header>Voluntary binding or
nonbinding procedures</header><text>The Agency may establish both binding and
nonbinding processes under this subparagraph, which may be conducted by any
government or private party. All parties, including the claimant and the
Agency, must agree to the use of the process in a particular case.</text>
</clause></subparagraph><subparagraph id="ID41AA4A8F8CD4424EB5CD22743A65A47A"><enum>(B)</enum><header>Consideration of
incentives</header><text>The Agency shall seek to develop incentives for
claimants to participate in the alternative dispute resolution process.</text>
</subparagraph></paragraph><paragraph id="IDD4954014B6EC4AA68D4D0373DD625616"><enum>(8)</enum><header>Expedited determination
of claims</header>
<subparagraph id="IDC92AA57C0F6D4C66B9700366BE281833"><enum>(A)</enum><header>Establishment
required</header><text>The Agency shall establish a procedure for expedited
relief outside of the routine claims process established under paragraph (5)
for claimants who—</text>
<clause id="ID046E2D7745A044819BBF59127049EFAD"><enum>(i)</enum><text>allege the existence of
legally valid and enforceable or perfected security interests in assets of any
regulated entity for which the Agency has been appointed receiver; and</text>
</clause><clause id="ID6FC966D41D8740DBA598D905861071EB"><enum>(ii)</enum><text>allege that irreparable
injury will occur if the routine claims procedure is followed.</text>
</clause></subparagraph><subparagraph id="ID2D85E05ECF1348349C1ED4A0BB067981"><enum>(B)</enum><header>Determination
period</header><text>Before the end of the 90-day period beginning on the date
on which any claim is filed in accordance with the procedures established under
subparagraph (A), the Director shall—</text>
<clause id="ID8C6020AF48A641A29C9C8CE5ECE6E77C"><enum>(i)</enum><text>determine—</text>
<subclause id="ID5E4A1385A03143468562BB1F00AEA174"><enum>(I)</enum><text>whether to allow or
disallow such claim; or</text>
</subclause><subclause id="IDEC9292EF9247413C8C47E9556812801C"><enum>(II)</enum><text>whether such claim
should be determined pursuant to the procedures established under paragraph
(5); and</text>
</subclause></clause><clause id="IDB3B8A78BF7E84AA5896323C8022E83DA"><enum>(ii)</enum><text>notify the claimant of
the determination, and if the claim is disallowed, provide a statement of each
reason for the disallowance and the procedure for obtaining agency review or
judicial determination.</text>
</clause></subparagraph><subparagraph id="ID66F8D37F511F41419740BC27FE4C1043"><enum>(C)</enum><header>Period for filing or
renewing suit</header><text>Any claimant who files a request for expedited
relief shall be permitted to file a suit, or to continue a suit filed before
the date of appointment of the receiver, seeking a determination of the rights
of the claimant with respect to such security interest after the earlier
of—</text>
<clause id="ID9A201E4A16934071AA6C4ACC9BA95509"><enum>(i)</enum><text>the end of the 90-day
period beginning on the date of the filing of a request for expedited relief;
or</text>
</clause><clause id="ID3A912C1BBCA84783BBFED23EA1AD638F"><enum>(ii)</enum><text>the date on which the
Agency denies the claim.</text>
</clause></subparagraph><subparagraph id="IDE241E0E03ECF4B2AB77816C59D899270"><enum>(D)</enum><header>Statute of
limitations</header><text>If an action described under subparagraph (C) is not
filed, or the motion to renew a previously filed suit is not made, before the
end of the 30-day period beginning on the date on which such action or motion
may be filed under subparagraph (B), the claim shall be deemed to be disallowed
as of the end of such period (other than any portion of such claim which was
allowed by the receiver), such disallowance shall be final, and the claimant
shall have no further rights or remedies with respect to such claim.</text>
</subparagraph><subparagraph id="ID885AEF2DC003485EA4081A2BC510290A"><enum>(E)</enum><header>Legal effect of
filing</header>
<clause id="ID71BD1E7C1AE540C6ADB97C8E25520D44"><enum>(i)</enum><header>Statute of limitation
tolled</header><text>For purposes of any applicable statute of limitations, the
filing of a claim with the receiver shall constitute a commencement of an
action.</text>
</clause><clause id="ID36E7E8E4572B459AB2E13461CD34A8D1"><enum>(ii)</enum><header>No prejudice to other
actions</header><text>Subject to paragraph (10), the filing of a claim with the
receiver shall not prejudice any right of the claimant to continue any action
that was filed before the appointment of the receiver, subject to the
determination of claims by the receiver.</text>
</clause></subparagraph></paragraph><paragraph id="ID14632D9D4F614C70BAC11FDA879F12D5"><enum>(9)</enum><header>Payment of
claims</header>
<subparagraph id="ID9450107B646F42AA81C7D46964A8651D"><enum>(A)</enum><header>In
general</header><text>The receiver may, in the discretion of the receiver, and
to the extent that funds are available from the assets of the regulated entity,
pay creditor claims, in such manner and amounts as are authorized under this
section, which are—</text>
<clause id="ID5E4440F838E447F09B29A93143BF447E"><enum>(i)</enum><text>allowed by the
receiver;</text>
</clause><clause id="ID72A1448FB4AF430B92FBF4ACE32D6CFA"><enum>(ii)</enum><text>approved by the Agency
pursuant to a final determination pursuant to paragraph (7) or (8); or</text>
</clause><clause id="ID439D16FCC9E5487580C36B67FF81677E"><enum>(iii)</enum><text>determined by the final
judgment of any court of competent jurisdiction.</text>
</clause></subparagraph><subparagraph id="ID6120F31525C240B3985582BBF5EA35E4"><enum>(B)</enum><header>Agreements against the
interest of the agency</header><text>No agreement that tends to diminish or
defeat the interest of the Agency in any asset acquired by the Agency as
receiver under this section shall be valid against the Agency unless such
agreement is in writing and executed by an authorized officer or representative
of the regulated entity.</text>
</subparagraph><subparagraph id="ID18AAAA1F35404959A85629025E30B37D"><enum>(C)</enum><header>Payment of dividends on
claims</header><text>The receiver may, in the sole discretion of the receiver,
pay from the assets of the regulated entity dividends on proved claims at any
time, and no liability shall attach to the Agency by reason of any such
payment, for failure to pay dividends to a claimant whose claim is not proved
at the time of any such payment.</text>
</subparagraph><subparagraph id="ID3D91A0778C4D4B02946AAA21297E28CB"><enum>(D)</enum><header>Rulemaking authority of
the director</header><text>The Director may prescribe such rules, including
definitions of terms, as the Director deems appropriate to establish a single
uniform interest rate for, or to make payments of post-insolvency interest to
creditors holding proven claims against the receivership estates of the
regulated entity, following satisfaction by the receiver of the principal
amount of all creditor claims.</text>
</subparagraph></paragraph><paragraph id="ID5A03CC37F1EC470589A86943BBEFED72"><enum>(10)</enum><header>Suspension of legal
actions</header>
<subparagraph id="IDF273B61E44BF4BF7901F6A3AC526981D"><enum>(A)</enum><header>In
general</header><text>After the appointment of a conservator or receiver for a
regulated entity, the conservator or receiver may, in any judicial action or
proceeding to which such regulated entity is or becomes a party, request a stay
for a period not to exceed—</text>
<clause id="IDFBEB3204DF324B79827C347731580D90"><enum>(i)</enum><text>45 days, in the case of
any conservator; and</text>
</clause><clause id="ID65A3138D468E431BB6883F8F42812B8E"><enum>(ii)</enum><text>90 days, in the case of
any receiver.</text>
</clause></subparagraph><subparagraph id="ID2E33F81819DC499F8FB722543B47C2AF"><enum>(B)</enum><header>Grant of stay by all
courts required</header><text>Upon receipt of a request by the conservator or
receiver under subparagraph (A) for a stay of any judicial action or proceeding
in any court with jurisdiction of such action or proceeding, the court shall
grant such stay as to all parties.</text>
</subparagraph></paragraph><paragraph id="ID7009602314DB4650B7E973CAFEE89945"><enum>(11)</enum><header>Additional rights and
duties</header>
<subparagraph id="IDCC032589F89148C7A5B7F0D7383F2496"><enum>(A)</enum><header>Prior final
adjudication</header><text>The Agency shall abide by any final unappealable
judgment of any court of competent jurisdiction which was rendered before the
appointment of the Agency as conservator or receiver.</text>
</subparagraph><subparagraph id="ID4707EBB69ED347F795DFD5D0F1A306EB"><enum>(B)</enum><header>Rights and remedies of
conservator or receiver</header><text>In the event of any appealable judgment,
the Agency as conservator or receiver—</text>
<clause id="ID6E70E4FE9FF24640B1B6D5AB08C58531"><enum>(i)</enum><text>shall have all of the
rights and remedies available to the regulated entity (before the appointment
of such conservator or receiver) and the Agency, including removal to Federal
court and all appellate rights; and</text>
</clause><clause id="ID34985272EA704EA091940E17927FA575"><enum>(ii)</enum><text>shall not be required to
post any bond in order to pursue such remedies.</text>
</clause></subparagraph><subparagraph id="ID9B17032F5B134CE7978C92417105FD44"><enum>(C)</enum><header>No attachment or
execution</header><text>No attachment or execution may issue by any court upon
assets in the possession of the receiver, or upon the charter, of a regulated
entity for which the Agency has been appointed receiver.</text>
</subparagraph><subparagraph id="ID015BD3D621E5492A8F692FBA673C2669"><enum>(D)</enum><header>Limitation on judicial
review</header><text>Except as otherwise provided in this subsection, no court
shall have jurisdiction over—</text>
<clause id="ID2B5926440A5A4E5DB0C4032B20C4A395"><enum>(i)</enum><text>any claim or action for
payment from, or any action seeking a determination of rights with respect to,
the assets or charter of any regulated entity for which the Agency has been
appointed receiver; or</text>
</clause><clause id="ID97E6B5E733044154B1435C85254D4F7C"><enum>(ii)</enum><text>any claim relating to
any act or omission of such regulated entity or the Agency as receiver.</text>
</clause></subparagraph><subparagraph id="ID3192DE2DBED24DC2BF17FACCDC099D31"><enum>(E)</enum><header>Disposition of
assets</header><text>In exercising any right, power, privilege, or authority as
conservator or receiver in connection with any sale or disposition of assets of
a regulated entity for which the Agency has been appointed conservator or
receiver, the Agency shall conduct its operations in a manner which—</text>
<clause id="IDDCF4DAFD3F2A4193B451B3B3D3C64A25"><enum>(i)</enum><text>maximizes the net present
value return from the sale or disposition of such assets;</text>
</clause><clause id="ID2A75142FB8DD47F1B588233EDC4FBBC0"><enum>(ii)</enum><text>minimizes the amount of
any loss realized in the resolution of cases; and</text>
</clause><clause id="ID762C52BE37694015AD3CFA4597FA485D"><enum>(iii)</enum><text>ensures adequate
competition and fair and consistent treatment of offerors.</text>
</clause></subparagraph></paragraph><paragraph id="IDD24502459906494E8EAFCB0E65A3F5A2"><enum>(12)</enum><header>Statute of limitations
for actions brought by conservator or receiver</header>
<subparagraph id="IDDA63094BEA2A4ED180B0ADA12217BCF3"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any provision of any contract, the
applicable statute of limitations with regard to any action brought by the
Agency as conservator or receiver shall be—</text>
<clause id="ID680A82A38F264DFAAD436913AF2CB1AB"><enum>(i)</enum><text>in the case of any
contract claim, the longer of—</text>
<subclause id="ID53500F755E6C4D95ACE2D18B1A49438B"><enum>(I)</enum><text>the 6-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="ID96A3091DD53F4430821DCEA25B318E6C"><enum>(II)</enum><text>the period applicable
under State law; and</text>
</subclause></clause><clause id="IDE08D8F8AED8B4976B0E73876690A98F7"><enum>(ii)</enum><text>in the case of any tort
claim, the longer of—</text>
<subclause id="ID19BC725E3E114B49AE0CC6A380BC663B"><enum>(I)</enum><text>the 3-year period
beginning on the date on which the claim accrues; or</text>
</subclause><subclause id="ID6E5E496AB34547208B2AEF180D25E4F8"><enum>(II)</enum><text>the period applicable
under State law.</text>
</subclause></clause></subparagraph><subparagraph id="ID9DC76FE8103A49A5AA2F9A2CE75D094C"><enum>(B)</enum><header>Determination of the
date on which a claim accrues</header><text>For purposes of subparagraph (A),
the date on which the statute of limitations begins to run on any claim
described in such subparagraph shall be the later of—</text>
<clause id="IDE73EDCFCA1F3431EAFEA2BE88B2E00B9"><enum>(i)</enum><text>the date of the
appointment of the Agency as conservator or receiver; or</text>
</clause><clause id="ID414909C2743B40D1BA6C1A397371436E"><enum>(ii)</enum><text>the date on which the
cause of action accrues.</text>
</clause></subparagraph></paragraph><paragraph id="ID07C9EE9A46684530A9E7A57C7F6DD1D1"><enum>(13)</enum><header>Revival of expired
state causes of action</header>
<subparagraph id="ID666B472AED5141FFA124CE42316174AB"><enum>(A)</enum><header>In
general</header><text>In the case of any tort claim described under clause (ii)
for which the statute of limitations applicable under State law with respect to
such claim has expired not more than 5 years before the appointment of the
Agency as conservator or receiver, the Agency may bring an action as
conservator or receiver on such claim without regard to the expiration of the
statute of limitations applicable under State law.</text>
</subparagraph><subparagraph id="IDD64B094DE18949DB836550869AED134C"><enum>(B)</enum><header>Claims
described</header><text>A tort claim referred to under clause (i) is a claim
arising from fraud, intentional misconduct resulting in unjust enrichment, or
intentional misconduct resulting in substantial loss to the regulated
entity.</text>
</subparagraph></paragraph><paragraph id="IDD9590E00440340FF978B969F6E2939D7"><enum>(14)</enum><header>Accounting and
recordkeeping requirements</header>
<subparagraph id="ID695C57882578459682861F045DBE5D23"><enum>(A)</enum><header>In
general</header><text>The Agency as conservator or receiver shall, consistent
with the accounting and reporting practices and procedures established by the
Agency, maintain a full accounting of each conservatorship and receivership or
other disposition of a regulated entity in default.</text>
</subparagraph><subparagraph id="ID480B8E6E5F004F2193DCD8636EB259F0"><enum>(B)</enum><header>Annual accounting or
report</header><text>With respect to each conservatorship or receivership, the
Agency shall make an annual accounting or report available to the Board, the
Comptroller General of the United States, the Committee on Banking, Housing,
and Urban Affairs of the Senate, and the Committee on Financial Services of the
House of Representatives.</text>
</subparagraph><subparagraph id="ID5D1E266224A3470797A7F7D1E43FD2E8"><enum>(C)</enum><header>Availability of
reports</header><text>Any report prepared under subparagraph (B) shall be made
available by the Agency upon request to any shareholder of a regulated entity
or any member of the public.</text>
</subparagraph><subparagraph id="ID2307D2BCC4C148A9A852CCC6009BDF11"><enum>(D)</enum><header>Recordkeeping
requirement</header><text>After the end of the 6-year period beginning on the
date on which the conservatorship or receivership is terminated by the
Director, the Agency may destroy any records of such regulated entity which the
Agency, in the discretion of the Agency, determines to be unnecessary, unless
directed not to do so by a court of competent jurisdiction or governmental
agency, or prohibited by law.</text>
</subparagraph></paragraph><paragraph id="ID3A6AF698A92840368693DC593342835D"><enum>(15)</enum><header>Fraudulent
transfers</header>
<subparagraph id="IDEE308528C8084233A91F9209B3515FA0"><enum>(A)</enum><header>In
general</header><text>The Agency, as conservator or receiver, may avoid a
transfer of any interest of an entity-affiliated party, or any person
determined by the conservator or receiver to be a debtor of the regulated
entity, in property, or any obligation incurred by such party or person, that
was made within 5 years of the date on which the Agency was appointed
conservator or receiver, if such party or person voluntarily or involuntarily
made such transfer or incurred such liability with the intent to hinder, delay,
or defraud the regulated entity, the Agency, the conservator, or
receiver.</text>
</subparagraph><subparagraph id="IDD86D4666E8F64B3694C29C270A39FA1A"><enum>(B)</enum><header>Right of
recovery</header><text>To the extent a transfer is avoided under subparagraph
(A), the conservator or receiver may recover, for the benefit of the regulated
entity, the property transferred, or, if a court so orders, the value of such
property (at the time of such transfer) from—</text>
<clause id="IDE6B72FE7BE024FF892CF719EE3A9E72A"><enum>(i)</enum><text>the initial transferee of
such transfer or the entity-affiliated party or person for whose benefit such
transfer was made; or</text>
</clause><clause id="IDAB04F06F3523449AAFE2EE8FE4EE705C"><enum>(ii)</enum><text>any immediate or mediate
transferee of any such initial transferee.</text>
</clause></subparagraph><subparagraph id="ID58F421B6BD71408B9B7DE47D966DABA9"><enum>(C)</enum><header>Rights of transferee or
obligee</header><text>The conservator or receiver may not recover under
subparagraph (B) from—</text>
<clause id="ID06C3098FA07F489FA7924BE4DDBD75C1"><enum>(i)</enum><text>any transferee that takes
for value, including satisfaction or securing of a present or antecedent debt,
in good faith; or</text>
</clause><clause id="ID6A0125FFEDCD4FD9B1638B4A321EBA9A"><enum>(ii)</enum><text>any immediate or mediate
good faith transferee of such transferee.</text>
</clause></subparagraph><subparagraph id="IDA191B9E979EB4AF3AF05EE8BD22A46AC"><enum>(D)</enum><header>Rights under this
paragraph</header><text>The rights under this paragraph of the conservator or
receiver described under subparagraph (A) shall be superior to any rights of a
trustee or any other party (other than any party which is a Federal agency)
under title 11, United States Code.</text>
</subparagraph></paragraph><paragraph id="ID5C6B6BEBAB78463B9D09E7B37FE1E95C"><enum>(16)</enum><header>Attachment of assets
and other injunctive relief</header><text>Subject to paragraph (17), any court
of competent jurisdiction may, at the request of the conservator or receiver,
issue an order in accordance with rule 65 of the Federal Rules of Civil
Procedure, including an order placing the assets of any person designated by
the conservator or receiver under the control of the court, and appointing a
trustee to hold such assets.</text>
</paragraph><paragraph id="ID85D8D3F6C5124D80AE59113D38AB0BC9"><enum>(17)</enum><header>Standards of
proof</header><text>Rule 65 of the Federal Rules of Civil Procedure shall apply
with respect to any proceeding under paragraph (16) without regard to the
requirement of such rule that the applicant show that the injury, loss, or
damage is irreparable and immediate.</text>
</paragraph><paragraph id="IDD3DE6E86841941B7AD79B56194265959"><enum>(18)</enum><header>Treatment of claims
arising from breach of contracts executed by the conservator or
receiver</header>
<subparagraph id="IDF6702B28BB7A400081B049035205F398"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of this subsection,
any final and unappealable judgment for monetary damages entered against the
conservator or receiver for the breach of an agreement executed or approved in
writing by the conservator or receiver after the date of its appointment, shall
be paid as an administrative expense of the conservator or receiver.</text>
</subparagraph><subparagraph id="IDFB3D478CE20945E3BCE0161ED6799D32"><enum>(B)</enum><header>No limitation of
power</header><text>Nothing in this paragraph shall be construed to limit the
power of the conservator or receiver to exercise any rights under contract or
law, including to terminate, breach, cancel, or otherwise discontinue such
agreement.</text>
</subparagraph></paragraph><paragraph id="IDC68DBFA78FBC4912A43DAF7E20B47294"><enum>(19)</enum><header>General
exceptions</header>
<subparagraph id="IDF1EF443854C44D8D83848B035F2B4BD6"><enum>(A)</enum><header>Limitations</header><text>The
rights of the conservator or receiver appointed under this section shall be
subject to the limitations on the powers of a receiver under sections 402
through 407 of the Federal Deposit Insurance Corporation Improvement Act of
1991 (12 U.S.C. 4402 through 4407).</text>
</subparagraph><subparagraph id="ID03C9D40693944426BA185AAB129F0A4E"><enum>(B)</enum><header>Mortgages held in
trust</header>
<clause id="ID9F21A1973B044E50B92CB8611BB191E5"><enum>(i)</enum><header>In
general</header><text>Any mortgage, pool of mortgages, or interest in a pool of
mortgages held in trust, custodial, or agency capacity by a regulated entity
for the benefit of any person other than the regulated entity shall not be
available to satisfy the claims of creditors generally, except that nothing in
this clause shall be construed to expand or otherwise affect the authority of
any regulated entity.</text>
</clause><clause id="IDC46B97AE395A4C4D9E9EA049542CD486"><enum>(ii)</enum><header>Holding of
mortgages</header><text>Any mortgage, pool of mortgages, or interest in a pool
of mortgages described in clause (i) shall be held by the conservator or
receiver appointed under this section for the beneficial owners of such
mortgage, pool of mortgages, or interest in accordance with the terms of the
agreement creating such trust, custodial, or other agency arrangement.</text>
</clause><clause id="ID8C20CB3A698F43358F2217DF19A790D6"><enum>(iii)</enum><header>Liability of
conservator or receiver</header><text>The liability of the conservator or
receiver appointed under this section for damages shall, in the case of any
contingent or unliquidated claim relating to the mortgages held in trust, be
estimated in accordance with the regulations of the Director.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID16ADE9F69AA54F989E860155CF0160AB"><enum>(c)</enum><header>Priority of expenses
and unsecured claims</header>
<paragraph id="IDBA48303582A84B7F8F9C2DEA85CEE87B"><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="IDBB11F0285D484B10A2401D8753C886BC"><enum>(A)</enum><text>Administrative expenses
of the receiver.</text>
</subparagraph><subparagraph id="IDB0214098A7DE488FBC3703B5020466EB"><enum>(B)</enum><text>Any other general or
senior liability of the regulated entity (which is not a liability described
under subparagraph (C) or (D).</text>
</subparagraph><subparagraph id="IDA023EECEAF0B4C54A7B3B00128FD134D"><enum>(C)</enum><text>Any obligation
subordinated to general creditors (which is not an obligation described under
subparagraph (D)).</text>
</subparagraph><subparagraph id="ID9A9C8E6A6B8447838739188FA650559C"><enum>(D)</enum><text>Any obligation to
shareholders or members arising as a result of their status as shareholder or
members.</text>
</subparagraph></paragraph><paragraph id="IDE97CDE1A453C4812B55AA6839387701B"><enum>(2)</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="ID60554C9589B146618B2B3765DA434943"><enum>(A)</enum><text>the Director determines
that such action is necessary to maximize the value of the assets of the
regulated entity, to maximize the present value return from the sale or other
disposition of the assets of the regulated entity, or to minimize the amount of
any loss realized upon the sale or other disposition of the assets of the
regulated entity; and</text>
</subparagraph><subparagraph id="IDFAA56AE3BF304700AF877AC34B3945DA"><enum>(B)</enum><text>all creditors that are
similarly situated under paragraph (1) receive not less than the amount
provided in subsection (e)(2).</text>
</subparagraph></paragraph><paragraph id="ID35E7F9B6A67F489EAF34DCBC0A677A0B"><enum>(3)</enum><header>Definition</header><text>As
used in this subsection, the term <term>administrative expenses of the
receiver</term> includes—</text>
<subparagraph id="IDDE254587349549B2A04FD06B24C0D3EB"><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="ID1D5C048A40444B9892C042265FFB336E"><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><subsection id="ID4D2098BC37DE4DA4A4003D49EBFE5EC2"><enum>(d)</enum><header>Provisions relating to
contracts entered into before appointment of conservator or receiver</header>
<paragraph id="ID2A311BED02EF4E05B62916B3E65510FD"><enum>(1)</enum><header>Authority to repudiate
contracts</header><text>In addition to any other rights a conservator or
receiver may have, the conservator or receiver for any regulated entity may
disaffirm or repudiate any contract or lease—</text>
<subparagraph id="ID55026FBADCA04217AA346D8D3959CD2F"><enum>(A)</enum><text>to which such regulated
entity is a party;</text>
</subparagraph><subparagraph id="ID04D8EA9EC81F412DBA4B5461130667B6"><enum>(B)</enum><text>the performance of which
the conservator or receiver, in its sole discretion, determines to be
burdensome; and</text>
</subparagraph><subparagraph id="ID9FC155C071F74419AB92053B790A8475"><enum>(C)</enum><text>the disaffirmance or
repudiation of which the conservator or receiver determines, in its sole
discretion, will promote the orderly administration of the affairs of the
regulated entity.</text>
</subparagraph></paragraph><paragraph id="ID64A2CEACD815476B89ABD155926F1B2F"><enum>(2)</enum><header>Timing of
repudiation</header><text>The conservator or receiver shall determine whether
or not to exercise the rights of repudiation under this subsection within a
reasonable period following such appointment.</text>
</paragraph><paragraph id="ID583B51661FE34D6AB0B0938FE41E4FE3"><enum>(3)</enum><header>Claims for damages for
repudiation</header>
<subparagraph id="ID7C7B95C6B334408E855AB8BF9602504E"><enum>(A)</enum><header>In
general</header><text>Except as otherwise provided under subparagraph (C) and
paragraphs (4), (5), and (6), the liability of the conservator or receiver for
the disaffirmance or repudiation of any contract pursuant to paragraph (1)
shall be—</text>
<clause id="ID35F19F58AF1444518603EFA4ED9EFCD3"><enum>(i)</enum><text>limited to actual direct
compensatory damages; and</text>
</clause><clause id="IDF1D5D1B901724EC4ABF5270F7B7997CB"><enum>(ii)</enum><text>determined as of—</text>
<subclause id="ID9BDECC091D5740DAA8067F36991413C3"><enum>(I)</enum><text>the date of the
appointment of the conservator or receiver; or</text>
</subclause><subclause id="ID81A8CDAD49D942D185388863605C34B9"><enum>(II)</enum><text>in the case of any
contract or agreement referred to in paragraph (8), the date of the
disaffirmance or repudiation of such contract or agreement.</text>
</subclause></clause></subparagraph><subparagraph id="ID53E00F9F4AFE408796A9C10EC316067B"><enum>(B)</enum><header>No liability for other
damages</header><text>For purposes of subparagraph (A), the term <term>actual
direct compensatory damages</term> shall not include—</text>
<clause id="ID47E60D4A22CD4B0F996873072A5B3BAD"><enum>(i)</enum><text>punitive or exemplary
damages;</text>
</clause><clause id="IDB383D5DCEB784B0B984F79CFDECA12CC"><enum>(ii)</enum><text>damages for lost profits
or opportunity; or</text>
</clause><clause id="IDE2BA475D2BB445089E57EB89A5414B7D"><enum>(iii)</enum><text>damages for pain and
suffering.</text>
</clause></subparagraph><subparagraph id="ID50F51B466A4E4B7F8D3710218F0252D2"><enum>(C)</enum><header>Measure of damages for
repudiation of financial contracts</header><text>In the case of any qualified
financial contract or agreement to which paragraph (8) applies, compensatory
damages shall be—</text>
<clause id="IDD25E30E1C2AE442994D21E31CF81DA5E"><enum>(i)</enum><text>deemed to include normal
and reasonable costs of cover or other reasonable measures of damages utilized
in the industries for such contract and agreement claims; and</text>
</clause><clause id="ID7227162300034A0090AF01C14B9BD6AE"><enum>(ii)</enum><text>paid in accordance with
this subsection and subsection (e), except as otherwise specifically provided
in this section.</text>
</clause></subparagraph></paragraph><paragraph id="IDB0593BE1030C44EF920143C073F0DE41"><enum>(4)</enum><header>Leases under which the
regulated entity is the lessee</header>
<subparagraph id="IDF851CA8E31F1499A84451DED1F74383A"><enum>(A)</enum><header>In
general</header><text>If the conservator or receiver disaffirms or repudiates a
lease under which the regulated entity was the lessee, the conservator or
receiver shall not be liable for any damages (other than damages determined
under subparagraph (B)) for the disaffirmance or repudiation of such
lease.</text>
</subparagraph><subparagraph id="ID9EE8AC2963174AFB8B606C382775DB4B"><enum>(B)</enum><header>Payments of
rent</header><text>Notwithstanding subparagraph (A), the lessor under a lease
to which that subparagraph applies shall—</text>
<clause id="IDC13BAE2EC7F44D3AA4C795C27EED68B8"><enum>(i)</enum><text>be entitled to the
contractual rent accruing before the later of the date on which—</text>
<subclause id="ID2034AE669AEC4423929CE2159F0D35D4"><enum>(I)</enum><text>the notice of
disaffirmance or repudiation is mailed; or</text>
</subclause><subclause id="IDC6789A2F20934BA2873684D0D7EA9079"><enum>(II)</enum><text>the disaffirmance or
repudiation becomes effective, unless the lessor is in default or breach of the
terms of the lease;</text>
</subclause></clause><clause id="IDCBB5CBCB027F490D8D0F5F3F9434EDF4"><enum>(ii)</enum><text>have no claim for
damages under any acceleration clause or other penalty provision in the lease;
and</text>
</clause><clause id="IDD23BB79DBCAC406980E4C90CD55BE4C4"><enum>(iii)</enum><text>have a claim for any
unpaid rent, subject to all appropriate offsets and defenses, due as of the
date of the appointment, which shall be paid in accordance with this subsection
and subsection (e).</text>
</clause></subparagraph></paragraph><paragraph id="IDEC35AD315FC54980956B0A8471CEECA0"><enum>(5)</enum><header>Leases under which the
regulated entity is the lessor</header>
<subparagraph id="IDF042E66B28CE44B9AE0037DA0ABB8A7F"><enum>(A)</enum><header>In
general</header><text>If the conservator or receiver repudiates an unexpired
written lease of real property of the regulated entity under which the
regulated entity is the lessor and the lessee is not, as of the date of such
repudiation, in default, the lessee under such lease may either—</text>
<clause id="IDE7B341EF5ECA4DF6B057FFEA921FB9BA"><enum>(i)</enum><text>treat the lease as
terminated by such repudiation; or</text>
</clause><clause id="ID37E395CA590E4B498F31838386D86936"><enum>(ii)</enum><text>remain in possession of
the leasehold interest for the balance of the term of the lease, unless the
lessee defaults under the terms of the lease after the date of such
repudiation.</text>
</clause></subparagraph><subparagraph id="ID7ACEDE8EB4C6466B95336D7EF18899A5"><enum>(B)</enum><header>Provisions applicable
to lessee remaining in possession</header><text>If any lessee under a lease
described under subparagraph (A) remains in possession of a leasehold interest
under clause (ii) of subparagraph (A)—</text>
<clause id="IDF10D0221775245D7BE0A7D8A40748CB0"><enum>(i)</enum><text>the lessee—</text>
<subclause id="ID172955F06D0743C0AA6BB4AEECA7717E"><enum>(I)</enum><text>shall continue to pay the
contractual rent pursuant to the terms of the lease after the date of the
repudiation of such lease; and</text>
</subclause><subclause id="ID8A41800D051C4278980B1861C4E87569"><enum>(II)</enum><text>may offset against any
rent payment which accrues after the date of the repudiation of the lease, and
any damages which accrue after such date due to the nonperformance of any
obligation of the regulated entity under the lease after such date; and</text>
</subclause></clause><clause id="IDB9A9B5D034D24C89B03C121CE7443DBB"><enum>(ii)</enum><text>the conservator or
receiver shall not be liable to the lessee for any damages arising after such
date as a result of the repudiation, other than the amount of any offset
allowed under clause (i)(II).</text>
</clause></subparagraph></paragraph><paragraph id="ID0030B998F55A488CB4F5D013E4EEB131"><enum>(6)</enum><header>Contracts for the sale
of real property</header>
<subparagraph id="ID2A2BE559FE824B1A8FC6214685191BE6"><enum>(A)</enum><header>In
general</header><text>If the conservator or receiver repudiates any contract
for the sale of real property and the purchaser of such real property under
such contract is in possession, and is not, as of the date of such repudiation,
in default, such purchaser may either—</text>
<clause id="ID965866B1386646C9BA284A289D93ABCC"><enum>(i)</enum><text>treat the contract as
terminated by such repudiation; or</text>
</clause><clause id="IDFB14F29B3B654127A606D7924BAC7E2C"><enum>(ii)</enum><text>remain in possession of
such real property.</text>
</clause></subparagraph><subparagraph id="ID3A959A3187F846EEB80B613EF1142D1C"><enum>(B)</enum><header>Provisions applicable
to purchaser remaining in possession</header><text>If any purchaser of real
property under any contract described under subparagraph (A) remains in
possession of such property under clause (ii) of subparagraph (A)—</text>
<clause id="IDFEBED28B176243EF83E6069D37926D29"><enum>(i)</enum><text>the purchaser—</text>
<subclause id="ID08A967AD5327453F967C817AFCF8A76C"><enum>(I)</enum><text>shall continue to make
all payments due under the contract after the date of the repudiation of the
contract; and</text>
</subclause><subclause id="IDA277322582BC46E7BB2F75EB7712623A"><enum>(II)</enum><text>may offset against any
such payments any damages which accrue after such date due to the
nonperformance (after such date) of any obligation of the regulated entity
under the contract; and</text>
</subclause></clause><clause id="IDF25B5E837E9B4A098C9F47B0161CFE16"><enum>(ii)</enum><text>the conservator or
receiver shall—</text>
<subclause id="IDECD4B9CFBAEA4672A6E049481E0C7F4F"><enum>(I)</enum><text>not be liable to the
purchaser for any damages arising after such date as a result of the
repudiation, other than the amount of any offset allowed under clause
(i)(II);</text>
</subclause><subclause id="ID0986B5B5396E480F904B9039AD644F28"><enum>(II)</enum><text>deliver title to the
purchaser in accordance with the provisions of the contract; and</text>
</subclause><subclause id="IDDB349018FDE44467BB1AEE7B05DD6847"><enum>(III)</enum><text>have no obligation
under the contract other than the performance required under subclause
(II).</text>
</subclause></clause></subparagraph><subparagraph id="IDF1A52FD414044EB9BCBEBBF84D3B409D"><enum>(C)</enum><header>Assignment and sale
allowed</header>
<clause id="ID96733EA1119D4991813D95A3004CC328"><enum>(i)</enum><header>In
general</header><text>No provision of this paragraph shall be construed as
limiting the right of the conservator or receiver to assign the contract
described under subparagraph (A), and sell the property subject to the contract
and the provisions of this paragraph.</text>
</clause><clause id="IDA4E76B7469DF43F5866D1D0F15CF71A6"><enum>(ii)</enum><header>No liability after
assignment and sale</header><text>If an assignment and sale described under
clause (i) is consummated, the conservator or receiver shall have no further
liability under the contract described under subparagraph (A), or with respect
to the real property which was the subject of such contract.</text>
</clause></subparagraph></paragraph><paragraph id="ID00AF423E33CA40E8943F6D59B99530DC"><enum>(7)</enum><header>Service
contracts</header>
<subparagraph id="IDC923EC7B6B804FB6A784CEE7C7E62D05"><enum>(A)</enum><header>Services performed
before appointment</header><text>In the case of any contract for services
between any person and any regulated entity for which the Agency has been
appointed conservator or receiver, any claim of such person for services
performed before the appointment of the conservator or receiver shall
be—</text>
<clause id="ID367BB4594FD948CFA687978AA437996C"><enum>(i)</enum><text>a claim to be paid in
accordance with subsections (b) and (e); and</text>
</clause><clause id="IDC0E85E24784243D1965BE2741EC8892A"><enum>(ii)</enum><text>deemed to have arisen as
of the date on which the conservator or receiver was appointed.</text>
</clause></subparagraph><subparagraph id="ID6332174537024919AB16064CE88A6BF1"><enum>(B)</enum><header>Services performed
after appointment and prior to repudiation</header><text>If, in the case of any
contract for services described under subparagraph (A), the conservator or
receiver accepts performance by the other person before the conservator or
receiver makes any determination to exercise the right of repudiation of such
contract under this section—</text>
<clause id="ID9AA4F4265851407AAC9B2EFD97186226"><enum>(i)</enum><text>the other party shall be
paid under the terms of the contract for the services performed; and</text>
</clause><clause id="ID0E86633DADD04C42B0509F6DE617A0C1"><enum>(ii)</enum><text>the amount of such
payment shall be treated as an administrative expense of the conservatorship or
receivership.</text>
</clause></subparagraph><subparagraph id="ID00C4A8EE94D1443093EF2150E8FB51CC"><enum>(C)</enum><header>Acceptance of
performance no bar to subsequent repudiation</header><text>The acceptance by
the conservator or receiver of services referred to under subparagraph (B) in
connection with a contract described in such subparagraph shall not affect the
right of the conservator or receiver to repudiate such contract under this
section at any time after such performance.</text>
</subparagraph></paragraph><paragraph id="IDFE5C9B33DB5746D5AAFE9880354EFE76"><enum>(8)</enum><header>Certain qualified
financial contracts</header>
<subparagraph id="IDFA950D264F454B6B98F9F36E0517EADE"><enum>(A)</enum><header>Rights of parties to
contracts</header><text>Subject to paragraphs (9) and (10), and notwithstanding
any other provision of this title (other than subsection (b)(9)(B) of this
section), any other Federal law, or the law of any State, no person shall be
stayed or prohibited from exercising—</text>
<clause id="ID0CB49CE252E24CC6B7527222D07EBCF7"><enum>(i)</enum><text>any right of that person
to cause the termination, liquidation, or acceleration of any qualified
financial contract with a regulated entity that arises upon the appointment of
the Agency as receiver for such regulated entity at any time after such
appointment;</text>
</clause><clause id="ID0C5C3187AEB5409485778715AD88D31C"><enum>(ii)</enum><text>any right under any
security agreement or arrangement or other credit enhancement relating to one
or more qualified financial contracts; or</text>
</clause><clause id="IDBAC0979CD2AF4B35B2A8D9A877DF6683"><enum>(iii)</enum><text>any right to offset or
net out any termination value, payment amount, or other transfer obligation
arising under or in connection with 1 or more contracts and agreements
described in clause (i), including any master agreement for such contracts or
agreements.</text>
</clause></subparagraph><subparagraph id="ID81F941089FBD46B99C2FF03C8A0733DA"><enum>(B)</enum><header>Applicability of other
provisions</header><text>Subsection (b)(10) shall apply in the case of any
judicial action or proceeding brought against any receiver referred to under
subparagraph (A), or the regulated entity for which such receiver was
appointed, by any party to a contract or agreement described under subparagraph
(A)(i) with such regulated entity.</text>
</subparagraph><subparagraph id="IDEADA5B54EA4641A4B6C25C4AAB60788A"><enum>(C)</enum><header>Certain transfers not
avoidable</header>
<clause id="IDFE3FB9B6302346259C569CF2A34AA96D"><enum>(i)</enum><header>In
general</header><text>Notwithstanding paragraph (11), or any other provision of
Federal or State law relating to the avoidance of preferential or fraudulent
transfers, the Agency, whether acting as such or as conservator or receiver of
a regulated entity, may not avoid any transfer of money or other property in
connection with any qualified financial contract with a regulated
entity.</text>
</clause><clause id="ID21DB95848FB74BA7919586929E2CB57A"><enum>(ii)</enum><header>Exception for certain
transfers</header><text>Clause (i) shall not apply to any transfer of money or
other property in connection with any qualified financial contract with a
regulated entity if the Agency determines that the transferee had actual intent
to hinder, delay, or defraud such regulated entity, the creditors of such
regulated entity, or any conservator or receiver appointed for such regulated
entity.</text>
</clause></subparagraph><subparagraph id="IDAED9B21AAA7C44D1B26A3350A546DB98"><enum>(D)</enum><header>Certain contracts and
agreements defined</header><text>In this subsection the following definitions
shall apply:</text>
<clause id="ID1C8B8A2D6E7D4129AC2D080658A963D5"><enum>(i)</enum><header>Qualified financial
contract</header><text>The term <term>qualified financial contract</term> means
any securities contract, commodity contract, forward contract, repurchase
agreement, swap agreement, and any similar agreement that the Agency determines
by regulation, resolution, or order to be a qualified financial contract for
purposes of this paragraph.</text>
</clause><clause id="IDECC53801C02544D5A88B6F50A11293D3"><enum>(ii)</enum><header>Securities
contract</header><text>The term <term>securities contract</term>—</text>
<subclause id="ID5678820C758547ECA799AFA08984DB4A"><enum>(I)</enum><text>means a contract for the
purchase, sale, or loan of a security, a certificate of deposit, a mortgage
loan, or any interest in a mortgage loan, a group or index of securities,
certificates of deposit, or mortgage loans or interests therein (including any
interest therein or based on the value thereof) or any option on any of the
foregoing, including any option to purchase or sell any such security,
certificate of deposit, mortgage loan, interest, group or index, or option, and
including any repurchase or reverse repurchase transaction on any such
security, certificate of deposit, mortgage loan, interest, group or index, or
option;</text>
</subclause><subclause id="ID317C46A928CE49B79C62AF6CD3AAD776"><enum>(II)</enum><text>does not include any
purchase, sale, or repurchase obligation under a participation in a commercial
mortgage loan, unless the Agency determines by regulation, resolution, or order
to include any such agreement within the meaning of such term;</text>
</subclause><subclause id="ID6FF0D0C673B0497B806F51FD058A2FC6"><enum>(III)</enum><text>means any option
entered into on a national securities exchange relating to foreign
currencies;</text>
</subclause><subclause id="ID73B3D064463C4F4AB7A3B7088DE31D6C"><enum>(IV)</enum><text>means the guarantee by
or to any securities clearing agency of any settlement of cash, securities,
certificates of deposit, mortgage loans or interests therein, group or index of
securities, certificates of deposit, or mortgage loans or interests therein
(including any interest therein or based on the value thereof) or option on any
of the foregoing, including any option to purchase or sell any such security,
certificate of deposit, mortgage loan, interest, group or index, or
option;</text>
</subclause><subclause id="ID970F8DF9220F41FAA89E7FF0B9372C5B"><enum>(V)</enum><text>means any margin
loan;</text>
</subclause><subclause id="ID8CD877EC813443A7A2167A86FBDC3DF6"><enum>(VI)</enum><text>means any other
agreement or transaction that is similar to any agreement or transaction
referred to in this clause;</text>
</subclause><subclause id="ID9E05A1B0C1A943009F8A56DDD39AFDCD"><enum>(VII)</enum><text>means any combination
of the agreements or transactions referred to in this clause;</text>
</subclause><subclause id="ID3F3169D5DBF94478BE2111A9FECC5DED"><enum>(VIII)</enum><text>means any option to
enter into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="ID8D00D1EDE9E244FFA088673066C60CAB"><enum>(IX)</enum><text>means a master agreement
that provides for an agreement or transaction referred to in subclause (I),
(III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any
such master agreement, without regard to whether the master agreement provides
for an agreement or transaction that is not a securities contract under this
clause, except that the master agreement shall be considered to be a securities
contract under this clause only with respect to each agreement or transaction
under the master agreement that is referred to in subclause (I), (III), (IV),
(V), (VI), (VII), or (VIII); and</text>
</subclause><subclause id="IDCFE9385D43F947818D0C55B60BEC48D5"><enum>(X)</enum><text>means any security
agreement or arrangement or other credit enhancement related to any agreement
or transaction referred to in this clause, including any guarantee or
reimbursement obligation in connection with any agreement or transaction
referred to in this clause.</text>
</subclause></clause><clause id="ID1DDB7099CD844448A2C821B67C7D7B92"><enum>(iii)</enum><header>Commodity
contract</header><text>The term <term>commodity contract</term> means—</text>
<subclause id="ID339DB86B4C934BCE8B3590902B6F84A1"><enum>(I)</enum><text>with respect to a futures
commission merchant, a contract for the purchase or sale of a commodity for
future delivery on, or subject to the rules of, a contract market or board of
trade;</text>
</subclause><subclause id="ID851482BCCD714C909EF0BEF45AA5C3CA"><enum>(II)</enum><text>with respect to a
foreign futures commission merchant, a foreign future;</text>
</subclause><subclause id="ID23A1EE36C6A947C6A8EBEC31638D20FB"><enum>(III)</enum><text>with respect to a
leverage transaction merchant, a leverage transaction;</text>
</subclause><subclause id="ID03B65A2C21AB46FBAD3382751BCFE844"><enum>(IV)</enum><text>with respect to a
clearing organization, a contract for the purchase or sale of a commodity for
future delivery on, or subject to the rules of, a contract market or board of
trade that is cleared by such clearing organization, or commodity option traded
on, or subject to the rules of, a contract market or board of trade that is
cleared by such clearing organization;</text>
</subclause><subclause id="ID15B61C5EC6124C68AAF1DBCF40E8AEA8"><enum>(V)</enum><text>with respect to a
commodity options dealer, a commodity option;</text>
</subclause><subclause id="ID632F6814601A47349CF15FDEABBC7142"><enum>(VI)</enum><text>any other agreement or
transaction that is similar to any agreement or transaction referred to in this
clause;</text>
</subclause><subclause id="ID540C2B133CBB41F883ACFC8FF6D1F50A"><enum>(VII)</enum><text>any combination of the
agreements or transactions referred to in this clause;</text>
</subclause><subclause id="IDDF7E60F4FE884CEF933D9A5424174118"><enum>(VIII)</enum><text>any option to enter
into any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="ID612B0BB26A4F44D7AAADC761880CF271"><enum>(IX)</enum><text>a master agreement that
provides for an agreement or transaction referred to in subclause (I), (II),
(III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to any
such master agreement, without regard to whether the master agreement provides
for an agreement or transaction that is not a commodity contract under this
clause, except that the master agreement shall be considered to be a commodity
contract under this clause only with respect to each agreement or transaction
under the master agreement that is referred to in subclause (I), (II), (III),
(IV), (V), (VI), (VII), or (VIII); or</text>
</subclause><subclause id="IDF16F3D3F80C14F8FB77136367D664DED"><enum>(X)</enum><text>any security agreement or
arrangement or other credit enhancement related to any agreement or transaction
referred to in this clause, including any guarantee or reimbursement obligation
in connection with any agreement or transaction referred to in this
clause.</text>
</subclause></clause><clause id="IDDBB28F46E29043A9838B5CEF6689F33F"><enum>(iv)</enum><header>Forward
contract</header><text>The term <term>forward contract</term> means—</text>
<subclause id="IDEF1EBA3E8F204AA3842014753C0D4AEB"><enum>(I)</enum><text>a contract (other than a
commodity contract) for the purchase, sale, or transfer of a commodity or any
similar good, article, service, right, or interest which is presently or in the
future becomes the subject of dealing in the forward contract trade, or product
or byproduct thereof, with a maturity date more than 2 days after the date on
which the contract is entered into, including a repurchase transaction, reverse
repurchase transaction, consignment, lease, swap, hedge transaction, deposit,
loan, option, allocated transaction, unallocated transaction, or any other
similar agreement;</text>
</subclause><subclause id="IDC03C1AC9312643F587045E98657AD9F3"><enum>(II)</enum><text>any combination of
agreements or transactions referred to in subclauses (I) and (III);</text>
</subclause><subclause id="ID16604E0AC693492EBB7A96FD9790FF44"><enum>(III)</enum><text>any option to enter
into any agreement or transaction referred to in subclause (I) or (II);</text>
</subclause><subclause id="ID016CDB19B7E94B7AB80A39FC4F0A7253"><enum>(IV)</enum><text>a master agreement that
provides for an agreement or transaction referred to in subclauses (I), (II),
or (III), together with all supplements to any such master agreement, without
regard to whether the master agreement provides for an agreement or transaction
that is not a forward contract under this clause, except that the master
agreement shall be considered to be a forward contract under this clause only
with respect to each agreement or transaction under the master agreement that
is referred to in subclause (I), (II), or (III); or</text>
</subclause><subclause id="ID2E89F0C76F904911815BF07FE6C89D49"><enum>(V)</enum><text>any security agreement or
arrangement or other credit enhancement related to any agreement or transaction
referred to in subclause (I), (II), (III), or (IV), including any guarantee or
reimbursement obligation in connection with any agreement or transaction
referred to in any such subclause.</text>
</subclause></clause><clause id="IDB04A37A5E2624BD59C6FBB393B7821B7"><enum>(v)</enum><header>Repurchase
agreement</header><text>The term <term>repurchase agreement</term> (including a
reverse repurchase agreement)—</text>
<subclause id="ID265EC7DAFEA54AF7AF528B02B5BE1AAF"><enum>(I)</enum><text>means an agreement,
including related terms, which provides for the transfer of one or more
certificates of deposit, mortgage-related securities (as such term is defined
in section 3 of the Securities Exchange Act of 1934), mortgage loans, interests
in mortgage-related securities or mortgage loans, eligible bankers'
acceptances, qualified foreign government securities (defined for purposes of
this clause as a security that is a direct obligation of, or that is fully
guaranteed by, the central government of a member of the Organization for
Economic Cooperation and Development, as determined by regulation or order
adopted by the appropriate Federal banking authority), or securities that are
direct obligations of, or that are fully guaranteed by, the United States or
any agency of the United States against the transfer of funds by the transferee
of such certificates of deposit, eligible bankers' acceptances, securities,
mortgage loans, or interests with a simultaneous agreement by such transferee
to transfer to the transferor thereof certificates of deposit, eligible
bankers' acceptances, securities, mortgage loans, or interests as described
above, at a date certain not later than 1 year after such transfers or on
demand, against the transfer of funds, or any other similar agreement;</text>
</subclause><subclause id="ID9855995F974547EBB93BB3D9E4E4AAC4"><enum>(II)</enum><text>does not include any
repurchase obligation under a participation in a commercial mortgage loan,
unless the Agency determines by regulation, resolution, or order to include any
such participation within the meaning of such term;</text>
</subclause><subclause id="ID68871E6A71D8438C8A3FEFF906423901"><enum>(III)</enum><text>means any combination
of agreements or transactions referred to in subclauses (I) and (IV);</text>
</subclause><subclause id="ID9E8D33E47FAD47E1BA07BF3854C1F9BE"><enum>(IV)</enum><text>means any option to
enter into any agreement or transaction referred to in subclause (I) or
(III);</text>
</subclause><subclause id="ID69D4714FEA334911ACEEEB418BBE5B0A"><enum>(V)</enum><text>means a master agreement
that provides for an agreement or transaction referred to in subclause (I),
(III), or (IV), together with all supplements to any such master agreement,
without regard to whether the master agreement provides for an agreement or
transaction that is not a repurchase agreement under this clause, except that
the master agreement shall be considered to be a repurchase agreement under
this subclause only with respect to each agreement or transaction under the
master agreement that is referred to in subclause (I), (III), or (IV);
and</text>
</subclause><subclause id="ID5ECF3C5B255A480C999F6E2BD2341457"><enum>(VI)</enum><text>means any security
agreement or arrangement or other credit enhancement related to any agreement
or transaction referred to in subclause (I), (III), (IV), or (V), including any
guarantee or reimbursement obligation in connection with any agreement or
transaction referred to in any such subclause.</text>
</subclause></clause><clause id="IDBA86957EA9CA44A699B347AFB21CE2E9"><enum>(vi)</enum><header>Swap
agreement</header><text>The term <term>swap agreement</term> means—</text>
<subclause id="IDA6E8A1772B2D4DD6A86E550FAB79410B"><enum>(I)</enum><text>any agreement, including
the terms and conditions incorporated by reference in any such agreement, which
is an interest rate swap, option, future, or forward agreement, including a
rate floor, rate cap, rate collar, cross-currency rate swap, and basis swap; a
spot, same day-tomorrow, tomorrow-next, forward, or other foreign exchange or
precious metals agreement; a currency swap, option, future, or forward
agreement; an equity index or equity swap, option, future, or forward
agreement; a debt index or debt swap, option, future, or forward agreement; a
total return, credit spread or credit swap, option, future, or forward
agreement; a commodity index or commodity swap, option, future, or forward
agreement; or a weather swap, weather derivative, or weather option;</text>
</subclause><subclause id="IDB22D49A7EBBD42B39CB4D6CF96C0993D"><enum>(II)</enum><text>any agreement or
transaction that is similar to any other agreement or transaction referred to
in this clause and that is of a type that has been, is presently, or in the
future becomes, the subject of recurrent dealings in the swap markets
(including terms and conditions incorporated by reference in such agreement)
and that is a forward, swap, future, or option on one or more rates,
currencies, commodities, equity securities or other equity instruments, debt
securities or other debt instruments, quantitative measures associated with an
occurrence, extent of an occurrence, or contingency associated with a
financial, commercial, or economic consequence, or economic or financial
indices or measures of economic or financial risk or value;</text>
</subclause><subclause id="ID02FC85C1CF784B0F8F84649161FF9190"><enum>(III)</enum><text>any combination of
agreements or transactions referred to in this clause;</text>
</subclause><subclause id="IDF9069F371481491F8B2FF121AAC97F65"><enum>(IV)</enum><text>any option to enter into
any agreement or transaction referred to in this clause;</text>
</subclause><subclause id="IDFF55D31F07F043E99C1A58E988BD87FD"><enum>(V)</enum><text>a master agreement that
provides for an agreement or transaction referred to in subclause (I), (II),
(III), or (IV), together with all supplements to any such master agreement,
without regard to whether the master agreement contains an agreement or
transaction that is not a swap agreement under this clause, except that the
master agreement shall be considered to be a swap agreement under this clause
only with respect to each agreement or transaction under the master agreement
that is referred to in subclause (I), (II), (III), or (IV); and</text>
</subclause><subclause id="IDEF685B7F58EC48F8B9D3FA023B9D5B47"><enum>(VI)</enum><text>any security agreement
or arrangement or other credit enhancement related to any agreements or
transactions referred to in subclause (I), (II), (III), (IV), or (V), including
any guarantee or reimbursement obligation in connection with any agreement or
transaction referred to in any such subclause.</text>
</subclause></clause><clause id="IDC71EB0C028D34689AADF73BDF5A5C10F"><enum>(vii)</enum><header>Treatment of master
agreement as one agreement</header><text>Any master agreement for any contract
or agreement described in any preceding clause of this subparagraph (or any
master agreement for such master agreement or agreements), together with all
supplements to such master agreement, shall be treated as a single agreement
and a single qualified financial contract. If a master agreement contains
provisions relating to agreements or transactions that are not themselves
qualified financial contracts, the master agreement shall be deemed to be a
qualified financial contract only with respect to those transactions that are
themselves qualified financial contracts.</text>
</clause><clause id="ID54D6A24978A44F458CD97E27D38470BE"><enum>(viii)</enum><header>Transfer</header><text>The
term <term>transfer</term> means every mode, direct or indirect, absolute or
conditional, voluntary or involuntary, of disposing of or parting with property
or with an interest in property, including retention of title as a security
interest and foreclosure of the equity of redemption of the regulated
entity.</text>
</clause></subparagraph><subparagraph id="ID973F6D79B17B4C8C9F2AEC5382614B20"><enum>(E)</enum><header>Certain protections in
event of appointment of conservator</header><text>Notwithstanding any other
provision of this section, any other Federal law, or the law of any State
(other than paragraph (10) of this subsection and subsection (b)(9)(B)), no
person shall be stayed or prohibited from exercising—</text>
<clause id="ID568EA3251455406890A84391FC40E29B"><enum>(i)</enum><text>any right such person has
to cause the termination, liquidation, or acceleration of any qualified
financial contract with a regulated entity in a conservatorship based upon a
default under such financial contract which is enforceable under applicable
noninsolvency law;</text>
</clause><clause id="ID3EE4687360C44BE381BD415B78CED403"><enum>(ii)</enum><text>any right under any
security agreement or arrangement or other credit enhancement relating to 1 or
more such qualified financial contracts; or</text>
</clause><clause id="IDCD084C05C6EB48519B8BDB4C32999719"><enum>(iii)</enum><text>any right to offset or
net out any termination values, payment amounts, or other transfer obligations
arising under or in connection with such qualified financial contracts.</text>
</clause></subparagraph><subparagraph id="IDD0E65679AC374F65B4513A01D9D695DA"><enum>(F)</enum><header>Clarification</header><text>No
provision of law shall be construed as limiting the right or power of the
Agency, or authorizing any court or agency to limit or delay in any manner, the
right or power of the Agency to transfer any qualified financial contract in
accordance with paragraphs (9) and (10), or to disaffirm or repudiate any such
contract in accordance with subsection (d)(1).</text>
</subparagraph><subparagraph id="IDB17FFF1578F3477483A997F86A25ADCB"><enum>(G)</enum><header>Walkaway clauses not
effective</header>
<clause id="ID8E7E4A09485140168ADD29954512923D"><enum>(i)</enum><header>In
general</header><text>Notwithstanding the provisions of subparagraphs (A) and
(E), and sections 403 and 404 of the Federal Deposit Insurance Corporation
Improvement Act of 1991, no walkaway clause shall be enforceable in a qualified
financial contract of a regulated entity in default.</text>
</clause><clause id="IDEA235BBAD73A47669B8261DB67A45DE5"><enum>(ii)</enum><header>Walkaway clause
defined</header><text>For purposes of this subparagraph, the term
<term>walkaway clause</term> means a provision in a qualified financial
contract that, after calculation of a value of a party's position or an amount
due to or from 1 of the parties in accordance with its terms upon termination,
liquidation, or acceleration of the qualified financial contract, either does
not create a payment obligation of a party or extinguishes a payment obligation
of a party in whole or in part solely because of the status of such party as a
nondefaulting party.</text>
</clause></subparagraph></paragraph><paragraph id="ID69B9ECBB7AD24174BFA7AAB7BDBE828E"><enum>(9)</enum><header>Transfer of qualified
financial contracts</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>
<subparagraph id="IDDAFBBC52287748A185286628E833990C"><enum>(A)</enum><text>transfer to 1
person—</text>
<clause id="ID7ECE8134106A46EFBA6424577A5C3331"><enum>(i)</enum><text>all qualified financial
contracts between any person (or any affiliate of such person) and the
regulated entity in default;</text>
</clause><clause id="IDDA897576066C45B797E377F9757D5AFC"><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>
</clause><clause id="IDB3D2A22F448D4D32A599500C7B1F9B09"><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>
</clause><clause id="ID0FDAC8FF4BE347CBB76B37FE5B9AF66A"><enum>(iv)</enum><text>all property securing,
or any other credit enhancement for any contract described in clause (i), or
any claim described in clause (ii) or (iii) under any such contract; or</text>
</clause></subparagraph><subparagraph id="IDE00E229EABC044B0B8FC5D9556A456B0"><enum>(B)</enum><text>transfer none of the
financial contracts, claims, or property referred to under subparagraph (A)
(with respect to such person and any affiliate of such person).</text>
</subparagraph></paragraph><paragraph id="ID4F54F15A6FAF43FBB5C2ADEC79E25A7A"><enum>(10)</enum><header>Notification of
transfer</header>
<subparagraph id="ID85A0EA83E05C43D8831051B9BF109E26"><enum>(A)</enum><header>In
general</header><text>The conservator or receiver shall notify any person that
is a party to a contract or transfer by 5:00 p.m. (Eastern Standard Time) on
the business day following the date of the appointment of the receiver in the
case of a receivership, or the business day following such transfer in the case
of a conservatorship, if—</text>
<clause id="IDD62849653EEF4F379A18C34F85AA9736"><enum>(i)</enum><text>the conservator or
receiver for a regulated entity in default makes any transfer of the assets and
liabilities of such regulated entity; and</text>
</clause><clause id="IDC8A750E3A0B845E082E39F4580424816"><enum>(ii)</enum><text>such transfer includes
any qualified financial contract.</text>
</clause></subparagraph><subparagraph id="ID7C78E090EBE642FB86239D95E4B1ABE7"><enum>(B)</enum><header>Certain rights not
enforceable</header>
<clause id="IDAFD10FD5059340099DF3B19EA2AD2A8E"><enum>(i)</enum><header>Receivership</header><text>A
person who is a party to a qualified financial contract with a regulated entity
may not exercise any right that such person has to terminate, liquidate, or net
such contract under paragraph (8)(A) of this subsection or under section 403 or
404 of the Federal Deposit Insurance Corporation Improvement Act of 1991,
solely by reason of or incidental to the appointment of a receiver for the
regulated entity (or the insolvency or financial condition of the regulated
entity for which the receiver has been appointed)—</text>
<subclause id="IDCC4F622DEA4542FD84612D1906EC9C98"><enum>(I)</enum><text>until 5:00 p.m. (Eastern
Standard Time) on the business day following the date of the appointment of the
receiver; or</text>
</subclause><subclause id="IDFF7A16AEB6BC4CB695E74EC4BBD43F0D"><enum>(II)</enum><text>after the person has
received notice that the contract has been transferred pursuant to paragraph
(9)(A).</text>
</subclause></clause><clause id="IDCDD4D5EB1FC3410BBE15DDA1A2ACB0F4"><enum>(ii)</enum><header>Conservatorship</header><text>A
person who is a party to a qualified financial contract with a regulated entity
may not exercise any right that such person has to terminate, liquidate, or net
such contract under paragraph (8)(E) of this subsection or under section 403 or
404 of the Federal Deposit Insurance Corporation Improvement Act of 1991,
solely by reason of or incidental to the appointment of a conservator for the
regulated entity (or the insolvency or financial condition of the regulated
entity for which the conservator has been appointed).</text>
</clause><clause id="IDEA155FFC62A64E58A5527F4D27F20BF4"><enum>(iii)</enum><header>Notice</header><text>For
purposes of this paragraph, the conservator or receiver of a regulated entity
shall be deemed to have notified a person who is a party to a qualified
financial contract with such regulated entity, if the conservator or receiver
has taken steps reasonably calculated to provide notice to such person by the
time specified in subparagraph (A).</text>
</clause></subparagraph><subparagraph id="ID7D03256C60BE4DB09D87B97E10B5FF81"><enum>(C)</enum><header>Business day
defined</header><text>For purposes of this paragraph, the term <term>business
day</term> means any day other than any Saturday, Sunday, or any day on which
either the New York Stock Exchange or the Federal Reserve Bank of New York is
closed.</text>
</subparagraph></paragraph><paragraph id="ID0CCA082A8E4F4847A138240E12191D1E"><enum>(11)</enum><header>Disaffirmance or
repudiation of qualified financial contracts</header><text>In exercising the
rights of disaffirmance or repudiation of a conservator or receiver with
respect to any qualified financial contract to which a regulated entity is a
party, the conservator or receiver for such institution shall either—</text>
<subparagraph id="ID1AD29DA4F6034AB1A110ACE61BD64FD6"><enum>(A)</enum><text>disaffirm or repudiate
all qualified financial contracts between—</text>
<clause id="ID606BDC9A9B6240BAB7C1380303AE0F23"><enum>(i)</enum><text>any person or any
affiliate of such person; and</text>
</clause><clause id="ID9DE556630D654E8F8F616964DA8780A8"><enum>(ii)</enum><text>the regulated entity in
default; or</text>
</clause></subparagraph><subparagraph id="ID9A3A38EC9F0F4022A15075BFED0A58F9"><enum>(B)</enum><text>disaffirm or repudiate
none of the qualified financial contracts referred to in subparagraph (A) (with
respect to such person or any affiliate of such person).</text>
</subparagraph></paragraph><paragraph id="IDCFB2F232B96B439383D5F5BB50FEA077"><enum>(12)</enum><header>Certain security
interests not avoidable</header><text>No provision of this subsection shall be
construed as permitting the avoidance of any legally enforceable or perfected
security interest in any of the assets of any regulated entity, except where
such an interest is taken in contemplation of the insolvency of the regulated
entity, or with the intent to hinder, delay, or defraud the regulated entity or
the creditors of such regulated entity.</text>
</paragraph><paragraph id="ID3F29530B2F054340A248E509B2F2E7DE"><enum>(13)</enum><header>Authority to enforce
contracts</header>
<subparagraph id="IDDFC7F06BDE854A82989BDAF1948EA1F6"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any provision of a contract providing for
termination, default, acceleration, or exercise of rights upon, or solely by
reason of, insolvency or the appointment of, or the exercise of rights or
powers by, a conservator or receiver, the conservator or receiver may enforce
any contract, other than a contract for liability insurance for a director or
officer, or a contract or a regulated entity bond, entered into by the
regulated entity.</text>
</subparagraph><subparagraph id="IDFF9A40AA29024950A3481A0B85B1483A"><enum>(B)</enum><header>Certain rights not
affected</header><text>No provision of this paragraph may be construed as
impairing or affecting any right of the conservator or receiver to enforce or
recover under a liability insurance contract for an officer or director, or
regulated entity bond under other applicable law.</text>
</subparagraph><subparagraph id="ID5F658333A2D846918C618DC81CCB811C"><enum>(C)</enum><header>Consent
requirement</header>
<clause id="ID6F5FAAAFE109454BAFFAF7C4A64D27F9"><enum>(i)</enum><header>In
general</header><text>Except as otherwise provided under this section, no
person may exercise any right or power to terminate, accelerate, or declare a
default under any contract to which a regulated entity is a party, or to obtain
possession of or exercise control over any property of the regulated entity, or
affect any contractual rights of the regulated entity, without the consent of
the conservator or receiver, as appropriate, for a period of—</text>
<subclause id="ID69BA55FB3FA24304A8306725A60B433C"><enum>(I)</enum><text>45 days after the date of
appointment of a conservator; or</text>
</subclause><subclause id="ID3B3CADFC558D4B028D3B21C976266530"><enum>(II)</enum><text>90 days after the date
of appointment of a receiver.</text>
</subclause></clause><clause id="ID406E916503544E0BA6E0EA2E3C38A490"><enum>(ii)</enum><header>Exceptions</header><text>This
subparagraph shall not—</text>
<subclause id="IDFC0B7AF04F7E45319CDB6E38B6EABFAB"><enum>(I)</enum><text>apply to a contract for
liability insurance for an officer or director;</text>
</subclause><subclause id="IDA6E92B89F0B143649C6E4B4DBBA0EC95"><enum>(II)</enum><text>apply to the rights of
parties to certain qualified financial contracts under subsection (d)(8);
and</text>
</subclause><subclause id="ID0EF04F38FA434A3D8C3ECC5C3F720031"><enum>(III)</enum><text>be construed as
permitting the conservator or receiver to fail to comply with otherwise
enforceable provisions of such contracts.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID03962B1826884FBB8DCE7A5202C50D6E"><enum>(14)</enum><header>Savings
clause</header><text>The meanings of terms used in this subsection are
applicable for purposes of this subsection only, and shall not be construed or
applied so as to challenge or affect the characterization, definition, or
treatment of any similar terms under any other statute, regulation, or rule,
including the Gramm-Leach-Bliley Act, the Legal Certainty for Bank Products Act
of 2000, the securities laws (as that term is defined in section 3(a)(47) of
the Securities Exchange Act of 1934), and the Commodity Exchange Act.</text>
</paragraph><paragraph commented="no" id="ID6E8EE7C1F8164F6FBF15CCB278500003"><enum>(15)</enum><header>Exception for federal
reserve and federal home loan banks</header><text>No provision of this
subsection shall apply with respect to—</text>
<subparagraph commented="no" id="IDD83280C102A14455A0684805F18371AA"><enum>(A)</enum><text>any extension of credit
from any Federal Home Loan Bank or Federal Reserve Bank to any regulated
entity; or</text>
</subparagraph><subparagraph commented="no" id="ID34AA0DF769204EF49E12F860C9D3E163"><enum>(B)</enum><text>any security interest in
the assets of the regulated entity securing any such extension of
credit.</text>
</subparagraph></paragraph></subsection><subsection id="ID0EAC6E3698D34821AC329872FB482589"><enum>(e)</enum><header>Valuation of claims in
default</header>
<paragraph id="ID13DC976A6968423986E0B8CC31B40E62"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of Federal law or the
law of any State, and regardless of the method which the Agency determines to
utilize with respect to a regulated entity in default or in danger of default,
including transactions authorized under subsection (i), this subsection shall
govern the rights of the creditors of such regulated entity.</text>
</paragraph><paragraph id="ID03B9795178FD44139AF425B7D5FBCE59"><enum>(2)</enum><header>Maximum
liability</header><text>The maximum liability of the Agency, acting as receiver
or in any other capacity, to any person having a claim against the receiver or
the regulated entity for which such receiver is appointed shall be not more
than the amount that such claimant would have received if the Agency had
liquidated the assets and liabilities of the regulated entity without
exercising the authority of the Agency under subsection (i).</text>
</paragraph></subsection><subsection id="IDECC09BC833AB416FA5FE9F5FA84DDA31"><enum>(f)</enum><header>Limitation on court
action</header><text>Except as provided in this section or at the request of
the Director, no court may take any action to restrain or affect the exercise
of powers or functions of the Agency as a conservator or a receiver.</text>
</subsection><subsection id="IDAF48B0C5EAB44328A028E13BCE6F1122"><enum>(g)</enum><header>Liability of directors
and officers</header>
<paragraph id="ID54E5839D0BCF41479D983EEF5357F0F6"><enum>(1)</enum><header>In
general</header><text>A director or officer of a regulated entity may be held
personally liable for monetary damages in any civil action described in
paragraph (2) brought by, on behalf of, or at the request or direction of the
Agency, and prosecuted wholly or partially for the benefit of the
Agency—</text>
<subparagraph id="ID9C8AE32C86A341449447D826213A615B"><enum>(A)</enum><text>acting as conservator or
receiver of such regulated entity; or</text>
</subparagraph><subparagraph id="ID191D873430754712BACB79A3888E9F27"><enum>(B)</enum><text>acting based upon a suit,
claim, or cause of action purchased from, assigned by, or otherwise conveyed by
such receiver or conservator.</text>
</subparagraph></paragraph><paragraph id="IDC7E1A8C39FD4432B93058B850A886C01"><enum>(2)</enum><header>Actions
addressed</header><text>Paragraph (1) applies in any civil action for gross
negligence, including any similar conduct or conduct that demonstrates a
greater disregard of a duty of care than gross negligence, including
intentional tortious conduct, as such terms are defined and determined under
applicable State law.</text>
</paragraph><paragraph id="ID45ABBC20D42F4424B384B18A9B12607A"><enum>(3)</enum><header>No
limitation</header><text>Nothing in this subsection shall impair or affect any
right of the Agency under other applicable law.</text>
</paragraph></subsection><subsection id="ID6AF66D3522FA40E2B7595B06BB0B5CBB"><enum>(h)</enum><header>Damages</header><text>In
any proceeding related to any claim against a director, officer, employee,
agent, attorney, accountant, appraiser, or any other party employed by or
providing services to a regulated entity, recoverable damages determined to
result from the improvident or otherwise improper use or investment of any
assets of the regulated entity shall include principal losses and appropriate
interest.</text>
</subsection><subsection id="ID0AAA3268D0B646CB96FD336EE02A56B5"><enum>(i)</enum><header>Limited-life regulated
entities</header>
<paragraph id="ID88B5A535DE354D26B9D0BAEBD8D2946F"><enum>(1)</enum><header>Organization</header>
<subparagraph id="ID9A0ADD5889DB49DDA057C4D4CFA88414"><enum>(A)</enum><header>Purpose</header><text>The
Agency, as receiver appointed pursuant to subsection (a)—</text>
<clause id="IDFCEBAEA809B849CCA0F588B9DEC1A94A"><enum>(i)</enum><text>may, in the case of a
Federal Home Loan Bank, organize a limited-life regulated entity with those
powers and attributes of the Federal Home Loan Bank in default or in danger of
default as the Director determines necessary, subject to the provisions of this
subsection, and the Director shall grant a temporary charter to that
limited-life regulated entity, and that limited-life regulated entity shall
operate subject to that charter; and</text>
</clause><clause id="ID1086EF7D47F9423BAB46C5030FA42820"><enum>(ii)</enum><text>shall, in the case of an
enterprise, organize a limited-life regulated entity with respect to that
enterprise in accordance with this subsection.</text>
</clause></subparagraph><subparagraph id="IDE0F3B21E5D1B4F73A50D6500A5F2B432"><enum>(B)</enum><header>Authorities</header><text>Upon
the creation of a limited-life regulated entity under subparagraph (A), the
limited-life regulated entity may—</text>
<clause id="ID7EE17BD043D54304863AE4635C982D02"><enum>(i)</enum><text>assume such liabilities
of the regulated entity that is in default or in danger of default as the
Agency may, in its discretion, determine to be appropriate, except that the
liabilities assumed shall not exceed the amount of assets purchased or
transferred from the regulated entity to the limited-life regulated
entity;</text>
</clause><clause id="ID89920BAB5C114C959B994980D091EA17"><enum>(ii)</enum><text>purchase such assets of
the regulated entity that is in default, or in danger of default as the Agency
may, in its discretion, determine to be appropriate; and</text>
</clause><clause id="ID1224942725EC4035BFBF4BD7FBEA568D"><enum>(iii)</enum><text>perform any other
temporary function which the Agency may, in its discretion, prescribe in
accordance with this section.</text>
</clause></subparagraph></paragraph><paragraph id="IDF5A9BB35E4034C7B8C6E073B70E9E095"><enum>(2)</enum><header>Charter and
establishment</header>
<subparagraph id="IDA24A97963CCA46AFBBEDE18343F2A564"><enum>(A)</enum><header>Transfer of
charter</header>
<clause id="ID68DCDD7012C34024B4B3AB9BB53AA610"><enum>(i)</enum><header>Fannie
mae</header><text>If the Agency is appointed as receiver for the Federal
National Mortgage Association, the limited-life regulated entity established
under this subsection with respect to such enterprise shall, by operation of
law and immediately upon its organization—</text>
<subclause id="ID9B0295691BB44CDCA4F665DBF2ADC1B2"><enum>(I)</enum><text>succeed to the charter of
the Federal National Mortgage Association, as set forth in the Federal National
Mortgage Association Charter Act; and</text>
</subclause><subclause id="IDD17E0AF57DFE47C9B653241F83F45116"><enum>(II)</enum><text>thereafter operate in
accordance with, and subject to, such charter, this Act, and any other
provision of law to which the Federal National Mortgage Association is subject,
except as otherwise provided in this subsection.</text>
</subclause></clause><clause id="IDCAE3AC438A7C402A89038F9D61EAEFCC"><enum>(ii)</enum><header>Freddie
mac</header><text>If the Agency is appointed as receiver for the Federal Home
Loan Mortgage Corporation, the limited-life regulated entity established under
this subsection with respect to such enterprise shall, by operation of law and
immediately upon its organization—</text>
<subclause id="IDDB5AF86A1CC64E04A1174311DA97CC4B"><enum>(I)</enum><text>succeed to the charter of
the Federal Home Loan Mortgage Corporation, as set forth in the Federal Home
Loan Mortgage Corporation Charter Act; and</text>
</subclause><subclause id="ID7F572C57C2A64CB1A89F594FF0F2C61F"><enum>(II)</enum><text>thereafter operate in
accordance with, and subject to, such charter, this Act, and any other
provision of law to which the Federal Home Loan Mortgage Corporation is
subject, except as otherwise provided in this subsection.</text>
</subclause></clause></subparagraph><subparagraph id="ID9CB0762769C749CCA3332179113FB8B8"><enum>(B)</enum><header>Interests in and assets
and obligations of regulated entity in default</header><text>Notwithstanding
subparagraph (A) or any other provision of law—</text>
<clause id="IDA91C5475EB42497680A09B5CFD7F549C"><enum>(i)</enum><text>a limited-life regulated
entity shall assume, acquire, or succeed to the assets or liabilities of a
regulated entity only to the extent that such assets or liabilities are
transferred by the Agency to the limited-life regulated entity in accordance
with, and subject to the restrictions set forth in, paragraph (1)(B);</text>
</clause><clause id="ID36804E33A2D94637ACE73AE826C3DD99"><enum>(ii)</enum><text>a limited-life regulated
entity shall not assume, acquire, or succeed to any obligation that a regulated
entity for which a receiver has been appointed may have to any shareholder of
the regulated entity that arises as a result of the status of that person as a
shareholder of the regulated entity; and</text>
</clause><clause id="ID7DD55C8754D34EDE9A0E3E9A3A278259"><enum>(iii)</enum><text>no shareholder or
creditor of a regulated entity shall have any right or claim against the
charter of the regulated entity once the Agency has been appointed receiver for
the regulated entity and a limited-life regulated entity succeeds to the
charter pursuant to subparagraph (A).</text>
</clause></subparagraph><subparagraph id="ID9720DC1D8E254C4CBF46DBB0E46C6EFC"><enum>(C)</enum><header>Limited-life regulated
entity treated as being in default for certain purposes</header><text>A
limited-life regulated entity shall be treated as a regulated entity in default
at such times and for such purposes as the Agency may, in its discretion,
determine.</text>
</subparagraph><subparagraph id="ID4315823CFD874AA19302A1FE7EB5DA02"><enum>(D)</enum><header>Management</header><text>Upon
its establishment, a limited-life regulated entity shall be under the
management of a board of directors consisting of not fewer than 5 nor more than
10 members appointed by the Agency.</text>
</subparagraph><subparagraph id="IDC8845201905F4171A6631A5328B3AB0C"><enum>(E)</enum><header>Bylaws</header><text>The
board of directors of a limited-life regulated entity shall adopt such bylaws
as may be approved by the Agency.</text>
</subparagraph></paragraph><paragraph id="ID2054B555924B4755B87AB5A4CA252926"><enum>(3)</enum><header>Capital stock</header>
<subparagraph id="ID452C095BD08246BEAFA3A158C0A9768D" indent="down1"><enum>(A)</enum><header>No
agency requirement</header><text>The Agency is not required to pay capital
stock into a limited-life regulated entity or to issue any capital stock on
behalf of a limited-life regulated entity established under this
subsection.</text>
</subparagraph><subparagraph id="IDD09DAE42F5BC4C2CBED14335A5421D0E" indent="down1"><enum>(B)</enum><header>Authority</header><text>If
the Director determines that such action is advisable, the Agency may cause
capital stock or other securities of a limited-life regulated entity
established with respect to an enterprise to be issued and offered for sale, in
such amounts and on such terms and conditions as the Director may determine, in
the discretion of the Director.</text>
</subparagraph></paragraph><paragraph id="ID3819E6C2D78746B3A5E31AE8510A63AB"><enum>(4)</enum><header>Investments</header><text>Funds
of a limited-life regulated entity shall be kept on hand in cash, invested in
obligations of the United States or obligations guaranteed as to principal and
interest by the United States, or deposited with the Agency, or any Federal
reserve bank.</text>
</paragraph><paragraph id="ID4B06E520869A4039B1CF565ABD6A100D"><enum>(5)</enum><header>Exempt tax
status</header><text>Notwithstanding any other provision of Federal or State
law, a limited-life regulated entity, its franchise, property, 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.</text>
</paragraph><paragraph id="IDC9E03551A68E4A3DBC69D07714090BE3"><enum>(6)</enum><header>Winding up</header>
<subparagraph id="ID16F7ECF9629A4B23BB545693D3FF0F2F"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraphs (B) and (C), not later than 2
years after the date of its organization, the Agency shall wind up the affairs
of a limited-life regulated entity.</text>
</subparagraph><subparagraph id="IDBB1DB3E473854D178B0CB431BF2BEEE9"><enum>(B)</enum><header>Extension</header><text>The
Director may, in the discretion of the Director, extend the status of a
limited-life regulated entity for 3 additional 1-year periods.</text>
</subparagraph><subparagraph id="ID484AA5FFF0844D90A582283553FD6B5F"><enum>(C)</enum><header>Termination of status
as limited-life regulated entity</header>
<clause id="ID793BC95616944CCB9E4B0A7814AF0283"><enum>(i)</enum><header>In
general</header><text>Upon the sale by the Agency of 80 percent or more of the
capital stock of a limited-life regulated entity, as defined in clause (iv), to
1 or more persons (other than the Agency)—</text>
<subclause id="ID82A2E67203DC422D9060FB9557309FAB"><enum>(I)</enum><text>the status of the
limited-life regulated entity as such shall terminate; and</text>
</subclause><subclause id="ID9A9C2518191941EC82A6B0903383E212"><enum>(II)</enum><text>the entity shall cease
to be a limited-life regulated entity for purposes of this subsection.</text>
</subclause></clause><clause id="ID94DC20DD4B7246EE8AE4767A34C2962E"><enum>(ii)</enum><header>Divestiture of
remaining stock, if any</header>
<subclause id="ID7864238DA75F406A95E5A3279866717E"><enum>(I)</enum><header>In
general</header><text>Not later than 1 year after the date on which the status
of a limited-life regulated entity is terminated pursuant to clause (i), the
Agency shall sell to 1 or more persons (other than the Agency) any remaining
capital stock of the former limited-life regulated entity.</text>
</subclause><subclause id="IDE16F1BCAEAAA481EA3D05ABDC9A3E72D"><enum>(II)</enum><header>Extension
authorized</header><text>The Director may extend the period referred to in
subclause (I) for not longer than an additional 2 years, if the Director
determines that such action would be in the public interest.</text>
</subclause></clause><clause id="IDDCC8CAA8E9D04AB58C080F1FA1861D84"><enum>(iii)</enum><header>Savings
clause</header><text>Notwithstanding any provision of law, other than clause
(ii), the Agency shall not be required to sell the capital stock of an
enterprise or a limited-life regulated entity established with respect to an
enterprise.</text>
</clause><clause id="IDE828D5B45D4F43A39BC8BD32C9998929"><enum>(iv)</enum><header>Applicability</header><text>This
subparagraph applies only with respect to a limited-life regulated entity that
is established with respect to an enterprise.</text>
</clause></subparagraph></paragraph><paragraph id="ID2A9F83D30FD54DABAA87B7D18B76FEE8"><enum>(7)</enum><header>Transfer of assets and
liabilities</header>
<subparagraph id="IDC63B426B79184D4090F9F4EFE090F941"><enum>(A)</enum><header>In general</header>
<clause id="ID786A90A742034C00A6CF3F72F5041831"><enum>(i)</enum><header>Transfer of assets and
liabilities</header><text>The Agency, as receiver, may transfer any assets and
liabilities of a regulated entity in default, or in danger of default, to the
limited-life regulated entity in accordance with and subject to the
restrictions of paragraph (1).</text>
</clause><clause id="IDB9A752515472405FBEECF0DDC89F97DA"><enum>(ii)</enum><header>Subsequent
transfers</header><text>At any time after the establishment of a limited-life
regulated entity, the Agency, as receiver, may transfer any assets and
liabilities of the regulated entity in default, or in danger of default, as the
Agency may, in its discretion, determine to be appropriate in accordance with
and subject to the restrictions of paragraph (1).</text>
</clause><clause id="ID476355E7458B4447B02A02E23F46DB71"><enum>(iii)</enum><header>Effective without
approval</header><text>The transfer of any assets or liabilities of a regulated
entity in default or in danger of default to a limited-life regulated entity
shall be effective without any further approval under Federal or State law,
assignment, or consent with respect thereto.</text>
</clause><clause id="ID7EF29BFED6C24B41B5A8E5525F5B6310"><enum>(iv)</enum><header>Equitable treatment of
similarly situated creditors</header><text>The Agency shall treat all creditors
of a regulated entity in default or in danger of default that are similarly
situated under subsection (c)(1) in a similar manner in exercising the
authority of the Agency under this subsection to transfer any assets or
liabilities of the regulated entity to the limited-life regulated entity
established with respect to such regulated entity, except that the Agency may
take actions (including making payments) that do not comply with this clause,
if—</text>
<subclause id="ID2F2BCA42174549489471573A9A22C252"><enum>(I)</enum><text>the Director determines
that such actions are necessary to maximize the value of the assets of the
regulated entity, to maximize the present value return from the sale or other
disposition of the assets of the regulated entity, or to minimize the amount of
any loss realized upon the sale or other disposition of the assets of the
regulated entity; and</text>
</subclause><subclause id="IDCA5F8E19E64C48BEAB1A684D8DEF71BD"><enum>(II)</enum><text>all creditors that are
similarly situated under subsection (c)(1) receive not less than the amount
provided in subsection (e)(2).</text>
</subclause></clause><clause id="IDAC0CFECCDAA34841A75447D983702B55"><enum>(v)</enum><header>Limitation on transfer
of liabilities</header><text>Notwithstanding any other provision of law, the
aggregate amount of liabilities of a regulated entity that are transferred to,
or assumed by, a limited-life regulated entity may not exceed the aggregate
amount of assets of the regulated entity that are transferred to, or purchased
by, the limited-life regulated entity.</text>
</clause></subparagraph></paragraph><paragraph id="ID04A66BC75C874EBCACB632BA41C74924"><enum>(8)</enum><header>Regulations</header><text>The
Agency may promulgate such regulations as the Agency determines to be necessary
or appropriate to implement this subsection.</text>
</paragraph><paragraph id="ID148518F7B4B64906BB69B627CDCEF96E"><enum>(9)</enum><header>Powers of limited-life
regulated entities</header>
<subparagraph id="ID2AA6625AB509450A90DC2C8462A89BF9"><enum>(A)</enum><header>In
general</header><text>Each limited-life regulated entity created under this
subsection shall have all corporate powers of, and be subject to the same
provisions of law as, the regulated entity in default or in danger of default
to which it relates, except that—</text>
<clause id="ID5ECEEB0C402744069D49BAB34EA9262D"><enum>(i)</enum><text>the Agency may—</text>
<subclause id="IDF278D858E2914D0FB028B14931A3FE5C"><enum>(I)</enum><text>remove the directors of a
limited-life regulated entity;</text>
</subclause><subclause id="ID31CDDEC324854250B16971767A3C4278"><enum>(II)</enum><text>fix the compensation of
members of the board of directors and senior management, as determined by the
Agency in its discretion, of a limited-life regulated entity; and</text>
</subclause><subclause id="IDA21481EE6284404EA8EAB50F2DA0C8AF"><enum>(III)</enum><text>indemnify the
representatives for purposes of paragraph (1)(B), and the directors, officers,
employees, and agents of a limited-life regulated entity on such terms as the
Agency determines to be appropriate; and</text>
</subclause></clause><clause id="ID1651519A73C141A98A4892ADBF2844BC"><enum>(ii)</enum><text>the board of directors
of a limited-life regulated entity—</text>
<subclause id="IDD8EA933062534647ABE2E599AF8C7922"><enum>(I)</enum><text>shall elect a chairperson
who may also serve in the position of chief executive officer, except that such
person shall not serve either as chairperson or as chief executive officer
without the prior approval of the Agency; and</text>
</subclause><subclause id="IDA5C30A20800348719FA97EECC930A6D2"><enum>(II)</enum><text>may appoint a chief
executive officer who is not also the chairperson, except that such person
shall not serve as chief executive officer without the prior approval of the
Agency.</text>
</subclause></clause></subparagraph><subparagraph id="IDCE0861E4F55841FAAB8A9C9CB5E41FED"><enum>(B)</enum><header>Stay of judicial
action</header><text>Any judicial action to which a limited-life regulated
entity becomes a party by virtue of its acquisition of any assets or assumption
of any liabilities of a regulated entity in default shall be stayed from
further proceedings for a period of not longer than 45 days, at the request of
the limited-life regulated entity. Such period may be modified upon the consent
of all parties.</text>
</subparagraph></paragraph><paragraph id="ID901B859230674FF2B0E7C083249828FF"><enum>(10)</enum><header>No federal
status</header>
<subparagraph id="IDBE4430D3066B4141AD3AF3FB19B38AC2"><enum>(A)</enum><header>Agency
status</header><text>A limited-life regulated entity is not an agency,
establishment, or instrumentality of the United States.</text>
</subparagraph><subparagraph id="ID78E809232DF24E35948AED1A12DF15D5"><enum>(B)</enum><header>Employee
status</header><text>Representatives for purposes of paragraph (1)(B), interim
directors, directors, officers, employees, or agents of a limited-life
regulated entity are not, solely by virtue of service in any such capacity,
officers or employees of the United States. Any employee of the Agency or of
any Federal instrumentality who serves at the request of the Agency as a
representative for purposes of paragraph (1)(B), interim director, director,
officer, employee, or agent of a limited-life regulated entity shall
not—</text>
<clause id="IDCE1EE21745434277B24127D7D5C72842"><enum>(i)</enum><text>solely by virtue of
service in any such capacity lose any existing status as an officer or employee
of the United States for purposes of title 5, United States Code, or any other
provision of law; or</text>
</clause><clause id="IDBDC0B735A17D4426820416BEC40294FE"><enum>(ii)</enum><text>receive any salary or
benefits for service in any such capacity with respect to a limited-life
regulated entity in addition to such salary or benefits as are obtained through
employment with the Agency or such Federal instrumentality.</text>
</clause></subparagraph></paragraph><paragraph id="IDA6D5452137D64B8BA66F33FBFB426022"><enum>(11)</enum><header>Authority to obtain
credit</header>
<subparagraph id="ID56DA7E2FA7D84E5EBFDC84420D66C0B4"><enum>(A)</enum><header>In
general</header><text>A limited-life regulated entity may obtain unsecured
credit and issue unsecured debt.</text>
</subparagraph><subparagraph id="IDBD63CA86C541403A8B349812715E0F3B"><enum>(B)</enum><header>Inability to obtain
credit</header><text>If a limited-life regulated entity is unable to obtain
unsecured credit or issue unsecured debt, the Director may authorize the
obtaining of credit or the issuance of debt by the limited-life regulated
entity—</text>
<clause id="ID3120F902A31F4EA99DB83214F6F1BE6C"><enum>(i)</enum><text>with priority over any or
all of the obligations of the limited-life regulated entity;</text>
</clause><clause id="IDF6DF10E689FF4B698E429CF246724C5A"><enum>(ii)</enum><text>secured by a lien on
property of the limited-life regulated entity that is not otherwise subject to
a lien; or</text>
</clause><clause id="ID94A78681751242219F834AB598DC3E2C"><enum>(iii)</enum><text>secured by a junior
lien on property of the limited-life regulated entity that is subject to a
lien.</text>
</clause></subparagraph><subparagraph id="ID053B40C4FABB4F80802CFF2B8AF52850"><enum>(C)</enum><header>Limitations</header>
<clause id="ID046C0EE810FE4259A779A5CE216F9B31"><enum>(i)</enum><header>In
general</header><text>The Director, after notice and a hearing, may authorize
the obtaining of credit or the issuance of debt by a limited-life regulated
entity that is secured by a senior or equal lien on property of the
limited-life regulated entity that is subject to a lien (other than mortgages
that collateralize the mortgage-backed securities issued or guaranteed by an
enterprise) only if—</text>
<subclause id="ID8AABB36BB78C48E69724FC360B0B72BA"><enum>(I)</enum><text>the limited-life
regulated entity is unable to otherwise obtain such credit or issue such debt;
and</text>
</subclause><subclause id="IDC8F5A0D3A0B34496AB407FEBC40FE7F4"><enum>(II)</enum><text>there is adequate
protection of the interest of the holder of the lien on the property with
respect to which such senior or equal lien is proposed to be granted.</text>
</subclause></clause></subparagraph><subparagraph id="IDD71423ED53014523AF6B4798E3503F79"><enum>(D)</enum><header>Burden of
proof</header><text>In any hearing under this subsection, the Director has the
burden of proof on the issue of adequate protection.</text>
</subparagraph></paragraph><paragraph id="ID6859660157DF49B4BD841AA2921025C1"><enum>(12)</enum><header>Affect on debts and
liens</header><text>The reversal or modification on appeal of an authorization
under this subsection to obtain credit or issue debt, or of a grant under this
section of a priority or a lien, does not affect the validity of any debt so
issued, or any priority or lien so granted, to an entity that extended such
credit in good faith, whether or not such entity knew of the pendency of the
appeal, unless such authorization and the issuance of such debt, or the
granting of such priority or lien, were stayed pending appeal.</text>
</paragraph></subsection><subsection id="ID2D66F53A15674890B406B61F18A25098"><enum>(j)</enum><header>Other agency
exemptions</header>
<paragraph id="ID031B819DA7744819840F4A3054DAADA9"><enum>(1)</enum><header>Applicability</header><text>The
provisions of this subsection shall apply with respect to the Agency in any
case in which the Agency is acting as a conservator or a receiver.</text>
</paragraph><paragraph id="IDA849451064164DB69967F21EA8B77CB3"><enum>(2)</enum><header>Taxation</header><text>The
Agency, including its franchise, its capital, reserves, and surplus, and its
income, shall be exempt from all taxation imposed by any State, county,
municipality, or local taxing authority, except that any real property of the
Agency 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, except that, notwithstanding the failure of any person to challenge an
assessment under State law of the value of such property, and the tax thereon,
shall be determined as of the period for which such tax is imposed.</text>
</paragraph><paragraph id="ID840F79E1433C496CA3FE84B366873F27"><enum>(3)</enum><header>Property
protection</header><text>No property of the Agency shall be subject to levy,
attachment, garnishment, foreclosure, or sale without the consent of the
Agency, nor shall any involuntary lien attach to the property of the
Agency.</text>
</paragraph><paragraph id="ID066DC3DB128145F49BB8B60E9AF40E27"><enum>(4)</enum><header>Penalties and
fines</header><text>The Agency shall not be liable for any amounts in the
nature of penalties or fines, including those arising from the failure of any
person to pay any real property, personal property, probate, or recording tax
or any recording or filing fees when due.</text>
</paragraph></subsection><subsection id="ID17917A02B6CE4F66975D04856D9DEE70"><enum>(k)</enum><header>Prohibition of charter
revocation</header><text>In no case may the receiver appointed pursuant to this
section revoke, annul, or terminate the charter of an
enterprise.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6A2D63FB6AEC41A4B05D785613A89017"><enum>(b)</enum><header>Technical and
conforming amendments</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>
<paragraph id="IDCF16D11135AD400F9C45CC9E7B43B470"><enum>(1)</enum><text>in section 1368 (12
U.S.C. 4618)—</text>
<subparagraph id="ID408B019FBC314C6E93A94F8DC2538F3B"><enum>(A)</enum><text>by striking <quote>an
enterprise</quote> each place that term appears and inserting <quote>a
regulated entity</quote>; and</text>
</subparagraph><subparagraph id="IDD7BC87B343E54FC4B42D6AC33A9051F5"><enum>(B)</enum><text>by striking <quote>the
enterprise</quote> each place that term appears and inserting <quote>the
regulated entity</quote>;</text>
</subparagraph></paragraph><paragraph id="ID0796F37C6E314E35AB48E9BDB54738A3"><enum>(2)</enum><text>in section 1369C (12
U.S.C. 4622), by striking <quote>enterprise</quote> each place that term
appears and inserting <quote>regulated entity</quote>;</text>
</paragraph><paragraph id="ID49708DE45E834D0DB2730D9D1A504107"><enum>(3)</enum><text>in section 1369D (12
U.S.C. 4623)—</text>
<subparagraph id="IDE7825A4F4BA345C28F21E273A319CA2F"><enum>(A)</enum><text>by striking <quote>an
enterprise</quote> each place that term appears and inserting <quote>a
regulated entity</quote>; and</text>
</subparagraph><subparagraph id="ID88FAD51268744AA9B69741F768A5597D"><enum>(B)</enum><text>in subsection (a)(1), by
striking <quote>An enterprise</quote> and inserting <quote>A regulated
entity</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4E70763495B1489EBFEFC72E7DDFF968"><enum>(4)</enum><text>by striking sections
1369, 1369A, and 1369B (<external-xref legal-doc="usc" parsable-cite="usc/12/4619">12 U.S.C. 4619</external-xref>, 4620, and 4621).</text>
</paragraph></subsection></section></subtitle><subtitle id="IDA7D05F328F1A41A4912AAEFE261BA187"><enum>D</enum><header>Enforcement
actions</header>
<section id="ID46AF6D72DF6B43D78D1A52D496B56FA6"><enum>1151.</enum><header>Cease and desist
proceedings</header><text display-inline="no-display-inline">Section 1371 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4631) is amended—</text>
<paragraph id="IDB83DE14FA9134782AA736F613B0C98FA"><enum>(1)</enum><text>by striking subsections
(a) and (b) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID6D031AD1583E40B18C19BE45CFCD8547" reported-display-style="italic" style="OLC">
<subsection id="ID25F4D439570D439A9BCE7B7899433F46"><enum>(a)</enum><header>Issuance for unsafe or
unsound practices and violations</header>
<paragraph id="idD3CBFDEC785944A4A70297D599D21398"><enum>(1)</enum><header>Authority of
director</header><text>If, in the opinion of the Director, a regulated entity
or any entity-affiliated party is engaging or has engaged, or the Director has
reasonable cause to believe that the regulated entity or any entity-affiliated
party is about to engage, in an unsafe or unsound practice in conducting the
business of the regulated entity or the Office of Finance, or is violating or
has violated, or the Director has reasonable cause to believe is about to
violate, a law, rule, regulation, or order, or any condition imposed in writing
by the Director in connection with the granting of any application or other
request by the regulated entity or the Office of Finance or any written
agreement entered into with the Director, the Director may issue and serve upon
the regulated entity or entity-affiliated party a notice of charges in respect
thereof.</text>
</paragraph><paragraph id="idD6E9DF172D104B9991C6AFFDB46E8DA4"><enum>(2)</enum><header>Limitation</header><text>The
Director may not, pursuant to this section, enforce compliance 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, with subsection (m) or (n) of section 309
of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(m)</external-xref>,
(n)), with subsection (e) or (f) of section 307 of the Federal Home Loan
Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(e)</external-xref>, (f)), or with paragraph (5) of
section 10(j) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)</external-xref>).</text>
</paragraph></subsection><subsection id="IDEC06D920F358411989A45994131546D6"><enum>(b)</enum><header>Issuance for
unsatisfactory rating</header><text>If a regulated entity receives, in its most
recent report of examination, a less-than-satisfactory rating for asset
quality, management, earnings, or liquidity, the Director may (if the
deficiency is not corrected) deem the regulated entity to be engaging in an
unsafe or unsound practice for purposes of subsection
(a).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID7230F0A9D07948F4B50F56659270C42A"><enum>(2)</enum><text>in subsection (c)—</text>
<subparagraph id="ID429D38ED59304CA897800122D4A8F067"><enum>(A)</enum><text>in paragraph (1), by
inserting before the period at the end the following: <quote>, unless the party
served with a notice of charges shall appear at the hearing personally or by a
duly authorized representative, the party shall be deemed to have consented to
the issuance of the cease and desist order</quote>; and</text>
</subparagraph><subparagraph id="IDCA0DE51A9558493FB03F3674943243C0"><enum>(B)</enum><text>in paragraph (2)—</text>
<clause id="IDEB51634040C342B7BCFAE4E67DA00086"><enum>(i)</enum><text>by striking <quote>or
director</quote> and inserting <quote>director, or entity-affiliated
party</quote>; and</text>
</clause><clause id="IDECD413C1E59D4901BAFEC89702A295D6"><enum>(ii)</enum><text>by inserting <quote>or
entity-affiliated party</quote> before <quote>consents</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="IDEFB2B8C3B6234B6E934CF8CF78BD2C7F"><enum>(3)</enum><text>in each of subsections
(c), (d), and (e)—</text>
<subparagraph id="ID57C3BDD0BBAA4F22A71D3221469D1313"><enum>(A)</enum><text>by striking <quote>the
enterprise</quote> each place that term appears and inserting <quote>the
regulated entity</quote>;</text>
</subparagraph><subparagraph id="IDAC48E9371872462FB6E31BBD1AC6628F"><enum>(B)</enum><text>by striking <quote>an
enterprise</quote> each place that term appears and inserting <quote>a
regulated entity</quote>; and</text>
</subparagraph><subparagraph id="ID3765893EE7B84AED95CF35FDC97B0924"><enum>(C)</enum><text>by striking
<quote>conduct</quote> each place that term appears and inserting
<quote>practice</quote>;</text>
</subparagraph></paragraph><paragraph id="IDC4020320C73744CAB24DB74E306B31F7"><enum>(4)</enum><text>in subsection (d)—</text>
<subparagraph id="ID9DC7D483DF7041B5AFB792E8DFEDC52F"><enum>(A)</enum><text>in the matter preceding
paragraph (1)—</text>
<clause id="ID40AB2D454E4F4574A4BEB4582819A05F"><enum>(i)</enum><text>by striking <quote>or
director</quote> and inserting <quote>director, or entity-affiliated
party</quote>; and</text>
</clause><clause id="IDBED2C4F5652B4288B9BC38A05B31E2CB"><enum>(ii)</enum><text>by inserting <quote>to
require a regulated entity or entity-affiliated party</quote> after
<quote>includes the authority</quote>;</text>
</clause></subparagraph><subparagraph id="ID0F4BE6B4DBC545A3BF137BFA921869E1"><enum>(B)</enum><text>in paragraph (1)—</text>
<clause id="IDFC91E2D01A9141E28713CE6F4EF79800"><enum>(i)</enum><text>by striking <quote>to
require an executive officer or a director to</quote>; and</text>
</clause><clause commented="no" id="ID640BEC1D0622403B82AFA7BCE56543DF"><enum>(ii)</enum><text>by striking
<quote>loss</quote> and all that follows through <quote>person</quote> and
inserting <quote>loss, if</quote>;</text>
</clause><clause id="ID02B58576F62843EC9F3F3685A0DE942B"><enum>(iii)</enum><text>in subparagraph (A), by
inserting <quote>such entity or party or finance facility</quote> before
<quote>was</quote>; and</text>
</clause><clause id="ID6D85FA6174F045BABE3EA2D94D07F9F2"><enum>(iv)</enum><text>by striking subparagraph
(B) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDB7716622066C4043BE434A3B11848AD7" reported-display-style="italic" style="OLC">
<subparagraph id="ID5A0760B2FD554AF4AE2BD12108085F51"><enum>(B)</enum><text>the violation or practice
involved a reckless disregard for the law or any applicable regulations or
prior order of the Director;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="ID31CA63DF0D144A5392C8D7B3603691E7"><enum>(C)</enum><text>in paragraph (4), by
inserting <quote>loan or</quote> before <quote>asset</quote>;</text>
</subparagraph></paragraph><paragraph id="IDDCDA6A0218F643848F788857C2C9310B"><enum>(5)</enum><text>in subsection (e), by
inserting <quote>or entity-affiliated party</quote>—</text>
<subparagraph id="ID577A46FB3BDE4E199C5348E49B64B759"><enum>(A)</enum><text>before <quote>or any
executive</quote>; and</text>
</subparagraph><subparagraph id="IDD166901B97EF462399BB719C720ED4D8"><enum>(B)</enum><text>before the period at the
end; and</text>
</subparagraph></paragraph><paragraph id="ID341964CE4AE04F5EA537D05A371AE47F"><enum>(6)</enum><text>in subsection (f)—</text>
<subparagraph id="IDCCF3D67DB7E649F18D525C8C0B4A2D22"><enum>(A)</enum><text>by striking
<quote>enterprise</quote> and inserting <quote>regulated entity, finance
facility,</quote>; and</text>
</subparagraph><subparagraph id="IDE628BF3178E848D7BB639357ECECF3ED"><enum>(B)</enum><text>by striking <quote>or
director</quote> and inserting <quote>director, or entity-affiliated
party</quote>.</text>
</subparagraph></paragraph></section><section id="IDA6724D3AEFAE49F5B37DC79D16793707"><enum>1152.</enum><header>Temporary cease and
desist proceedings</header><text display-inline="no-display-inline">Section
1372 of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632</external-xref>) is amended—</text>
<paragraph id="ID7663FA10436D486E9912C61951FF4175"><enum>(1)</enum><text>by striking subsection
(a) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID492ACDD56D7A462894B830ECD1355841" reported-display-style="italic" style="OLC">
<subsection id="ID5130489F95C347A8BC01027DAB89B8E3"><enum>(a)</enum><header>Grounds for
issuance</header>
<paragraph id="IDFBFD91BB8D2F478E9D7FD89CC883A418"><enum>(1)</enum><header>In
general</header><text>If the Director determines that the actions specified in
the notice of charges served upon a regulated entity or any entity-affiliated
party pursuant to section 1371(a), or the continuation thereof, is likely to
cause insolvency or significant dissipation of assets or earnings of that
entity, or is likely to weaken the condition of that entity prior to the
completion of the proceedings conducted pursuant to sections 1371 and 1373, the
Director may—</text>
<subparagraph id="ID645248696C044FE9BF08CA0F46BF1C01"><enum>(A)</enum><text>issue a temporary order
requiring that regulated entity or entity-affiliated party to cease and desist
from any such violation or practice; and</text>
</subparagraph><subparagraph id="IDD4B82C5E5BC2429A894E1F3260C6B5C5"><enum>(B)</enum><text>require that regulated
entity or entity-affiliated party to take affirmative action to prevent or
remedy such insolvency, dissipation, condition, or prejudice pending completion
of such proceedings.</text>
</subparagraph></paragraph><paragraph id="IDC56CE618BAF34E4188DB3331422B638F"><enum>(2)</enum><header>Additional
requirements</header><text>An order issued under paragraph (1) may include any
requirement authorized under subsection
1371(d).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDB3F5FE76096C4227ADF249D1D4D48DE2"><enum>(2)</enum><text>in subsection (b)—</text>
<subparagraph id="ID6E2EA8B26D124BC4BBC505710B3B519B"><enum>(A)</enum><text>by striking <quote>or
director</quote> and inserting <quote>director, or entity-affiliated
party</quote>; and</text>
</subparagraph><subparagraph id="ID33A9CF6895DF4832ACF056740247E236"><enum>(B)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</subparagraph></paragraph><paragraph id="ID1C7B1D75D7584D388F224DE2F2E5C9CC"><enum>(3)</enum><text>in subsection (c), by
striking <quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</paragraph><paragraph id="ID0E739DE384F94EF791B98186D9F9F392"><enum>(4)</enum><text>in subsection (d)—</text>
<subparagraph id="IDFA25395AFA8F4BB9AC55998F647A1BDF"><enum>(A)</enum><text>by striking <quote>or
director</quote> each place that term appears and inserting <quote>director, or
entity-affiliated party</quote>; and</text>
</subparagraph><subparagraph id="ID28A8DAF0090A4B8683E57FF7EE1238E5"><enum>(B)</enum><text>by striking <quote>An
enterprise</quote> and inserting <quote>A regulated entity</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID0E7E15CDA29E49DB93439FF3CE08A3AB"><enum>(5)</enum><text>in subsection (e)—</text>
<subparagraph id="ID50986ABAE9B34E9AA4FE31BF3739A34C"><enum>(A)</enum><text>by striking
<quote>request the Attorney General of the United States to</quote>; and</text>
</subparagraph><subparagraph id="ID539480CB89A24CE08898E537C1BE80F8"><enum>(B)</enum><text>by striking <quote>or
may, under the direction and control of the Attorney General, bring such
action</quote>.</text>
</subparagraph></paragraph></section><section id="ID7A30F372DDC246F2AC14289DBC914B0A"><enum>1153.</enum><header>Removal and
prohibition authority</header>
<subsection id="IDD0F636FCE15F44A68D92AED00620EE29"><enum>(a)</enum><header>In
general</header><text>Part 1 of subtitle C of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>) is
amended—</text>
<paragraph id="ID8A4219D7629E4092B00243397249B1E8"><enum>(1)</enum><text>by redesignating sections
1377 through 1379B (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637–4641</external-xref>) as sections 1379 through 1379D,
respectively; and</text>
</paragraph><paragraph id="IDEF7AC1DD8828463DBE8000E5AC3D1FFD"><enum>(2)</enum><text>by inserting after
section 1376 (<external-xref legal-doc="usc" parsable-cite="usc/12/4636">12 U.S.C. 4636</external-xref>) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID045CCD760EED4E3D8BC8B78BDBDD5510" reported-display-style="italic" style="OLC">
<section id="IDFC5FE568ED524A7AAFFF7794A19AC820"><enum>1377.</enum><header>Removal and
prohibition authority</header>
<subsection id="IDC336F3C5F30C443A84FF4EB1100E0298"><enum>(a)</enum><header>Authority To issue
order</header>
<paragraph id="IDA5CEAAD31FF646399E6305B5DC352828"><enum>(1)</enum><header>In
general</header><text>The Director may serve upon a party described in
paragraph (2), or any officer, director, or management of the Office of Finance
a written notice of the intention of the Director to suspend or remove such
party from office, or prohibit any further participation by such party, in any
manner, in the conduct of the affairs of the regulated entity.</text>
</paragraph><paragraph id="IDB75361107B164C2FBE24751A3EBC15C7"><enum>(2)</enum><header>Applicability</header><text>A
party described in this paragraph is an entity-affiliated party or any officer,
director, or management of the Office of Finance, if the Director determines
that—</text>
<subparagraph id="ID81C832D228C44F14828BAD343CD33547"><enum>(A)</enum><text>that party, officer, or
director has, directly or indirectly—</text>
<clause id="IDBC74B8BBEC594E6C876DA31C1D6D151C"><enum>(i)</enum><text>violated—</text>
<subclause id="ID548B4D0C9B3C45A1A6D857DD886BFDFB"><enum>(I)</enum><text>any law or
regulation;</text>
</subclause><subclause id="ID094DC8F74FDF4022814E54962C521FD7"><enum>(II)</enum><text>any cease and desist
order which has become final;</text>
</subclause><subclause id="ID8FA4074F6CF545F8AA0DCD9C392F091C"><enum>(III)</enum><text>any condition imposed
in writing by the Director in connection with the grant of any application or
other request by such regulated entity; or</text>
</subclause><subclause id="IDD7561E243E46403DBE9F27EC39481C6A"><enum>(IV)</enum><text>any written agreement
between such regulated entity and the Director;</text>
</subclause></clause><clause id="ID9CDE432E2D0F4893A9F5BFE5E05E6CFD"><enum>(ii)</enum><text>engaged or participated
in any unsafe or unsound practice in connection with any regulated entity or
business institution; or</text>
</clause><clause id="IDF2045EEDE77D4119A88958FA38E06C1B"><enum>(iii)</enum><text>committed or engaged in
any act, omission, or practice which constitutes a breach of such party's
fiduciary duty;</text>
</clause></subparagraph><subparagraph id="IDDA54A8C482B54F3F8334696A1F2F690E"><enum>(B)</enum><text>by reason of the
violation, practice, or breach described in subparagraph (A)—</text>
<clause id="ID83813B8C042D4B52B05B6183B309144E"><enum>(i)</enum><text>such regulated entity or
business institution has suffered or will probably suffer financial loss or
other damage; or</text>
</clause><clause id="IDE292F927C4F446328D94A6198BD7092F"><enum>(ii)</enum><text>such party has received
financial gain or other benefit; and</text>
</clause></subparagraph><subparagraph id="IDAA98BCC5C17C497F8C8D38EC0D955F87"><enum>(C)</enum><text>the violation, practice,
or breach described in subparagraph (A)—</text>
<clause id="ID4155C322EED946E280DE61E17D781B76"><enum>(i)</enum><text>involves personal
dishonesty on the part of such party; or</text>
</clause><clause id="ID926F1C60D4264D678314A2266C9BC920"><enum>(ii)</enum><text>demonstrates willful or
continuing disregard by such party for the safety or soundness of such
regulated entity or business institution.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID9BA17C1EC2D74A65B21757337C515FC5"><enum>(b)</enum><header>Suspension
order</header>
<paragraph id="ID65DB9377C61744A898EFA5A727BEDF7A"><enum>(1)</enum><header>Suspension or
prohibition authority</header><text>If the Director serves written notice under
subsection (a) upon a party subject to that subsection (a), the Director may,
by order, suspend or remove such party from office, or prohibit such party from
further participation in any manner in the conduct of the affairs of the
regulated entity, if the Director—</text>
<subparagraph id="ID2E4A5CFC417D4E8E86E74F5778403AC1"><enum>(A)</enum><text>determines that such
action is necessary for the protection of the regulated entity; and</text>
</subparagraph><subparagraph id="ID44E4DF22034B4E37B7B4EA2B9AA3858B"><enum>(B)</enum><text>serves such party with
written notice of the order.</text>
</subparagraph></paragraph><paragraph id="IDDF02571F4EE24655B288CFBC70CBA683"><enum>(2)</enum><header>Effective
period</header><text>Any order issued under this subsection—</text>
<subparagraph id="ID6F4789CEADD140EEA0DE2FF0F98DFC1D"><enum>(A)</enum><text>shall become effective
upon service; and</text>
</subparagraph><subparagraph id="ID637BA00C1AD64F6099F2C37CA655C069"><enum>(B)</enum><text>unless a court issues a
stay of such order under subsection (g), shall remain in effect and enforceable
until—</text>
<clause id="ID4DC38749ADB245A3B1333BEF478E67B9"><enum>(i)</enum><text>the date on which the
Director dismisses the charges contained in the notice served under subsection
(a) with respect to such party; or</text>
</clause><clause id="IDCA21F0699EBA45F4A2B0ABF1CDC66E8F"><enum>(ii)</enum><text>the effective date of an
order issued under subsection (b).</text>
</clause></subparagraph></paragraph><paragraph id="IDDFD090FE66474119A8F442E1977680A0"><enum>(3)</enum><header>Copy of
order</header><text>If the Director issues an order under subsection (b) to any
party, the Director shall serve a copy of such order on any regulated entity
with which such party is affiliated at the time such order is issued.</text>
</paragraph></subsection><subsection id="IDE90BA27AA90C4F1BB70EA1684890998D"><enum>(c)</enum><header>Notice, hearing, and
order</header>
<paragraph id="IDC5AB40CEDC9C45EBB52C20F270D91637"><enum>(1)</enum><header>Notice</header><text>A
notice under subsection (a) of the intention of the Director to issue an order
under this section shall contain a statement of the facts constituting grounds
for such action, and shall fix a time and place at which a hearing will be held
on such action.</text>
</paragraph><paragraph id="ID64389D9C71724E67A68658F77D927FF0"><enum>(2)</enum><header>Timing of
hearing</header><text>A hearing shall be fixed for a date not earlier than 30
days, nor later than 60 days, after the date of service of notice under
subsection (a), unless an earlier or a later date is set by the Director at the
request of—</text>
<subparagraph id="ID12F96A25380A49909886A7180D98101C"><enum>(A)</enum><text>the party receiving such
notice, and good cause is shown; or</text>
</subparagraph><subparagraph id="ID19539F999062492590B284F11F8D7F8D"><enum>(B)</enum><text>the Attorney General of
the United States.</text>
</subparagraph></paragraph><paragraph id="ID3CC7078DB95B49858AFADD24CBDD98E6"><enum>(3)</enum><header>Consent</header><text>Unless
the party that is the subject of a notice delivered under subsection (a)
appears at the hearing in person or by a duly authorized representative, such
party shall be deemed to have consented to the issuance of an order under this
section.</text>
</paragraph><paragraph id="ID64E281028F8C44B19B4BC02F3949B205"><enum>(4)</enum><header>Issuance of order of
suspension</header><text>The Director may issue an order under this section, as
the Director may deem appropriate, if—</text>
<subparagraph id="ID8616DB009B384740AE6308B7E21DC079"><enum>(A)</enum><text>a party is deemed to have
consented to the issuance of an order under paragraph (3); or</text>
</subparagraph><subparagraph id="IDB176122061C74EBC8FB2D6506E6977C4"><enum>(B)</enum><text>upon the record made at
the hearing, the Director finds that any of the grounds specified in the notice
have been established.</text>
</subparagraph></paragraph><paragraph id="IDF68767F86FD94FF8A5D51A5214E5A7F2"><enum>(5)</enum><header>Effectiveness of
order</header><text>Any order issued under paragraph (4) shall become effective
at the expiration of 30 days after the date of service upon the relevant
regulated entity and party (except in the case of an order issued upon consent
under paragraph (3), which shall become effective at the time specified
therein). Such order shall remain effective and enforceable except to such
extent as it is stayed, modified, terminated, or set aside by action of the
Director or a reviewing court.</text>
</paragraph></subsection><subsection id="ID9C433DF96E184C9DBE15AA4959BFF4BD"><enum>(d)</enum><header>Prohibition of certain
specific activities</header><text>Any person subject to an order issued under
this section shall not—</text>
<paragraph id="ID54F91E7744BA4ABABDD0ED8062692A08"><enum>(1)</enum><text>participate in any manner
in the conduct of the affairs of any regulated entity or the Office of
Finance;</text>
</paragraph><paragraph id="ID87FDE00E2E514917BB1303CDBBA997EB"><enum>(2)</enum><text>solicit, procure,
transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or
authorization with respect to any voting rights in any regulated entity;</text>
</paragraph><paragraph id="ID73B71A8D42D54E4DA0A23DF058C9D0EA"><enum>(3)</enum><text>violate any voting
agreement previously approved by the Director; or</text>
</paragraph><paragraph id="IDCB92070E908B41C4B5A6E60715F462B7"><enum>(4)</enum><text>vote for a director, or
serve or act as an entity-affiliated party of a regulated entity or as an
officer or director of the Office of Finance.</text>
</paragraph></subsection><subsection id="IDC046782B39D146E28E893AEC9255DB7E"><enum>(e)</enum><header>Industry-wide
prohibition</header>
<paragraph id="ID97278F3D208A4673B17342EAC1F3DD62"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), any person who,
pursuant to an order issued under this section, has been removed or suspended
from office in a regulated entity or the Office of Finance, or prohibited from
participating in the conduct of the affairs of a regulated entity or the Office
of Finance, may not, while such order is in effect, continue or commence to
hold any office in, or participate in any manner in the conduct of the affairs
of, any regulated entity or the Office of Finance.</text>
</paragraph><paragraph id="ID4803A8322306440A9DA33275C0E5153D"><enum>(2)</enum><header>Exception if director
provides written consent</header><text>If, on or after the date on which an
order is issued under this section which removes or suspends from office any
party, or prohibits such party from participating in the conduct of the affairs
of a regulated entity or the Office of Finance, such party receives the written
consent of the Director, the order shall, to the extent of such consent, cease
to apply to such party with respect to the regulated entity or such Office of
Finance described in the written consent. Any such consent shall be publicly
disclosed.</text>
</paragraph><paragraph id="ID9053F5840BF34006BB80C2AE15260B5E"><enum>(3)</enum><header>Violation of paragraph
(1) treated as violation of order</header><text>Any violation of paragraph (1)
by any person who is subject to an order issued under subsection (h) shall be
treated as a violation of the order.</text>
</paragraph></subsection><subsection id="ID073E960F41004C729B67E4FD8AB20E2D"><enum>(f)</enum><header>Applicability</header><text>This
section shall only apply to a person who is an individual, unless the Director
specifically finds that it should apply to a corporation, firm, or other
business entity.</text>
</subsection><subsection id="ID6CED73E88C2B4FD486A282C2DB24249B"><enum>(g)</enum><header>Stay of suspension and
prohibition of entity-affiliated party</header><text>Not later than 10 days
after the date on which any entity-affiliated party has been suspended from
office or prohibited from participation in the conduct of the affairs of a
regulated entity under this section, such party may apply to the United States
District Court for the District of Columbia, or the United States district
court for the judicial district in which the headquarters of the regulated
entity is located, for a stay of such suspension or prohibition pending the
completion of the administrative proceedings pursuant to subsection (c). The
court shall have jurisdiction to stay such suspension or prohibition.</text>
</subsection><subsection id="IDDE2E2B8B4EE8479FB325F7422A5482CC"><enum>(h)</enum><header>Suspension or removal
of entity-affiliated party charged with felony</header>
<paragraph id="ID97571BB824BB4CACA9A9036841CE4D6E"><enum>(1)</enum><header>Suspension or
prohibition</header>
<subparagraph id="ID05CF6F2424F4476E9D806BEDC920C491"><enum>(A)</enum><header>In
general</header><text>Whenever any entity-affiliated party is charged in any
information, indictment, or complaint, with the commission of or participation
in a crime involving dishonesty or breach of trust which is punishable by
imprisonment for a term exceeding 1 year under Federal or State law, the
Director may, if continued service or participation by such party may pose a
threat to the regulated entity or impair public confidence in the regulated
entity, by written notice served upon such party, suspend such party from
office or prohibit such party from further participation in any manner in the
conduct of the affairs of any regulated entity.</text>
</subparagraph><subparagraph id="ID2B6C6086066F4B07AEC4003AB3288F63"><enum>(B)</enum><header>Provisions applicable
to notice</header>
<clause id="ID98CB148349E74EBFAF19B324B08EC9CD"><enum>(i)</enum><header>Copy</header><text>A
copy of any notice under subparagraph (A) shall be served upon the relevant
regulated entity.</text>
</clause><clause id="ID9D113990702540C4801C257814E58053"><enum>(ii)</enum><header>Effective
period</header><text>A suspension or prohibition under subparagraph (A) shall
remain in effect until the information, indictment, or complaint referred to in
subparagraph (A) is finally disposed of, or until terminated by the
Director.</text>
</clause></subparagraph></paragraph><paragraph id="ID217950BD8F1348FB8C6A74C07B2D1FFD"><enum>(2)</enum><header>Removal or
prohibition</header>
<subparagraph id="ID474BB173367A47168EC0A262B011E23A"><enum>(A)</enum><header>In
general</header><text>If a judgment of conviction or an agreement to enter a
pretrial diversion or other similar program is entered against an
entity-affiliated party in connection with a crime described in paragraph
(1)(A), at such time as such judgment is not subject to further appellate
review, the Director may, if continued service or participation by such party
may pose a threat to the regulated entity or impair public confidence in the
regulated entity, issue and serve upon such party an order removing such party
from office or prohibiting such party from further participation in any manner
in the conduct of the affairs of the regulated entity without the prior written
consent of the Director.</text>
</subparagraph><subparagraph id="IDF4ED45705E9D46289F4542067FE4A82D"><enum>(B)</enum><header>Provisions applicable
to order</header>
<clause id="IDCC4C9953FDFC463E96A361D0A25641F1"><enum>(i)</enum><header>Copy</header><text>A
copy of any order under subparagraph (A) shall be served upon the relevant
regulated entity, at which time the entity-affiliated party who is subject to
the order (if a director or an officer) shall cease to be a director or officer
of such regulated entity.</text>
</clause><clause id="ID36AF450615F34A48BE9A28A8DF7FC594"><enum>(ii)</enum><header>Effect of
acquittal</header><text>A finding of not guilty or other disposition of the
charge shall not preclude the Director from instituting proceedings after such
finding or disposition to remove a party from office or to prohibit further
participation in the affairs of a regulated entity pursuant to subsection (a)
or (b).</text>
</clause><clause id="ID008F19B1D3214D27A5B8ED3C848A3580"><enum>(iii)</enum><header>Effective
period</header><text>Unless terminated by the Director, any notice of
suspension or order of removal issued under this subsection shall remain
effective and outstanding until the completion of any hearing or appeal
authorized under paragraph (4).</text>
</clause></subparagraph></paragraph><paragraph id="ID28573FF00F2341F1B4AFC7EBA6E491D3"><enum>(3)</enum><header>Authority of remaining
board members</header>
<subparagraph id="ID767A981C7317422EB501B87AAC58FCFE"><enum>(A)</enum><header>In
general</header><text>If at any time, because of the suspension of 1 or more
directors pursuant to this section, there shall be on the board of directors of
a regulated entity less than a quorum of directors not so suspended, all powers
and functions vested in or exercisable by such board shall vest in and be
exercisable by the director or directors on the board not so suspended, until
such time as there shall be a quorum of the board of directors.</text>
</subparagraph><subparagraph id="ID5D8F8A0E74F94FCC91A03E9E89285E22"><enum>(B)</enum><header>Appointment of
temporary directors</header><text>If all of the directors of a regulated entity
are suspended pursuant to this section, the Director shall appoint persons to
serve temporarily as directors pending the termination of such suspensions, or
until such time as those who have been suspended cease to be directors of the
regulated entity and their respective successors take office.</text>
</subparagraph></paragraph><paragraph id="IDA99C3DC9EA044561805D706CE0A830A5"><enum>(4)</enum><header>Hearing regarding
continued participation</header>
<subparagraph id="ID788348BB675F49F0B510F2E3F334AE29"><enum>(A)</enum><header>In
general</header><text>Not later than 30 days after the date of service of any
notice of suspension or order of removal issued pursuant to paragraph (1) or
(2), the entity-affiliated party may request in writing an opportunity to
appear before the Director to show that the continued service or participation
in the conduct of the affairs of the regulated entity by such party does not,
or is not likely to, pose a threat to the interests of the regulated entity, or
threaten to impair public confidence in the regulated entity.</text>
</subparagraph><subparagraph id="ID1BC67974198644FF9D9DDC3B2806D69A"><enum>(B)</enum><header>Timing and form of
hearing</header><text>Upon receipt of a request for a hearing under
subparagraph (A), the Director shall fix a time (not later than 30 days after
the date of receipt of such request, unless extended at the request of such
party) and place at which the entity-affiliated party may appear, personally or
through counsel, before the Director or 1 or more designated employees of the
Director to submit written materials (or, at the discretion of the Director,
oral testimony) and oral argument.</text>
</subparagraph><subparagraph id="ID2FEB2E46B0E04D0591E343E103325CF6"><enum>(C)</enum><header>Determination</header><text>Not
later than 60 days after the date of a hearing under subparagraph (B), the
Director shall notify the entity-affiliated party whether the suspension or
prohibition from participation in any manner in the conduct of the affairs of
the regulated entity will be continued, terminated, or otherwise modified, or
whether the order removing such party from office or prohibiting such party
from further participation in any manner in the conduct of the affairs of the
regulated entity will be rescinded or otherwise modified. Such notification
shall contain a statement of the basis for any adverse decision of the
Director.</text>
</subparagraph></paragraph><paragraph id="ID9DC87EE9F6064EE98662BF8DCB28E4A9"><enum>(5)</enum><header>Rules</header><text>The
Director is authorized to prescribe such rules as may be necessary to carry out
this
subsection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDCFB6BFC3FF4742A9900AD5BEEF86D8EA"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID2A28802DF5C74B7AB9BA53B15A1B02FE"><enum>(1)</enum><header>Safety and soundness
act</header><text>Subtitle C of 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 id="ID7D2B86A91DF44C1D9BE70A047A7979F6"><enum>(A)</enum><text>in section 1317(f), by
striking <quote>section 1379B</quote> and inserting <quote>section
1379D</quote>;</text>
</subparagraph><subparagraph id="ID9FA047EA9EDA40B3BD6F3A590C806E43"><enum>(B)</enum><text>in section
1373(a)—</text>
<clause id="IDBD18B7519FB6419E8107FFB82FB20201"><enum>(i)</enum><text>in paragraph (1), by
striking <quote>or 1376(c)</quote> and inserting <quote>, 1376(c), or
1377</quote>;</text>
</clause><clause id="IDE0192B66BE4848A0BA675F11C9DA7859"><enum>(ii)</enum><text>in paragraph (2), by
inserting “or 1377” after ” 1371”; and</text>
</clause><clause id="ID01E2B0CC1FBD4A7F9F31A4EF74B40AE2"><enum>(iii)</enum><text>in paragraph (4), by
inserting <quote>or removal or prohibition</quote> after <quote>cease and
desist</quote>; and</text>
</clause></subparagraph><subparagraph id="ID5F45FA2865334F449FCA80D987E457AA"><enum>(C)</enum><text>in section
1374(a)—</text>
<clause id="ID95F6180F28B645379F24CBDB2E5EA8DD"><enum>(i)</enum><text>by striking <quote>or
1376</quote> and inserting <quote>1313B, 1376, or 1377</quote>; and</text>
</clause><clause id="IDE958F297EAB44332B25A6715466D7530"><enum>(ii)</enum><text>by striking <quote>such
section</quote> and inserting <quote>this title</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="ID56F50A7864BD46EF9331A570C4D19D8D"><enum>(2)</enum><header>Fannie mae charter
act</header><text>Section 308(b) of the Federal National Mortgage Association
Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended in the second sentence, by striking
<quote>The</quote> and inserting <quote>Except to the extent that action under
section 1377 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 temporarily results in a lesser number, the</quote>.</text>
</paragraph><paragraph id="ID7D9F76D58F8B4499A7D9A96DF47A45AD"><enum>(3)</enum><header>Freddie mac charter
act</header><text>Section 303(a)(2)(A) of the Federal Home Loan Mortgage
Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)(A)</external-xref>) is amended, in the second sentence,
by striking <quote>The</quote> and inserting <quote>Except to the extent action
under section 1377 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 temporarily results in a lesser number,
the</quote>.</text>
</paragraph></subsection></section><section commented="no" id="IDD6C4AD95F068460C9DE1F479C54E4DBA"><enum>1154.</enum><header>Enforcement and
jurisdiction</header><text display-inline="no-display-inline">Section 1375 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4635) is amended—</text>
<paragraph commented="no" id="IDC85B48324BA54974A7CD3DFCD41811BF"><enum>(1)</enum><text>by striking subsection
(a) and inserting the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID2E6DF3CA52234D93AECB64F72A1FFC60" reported-display-style="italic" style="OLC">
<subsection commented="no" id="ID9954CF3C4F2C4F1A9B8ED917BEAC841E"><enum>(a)</enum><header>Enforcement</header><text>The
Director may, in the discretion of the Director, apply to the United States
District Court for the District of Columbia, or the United States district
court within the jurisdiction of which the headquarters of the regulated entity
is located, for the enforcement of any effective and outstanding notice or
order issued under this subtitle or subtitle B, or request that the Attorney
General of the United States bring such an action. Such court shall have
jurisdiction and power to order and require compliance with such notice or
order.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="IDFC259AA657D245F2B5A218194BFE1C72"><enum>(2)</enum><text>in subsection (b), by
striking <quote>or 1376</quote> and inserting <quote>1313B, 1376, or
1377</quote>.</text>
</paragraph></section><section id="IDF1B53726CE904FDCAFF348BF762983FC"><enum>1155.</enum><header>Civil money
penalties</header><text display-inline="no-display-inline">Section 1376 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4636) is amended—</text>
<paragraph id="IDD024F0675C704E2DB7AE62BEB647C10F"><enum>(1)</enum><text>by striking subsection
(a) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID4474F51C0C7544FC840CC9C9B06290D3" reported-display-style="italic" style="OLC">
<subsection id="ID64CA7AC2FF7B428289E84F150A3C92BE"><enum>(a)</enum><header>In
general</header><text>The Director may impose a civil money penalty in
accordance with this section on any regulated entity or any entity-affiliated
party. The Director shall not impose a civil penalty in accordance with this
section on any regulated entity or any entity-affiliated party for any
violation that is addressed under section
1345(a).</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDC31D954125D94E18ADA8A723520256C9"><enum>(2)</enum><text>by striking subsection
(b) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID6809E6DB7ACB422BA44E9711DCBF2C7D" reported-display-style="italic" style="OLC">
<subsection id="ID815CD093FD6245C0900401218D83333E"><enum>(b)</enum><header>Amount of
penalty</header>
<paragraph id="IDAE386DB4ACC84D12803CA407A34B8FF0"><enum>(1)</enum><header>First
tier</header><text>A regulated entity or entity-affiliated party shall forfeit
and pay a civil penalty of not more than $10,000 for each day during which a
violation continues, if such regulated entity or party—</text>
<subparagraph id="ID7AC09A3D98DE4B909FF2685D442C31C2"><enum>(A)</enum><text>violates any provision of
this title, the authorizing statutes, or any order, condition, rule, or
regulation under this title or any authorizing statute;</text>
</subparagraph><subparagraph id="ID178EEAE28AAD4AA19F785CEA5CF88647"><enum>(B)</enum><text>violates any final or
temporary order or notice issued pursuant to this title;</text>
</subparagraph><subparagraph id="ID708E500E2EEE424D91BB54C0A5874502"><enum>(C)</enum><text>violates any condition
imposed in writing by the Director in connection with the grant of any
application or other request by such regulated entity; or</text>
</subparagraph><subparagraph id="ID255F0F0C9CA040BB976173D5CEF4D83F"><enum>(D)</enum><text>violates any written
agreement between the regulated entity and the Director.</text>
</subparagraph></paragraph><paragraph id="IDCDBA4CEF9486449E8F1613F1CDE3E241"><enum>(2)</enum><header>Second
tier</header><text>Notwithstanding paragraph (1), a regulated entity or
entity-affiliated party shall forfeit and pay a civil penalty of not more than
$50,000 for each day during which a violation, practice, or breach continues,
if—</text>
<subparagraph id="ID2CA32C618D1F4681A0DA11123C9AE37D"><enum>(A)</enum><text>the regulated entity or
entity-affiliated party, respectively—</text>
<clause id="ID358E5E3BF7894EFDAB6B03FE64A498FA"><enum>(i)</enum><text>commits any violation
described in any subparagraph of paragraph (1);</text>
</clause><clause id="ID153586020EC244CCA82532EF201AECC8"><enum>(ii)</enum><text>recklessly engages in an
unsafe or unsound practice in conducting the affairs of the regulated entity;
or</text>
</clause><clause id="ID2A1FCBC41D074D17813B4EF6A9BFA667"><enum>(iii)</enum><text>breaches any fiduciary
duty; and</text>
</clause></subparagraph><subparagraph id="IDA56BD113E06745DB90A1D1BDCD8B0B0A"><enum>(B)</enum><text>the violation, practice,
or breach—</text>
<clause id="ID487AE6EE713344579DEE14A420324149"><enum>(i)</enum><text>is part of a pattern of
misconduct;</text>
</clause><clause id="ID9F123C808EA84FA4BAE97D98F7CE7ECD"><enum>(ii)</enum><text>causes or is likely to
cause more than a minimal loss to the regulated entity; or</text>
</clause><clause id="IDE19449649E274389ABA3D00B5B9077AF"><enum>(iii)</enum><text>results in pecuniary
gain or other benefit to such party.</text>
</clause></subparagraph></paragraph><paragraph id="IDDB549DB8852E43B7AB16A0772941F23A"><enum>(3)</enum><header>Third
tier</header><text>Notwithstanding paragraphs (1) and (2), any regulated entity
or entity-affiliated party shall forfeit and pay a civil penalty in an amount
not to exceed the applicable maximum amount determined under paragraph (4) for
each day during which such violation, practice, or breach continues, if such
regulated entity or entity-affiliated party—</text>
<subparagraph id="IDD370BC534CD74B8F8D0C76EE018D8928"><enum>(A)</enum><text>knowingly—</text>
<clause id="IDD358FAE2A1B442CDBBBFE4559B509633"><enum>(i)</enum><text>commits any violation
described in any subparagraph of paragraph (1);</text>
</clause><clause id="ID1AEEB25672774FE794090ECFA59D32EB"><enum>(ii)</enum><text>engages in any unsafe or
unsound practice in conducting the affairs of the regulated entity; or</text>
</clause><clause id="IDAB7C7063ABF3490F8CBCF5C43598F95D"><enum>(iii)</enum><text>breaches any fiduciary
duty; and</text>
</clause></subparagraph><subparagraph id="IDA388CACC35F849388CC28D8721FC3464"><enum>(B)</enum><text>knowingly or recklessly
causes a substantial loss to the regulated entity or a substantial pecuniary
gain or other benefit to such party by reason of such violation, practice, or
breach.</text>
</subparagraph></paragraph><paragraph id="IDB63ED1B860184313B52D030ED71A2A4A"><enum>(4)</enum><header>Maximum amounts of
penalties for any violation described in paragraph (3)</header><text>The
maximum daily amount of any civil penalty which may be assessed pursuant to
paragraph (3) for any violation, practice, or breach described in paragraph (3)
is—</text>
<subparagraph id="ID97FD7D85DFE54D4B8C2B4FB29E0CB425"><enum>(A)</enum><text>in the case of any
entity-affiliated party, an amount not to exceed $2,000,000; and</text>
</subparagraph><subparagraph id="IDB6B4D811FC934D049CE232832577D79F"><enum>(B)</enum><text>in the case of any
regulated entity,
$2,000,000.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID5D14F5BCB8824EE697D351FD55AE6FB9"><enum>(3)</enum><text>in subsection (c)—</text>
<subparagraph id="IDB3C96BA6C13549189C802B648F787C30"><enum>(A)</enum><text>by striking
<quote>enterprise</quote> each place that term appears and inserting
<quote>regulated entity</quote>;</text>
</subparagraph><subparagraph id="IDF3FC70F7F8204C979B4E70E471372E2B"><enum>(B)</enum><text>by inserting <quote>or
entity-affiliated party</quote> before <quote>in writing</quote>; and</text>
</subparagraph><subparagraph id="IDC53935D68EB1455091D9B5AB728CDC14"><enum>(C)</enum><text>by inserting <quote>or
entity-affiliated party</quote> before <quote>has been given</quote>;</text>
</subparagraph></paragraph><paragraph id="IDE46B694ABD1B41B4BD04A7B112D7072B"><enum>(4)</enum><text>in subsection (d)—</text>
<subparagraph id="ID69F141E976794E60B175862DF16F51FF"><enum>(A)</enum><text>by striking <quote>or
director</quote> each place such term appears and inserting <quote>director, or
entity-affiliated party</quote>;</text>
</subparagraph><subparagraph id="ID11794A94CBA54D6BB4995DBF3E1DA153"><enum>(B)</enum><text>by striking <quote>an
enterprise</quote> and inserting <quote>a regulated entity</quote>;</text>
</subparagraph><subparagraph id="ID0C853FE5AC3E479ABD680550E80C9F8A"><enum>(C)</enum><text>by striking <quote>the
enterprise</quote> and inserting <quote>the regulated entity</quote>;</text>
</subparagraph><subparagraph id="IDBDB86AF0805F4FFC94BEC96F0860D21D"><enum>(D)</enum><text>by striking
<quote>request the Attorney General of the United States to</quote>;</text>
</subparagraph><subparagraph id="IDF3FCFBFF0D6F4BC29E77CEFA51E54D9F"><enum>(E)</enum><text>by inserting <quote>, or
the United States district court within the jurisdiction of which the
headquarters of the regulated entity is located,</quote> after <quote>District
of Columbia</quote>;</text>
</subparagraph><subparagraph id="ID46B3A11148034F3BB262F2F0D07D0B67"><enum>(F)</enum><text>by striking <quote>, or
may, under the direction and control of the Attorney General of the United
States, bring such an action</quote>; and</text>
</subparagraph><subparagraph id="ID8BD8D0D662294B79B0FEDBC13944FCC5"><enum>(G)</enum><text>by striking <quote>and
section 1374</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID62A2B9879A674F37A0A4D536D3C6DD89"><enum>(5)</enum><text>in subsection (g), by
striking <quote>An enterprise</quote> and inserting <quote>A regulated
entity</quote>.</text>
</paragraph></section><section id="ID40EA98A4549842348B8E9D15B27EFFFE"><enum>1156.</enum><header>Criminal
penalty</header>
<subsection id="ID006D994A5DBD45EAB6586BB65E56277F"><enum>(a)</enum><header>In
general</header><text>Subtitle C of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>) is amended by
inserting after section 1377, as added by this Act, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID9E01F4309F2F4B078B91E077E2BF6046" reported-display-style="italic" style="OLC">
<section id="ID05FC734439E7424186F155549D0773E5"><enum>1378.</enum><header>Criminal
penalty</header><text display-inline="no-display-inline">Whoever, being subject
to an order in effect under section 1377, without the prior written approval of
the Director, knowingly participates, directly or indirectly, in any manner
(including by engaging in an activity specifically prohibited in such an order)
in the conduct of the affairs of any regulated entity shall, notwithstanding
<external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, be fined not more than $1,000,000, imprisoned for not
more than 5 years, or
both.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID97A9D43EDB3049419AE3378FA6699AC2"><enum>(b)</enum><header>Technical and
conforming amendments</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>
<paragraph id="ID19752288234547FEB1CA5C6E3C79914C"><enum>(1)</enum><text>in section 1379 (as so
designated by this Act)—</text>
<subparagraph id="IDF020EEE97A974C6081A271E820702D26"><enum>(A)</enum><text>by striking <quote>an
enterprise</quote> and inserting <quote>a regulated entity</quote>; and</text>
</subparagraph><subparagraph id="ID6FDFAF45903E406AB521390371941139"><enum>(B)</enum><text>by striking <quote>the
enterprise</quote> and inserting <quote>the regulated entity</quote>;</text>
</subparagraph></paragraph><paragraph id="IDAD7098480BAC456AA7C632928596B05D"><enum>(2)</enum><text>in section 1379A (as so
designated by this Act), by striking <quote>an enterprise</quote> and inserting
<quote>a regulated entity</quote>;</text>
</paragraph><paragraph id="ID550EF49F4991413480B25D271AB7C134"><enum>(3)</enum><text>in section 1379B(c) (as
so designated by this Act), by striking <quote>enterprise</quote> and inserting
<quote>regulated entity</quote>; and</text>
</paragraph><paragraph id="ID521B60A600584033A3F8C9E85C2DBA8E"><enum>(4)</enum><text>in section 1379D (as so
designated by this Act), by striking <quote>enterprise</quote> and inserting
<quote>regulated entity</quote>.</text>
</paragraph></subsection></section><section id="ID1C69A0933EAF448AAFD18AD7BF27E899"><enum>1157.</enum><header>Notice after
separation from service</header><text display-inline="no-display-inline">Section 1379 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637</external-xref>), as so
designated by this Act, is amended—</text>
<paragraph id="ID25F272F8F8FD48FAB3DFF11348A0C3E5"><enum>(1)</enum><text>by striking
<quote>2-year</quote> and inserting <quote>6-year</quote>;</text>
</paragraph><paragraph id="IDFC9D834E681E4B79ACA30B917C886D9F"><enum>(2)</enum><text>by striking <quote>a
director or executive officer of an enterprise</quote> and inserting <quote>an
entity-affiliated party</quote>;</text>
</paragraph><paragraph id="id1FF50093AAA74B4F9E156BF4EDE6ACEE"><enum>(3)</enum><text>by striking
<quote>director or officer</quote> each place that term appears and inserting
<quote>entity-affiliated party</quote>; and</text>
</paragraph><paragraph id="idD1E7B93021124C1B9A713A9EF3806F71"><enum>(4)</enum><text>by striking
<quote>enterprise.</quote> and inserting <quote>regulated
entity.</quote>.</text>
</paragraph></section><section id="ID4D41C2AC77534319BEB5F736F814751B"><enum>1158.</enum><header>Subpoena
authority</header>
<subsection id="idBFEFE8056A1443618B6D782CCBCEACB7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1379B of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4641) is amended—</text>
<paragraph id="ID80525BBEE04B44689E2EA4386747D704"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="IDFBBC97235C6C426A868A3BA194E3A69E"><enum>(A)</enum><text>in the matter preceding
paragraph (1)—</text>
<clause id="IDB7549B399F77467CA099C28EBC1B80CD"><enum>(i)</enum><text>by striking
<quote>administrative</quote>;</text>
</clause><clause id="IDEFDD5C4379BB432D8805D5D6898D5F68"><enum>(ii)</enum><text>by inserting <quote>,
examination, or investigation</quote> after <quote>proceeding</quote>;</text>
</clause><clause id="ID0BA9046A5EBE495B88A057C9C86BC536"><enum>(iii)</enum><text>by striking
<quote>subtitle</quote> and inserting <quote>title</quote>; and</text>
</clause><clause id="IDBCD8D2D4C68449D5A5CF3797E5936FEB"><enum>(iv)</enum><text>by inserting <quote>or
any designated representative thereof, including any person designated to
conduct any hearing under this subtitle</quote> after <quote>Director</quote>;
and</text>
</clause></subparagraph><subparagraph id="IDFCABB71D523D4BE99ED7E0A940DD0ED4"><enum>(B)</enum><text>in paragraph (4), by
striking <quote>issued by the Director</quote>;</text>
</subparagraph></paragraph><paragraph id="ID1991CD84629A4AEEA366CE5D28524AC6"><enum>(2)</enum><text>in subsection (b), by
inserting <quote>or in any territory or other place subject to the jurisdiction
of the United States</quote> after <quote>State</quote>;</text>
</paragraph><paragraph id="ID37D1F576289342DDB4E6494C39854A70"><enum>(3)</enum><text>by striking subsection
(c) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6187B6D28DB84357BB0377B327CDDD44" reported-display-style="italic" style="OLC">
<subsection id="ID91663ED9CC344F3CB2DDC3FD029EF08F"><enum>(c)</enum><header>Enforcement</header>
<paragraph id="IDD2B193080D4D4011AB5C24050B798092"><enum>(1)</enum><header>In
general</header><text>The Director, or any party to proceedings under this
subtitle, may apply to the United States District Court for the District of
Columbia, or the United States district court for the judicial district of the
United States in any territory in which such proceeding is being conducted, or
where the witness resides or carries on business, for enforcement of any
subpoena or subpoena duces tecum issued pursuant to this section.</text>
</paragraph><paragraph id="ID72BC957FE45C4092840B57AC5CF58443"><enum>(2)</enum><header>Power of
court</header><text>The courts described under paragraph (1) shall have the
jurisdiction and power to order and require compliance with any subpoena issued
under paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID7F309F35B66C4EDCBAD6FA44F33A670B"><enum>(4)</enum><text>in subsection (d), by
inserting <quote>enterprise-affiliated party</quote> before <quote>may
allow</quote>; and</text>
</paragraph><paragraph id="ID0A6ABF4D3AA448D38777829E6DFC874D"><enum>(5)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id00CB4B775F1A477B82794AEEA9F75D7F" reported-display-style="italic" style="OLC">
<subsection id="IDF41FBC3ACE124F93A44FEF38C366C226"><enum>(e)</enum><header>Penalties</header><text>A
person shall be guilty of a misdemeanor, and upon conviction, shall be subject
to a fine of not more than $1,000 or to imprisonment for a term of not more
than 1 year, or both, if that person willfully fails or refuses, in
disobedience of a subpoena issued under subsection (c), to—</text>
<paragraph id="IDB58C6BE8127340E8AFC4C901DF023064"><enum>(1)</enum><text>attend court;</text>
</paragraph><paragraph id="IDAE05ED3F7E88451993943E857FD1A0A6"><enum>(2)</enum><text>testify in court;</text>
</paragraph><paragraph id="ID5B567DFCDC9E47E39708CBF6D6389F64"><enum>(3)</enum><text>answer any lawful
inquiry; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8000CF5CBEE0434EB4599168887AB9DB"><enum>(4)</enum><text>produce books, papers,
correspondence, contracts, agreements, or such other records as requested in
the
subpoena.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="IDBAFCF9746BF24350AE394E0A8FA37FD0"><enum>E</enum><header>General
provisions</header>
<section id="IDD5C9DFEE45E646889FA59733EE431B29"><enum>1161.</enum><header>Conforming and
technical amendments</header>
<subsection id="ID7729A615B3A64BB5B290E35CEFB4E361"><enum>(a)</enum><header>Amendments to 1992
Act</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>), as amended by this Act, is
amended—</text>
<paragraph id="IDA60AA75C9F034E0CA17AA561685746EF"><enum>(1)</enum><text>in section 1315 (12
U.S.C. 4515)—</text>
<subparagraph id="ID869F5B89CB80460C8916DE0D917B2EDF"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="ID5465CAAD689E48B982F989666792A913"><enum>(i)</enum><text>by striking <quote>(a)
<header-in-text level="subsection">Office
Personnel</header-in-text>.—The</quote> and inserting <quote>(a)
<header-in-text level="subsection">In General</header-in-text>.—Subject to
title III of the <short-title>Federal Housing Finance
Regulatory Reform Act of 2008</short-title>, the</quote>; and</text>
</clause><clause id="ID8D219B6738304AED88312EE6F2E84DA8"><enum>(ii)</enum><text>by striking <quote>the
Office</quote> each place that term appears and inserting <quote>the
Agency</quote>;</text>
</clause></subparagraph><subparagraph id="ID8979EE3CDC8247BE84E1715D5EA45C6F"><enum>(B)</enum><text>in subsection (c), by
striking <quote>the Office</quote> and inserting <quote>the
Agency</quote>;</text>
</subparagraph><subparagraph id="ID4EE0D5334C0D4FB6859DCBDBB3A9922B"><enum>(C)</enum><text>in subsection (e), by
striking <quote>the Office</quote> and inserting <quote>the
Agency</quote>;</text>
</subparagraph><subparagraph id="IDA7968ACF48F84B9A92BB235C759D7C78"><enum>(D)</enum><text>by striking subsection
(d) and redesignating subsection (e) as subsection (d); and</text>
</subparagraph><subparagraph id="ID650140E6A897483A8C33661C26B02EBD"><enum>(E)</enum><text>by striking subsection
(f);</text>
</subparagraph></paragraph><paragraph id="ID1393BF2474184F648606129FA884D200"><enum>(2)</enum><text>in section 1319A (12
U.S.C. 4520)—</text>
<subparagraph id="IDD422241988474F3DA3906E03E701BA13"><enum>(A)</enum><text>by striking <quote>(a)
<header-in-text level="subsection">In General</header-in-text>.—</quote>;
and</text>
</subparagraph><subparagraph id="ID16EF4EFF95F043F28141C8D96EDD31C9"><enum>(B)</enum><text>by striking subsection
(b);</text>
</subparagraph></paragraph><paragraph id="ID29AA9C3C98A54A7F8BC7C1D1A42EE592"><enum>(3)</enum><text>in section 1364(c) (12
U.S.C. 4614(c)), by striking the last sentence;</text>
</paragraph><paragraph id="IDDD6E2DBD22BA465CB14C987B29C8ED2B"><enum>(4)</enum><text>by striking section 1383
(<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note);</text>
</paragraph><paragraph id="IDE8CFD152BCAA45DB82F1339CC8903CB7"><enum>(5)</enum><text>in each of sections
1319D, 1319E, and 1319F (<external-xref legal-doc="usc" parsable-cite="usc/12/4523">12 U.S.C. 4523</external-xref>, 4524, 4525) by striking <quote>the
Office</quote> each place that term appears and inserting <quote>the
Agency</quote>; and</text>
</paragraph><paragraph id="ID7AF0981FF73444E1B5D3BCB3A8D06B59"><enum>(6)</enum><text>in each of sections 1319B
and 1369(a)(3) (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521</external-xref>, 4619(a)(3)), by striking <quote>Committee on
Banking, Finance and Urban Affairs</quote> each place such term appears and
inserting <quote>Committee on Financial Services</quote>.</text>
</paragraph></subsection><subsection id="ID818F5938B64A4AEE8842D1E52336140A"><enum>(b)</enum><header>Amendments to fannie
mae 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="IDC5E91CA60FE8403383DCE16163E45A03"><enum>(1)</enum><text>in each of sections
303(c)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1718">12 U.S.C. 1718(c)(2)</external-xref>), 309(d)(3)(B) (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)(3)(B)</external-xref>), and
309(k)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(k)(1)</external-xref>), by striking <quote>Director of the Office of
Federal Housing Enterprise Oversight of the Department of Housing and Urban
Development</quote> each place that term appears, and inserting <quote>Director
of the Federal Housing Finance Agency</quote>; and</text>
</paragraph><paragraph id="IDF4BA2FD7C1D548BE8A0CC281EEC816C5"><enum>(2)</enum><text>in section 309—</text>
<subparagraph id="ID9ACB58B3F6054FC7AE6787CE851B89FA"><enum>(A)</enum><text>in subsection (m) (12
U.S.C. 1723a(m))—</text>
<clause id="ID9DA5EE8D0522449285A230F71619098B"><enum>(i)</enum><text>in paragraph (1), by
striking <quote>to the Secretary, in a form determined by the Secretary</quote>
and inserting <quote>to the Director of the Federal Housing Finance Agency, in
a form determined by the Director</quote>; and</text>
</clause><clause id="ID77E9C12706E14024A25D03B5E7AAD680"><enum>(ii)</enum><text>in paragraph (2), by
striking <quote>to the Secretary, in a form determined by the Secretary</quote>
and inserting <quote>to the Director of the Federal Housing Finance Agency, in
a form determined by the Director</quote>;</text>
</clause></subparagraph><subparagraph id="IDC491BF5066454A87BF01001CC15B84D8"><enum>(B)</enum><text>in subsection (n) (12
U.S.C. 1723a(n))—</text>
<clause id="ID26CAB53A269944B7B2102F1C17525A50"><enum>(i)</enum><text>in paragraph (1), by
striking <quote>and the Secretary</quote> and inserting <quote>and the Director
of the Federal Housing Finance Agency</quote>; and</text>
</clause><clause id="ID8C51A2B6A45F4B94800CB79ABD5C3ADB"><enum>(ii)</enum><text>in paragraph (2), by
striking <quote>Secretary</quote> each place that term appears and inserting
<quote>Director of the Federal Housing Finance Agency</quote>; and</text>
</clause></subparagraph><subparagraph id="IDE5B952FB09DD4CF5873C57BF138F3BE9"><enum>(C)</enum><text>in paragraph (3)(B), by
striking <quote>Secretary</quote> and inserting <quote>Director of the Federal
Housing Finance Agency</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID1AD2493F27F94B5A9FFB35BE63A55F08"><enum>(c)</enum><header>Amendments to freddie
mac charter 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="ID0858472053EB4D409837BAEA6E2E29E7"><enum>(1)</enum><text>in each of sections
303(b)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(b)(2)</external-xref>), 303(h)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>), and section
307(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(c)(1)</external-xref>), by striking <quote>Director of the Office of
Federal Housing Enterprise Oversight of the Department of Housing and Urban
Development</quote> each place that term appears, and inserting <quote>Director
of the Federal Housing Finance Agency</quote>;</text>
</paragraph><paragraph id="ID747C880F5FA54AFB9FC9BDAEFDC634CB"><enum>(2)</enum><text>in section 306 (12 U.S.C.
1455)—</text>
<subparagraph id="ID42F166131BD742A9AC3B7CCDAE1AA33D"><enum>(A)</enum><text>in subsection (c)(2), by
inserting <quote>the</quote> after <quote>Secretary of</quote>;</text>
</subparagraph><subparagraph id="ID7E7DD640BD3C4104920C5DAC2A300975"><enum>(B)</enum><text>in subsection (i)—</text>
<clause id="IDF3024BB95865457A9DB20735D4E1037D"><enum>(i)</enum><text>by striking
<quote>section 1316(c)</quote> and inserting <quote>section 306(c)</quote>;
and</text>
</clause><clause id="IDE49E836034B04E9786B1A42E2C18DA63"><enum>(ii)</enum><text>by striking
<quote>section 106</quote> and inserting <quote>section 1316</quote>;
and</text>
</clause></subparagraph><subparagraph id="ID1D90EB883CAB41E6AF315EEA1CDFDD07"><enum>(C)</enum><text>in subsection (j)(2), by
striking <quote>of substantially</quote> and inserting <quote>or
substantially</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID14BFEE35D89D4AADB3561A5606D017DC"><enum>(3)</enum><text>in section 307 (12 U.S.C.
1456)—</text>
<subparagraph id="ID2F318E06747145538A76839A35ABA915"><enum>(A)</enum><text>in subsection (e)—</text>
<clause id="IDBCCA572D1F7640268AC8995DCA22FE39"><enum>(i)</enum><text>in paragraph (1), by
striking <quote>to the Secretary, in a form determined by the Secretary</quote>
and inserting <quote>to the Director of the Federal Housing Finance Agency, in
a form determined by the Director</quote>; and</text>
</clause><clause id="IDFA60563359784C0088F2F595EEE1FF2A"><enum>(ii)</enum><text>in paragraph (2), by
striking <quote>to the Secretary, in a form determined by the Secretary</quote>
and inserting <quote>to the Director of the Federal Housing Finance Agency, in
a form determined by the Director</quote>; and</text>
</clause></subparagraph><subparagraph id="ID96C3C8CF551845998A46C1205EF64105"><enum>(B)</enum><text>in subsection (f)—</text>
<clause id="ID0165235172FC48979DECCA3FBB96C8AA"><enum>(i)</enum><text>in paragraph (1), by
striking <quote>and the Secretary</quote> and inserting <quote>and the Director
of the Federal Housing Finance Agency</quote>;</text>
</clause><clause id="IDD03444C056CA48648F02F6F2E23118ED"><enum>(ii)</enum><text>in paragraph (2), by
striking <quote>the Secretary</quote> each place that term appears and
inserting <quote>the Director of the Federal Housing Finance Agency</quote>;
and</text>
</clause><clause id="ID5456DD4689704B7C94ECE04DFA3031EF"><enum>(iii)</enum><text>in paragraph (3)(B), by
striking <quote>Secretary</quote> and inserting <quote>Director of the Federal
Housing Finance Agency</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID4ADEFA4B57D54D66A6AC8C32957BDBE4"><enum>(d)</enum><header>Amendment to title 18,
united states code</header><text><external-xref legal-doc="usc" parsable-cite="usc/18/1905">Section 1905</external-xref> of title 18, United States Code,
is amended by striking <quote>Office of Federal Housing Enterprise
Oversight</quote> and inserting <quote>Federal Housing Finance
Agency</quote>.</text>
</subsection><subsection id="ID3ACFD69096F94BAE91BA2EE12F920CC8"><enum>(e)</enum><header>Amendments to 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 Office of Federal Housing Enterprise Oversight
of the Department of Housing and Urban Development</quote> and inserting
<quote>Director of the Federal Housing Finance Agency</quote>.</text>
</subsection><subsection id="ID14757715472B4461A55FBD8B6736EFB9"><enum>(f)</enum><header>Amendment to Department
of Housing and Urban Development Act</header><text>Section 5 of the Department
of Housing and Urban Development Act (<external-xref legal-doc="usc" parsable-cite="usc/42/3534">42 U.S.C. 3534</external-xref>) is amended by striking
subsection (d).</text>
</subsection><subsection id="IDA48439278C1F4BA8BBE67816368589A0"><enum>(g)</enum><header>Amendments to 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
striking the item relating to the Director of the Office of Federal Housing
Enterprise Oversight, Department of Housing and Urban Development and inserting
the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID6979AA444D334BAF8913731FB478C1CE" reported-display-style="italic" style="OLC">
<paragraph id="ID1B8BD0D15F324825B1C71B46DE401AD8"><enum></enum><text>Director of the Federal Housing Finance
Agency.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id46F24BA98B8B4E00B1F5E69B86F46543"><enum>(2)</enum><text>in section
3132(a)(1)—</text>
<subparagraph id="idC78459BD391A438DBA838AF1CD9428CE"><enum>(A)</enum><text>in subparagraph (B), by
striking <quote>,, and</quote> and inserting <quote>, and</quote>;</text>
</subparagraph><subparagraph id="id76D03736E96E4BDBA03BCC64B492E6BA"><enum>(B)</enum><text>in subparagraph
(D)—</text>
<clause id="id6B9F2B007EEC4D61BCBA8A28359F5CB3"><enum>(i)</enum><text>by striking <quote>the
Federal Housing Finance Board</quote>;</text>
</clause><clause id="idBBC7268590144A35AD1770C9C45D2FBA"><enum>(ii)</enum><text>by striking <quote>the
Office of Federal Housing Enterprise Oversight of the Department of Housing and
Urban Development</quote> and inserting <quote>the Federal Housing Finance
Agency</quote>; and</text>
</clause><clause id="id7243B3ED5A6A4DC8AC3C8DAC741658D3"><enum>(iii)</enum><text>by striking <quote>or
or</quote> at the end;</text>
</clause></subparagraph><subparagraph id="id4A1AA1F30CF34BCCABFF304F42EABF24"><enum>(C)</enum><text>in subparagraph (E), as
added by section 8(d)(1)(B)(iii) of <external-xref legal-doc="public-law" parsable-cite="pl/107/123">Public Law 107–123</external-xref>, by adding
<quote>or</quote> at the end; and</text>
</subparagraph><subparagraph id="id861C246B971E4EACAEDA707787B23AE3"><enum>(D)</enum><text>by redesignating
subparagraph (E), as added by section 10702(c)(1)(C) of <external-xref legal-doc="public-law" parsable-cite="pl/107/171">Public Law 107–171</external-xref>, as
subparagraph (F).</text>
</subparagraph></paragraph></subsection><subsection id="IDC80E1645DC7247A49811389FD9A949CE"><enum>(h)</enum><header>Amendment to
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>and the Director of the Federal Housing Finance
Agency,</quote> after <quote>Commission,</quote>.</text>
</subsection><subsection id="IDE2A5014637464670AF531BB127D85F30"><enum>(i)</enum><header>Amendment to Federal
Deposit Insurance Act</header><text>Section 11(t)(2)(A) of the Federal Deposit
Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(t)(2)(A)</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID3D37BE90078849ADA90EBD07F1FF03D4" reported-display-style="italic" style="OLC">
<clause id="IDE6773D9F2E03440095B04B298D300F9F"><enum>(vii)</enum><text>Federal Housing Finance
Agency.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID92C0852DCA6D4D669554A46D6F039E94"><enum>1162.</enum><header>Presidentially-appointed
directors of enterprises</header>
<subsection id="ID60AE5613F957417EAC666B8D6C29BB9B"><enum>(a)</enum><header>Fannie mae</header>
<paragraph id="IDA31D5AD62FF5416BA2AB23E9358F6DC5"><enum>(1)</enum><header>In
general</header><text>Section 308(b) of the Federal National Mortgage
Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended—</text>
<subparagraph id="ID576121D0FA7942EEB50DA9BD9D4E53F3"><enum>(A)</enum><text>in the first sentence, by
striking <quote>eighteen persons, five of whom shall be appointed annually by
the President of the United States, and the remainder of whom</quote> and
inserting <quote>13 persons, or such other number that the Director determines
appropriate, who</quote>;</text>
</subparagraph><subparagraph id="ID335DF817B5A14F28BE1E235BD8C8E3DC"><enum>(B)</enum><text>in the second sentence,
by striking <quote>appointed by the President</quote>;</text>
</subparagraph><subparagraph id="ID946D165442E34BB4BC40D96C5FA4A22E"><enum>(C)</enum><text>in the third
sentence—</text>
<clause id="ID64C2779CCD134DD9AC4120A4CD50925A"><enum>(i)</enum><text>by striking
<quote>appointed or</quote>; and</text>
</clause><clause id="IDD301230781B6416B9F3A1CC5BEBD1090"><enum>(ii)</enum><text>by striking <quote>,
except that any such appointed member may be removed from office by the
President for good cause</quote>;</text>
</clause></subparagraph><subparagraph id="ID831C4A68C09D4972A84CFF5F2CCB9F08"><enum>(D)</enum><text>in the fourth sentence,
by striking <quote>elective</quote>; and</text>
</subparagraph><subparagraph id="ID94C547C8E08C4B5A968EDE3BA6AC6198"><enum>(E)</enum><text>by striking the fifth
sentence.</text>
</subparagraph></paragraph><paragraph id="IDF340E01C31FE4643B0F52BFB1802755D"><enum>(2)</enum><header>Transitional
provision</header><text>The amendments made by paragraph (1) shall not apply to
any appointed position of the board of directors of the Federal National
Mortgage Association until the expiration of the annual term for such position
during which the effective date under section 1163 occurs.</text>
</paragraph></subsection><subsection id="ID2BF4CE58B2DE42179C94013D79A51B24"><enum>(b)</enum><header>Freddie mac</header>
<paragraph id="IDFF24FED0C6D1491C9489CB651417ED55"><enum>(1)</enum><header>In
general</header><text>Section 303(a)(2) of the Federal Home Loan Mortgage
Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(a)(2)</external-xref>) is amended—</text>
<subparagraph id="ID49615B5C5E56427482A5CFD794D8A1CE"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="IDA8260850341F4135A0594517EA231CD1"><enum>(i)</enum><text>in the first sentence, by
striking <quote>18 persons, 5 of whom shall be appointed annually by the
President of the United States and the remainder of whom</quote> and inserting
<quote>13 persons, or such other number as the Director determines appropriate,
who</quote>; and</text>
</clause><clause id="IDF147916A8C9C446797EC2F7E75606F10"><enum>(ii)</enum><text>in the second sentence,
by striking <quote>appointed by the President of the United
States</quote>;</text>
</clause></subparagraph><subparagraph id="ID745286B5CCF44D77AEC15195ABA80218"><enum>(B)</enum><text>in subparagraph
(B)—</text>
<clause id="ID0155AC761AA6407197BED8072A4F60FB"><enum>(i)</enum><text>by striking <quote>such
or</quote>; and</text>
</clause><clause id="IDD77344548AF949369D436A25ED4836D4"><enum>(ii)</enum><text>by striking <quote>,
except that any appointed member may be removed from office by the President
for good cause</quote>; and</text>
</clause></subparagraph><subparagraph id="ID6403F0FDA1534DB9ABB8020646334081"><enum>(C)</enum><text>in subparagraph
(C)—</text>
<clause id="ID41DB4FBA365547DFBA0BB721DEEEF31F"><enum>(i)</enum><text>by striking the first
sentence; and</text>
</clause><clause id="ID2C730CC8F99D4A648B2A4039C2A23386"><enum>(ii)</enum><text>by striking
<quote>elective</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="IDE71CE5FDC0E44709ADF03DB34096D709"><enum>(2)</enum><header>Transitional
provision</header><text>The amendments made by paragraph (1) shall not apply to
any appointed position of the board of directors of the Federal Home Loan
Mortgage Corporation until the expiration of the annual term for such position
during which the effective date under section 1163 occurs.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID6B499F632FF34DBBAB563D11D88575B8" section-type="subsequent-section"><enum>1163.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
specifically provided in this title, this title and the amendments made by this
title shall take effect on, and shall apply beginning on, the date of enactment
of this Act.</text>
</section></subtitle><enum>II</enum><header>Federal home loan
banks</header>
<section id="id42937A33013748CA80503B96767857D3"><enum>1201.</enum><header>Recognition of
distinctions between the enterprises and the Federal Home Loan
Banks</header><text display-inline="no-display-inline">Section 1313 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4513) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id33EF0EE7621344CA8F17F201C18D2AE8" reported-display-style="italic" style="OLC">
<subsection id="idC3CB3F5BC41A404793D2EE14D3559C4A"><enum>(f)</enum><header>Recognition of
distinctions between the Enterprises and the Federal Home Loan
Banks</header><text>Prior to promulgating any regulation or taking any other
formal or informal agency action of general applicability relating to the
Federal Home Loan Banks, including the issuance of an advisory document or
examination guidance, the Director shall consider the differences between the
Federal Home Loan Banks and the enterprises with respect to—</text>
<paragraph id="id505C1C34466149C9A7B54978153649F2"><enum>(1)</enum><text>the Banks'—</text>
<subparagraph id="id32C73DC8FBD4459EBF02ABA7C3E1E10F"><enum>(A)</enum><text>cooperative ownership
structure;</text>
</subparagraph><subparagraph id="id5F46D5737E2541B0828CD7176ADFDDDF"><enum>(B)</enum><text>the mission of providing
liquidity to members;</text>
</subparagraph><subparagraph id="id8F1A6185E3F0489B93273E9BD38F169E"><enum>(C)</enum><text>affordable housing and
community development mission;</text>
</subparagraph><subparagraph id="id69E5D9681F754ACD8E19EFAEB6E5A6BD"><enum>(D)</enum><text>capital structure;
and</text>
</subparagraph><subparagraph id="idF9F37566A54B4BBF8C18D8585FA9A572"><enum>(E)</enum><text>joint and several
liability; and</text>
</subparagraph></paragraph><paragraph id="id83DFAA3C5F7245AF900678951814C203"><enum>(2)</enum><text>any other differences
that the Director considers
appropriate.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID8107E47309584166ACB7FF5664A54C4F"><enum>1202.</enum><header>Directors</header><text display-inline="no-display-inline">Section 7 of the Federal Home Loan Bank Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended—</text>
<paragraph id="ID4300B118B5CD4A3684D4BF0F09FDA744"><enum>(1)</enum><text>by striking subsection
(a) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDCE7707B234834D838CC49FF9AE935B1D" reported-display-style="italic" style="OLC">
<subsection id="ID342695D2101D4B65855EA14A83A513D7"><enum>(a)</enum><header>Number; election;
qualifications; conflicts of interest</header>
<paragraph id="IDC30F6382B8DB417D809A77EFF6A93B03"><enum>(1)</enum><header>In
general</header><text>Subject to paragraphs (2) through (4), the management of
each Federal Home Loan Bank shall be vested in a board of 13 directors, or such
other number as the Director determines appropriate.</text>
</paragraph><paragraph id="ID049935483D204DBBA5E4E08F89069A1C"><enum>(2)</enum><header>Board
makeup</header><text>The board of directors of each Bank shall be comprised
of—</text>
<subparagraph id="ID608D6A30CCBB4ED68A70D3760B62FE38"><enum>(A)</enum><text>member directors, who
shall comprise at least the majority of the members of the board of directors;
and</text>
</subparagraph><subparagraph id="IDB1A38037054842CD85DA04385283B791"><enum>(B)</enum><text>independent directors,
who shall comprise not fewer than <fraction>2/5</fraction> of the members of
the board of directors.</text>
</subparagraph></paragraph><paragraph id="ID611DDAD1ECB84751B28F59D506FE2277"><enum>(3)</enum><header>Selection
criteria</header>
<subparagraph id="IDE051B9235C674CA6ABF4BEC8DC420175"><enum>(A)</enum><header>In
general</header><text>Each member of the board of directors shall be—</text>
<clause commented="no" id="ID41D0DB6B86F145A0B95F4B5B29B494B0"><enum>(i)</enum><text>elected by plurality vote
of the members, in accordance with procedures established under this section;
and</text>
</clause><clause id="ID25DA5E52C8354DE9941D6BDFA95D85AA"><enum>(ii)</enum><text>a citizen of the United
States.</text>
</clause></subparagraph><subparagraph id="ID00335553C8F64ADB934E5F04BC7B6E87"><enum>(B)</enum><header>Independent director
criteria</header>
<clause id="ID9262C6C677DD4D61B8CF38C393DFF2FB"><enum>(i)</enum><header>In
general</header><text>Each independent director that is not a public interest
director under clause (ii) shall have demonstrated knowledge of, or experience
in, financial management, auditing and accounting, risk management practices,
derivatives, project development, or organizational management, or such other
knowledge or expertise as the Director may provide by regulation.</text>
</clause><clause id="IDD43D8E702A2445ABB470A9B0CB899297"><enum>(ii)</enum><header>Public
interest</header><text>Not fewer than 2 of the independent directors shall have
more than 4 years of experience in representing consumer or community interests
on banking services, credit needs, housing, or financial consumer
protections.</text>
</clause><clause id="ID02A327222B5F446E89EEC1C3B85F4B1D"><enum>(iii)</enum><header>Conflicts of
interest</header><text>No independent director may, during the term of service
on the board of directors, serve as an officer of any Federal Home Loan Bank or
as a director, officer, or employee of any member of a Bank, or of any person
that receives advances from a Bank.</text>
</clause></subparagraph></paragraph><paragraph id="ID5238807223624335B796B442155C7F97"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<subparagraph id="ID4426F2CD8F9C46D48CC01C0E03087334"><enum>(A)</enum><header>Independent
director</header><text>The terms <term>independent director</term> and
<term>independent directorship</term> mean a member of the board of directors
of a Federal Home Loan Bank who is a bona fide resident of the district in
which the Federal Home Loan Bank is located, or the directorship held by such a
person, respectively.</text>
</subparagraph><subparagraph id="IDAA5456592DE342DAB52DAD8C9AE09B67"><enum>(B)</enum><header>Member
director</header><text>The terms <term>member director</term> and <term>member
directorship</term> mean a member of the board of directors of a Federal Home
Loan Bank who is an officer or director of a member institution that is located
in the district in which the Federal Home Loan Bank is located, or the
directorship held by such a person,
respectively.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID6C649A39D85C4BDCA3C966D8ED0A1851"><enum>(2)</enum><text>by striking
<quote>elective</quote> each place that term appears, other than in subsections
(d), (e), and (f), and inserting <quote>member</quote>;</text>
</paragraph><paragraph id="ID6F1CB8D0033545868871A4581C9792BD"><enum>(3)</enum><text>in subsection (b)—</text>
<subparagraph id="ID4ED274C7D9B74BA492EB1A616CA58A0C"><enum>(A)</enum><text>by striking the
subsection heading and all that follows through <quote>Each elective
directorship</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID7D1D6A4C46324F84A31390CAF3CD2962" reported-display-style="italic" style="OLC">
<subsection id="ID2946B84E35DB4EFDA8B5068F862DF4CE"><enum>(b)</enum><header>Directorships</header>
<paragraph id="IDAF33F4176CCE4E78B212BACA066C6496"><enum>(1)</enum><header>Member
directorships</header><text>Each member
directorship</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDACB98414DD684A25BAE36FA7B8148D56"><enum>(B)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID09A3D49242DD46BC9A6131375AA0D3CD" reported-display-style="italic" style="OLC">
<paragraph id="IDFDE9E8CC3A9244F48624DBF3FB0CF5D4"><enum>(2)</enum><header>Independent
directorships</header>
<subparagraph id="IDFE3F0FB0FFD1435A80CCB2D7A860CED5"><enum>(A)</enum><header>Elections</header><text>Each
independent director—</text>
<clause id="ID67C3AD44B0B543EFA8A48ACD49270C75"><enum>(i)</enum><text>shall be elected by the
members entitled to vote, from among eligible persons nominated, after
consultation with the Advisory Council of the Bank, by the board of directors
of the Bank; and</text>
</clause><clause id="ID50AD8F1AE61E46E8A1DD0E6552E33BC0"><enum>(ii)</enum><text>shall be elected by a
plurality of the votes of the members of the Bank at large, with each member
having the number of votes for each such directorship as it has under paragraph
(1) in an election to fill member directorships.</text>
</clause></subparagraph><subparagraph id="ID9A68946C100B4BDDA5EDB52B1709F861"><enum>(B)</enum><header>Criteria</header><text>Nominees
shall meet all applicable requirements prescribed in this section.</text>
</subparagraph><subparagraph id="ID13EABC2863D6435891B321B090F58C97"><enum>(C)</enum><header>Nomination and election
procedures</header><text>Procedures for nomination and election of independent
directors shall be prescribed by the bylaws of each Federal Home Loan Bank, in
a manner consistent with the rules and regulations of the
Agency.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id4C561FE9984C4A4BAD3C944F070FC476"><enum>(4)</enum><text>in subsection (c)—</text>
<subparagraph id="id48E489BD0802467980D47F0BFB8F4B4F"><enum>(A)</enum><text>by striking
<quote>elective</quote> each place that term appears and inserting
<quote>member</quote>, except—</text>
<clause id="id34D93DB693164BD5B7CEA759C06BC002"><enum>(i)</enum><text>in the second sentence,
the second place that term appears; and</text>
</clause><clause id="id9EDC3DECA62F4F868E127F195114F4E1"><enum>(ii)</enum><text>each place that term
appears in the fifth sentence; and</text>
</clause></subparagraph><subparagraph id="id0EEF36D2BDE84102B1E5D55BF997D41C"><enum>(B)</enum><text>in the second
sentence—</text>
<clause id="id180035518E2E49788ECE4D49036E5F9B"><enum>(i)</enum><text>by inserting <quote>(A)
except as provided in clause (B) of this sentence,</quote> before <quote>if at
any time</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4612C60DCD874969AE0F03C025FC638F"><enum>(ii)</enum><text>by inserting before the
period at the end the following: <quote>, and (B) clause (A) of this sentence
shall not apply to the directorships of any Federal Home Loan Bank resulting
from the merger of any 2 or more such Banks</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="IDB13C3AB30793435E8A3E3F673803EB9A"><enum>(5)</enum><text>in subsection (d)—</text>
<subparagraph id="IDB3C3B7D9B7304C47AC40DF15C9B35FD8"><enum>(A)</enum><text>in the first
sentence—</text>
<clause id="ID909D12A6936A4C999163602B008279EE"><enum>(i)</enum><text>by striking <quote>,
whether elected or appointed,</quote>; and</text>
</clause><clause id="ID1E36B2E8891242F4B5F8E6CD3A36117E"><enum>(ii)</enum><text>by striking <quote>3
years</quote> and inserting <quote>4 years</quote>;</text>
</clause></subparagraph><subparagraph id="IDD2B19C07D93E4DEAB3C9CF7B44D3CAF1"><enum>(B)</enum><text>in the second
sentence—</text>
<clause id="IDC1F9C3A6DB7544B6B4C1DA92FF4572B4"><enum>(i)</enum><text>by striking
<quote>Federal Home Loan Bank System Modernization Act of 1999</quote> and
inserting <quote><short-title>Federal Housing Finance
Regulatory Reform Act of 2008</short-title></quote>;</text>
</clause><clause id="IDACA61C8E4E72407199B14FDD5412DD16"><enum>(ii)</enum><text>by striking
<quote><fraction>1/3</fraction></quote> and inserting
<quote><fraction>1/4</fraction></quote>; and</text>
</clause><clause id="IDBD1E69FE330E4F09AF68E9515B267F43"><enum>(iii)</enum><text>by striking <quote>or
appointed</quote>; and</text>
</clause></subparagraph><subparagraph id="IDBADB31008C5B4797A23C6C536AAB23D2"><enum>(C)</enum><text>in the third
sentence—</text>
<clause id="ID2328A6F331564549B25DFB9E0560219D"><enum>(i)</enum><text>by striking <quote>an
elective</quote> each place that term appears and inserting <quote>a</quote>;
and</text>
</clause><clause id="ID7268D25DF9CF44C2847383F3224E2E78"><enum>(ii)</enum><text>by striking <quote>in
any elective directorship or elective directorships</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="ID1099916A0DC7467C8440693957A66AC2"><enum>(6)</enum><text>in subsection (f)—</text>
<subparagraph id="IDE7F6E76F213E4FE8AD46AA62ED2FD749"><enum>(A)</enum><text>by striking paragraph
(2);</text>
</subparagraph><subparagraph id="ID96C49B5BB5B540F59F624DBF07D647FD"><enum>(B)</enum><text>by striking
<quote>appointed or</quote> each place that term appears; and</text>
</subparagraph><subparagraph id="ID8001AEAC6C85466C8481DBAF34EC62D7"><enum>(C)</enum><text>in paragraph (3)—</text>
<clause id="ID0193BFFB7319464A9E18CCDC2D33E97D"><enum>(i)</enum><text>by striking <quote>(3)
<header-in-text level="paragraph">Elected bank
directors</header-in-text>.—</quote> and inserting <quote>(2)
<header-in-text level="paragraph">Election process</header-in-text>.—</quote>;
and</text>
</clause><clause id="ID74D34C468606415B870C0C075C344FAC"><enum>(ii)</enum><text>by striking
<quote>elective</quote> each place that term appears;</text>
</clause></subparagraph></paragraph><paragraph id="ID03C9D9C24C894F9C9534E59182864742"><enum>(7)</enum><text>in subsection (i)—</text>
<subparagraph id="ID6D081865C7664C4CB1C2BA185F425DD8"><enum>(A)</enum><text>in paragraph (1), by
striking <quote>Subject to paragraph (2), each</quote> and inserting
<quote>Each</quote>; and</text>
</subparagraph><subparagraph id="ID52F572D3C3764A058C08AB96662D3C37"><enum>(B)</enum><text>by striking paragraph (2)
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id066346D505A9443DBCEAA98AAD97558B" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID29C6FF4E0E0847619D4FED861D04E51E"><enum>(2)</enum><header display-inline="yes-display-inline">Annual report</header><text display-inline="yes-display-inline">The Director shall include, in the annual
report submitted to the Congress pursuant to section 1319B of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992, information
regarding the compensation and expenses paid by the Federal Home Loan Banks to
the directors on the boards of directors of the
Banks.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID930872291188465BAB4C66263116701F"><enum>(8)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID0BBDD0CF56B244F09AD58403D5B5696C" reported-display-style="italic" style="OLC">
<subsection id="IDAF5387A0A6414E1A86621C1E07863B9F"><enum>(l)</enum><header>Transition
rule</header><text>Any member of the board of directors of a Bank elected or
appointed in accordance with this section prior to the date of enactment of
this subsection may continue to serve as a member of that board of directors
for the remainder of the existing term of
service.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID8C4F82C7481549E69F7D8CB6E0D905B3"><enum>1203.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 2 of the Federal Home Loan Bank Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422</external-xref>) is amended—</text>
<paragraph id="ID75226DA34B82496E980809119A7CBE23"><enum>(1)</enum><text>by striking paragraphs
(1), (10), and (11);</text>
</paragraph><paragraph id="ID9A6F5B7E43AF44A8A9E218E928B2BDDC"><enum>(2)</enum><text>by redesignating
paragraphs (2) through (9) as paragraphs (1) through (8), respectively;</text>
</paragraph><paragraph id="IDC27CB8A9FA374074914D972296BDB634"><enum>(3)</enum><text>by redesignating
paragraphs (12) and (13) as paragraphs (9) and (10), respectively; and</text>
</paragraph><paragraph id="IDA68179D27E544B9C80E1321DB2790A07"><enum>(4)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID3CCF8D6856404539881708DE08C09B0E" reported-display-style="italic" style="OLC">
<paragraph id="IDB7EA3C026FA341C9BE21C3A68C1985DC"><enum>(11)</enum><header>Director</header><text>The
term <term>Director</term> means the Director of the Federal Housing Finance
Agency.</text>
</paragraph><paragraph id="ID7FF7402C5A574B8DBA2063B8B94821F2"><enum>(12)</enum><header>Agency</header><text>The
term <term>Agency</term> means the Federal Housing Finance Agency, established
under section 1311 of the Federal Housing Enterprises Financial Safety and
Soundness Act of
1992.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID479964F7B0474D6DB0D9B937201C8DA4"><enum>1204.</enum><header>Agency oversight of
Federal Home Loan Banks</header><text display-inline="no-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>), other than in provisions
of that Act added or amended otherwise by this Act, is amended—</text>
<paragraph id="ID0579D79F18C6449E86D5410C7552364F"><enum>(1)</enum><text>by striking sections 2A
and 2B (<external-xref legal-doc="usc" parsable-cite="usc/12/1422a">12 U.S.C. 1422a</external-xref>, 1422b);</text>
</paragraph><paragraph id="ID1D33AEB93B9744E3973128CDD1262944"><enum>(2)</enum><text>by striking section 18
(<external-xref legal-doc="usc" parsable-cite="usc/12/1438">12 U.S.C. 1438</external-xref>) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idECAFAE82ECEA4788AA54C33FE7C4ADF3" reported-display-style="italic" style="OLC">
<section id="idEB3526F590A9438E91611B8E8DE2C787"><enum>18.</enum><header>Administrative
provisions</header>
<subsection commented="no" display-inline="no-display-inline" id="ID2A34455BF1AD49E48EEADE18820868AE"><enum>(a)</enum><header>Acquisition
authority</header><text>The Director of the Office of Thrift Supervision,
utilizing the services of the Administrator of General Services (hereinafter
referred to as the <quote>Administrator</quote>), and subject to any limitation
hereon which may hereafter be imposed in appropriation Acts, is hereby
authorized—</text>
<paragraph id="IDA832E9BE390D426C8DA86C3A2D849B1F"><enum>(1)</enum><text>to acquire, in the name
of the United States, real property in the District of Columbia, for the
purposes set forth in this section;</text>
</paragraph><paragraph id="IDBF80FAB2B98040E8BFAD1FD375AB6BD8"><enum>(2)</enum><text>to construct, develop,
furnish, and equip such buildings thereon and such facilities as in its
judgment may be appropriate to provide, to such extent as the Director of the
Office of Thrift Supervision may deem advisable, suitable and adequate quarters
and facilities for the Director of the Office of Thrift Supervision and the
agencies under its administration or supervision;</text>
</paragraph><paragraph id="ID1D74F1643BE940748547E0735ADCD05C"><enum>(3)</enum><text>to enlarge, remodel, or
reconstruct any of the same; and</text>
</paragraph><paragraph id="ID60B7FD59A839455AB9454E036A94ACC8"><enum>(4)</enum><text>to make or enter into
contracts for any of the foregoing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5A8DB818477A4115B4A916BC45D57A01"><enum>(b)</enum><header>Advances</header><text>The
Director of the Office of Thrift Supervision may require of the respective
banks, and they shall make to the Director of the Office of Thrift Supervision,
such advances of funds for the purposes set out in subsection (a) as in the
sole judgment of the Director of the Office of Thrift Supervision may from time
to time be advisable. Such advances shall be apportioned by the Director of the
Office of Thrift Supervision among the banks in proportion to the total assets
of the respective banks, determined in such manner and as of such times as the
Director of the Office of Thrift Supervision may prescribe. Each such advance
shall bear interest at the rate of 4½ per centum per annum from the date of the
advance and shall be repaid by the Director of the Office of Thrift Supervision
in such installments and over such period, not longer than twenty-five years
from the making of the advance, as the Director of the Office of Thrift
Supervision may determine. Payments of interest and principal upon such
advances shall be made from receipts of the Director of the Office of Thrift
Supervision or from other sources which may from time to time be available to
the Director of the Office of Thrift Supervision. The obligation of the
Director of the Office of Thrift Supervision to make any such payment shall not
be regarded as an obligation of the United States. To such extent as the
Director of the Office of Thrift Supervision may prescribe any such obligation
shall be regarded as a legal investment for the purposes of subsections (g) and
(h) of section 11 and for the purposes of section 16.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID0422F5BF5A7B45FDBF74D4AE639B3565"><enum>(c)</enum><header>Plans and
designs</header><text>The plans and designs for such buildings and facilities
and for any such enlargement, remodeling, or reconstruction shall, to such
extent as the chairperson of the Director of the Office of Thrift Supervision
may request, be subject to the approval of the Director.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDBCE76F923382420DABFC099C6D25505F"><enum>(d)</enum><header>Custody, management and
control</header><text>Upon the making of arrangements mutually agreeable to the
Director of the Office of Thrift Supervision and the Administrator, which
arrangements may be modified from time to time by mutual agreement between them
and may include but shall not be limited to the making of payments by the
Director of the Office of Thrift Supervision and such agencies to the
Administrator and by the Administrator to the Director of the Office of Thrift
Supervision, the custody, management, and control of such buildings and
facilities and of such real property shall be vested in the Administrator in
accordance therewith. Until the making of such arrangements, such custody,
management, and control, including the assignment and allotment and the
reassignment and reallotment of building and other space, shall be vested in
the Director of the Office of Thrift Supervision.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4003ACC42A334516B12A684ED57F1C92"><enum>(e)</enum><header>Proceeds</header><text>Any
proceeds (including advances) received by the Director of the Office of Thrift
Supervision in connection with this subsection, and any proceeds from the sale
or other disposition of real or other property acquired by the Director of the
Office of Thrift Supervision under this section, shall be considered as
receipts of the Director of the Office of Thrift Supervision, and obligations
and expenditures of the Director of the Office of Thrift Supervision and such
agencies in connection with this section shall not be considered as
administrative expenses. As used in this section, the term
<term>property</term> shall include interests in property.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID496D09D08B3C4E9DA9B1EBE818863BA1"><enum>(f)</enum><header>Budget program</header>
<paragraph commented="no" display-inline="no-display-inline" id="idF229AC6CADA245F4BD39B6791C255563"><enum>(1)</enum><header>In
general</header><text>With respect to its functions under this section, the
Director of the Office of Thrift Supervision shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3675C32880E84E398DAA846787A13DF3"><enum>(A)</enum><text>annually prepare and
submit a budget program as provided in title I of the Government Corporation
Control Act with regard to wholly owned Government corporations, and for
purposes of this paragraph, the terms <term>wholly owned Government
corporations</term> and <quote>Government corporations</quote>, wherever used
in such title, shall include the Director of the Office of Thrift Supervision;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA540A10E1B8B4D4CA9098029313E8F07"><enum>(B)</enum><text>maintain an integral set
of accounts which shall be audited by the General Accounting Office in
accordance with the principles and procedures applicable to commercial
corporate transactions, as provided in such title, and no other settlement or
adjustment shall be required with respect to transactions under this section or
with respect to claims, demands, or accounts by or against any person arising
thereunder.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDFB3F6EE8EEB4ED0B79715B3DAC6F020"><enum>(2)</enum><header>Miscellaneous
provisions</header><text>The first budget program shall be for the first full
fiscal year beginning on or after the date of enactment of this subsection.
Except as otherwise provided in this section or by the Director of the Office
of Thrift Supervision, the provisions of this section and the functions thereby
or thereunder subsisting shall be applicable and exercisable notwithstanding
and without regard to the Act of June 20, 1938 (D.C. Code, secs. 5–413—5–428),
except that the proviso of section 16 thereof shall apply to any building
constructed under this section, and section 306 of the Act of July 30, 1947 (61
Stat. 584), or any other provision of law relating to the construction,
alteration, repair, or furnishing of public or other buildings or structures or
the obtaining of sites therefor, but any person or body in whom any such
function is vested may provide for delegation or redelegation of the exercise
of such function.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDDAA4A2B576834DDE973D9E46E9F2CA85"><enum>(g)</enum><header>Limitation</header><text>No
obligation shall be incurred and no expenditure, except in liquidation of
obligation, shall be made pursuant to paragraphs (1) and (2) of subsection (a),
if the total amount of all obligations incurred pursuant thereto would
thereupon exceed $13,200,000, or such greater amount as may be provided in an
appropriations Act or other
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID9E1E61E15F0748C9A49A85155D3319F5"><enum>(3)</enum><text>in section 11 (12 U.S.C.
1431)—</text>
<subparagraph id="IDC795E004E73B4EE3ABFBC528D9215DA8"><enum>(A)</enum><text>in subsection (b)—</text>
<clause id="IDE6A059E1909740DE87235ED3F615F48A"><enum>(i)</enum><text>in the first
sentence—</text>
<subclause id="IDCB4D0CBA0D9D4F368EF04AFE23383C3D"><enum>(I)</enum><text>by striking <quote>The
Board</quote> and inserting <quote>The Office of Finance, as agent for the
Banks,</quote>; and</text>
</subclause><subclause id="ID209B20036F9641A09A797DCFC2C2A6C3"><enum>(II)</enum><text>by striking <quote>the
Board</quote> and inserting <quote>such Office</quote>; and</text>
</subclause></clause><clause id="IDE441F19261424A9A99F96CB7EBA91EAE"><enum>(ii)</enum><text>in the second and fourth
sentences, by striking <quote>the Board</quote> each place such term appears
and inserting <quote>the Office of Finance</quote>;</text>
</clause></subparagraph><subparagraph id="IDC9B5E52551E341C896225735E1285500"><enum>(B)</enum><text>in subsection (c)—</text>
<clause id="ID90D68BEF74E5419F85D286528ECFA6B4"><enum>(i)</enum><text>by striking <quote>the
Board</quote> the first place such term appears and inserting <quote>the Office
of Finance, as agent for the Banks,</quote>; and</text>
</clause><clause id="IDDEBCCA4B39264FCEA77276A935646727"><enum>(ii)</enum><text>by striking <quote>the
Board</quote> the second place such term appears and inserting <quote>such
Office</quote>; and</text>
</clause></subparagraph><subparagraph id="IDA906E80A5D394969831212A6FF357ACE"><enum>(C)</enum><text>in subsection (f)—</text>
<clause id="IDAA66D515077B4C4FB2DDD779D0B6992D"><enum>(i)</enum><text>by striking the 2 commas
after <quote>permit</quote> and inserting <quote>or</quote>; and</text>
</clause><clause id="ID94674EB017F14C0E8E0EA41A3089DB4C"><enum>(ii)</enum><text>by striking the comma
after <quote>require</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="ID4B5335461D2B4EB7B8FAD765E575722B"><enum>(4)</enum><text>in section 6 (12 U.S.C.
1426)—</text>
<subparagraph id="IDF365FDBFA0AE4592BF076E1401D5F579"><enum>(A)</enum><text>in subsection (b)(1), in
the matter preceding subparagraph (A), by striking <quote>Finance Board
approval</quote> and inserting <quote>approval by the Director</quote>;
and</text>
</subparagraph><subparagraph id="IDF6F0AD6D64384F449FEDE2D0EC2B5961"><enum>(B)</enum><text>in each of subsections
(c)(4)(B) and (d)(2), by striking <quote>Finance Board regulations</quote> each
place that term appears and inserting <quote>regulations of the
Director</quote>;</text>
</subparagraph></paragraph><paragraph id="ID0589DBDFF80C417A8119A4F8453E8672"><enum>(5)</enum><text>in section 10(b) (12
U.S.C. 1430(b))—</text>
<subparagraph id="IDB734E41D4BD249519BDD31BD560D7843"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection">Formal Board
Resolution</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Approval of Director</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="IDABB491EB39F84951830F78AD2FC3B6D0"><enum>(B)</enum><text>by striking <quote>by
formal resolution</quote>;</text>
</subparagraph></paragraph><paragraph id="IDD883C9C6BF3A40E58397FAE28EB91D35"><enum>(6)</enum><text>in section 21(b)(5) (12
U.S.C. 1441(b)(5)), by striking <quote>Chairperson of the Federal Housing
Finance Board</quote> and inserting <quote>Director</quote>;</text>
</paragraph><paragraph id="IDA230B20D49674868BD10FBCB3FD305EA"><enum>(7)</enum><text>in section 15 (12 U.S.C.
1435), by inserting <quote>or the Director</quote> after <quote>the
Board</quote>;</text>
</paragraph><paragraph id="ID8B12AE72DB45493E940648971BE56A88"><enum>(8)</enum><text>by striking <quote>the
Board</quote> each place that term appears and inserting <quote>the
Director</quote>;</text>
</paragraph><paragraph id="IDE1195A5C62284C108A9989FA4934E47A"><enum>(9)</enum><text>by striking <quote>The
Board</quote> each place that term appears and inserting <quote>The
Director</quote>;</text>
</paragraph><paragraph id="IDC018935446914C0CA5C70084AA8EA3A3"><enum>(10)</enum><text>by striking <quote>the
Finance Board</quote> each place that term appears and inserting <quote>the
Director</quote>;</text>
</paragraph><paragraph id="ID5232534244EA4D4D9612A07D1C81FC7D"><enum>(11)</enum><text>by striking <quote>The
Finance Board</quote> each place that term appears and inserting <quote>The
Director</quote>; and</text>
</paragraph><paragraph id="ID9CE9DF809F674B37815EC25827D7D5B8"><enum>(12)</enum><text>by striking
<quote>Federal Housing Finance Board</quote> each place that term appears and
inserting <quote>Director</quote>.</text>
</paragraph></section><section id="idEA68012E15FF4E9D877383AE28D97E99"><enum>1205.</enum><header>Housing
goals</header><text display-inline="no-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 by inserting after section 10b the
following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id129BCBE32DC447D7B1CB3611DC3FD8CF" reported-display-style="italic" style="OLC">
<section id="IDf66700929d404362b6d0e3cd5c1fbaa8"><enum>10C.</enum><header>Housing goals</header>
<subsection id="IDad56db9f715b480a842777ea956a3b00"><enum>(a)</enum><header>In
general</header><text>The Director shall establish housing goals with respect
to the purchase of mortgages, if any, by the Federal Home Loan Banks. Such
goals shall be consistent with the goals established under sections 1331
through 1334 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992.</text>
</subsection><subsection id="IDed26205f623f42738630a554b95d9a32"><enum>(b)</enum><header>Considerations</header><text>In
establishing the goals required by subsection (a), the Director shall consider
the unique mission and ownership structure of the Federal Home Loan
Banks.</text>
</subsection><subsection id="ID8d28a96e281d43129676dd46deaca312"><enum>(c)</enum><header>Transition
period</header><text>To facilitate an orderly transition, the Director shall
establish interim target goals for purposes of this section for each of the 2
calendar years following the date of enactment of this section.</text>
</subsection><subsection id="ID5300a6eba9f0460da1f711f7effab2cd"><enum>(d)</enum><header>Monitoring and
enforcement of goals</header><text>The requirements of section 1336 of the
Federal Housing Enterprises Safety and Soundness Act of 1992, shall apply to
this section, in the same manner and to the same extent as that section applies
to the Federal housing enterprises.</text>
</subsection><subsection id="ID1693fb06d95d4e5b8bb7dc4acdddb54b"><enum>(e)</enum><header>Annual
report</header><text>The Director shall annually report to Congress on the
performance of the Banks in meeting the goals established under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID3B8CBE0A9A9640729DCEA02AE12EF583"><enum>1206.</enum><header>Community development
financial institutions</header><text display-inline="no-display-inline">Section
4(a)(1) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1424">12 U.S.C. 1424(a)(1)</external-xref>) is
amended—</text>
<paragraph id="ID0C2FBADF038E425FA64FA9BD06912C72"><enum>(1)</enum><text>by inserting after
<quote>savings bank,</quote> the following: <quote>community development
financial institution,</quote>; and</text>
</paragraph><paragraph id="ID8F745840BB5D43539E0A87B5028D2DB4"><enum>(2)</enum><text>in subparagraph (B), by
inserting after <quote>United States,</quote> the following: <quote>or, in the
case of a community development financial institution, is certified as a
community development financial institution under the Community Development
Banking and Financial Institutions Act of 1994.</quote>.</text>
</paragraph></section><section id="IDBBEAF9857ADD4E18BADBE265F4720E04"><enum>1207.</enum><header>Sharing of
information among Federal Home Loan Banks</header><text display-inline="no-display-inline">The Federal Home Loan Bank Act is amended by
inserting after section 20 (<external-xref legal-doc="usc" parsable-cite="usc/12/1440">12 U.S.C. 1440</external-xref>) the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDED962337A047409BAF260B617D484069" reported-display-style="italic" style="OLC">
<section id="ID09FA533409714281A03CA93CD67BFEE1"><enum>20A.</enum><header>Sharing of information
among Federal Home Loan Banks</header>
<subsection id="ID81B34E8932E341B3A9311AA640893101"><enum>(a)</enum><header>Information on
financial condition</header><text>In order to enable each Federal Home Loan
Bank to evaluate the financial condition of one or more of the other Federal
Home Loan Banks individually and the Federal Home Loan Bank System (including
any risks associated with the issuance or repayment of consolidated Federal
Home Loan Bank bonds and debentures or other borrowings and the joint and
several liabilities of the Banks incurred due to such borrowings), as well as
to comply with any of its obligations under the Securities Exchange Act of 1934
(<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>), the Director shall make available to the Banks such
reports, records, or other information as may be available, relating to the
condition of any Federal Home Loan Bank.</text>
</subsection><subsection id="ID51004BD6DA2B4B06B0BEB90E842DBEEF"><enum>(b)</enum><header>Sharing of
information</header>
<paragraph id="ID5B2A8ABDE7A448F0BF0AA6F2522AA833"><enum>(1)</enum><header>In
general</header><text>The Director shall promulgate regulations to facilitate
the sharing of information made available under subsection (a) directly among
the Federal Home Loan Banks.</text>
</paragraph><paragraph id="ID9C4C6FAE902E49738A96EAE0DAE5A527"><enum>(2)</enum><header>Limitation</header><text>Notwithstanding
paragraph (1), a Federal Home Loan Bank responding to a request from another
Bank or from the Director for information pursuant to this section may request
that the Director determine that such information is proprietary and that the
public interest requires that such information not be shared.</text>
</paragraph></subsection><subsection id="IDB28FFA3482BA454C84F2A15E14C61632"><enum>(c)</enum><header>Limitation</header><text>Nothing
in this section shall affect the obligations of any Federal Home Loan Bank
under the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a et seq.</external-xref>) or the
regulations issued by the Securities and Exchange Commission
thereunder.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDE3E9DFC337874C6AB9DBD330B55A3B81"><enum>1208.</enum><header>Exclusion from
certain requirements</header>
<subsection id="ID1488B5DF44CC4716B907062EEED62979"><enum>(a)</enum><header>In
general</header><text>The Federal Home Loan Banks shall be exempt from
compliance with—</text>
<paragraph id="ID5046C3DA7B394ADB99E5B83836A11E81"><enum>(1)</enum><text>sections 13(e), 14(a),
and 14(c) of the Securities Exchange Act of 1934, and related Commission
regulations;</text>
</paragraph><paragraph id="ID4D1F194BAAD144D0993E2DD235206C97"><enum>(2)</enum><text>section 15 of the
Securities Exchange Act of 1934, and related Commission regulations, with
respect to transactions in the capital stock of a Federal Home Loan
Bank;</text>
</paragraph><paragraph id="idBE3572A5259A4BF1AAAC613F53278D3B"><enum>(3)</enum><text>section 17A of the
Securities Exchange Act of 1934, and related Commission regulations, with
respect to the transfer of the securities of a Federal Home Loan Bank;
and</text>
</paragraph><paragraph id="id14AF851C09974C9796F227EC00471F2F"><enum>(4)</enum><text>the Trust Indenture Act
of 1939.</text>
</paragraph></subsection><subsection id="IDFEFD5A739E114E8886CBBFF0E67DD990"><enum>(b)</enum><header>Member
exemption</header><text>The members of the Federal Home Loan Bank System shall
be exempt from compliance with sections 13(d), 13(f), 13(g), 14(d), and 16 of
the Securities Exchange Act of 1934, and related Commission regulations, with
respect to ownership of or transactions in the capital stock of the Federal
Home Loan Banks by such members.</text>
</subsection><subsection id="ID2801430C691B41B6B3B8D2B8B411C5A8"><enum>(c)</enum><header>Exempted and government
securities</header>
<paragraph id="IDB42BAA50C83A4F1BB768A2C78FCD61B3"><enum>(1)</enum><header>Capital
stock</header><text>The capital stock issued by each of the Federal Home Loan
Banks under section 6 of the Federal Home Loan Bank Act are—</text>
<subparagraph id="ID7674F115AE044759AD2AEDD15D8D9B31"><enum>(A)</enum><text>exempted securities,
within the meaning of section 3(a)(2) of the Securities Act of 1933; and</text>
</subparagraph><subparagraph id="ID4DBADBA37DC4480F9970CE7BD329E716"><enum>(B)</enum><text>exempted securities,
within the meaning of section 3(a)(12)(A) of the Securities Exchange Act of
1934, except to the extent provided in section 38 of that Act.</text>
</subparagraph></paragraph><paragraph id="ID1690FA2F69F6422C998CA68E72109CCD"><enum>(2)</enum><header>Other
obligations</header><text>The debentures, bonds, and other obligations issued
under 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>) are—</text>
<subparagraph id="IDA730E0D0E31D4E5B81FCE280498C67F1"><enum>(A)</enum><text>exempted securities,
within the meaning of section 3(a)(2) of the Securities Act of 1933;</text>
</subparagraph><subparagraph id="ID516EEA874F0145B6B16325C7E7DC9B7F"><enum>(B)</enum><text>government securities,
within the meaning of section 3(a)(42) of the Securities Exchange Act of 1934;
and</text>
</subparagraph><subparagraph id="IDAFB4FAA7BDD2422293CC69FE911AD8A0"><enum>(C)</enum><text>government securities,
within the meaning of section 2(a)(16) of the Investment Company Act of
1940.</text>
</subparagraph></paragraph><paragraph id="ID63E87FB841F3441CA5A372D6C793E79A"><enum>(3)</enum><header>Brokers and
dealers</header><text>A person (other than a Federal Home Loan Bank effecting
transactions for members of the Federal Home Loan Bank System) that effects
transactions in the capital stock or other obligations of a Federal Home Loan
Bank, for the account of others or for that person's own account, as
applicable, is a broker or dealer, as those terms are defined in paragraphs (4)
and (5), respectively, of section 3(a) of the Securities Exchange Act of 1934,
but is excluded from the definition of—</text>
<subparagraph id="ID8DB9CDA65C2C411999E7CF8E1077CF0B"><enum>(A)</enum><text>the term <term>government
securities broker</term> under section 3(a)(43) of the Securities Exchange Act
of 1934; and</text>
</subparagraph><subparagraph id="ID0E097D56EA6849F7963AF7CA424DFEAA"><enum>(B)</enum><text>the term <term>government
securities dealer</term> under section 3(a)(44) of the Securities Exchange Act
of 1934.</text>
</subparagraph></paragraph></subsection><subsection id="IDB4D8B73CF5B94D1EBBAB1A0521DE7E3E"><enum>(d)</enum><header>Exemption from
reporting requirements</header><text>The Federal Home Loan Banks shall be
exempt from periodic reporting requirements under the securities laws
pertaining to the disclosure of—</text>
<paragraph id="IDD6F83812416348E19884CAA452416AF4"><enum>(1)</enum><text>related party
transactions that occur in the ordinary course of the business of the Banks
with members; and</text>
</paragraph><paragraph id="IDF7C32B779155425DB5150651A2BB2AB9"><enum>(2)</enum><text>the unregistered sales of
equity securities.</text>
</paragraph></subsection><subsection id="ID6FE7F0C9B3334E00951D29E24D9BA4A4"><enum>(e)</enum><header>Tender
offers</header><text>Commission rules relating to tender offers shall not apply
in connection with transactions in the capital stock of the Federal Home Loan
Banks.</text>
</subsection><subsection id="IDBF52C239025446D3B6B87F79B2342DA1"><enum>(f)</enum><header>Regulations</header>
<paragraph commented="no" display-inline="no-display-inline" id="idD84BDF60D10B43B49A7354F72E512F79"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Commission shall promulgate such rules
and regulations as may be necessary or appropriate in the public interest or in
furtherance of this section and the exemptions provided in this section.</text>
</paragraph><paragraph id="ID85B0A6A819BA41988BC1FECE403ADF3E"><enum>(2)</enum><header>Considerations</header><text>In
issuing regulations under this section, the Commission shall consider the
distinctive characteristics of the Federal Home Loan Banks when
evaluating—</text>
<subparagraph id="IDFE62190EAFD0436B810231A4D5432A4F"><enum>(A)</enum><text>the accounting treatment
with respect to the payment to the Resolution Funding Corporation;</text>
</subparagraph><subparagraph id="IDA9341F6F0C32447DA4E8FABB2ECCF645"><enum>(B)</enum><text>the role of the combined
financial statements of the Federal Home Loan Banks;</text>
</subparagraph><subparagraph id="IDBFFDBB2B99454475BDDC5D1653070B37"><enum>(C)</enum><text>the accounting
classification of redeemable capital stock; and</text>
</subparagraph><subparagraph id="IDA0B6708A80724976ADB3313E9E9361A9"><enum>(D)</enum><text>the accounting treatment
related to the joint and several nature of the obligations of the Banks.</text>
</subparagraph></paragraph></subsection><subsection id="ID5C00F1DBA3A741F493BE37B17C4FD201"><enum>(g)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="ID5FFED522333B4851BDF1AE170F56CFBF"><enum>(1)</enum><text>the terms
<term>Bank</term>, <term>Federal Home Loan Bank</term>, <term>member</term>,
and <term>Federal Home Loan Bank System</term> have the same meanings as in
section 2 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422</external-xref>);</text>
</paragraph><paragraph id="ID0F95D1A6037E41FBB829F3F21BAF75A3"><enum>(2)</enum><text>the term
<term>Commission</term> means the Securities and Exchange Commission;
and</text>
</paragraph><paragraph id="ID62C8526FDE2A4ACDB6ECDA30D6D908CB"><enum>(3)</enum><text>the term <term>securities
laws</term> has the same meaning as in section 3(a)(47) of the Securities
Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(47)</external-xref>).</text>
</paragraph></subsection></section><section id="ID49113E42072648B5B4537691ACB1B6E4"><enum>1209.</enum><header>Voluntary
mergers</header><text display-inline="no-display-inline">Section 26 of the
Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1446">12 U.S.C. 1446</external-xref>) is amended—</text>
<paragraph id="ID92020A7891D2409899901B0112D28B73"><enum>(1)</enum><text>by striking
<quote>Whenever</quote> and inserting <quote>(a)
<header-in-text level="subsection">In
General</header-in-text>.—Whenever</quote>; and</text>
</paragraph><paragraph id="ID8C54BE8C3F6A48B0931D2B3AFAFCFD46"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID2EA83EEB1F8A4598852B385182AF1613" reported-display-style="italic" style="OLC">
<subsection id="ID8CC039683A304DAEA084FC5F03A9CE1F"><enum>(b)</enum><header>Voluntary mergers
authorized</header>
<paragraph id="IDA731A766151E4C72B4F127CBEB3A2B0E"><enum>(1)</enum><header>In
general</header><text>Any Federal Home Loan Bank may, with the approval of the
Director and of the boards of directors of the Banks involved, merge with
another Bank.</text>
</paragraph><paragraph id="ID86BDCB1839884F1F9C5EE111E8DBB411"><enum>(2)</enum><header>Regulations
required</header><text>The Director shall promulgate regulations establishing
the conditions and procedures for the consideration and approval of any
voluntary merger described in paragraph (1), including the procedures for Bank
member
approval.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="IDAB8C46E1A06E4053A81FFE01A7930007"><enum>1210.</enum><header>Authority to reduce
districts</header><text display-inline="no-display-inline">Section 3 of the
Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1423">12 U.S.C. 1423</external-xref>) is amended—</text>
<paragraph id="ID023127DCFA80402F912162BE30C4DCA5"><enum>(1)</enum><text>by striking <quote>As
soon</quote> and inserting <quote>(a) <header-in-text level="subsection">In
General</header-in-text>.—As soon</quote>; and</text>
</paragraph><paragraph id="ID8637C07E9B944B2CA5D7E944EFF5799D"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID09E12960947B4810AF9540E720D08F95" reported-display-style="italic" style="OLC">
<subsection id="IDA1C81F6E5C32433B8BE6A2C094DCA955"><enum>(b)</enum><header>Authority To reduce
districts</header><text>Notwithstanding subsection (a), the number of districts
may be reduced to a number less than 8—</text>
<paragraph id="ID1E683DDF9CC94A0A9F46754A69814D2A"><enum>(1)</enum><text>pursuant to a voluntary
merger between Banks, as approved pursuant to section 26(b); or</text>
</paragraph><paragraph id="IDB79445D752A74B0DAA7301CEF80985A8"><enum>(2)</enum><text>pursuant to a decision by
the Director to liquidate a Bank pursuant to section 1367 of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID644B9C100DA94920B102D04C30BB81A6"><enum>1211.</enum><header>Community financial
institution members</header>
<subsection id="ID45050EACFB8748D39B1A7D59B3DB34BE"><enum>(a)</enum><header>Total asset
requirement</header><text>Paragraph (10) of section 2 of the Federal Home Loan
Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1422">12 U.S.C. 1422(10)</external-xref>), as so redesignated by section 201(3) of this
Act, is amended by striking <quote>$500,000,000</quote> each place such term
appears and inserting <quote>$1,000,000,000</quote>.</text>
</subsection><subsection id="IDEE4ED3D89657420A80A9492C1CD6E231"><enum>(b)</enum><header>Use of advances for
community development activities</header><text>Section 10(a) of the Federal
Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(a)</external-xref>) is amended—</text>
<paragraph id="IDA5A6F05770D84DE4B0D28FA7B903F37C"><enum>(1)</enum><text>in paragraph
(2)(B)—</text>
<subparagraph id="ID93D03477FC3C4F0A88808ED3766DB51C"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="IDC4711F27D98E47A29A00586BD0F4FF30"><enum>(B)</enum><text>by inserting <quote>, and
community development activities</quote> before the period at the end;</text>
</subparagraph></paragraph><paragraph id="IDA864D802C52D4E53BC6B12680ED84677"><enum>(2)</enum><text>in paragraph (3)(E), by
inserting <quote>or community development activities</quote> after
<quote>agriculture,</quote>; and</text>
</paragraph><paragraph id="ID64686B88E7A84DF2BE61766A54F42F12"><enum>(3)</enum><text>in paragraph (6)—</text>
<subparagraph id="ID89FE49ADB821478AB715085D08268424"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="ID65F9E20669C346878F72D7E29543250B"><enum>(B)</enum><text>by inserting <quote>, and
<quote>community development activities</quote></quote> before
<quote>shall</quote>.</text>
</subparagraph></paragraph></subsection></section><section id="IDA7B1639A172548BB8A0DA961C57F5454"><enum>1212.</enum><header>Public use database;
reports to Congress</header><text display-inline="no-display-inline">Section 10
of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430</external-xref>) is amended—</text>
<paragraph id="id89D4B6325CD941E593507F80A28EE26E"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (j)(12)—</text>
<subparagraph id="id8BC31E16B27C45BCB880769AEA7520EF"><enum>(A)</enum><text>by striking subparagraph
(C) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id99612F64AB34401584DDFE1A99F27673" reported-display-style="italic" style="OLC">
<subparagraph id="id65780BF350C444FBA9FA6A6B82B8E787"><enum>(C)</enum><header>Reports</header><text>The
Director shall annually 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 collateral pledged to the Banks, including an analysis
of collateral by type and by Bank
district.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idA88CC9ECFDEB4776B517BADA1384A65B"><enum>(B)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4DDE52BE0669436D8A446A31D0AFFE04" reported-display-style="italic" style="OLC">
<subparagraph id="idC6F8E51435F54E40A1E1E09A75C302F0"><enum>(D)</enum><header>Submission to
Congress</header><text>The Director shall submit the reports under
subparagraphs (A) and (C) to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives, not later than 180 days after the date of enactment of the
<short-title>Federal Housing Finance Regulatory Reform Act
of 2008</short-title>.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id456FAF723E0A4A9CA627711DEABAB514"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID99CCBDBDA9054BEFA44DFB223EAFB927" reported-display-style="italic" style="OLC">
<subsection id="ID5FC60FB4D0B5496CAE75F4352DCE1901"><enum>(k)</enum><header>Public use
database</header>
<paragraph id="ID8642A4A4CD964C278C4556B78E61E1C0"><enum>(1)</enum><header>Data</header><text>Each
Federal Home Loan Bank shall provide to the Director, in a form determined by
the Director, census tract level data relating to mortgages purchased, if any,
including—</text>
<subparagraph id="IDB729D0F50BE64BBAB94D08E17345A04D"><enum>(A)</enum><text>data consistent with that
reported under section 1323 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992;</text>
</subparagraph><subparagraph id="IDE34B7343492546BA96C69419E81E8D0E"><enum>(B)</enum><text>data elements required to
be reported under the Home Mortgage Disclosure Act of 1975; and</text>
</subparagraph><subparagraph id="ID388986E28417494E8729BE1000FD2CE9"><enum>(C)</enum><text>any other data elements
that the Director considers appropriate.</text>
</subparagraph></paragraph><paragraph id="ID6150F0F704F944B18A6CE3251CFC068A"><enum>(2)</enum><header>Public use
database</header>
<subparagraph id="IDE767B7360C8848A894A61AE0AB4324B7"><enum>(A)</enum><header>In
general</header><text>The Director shall make available to the public, in a
form that is useful to the public (including forms accessible electronically),
and to the extent practicable, the data provided to the Director under
paragraph (1).</text>
</subparagraph><subparagraph id="ID6FBE20AEBDC54655BB232B2701AF2B8E"><enum>(B)</enum><header>Proprietary
information</header><text>Not withstanding subparagraph (A), the Director may
not provide public access to, or disclose to the public, any information
required to be submitted under this subsection that the Director determines is
proprietary or that would provide personally identifiable information and that
is not otherwise publicly accessible through other forms, unless the Director
determines that it is in the public interest to provide such
information.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idA10F915AA0C74923AB399E49B130835E"><enum>1213.</enum><header>Semiannual
reports</header><text display-inline="no-display-inline">Section 21B of the
Federal Home Loan Bank Act is amended in subsection (f)(2)(C), by adding at the
end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id190646D7019B4214B6B28E5F984E1F2C" reported-display-style="italic" style="OLC">
<clause id="IDfd13a31ee3d84a28bf8fde3f586a1a32"><enum>(v)</enum><header>Semiannual
reports</header><text>The Director shall report semiannually 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 projected date for
the completion of contributions required by this
section.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id73E06E611D274F97842A329BD0A6788F"><enum>1214.</enum><header>Liquidation or
reorganization of a Federal Home Loan Bank</header><text display-inline="no-display-inline">Section 26 of the Federal Home Loan Bank Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1446">12 U.S.C. 1446</external-xref>) is amended by adding at the end the following: <quote>At least
30 days prior to liquidating or reorganizing any Bank under this section, the
Director shall notify the Bank of its determination and the facts and
circumstances upon which such determination is based. The Bank may contest that
determination in a hearing before the Director, in which all issues shall be
determined on the record pursuant to <external-xref legal-doc="usc" parsable-cite="usc/5/554">section 554</external-xref> of title 5, United States
Code.</quote>.</text>
</section><section id="id37BD9C1DF5BA4764B8B256F34423F0F1"><enum>1215.</enum><header>Study and report to
Congress on securitization of acquired member assets</header>
<subsection id="id910AA9764E354A6FA36CE4D10F461F48"><enum>(a)</enum><header>Study</header><text>The
Director shall conduct a study on securitization of home mortgage loans
purchased or to be purchased from member financial institutions under the
Acquired Member Assets programs. In conducting the study, the Director shall
establish a process for the formal submission of comments.</text>
</subsection><subsection id="id9AC21F0B6BFF472DB30417292D136E75"><enum>(b)</enum><header>Elements</header><text>The
study shall encompass—</text>
<paragraph id="id6E73B1698E1346F0AA0C3877D64A55A9"><enum>(1)</enum><text>the benefits and risks
associated with securitization of Acquired Member Assets;</text>
</paragraph><paragraph id="id946FBE3DE50B479AA2EB796E6E90D2C1"><enum>(2)</enum><text>the potential impact of
securitization upon liquidity in the mortgage and broader credit
markets;</text>
</paragraph><paragraph id="id543C70D2CC004BD79299338701635DC0"><enum>(3)</enum><text>the ability of the
Federal Home Loan Bank or Banks in question to manage the risks associated with
such a program;</text>
</paragraph><paragraph id="id071320FD39F04C35942CBA00A7DE61E6"><enum>(4)</enum><text>the impact of such a
program on the existing activities of the Banks, including their mortgage
portfolios and advances; and</text>
</paragraph><paragraph id="id8A7EEE19FE7C4A389029DD707E050CC3"><enum>(5)</enum><text>the joint and several
liability of the Banks and the cooperative structure of the Federal Home Loan
Bank System.</text>
</paragraph></subsection><subsection id="id147DA515F6784F74932DEA00CC14FC39"><enum>(c)</enum><header>Consultations</header><text>In
conducting the study under this section, the Director shall consult with the
Federal Home Loan Banks, the Banks' fiscal agent, representatives of the
mortgage lending industry, practitioners in the structured finance field, and
other experts as needed.</text>
</subsection><subsection id="id0B689A35CF9045B8AF30BB0CB464E372"><enum>(d)</enum><header>Report</header><text>Not
later than 1 year after the date of enactment of this Act, the Director shall
submit a report to Congress on the results of the study conducted under
subsection (a), including policy recommendations based on the analysis of the
Director of the feasibility of mortgage-backed securities issuance by a Federal
Home Loan Bank or Banks and the risks and benefits associated with such program
or programs.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idC0FDB03B4BC84D1EAE0A3C45C2F24314"><enum>(e)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this section, the terms
<term>member</term>, <term>Bank</term>, and <term>Federal Home Loan Bank</term>
have the same meanings as in section 2 of the Federal Home Loan Bank Act (12
U.S.C. 1422).</text>
</subsection></section><section id="ID7729DB9CEF514C1597219B7E9E048E00"><enum>1216.</enum><header>Technical and
conforming amendments</header>
<subsection id="IDBBBCE8E1A78F4434994646A266A2A7D6"><enum>(a)</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="ID7877F82D47984E7D92BF9D1EA68030F5"><enum>(1)</enum><text>by striking
<quote>Federal Housing Finance Board</quote> and inserting <quote>Federal
Housing Finance Agency</quote>; and</text>
</paragraph><paragraph id="ID3856B8B59D7E4FE3B6CDB97686C90BF5"><enum>(2)</enum><text>by striking
<quote>Federal Housing Finance Board's</quote> and inserting <quote>Federal
Housing Finance Agency's</quote>.</text>
</paragraph></subsection><subsection id="IDB85EA073698D477C9E9509938A8AA2C0"><enum>(b)</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
Board</quote> and inserting <quote>Federal Housing Finance
Agency</quote>.</text>
</subsection><subsection id="ID344A6E25325B445A97D6B87AEE45C8DF"><enum>(c)</enum><header>Title 18, united states
code</header><text>Title 18, United States Code, is amended by striking
<quote>Federal Housing Finance Board</quote> each place such term appears in
each of sections 212, 657, 1006, and 1014, and inserting <quote>Federal Housing
Finance Agency</quote>.</text>
</subsection><subsection id="ID05FAADD95D4B4C41A012F7776774D5B9"><enum>(d)</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 striking
<quote>Federal Housing Finance Board</quote> and inserting <quote>Federal
Housing Finance Agency</quote>.</text>
</subsection><subsection id="ID95467649EEC040B9AD594709D7D9E54B"><enum>(e)</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 striking <quote>Federal Housing Finance Board</quote> and inserting
<quote>Federal Housing Finance Agency</quote>.</text>
</subsection><subsection id="ID631588828ABD408789CEB68A1538EDAD"><enum>(f)</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 striking <quote>Office of Federal Housing
Enterprise Oversight, the Federal Housing Finance Board</quote> and inserting
<quote>Federal Housing Finance Agency</quote>.</text>
</subsection><subsection id="idA1593D57045E4003885D6F78632ACBBD"><enum>(g)</enum><header>FIRREA</header><text>Section
1216 of the Financial Institutions Reform, Recovery, and Enhancement Act of
1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/1833e">12 U.S.C. 1833e</external-xref>) is amended—</text>
<paragraph id="id3EF71849A6634D598D5934324EEE1ED4"><enum>(1)</enum><text>in subsection (a), by
striking paragraph (3) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9F0DE6482C7349239E8F157429746815" reported-display-style="italic" style="OLC">
<paragraph id="idF569371375E2438B8963E26CC8427324"><enum>(3)</enum><text>the Federal Housing
Finance
Agency;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idBC6CE680EBC94E018175FE877F69DA86"><enum>(2)</enum><text>in subsection (b), by
striking <quote>Federal National Mortgage Association</quote> and inserting
<quote>Federal Home Loan Banks, the Federal National Mortgage
Association,</quote>; and</text>
</paragraph><paragraph id="id186623D6EACA4E94B5B317E624B713C4"><enum>(3)</enum><text>in subsection (c), by
striking <quote>Finance Board</quote> and inserting <quote>Finance
Agency</quote>.</text>
</paragraph></subsection></section><section id="id3E83B071EE53474F9BFF6F7D6FC31CFA"><enum>1217.</enum><header>Study on Federal Home
Loan Bank advances</header>
<subsection id="id87D4AD9BD6664DF9AF849CFB03581690"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of enactment of this Act, the Director 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 or Representatives
on the extent to which loans and securities used as collateral to support
Federal Home Loan Bank advances are consistent with the interagency guidance on
nontraditional mortgage products.</text>
</subsection><subsection id="id903BDA8D17B941C791CBF960965D0D62"><enum>(b)</enum><header>Required
content</header><text display-inline="yes-display-inline">The study required
under subsection (a) shall—</text>
<paragraph id="id28DD98E6F55F414B918104D057488C8C"><enum>(1)</enum><text display-inline="yes-display-inline">consider and recommend any additional
regulations, guidance, advisory bulletins, or other administrative actions
necessary to ensure that the Federal Home Loan Banks are not supporting loans
with predatory characteristics; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1DF652C76BC94926BEDCD7257227A29C"><enum>(2)</enum><text display-inline="yes-display-inline">include an opportunity for the public to
comment on any recommendations made under paragraph (1).</text>
</paragraph></subsection></section><section id="id8154FAD40C15483AA2E78C2DACE30BC6"><enum>1218.</enum><header>Federal Home Loan
Bank refinancing authority for certain residential mortgage loans</header><text display-inline="no-display-inline">Section 10(j)(2) of the Federal Home Loan
Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)(2)</external-xref>) is amended—</text>
<paragraph id="id49ADF20A68A94878A62C498CF806E31F"><enum>(1)</enum><text>in subparagraph (A), by
striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="idF62613E235F84B31B16DB0AD50748F6D"><enum>(2)</enum><text>in subparagraph (B), by
striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="idDDF77C6AC0EB43C6975D44A2801C9635"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD75708948D2A4F8990C0A409E254FB2B" reported-display-style="italic" style="OLC">
<subparagraph id="id7644AC6222CC4327A3EF56AEEA9870D5"><enum>(C)</enum><text>during the 2-year period
beginning on the date of enactment of this subparagraph, refinance loans that
are secured by a first mortgage on a primary residence of any family having an
income at or below 80 percent of the median income for the
area.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>III</enum><header>Transfer of functions,
personnel, and property of OFHEO and the Federal Housing Finance Board</header>
<subtitle id="ID6D7E8D2B8E674CCD85A5E1CC34631941"><enum>A</enum><header>OFHEO</header>
<section id="IDCD36C2687318471FBBF52208660F0AC4"><enum>1301.</enum><header>Abolishment of
OFHEO</header>
<subsection id="ID32EDD8C1489D4BB38A8411CE6EF6BB18"><enum>(a)</enum><header>In
general</header><text>Effective at the end of the 1-year period beginning on
the date of enactment of this Act, the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban Development and the positions
of the Director and Deputy Director of such Office are abolished.</text>
</subsection><subsection id="IDCCD7994DFE3D4997BAECBC0569E89C2C"><enum>(b)</enum><header>Disposition of
affairs</header><text>During the 1-year period beginning on the date of
enactment of this Act, the Director of the Office of Federal Housing Enterprise
Oversight, solely for the purpose of winding up the affairs of the Office of
Federal Housing Enterprise Oversight—</text>
<paragraph id="ID323774BB10AD4B31A4C9E22F4491DE6F"><enum>(1)</enum><text>shall manage the
employees of such Office and provide for the payment of the compensation and
benefits of any such employee which accrue before the effective date of the
transfer of such employee under section 1303; and</text>
</paragraph><paragraph id="ID1B7EB51CADB94135891C2B53F8664DA4"><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="IDB3846867CD72433BB244E7B4BD5AD915"><enum>(c)</enum><header>Status of employees
before transfer</header><text>The amendments made by title I and the
abolishment of the Office of Federal Housing Enterprise Oversight under
subsection (a) of this section may not be construed to affect the status of any
employee of such Office as an employee of an agency of the United States for
purposes of any other provision of law before the effective date of the
transfer of any such employee under section 1303.</text>
</subsection><subsection id="IDFE795369BFF744B28C7B2CB761594F03"><enum>(d)</enum><header>Use of property and
services</header>
<paragraph id="ID560D42EB1485408490782F57638B2C68"><enum>(1)</enum><header>Property</header><text>The
Director may use the property of the Office of Federal Housing Enterprise
Oversight to perform functions which have been transferred to the Director for
such time as is reasonable to facilitate the orderly transfer of functions
transferred under any other provision of this Act or any amendment made by this
Act to any other provision of law.</text>
</paragraph><paragraph id="ID4AFCD0A130E346CBAE79C037C039AE2B"><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, which was providing supporting services to the Office of
Federal Housing Enterprise Oversight before the expiration of the period under
subsection (a) in connection with functions that are transferred to the
Director shall—</text>
<subparagraph id="ID35A37E1588794D02912EABFA68404E4B"><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="IDD458FF5C06D7403AB26E08A2FDB8DF3E"><enum>(B)</enum><text>consult with any such
agency to coordinate and facilitate a prompt and reasonable transition.</text>
</subparagraph></paragraph></subsection><subsection id="IDd060693bc2e449d490ec5258bd06217a"><enum>(e)</enum><header>Continuation of
services</header><text>The Director may use the services of employees and other
personnel of the Office of Federal Housing Enterprise Oversight, on a
reimbursable basis, to perform functions which have been transferred to the
Director for such time as is reasonable to facilitate the orderly transfer of
functions pursuant to any other provision of this Act or any amendment made by
this Act to any other provision of law.</text>
</subsection><subsection id="IDED1A9A5A46E843DC90B4ADD2BE57BBCA"><enum>(f)</enum><header>Savings
provisions</header>
<paragraph id="ID426DD09393C44F6DA0F8A869C1F0929B"><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 Office of Federal Housing Enterprise Oversight, or any other
person, which—</text>
<subparagraph id="ID80C8EA86390242B3BBCC0A1DB088F6FD"><enum>(A)</enum><text>arises under—</text>
<clause id="ID2A8F996CA61E4EEBA5CC101DF3E3E04D"><enum>(i)</enum><text>the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992;</text>
</clause><clause id="IDF740DCF7A7354564B8C87D6815672E81"><enum>(ii)</enum><text>the Federal National
Mortgage Association Charter Act;</text>
</clause><clause id="ID63BD8D2E132447ABBE38712FA19B4716"><enum>(iii)</enum><text>the Federal Home Loan
Mortgage Corporation Act; or</text>
</clause><clause id="ID379D84CBF3DE40499DDC3472E4861F63"><enum>(iv)</enum><text>any other provision of
law applicable with respect to such Office; and</text>
</clause></subparagraph><subparagraph id="IDE7583D3F3D9B4EBAA2ADD5F105E46FDC"><enum>(B)</enum><text>existed on the day before
the date of abolishment under subsection (a).</text>
</subparagraph></paragraph><paragraph id="IDDEB937D721A84BA2BFEFD2B47468E061"><enum>(2)</enum><header>Continuation of
suits</header><text>No action or other proceeding commenced by or against the
Director of the Office of Federal Housing Enterprise Oversight in connection
with functions that are transferred to the Director of the Federal Housing
Finance Agency shall abate by reason of the enactment of this Act, except that
the Director of the Federal Housing Finance Agency shall be substituted for the
Director of the Office of Federal Housing Enterprise Oversight as a party to
any such action or proceeding.</text>
</paragraph></subsection></section><section id="IDFD2032AAA8FB410EBF483E30DF22A7D1"><enum>1302.</enum><header>Continuation and
coordination of certain actions</header>
<subsection id="IDD7AB87C90A6B44E9B5AF45DE5EFB1714"><enum>(a)</enum><header>In
general</header><text>All regulations, orders, and determinations described in
subsection (b) shall remain in effect according to the terms of such
regulations, orders, and determinations, and shall be enforceable by or against
the Director or the Secretary of Housing and Urban Development, as the case may
be, until modified, terminated, set aside, or superseded in accordance with
applicable law by the Director or the Secretary, as the case may be, any court
of competent jurisdiction, or operation of law.</text>
</subsection><subsection id="IDDB01C8E536FF491E8254A555221FD4B7"><enum>(b)</enum><header>Applicability</header><text>A
regulation, order, or determination is described in this subsection if
it—</text>
<paragraph id="ID25E89592B2314C71B45397D3588E24B0"><enum>(1)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<subparagraph id="IDA74647C38E8F440D9828E5AA250EBFD5"><enum>(A)</enum><text>the Office of Federal
Housing Enterprise Oversight;</text>
</subparagraph><subparagraph id="ID6A0CD58ABBA74E19A5F9CFDE712CE3EB"><enum>(B)</enum><text>the Secretary of Housing
and Urban Development, and relates to the authority of the Secretary
under—</text>
<clause id="ID6773B9A7D41F442A91C570FB1F9ECDFE"><enum>(i)</enum><text>the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992;</text>
</clause><clause id="IDA0A56DEAD8B4494BA26BA39D7D81DE6D"><enum>(ii)</enum><text>the Federal National
Mortgage Association Charter Act, with respect to the Federal National Mortgage
Association; or</text>
</clause><clause id="ID2B30054686634316BEFE7C3EFDAC4DA0"><enum>(iii)</enum><text>the Federal Home Loan
Mortgage Corporation Act, with respect to the Federal Home Loan Mortgage
Corporation; or</text>
</clause></subparagraph><subparagraph id="IDC1BE1B98B22B44BC9B1B9BFCA66401DF"><enum>(C)</enum><text>a court of competent
jurisdiction, and relates to functions transferred by this Act; and</text>
</subparagraph></paragraph><paragraph id="ID780EE5890E254DF490DC58012339B49D"><enum>(2)</enum><text>is in effect on the
effective date of the abolishment under section 1301(a).</text>
</paragraph></subsection></section><section id="ID4ECD89E9AB1443BCB110BD25C93B70FC"><enum>1303.</enum><header>Transfer and rights
of employees of OFHEO</header>
<subsection id="ID7433C254039C43EE8105DFA1212FAD74"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Office of Federal Housing Enterprise Oversight shall be
transferred to the Agency for employment, not later than the effective date of
the abolishment under section 1301(a), 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="IDFF9F7909ED7E4DC492F68452864D70AB"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph id="IDB05EFF3E9F6C4E63AA3C627300C51832"><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="ID6FE315577CCC4B9EB7CD86CEEE360851"><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="ID4A3C4B6EB40F4CDB9D49DB8C3CA2FC60"><enum>(c)</enum><header>Appointment authority
for excepted and senior executive service employees</header>
<paragraph id="IDC2077398F57D4C4A92309021E192474D"><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="ID3264A0EDF574446983000A14E9670DF9"><enum>(2)</enum><header>Decline of
transfer</header><text>The Director may decline a transfer of authority under
paragraph (1) to the extent that such authority relates to—</text>
<subparagraph id="ID8D35B319065049FFA4B12C73A3C43B5E"><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="ID39768B3E92B44BA984AED7DF80C9F698"><enum>(B)</enum><text>a noncareer position 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="ID705300ADBBF74215A280FDAE7D5BECE4"><enum>(d)</enum><header>Reorganization</header><text>If
the Director determines, after the end of the 1-year period beginning on the
effective date of the abolishment under section 1301(a), 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 <external-xref legal-doc="usc" parsable-cite="usc/5/8336">8336(d)(2)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/5/8414">8414(b)(1)(B)</external-xref> of title 5, United States
Code.</text>
</subsection><subsection id="IDFA9BE170A8E24BEC8EB9B0F5481A7AFA"><enum>(e)</enum><header>Employee benefit
programs</header>
<paragraph id="ID2F31BB4940B243D89E7948F23BFC9A73"><enum>(1)</enum><header>In
general</header><text>Any employee of the Office of Federal Housing Enterprise
Oversight accepting employment with the Agency 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 Office
of Federal Housing Enterprise Oversight of the Department of Housing and Urban
Development, as applicable, including insurance, to which such employee belongs
on the date of the abolishment under section 1301(a), if—</text>
<subparagraph id="IDCC6C8FD47F1C4D19933F8DAC24668502"><enum>(A)</enum><text>the employee does not
elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="ID2379B0C36DB0416FA6D35692878D69B4"><enum>(B)</enum><text>the benefit or program is
continued by the Director of the Federal Housing Finance Agency.</text>
</subparagraph></paragraph><paragraph id="ID01A318DC44964DF8AD316A51333D39C4"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="ID17609FEA44F14C22ADB926DE44C466EF"><enum>(A)</enum><header>In
general</header><text>The difference in the costs between the benefits which
would have been provided by the Office of Federal Housing Enterprise Oversight
and those provided by this section shall be paid by the Director.</text>
</subparagraph><subparagraph id="ID4E230E3C3185401E866B6A298AB9BA4A"><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 Director, 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="ID7E815139E25C4FC79F8D5282A03B0C82"><enum>1304.</enum><header>Transfer of property
and facilities</header><text display-inline="no-display-inline">Upon the
effective date of its abolishment under section 1301(a), all property of the
Office of Federal Housing Enterprise Oversight shall transfer to the
Agency.</text>
</section></subtitle><subtitle id="ID1FE163C4FD744DFAA91736F4E5725E16"><enum>B</enum><header>Federal Housing Finance
Board</header>
<section id="IDEA5652AD971841F0A894108936C8E202"><enum>1311.</enum><header>Abolishment of the
Federal Housing Finance Board</header>
<subsection id="IDDAD2C7E5CDB749EBA5B5D0BB07B66749"><enum>(a)</enum><header>In
general</header><text>Effective at the end of the 1-year period beginning on
the date of enactment of this Act, the Federal Housing Finance Board (in this
subtitle referred to as the <quote>Board</quote>) is abolished.</text>
</subsection><subsection id="ID963A27092BCC4465B8BD8F5CD1063E55"><enum>(b)</enum><header>Disposition of
affairs</header><text>During the 1-year period beginning on the date of
enactment of this Act, the Board, solely for the purpose of winding up the
affairs of the Board—</text>
<paragraph id="IDDFC20CABE2B84870AD56C81FAF11B7B3"><enum>(1)</enum><text>shall manage the
employees of the Board and provide for the payment of the compensation and
benefits of any such employee which accrue before the effective date of the
transfer of such employee under section 1313; and</text>
</paragraph><paragraph id="IDDFE5EDE8E6BA457290FBEE3D7DA21FB7"><enum>(2)</enum><text>may take any other action
necessary for the purpose of winding up the affairs of the Board.</text>
</paragraph></subsection><subsection id="IDD8214F4C0DA848CE9C626E259E7A089F"><enum>(c)</enum><header>Status of employees
before transfer</header><text>The amendments made by titles I and II and the
abolishment of the Board under subsection (a) may not be construed to affect
the status of any employee of the Board as an employee of an agency of the
United States for purposes of any other provision of law before the effective
date of the transfer of any such employee under section 1313.</text>
</subsection><subsection id="ID7C52073A7A8549E0872C88E58230FB57"><enum>(d)</enum><header>Use of property and
services</header>
<paragraph id="ID4A47E4208A494EDFAE1023D5CECC2A0F"><enum>(1)</enum><header>Property</header><text>The
Director may use the property of the Board to perform functions which have been
transferred to the Director, for such time as is reasonable to facilitate the
orderly transfer of functions transferred under any other provision of this Act
or any amendment made by this Act to any other provision of law.</text>
</paragraph><paragraph id="ID37E6A683CF434F02BE75E4B555551566"><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, which was providing supporting services to the Board before
the expiration of the 1-year period under subsection (a) in connection with
functions that are transferred to the Director shall—</text>
<subparagraph id="IDFA99DE421FC341B792B581740510C90E"><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="IDFE69FF18EB0E45DEB2C9568C648FDFB8"><enum>(B)</enum><text>consult with any such
agency to coordinate and facilitate a prompt and reasonable transition.</text>
</subparagraph></paragraph></subsection><subsection id="idBB7FCFE8229E46CEA394378E5BDEAC1A"><enum>(e)</enum><header>Continuation of
services</header><text>The Director may use the services of employees and other
personnel of the Board, on a reimbursable basis, to perform functions which
have been transferred to the Director for such time as is reasonable to
facilitate the orderly transfer of functions pursuant to any other provision of
this Act or any amendment made by this Act to any other provision of
law.</text>
</subsection><subsection id="ID8816E0AAD77E4D3096410BA992BEACC5"><enum>(f)</enum><header>Savings
provisions</header>
<paragraph id="IDBBCB4702989B42B1839FA0438F0C9F9C"><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, a
member of the Board, or any other person, which—</text>
<subparagraph id="IDD7D0C9A913934C09BFA23BE0DA735AE7"><enum>(A)</enum><text>arises under the Federal
Home Loan Bank Act, or any other provision of law applicable with respect to
the Board; and</text>
</subparagraph><subparagraph id="IDD58F0CB2BBAF4C79916B8D5719D0CE12"><enum>(B)</enum><text>existed on the day before
the effective date of the abolishment under subsection (a).</text>
</subparagraph></paragraph><paragraph id="IDDB795EF0FA2F4242BE062196CA4D4C7C"><enum>(2)</enum><header>Continuation of
suits</header><text>No action or other proceeding commenced by or against the
Board in connection with functions that are transferred under this Act to the
Director shall abate by reason of the enactment of this Act, except that the
Director shall be substituted for the Board or any member thereof as a party to
any such action or proceeding.</text>
</paragraph></subsection></section><section id="IDDFD62A76CB724C97B39B7948CABAA9AA"><enum>1312.</enum><header>Continuation and
coordination of certain actions</header>
<subsection id="IDE9D0467C8C624483AD987E9F8F62CA5E"><enum>(a)</enum><header>In
general</header><text>All regulations, orders, determinations, and resolutions
described under subsection (b) shall remain in effect according to the terms of
such regulations, orders, determinations, and resolutions, and shall be
enforceable by or against the Director until modified, terminated, set aside,
or superseded in accordance with applicable law by the Director, any court of
competent jurisdiction, or operation of law.</text>
</subsection><subsection id="ID092C34D5F8E444F188DD0EFCE27826F5"><enum>(b)</enum><header>Applicability</header><text>A
regulation, order, determination, or resolution is described under this
subsection if it—</text>
<paragraph id="ID009E94C439CF43D9A87B68EC6F6DC1F7"><enum>(1)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<subparagraph id="IDBBA79A5DB64F4D7196015202E450B514"><enum>(A)</enum><text>the Board; or</text>
</subparagraph><subparagraph id="IDFB99AAB1C4CE41108B9DED94FF9E74EA"><enum>(B)</enum><text>a court of competent
jurisdiction, and relates to functions transferred by this Act; and</text>
</subparagraph></paragraph><paragraph id="ID6BB1B7F022964CA485C2AF084182FBD3"><enum>(2)</enum><text>is in effect on the
effective date of the abolishment under section 1311(a).</text>
</paragraph></subsection></section><section id="ID77A7D277A9464936B5239F61A33E3F46"><enum>1313.</enum><header>Transfer and rights
of employees of the Federal Housing Finance Board</header>
<subsection id="IDC6DC4B0E202548E1A570916C312F89AD"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Board shall be transferred to the Agency for employment, not
later than the effective date of the abolishment under section 1311(a), and
such transfer shall be deemed a transfer of function for purposes of section
3503 of title 5, United States Code.</text>
</subsection><subsection id="ID140CC4D995D444649166B557B69C2C57"><enum>(b)</enum><header>Guaranteed
positions</header>
<paragraph id="ID089F14D7D63B4EE8826BE78B603FCCCC"><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="ID23B24CA5875F4D7C8699E1C1D967EE88"><enum>(2)</enum><header>No involuntary
separation or reduction</header><text>An employee 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, if the employee is a
temporary employee, separated in accordance with the terms of the appointment
of the employee.</text>
</paragraph></subsection><subsection id="ID316F1B8622D74BA7A7B101AD31EF4AB9"><enum>(c)</enum><header>Appointment authority
for excepted employees</header>
<paragraph id="ID9230BFBE4EC241DA973FE3B89B6A16AC"><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="ID78A56252BE314ABAB87706EF1B85A26E"><enum>(2)</enum><header>Decline of
transfer</header><text>The Director 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="ID40BBF98D10A84BDDAD85E3E26C3B2450"><enum>(d)</enum><header>Reorganization</header><text>If
the Director determines, after the end of the 1-year period beginning on the
effective date of the abolishment under section 1311(a), 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 <external-xref legal-doc="usc" parsable-cite="usc/5/8336">8336(d)(2)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/5/8414">8414(b)(1)(B)</external-xref> of title 5, United States
Code.</text>
</subsection><subsection id="IDFE44DA0C21354F758E0273130A1FA7E5"><enum>(e)</enum><header>Employee benefit
programs</header>
<paragraph id="IDFD277497AD574D3681F6A12873E42B6A"><enum>(1)</enum><header>In
general</header><text>Any employee of the Board accepting employment with the
Agency 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 Board, as applicable, including insurance,
to which such employee belongs on the effective date of the abolishment under
section 1311(a) if—</text>
<subparagraph id="ID28E2BA18A6F6427F941519C22FD9A417"><enum>(A)</enum><text>the employee does not
elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="ID7B6CC9B4923649A0995516248F04147C"><enum>(B)</enum><text>the benefit or program is
continued by the Director.</text>
</subparagraph></paragraph><paragraph id="IDA9FDA2A81B464828BEC82028BC0286A1"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="ID5C73CB279A654BAB90A85733933BECF2"><enum>(A)</enum><header>In
general</header><text>The difference in the costs between the benefits which
would have been provided by the Board and those provided by this section shall
be paid by the Director.</text>
</subparagraph><subparagraph id="IDCEF2D657067445BFA31B969284ED2C60"><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 Director, 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 commented="no" display-inline="no-display-inline" id="ID83EA1E78DAB14BEF9FC7E826ACC124F7" section-type="subsequent-section"><enum>1314.</enum><header>Transfer of
property and facilities</header><text display-inline="no-display-inline">Upon
the effective date of the abolishment under section 1311(a), all property of
the Board shall transfer to the Agency.</text>
</section></subtitle><enum>IV</enum><header>HOPE for
Homeowners</header>
<section id="idE64D899B74FD4284806D8B560D4E8E76"><enum>1401.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>HOPE for Homeowners Act of
2008</short-title></quote>.</text>
</section><section id="id9B1E8951C4F94C78A7F48B68562749F6"><enum>1402.</enum><header>Establishment of HOPE
for Homeowners Program</header>
<subsection id="idCF1816B87CED4284AF885906591F0571"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">Title II of the National Housing Act (12
U.S.C. 1707 et seq.) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2880F7B7270C40A58A5F159A22E973F5" reported-display-style="italic" style="OLC">
<section id="idA9C708C7FBF148918A0A0218A27568D6"><enum>257.</enum><header>HOPE for Homeowners
Program</header>
<subsection id="idA398E1E03FB64E11B4A874C4F4006971"><enum>(a)</enum><header>Establishment</header><text>There
is established in the Federal Housing Administration a HOPE for Homeowners
Program.</text>
</subsection><subsection id="id3BB5DBF511ED426293BF17034156DEEC"><enum>(b)</enum><header>Purpose</header><text>The
purpose of the HOPE for Homeowners Program is—</text>
<paragraph id="id9E37B81A4DEB44FD875E010D2286763C"><enum>(1)</enum><text>to create an FHA program,
participation in which is voluntary on the part of homeowners and existing loan
holders to insure refinanced loans for distressed borrowers to support
long-term, sustainable homeownership;</text>
</paragraph><paragraph id="ID23a185940a52475b9936c533408d1c25"><enum>(2)</enum><text>to allow homeowners to
avoid foreclosure by reducing the principle balance outstanding, and interest
rate charged, on their mortgages;</text>
</paragraph><paragraph id="ID61b965a20acf4f78a0693d8d53c912be"><enum>(3)</enum><text>to help stabilize and
provide confidence in mortgage markets by bringing transparency to the value of
assets based on mortgage assets;</text>
</paragraph><paragraph id="id4308BF4893EB453FB080A859E7BA8FDC"><enum>(4)</enum><text>to target mortgage
assistance under this section to homeowners for their principal
residence;</text>
</paragraph><paragraph id="id313E702B2DBD43F18393B9C44CB8A1EC"><enum>(5)</enum><text>to enhance the
administrative capacity of the FHA to carry out its expanded role under the
HOPE for Homeowners Program;</text>
</paragraph><paragraph id="id49D8F4C50DE84E9080DC7A3B848E16C0"><enum>(6)</enum><text>to ensure the HOPE for
Homeowners Program remains in effect only for as long as is necessary to
provide stability to the housing market; and</text>
</paragraph><paragraph id="id4D5F8A07ED3C490198F14C14A9DC1687"><enum>(7)</enum><text>to provide servicers of
delinquent mortgages with additional methods and approaches to avoid
foreclosure.</text>
</paragraph></subsection><subsection id="id3D0183C6A1864176AF64AA459B4C2E22"><enum>(c)</enum><header>Establishment and
implementation of program requirements</header>
<paragraph id="id6926B23381AC454E952D1414300782FD"><enum>(1)</enum><header>Duties of the
Board</header><text>In order to carry out the purposes of the HOPE for
Homeowners Program, the Board shall—</text>
<subparagraph id="id76C931071A784D419FF036413F00A313"><enum>(A)</enum><text>establish requirements
and standards for the program; and</text>
</subparagraph><subparagraph id="idF41D965F46FF4972B86F3139B7AA7D55"><enum>(B)</enum><text>prescribe such
regulations and provide such guidance as may be necessary or appropriate to
implement such requirements and standards.</text>
</subparagraph></paragraph><paragraph id="id34661601EBA8436F86A2F6289E3631FE"><enum>(2)</enum><header>Duties of the
Secretary</header><text>In carrying out any of the program requirements or
standards established under paragraph (1), the Secretary may issue such interim
guidance and mortgagee letters as the Secretary determines necessary or
appropriate.</text>
</paragraph></subsection><subsection id="id8197A07A6E224A6FB8C98C94DF47B90B"><enum>(d)</enum><header>Insurance of
mortgages</header><text>The Secretary is authorized upon application of a
mortgagee to make commitments to insure or to insure any eligible mortgage that
has been refinanced in a manner meeting the requirements under subsection
(e).</text>
</subsection><subsection id="id9562CB2E96094EA39C926D83B94E8350"><enum>(e)</enum><header>Requirements of insured
mortgages</header><text>To be eligible for insurance under this section, a
refinanced eligible mortgage shall comply with all of the following
requirements:</text>
<paragraph id="idC84312DBBC194E6E919FB586405C9570"><enum>(1)</enum><header>Lack of capacity to pay
existing mortgage</header>
<subparagraph id="idDCDB1A6548CD48D694CB539D89FF2B4F"><enum>(A)</enum><header>Borrower
certification</header>
<clause id="ID8ad5c14f90ff44b6ab55dc370f1d8f90"><enum>(i)</enum><header>In
general</header><text>The mortgagor shall provide certification to the
Secretary that the mortgagor has not intentionally defaulted on the mortgage or
any other debt, and has not knowingly, or willfully and with actual knowledge,
furnished material information known to be false for the purpose of obtaining
any eligible mortgage.</text>
</clause><clause id="IDe2d6e034973f44efa61633b65f36691d"><enum>(ii)</enum><header>Penalties</header>
<subclause id="IDc0dbaa5733f741208ba021591f806716"><enum>(I)</enum><header>False
statement</header><text>Any certification filed pursuant to clause (i) shall
contain an acknowledgment that any willful false statement made in such
certification is punishable under <external-xref legal-doc="usc" parsable-cite="usc/18/1001">section 1001,</external-xref> of title 18, United States
Code, by fine or imprisonment of not more than 5 years, or both.</text>
</subclause><subclause id="ID3d00ad4167a44d9cad129dbe68b0d043"><enum>(II)</enum><header>Liability for
repayment</header><text>The mortgagor shall agree in writing that the mortgagor
shall be liable to repay to the Federal Housing Administration any direct
financial benefit achieved from the reduction of indebtedness on the existing
mortgage or mortgages on the residence refinanced under this section derived
from misrepresentations made in the certifications and documentation required
under this subparagraph, subject to the discretion of the Secretary.</text>
</subclause></clause></subparagraph><subparagraph id="idDBB5704DD2B44629BDA748B8556B3217"><enum>(B)</enum><header>Current borrower
debt-to-income ratio</header><text>As of March 1, 2008, the mortgagor shall
have had a ratio of mortgage debt to income, taking into consideration all
existing mortgages of that mortgagor at such time, greater than 31 percent (or
such higher amount as the Board determines appropriate).</text>
</subparagraph></paragraph><paragraph id="idCF05C74A9FEC4B5C8B1957440F52FEE8"><enum>(2)</enum><header>Determination of
principal obligation amount</header><text>The principal obligation amount of
the refinanced eligible mortgage to be insured shall—</text>
<subparagraph id="id92FC1AFE526246239A35F579740C4D51"><enum>(A)</enum><text>be determined by the
reasonable ability of the mortgagor to make his or her mortgage payments, as
such ability is determined by the Secretary pursuant to section 203(b)(4) or by
any other underwriting standards established by the Board; and</text>
</subparagraph><subparagraph id="id43F8ED4D028241A9A555E0C97E877797"><enum>(B)</enum><text>not exceed 90 percent of
the appraised value of the property to which such mortgage relates.</text>
</subparagraph></paragraph><paragraph id="id9578A6B23906485AB0B44B6E1344B3CD"><enum>(3)</enum><header>Required waiver of
prepayment penalties and fees</header><text>All penalties for prepayment or
refinancing of the eligible mortgage, and all fees and penalties related to
default or delinquency on the eligible mortgage, shall be waived or
forgiven.</text>
</paragraph><paragraph id="id7EEF7F1B93344C79B9AB8D2256BB606F"><enum>(4)</enum><header>Extinguishment of
subordinate liens</header>
<subparagraph id="idDC252B25EE124F738D0F2CB6E96EB113"><enum>(A)</enum><header>Required
agreement</header><text>All holders of outstanding mortgage liens on the
property to which the eligible mortgage relates shall agree to accept the
proceeds of the insured loan as payment in full of all indebtedness under the
eligible mortgage, and all encumbrances related to such eligible mortgage shall
be removed. The Secretary may take such actions, subject to standards
established by the Board under subparagraph (B), as may be necessary and
appropriate to facilitate coordination and agreement between the holders of the
existing senior mortgage and any existing subordinate mortgages, taking into
consideration the subordinate lien status of such subordinate mortgages.</text>
</subparagraph><subparagraph id="id6639EF82929A44E29DF78E0983BCBD6E"><enum>(B)</enum><header>Shared
appreciation</header>
<clause id="id37B58320D0344E34B295F03D85E7FA16"><enum>(i)</enum><header>In
general</header><text>The Board shall establish standards and policies that
will allow for the payment to the holder of any existing subordinate mortgage
of a portion of any future appreciation in the property secured by such
eligible mortgage that is owed to the Secretary pursuant to subsection
(k).</text>
</clause><clause id="id78D51D0AC1364A038384B420BC074B77"><enum>(ii)</enum><header>Factors</header><text>In
establishing the standards and policies required under clause (i), the Board
shall take into consideration—</text>
<subclause id="id434DC6D9FAEE4B078FFF43A664D846A7"><enum>(I)</enum><text>the status of any
subordinate mortgage;</text>
</subclause><subclause id="id9E5EA5ECF88940A685C17D55938EF64B"><enum>(II)</enum><text>the outstanding
principal balance of and accrued interest on the existing senior mortgage and
any outstanding subordinate mortgages;</text>
</subclause><subclause id="idA1A64C646EF143BE984BA914962C314F"><enum>(III)</enum><text>the extent to which the
current appraised value of the property securing a subordinate mortgage is less
than the outstanding principal balance and accrued interest on any other liens
that are senior to such subordinate mortgage; and</text>
</subclause><subclause id="id9F3C42C226F84090AEED8496C86BE70A"><enum>(IV)</enum><text>such other factors as
the Board determines to be appropriate.</text>
</subclause></clause></subparagraph><subparagraph id="id1F62FE8AAC3D4323B6CFE83C396747C1"><enum>(C)</enum><header>Voluntary
program</header><text>This paragraph may not be construed to require any holder
of any existing mortgage to participate in the program under this section
generally, or with respect to any particular loan.</text>
</subparagraph></paragraph><paragraph id="id5DC01B07A43441B38F294DC3EE3ED215"><enum>(5)</enum><header>Term of
mortgage</header><text>The refinanced eligible mortgage to be insured
shall—</text>
<subparagraph id="id631B088526FD474B81A1006C7536433C"><enum>(A)</enum><text>bear interest at a single
rate that is fixed for the entire term of the mortgage; and</text>
</subparagraph><subparagraph id="id5AFC1F7EC3B64A4F8B68C71C0047F06D"><enum>(B)</enum><text>have a maturity of not
less than 30 years from the date of the beginning of amortization of such
refinanced eligible mortgage.</text>
</subparagraph></paragraph><paragraph id="id80F1723E89634461BC73E61AE9D74A11"><enum>(6)</enum><header>Maximum loan
amount</header><text>The principal obligation amount of the eligible mortgage
to be insured shall not exceed 132 percent of the dollar amount limitation in
effect for 2007 under 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>) for a property of the applicable
size.</text>
</paragraph><paragraph id="idF0D2F91BE7C344F386FF6AD2F250587D"><enum>(7)</enum><header>Prohibition on second
liens</header><text>A mortgagor may not grant a new second lien on the
mortgaged property during the first 5 years of the term of the mortgage insured
under this section.</text>
</paragraph><paragraph id="H69E7D25603E143D2A2762EF4DA635407"><enum>(8)</enum><header>Appraisals</header><text display-inline="yes-display-inline">Any appraisal conducted in connection with
a mortgage insured under this section shall—</text>
<subparagraph id="HD48E381454104BDDB819E7E501745B20"><enum>(A)</enum><text>be based on the current
value of the property;</text>
</subparagraph><subparagraph id="H9740C7062CDB43FC8B6300C255009596"><enum>(B)</enum><text>be conducted in
accordance with title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3331">12 U.S.C. 3331 et seq.</external-xref>);</text>
</subparagraph><subparagraph id="HBD43FF4142B94BF4B5003F612D8C0065"><enum>(C)</enum><text>be completed by an
appraiser who meets the competency requirements of the Uniform Standards of
Professional Appraisal Practice;</text>
</subparagraph><subparagraph id="H3239D11818AB4A728E53AB00017622B2"><enum>(D)</enum><text>be wholly consistent with
the appraisal standards, practices, and procedures under section 202(e) of this
Act that apply to all loans insured under this Act; and</text>
</subparagraph><subparagraph id="HE6E7444A60774AACB0FDB356CB005B51"><enum>(E)</enum><text>comply with the
requirements of subsection (g) of this section (relating to appraisal
independence).</text>
</subparagraph></paragraph><paragraph id="idF21DE1282E1C429E82FD78DDB90C6EA9"><enum>(9)</enum><header>Documentation and
verification of income</header><text>In complying with the FHA underwriting
requirements under the HOPE for Homeowners Program under this section, the
mortgagee under the mortgage shall document and verify the income of the
mortgagor by procuring an Internal Revenue Service transcript of the income tax
returns of the mortgagor for the 2 most recent years for which the filing
deadline for such years has passed and by any other method, in accordance with
procedures and standards that the Board or the Secretary shall
establish.</text>
</paragraph><paragraph id="id73B23CDCB8744CE58CCF47F0127A9F67"><enum>(10)</enum><header>Mortgage
fraud</header><text>The mortgagor shall not have been convicted under any
provision of Federal or State law for fraud, including mortgage fraud.</text>
</paragraph><paragraph id="id6A6771B6A0FE48DCB8ADA632B77D4EB2"><enum>(11)</enum><header>Primary
residence</header><text>The mortgagor shall provide documentation satisfactory
in the determination of the Secretary to prove that the residence covered by
the mortgage to be insured under this section is occupied by the mortgagor as
the primary residence of the mortgagor, and that such residence is the only
residence in which the mortgagor has any present ownership interest.</text>
</paragraph></subsection><subsection id="ID880DCF0B126D46C78A0D0699F197EB04"><enum>(f)</enum><header>Study of auction or
bulk refinance program</header>
<paragraph id="ID81EC325C27BA4D369B45BA0FEB93C15C"><enum>(1)</enum><header>Study</header><text>The
Board shall conduct a study of the need for and efficacy of an auction or bulk
refinancing mechanism to facilitate refinancing of existing residential
mortgages that are at risk for foreclosure into mortgages insured under this
section. The study shall identify and examine various options for mechanisms
under which lenders and servicers of such mortgages may make bids for forward
commitments for such insurance in an expedited manner.</text>
</paragraph><paragraph id="ID3099D8AE7F1F4A518C5B730318A7488B"><enum>(2)</enum><header>Content</header>
<subparagraph id="ID4A39E286DDDF486C82F427F425A594C5"><enum>(A)</enum><header>Analysis</header><text>The
study required under paragraph (1) shall analyze—</text>
<clause id="ID141CC87FD1F14C0B83214AADE01AB806"><enum>(i)</enum><text>the feasibility of
establishing a mechanism that would facilitate the more rapid refinancing of
borrowers at risk of foreclosure into performing mortgages insured under this
section;</text>
</clause><clause id="ID88FAEE3F9A8E4588B3D4C1C9114E29B1"><enum>(ii)</enum><text>whether such a mechanism
would provide an effective and efficient mechanism to reduce foreclosures on
qualified existing mortgages;</text>
</clause><clause id="IDA24C7EC1D8094C858853FBD9BAF8ECCD"><enum>(iii)</enum><text>whether the use of an
auction or bulk refinance program is necessary to stabilize the housing market
and reduce the impact of turmoil in that market on the economy of the United
States;</text>
</clause><clause id="IDC93680873AF24947B7AFBEF931029F52"><enum>(iv)</enum><text>whether there are other
mechanisms or authority that would be useful to reduce foreclosure; and</text>
</clause><clause id="IDD476DBE1319047FEB67C55D3166DFF15"><enum>(v)</enum><text>and any other factors
that the Board considers relevant.</text>
</clause></subparagraph><subparagraph id="IDF60BAA5B58784F7F93BAD3638AAA6E7C"><enum>(B)</enum><header>Determinations</header><text>To
the extent that the Board finds that a facility of the type described in
subparagraph (A) is feasible and useful, the study shall—</text>
<clause id="ID44E32C94E813471FAD1C00EC5F2ED79E"><enum>(i)</enum><text>determine and identify
any additional authority or resources needed to establish and operate such a
mechanism;</text>
</clause><clause id="ID5FE7694589ED4DEB9018B9125C91EBD2"><enum>(ii)</enum><text>determine whether there
is a need for additional authority with respect to the loan underwriting
criteria established in this section or with respect to eligibility of
participating borrowers, lenders, or holders of liens;</text>
</clause><clause id="ID772A80A47576467D857647923F8F69CD"><enum>(iii)</enum><text>determine whether such
underwriting criteria should be established on the basis of individual loans,
in the aggregate, or otherwise to facilitate the goal of refinancing borrowers
at risk of foreclosure into viable loans insured under this section.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0823AAD23AB9430690763328296F89F0"><enum>(3)</enum><header>Report</header><text>Not
later than the expiration of the 60-day period beginning on the date of the
enactment of this section, the Board shall submit a report regarding the
results of the study conducted under this subsection to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate. The report shall include a
detailed description of the analysis required under paragraph (2)(A) and of the
determinations made pursuant to paragraph (2)(B), and shall include any other
findings and recommendations of the Board pursuant to the study, including
identifying various options for mechanisms described in paragraph (1).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HFE7C2656AEC14B67B61D7F00009917D0"><enum>(g)</enum><header>Appraisal
independence</header>
<paragraph id="H0075C6BB1CE14CD682319D24289755CC"><enum>(1)</enum><header>Prohibitions on
interested parties in a real estate transaction</header><text>No mortgage
lender, mortgage broker, mortgage banker, real estate broker, appraisal
management company, employee of an appraisal management company, nor any other
person with an interest in a real estate transaction involving an appraisal in
connection with a mortgage insured under this section shall improperly
influence, or attempt to improperly influence, through coercion, extortion,
collusion, compensation, instruction, inducement, intimidation, nonpayment for
services rendered, or bribery, the development, reporting, result, or review of
a real estate appraisal sought in connection with the mortgage.</text>
</paragraph><paragraph id="HC0AD0D3271104FEE8C32CA5188BE4543"><enum>(2)</enum><header>Civil monetary
penalties</header><text>The Secretary may impose a civil money penalty for any
knowing and material violation of paragraph (1) under the same terms and
conditions as are authorized in section 536(a) of this Act.</text>
</paragraph></subsection><subsection id="idACC1403721174FAF953FAD79FD951524"><enum>(h)</enum><header>Standards To protect
against adverse selection</header>
<paragraph id="id03162983BCA74F7885F5F8864544A145"><enum>(1)</enum><header>In
general</header><text>The Board shall, by rule or order, establish standards
and policies to require the underwriter of the insured loan to provide such
representations and warranties as the Board considers necessary or appropriate
to enforce compliance with all underwriting and appraisal standards of the HOPE
for Homeowners Program.</text>
</paragraph><paragraph id="id12F02B49BB384F2293F0C66F0201C5DB"><enum>(2)</enum><header>Exclusion for
violations</header><text>The Board shall prohibit the Secretary from paying
insurance benefits to a mortgagee who violates the representations and
warranties, as established under paragraph (1), or in any case in which a
mortgagor fails to make the first payment on a refinanced eligible
mortgage.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8FDA866C5327490C95E46A799E480C4A"><enum>(3)</enum><header>Other
authority</header><text>The Board may establish such other standards or
policies as necessary to protect against adverse selection, including requiring
loans identified by the Secretary as higher risk loans to demonstrate payment
performance for a reasonable period of time prior to being insured under the
program.</text>
</paragraph></subsection><subsection id="id419EE0CEDAF24894A205F9FAB706E4F3"><enum>(i)</enum><header>Premiums</header><text>For
each refinanced eligible mortgage insured under this section, the Secretary
shall establish and collect—</text>
<paragraph id="id787B641202014D55AE3DD91482DFA099"><enum>(1)</enum><text>at the time of insurance,
a single premium payment in an amount equal to 3 percent of the amount of the
original insured principal obligation of the refinanced eligible mortgage,
which shall be paid from the proceeds of the mortgage being insured under this
section, through the reduction of the amount of indebtedness that existed on
the eligible mortgage prior to refinancing; and</text>
</paragraph><paragraph id="id83B8A1B268D34C7E8FCCB44C8843EE44"><enum>(2)</enum><text>in addition to the
premium required under paragraph (1), an annual premium in an amount equal to
1.5 percent of the amount of the remaining insured principal balance of the
mortgage.</text>
</paragraph></subsection><subsection id="id0F379D5702F44DE1A2510BFCB454FE08"><enum>(j)</enum><header>Origination fees and
interest rate</header><text>The Board shall establish—</text>
<paragraph id="idA2BEB403B34E479FB629A629293AFE47"><enum>(1)</enum><text>a reasonable limitation
on origination fees for refinanced eligible mortgages insured under this
section; and</text>
</paragraph><paragraph id="id709486ACCC514AEB815572A3141C8BAF"><enum>(2)</enum><text>procedures to ensure that
interest rates on such mortgages shall be commensurate with market rate
interest rates on such types of loans.</text>
</paragraph></subsection><subsection id="idF526D8E56BA34160896BA48B4016BF76"><enum>(k)</enum><header>Equity and
appreciation</header>
<paragraph id="idE3F882848FAC421A9FC50BB337E85050"><enum>(1)</enum><header>Five-year phase-in for
equity as a result of sale or refinancing</header><text>For each eligible
mortgage insured under this section, the Secretary and the mortgagor of such
mortgage shall, upon any sale or disposition of the property to which such
mortgage relates, or upon the subsequent refinancing of such mortgage, be
entitled to the following with respect to any equity created as a direct result
of such sale or refinancing:</text>
<subparagraph id="id406191E868A74C9788E5A4040F59CEEB"><enum>(A)</enum><text>If such sale or
refinancing occurs during the period that begins on the date that such mortgage
is insured and ends 1 year after such date of insurance, the Secretary shall be
entitled to 100 percent of such equity.</text>
</subparagraph><subparagraph id="id902A43AB5EAF49E582D4A488B72295B1"><enum>(B)</enum><text>If such sale or
refinancing occurs during the period that begins 1 year after such date of
insurance and ends 2 years after such date of insurance, the Secretary shall be
entitled to 90 percent of such equity and the mortgagor shall be entitled to 10
percent of such equity.</text>
</subparagraph><subparagraph id="id64D91471B5C542DBB25788CBEE3567E8"><enum>(C)</enum><text>If such sale or
refinancing occurs during the period that begins 2 years after such date of
insurance and ends 3 years after such date of insurance, the Secretary shall be
entitled to 80 percent of such equity and the mortgagor shall be entitled to 20
percent of such equity.</text>
</subparagraph><subparagraph id="id1E017FA72D0243B8840D4AEDD6D5B218"><enum>(D)</enum><text>If such sale or
refinancing occurs during the period that begins 3 years after such date of
insurance and ends 4 years after such date of insurance, the Secretary shall be
entitled to 70 percent of such equity and the mortgagor shall be entitled to 30
percent of such equity.</text>
</subparagraph><subparagraph id="idECF2FC9D6AF84D39AE29697524E6C159"><enum>(E)</enum><text>If such sale or
refinancing occurs during the period that begins 4 years after such date of
insurance and ends 5 years after such date of insurance, the Secretary shall be
entitled to 60 percent of such equity and the mortgagor shall be entitled to 40
percent of such equity.</text>
</subparagraph><subparagraph id="id11A998C534CC400785F93FF2181D1D17"><enum>(F)</enum><text>If such sale or
refinancing occurs during any period that begins 5 years after such date of
insurance, the Secretary shall be entitled to 50 percent of such equity and the
mortgagor shall be entitled to 50 percent of such equity.</text>
</subparagraph></paragraph><paragraph id="idB2A99ED795F54AB8977064FB238286E6"><enum>(2)</enum><header>Appreciation in
value</header><text>For each eligible mortgage insured under this section, the
Secretary and the mortgagor of such mortgage shall, upon any sale or
disposition of the property to which such mortgage relates, each be entitled to
50 percent of any appreciation in value of the appraised value of such property
that has occurred since the date that such mortgage was insured under this
section.</text>
</paragraph></subsection><subsection id="id5F5CAD1170F74B1AAF41E24F883B5B1B"><enum>(l)</enum><header>Establishment of HOPE
Fund</header>
<paragraph id="idC6AB168FFC534E5C88EE078AE6CAAC4E"><enum>(1)</enum><header>In
general</header><text>There is established in the Federal Housing
Administration a revolving fund to be known as the Home Ownership Preservation
Entity Fund, which shall be used by the Board for carrying out the mortgage
insurance obligations under this section.</text>
</paragraph><paragraph id="id588C8A8F67C148CC843DBFAC48C3C074"><enum>(2)</enum><header>Management of
Fund</header><text>The HOPE Fund shall be administered and managed by the
Secretary, who shall establish reasonable and prudent criteria for the
management and operation of any amounts in the HOPE Fund.</text>
</paragraph></subsection><subsection id="H137A75FACFD94042949F2125BC567B8B"><enum>(m)</enum><header>Limitation on aggregate
insurance authority</header><text display-inline="yes-display-inline">The
aggregate original principal obligation of all mortgages insured under this
section may not exceed $300,000,000,000.</text>
</subsection><subsection id="H291820BE9FD1405FABF500BB8E007B1B"><enum>(n)</enum><header>Reports by the
Board</header><text>The Board shall submit monthly reports to the Congress
identifying the progress of the HOPE for Homeowners Program, which shall
contain the following information for each month:</text>
<paragraph id="H78F60E5377A34EC09D31C7501321BA89"><enum>(1)</enum><text>The number of new
mortgages insured under this section, including the location of the properties
subject to such mortgages by census tract.</text>
</paragraph><paragraph id="HBBEB0A5125F348EDBA71D9EF00656DDB"><enum>(2)</enum><text>The aggregate principal
obligation of new mortgages insured under this section.</text>
</paragraph><paragraph id="H3422481C57A943E089B1F8AB86BEB323"><enum>(3)</enum><text>The average amount by
which the principle balance outstanding on mortgages insured this section was
reduced.</text>
</paragraph><paragraph id="H5EDF534D378D4C0C83FB2C8C7ED414C7"><enum>(4)</enum><text>The amount of premiums
collected for insurance of mortgages under this section.</text>
</paragraph><paragraph id="HC17E02E6D60E44A1A26C5104008343C7"><enum>(5)</enum><text>The claim and loss rates
for mortgages insured under this section.</text>
</paragraph><paragraph id="HE10D893E21C442E5B079E15D3500B7A3"><enum>(6)</enum><text>Any other information
that the Board considers appropriate.</text>
</paragraph></subsection><subsection id="ID66f4dfd84cfe4a958ebb2358770c7d8f"><enum>(o)</enum><header>Required outreach
efforts</header><text>The Secretary shall carry out outreach efforts to ensure
that homeowners, lenders, and the general public are aware of the opportunities
for assistance available under this section.</text>
</subsection><subsection id="HA708EF6917464DDBBB45E3B2CE5EE2FF"><enum>(p)</enum><header>Enhancement of FHA
capacity</header><text>Under the direction of the Board, the Secretary shall
take such actions as may be necessary to—</text>
<paragraph id="HF288F3120F274B6BBD2E6FF9897CD2D0"><enum>(1)</enum><text>contract for the
establishment of underwriting criteria, automated underwriting systems, pricing
standards, and other factors relating to eligibility for mortgages insured
under this section;</text>
</paragraph><paragraph id="H9F358B0086CF4AF1BCF2CFD121C556B"><enum>(2)</enum><text display-inline="yes-display-inline">contract for independent quality reviews of
underwriting, including appraisal reviews and fraud detection, of mortgages
insured under this section or pools of such mortgages; and</text>
</paragraph><paragraph id="HCFB7902569AD49D6B7044209F794479"><enum>(3)</enum><text>increase personnel of the
Department as necessary to process or monitor the processing of mortgages
insured under this section.</text>
</paragraph></subsection><subsection id="HEE65C00DD44A48DCB3E84800CF821E23"><enum>(q)</enum><header>GNMA commitment
authority</header>
<paragraph id="HE08ABFB65EB748789FDC83AAAD4B4ED"><enum>(1)</enum><header>Guarantees</header><text display-inline="yes-display-inline">The Secretary shall take such actions as
may be necessary to ensure that securities based on and backed by a trust or
pool composed of mortgages insured under this section are available to be
guaranteed by the Government National Mortgage Association as to the timely
payment of principal and interest.</text>
</paragraph><paragraph id="H971AB0F83FE3464AB000E1E006975C2"><enum>(2)</enum><header>Guarantee
authority</header><text display-inline="yes-display-inline">To carry out the
purposes of section 306 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1721">12 U.S.C. 1721</external-xref>), the
Government National Mortgage Association may enter into new commitments to
issue guarantees of securities based on or backed by mortgages insured under
this section, not exceeding $300,000,000,000. The amount of authority provided
under the preceding sentence to enter into new commitments to issue guarantees
is in addition to any amount of authority to make new commitments to issue
guarantees that is provided to the Association under any other provision of
law.</text>
</paragraph></subsection><subsection id="id2AF14CD80A714B9FBD9A2A5A11B1EC5E"><enum>(r)</enum><header>Sunset</header><text>The
Secretary may not enter into any new commitment to insure any refinanced
eligible mortgage, or newly insure any refinanced eligible mortgage pursuant to
this section before October 1, 2008 or after September 30, 2011.</text>
</subsection><subsection id="id6DE07E71AA4B4A0F99300E6FFAFF4E25"><enum>(s)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="idC2F72D2DBD34438AAD95C9AE5870E6C7"><enum>(1)</enum><header>Approved financial
institution or mortgagee</header><text>The term <quote>approved financial
institution or mortgagee</quote> means a financial institution or mortgagee
approved by the Secretary under section 203 as responsible and able to service
mortgages responsibly.</text>
</paragraph><paragraph id="id372D0FF9F8F947E8B4AB0BA85AE054BE"><enum>(2)</enum><header>Board</header><text>The
term <quote>Board</quote> means the Board of Directors of the HOPE for
Homeowners Program. The Board shall be composed of the Secretary, the Secretary
of the Treasury, the Chairperson of the Board of Governors of the Federal
Reserve System, and the Chairperson of the Board of Directors of the Federal
Deposit Insurance Corporation.</text>
</paragraph><paragraph id="id1DB6286241F84E42ADFE95618790B403"><enum>(3)</enum><header>Eligible
mortgage</header><text>The term <quote>eligible mortgage</quote> means a
mortgage—</text>
<subparagraph id="idE0F47FCE9D744A8687166F0545678D83"><enum>(A)</enum><text>the mortgagor of
which—</text>
<clause id="idC80C6C0D9B594FF9BA561F62FFDF4AE5"><enum>(i)</enum><text>occupies such property as
his or her principal residence; and</text>
</clause><clause id="id5704DF1FFDE9429497DAC53A1CB5B16D"><enum>(ii)</enum><text>cannot, subject to
subsection (e)(1)(B) and such other standards established by the Board, afford
his or her mortgage payments; and</text>
</clause></subparagraph><subparagraph id="idB92CF4E5B36A4B1EB3F42E295ED708AA"><enum>(B)</enum><text>originated on or before
January 1, 2008.</text>
</subparagraph></paragraph><paragraph id="H2BBF481DBC054B73B9903372E7A9748E"><enum>(4)</enum><header>Existing senior
mortgage</header><text display-inline="yes-display-inline">The term
<quote>existing senior mortgage</quote> means, with respect to a mortgage
insured under this section, the existing mortgage that has superior
priority.</text>
</paragraph><paragraph id="H54CCE247FC3943098C03FD11FF6855A6"><enum>(5)</enum><header>Existing subordinate
mortgage</header><text display-inline="yes-display-inline">The term
<quote>existing subordinate mortgage</quote> means, with respect to a mortgage
insured under this section, an existing mortgage that has subordinate priority
to the existing senior mortgage.</text>
</paragraph><paragraph id="id610A7A2A06434E9C9C2DCB4A142F03C2"><enum>(6)</enum><header>HOPE for Homeowners
Program</header><text>The term <quote>HOPE for Homeowners Program</quote> means
the program established under this section.</text>
</paragraph><paragraph id="id66E1883D826749D991212FF6492B6A5F"><enum>(7)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Housing and Urban
Development, except where specifically provided otherwise.</text>
</paragraph></subsection><subsection id="id9740D12632204EF39C8ADD0DA744CDBD"><enum>(t)</enum><header>Requirements related to
the Board</header>
<paragraph id="H089B4DB6C4A345FE9F1E636087F0CEEE"><enum>(1)</enum><header>Compensation, actual,
necessary, and transportation expenses</header>
<subparagraph id="H8268ACE4C16643468B2FE843B267E101"><enum>(A)</enum><header>Federal
employees</header><text>A member of the Board who is an officer or employee of
the Federal Government shall serve without additional pay (or benefits in the
nature of compensation) for service as a member of the Board.</text>
</subparagraph><subparagraph id="H6541E6204617448995E438A8A8D4BB2D"><enum>(B)</enum><header>Travel
expenses</header><text>Members of the Board shall be entitled to receive travel
expenses, including per diem in lieu of subsistence, equivalent to those set
forth in subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code.</text>
</subparagraph></paragraph><paragraph id="H1324E6E754364E07AD852E98BD526707"><enum>(2)</enum><header>Bylaws</header><text>The
Board may prescribe, amend, and repeal such bylaws as may be necessary for
carrying out the functions of the Board.</text>
</paragraph><paragraph id="H58B4C9FAD73647B9AA60D206CDB33DFD"><enum>(3)</enum><header>Quorum</header><text>A
majority of the Board shall constitute a quorum.</text>
</paragraph><paragraph id="H7CB21F93CCF843BD9EB28F92FA8B893"><enum>(4)</enum><header>Staff; experts and
consultants</header>
<subparagraph id="H3DEC0E41F9BD4E6F83EBD2A6CE35CD72"><enum>(A)</enum><header>Detail of government
employees</header><text>Upon request of the Board, any Federal Government
employee may be detailed to the Board without reimbursement, and such detail
shall be without interruption or loss of civil service status or
privilege.</text>
</subparagraph><subparagraph id="HA62F1CD9DD8B42A6956BD100DC16B8E9"><enum>(B)</enum><header>Experts and
consultants</header><text>The Board shall procure the services of experts and
consultants as the Board considers appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="idF7C25EC7E4194A558B51A0B7A61A9570"><enum>(u)</enum><header>Rule of construction
related to voluntary nature of the program</header><text>This section shall not
be construed to require that any approved financial institution or mortgagee
participate in any activity authorized under this section, including any
activity related to the refinancing of an eligible mortgage.</text>
</subsection><subsection id="idEA6E980F60B448EF9735055F1CDFA98A"><enum>(v)</enum><header>Rule of construction
related to insurance of mortgages</header><text>Except as otherwise provided
for in this section or by action of the Board, the provisions and requirements
of section 203(b) shall apply with respect to the insurance of any eligible
mortgage under this section.</text>
</subsection><subsection id="IDe78d39bb1db44c008243189f49eaa851"><enum>(w)</enum><header>HOPE bonds</header>
<paragraph id="ID17d0a74f19484b55bbf40a1348ec3863"><enum>(1)</enum><header>Issuance and repayment
of bonds</header><text>Notwithstanding section 504(b) of the Federal Credit
Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661d">2 U.S.C. 661d(b)</external-xref>), the Secretary of the Treasury
shall—</text>
<subparagraph id="ID5c52cf8a7d4841a190616f77ff083005"><enum>(A)</enum><text>subject to such terms and
conditions as the Secretary of the Treasury deems necessary, issue Federal
credit instruments, to be known as <quote>HOPE Bonds</quote>, that are callable
at the discretion of the Secretary of the Treasury and do not, in the
aggregate, exceed the amount specified in subsection (m);</text>
</subparagraph><subparagraph id="ID21076fac3058497fa0db63385d67d8b0"><enum>(B)</enum><text>provide the subsidy
amounts necessary for loan guarantees under the HOPE for Homeowners Program,
not to exceed the amount specified in subsection (m), in accordance with the
provisions of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661">2 U.S.C. 661 et seq.</external-xref>),
except as provided in this paragraph; and</text>
</subparagraph><subparagraph id="ID304b98d0ad6849f4865a13843ef85409"><enum>(C)</enum><text>use the proceeds from
HOPE Bonds only to pay for the net costs to the Federal Government of the HOPE
for Homeowners Program, including administrative costs.</text>
</subparagraph></paragraph><paragraph id="ID03a6901dba984431bf34d173ca4a904b"><enum>(2)</enum><header>Reimbursements to
treasury</header><text>Funds received pursuant to section 1338(b) of the
Federal Housing Enterprises Regulatory Reform Act of 1992 shall be used to
reimburse the Secretary of the Treasury for amounts borrowed under paragraph
(1).</text>
</paragraph><paragraph id="idF987B86A36AB4D3BB6F3BC7FB83F38C1"><enum>(3)</enum><header>Use of reserve
fund</header><text>If the net cost to the Federal Government for the HOPE for
Homeowners Program exceeds the amount of funds received under paragraph (2),
remaining debts of the HOPE for Homeowners Program shall be paid from amounts
deposited into the fund established by the Secretary under section 1337(e) of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992,
remaining amounts in such fund to be used to reduce the National debt.</text>
</paragraph><paragraph commented="no" id="id100D0B14740D40F79CD2979A0633C92C"><enum>(4)</enum><header>Reduction of national
debt</header><text>Amounts collected under the HOPE for Homeowners Program in
accordance with subsections (i) and (k) in excess of the net cost to the
Federal Government for such Program shall be used to reduce the National
debt.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id90B22C5189354BEEBD9466102D7568D3"><enum>1403.</enum><header>Fiduciary duty of
servicers of pooled residential mortgage loans</header><text display-inline="no-display-inline">The Truth in Lending Act (15 U.S.C. 1601 et
seq.) is amended by inserting after section 129 the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idCB2CB3537DB1404895EDD16CBF7E7ABF" reported-display-style="italic" style="OLC">
<section id="id0DB242539D754DFC9114318DAB04C51A"><enum>129A.</enum><header>Fiduciary duty of
servicers of pooled residential mortgages</header>
<subsection id="id4B96756900A54E2C9830A03D887F883C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as may be
established in any investment contract between a servicer of pooled residential
mortgages and an investor, a servicer of pooled residential mortgages—</text>
<paragraph id="ID8887772d761a4f18afd17d7f8b762c27"><enum>(1)</enum><text>owes any duty to maximize
the net present value of the pooled mortgages in an investment to all investors
and parties having a direct or indirect interest in such investment, not to any
individual party or group of parties; and</text>
</paragraph><paragraph id="IDa803fe78f34d483e9e3c4fa3d2488f26"><enum>(2)</enum><text>shall be deemed to act in
the best interests of all such investors and parties if the servicer agrees to
or implements a modification or workout plan, including any modification or
refinancing undertaken pursuant to the <short-title>HOPE
for Homeowners Act of 2008</short-title>, for a residential mortgage or a class
of residential mortgages that constitute a part or all of the pooled mortgages
in such investment, provided that any mortgage so modified meets the following
criteria:</text>
<subparagraph id="ID851d5766609648fa9e1d314d1031cce6"><enum>(A)</enum><text>Default on the payment of
such mortgage has occurred or is reasonably foreseeable.</text>
</subparagraph><subparagraph id="ID8189a44359ed40e1968e85ce27883e91"><enum>(B)</enum><text>The property securing
such mortgage is occupied by the mortgagor of such mortgage.</text>
</subparagraph><subparagraph id="ID8384495655ce45e6924cca48c7099c3b"><enum>(C)</enum><text>The anticipated recovery
on the principal outstanding obligation of the mortgage under the modification
or workout plan exceeds, on a net present value basis, the anticipated recovery
on the principal outstanding obligation of the mortgage through
foreclosure.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id11F9D5DB61D94BDD8244323F27AB6C3F"><enum>(b)</enum><header>Definition</header><text>As
used in this section, the term <quote>servicer</quote> has the same meaning as
in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974 (12
U.S.C.
2605(i)(2)).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idB6F0CF0F556740448BC446BB9875C83C"><enum>1404.</enum><header>Revised standards for
FHA appraisers</header><text display-inline="no-display-inline">Section 202(e)
of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1708">12 U.S.C. 1708(e)</external-xref>) is amended by adding at the end
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idCA54F2AB6B9A4039833D47914D182B6B" reported-display-style="italic" style="OLC">
<paragraph id="id4DC60DC7490146519E0F24D1971281EE"><enum>(5)</enum><header>Additional appraiser
standards</header><text display-inline="yes-display-inline">Beginning on the
date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008,
any appraiser chosen or approved to conduct appraisals for mortgages under this
title shall—</text>
<subparagraph id="id59FE0A5BDFD940F78202BFA801869F27"><enum>(A)</enum><text display-inline="yes-display-inline">be certified—</text>
<clause id="id96B6478BF3B445558D29D8031908EAE7"><enum>(i)</enum><text display-inline="yes-display-inline">by the State in which the property to be
appraised is located; or</text>
</clause><clause id="idEA151F20F2C74D2487FC87A2E5476345"><enum>(ii)</enum><text>by a nationally
recognized professional appraisal organization; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID55a5b1d5528a4589b18312510166fd2c"><enum>(B)</enum><text>have demonstrated
verifiable education in the appraisal requirements established by the Federal
Housing Administration under this
subsection.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>V</enum><header>S.A.F.E. Mortgage
Licensing Act</header>
<section id="id3A365E5BEC604EFC8DCBF2ACE6C59387"><enum>1501.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Secure and Fair Enforcement for
Mortgage Licensing Act of 2008</short-title></quote> or <quote><short-title>S.A.F.E.
Mortgage Licensing Act of 2008</short-title></quote>.</text>
</section><section id="H4FD6271858194EBA89FF4E39D6593DD0"><enum>1502.</enum><header>Purposes and methods
for establishing a mortgage licensing system and registry</header><text display-inline="no-display-inline">In order to increase uniformity, reduce
regulatory burden, enhance consumer protection, and reduce fraud, the States,
through the Conference of State Bank Supervisors and the American Association
of Residential Mortgage Regulators, are hereby encouraged to establish a
Nationwide Mortgage Licensing System and Registry for the residential mortgage
industry that accomplishes all of the following objectives:</text>
<paragraph id="H9A7C6E6019704707B2A87E6FF3F8300"><enum>(1)</enum><text>Provides uniform license
applications and reporting requirements for State-licensed loan
originators.</text>
</paragraph><paragraph id="HCE56D8E6284E43FCA472B2D733957F4B"><enum>(2)</enum><text>Provides a comprehensive
licensing and supervisory database.</text>
</paragraph><paragraph id="HCF2DF9F0AAC3433E9085204F6DB4BC06"><enum>(3)</enum><text>Aggregates and improves
the flow of information to and between regulators.</text>
</paragraph><paragraph id="H15EEAC0757C14F63B222009FAF3D49FB"><enum>(4)</enum><text>Provides increased
accountability and tracking of loan originators.</text>
</paragraph><paragraph id="HEF9025BC6F564BB98838E893DD198F79"><enum>(5)</enum><text>Streamlines the licensing
process and reduces the regulatory burden.</text>
</paragraph><paragraph id="HA29BE6A323894A08B15DF81E48D2E3F4"><enum>(6)</enum><text>Enhances consumer
protections and supports anti-fraud measures.</text>
</paragraph><paragraph id="H163415AE01714F089BD10552A411A150"><enum>(7)</enum><text>Provides consumers with
easily accessible information, offered at no charge, utilizing electronic
media, including the Internet, regarding the employment history of, and
publicly adjudicated disciplinary and enforcement actions against, loan
originators.</text>
</paragraph><paragraph id="id8D47752398374974A1916A8490B71608"><enum>(8)</enum><text>Establishes a means by
which residential mortgage loan originators would, to the greatest extent
possible, be required to act in the best interests of the consumer.</text>
</paragraph><paragraph id="idD4AD2A25D3FB4D68B0D6088CB96B730D"><enum>(9)</enum><text>Facilitates responsible
behavior in the subprime mortgage market place and provides comprehensive
training and examination requirements related to subprime mortgage
lending.</text>
</paragraph><paragraph id="ID441c16cc9e65414ba133119bd867719f"><enum>(10)</enum><text>Facilitates the
collection and disbursement of consumer complaints on behalf of State and
Federal mortgage regulators.</text>
</paragraph></section><section display-inline="no-display-inline" id="HB81393B271904B4991EE63D65C94AACC" section-type="subsequent-section"><enum>1503.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, the following
definitions shall apply:</text>
<paragraph id="HBDCA3DE68C5A4FC0B33329D7BC89364C"><enum>(1)</enum><header>Federal banking
agencies</header><text>The term <term>Federal banking agencies</term> means the
Board of Governors of the Federal Reserve System, the Comptroller of the
Currency, the Director of the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance Corporation.</text>
</paragraph><paragraph id="H91845836CBE44F369927005374980041"><enum>(2)</enum><header>Depository
institution</header><text>The term <quote>depository institution</quote> has
the same meaning as in section 3 of the Federal Deposit Insurance Act, and
includes any credit union.</text>
</paragraph><paragraph id="H8B3AA74AF27B47709410C3333B7B8D28"><enum>(3)</enum><header>Loan
originator</header>
<subparagraph id="HFD66AE63CAFC435FAF7529C49B6482A"><enum>(A)</enum><header>In
general</header><text>The term <term>loan originator</term>—</text>
<clause id="HC326BB19B26445D4A19E467832CC4A7"><enum>(i)</enum><text>means an individual
who—</text>
<subclause id="H98AA85EFFB5545A4ADCFD9A194D8BB5"><enum>(I)</enum><text>takes a residential
mortgage loan application; and</text>
</subclause><subclause id="HF9805505BC4449CEA6FB9EA2700FB00"><enum>(II)</enum><text>offers or negotiates
terms of a residential mortgage loan for compensation or gain;</text>
</subclause></clause><clause id="HE00F1831BD61405AA23877AD0516D8C4"><enum>(ii)</enum><text display-inline="yes-display-inline">does not include any individual who is not
otherwise described in clause (i) and who performs purely administrative or
clerical tasks on behalf of a person who is described in any such
clause;</text>
</clause><clause id="HDE0476B22D0F450B9E8224F01B7FE357"><enum>(iii)</enum><text display-inline="yes-display-inline">does not include a person or entity that
only performs real estate brokerage activities and is licensed or registered in
accordance with applicable State law, unless the person or entity is
compensated by a lender, a mortgage broker, or other loan originator or by any
agent of such lender, mortgage broker, or other loan originator; and</text>
</clause><clause id="id46D22EA848DF46B594D936B22DDB763A"><enum>(iv)</enum><text>does not include a
person or entity solely involved in extensions of credit relating to timeshare
plans, as that term is defined in <external-xref legal-doc="usc" parsable-cite="usc/11/101">section 101(53D)</external-xref> of title 11, United States
Code.</text>
</clause></subparagraph><subparagraph id="H47CDDD38858440DFA15FCECA19BE9E43"><enum>(B)</enum><header>Other definitions
relating to loan originator</header><text display-inline="yes-display-inline">For purposes of this subsection, an
individual <quote>assists a consumer in obtaining or applying to obtain a
residential mortgage loan</quote> by, among other things, advising on loan
terms (including rates, fees, other costs), preparing loan packages, or
collecting information on behalf of the consumer with regard to a residential
mortgage loan.</text>
</subparagraph><subparagraph id="H571C59E945664964B12DF5B1984E8C4"><enum>(C)</enum><header>Administrative or
clerical tasks</header><text>The term <term>administrative or clerical
tasks</term> means the receipt, collection, and distribution of information
common for the processing or underwriting of a loan in the mortgage industry
and communication with a consumer to obtain information necessary for the
processing or underwriting of a residential mortgage loan.</text>
</subparagraph><subparagraph id="HDEDE51F71D14431DBF068BC2443FF486"><enum>(D)</enum><header>Real estate brokerage
activity defined</header><text display-inline="yes-display-inline">The term
<quote>real estate brokerage activity</quote> means any activity that involves
offering or providing real estate brokerage services to the public,
including—</text>
<clause id="H03AD18B259BC4F43A4F0F37B5E5DDAC7"><enum>(i)</enum><text>acting as a real estate
agent or real estate broker for a buyer, seller, lessor, or lessee of real
property;</text>
</clause><clause id="H6A7C3A7EDEC242D6AD831B3D93B26B9D"><enum>(ii)</enum><text>bringing together
parties interested in the sale, purchase, lease, rental, or exchange of real
property;</text>
</clause><clause id="H710B7E68BF8E420DA6EAAA60E5EBDB"><enum>(iii)</enum><text>negotiating, on behalf
of any party, any portion of a contract relating to the sale, purchase, lease,
rental, or exchange of real property (other than in connection with providing
financing with respect to any such transaction);</text>
</clause><clause id="H676356FD5B06472D9E9EDAA300524333"><enum>(iv)</enum><text>engaging in any activity
for which a person engaged in the activity is required to be registered or
licensed as a real estate agent or real estate broker under any applicable law;
and</text>
</clause><clause id="H095E9DD36A404502971C7C6B95F91BFC"><enum>(v)</enum><text>offering to engage in any
activity, or act in any capacity, described in clause (i), (ii), (iii), or
(iv).</text>
</clause></subparagraph></paragraph><paragraph id="H235BDC6BFB794570B136075EA3004C14"><enum>(4)</enum><header>Loan processor or
underwriter</header>
<subparagraph id="HBECAB864C3DD4D94BF008B973E810181"><enum>(A)</enum><header>In
general</header><text>The term <term>loan processor or underwriter</term> means
an individual who performs clerical or support duties at the direction of and
subject to the supervision and instruction of—</text>
<clause id="H8DD468F65F2248AAB03C87820094175B"><enum>(i)</enum><text>a State-licensed loan
originator; or</text>
</clause><clause id="H0528C0AABD244369AA69568E1E50D19D"><enum>(ii)</enum><text>a registered loan
originator.</text>
</clause></subparagraph><subparagraph id="H9B44F8AC1DA343D388CB87AC17D33FB5"><enum>(B)</enum><header>Clerical or support
duties</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), the term <term>clerical or support duties</term> may
include—</text>
<clause id="HFD756572E7A74A9AADFAFB79B63D068F"><enum>(i)</enum><text display-inline="yes-display-inline">the receipt, collection, distribution, and
analysis of information common for the processing or underwriting of a
residential mortgage loan; and</text>
</clause><clause id="H3360D7FD8DC34B158FADDC16C15E2425"><enum>(ii)</enum><text display-inline="yes-display-inline">communicating with a consumer to obtain the
information necessary for the processing or underwriting of a loan, to the
extent that such communication does not include offering or negotiating loan
rates or terms, or counseling consumers about residential mortgage loan rates
or terms.</text>
</clause></subparagraph></paragraph><paragraph id="HABD62DCE667D4BD5BF6274511DDB7D00"><enum>(5)</enum><header>Nationwide Mortgage
Licensing System and Registry</header><text>The term <term>Nationwide Mortgage
Licensing System and Registry</term> means a mortgage licensing system
developed and maintained by the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators for the State licensing
and registration of State-licensed loan originators and the registration of
registered loan originators or any system established by the Secretary under
section 1509.</text>
</paragraph><paragraph id="id3C3B1125D03C4106AAFE671DE40F684B"><enum>(6)</enum><header>Nontraditional mortgage
product</header><text>The term <quote>nontraditional mortgage product</quote>
means any mortgage product other than a 30-year fixed rate mortgage.</text>
</paragraph><paragraph id="HD9F32487F6CE49BABB2B3DED73A0DCEF"><enum>(7)</enum><header>Registered loan
originator</header><text>The term <term>registered loan originator</term> means
any individual who—</text>
<subparagraph id="HCD5065BCB6DD41F6AA1DFD20F25DC0E2"><enum>(A)</enum><text>meets the definition of
loan originator and is an employee of—</text>
<clause id="idF6B7DF4753024C588D539893CAF8A10E"><enum>(i)</enum><text>a depository
institution;</text>
</clause><clause id="id119A2FCCB90C441F9A9072BCD366EF81"><enum>(ii)</enum><text>a subsidiary that
is—</text>
<subclause id="id2C76CE1073E94C8081183C00F17AB485"><enum>(I)</enum><text>owned and controlled by a
depository institution; and</text>
</subclause><subclause id="id009B6564D1394B75B9C4916CFF43991C"><enum>(II)</enum><text>regulated by a Federal
banking agency; or</text>
</subclause></clause><clause id="id38839B615D7742BBB76E1466E5D771BE"><enum>(iii)</enum><text>an institution
regulated by the Farm Credit Administration; and</text>
</clause></subparagraph><subparagraph id="H8261EC43A8004B97A7DA49FEA606FDB"><enum>(B)</enum><text>is registered with, and
maintains a unique identifier through, the Nationwide Mortgage Licensing System
and Registry.</text>
</subparagraph></paragraph><paragraph id="HD2A4415D761248C1961F1CF8418EB2CB"><enum>(8)</enum><header>Residential mortgage
loan</header><text display-inline="yes-display-inline">The term
<term>residential mortgage loan</term> means any loan primarily for personal,
family, or household use that is secured by a mortgage, deed of trust, or other
equivalent consensual security interest on a dwelling (as defined in section
103(v) of the Truth in Lending Act) or residential real estate upon which is
constructed or intended to be constructed a dwelling (as so defined).</text>
</paragraph><paragraph id="HB721FDC712364DA9B674CFC539F91389"><enum>(9)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph id="HE099B84E7EF04C8EB0963962C3A05E00"><enum>(10)</enum><header>State-licensed loan
originator</header><text>The term <term>State-licensed loan originator</term>
means any individual who—</text>
<subparagraph id="H1D2EEFA7414D4BE5AF91007EA1338298"><enum>(A)</enum><text>is a loan
originator;</text>
</subparagraph><subparagraph id="H5A247ED0235B40CCBB6F3BF237C098E3"><enum>(B)</enum><text>is not an employee
of—</text>
<clause id="id43CAA38F1DEA412C83D31C2D61D5C613"><enum>(i)</enum><text>a depository
institution;</text>
</clause><clause id="id20715D2023BF4A18B15B7903A6985B9B"><enum>(ii)</enum><text>a subsidiary that
is—</text>
<subclause id="id14E75118A9194D3980979A1B922D68CE"><enum>(I)</enum><text>owned and controlled by a
depository institution; and</text>
</subclause><subclause id="id8D89463EB39F41AFBF41975840312034"><enum>(II)</enum><text>regulated by a Federal
banking agency; or</text>
</subclause></clause><clause id="idFDE881FAD99547ABBB0F6E496BFC9E1B"><enum>(iii)</enum><text>an institution
regulated by the Farm Credit Administration; and</text>
</clause></subparagraph><subparagraph id="H55AB060BEF3D40AC83B6573467FBE3ED"><enum>(C)</enum><text display-inline="yes-display-inline">is licensed by a State or by the Secretary
under section 1508 and registered as a loan originator with, and maintains a
unique identifier through, the Nationwide Mortgage Licensing System and
Registry.</text>
</subparagraph></paragraph><paragraph id="HBC632CDECC714CB7A4EC44EAE9D983B3"><enum>(11)</enum><header>Unique
identifier</header>
<subparagraph id="id1443A5EA4D284BEF8970E8C9E4DA665C"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term <term>unique
identifier</term> means a number or other identifier that—</text>
<clause id="H84B8DBCC756A45A2BAB476491702D284"><enum>(i)</enum><text>permanently identifies a
loan originator;</text>
</clause><clause id="HCFEB65DCEDBD41168F00336C9835F61B"><enum>(ii)</enum><text>is assigned by protocols
established by the Nationwide Mortgage Licensing System and Registry and the
Federal banking agencies to facilitate electronic tracking of loan originators
and uniform identification of, and public access to, the employment history of
and the publicly adjudicated disciplinary and enforcement actions against loan
originators; and</text>
</clause><clause id="id374A150765AC46398DBB2292245CE59A"><enum>(iii)</enum><text>shall not be used for
purposes other than those set forth under this title.</text>
</clause></subparagraph><subparagraph id="id99C5E487EF224381ABFC0A015A1C699F"><enum>(B)</enum><header>Responsibility of
States</header><text>To the greatest extent possible and to accomplish the
purpose of this title, States shall use unique identifiers in lieu of social
security numbers.</text>
</subparagraph></paragraph></section><section id="HD470714EB6464EC4BBB02EFED9AB1041"><enum>1504.</enum><header>License or
registration required</header>
<subsection id="id5D4C93FA91AC457EA9C197D9858BEC2A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">An individual may not
engage in the business of a loan originator without first—</text>
<paragraph id="HBCCEC072A96E4F0094599582D4774FC7"><enum>(1)</enum><text>obtaining, and
maintaining annually—</text>
<subparagraph id="id59DF0E63354348248CCC08EDD7605F26"><enum>(A)</enum><text>a registration as a
registered loan originator; or</text>
</subparagraph><subparagraph id="idC9BA0D55AD044C9CBDE6B221CA1A8FA4"><enum>(B)</enum><text>a license and
registration as a State-licensed loan originator; and</text>
</subparagraph></paragraph><paragraph id="H3392CFDF6FA644B68B69E4F2C9107F54"><enum>(2)</enum><text>obtaining a unique
identifier.</text>
</paragraph></subsection><subsection id="id0092A2BF95AB4F7284381D06F7278F16"><enum>(b)</enum><header>Loan processors and
underwriters</header>
<paragraph id="HAD4C7370891A47A197B77600FAE6E8F0"><enum>(1)</enum><header>Supervised loan
processors and underwriters</header><text display-inline="yes-display-inline">A
loan processor or underwriter who does not represent to the public, through
advertising or other means of communicating or providing information (including
the use of business cards, stationery, brochures, signs, rate lists, or other
promotional items), that such individual can or will perform any of the
activities of a loan originator shall not be required to be a State-licensed
loan originator.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H232AEFB5622F45FC917B0044BE8F6B82"><enum>(2)</enum><header>Independent
contractors</header><text display-inline="yes-display-inline">An independent
contractor may not engage in residential mortgage loan origination activities
as a loan processor or underwriter unless such independent contractor is a
State-licensed loan originator.</text>
</paragraph></subsection></section><section id="HB286680363564B3C882D868FEE05701"><enum>1505.</enum><header>State license and
registration application and issuance</header>
<subsection id="H575DF742D43D49879837687480FADC26"><enum>(a)</enum><header>Background
checks</header><text>In connection with an application to any State for
licensing and registration as a State-licensed loan originator, the applicant
shall, at a minimum, furnish to the Nationwide Mortgage Licensing System and
Registry information concerning the applicant’s identity, including—</text>
<paragraph id="H1B825AC7F5A94232A495294EC540BA2F"><enum>(1)</enum><text>fingerprints for
submission to the Federal Bureau of Investigation, and any governmental agency
or entity authorized to receive such information for a State and national
criminal history background check; and</text>
</paragraph><paragraph id="H312B8DF4F7D0481B95C009D035AD32E0"><enum>(2)</enum><text>personal history and
experience, including authorization for the System to obtain—</text>
<subparagraph id="H746D289FB0EB47C58C6B18BA4D00D599"><enum>(A)</enum><text>an independent credit
report obtained from a consumer reporting agency described in section 603(p) of
the Fair Credit Reporting Act; and</text>
</subparagraph><subparagraph id="H756106694099408A9B261ED9C1AE04A0"><enum>(B)</enum><text>information related to
any administrative, civil or criminal findings by any governmental
jurisdiction.</text>
</subparagraph></paragraph></subsection><subsection id="H41297B21B1BD448E8EF03CB901E3446"><enum>(b)</enum><header>Issuance of
license</header><text>The minimum standards for licensing and registration as a
State-licensed loan originator shall include the following:</text>
<paragraph id="HD7A1B84189D54377A28070C700B5B357"><enum>(1)</enum><text>The applicant has never
had a loan originator license revoked in any governmental jurisdiction.</text>
</paragraph><paragraph id="H726A75BE8845453B80192BE77EDF9DD5"><enum>(2)</enum><text display-inline="yes-display-inline">The applicant has not been convicted of, or
pled guilty or nolo contendere to, a felony in a domestic, foreign, or military
court—</text>
<subparagraph id="id1CBB34CAB799455FA31A1965F476309A"><enum>(A)</enum><text display-inline="yes-display-inline">during the 7-year period preceding the date
of the application for licensing and registration; or</text>
</subparagraph><subparagraph id="id8CD5EA4CE52C4CA08F81B767EF66A234"><enum>(B)</enum><text>at any time preceding
such date of application, if such felony involved an act of fraud, dishonesty,
or a breach of trust, or money laundering.</text>
</subparagraph></paragraph><paragraph id="H794461D5D39C42B8AF081511A509EA5"><enum>(3)</enum><text>The applicant has
demonstrated financial responsibility, character, and general fitness such as
to command the confidence of the community and to warrant a determination that
the loan originator will operate honestly, fairly, and efficiently within the
purposes of this title.</text>
</paragraph><paragraph id="HCC1C202F751D4216A212AE7B03D16571"><enum>(4)</enum><text>The applicant has
completed the pre-licensing education requirement described in subsection
(c).</text>
</paragraph><paragraph id="H87F8A07A8CA64A78A0874F5F7EC41471"><enum>(5)</enum><text>The applicant has passed
a written test that meets the test requirement described in subsection
(d).</text>
</paragraph><paragraph id="IDfec101f503fa41c19d9d540fd6c07ee8"><enum>(6)</enum><text>The applicant has met
either a net worth or surety bond requirement, as required by the State
pursuant to section 1508(d)(6).</text>
</paragraph></subsection><subsection id="id3D3FD4092B994FCCB1149163FD3016A2"><enum>(c)</enum><header>Pre-licensing education
of loan originators</header>
<paragraph id="H6E128E207C8E4DC987CFF68D67F66881"><enum>(1)</enum><header>Minimum educational
requirements</header><text display-inline="yes-display-inline">In order to meet
the pre-licensing education requirement referred to in subsection (b)(4), a
person shall complete at least 20 hours of education approved in accordance
with paragraph (2), which shall include at least—</text>
<subparagraph id="id3EE3EF7FF8F048D0ACDD8BF17AF86260"><enum>(A)</enum><text display-inline="yes-display-inline">3 hours of Federal law and
regulations;</text>
</subparagraph><subparagraph id="id343C5DAFBC1347E59CF5F74E07206F11"><enum>(B)</enum><text display-inline="yes-display-inline">3 hours of ethics, which shall include
instruction on fraud, consumer protection, and fair lending issues; and</text>
</subparagraph><subparagraph id="idEC7969D750224573AAC38EB1FC0A8160"><enum>(C)</enum><text display-inline="yes-display-inline">2 hours of training related to lending
standards for the nontraditional mortgage product marketplace.</text>
</subparagraph></paragraph><paragraph id="H02AF274A7A314CDABB20EFF5B800AFD"><enum>(2)</enum><header>Approved educational
courses</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), pre-licensing education courses shall be reviewed, and approved
by the Nationwide Mortgage Licensing System and Registry.</text>
</paragraph><paragraph id="H83CA523D3AD14DB99DD7A4E01FB8F209"><enum>(3)</enum><header>Limitation and
standards</header>
<subparagraph id="HD2B8F12E68754133889607AF1FFBF553"><enum>(A)</enum><header>Limitation</header><text display-inline="yes-display-inline">To maintain the independence of the
approval process, the Nationwide Mortgage Licensing System and Registry shall
not directly or indirectly offer pre-licensure educational courses for loan
originators.</text>
</subparagraph><subparagraph id="H4321E8E4387043E1BF220074E0F4CF80"><enum>(B)</enum><header>Standards</header><text display-inline="yes-display-inline">In approving courses under this section,
the Nationwide Mortgage Licensing System and Registry shall apply reasonable
standards in the review and approval of courses.</text>
</subparagraph></paragraph></subsection><subsection id="H6B66AD1018AE4415B0A274695258DE1C"><enum>(d)</enum><header>Testing of loan
originators</header>
<paragraph id="HD0F3C73A88C54C790097544462C7743F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In order to meet the
written test requirement referred to in subsection (b)(5), an individual shall
pass, in accordance with the standards established under this subsection, a
qualified written test developed by the Nationwide Mortgage Licensing System
and Registry and administered by an approved test provider.</text>
</paragraph><paragraph id="H38DBBDFB8D8A4A1F97E5C8A9AB64B2DB"><enum>(2)</enum><header>Qualified
test</header><text>A written test shall not be treated as a qualified written
test for purposes of paragraph (1) unless the test adequately measures the
applicant’s knowledge and comprehension in appropriate subject areas,
including—</text>
<subparagraph id="H8C18EBFA4A4D4E49B2746E6FF54C7800"><enum>(A)</enum><text>ethics;</text>
</subparagraph><subparagraph id="HBBAB43B3DBD1417A8C36548D5E58ADE5"><enum>(B)</enum><text>Federal law and
regulation pertaining to mortgage origination;</text>
</subparagraph><subparagraph id="HDA26AFA869294FDDA6D08D5B3D35F1DA"><enum>(C)</enum><text>State law and regulation
pertaining to mortgage origination;</text>
</subparagraph><subparagraph id="IDc2332f70dde54eeca37eebe08fe48b2c"><enum>(D)</enum><text>Federal and State law and
regulation, including instruction on fraud, consumer protection, the
nontraditional mortgage marketplace, and fair lending issues.</text>
</subparagraph></paragraph><paragraph id="H1A4615F679244E1AB92CB7EC05F7E3E4"><enum>(3)</enum><header>Minimum
competence</header>
<subparagraph id="HA51D71A2DAEF41F8B2E3806F212B89C1"><enum>(A)</enum><header>Passing
score</header><text>An individual shall not be considered to have passed a
qualified written test unless the individual achieves a test score of not less
than 75 percent correct answers to questions.</text>
</subparagraph><subparagraph id="HB3B318059DFC46BFA8C6006C4B029B1E"><enum>(B)</enum><header>Initial
retests</header><text>An individual may retake a test 3 consecutive times with
each consecutive taking occurring at least 30 days after the preceding
test.</text>
</subparagraph><subparagraph id="HA498A17EF3154FB0A3234146DDB4499"><enum>(C)</enum><header>Subsequent
retests</header><text>After failing 3 consecutive tests, an individual shall
wait at least 6 months before taking the test again.</text>
</subparagraph><subparagraph id="HF8A2EFD9F21041299583525C83FA0062"><enum>(D)</enum><header>Retest after lapse of
license</header><text>A State-licensed loan originator who fails to maintain a
valid license for a period of 5 years or longer shall retake the test, not
taking into account any time during which such individual is a registered loan
originator.</text>
</subparagraph></paragraph></subsection><subsection id="idC1F1A4F979984504B619DFC1692A332E"><enum>(e)</enum><header>Mortgage call
reports</header><text>Each mortgage licensee shall submit to the Nationwide
Mortgage Licensing System and Registry reports of condition, which shall be in
such form and shall contain such information as the Nationwide Mortgage
Licensing System and Registry may require.</text>
</subsection></section><section id="H30ED867A6D834B969DC71C1B6F547EA3"><enum>1506.</enum><header>Standards for State
license renewal</header>
<subsection id="idCB0A67C36C8E4E2A88D77412BF19EF03"><enum>(a)</enum><header>In
general</header><text>The minimum standards for license renewal for
State-licensed loan originators shall include the following:</text>
<paragraph id="id5D5A96CF0DB248D8A8759EF2A271B26C"><enum>(1)</enum><text>The loan originator
continues to meet the minimum standards for license issuance.</text>
</paragraph><paragraph id="id0D2DEE6A11DD4BB6BD0FDF6AC338BF07"><enum>(2)</enum><text>The loan originator has
satisfied the annual continuing education requirements described in subsection
(b).</text>
</paragraph></subsection><subsection id="id77B21E19568C46658E1EA394DF2D98A5"><enum>(b)</enum><header>Continuing education
for state-licensed loan originators</header>
<paragraph id="H278116CF89B94345A3BE5BE167DD427"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In order to meet the
annual continuing education requirements referred to in subsection (a)(2), a
State-licensed loan originator shall complete at least 8 hours of education
approved in accordance with paragraph (2), which shall include at least—</text>
<subparagraph id="id9C979417E41B4625A60001A03EE57E31"><enum>(A)</enum><text display-inline="yes-display-inline">3 hours of Federal law and
regulations;</text>
</subparagraph><subparagraph id="id611176FE5E9943D38CD8C4155651BE63"><enum>(B)</enum><text display-inline="yes-display-inline">2 hours of ethics, which shall include
instruction on fraud, consumer protection, and fair lending issues; and</text>
</subparagraph><subparagraph id="idF3053046C53C46DCAC1C0AA8F7C10C7C"><enum>(C)</enum><text>2 hours of training
related to lending standards for the nontraditional mortgage product
marketplace.</text>
</subparagraph></paragraph><paragraph id="HADAD8BB41D4C4EC9A270220018BA9827"><enum>(2)</enum><header>Approved educational
courses</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), continuing education courses shall be reviewed, and approved by
the Nationwide Mortgage Licensing System and Registry.</text>
</paragraph><paragraph id="H82B3F075DA754B0691A37478FD000804"><enum>(3)</enum><header>Calculation of
continuing education credits</header><text display-inline="yes-display-inline">A State-licensed loan originator—</text>
<subparagraph id="H4F25DAF4A7F3467980ED82E0FF319D47"><enum>(A)</enum><text>may only receive credit
for a continuing education course in the year in which the course is taken;
and</text>
</subparagraph><subparagraph id="H55E81883DD014A1C80D279233EEFBA1"><enum>(B)</enum><text>may not take the same
approved course in the same or successive years to meet the annual requirements
for continuing education.</text>
</subparagraph></paragraph><paragraph id="H0D5A78B50AF64C7C9C17CE1112A7C2AD"><enum>(4)</enum><header>Instructor
credit</header><text display-inline="yes-display-inline">A State-licensed loan
originator who is approved as an instructor of an approved continuing education
course may receive credit for the originator’s own annual continuing education
requirement at the rate of 2 hours credit for every 1 hour taught.</text>
</paragraph><paragraph id="H65391D379BC74BF7A0BA1770ECAF2961"><enum>(5)</enum><header>Limitation and
standards</header>
<subparagraph id="H73D20C4FD35346CF9836F656ACF9405"><enum>(A)</enum><header>Limitation</header><text display-inline="yes-display-inline">To maintain the independence of the
approval process, the Nationwide Mortgage Licensing System and Registry shall
not directly or indirectly offer any continuing education courses for loan
originators.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H93607516CA0849E88645EC851B82ED5C"><enum>(B)</enum><header>Standards</header><text display-inline="yes-display-inline">In approving courses under this section,
the Nationwide Mortgage Licensing System and Registry shall apply reasonable
standards in the review and approval of courses.</text>
</subparagraph></paragraph></subsection></section><section id="H7156A0323C56458CB2CCBE0E3315DC4"><enum>1507.</enum><header>System of
registration administration by Federal agencies</header>
<subsection id="HCB1FF931FA3C4A93A472A1752849D1DD"><enum>(a)</enum><header>Development</header>
<paragraph id="H1051B4F775E148549D412B00F004A8E"><enum>(1)</enum><header>In
general</header><text>The Federal banking agencies shall jointly, through the
Federal Financial Institutions Examination Council, and together with the Farm
Credit Administration, develop and maintain a system for registering employees
of a depository institution, employees of a subsidiary that is owned and
controlled by a depository institution and regulated by a Federal banking
agency, or employees of an institution regulated by the Farm Credit
Administration, as registered loan originators with the Nationwide Mortgage
Licensing System and Registry. The system shall be implemented before the end
of the 1-year period beginning on the date of enactment of this title.</text>
</paragraph><paragraph id="H9361EC2104194EDB86332E028EE67646"><enum>(2)</enum><header>Registration
requirements</header><text display-inline="yes-display-inline">In connection
with the registration of any loan originator under this subsection, the
appropriate Federal banking agency and the Farm Credit Administration shall, at
a minimum, furnish or cause to be furnished to the Nationwide Mortgage
Licensing System and Registry information concerning the employees’s identity,
including—</text>
<subparagraph id="H7DEFD55590DE492D85853090B6A8F721"><enum>(A)</enum><text>fingerprints for
submission to the Federal Bureau of Investigation, and any governmental agency
or entity authorized to receive such information for a State and national
criminal history background check; and</text>
</subparagraph><subparagraph id="H5A9D883F9AFE4A9ABDDE9629536E0033"><enum>(B)</enum><text display-inline="yes-display-inline">personal history and experience, including
authorization for the Nationwide Mortgage Licensing System and Registry to
obtain information related to any administrative, civil or criminal findings by
any governmental jurisdiction.</text>
</subparagraph></paragraph></subsection><subsection id="id0D1BD6E9BD4D4326B6B357EBD2DD63B0"><enum>(b)</enum><header>Coordination</header>
<paragraph id="HF35108708B4147E9AF007BE155A90100"><enum>(1)</enum><header>Unique
identifier</header><text>The Federal banking agencies, through the Financial
Institutions Examination Council, and the Farm Credit Administration shall
coordinate with the Nationwide Mortgage Licensing System and Registry to
establish protocols for assigning a unique identifier to each registered loan
originator that will facilitate electronic tracking and uniform identification
of, and public access to, the employment history of and publicly adjudicated
disciplinary and enforcement actions against loan originators.</text>
</paragraph><paragraph id="HDEEBE0D7C60C4CF8B073A6DFAAA9C9E"><enum>(2)</enum><header>Nationwide mortgage
licensing system and registry development</header><text display-inline="yes-display-inline">To facilitate the transfer of information
required by subsection (a)(2), the Nationwide Mortgage Licensing System and
Registry shall coordinate with the Federal banking agencies, through the
Financial Institutions Examination Council, and the Farm Credit Administration
concerning the development and operation, by such System and Registry, of the
registration functionality and data requirements for loan originators.</text>
</paragraph></subsection><subsection id="HC6EACD5FE30C47FF00E4B6F3022D5EC0"><enum>(c)</enum><header>Consideration of
factors and procedures</header><text display-inline="yes-display-inline">In
establishing the registration procedures under subsection (a) and the protocols
for assigning a unique identifier to a registered loan originator, the Federal
banking agencies shall make such de minimis exceptions as may be appropriate to
paragraphs (1)(A) and (2) of section 1504(a), shall make reasonable efforts to
utilize existing information to minimize the burden of registering loan
originators, and shall consider methods for automating the process to the
greatest extent practicable consistent with the purposes of this title.</text>
</subsection></section><section id="H5229D81C293A427EBDE755F5F4B3C2F"><enum>1508.</enum><header>Secretary of Housing
and Urban Development backup authority to establish a loan originator licensing
system</header>
<subsection id="H6351CD3C45834A0A9EA40095E8F40700"><enum>(a)</enum><header>Backup licensing
system</header><text display-inline="yes-display-inline">If, by the end of the
1-year period, or the 2-year period in the case of a State whose legislature
meets only biennially, beginning on the date of the enactment of this title or
at any time thereafter, the Secretary determines that a State does not have in
place by law or regulation a system for licensing and registering loan
originators that meets the requirements of sections 1505 and 1506 and
subsection (d) of this section, or does not participate in the Nationwide
Mortgage Licensing System and Registry, the Secretary shall provide for the
establishment and maintenance of a system for the licensing and registration by
the Secretary of loan originators operating in such State as State-licensed
loan originators.</text>
</subsection><subsection id="H65701BA1FB504889A25676EB97A8AAD9"><enum>(b)</enum><header>Licensing and
registration requirements</header><text display-inline="yes-display-inline">The
system established by the Secretary under subsection (a) for any State shall
meet the requirements of sections 1505 and 1506 for State-licensed loan
originators.</text>
</subsection><subsection display-inline="no-display-inline" id="HBFD563C35B4B43D1A2091100326E00DA"><enum>(c)</enum><header>Unique
identifier</header><text display-inline="yes-display-inline">The Secretary
shall coordinate with the Nationwide Mortgage Licensing System and Registry to
establish protocols for assigning a unique identifier to each loan originator
licensed by the Secretary as a State-licensed loan originator that will
facilitate electronic tracking and uniform identification of, and public access
to, the employment history of and the publicly adjudicated disciplinary and
enforcement actions against loan originators.</text>
</subsection><subsection commented="no" id="H60CFBC93B17E42128012FD678D5ECA4E"><enum>(d)</enum><header>State licensing law
requirements</header><text display-inline="yes-display-inline">For purposes of
this section, the law in effect in a State meets the requirements of this
subsection if the Secretary determines the law satisfies the following minimum
requirements:</text>
<paragraph commented="no" id="H4A7E3F90887F40CD9E28E2B0EAD8A8CD"><enum>(1)</enum><text display-inline="yes-display-inline">A State loan originator supervisory
authority is maintained to provide effective supervision and enforcement of
such law, including the suspension, termination, or nonrenewal of a license for
a violation of State or Federal law.</text>
</paragraph><paragraph commented="no" id="H409286503F7F4711BE00F578B804AA04"><enum>(2)</enum><text display-inline="yes-display-inline">The State loan originator supervisory
authority ensures that all State-licensed loan originators operating in the
State are registered with Nationwide Mortgage Licensing System and
Registry.</text>
</paragraph><paragraph commented="no" id="H21A5229009914780B791478742610073"><enum>(3)</enum><text display-inline="yes-display-inline">The State loan originator supervisory
authority is required to regularly report violations of such law, as well as
enforcement actions and other relevant information, to the Nationwide Mortgage
Licensing System and Registry.</text>
</paragraph><paragraph id="ID50294cee9cd748ef98a512657eb6bde3"><enum>(4)</enum><text>The State loan originator
supervisory authority has a process in place for challenging information
contained in the Nationwide Mortgage Licensing System and Registry.</text>
</paragraph><paragraph id="id0C311B31B1E74854B8A8DE370B19F8E7"><enum>(5)</enum><text>The State loan originator
supervisory authority has established a mechanism to assess civil money
penalties for individuals acting as mortgage originators in their State without
a valid license or registration.</text>
</paragraph><paragraph id="ID43e03a6c62e34d5cb703a2b75ece7e88"><enum>(6)</enum><text>The State loan originator
supervisory authority has established minimum net worth or surety bonding
requirements that reflect the dollar amount of loans originated by a
residential mortgage loan originator.</text>
</paragraph></subsection><subsection commented="no" id="H9569984EFF7749F4821DAF20B3F54057"><enum>(e)</enum><header>Temporary extension of
period</header><text display-inline="yes-display-inline">The Secretary may
extend, by not more than 24 months, the 1-year or 2-year period, as the case
may be, referred to in subsection (a) for the licensing of loan originators in
any State under a State licensing law that meets the requirements of sections
1505 and 1506 and subsection (d) if the Secretary determines that such State is
making a good faith effort to establish a State licensing law that meets such
requirements, license mortgage originators under such law, and register such
originators with the Nationwide Mortgage Licensing System and Registry.</text>
</subsection><subsection id="id59AAB80759CE463C875FA6EF6779449A"><enum>(f)</enum><header>Contracting
authority</header><text>The Secretary may enter into contracts with qualified
independent parties, as necessary to efficiently fulfill the obligations of the
Secretary under this section.</text>
</subsection></section><section id="HDF222E49C09C465B8186469258000509"><enum>1509.</enum><header>Backup authority to
establish a nationwide mortgage licensing and registry system</header><text display-inline="no-display-inline">If at any time the Secretary determines that
the Nationwide Mortgage Licensing System and Registry is failing to meet the
requirements and purposes of this title for a comprehensive licensing,
supervisory, and tracking system for loan originators, the Secretary shall
establish and maintain such a system to carry out the purposes of this title
and the effective registration and regulation of loan originators.</text>
</section><section id="H73C0D1D106F74655BCFE268BDDC453F4"><enum>1510.</enum><header>Fees</header><text display-inline="no-display-inline">The Federal banking agencies, the Farm
Credit Administration, the Secretary, and the Nationwide Mortgage Licensing
System and Registry may charge reasonable fees to cover the costs of
maintaining and providing access to information from the Nationwide Mortgage
Licensing System and Registry, to the extent that such fees are not charged to
consumers for access to such system and registry.</text>
</section><section id="HBDB722F365364C08B6B6116F3EB21EB3"><enum>1511.</enum><header>Background checks of
loan originators</header>
<subsection id="H92F594803BC44E39A07EB23C374F31F2"><enum>(a)</enum><header>Access to
records</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, in providing identification and processing functions,
the Attorney General shall provide access to all criminal history information
to the appropriate State officials responsible for regulating State-licensed
loan originators to the extent criminal history background checks are required
under the laws of the State for the licensing of such loan originators.</text>
</subsection><subsection id="H794BA65874C343DBBEFBF22422812B00"><enum>(b)</enum><header>Agent</header><text display-inline="yes-display-inline">For the purposes of this section and in
order to reduce the points of contact which the Federal Bureau of Investigation
may have to maintain for purposes of subsection (a), the Conference of State
Bank Supervisors or a wholly owned subsidiary may be used as a channeling agent
of the States for requesting and distributing information between the
Department of Justice and the appropriate State agencies.</text>
</subsection></section><section id="H0326C20BAE464BB6A4ACEE8CBF95CD72"><enum>1512.</enum><header>Confidentiality of
information</header>
<subsection id="H9118C198DC21404B90F8890010FBE02D"><enum>(a)</enum><header>System
confidentiality</header><text display-inline="yes-display-inline">Except as
otherwise provided in this section, any requirement under Federal or State law
regarding the privacy or confidentiality of any information or material
provided to the Nationwide Mortgage Licensing System and Registry or a system
established by the Secretary under section 1509, and any privilege arising
under Federal or State law (including the rules of any Federal or State court)
with respect to such information or material, shall continue to apply to such
information or material after the information or material has been disclosed to
the system. Such information and material may be shared with all State and
Federal regulatory officials with mortgage industry oversight authority without
the loss of privilege or the loss of confidentiality protections provided by
Federal and State laws.</text>
</subsection><subsection id="H28F461F34F3848B4884FBC7CD7260900"><enum>(b)</enum><header>Nonapplicability of
certain requirements</header><text>Information or material that is subject to a
privilege or confidentiality under subsection (a) shall not be subject
to—</text>
<paragraph id="HFB044E6AD84C400083C7C1260045BFA3"><enum>(1)</enum><text>disclosure under any
Federal or State law governing the disclosure to the public of information held
by an officer or an agency of the Federal Government or the respective State;
or</text>
</paragraph><paragraph id="H74C9F4445C144C08A9DD8E3DEB56CD18"><enum>(2)</enum><text display-inline="yes-display-inline">subpoena or discovery, or admission into
evidence, in any private civil action or administrative process, unless with
respect to any privilege held by the Nationwide Mortgage Licensing System and
Registry or the Secretary with respect to such information or material, the
person to whom such information or material pertains waives, in whole or in
part, in the discretion of such person, that privilege.</text>
</paragraph></subsection><subsection id="H3A00C209A6934B5C8DA35800117749B3"><enum>(c)</enum><header>Coordination with other
law</header><text>Any State law, including any State open record law, relating
to the disclosure of confidential supervisory information or any information or
material described in subsection (a) that is inconsistent with subsection (a)
shall be superseded by the requirements of such provision to the extent State
law provides less confidentiality or a weaker privilege.</text>
</subsection><subsection id="H7C79B10BC4554C2BB815D7AE6041F846"><enum>(d)</enum><header>Public access to
information</header><text display-inline="yes-display-inline">This section
shall not apply with respect to the information or material relating to the
employment history of, and publicly adjudicated disciplinary and enforcement
actions against, loan originators that is included in Nationwide Mortgage
Licensing System and Registry for access by the public.</text>
</subsection></section><section id="H32C2B4E286014FD98918B777550080B6"><enum>1513.</enum><header>Liability
provisions</header><text display-inline="no-display-inline">The Secretary, any
State official or agency, any Federal banking agency, or any organization
serving as the administrator of the Nationwide Mortgage Licensing System and
Registry or a system established by the Secretary under section 1509, or any
officer or employee of any such entity, shall not be subject to any civil
action or proceeding for monetary damages by reason of the good faith action or
omission of any officer or employee of any such entity, while acting within the
scope of office or employment, relating to the collection, furnishing, or
dissemination of information concerning persons who are loan originators or are
applying for licensing or registration as loan originators.</text>
</section><section id="HEFC2F220035D4881935EF45CB4CD3388" section-type="subsequent-section"><enum>1514.</enum><header>Enforcement under
HUD backup licensing system</header>
<subsection id="H2E53CC982BC54F798EC23C30DEEAFC9C"><enum>(a)</enum><header>Summons
authority</header><text display-inline="yes-display-inline">The Secretary
may—</text>
<paragraph id="H805355991C394611AECCD451BAE03050"><enum>(1)</enum><text>examine any books,
papers, records, or other data of any loan originator operating in any State
which is subject to a licensing system established by the Secretary under
section 1508; and</text>
</paragraph><paragraph id="H96232A965DE7419D95178EDE7746FAFA"><enum>(2)</enum><text display-inline="yes-display-inline">summon any loan originator referred to in
paragraph (1) or any person having possession, custody, or care of the reports
and records relating to such loan originator, to appear before the Secretary or
any delegate of the Secretary at a time and place named in the summons and to
produce such books, papers, records, or other data, and to give testimony,
under oath, as may be relevant or material to an investigation of such loan
originator for compliance with the requirements of this title.</text>
</paragraph></subsection><subsection id="HD7770F3DA9B34AE3BEB12C23AD547CA6"><enum>(b)</enum><header>Examination
authority</header>
<paragraph id="H425F0506B22E412CB31C41EEE9485BC8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Secretary
establishes a licensing system under section 1508 for any State, the Secretary
shall appoint examiners for the purposes of administering such section.</text>
</paragraph><paragraph id="HCFCF9EDFE59247F9B4E700B2E7000052"><enum>(2)</enum><header>Power to
examine</header><text display-inline="yes-display-inline">Any examiner
appointed under paragraph (1) shall have power, on behalf of the Secretary, to
make any examination of any loan originator operating in any State which is
subject to a licensing system established by the Secretary under section 1508
whenever the Secretary determines an examination of any loan originator is
necessary to determine the compliance by the originator with this title.</text>
</paragraph><paragraph id="HC2F1EEDA40234DDE907646F5FA4C99D6"><enum>(3)</enum><header>Report of
examination</header><text display-inline="yes-display-inline">Each examiner
appointed under paragraph (1) shall make a full and detailed report of
examination of any loan originator examined to the Secretary.</text>
</paragraph><paragraph id="H6486B6C46AC84A2EB9ED6D16AF7CB4DE"><enum>(4)</enum><header>Administration of oaths
and affirmations; evidence</header><text display-inline="yes-display-inline">In
connection with examinations of loan originators operating in any State which
is subject to a licensing system established by the Secretary under section
1508, or with other types of investigations to determine compliance with
applicable law and regulations, the Secretary and examiners appointed by the
Secretary may administer oaths and affirmations and examine and take and
preserve testimony under oath as to any matter in respect to the affairs of any
such loan originator.</text>
</paragraph><paragraph id="H77252E89FBF3402796643191F1AD2B22"><enum>(5)</enum><header>Assessments</header><text display-inline="yes-display-inline">The cost of conducting any examination of
any loan originator operating in any State which is subject to a licensing
system established by the Secretary under section 1508 shall be assessed by the
Secretary against the loan originator to meet the Secretary’s expenses in
carrying out such examination.</text>
</paragraph></subsection><subsection id="HDAA7F87938D3464A9EAB5F1FBA4B2FD3"><enum>(c)</enum><header>Cease and desist
proceeding</header>
<paragraph id="HA34DD26F3E954CE7835B59B36EF0023D"><enum>(1)</enum><header>Authority of
secretary</header><text display-inline="yes-display-inline">If the Secretary
finds, after notice and opportunity for hearing, that any person is violating,
has violated, or is about to violate any provision of this title, or any
regulation thereunder, with respect to a State which is subject to a licensing
system established by the Secretary under section 1508, the Secretary may
publish such findings and enter an order requiring such person, and any other
person that is, was, or would be a cause of the violation, due to an act or
omission the person knew or should have known would contribute to such
violation, to cease and desist from committing or causing such violation and
any future violation of the same provision, rule, or regulation. Such order
may, in addition to requiring a person to cease and desist from committing or
causing a violation, require such person to comply, or to take steps to effect
compliance, with such provision or regulation, upon such terms and conditions
and within such time as the Secretary may specify in such order. Any such order
may, as the Secretary deems appropriate, require future compliance or steps to
effect future compliance, either permanently or for such period of time as the
Secretary may specify, with such provision or regulation with respect to any
loan originator.</text>
</paragraph><paragraph id="HA35EF9BDE674411DB600299C61B6AB01"><enum>(2)</enum><header>Hearing</header><text display-inline="yes-display-inline">The notice instituting proceedings pursuant
to paragraph (1) shall fix a hearing date not earlier than 30 days nor later
than 60 days after service of the notice unless an earlier or a later date is
set by the Secretary with the consent of any respondent so served.</text>
</paragraph><paragraph id="H492F7D241F564A9DB83FE8B8AADDE5BC"><enum>(3)</enum><header>Temporary
order</header><text display-inline="yes-display-inline">Whenever the Secretary
determines that the alleged violation or threatened violation specified in the
notice instituting proceedings pursuant to paragraph (1), or the continuation
thereof, is likely to result in significant dissipation or conversion of
assets, significant harm to consumers, or substantial harm to the public
interest prior to the completion of the proceedings, the Secretary may enter a
temporary order requiring the respondent to cease and desist from the violation
or threatened violation and to take such action to prevent the violation or
threatened violation and to prevent dissipation or conversion of assets,
significant harm to consumers, or substantial harm to the public interest as
the Secretary deems appropriate pending completion of such proceedings. Such an
order shall be entered only after notice and opportunity for a hearing, unless
the Secretary determines that notice and hearing prior to entry would be
impracticable or contrary to the public interest. A temporary order shall
become effective upon service upon the respondent and, unless set aside,
limited, or suspended by the Secretary or a court of competent jurisdiction,
shall remain effective and enforceable pending the completion of the
proceedings.</text>
</paragraph><paragraph id="HB7B601171664451AA786036F00AD345D"><enum>(4)</enum><header>Review of temporary
orders</header>
<subparagraph id="H4C07A2DEAA73447CA69789CFCBBAB3"><enum>(A)</enum><header>Review by
secretary</header><text>At any time after the respondent has been served with a
temporary cease and desist order pursuant to paragraph (3), the respondent may
apply to the Secretary to have the order set aside, limited, or suspended. If
the respondent has been served with a temporary cease and desist order entered
without a prior hearing before the Secretary, the respondent may, within 10
days after the date on which the order was served, request a hearing on such
application and the Secretary shall hold a hearing and render a decision on
such application at the earliest possible time.</text>
</subparagraph><subparagraph id="H344A524A4E94474CAA7DFAF5C0DABCDE"><enum>(B)</enum><header>Judicial
review</header><text>Within—</text>
<clause id="HAFE96CE6246445E399FD79588441DCD"><enum>(i)</enum><text>10 days after the date
the respondent was served with a temporary cease and desist order entered with
a prior hearing before the Secretary; or</text>
</clause><clause id="HE1A8428A297445C3BCB4015F8B27CFB9"><enum>(ii)</enum><text>10 days after the
Secretary renders a decision on an application and hearing under paragraph (1),
with respect to any temporary cease and desist order entered without a prior
hearing before the Secretary,</text>
</clause><continuation-text continuation-text-level="subparagraph">the respondent may apply to the United
States district court for the district in which the respondent resides or has
its principal place of business, or for the District of Columbia, for an order
setting aside, limiting, or suspending the effectiveness or enforcement of the
order, and the court shall have jurisdiction to enter such an order. A
respondent served with a temporary cease and desist order entered without a
prior hearing before the Secretary may not apply to the court except after
hearing and decision by the Secretary on the respondent's application under
subparagraph (A).</continuation-text></subparagraph><subparagraph id="H448238270951491FADCB40D25953B16"><enum>(C)</enum><header>No automatic stay of
temporary order</header><text>The commencement of proceedings under
subparagraph (B) shall not, unless specifically ordered by the court, operate
as a stay of the Secretary's order.</text>
</subparagraph></paragraph><paragraph id="H821304BB155544F5BCE176108B2DD319"><enum>(5)</enum><header>Authority of the
Secretary to prohibit persons from serving as loan originators</header><text display-inline="yes-display-inline">In any cease and desist proceeding under
paragraph (1), the Secretary may issue an order to prohibit, conditionally or
unconditionally, and permanently or for such period of time as the Secretary
shall determine, any person who has violated this title or regulations
thereunder, from acting as a loan originator if the conduct of that person
demonstrates unfitness to serve as a loan originator.</text>
</paragraph></subsection><subsection id="H08B15258175542F29096B4D28723195F"><enum>(d)</enum><header>Authority of the
Secretary To assess money penalties</header>
<paragraph id="H4A51B50997EE4C2BA188F71DDE8C66C3"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary may
impose a civil penalty on a loan originator operating in any State which is
subject to a licensing system established by the Secretary under section 1508,
if the Secretary finds, on the record after notice and opportunity for hearing,
that such loan originator has violated or failed to comply with any requirement
of this title or any regulation prescribed by the Secretary under this title or
order issued under subsection (c).</text>
</paragraph><paragraph id="H1A7CA67C054C48DFB0BBAFD582045581"><enum>(2)</enum><header>Maximum amount of
penalty</header><text display-inline="yes-display-inline">The maximum amount of
penalty for each act or omission described in paragraph (1) shall be
$25,000.</text>
</paragraph></subsection></section><section id="idD5C749D13ACE40BBADF08739E816F8F2"><enum>1515.</enum><header>State examination
authority</header><text display-inline="no-display-inline">In addition to any
authority allowed under State law a State licensing agency shall have the
authority to conduct investigations and examinations as follows:</text>
<paragraph id="ID5b9dab34267e44b08249c83951be10b0"><enum>(1)</enum><text>For the purposes of
investigating violations or complaints arising under this title, or for the
purposes of examination, the State licensing agency may review, investigate, or
examine any loan originator licensed or required to be licensed under this
title, as often as necessary in order to carry out the purposes of this
title.</text>
</paragraph><paragraph id="ID6c4e46ea106f4697ae36cd78e47a9411"><enum>(2)</enum><text>Each such loan originator
shall make available upon request to the State licensing agency the books and
records relating to the operations of such originator. The State licensing
agency may have access to such books and records and interview the officers,
principals, loan originators, employees, independent contractors, agents, and
customers of the licensee concerning their business.</text>
</paragraph><paragraph id="ID845547ed6edf4204a8ab750bbc115813"><enum>(3)</enum><text>The authority of this
section shall remain in effect, whether such a loan originator acts or claims
to act under any licensing or registration law of such State, or claims to act
without such authority.</text>
</paragraph><paragraph id="IDf5265c93ae26497ebc66b646e5dafbf9"><enum>(4)</enum><text>No person subject to
investigation or examination under this section may knowingly withhold,
abstract, remove, mutilate, destroy, or secrete any books, records, computer
records, or other information.</text>
</paragraph></section><section id="id5DBE12CBEC1E47EC84D5024D73A4CEA5"><enum>1516.</enum><header>Reports and
recommendations to Congress</header>
<subsection id="id22B82918ABF64992940D50CCB02BB114"><enum>(a)</enum><header>Annual
reports</header><text>Not later than 1 year after the date of enactment of this
title, and annually thereafter, the Secretary shall submit a report to Congress
on the effectiveness of the provisions of this title, including legislative
recommendations, if any, for strengthening consumer protections, enhancing
examination standards, streamlining communication between all stakeholders
involved in residential mortgage loan origination and processing, and
establishing performance based bonding requirements for mortgage originators or
institutions that employ such brokers.</text>
</subsection><subsection id="idF54C76ADEB7E427F88DCE41194B41FD8"><enum>(b)</enum><header>Legislative
recommendations</header><text>Not later than 6 months after the date of
enactment of this title, the Secretary shall make recommendations to Congress
on legislative reforms to the Real Estate Settlement Procedures Act of 1974,
that the Secretary deems appropriate to promote more transparent disclosures,
allowing consumers to better shop and compare mortgage loan terms and
settlement costs.</text>
</subsection></section><section id="id390A0EF4F0754FEA8F0EBC29539C4F00"><enum>1517.</enum><header>Study and reports on
defaults and foreclosures</header>
<subsection id="id6D75FF8AACCB4DC5BDE302FBCDBCE4D7"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Secretary shall
conduct an extensive study of the root causes of default and foreclosure of
home loans, using as much empirical data as is available.</text>
</subsection><subsection id="id24D0E02C388648468E1A264639B86A50"><enum>(b)</enum><header>Preliminary Report to
Congress</header><text display-inline="yes-display-inline">Not later than 6
months after the date of enactment of this title, the Secretary shall submit to
Congress a preliminary report regarding the study required by this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id4751963C31A54363BC2EA351FFF77C3B"><enum>(c)</enum><header>Final report to
Congress</header><text display-inline="yes-display-inline">Not later than 12
months after the date of enactment of this title, the Secretary shall submit to
Congress a final report regarding the results of the study required by this
section, which shall include any recommended legislation relating to the study,
and recommendations for best practices and for a process to provide targeted
assistance to populations with the highest risk of potential default or
foreclosure.</text>
</subsection></section><enum>VI</enum><header>Miscellaneous</header>
<section id="IDB364F40107CC44DE9A45CF87575E475C"><enum>1601.</enum><header>Study and reports on
guarantee fees</header>
<subsection id="ID0FAFE20BF8714A2AAA9C31B83FF1FA2A"><enum>(a)</enum><header>Ongoing study of
fees</header><text>The Director shall conduct an ongoing study of fees charged
by enterprises for guaranteeing a mortgage.</text>
</subsection><subsection id="ID1E06E93EF903481DB53167B1EF0C6C9D"><enum>(b)</enum><header>Collection of
data</header><text>The Director shall, by regulation or order, establish
procedures for the collection of data from enterprises for purposes of this
subsection, including the format and the process for collection of such
data.</text>
</subsection><subsection id="ID7F091D90800D43CAAFBF62F7BD96C7E2"><enum>(c)</enum><header>Reports to
congress</header><text>The Director shall annually submit a report to Congress
on the results of the study conducted under subsection (a), based on the
aggregated data collected under subsection (a) for the subject year, regarding
the amount of such fees and the criteria used by the enterprises to determine
such fees.</text>
</subsection><subsection id="IDB26B6460E7364C31BD9D706C657FD509"><enum>(d)</enum><header>Contents of
reports</header><text>The reports required under subsection (c) shall identify
and analyze—</text>
<paragraph id="ID2A8C858ACCF34D919EB3443D8EC1B80C"><enum>(1)</enum><text>the factors considered in
determining the amount of the guarantee fees charged;</text>
</paragraph><paragraph id="ID0589B3FF05274E669579E16B39E5C47A"><enum>(2)</enum><text>the total revenue earned
by the enterprises from guarantee fees;</text>
</paragraph><paragraph id="ID58CBD7E59D924851ACBBD820236D8256"><enum>(3)</enum><text>the total costs incurred
by the enterprises for providing guarantees;</text>
</paragraph><paragraph id="ID65E3B77B031A404FA7F063245C1A6966"><enum>(4)</enum><text>the average guarantee fee
charged by the enterprises;</text>
</paragraph><paragraph id="IDE08A1371758043D4B241A13968462791"><enum>(5)</enum><text>an analysis of any
increase or decrease in guarantee fees from the preceding year;</text>
</paragraph><paragraph id="IDAD19EB1290E24E9EA4384B2B6C3FE9E9"><enum>(6)</enum><text>a breakdown of the
revenue and costs associated with providing guarantees, based on product type
and risk classifications; and</text>
</paragraph><paragraph id="IDA30E4B778C5C468D9B6ECE74B2E4ADF6"><enum>(7)</enum><text>a breakdown of guarantee
fees charged based on asset size of the originator and the number of loans sold
or transferred to an enterprise.</text>
</paragraph></subsection><subsection id="ID8406FF788B0C4461BD857E8C9E2AD1F6"><enum>(e)</enum><header>Protection of
information</header><text>Nothing in this section may be construed to require
or authorize the Director to publicly disclose information that is confidential
or proprietary.</text>
</subsection></section><section id="id9226E41B45D64C3897D2B980EF013F45"><enum>1602.</enum><header>Study and report on
default risk evaluation</header>
<subsection id="id692ADA0C9FFB4B269CA7E23366210919"><enum>(a)</enum><header>Study</header><text>The
Director shall conduct a study of ways to improve the overall default risk
evaluation used with respect to residential mortgage loans. Particular
attention shall be paid to the development and utilization of processes and
technologies that provide a means to standardize the measurement of
risk.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id64B4DADFB33C4FD88135DF233F7102D4"><enum>(b)</enum><header>Report</header><text>The
Director shall submit a report on the study conducted under this section to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, not later than
1 year after the date of enactment of this Act.</text>
</subsection></section><section id="id7A1CAB6A4CCF4EE3A5B4D59A18A25789"><enum>1603.</enum><header>Conversion of HUD
contracts</header>
<subsection id="id80673E584656415C9A0A55BFA5CDF3D7"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any other provision of law, the Secretary
may, at the request of an owner of a multifamily housing project that exceeds
5,000 units to which a contract for project-based rental assistance under
section 8 of the United States Housing Act of 1937 (<quote>Act</quote>) (42
U.S.C. 1437f) and a Rental Assistance Payment contract is subject, convert such
contracts to a contract for project-based rental assistance under section 8 of
the Act.</text>
</subsection><subsection id="ID39acc8358cbd4dc5809bb4dbd213c9b9"><enum>(b)</enum><header>Initial
renewal</header>
<paragraph id="IDd5e80d5a654d484684b61e4b6669db3b"><enum>(1)</enum><text>At the request of an
owner under subsection (a) made no later than 90 days prior to a conversion,
the Secretary may, to the extent sufficient amounts are made available in
appropriation Acts and notwithstanding any other law, treat the contemplated
resulting contract as if such contract were eligible for initial renewal under
section 524(a) 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) (<quote>MAHRA</quote>) (42 U.S.C. 1437f
note).</text>
</paragraph><paragraph id="IDfa42080f61a042848e30ed84a94ff91d"><enum>(2)</enum><text>A request by an owner
pursuant to paragraph (1) shall be upon such terms and conditions as the
Secretary may require.</text>
</paragraph></subsection><subsection id="idC636BF79946A43119FFB32612690EFEC"><enum>(c)</enum><header>Resulting
contract</header><text>The resulting contract shall—</text>
<paragraph id="IDea5a58d00228449cb54388653a6ca28a"><enum>(1)</enum><text>be subject to section
524(a) of MAHRA (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note);</text>
</paragraph><paragraph id="ID9f6e7d39e90044639c8b1fd8699558ab"><enum>(2)</enum><text>be considered for all
purposes a contract that has been renewed under section 524(a) of MAHRA (42
U.S.C. 1437f note) for a term not to exceed 20 years;</text>
</paragraph><paragraph id="ID0532993ffd62412f8585c8443f1acd0f"><enum>(3)</enum><text>be subsequently renewable
at the request of an owner, under any renewal option for which the project is
eligible under MAHRA (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note);</text>
</paragraph><paragraph id="IDb4b61f0301fd48b7962581f3ddbb1370"><enum>(4)</enum><text>contain provisions
limiting distributions, as the Secretary determines appropriate, not to exceed
10 percent of the initial investment of the owner;</text>
</paragraph><paragraph id="ID8dc2be31bc6440f485a021b643d67e32"><enum>(5)</enum><text>be subject to the
availability of sufficient amounts in appropriation Acts; and</text>
</paragraph><paragraph id="ID1a81e99dc06a426988515a7883cd3a9b"><enum>(6)</enum><text>be subject to such other
terms and conditions as the Secretary considers appropriate.</text>
</paragraph></subsection><subsection id="id3DC2E889CE1F422EA589267D7EDFB71F"><enum>(d)</enum><header>Income
targeting</header><text>To the extent that assisted dwelling units, subject to
the resulting contract under subsection (a), serve low-income families, as
defined in section 3(b)(2) of the Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1437a">42 U.S.C. 1437a(b)(2)</external-xref>) the units shall
be considered to be in compliance with all income targeting requirements under
the Act (42 U.S.C. 1437 et seq).</text>
</subsection><subsection id="id6EFEAEAE6FFA440A861AABE9A5F5511C"><enum>(e)</enum><header>Tenant
eligibility</header><text>Notwithstanding any other provision of law, each
family residing in an assisted dwelling unit on the date of conversion of a
contract under this section, subject to the resulting contract under subsection
(a), shall be considered to meet the applicable requirements for income
eligibility and occupancy.</text>
</subsection><subsection id="id0EB3861D2022487887E599FDD0E56E99"><enum>(f)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="id196DF7C52E3A436BB3F23D5E802CC26F"><enum>(1)</enum><text>the term
<quote>Secretary</quote> means the Secretary of Housing and Urban
Development;</text>
</paragraph><paragraph id="id3E2FA86528464827ACB7C1AAC3ECDA01"><enum>(2)</enum><text>the term
<quote>conversion</quote> means the action under which a contract for
project-based rental assistance under section 8 of the Act and a Rental
Assistance Payment contract become a contract for project-based rental
assistance under section 8 of the Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>) pursuant to subsection
(a);</text>
</paragraph><paragraph id="id97093CDCE936422099890E192ABD6895"><enum>(3)</enum><text>the term <quote>resulting
contract</quote> means the new contract after a conversion pursuant to
subsection (a); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id46431B29E5E44C94B0FD9F50496002BF"><enum>(4)</enum><text>the term <quote>assisted
dwelling unit</quote> means a dwelling unit in a multifamily housing project
that exceeds 5,000 units that, on the date of conversion of a contract under
this section, is subject to a contract for project-based rental assistance
under section 8 of the Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>) or a Rental Assistance Payment
contract.</text>
</paragraph></subsection></section><section id="id1CC7BEB3B06647ABBB5030B57F666B76"><enum>1604.</enum><header>Bridge depository
institutions</header>
<subsection id="id1717BF1BE769452388B988870AEF0BCA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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>) is amended—</text>
<paragraph id="idFA877D3C010C44418E912191DD5B6B55"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (d)(2)—</text>
<subparagraph id="idA1C6226538A744E499B60B0B63415E26"><enum>(A)</enum><text>in subsection (F), by
striking <quote>as receiver</quote> and all that follows through clause (ii)
and inserting the following: <quote>as receiver, with respect to any insured
depository institution, organize a new depository institution under subsection
(m) or a bridge depository institution under subsection (n).</quote>;</text>
</subparagraph><subparagraph id="idC8C05722A96546408C5D89DDF16DCEE6"><enum>(B)</enum><text>in subparagraph (G), by
striking <quote>new bank or a bridge bank</quote> and inserting <quote>new
depository institution or a bridge depository institution</quote>;</text>
</subparagraph></paragraph><paragraph id="idF1CD7A4B4CDB477786396EC485261CB4"><enum>(2)</enum><text>in subsection (e)(10)(C),
by striking <quote>bridge bank</quote> each place that term appears and
inserting <quote>bridge depository institution</quote>;</text>
</paragraph><paragraph id="id406FDBA2878C403DB430620304CD161C"><enum>(3)</enum><text>in subsection (m)—</text>
<subparagraph id="id740EE4114EC047D886195C62D323FF03"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">banks</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">depository
institutions</header-in-text></quote>;</text>
</subparagraph><subparagraph id="id065BE67513B04087B1F35C7699EEC2C0"><enum>(B)</enum><text>by striking <quote>new
bank</quote> each place that term appears and inserting <quote>new depository
institution</quote>;</text>
</subparagraph><subparagraph id="id491AB2461FCF4004BF257986CFE1DE0F"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>such bank</quote> each
place that term appears and inserting <quote>such depository
institution</quote>;</text>
</subparagraph><subparagraph id="id8944B971C25B48128EA9D32EAB54D4D1"><enum>(D)</enum><text>in paragraph (1), by
inserting <quote>or Federal savings association</quote> after <quote>national
bank</quote>;</text>
</subparagraph><subparagraph id="id2070AC892258456CB8911BF7FD1B9C71"><enum>(E)</enum><text>in paragraph (6), by
striking <quote>only bank</quote> and inserting <quote>only depository
institution</quote>;</text>
</subparagraph><subparagraph id="idAB6A7FD964EB4EE48952173257130EA4"><enum>(F)</enum><text>in paragraph (9), by
inserting <quote>or the Director of the Office of Thrift Supervision, as
appropriate</quote> after <quote>Comptroller of the Currency</quote>;</text>
</subparagraph><subparagraph id="id56C843D4B4AB48408E79BD71681530FC"><enum>(G)</enum><text>in paragraph (15), by
striking <quote>, but in no event</quote> and all that follows through
<quote>located</quote>;</text>
</subparagraph><subparagraph id="id4766EB27788D484089E8D1C685276E98"><enum>(H)</enum><text>in paragraph (16)—</text>
<clause id="id38736242591F472CAE75E088E4D27ADD"><enum>(i)</enum><text>by inserting <quote>or
the Director of the Office of Thrift Supervision, as appropriate,</quote> after
<quote>Comptroller of the Currency</quote> each place that term appears;</text>
</clause><clause id="idD703BF28B18E4EE1920022B6EC8BE991"><enum>(ii)</enum><text>by striking <quote>the
bank</quote> each place that term appears and inserting <quote>the depository
institution</quote>;</text>
</clause><clause id="idA3741B0A176B487AA0ECE5219A2AD48E"><enum>(iii)</enum><text>by inserting <quote>or
Federal savings association</quote> after <quote>national bank</quote> each
place that term appears;</text>
</clause><clause id="idA681C8E7A6E848BB868B7396733D78EC"><enum>(iv)</enum><text>by inserting <quote>or
Federal savings associations</quote> after <quote>national banks</quote>;
and</text>
</clause><clause id="id1D12E7F078AC42699E88C6FCE2E7AF26"><enum>(v)</enum><text>by striking <quote>Such
bank</quote> and inserting <quote>Such depository institution</quote>;
and</text>
</clause></subparagraph><subparagraph id="id97B73261A16C4A0ABA14F7678859E748"><enum>(I)</enum><text>in paragraph (18), by
inserting <quote>or the Director of the Office of Thrift Supervision, as
appropriate,</quote> after <quote>Comptroller of the Currency</quote> each
place that term appears;</text>
</subparagraph></paragraph><paragraph id="idDF0C58B1868C4680A34E24C735EE98FA"><enum>(4)</enum><text>in subsection (n)—</text>
<subparagraph id="id65B96EDB96FF4953A8DBBFD0CF7C6414"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">banks</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">depository
institutions</header-in-text></quote>;</text>
</subparagraph><subparagraph id="idED7026328AD047F6BBAE903816FDE8F7"><enum>(B)</enum><text>by striking <quote>bridge
bank</quote> each place that term appears and inserting <quote>bridge
depository institution</quote>;</text>
</subparagraph><subparagraph id="idAD04D5777543478DB8CBA05D75145ED8"><enum>(C)</enum><text>by striking <quote>bridge
banks</quote> each place that term appears (other than in paragraph (1)(A) and
inserting <quote>bridge depository institutions</quote>;</text>
</subparagraph><subparagraph id="id14A9DB13971B49EF8883DF7419B4D8BD"><enum>(D)</enum><text>by striking <quote>bridge
bank’s</quote> each place that term appears and inserting <quote>bridge
depository institutions</quote>;</text>
</subparagraph><subparagraph commented="no" id="id8A128105E0D34C6291DF269A5CE8BBB1"><enum>(E)</enum><text>by striking
<quote>insured bank</quote> each place that term appears and inserting
<quote>insured depository institution</quote>;</text>
</subparagraph><subparagraph commented="no" id="idF67208EC04B24644BEB4BCEE317D954A"><enum>(F)</enum><text>by striking
<quote>insured banks</quote> each place that term appears and inserting
<quote>insured depository institutions</quote>;</text>
</subparagraph><subparagraph commented="no" id="idD8096F09918244D9BE6B647717885753"><enum>(G)</enum><text>by striking <quote>such
bank</quote> each place that term appears (other than in paragraph (4)(J)) and
inserting <quote>such depository institution</quote>;</text>
</subparagraph><subparagraph id="idC00CDCE2281F4CF898F1CAF9A08DF963"><enum>(H)</enum><text>by striking <quote>the
bank</quote> each place that term appears and inserting <quote>the depository
institution</quote>;</text>
</subparagraph><subparagraph id="id3BAE2CE5930E4BEEA145A3A320E6002F"><enum>(I)</enum><text>in paragraph
(1)(A)—</text>
<clause id="id60CA974ACC9A491190947DD625B06874"><enum>(i)</enum><text>by inserting <quote>,
with respect to 1 or more insured banks, or the Director of the Office of
Thrift Supervision, with respect to 1 or more insured savings
associations,</quote> after <quote>Comptroller of the Currency</quote>;</text>
</clause><clause id="id93E46870678F4F13A62EBED712C06498"><enum>(ii)</enum><text>by inserting <quote>or
Federal savings associations, as appropriate,</quote> after <quote>national
banks</quote>;</text>
</clause><clause id="id91658856E645466494E0DEE414C5015F"><enum>(iii)</enum><text>by inserting <quote>or
Federal savings associations, as applicable,</quote> after <quote>banking
associations</quote>; and</text>
</clause><clause id="id9122F77DECDB48088B4BEAC3F3D19574"><enum>(iv)</enum><text>by striking <quote>as
bridge banks</quote> and inserting <quote>as <quote>bridge depository
institutions</quote></quote>;</text>
</clause></subparagraph><subparagraph id="idC6A0B01E1793430185A3F1962F29B8A1"><enum>(J)</enum><text>in paragraph
(1)(B)—</text>
<clause id="id21BF29AD675747C9AD907796F2512C5F"><enum>(i)</enum><text>by striking <quote>bank
or banks</quote> each place that term appears and inserting <quote>depository
institution or institutions</quote>;</text>
</clause><clause id="idE8C6F9E1D00D4D1F9E98AA69D13C07EA"><enum>(ii)</enum><text>by striking <quote>of a
bank</quote>; and</text>
</clause><clause id="idAE40A9105DB94E2D83248C8A757E5A96"><enum>(iii)</enum><text>by striking <quote>of
that bank</quote>;</text>
</clause></subparagraph><subparagraph id="idAD7891D518B64A7C88EBA9AEB87594CD"><enum>(K)</enum><text>in paragraph (1)(E), by
inserting before the period <quote>, in the case of 1 or more insured banks,
and as a Federal savings association, in the case of 1 or more insured savings
associations</quote>;</text>
</subparagraph><subparagraph id="id6118A6AF156A4086BE8841BD203A6341"><enum>(L)</enum><text>in paragraph (2)—</text>
<clause commented="no" id="id3FDEAFC9BB2B4B7E8A4728C9B51FC92D"><enum>(i)</enum><text>in subparagraph by
inserting <quote>or Federal savings association</quote> after <quote>national
bank</quote> each place that term appears; and</text>
</clause><clause id="id12E01FEF6C144ECAB5784E8C4C150817"><enum>(ii)</enum><text>by inserting <quote>or
the Director of the Office of Thrift Supervision</quote> after
<quote>Comptroller of the Currency</quote>;</text>
</clause></subparagraph><subparagraph id="idED1CF33E264141EEBAF206771E49A3CB"><enum>(M)</enum><text>in paragraph (4)—</text>
<clause id="id7A06EFADF6F04CDAAEADDC1B87FFA974"><enum>(i)</enum><text>in subparagraph (C), by
striking <quote>under section 5138 of the Revised Statutes or any other</quote>
and inserting <quote>under any</quote>;</text>
</clause><clause id="id3D68EAFB7EBC41B691EC164768B257D0"><enum>(ii)</enum><text>by inserting <quote>and
the Director of the Office of Thrift Supervision, as appropriate,</quote> after
<quote>Comptroller of the Currency</quote> each place that term appears;</text>
</clause><clause id="idDA2D6317B3A64C44BCCFD00C705DA7A0"><enum>(iii)</enum><text>in subparagraph (D), by
striking <quote>bank’s</quote> and inserting <quote>depository
institution’s</quote>; and</text>
</clause><clause id="id3EB4FBF3651048F1BC90CD6846CC3006"><enum>(iv)</enum><text>in subparagraph (F), by
inserting before the period <quote>or Federal home loan bank</quote>;</text>
</clause></subparagraph><subparagraph id="id24DFBC2A9F354B78BBF22E19886A175B"><enum>(N)</enum><text>in paragraph (8)—</text>
<clause id="id137D2ACBA98C410B8FE57D641D5D3056"><enum>(i)</enum><text>in subparagraph (A), by
striking <quote>the banks</quote> and inserting <quote>the depository
institutions</quote>;</text>
</clause><clause id="id95B01E745E2F44118971040458C36210"><enum>(ii)</enum><text>in subparagraph (B), by
striking <quote>bank’s</quote> and inserting <quote>depository
institution’s</quote>;</text>
</clause></subparagraph><subparagraph id="id5AF4259199C045BC8A75AB61FEFF30AD"><enum>(O)</enum><text>in paragraph (11), by
inserting <quote>or a Federal savings association, as the case may be,</quote>
after <quote>national bank</quote> each place that term appears;</text>
</subparagraph><subparagraph id="idFDA98FC6E5A9430E99C5265553FC4E74"><enum>(P)</enum><text>in paragraph (12)—</text>
<clause id="id339AF49610BE467AAB8EE23DEB310877"><enum>(i)</enum><text>by inserting <quote>or
the Director of the Office of Thrift Supervision, as appropriate,</quote> after
<quote>Comptroller of the Currency</quote> each place that term appears;
and</text>
</clause><clause id="idD5E873A4DF88407F9685E872FE5BE475"><enum>(ii)</enum><text>by inserting <quote>or
Federal savings associations, as appropriate</quote> after <quote>national
banks</quote>; and</text>
</clause></subparagraph><subparagraph id="idF50010EAA24A4EA385C847A9A68A3E77"><enum>(Q)</enum><text>in paragraph (13), by
striking <quote>single bank</quote> and inserting <quote>single depository
institution</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="idBD0705AB0CF74B2CAC60790F6F5C148A"><enum>(b)</enum><header>Other Conforming
amendments</header>
<paragraph id="idBDED130E6F9F462CA95FF57A3CD405D9"><enum>(1)</enum><header>Federal Deposit
Insurance Act</header><text>The Federal Deposit Insurance Act (12 U.S.C. 1811
et seq.) is amended—</text>
<subparagraph id="idC5FDE65FC4F8444698F2E0CEA73A95E2"><enum>(A)</enum><text>in section 3 (12 U.S.C.
1813), by striking subsection (i) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id42A1E0AAB60748E7A90F138A06309501" reported-display-style="italic" style="OLC">
<subsection id="id1AA98F16A4034877AED840749565A111"><enum>(i)</enum><header>New Depository
Institution and Bridge Depository Institution Defined</header>
<paragraph id="ID574da84abd2f4814b87c62f5dd7b75d6"><enum>(1)</enum><header>New depository
institution</header><text>The term <quote>new depository institution</quote>
means a new national bank or Federal savings association, other than a bridge
depository institution, organized by the Corporation in accordance with section
11(m).</text>
</paragraph><paragraph id="ID947ab7a4b76546d2b759c06ab2b3b12f"><enum>(2)</enum><header>Bridge depository
institution</header><text>The term <quote>bridge depository institution</quote>
means a new national bank or Federal savings association organized by the
Corporation in accordance with section
11(n).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id1976CA3CF8FA4965B5CE4C82330EDA55"><enum>(B)</enum><text>in section 10(d)(5)(B)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1820">12 U.S.C. 1820(d)(5)(B)</external-xref>), by striking <quote>bridge bank</quote> and inserting
<quote>bridge depository institution</quote>;</text>
</subparagraph><subparagraph id="id2F8AC775157D4AD295F9BFF3080FAF98"><enum>(C)</enum><text>in section 12 (12 U.S.C.
1822), by striking <quote>new bank</quote> each place that term appears and
inserting <quote>new depository institution</quote>;and</text>
</subparagraph><subparagraph id="id8A50B03DFD67445D85665CCB278568FE"><enum>(D)</enum><text>in section 38(j)(2) (12
U.S.C. 1831o(j)(2)), by striking <quote>bridge bank</quote> and inserting
<quote>bridge depository institution</quote>.</text>
</subparagraph></paragraph><paragraph id="idF7BF5C0307D148C0A9A2D8D5154F71BF"><enum>(2)</enum><header>Federal credit union
act</header><text>Section 207(c)(10)(C)(i) of the Federal Credit Union Act (12
U.S.C. 1787(c)(10)(C)(i)) is amended by striking <quote>bridge bank</quote> and
inserting <quote>bridge depository institution</quote>.</text>
</paragraph><paragraph id="idE79A9AFB213D49D6BA45EF55368F23CA"><enum>(3)</enum><header>Title
11</header><text><external-xref legal-doc="usc" parsable-cite="usc/11/783">Section 783</external-xref> of title 11, United States Code, is amended by
striking <quote>bridge bank</quote> and inserting <quote>bridge depository
institution</quote>.</text>
</paragraph><paragraph id="id2F8C54B24915410EB94043E71027A0D8"><enum>(4)</enum><header>Title
26</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414(l)(2)(G)</external-xref> of the Internal Revenue Code of 1986, is
amended by striking <quote>bridge bank</quote> and inserting <quote>bridge
depository institution</quote>.</text>
</paragraph></subsection></section><section id="id1E0E2B52FBF44F3BA2603FED6EB913A5"><enum>1605.</enum><header>Sense of the
Senate</header><text display-inline="no-display-inline">It is the sense of the
Senate that in implementing or carrying out any provision of this Act, or any
amendment made by this Act, the Senate supports a policy of noninterference
regarding local government requirements that the holder of a foreclosed
property maintain that property.</text>
</section>B
2001.This division may be cited as the
Foreclosure Prevention Act of
2008
.
2002.For purposes of
Senate enforcement, all provisions of this division are designated as emergency
requirements and necessary to meet emergency needs pursuant to section 204 of
S. Con. Res. 21 (110th Congress), the concurrent resolution on the budget for
fiscal year 2008.
<enum>I</enum><header>FHA Modernization Act of
2008</header>
<section id="id6BB5675542FF4D25B94948E5CCF72965"><enum>2101.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>FHA Modernization Act of 2008</quote>.</text>
</section><subtitle commented="no" id="id34EFB84BE7AE4337B272596348FF0F61" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Building American Homeownership</header>
<section commented="no" display-inline="no-display-inline" id="id392BF573D7614CBC84BCC9547B2C3ED3" section-type="subsequent-section"><enum>2111.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote>Building American Homeownership Act of 2008</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H60B7625FDFCA412A9E585307AF4CA67" section-type="subsequent-section"><enum>2112.</enum><header display-inline="yes-display-inline">Maximum principal loan obligation</header>
<subsection commented="no" display-inline="no-display-inline" id="id4C04CDD906BD4D02AEA82BE25150AFF4"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 203(b)(2) of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(2)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF587D6C043024B1A97D1642734146709"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subparagraphs (A) and (B) to
read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB7FD18F06E9F43DEA5046852386D95DF" reported-display-style="italic" style="OLC">
<subparagraph id="HFC40240962964433AF9583134E344B00"><enum>(A)</enum><text display-inline="yes-display-inline">not to exceed the lesser of—</text>
<clause id="H9F612D3ABA9F43E7B5C03597480170C7"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a 1-family residence, 110
percent of the median 1-family house price in the area, as determined by the
Secretary; and in the case of a 2-, <linebreak></linebreak>3-, or 4-family residence, the
percentage of such median price that bears the same ratio to such median price
as the dollar amount limitation determined under section 305(a)(2) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)(2)</external-xref>) for a 2-, 3-, or 4-family residence,
respectively, bears to the dollar amount limitation determined under such
section for a 1-family residence; or</text>
</clause><clause id="H79C2BE41307F48D8B1928C5FB6F67300"><enum>(ii)</enum><text display-inline="yes-display-inline">150 percent of the dollar amount limitation
determined under section 305(a)(2) of the Federal Home Loan Mortgage
Corporation Act for a residence of applicable size,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">except that the dollar amount limitation
in effect under this subparagraph for any size residence for any area may not
be less than the greater of: (I) the dollar amount limitation in effect under
this section for the area on October 21, 1998; or (II) 65 percent of the dollar
amount limitation determined under such section 305(a)(2) for a residence of
the applicable size; and</continuation-text></subparagraph><subparagraph id="id6BF55D9FCDCB48C99BA0B317E0CE60DC"><enum>(B)</enum><text>not to exceed 100 percent
of the appraised value of the property.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30A1B62AEC22466D813369291B545A92"><enum>(2)</enum><text>in the matter following
subparagraph (B), by striking the second sentence (relating to a definition of
<quote>average closing cost</quote>) and all that follows through
<quote>section 3103A(d) of title 38, United States Code.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB6B159019F7C4F1EB59D5BA774E77868"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall take effect upon
the expiration of the date described in section 202(a) of the Economic Stimulus
Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/185">Public Law 110–185</external-xref>).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id231152FEB52C451DBE63FC5E006EC8E0" section-type="subsequent-section"><enum>2113.</enum><header display-inline="yes-display-inline">Cash investment requirement and prohibition
of seller-funded down payment assistance</header><text display-inline="no-display-inline">Paragraph (9) of section 203(b) of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(9)</external-xref>) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDD286A70E6EF4819A41FDE751BB29105" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idC948F606FDB24650A7A475584AADECDC"><enum>(9)</enum><header display-inline="yes-display-inline">Cash Investment requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id0C3464FDB93B4EE78BE987F6D4EEA7F0"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A mortgage insured under this section shall
be executed by a mortgagor who shall have paid, in cash, on account of the
property an amount equal to not less than 3.5 percent of the appraised value of
the property or such larger amount as the Secretary may determine.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB19D36E8E7EB4DD38F81965B5434DB78"><enum>(B)</enum><header display-inline="yes-display-inline">Family
members</header><text display-inline="yes-display-inline">For purposes of this
paragraph, the Secretary shall consider as cash or its equivalent any amounts
borrowed from a family member (as such term is defined in section 201), subject
only to the requirements that, in any case in which the repayment of such
borrowed amounts is secured by a lien against the property, that—</text>
<clause commented="no" display-inline="no-display-inline" id="id3118FA395E484120913FF26A3F121394"><enum>(i)</enum><text display-inline="yes-display-inline">such lien shall be subordinate to the
mortgage; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idEE98752B9E6F47F1BD4EE65D677B0113"><enum>(ii)</enum><text display-inline="yes-display-inline">the sum of the principal obligation of the
mortgage and the obligation secured by such lien may not exceed 100 percent of
the appraised value of the property.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id58760A6BDD62428B85936FEF0EF04778"><enum>(C)</enum><header display-inline="yes-display-inline">Prohibited sources</header><text display-inline="yes-display-inline">In no case shall the funds required by
subparagraph (A) consist, in whole or in part, of funds provided by any of the
following parties before, during, or after closing of the property sale:</text>
<clause commented="no" display-inline="no-display-inline" id="id3E49C517E4B7492198D0F0AAE57A96AB"><enum>(i)</enum><text display-inline="yes-display-inline">The seller or any other person or entity
that financially benefits from the transaction.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7CC17F2BBCAA4302980032297888B140"><enum>(ii)</enum><text display-inline="yes-display-inline">Any third party or entity that is
reimbursed, directly or indirectly, by any of the parties described in clause
(i).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H7DF1BB9B2337478299167F64F5B6578F" section-type="subsequent-section"><enum>2114.</enum><header display-inline="yes-display-inline">Mortgage insurance premiums</header><text display-inline="no-display-inline">Section 203(c)(2) of the National Housing
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(c)(2)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA08EFF3AC6144F33A1FC10F6C9F8B429"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A),
by striking <quote>or of the General Insurance Fund</quote> and all that
follows through <quote>section 234(c),,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id77A8BD2D83FF42449194B7F62E08CF28"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3C98F2B12FFC4C3BB061F8F47EFB60A3"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>2.25 percent</quote> and
inserting <quote>3 percent</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id37014651D8E54659A1A32E0F349FF85E"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>2.0 percent</quote> and
inserting <quote>2.75 percent</quote>.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="HBFED2AC846684C6F8E272806A34650FF" section-type="subsequent-section"><enum>2115.</enum><header display-inline="yes-display-inline">Rehabilitation loans</header><text display-inline="no-display-inline">Subsection (k) of section 203 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(k)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7C0CC95DF7EC452CABCFECC8EE4C0215"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>on</quote> and all that follows through <quote>1978</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA0CFABF1D2C4192B1CA49DB8DFF4AB"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB29CB42358FA42B39540B3159D00D432"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance
Fund</quote> the first place it appears and inserting <quote>Mutual Mortgage
Insurance Fund</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8253660EBB8044DB98B271F64F3B8E13"><enum>(B)</enum><text display-inline="yes-display-inline">in the second sentence, by striking the
comma and all that follows through <quote>General Insurance
Fund</quote>.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="H3BCFC19AF00C46F09DA988BF852588E7" section-type="subsequent-section"><enum>2116.</enum><header display-inline="yes-display-inline">Discretionary action</header><text display-inline="no-display-inline">The National Housing Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB411799C2E8042188561B9F156D87795"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (e) of section 202 (12 U.S.C.
1708(e))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5CAE1DEE38E14CBE9B5E61BB00D04FBC"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3)(B), by striking
<quote>section 202(e) of the National Housing Act</quote> and inserting
<quote>this subsection</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9F50402CFD9E44BA9E689DF0DA5E1FEA"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating such subsection as
subsection (f);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H158D663824A24F80AD47729355CC9EC0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (4) of section 203(s)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(s)(4)</external-xref>) and inserting the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H2E4EDB2132FE4E088240B7A4352C8059" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H40E91ABDFEA947CA94B0B914BECA5E60"><enum>(4)</enum><text display-inline="yes-display-inline">the Secretary of
Agriculture;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C9A08D0225444FCB657DD9574A1AB4E"><enum>(3)</enum><text display-inline="yes-display-inline">by transferring subsection (s) of section
203 (as amended by paragraph (2) of this section) to section 202, inserting
such subsection after subsection (d) of section 202, and redesignating such
subsection as subsection (e).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H80CCF6DC3C75403099291800744ED004" section-type="subsequent-section"><enum>2117.</enum><header display-inline="yes-display-inline">Insurance of condominiums</header>
<subsection commented="no" display-inline="no-display-inline" id="H0E756DBD50D542D7A40057CE54D6576D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 234 of the National Housing Act (12
U.S.C. 1715y) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEDAA016FC75F48CBB9CAFF7334C1E7A6"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c), in the first
sentence—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA4FAEED1CC64116A8463B36EFDB1DE3"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> before
<quote>(2)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC29D39E659EA4355A5986FCA093BF3C2"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before the period at the end
the following: <quote>, and (3) the project has a blanket mortgage insured by
the Secretary under subsection (d)</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07F8AB7E49D74D9FBD5B826CF0A2FFD4"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>,
except that</quote> and all that follows and inserting a period.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H476EFC54B64644EB84CCDF19456E5F63"><enum>(b)</enum><header display-inline="yes-display-inline">Definition of Mortgage</header><text display-inline="yes-display-inline">Section 201(a) of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707(a)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6A272DEEACC0413E9BEF3F3C51D56E5D"><enum>(1)</enum><text display-inline="yes-display-inline">before <quote>a first mortgage</quote>
insert <quote>(A)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5123D502381B445DAC5C42ADC66EE483"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or on a leasehold
(1)</quote> and inserting <quote>(B) a first mortgage on a leasehold on real
estate (i)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6735BFD3903A4F2B8233A4DF334E2049"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>or (2)</quote> and
inserting <quote>, or (ii)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H836ACA2051234E2A8BFDEC342E080075"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting before the semicolon the
following: <quote>, or (C) a first mortgage given to secure the unpaid purchase
price of a fee interest in, or long-term leasehold interest in, real estate
consisting of a one-family unit in a multifamily project, including a project
in which the dwelling units are attached, or are manufactured housing units,
semi-detached, or detached, and an undivided interest in the common areas and
facilities which serve the project</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H885D3E92E4D5448F8769D85FB4397B18"><enum>(c)</enum><header display-inline="yes-display-inline">Definition of real estate</header><text display-inline="yes-display-inline">Section 201 of the National Housing Act
(12 U.S.C.
1707) is amended by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H77F30B42104D4DF2B400A8C0602C793D" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H928DC41E3258437491E46CC4A4FEB01"><enum>(g)</enum><text display-inline="yes-display-inline">The term <term>real estate</term> means
land and all natural resources and structures permanently affixed to the land,
including residential buildings and stationary manufactured housing. The
Secretary may not require, for treatment of any land or other property as real
estate for purposes of this title, that such land or property be treated as
real estate for purposes of State
taxation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE4C61BA8EF27450F91624B5CC31BAF90" section-type="subsequent-section"><enum>2118.</enum><header display-inline="yes-display-inline">Mutual Mortgage Insurance Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="HD9547D0BF6A440D6BCE793A396145113"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 202 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1708">12 U.S.C. 1708(a)</external-xref>) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8DCD0CBD21284FD900A8E7F8B56200AC" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H524E07606D5F4C1DA1683126D0593ECA"><enum>(a)</enum><header display-inline="yes-display-inline">Mutual Mortgage Insurance Fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2D974CAF8AE44CE99F19DD6EC2DD89D6"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Subject to the provisions of the Federal
Credit Reform Act of 1990, there is hereby created a Mutual Mortgage Insurance
Fund (in this title referred to as the <quote>Fund</quote>), which shall be
used by the Secretary to carry out the provisions of this title with respect to
mortgages insured under section 203. The Secretary may enter into commitments
to guarantee, and may guarantee, such insured mortgages.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6ADEB692C33740F9A257175CF4EFDCFC"><enum>(2)</enum><header display-inline="yes-display-inline">Limit on loan guarantees</header><text display-inline="yes-display-inline">The authority of the Secretary to enter
into commitments to guarantee such insured mortgages shall be effective for any
fiscal year only to the extent that the aggregate original principal loan
amount under such mortgages, any part of which is guaranteed, does not exceed
the amount specified in appropriations Acts for such fiscal year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H14532D8E24244D3E825C59A22799DC2B"><enum>(3)</enum><header display-inline="yes-display-inline">Fiduciary responsibility</header><text display-inline="yes-display-inline">The Secretary has a responsibility to
ensure that the Mutual Mortgage Insurance Fund remains financially
sound.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D476CCF3DBE4CD198875197A07780F3"><enum>(4)</enum><header display-inline="yes-display-inline">Annual independent actuarial
study</header><text display-inline="yes-display-inline">The Secretary shall
provide for an independent actuarial study of the Fund to be conducted
annually, which shall analyze the financial position of the Fund. The Secretary
shall submit a report annually to the Congress describing the results of such
study and assessing the financial status of the Fund. The report shall
recommend adjustments to underwriting standards, program participation, or
premiums, if necessary, to ensure that the Fund remains financially sound. The
report shall also include an evaluation of the quality control procedures and
accuracy of information utilized in the process of underwriting loans
guaranteed by the Fund. Such evaluation shall include a review of the risk
characteristics of loans based not only on borrower information and
performance, but on risks associated with loans originated or funded by various
entities or financial institutions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAEDC349B35FA485685B516BFADF02EAA"><enum>(5)</enum><header display-inline="yes-display-inline">Quarterly reports</header><text display-inline="yes-display-inline">During each fiscal year, the Secretary
shall submit a report to the Congress for each calendar quarter, which shall
specify for mortgages that are obligations of the Fund—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H03C496D651774FF3814FFF37CF5F66E9"><enum>(A)</enum><text display-inline="yes-display-inline">the cumulative volume of loan guarantee
commitments that have been made during such fiscal year through the end of the
quarter for which the report is submitted;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE91B6B214D6D47BBABC6D1ABF829C3E"><enum>(B)</enum><text display-inline="yes-display-inline">the types of loans insured, categorized by
risk;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE289A415663048E2B27D000058CCE6FD"><enum>(C)</enum><text display-inline="yes-display-inline">any significant changes between actual and
projected claim and prepayment activity;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H300D6168D8A3416BA44278277E71A48C"><enum>(D)</enum><text display-inline="yes-display-inline">projected versus actual loss rates;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H51DB741F86E246808D910048CAD5270"><enum>(E)</enum><text display-inline="yes-display-inline">updated projections of the annual subsidy
rates to ensure that increases in risk to the Fund are identified and mitigated
by adjustments to underwriting standards, program participation, or premiums,
and the financial soundness of the Fund is maintained.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The
first quarterly report under this paragraph shall be submitted on the last day
of the first quarter of fiscal year 2008, or on the last day of the first full
calendar quarter following the enactment of the Building American Homeownership
Act of 2008, whichever is later.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA45B54F5F0C8464BB4A9C158F7B3A66B"><enum>(6)</enum><header display-inline="yes-display-inline">Adjustment of premiums</header><text display-inline="yes-display-inline">If, pursuant to the independent actuarial
study of the Fund required under paragraph (4), the Secretary determines that
the Fund is not meeting the operational goals established under paragraph (7)
or there is a substantial probability that the Fund will not maintain its
established target subsidy rate, the Secretary may either make programmatic
adjustments under this title as necessary to reduce the risk to the Fund, or
make appropriate premium adjustments.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1AF2C2A2E394776A5282BD33C2431E1"><enum>(7)</enum><header display-inline="yes-display-inline">Operational goals</header><text display-inline="yes-display-inline">The operational goals for the Fund
are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H94954EB44B6D4AD2A8F4C4A6D78100A2"><enum>(A)</enum><text display-inline="yes-display-inline">to minimize the default risk to the Fund
and to homeowners by among other actions instituting fraud prevention quality
control screening not later than 18 months after the date of enactment of the
Building American Homeownership Act of 2008; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7FC06B590A4B416492495E6CF2C1D393"><enum>(B)</enum><text display-inline="yes-display-inline">to meet the housing needs of the borrowers
that the single family mortgage insurance program under this title is designed
to
serve.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1ECBD4D83BF949CDB97CD4A3FC8B6E26"><enum>(b)</enum><header display-inline="yes-display-inline">Obligations of Fund</header><text display-inline="yes-display-inline">The National Housing Act is amended as
follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCB8987B1821744CBA3A83FB61DE32478"><enum>(1)</enum><header display-inline="yes-display-inline">Homeownership voucher program
mortgages</header><text display-inline="yes-display-inline">In section 203(v)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(v)</external-xref>)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF9CEF13121534D6E8B55F18EAF3DC8B0"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Notwithstanding section
202 of this title, the</quote> and inserting <quote>The</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD0574308ECBD465097C3AD15AD6673BA"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance
Fund</quote> the first place such term appears and all that follows through the
end of the subsection and inserting <quote>Mutual Mortgage Insurance
Fund.</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2544F362EF204017B622E024D65E62C6"><enum>(2)</enum><header display-inline="yes-display-inline">Home equity conversion
mortgages</header><text display-inline="yes-display-inline">Section
255(i)(2)(A) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20(i)(2)(A)</external-xref>) is
amended by striking <quote>General Insurance Fund</quote> and inserting
<quote>Mutual Mortgage Insurance Fund</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA34793EE40B443ED9E97E61C008C9DEB"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">The National Housing Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBBFEA1C548B948E48C5EB00021CC15BB"><enum>(1)</enum><text display-inline="yes-display-inline">in section 205 (<external-xref legal-doc="usc" parsable-cite="usc/12/1711">12 U.S.C. 1711</external-xref>), by
striking subsections (g) and (h); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0B356972B53A410E9FE9004052DD1BE8"><enum>(2)</enum><text display-inline="yes-display-inline">in section 519(e) (<external-xref legal-doc="usc" parsable-cite="usc/12/1735c">12 U.S.C. 1735c(e)</external-xref>), by
striking <quote>203(b)</quote> and all that follows through
<quote>203(i)</quote> and inserting <quote>203, except as determined by the
Secretary</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H8FAABBE885674EC282A0E8C5E55254D8" section-type="subsequent-section"><enum>2119.</enum><header display-inline="yes-display-inline">Hawaiian home lands and Indian
reservations</header>
<subsection commented="no" display-inline="no-display-inline" id="H507780A251794CDFBAAEBCB2033BACA4"><enum>(a)</enum><header display-inline="yes-display-inline">Hawaiian home lands</header><text display-inline="yes-display-inline">Section 247(c) of the National Housing Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-12">12 U.S.C. 1715z–12(c)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H553F5BE21F7240B2A713C3121554B7D6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance Fund
established in section 519</quote> and inserting <quote>Mutual Mortgage
Insurance Fund</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA8A0707991A4096BCE8A69965552407"><enum>(2)</enum><text display-inline="yes-display-inline">in the second sentence, by striking
<quote>(1) all references</quote> and all that follows through <quote>and
(2)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H636BB133975B4FF79942F4A12092573E"><enum>(b)</enum><header display-inline="yes-display-inline">Indian reservations</header><text display-inline="yes-display-inline">Section 248(f) of the National Housing Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13">12 U.S.C. 1715z–13(f)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFFB5CA8895BB427686DD08D85600DEF9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance
Fund</quote> the first place it appears through <quote>519</quote> and
inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5D3EC7E665804F27B1C25EE28DA14C3B"><enum>(2)</enum><text display-inline="yes-display-inline">in the second sentence, by striking
<quote>(1) all references</quote> and all that follows through <quote>and
(2)</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H34755892DFAA4BC386E1793CC284EAC5" section-type="subsequent-section"><enum>2120.</enum><header display-inline="yes-display-inline">Conforming and technical
amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="H103280FFE15C4D9CBC8231A400487D93"><enum>(a)</enum><header display-inline="yes-display-inline">Repeals</header><text display-inline="yes-display-inline">The following provisions of the National
Housing Act are repealed:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4EB94FE578E24027A05DCB69519DC6EA"><enum>(1)</enum><text display-inline="yes-display-inline">Subsection (i) of section 203 (12 U.S.C.
1709(i)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD916573E2AFF4C26A5DC280000469C68"><enum>(2)</enum><text display-inline="yes-display-inline">Subsection (o) of section 203 (12 U.S.C.
1709(o)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H65CAD5FF329A4AE88CADE891E35E705D"><enum>(3)</enum><text display-inline="yes-display-inline">Subsection (p) of section 203 (12 U.S.C.
1709(p)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB19B229995984899AD4BA17F9BDA243F"><enum>(4)</enum><text display-inline="yes-display-inline">Subsection (q) of section 203 (12 U.S.C.
1709(q)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H999410D928634C6290EFEBA9A4C3157C"><enum>(5)</enum><text display-inline="yes-display-inline">Section 222 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715m">12 U.S.C. 1715m</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD24E94D015B04464983400EB54ECA046"><enum>(6)</enum><text display-inline="yes-display-inline">Section 237 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-2">12 U.S.C. 1715z–2</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97052E9C73BC4CEB9CA8C3A015C8FFB0"><enum>(7)</enum><text display-inline="yes-display-inline">Section 245 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-10">12 U.S.C. 1715z–10</external-xref>).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5346814420E84403978325E9487B5F3F"><enum>(b)</enum><header display-inline="yes-display-inline">Definition of area</header><text display-inline="yes-display-inline">Section 203(u)(2)(A) of the National
Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(u)(2)(A)</external-xref>) is amended by striking
<quote>shall</quote> and all that follows and inserting <quote>means a
metropolitan statistical area as established by the Office of Management and
Budget;</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD8ED76BAAAE44D68BD7D6DBB60BE47FC"><enum>(c)</enum><header display-inline="yes-display-inline">Definition of State</header><text display-inline="yes-display-inline">Section 201(d) of the National Housing Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707(d)</external-xref>) is amended by striking <quote>the Trust Territory of the
Pacific Islands</quote> and inserting <quote>the Commonwealth of the Northern
Mariana Islands</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idB125873B0A7C44538E12F4FF1C1E382D" section-type="subsequent-section"><enum>2121.</enum><header display-inline="yes-display-inline">Insurance of mortgages</header><text display-inline="no-display-inline">Subsection (n)(2) of section 203 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(n)(2)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDddef9ddf41d54b88a9ef92336f4365b5"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or
subordinate mortgage or</quote> before <quote>lien given</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6B553233A9AD4521923B8202DF6FFA88"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C), by inserting <quote>or
subordinate mortgage or</quote> before <quote>lien</quote>.</text>
</paragraph></section><section id="idA160D5E2746C426C96FE9D86BEE4AB0A"><enum>2122.</enum><header>Home equity
conversion mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H7E5DBF1FB2294F26A90648F8BA5C7CA8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 255 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1715z–20) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFF466F944C2F4A869C97E3033418951D"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(2), insert
<quote><quote>real estate,</quote></quote> after
<quote><quote>mortgagor</quote>,</quote>;</text>
</paragraph><paragraph id="id4B13B9E22C094B7DBB74EAF605AFA872"><enum>(2)</enum><text>by amending subsection
(d)(1) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB8975B9A9BD74BE9A516E94BAE4C84ED" reported-display-style="italic" style="OLC">
<paragraph id="idB95AD69016454D1AA5C22ECAE55FF9F1"><enum>(1)</enum><text>have been originated by a
mortgagee approved by the
Secretary;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idAD56856D0BC04FDC8AD123E89EE4BB1F"><enum>(3)</enum><text>by amending subsection
(d)(2)(B) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD30B55931C1C47CDA38A73A07B396778" reported-display-style="italic" style="OLC">
<subparagraph id="id4657DBA2FBDD47E09CDD2ECF4339D0B0"><enum>(B)</enum><text>has received adequate
counseling, as provided in subsection (f), by an independent third party that
is not, either directly or indirectly, associated with or compensated by a
party involved in—</text>
<clause id="idDDE30EF97B1C4E2097A0CACF5A6A45AC"><enum>(i)</enum><text>originating or servicing
the mortgage;</text>
</clause><clause id="idF80413B4D5EC48E38C507A375CB59799"><enum>(ii)</enum><text>funding the loan
underlying the mortgage; or</text>
</clause><clause id="idEA1DD0C2CB274930AD617B0BA9655E8B"><enum>(iii)</enum><text>the sale of annuities,
investments, long-term care insurance, or any other type of financial or
insurance
product;</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idEDE08615533B44F9A1A39688DE7964BE"><enum>(4)</enum><text>in subsection (f)—</text>
<subparagraph id="idD4B3111B41C343D0A7AF5BD744EC50BC"><enum>(A)</enum><text>by striking <quote>(f)
<header-in-text level="subsection" style="OLC">Information services for
mortgagors</header-in-text>.—</quote> and inserting <quote>(f)
<header-in-text level="subsection" style="OLC">Counseling services and
information for mortgagors</header-in-text>.—</quote>; and</text>
</subparagraph><subparagraph id="idEE23B728410D4EB79B645656CA259FD8"><enum>(B)</enum><text>by amending the matter
preceding paragraph (1) to read as follows: <quote>The Secretary shall provide
or cause to be provided adequate counseling for the mortgagor, as described in
subsection (d)(2)(B). Such counseling shall be provided by counselors that meet
qualification standards and follow uniform counseling protocols. The
qualification standards and counseling protocols shall be established by the
Secretary within 12 months of the date of enactment of the Building American
Homeownership Act of 2008. The protocols shall require a qualified counselor to
discuss with each mortgagor information which shall include—</quote></text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6A3591BB22904827846C00AB6DFDD19F"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (g), by striking
<quote>established under section 203(b)(2)</quote> and all that follows through
<quote>located</quote> and inserting <quote>limitation established under
section 305(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name> for a 1-family residence</quote>;</text>
</paragraph><paragraph id="id417F29F5F7D045E6A800302BABCC4702"><enum>(6)</enum><text>by striking subsection
(l);</text>
</paragraph><paragraph id="id4F99339A89984EA5B4360DBCE11E1A4F"><enum>(7)</enum><text>by redesignating
subsection (m) as subsection (l);</text>
</paragraph><paragraph id="idFC8E67768397451EA71181A0C79B9ED9"><enum>(8)</enum><text>by amending subsection
(l), as so redesignated, to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB023853C972249B187F3805984C98EA1" reported-display-style="italic" style="OLC">
<subsection id="id1B0005C34577447AB494DA93EA8C0403"><enum>(l)</enum><header>Funding for
counseling</header><text>The Secretary may use a portion of the mortgage
insurance premiums collected under the program under this section to adequately
fund the counseling and disclosure activities required under subsection (f),
including counseling for those homeowners who elect not to take out a home
equity conversion mortgage, provided that the use of such funds is based upon
accepted actuarial principles.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB0399C151AF44AB8A48F578900D8CBB2"><enum>(9)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id71B8F25A9E59402FBB9F1D572C370804" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HF59798CA590845B3B1EC922B786E5F46"><enum>(m)</enum><header display-inline="yes-display-inline">Authority To Insure Home Purchase
Mortgage</header>
<paragraph commented="no" display-inline="no-display-inline" id="H30699D06E4C44EEF86F272C7E6F8A855"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
section, the Secretary may insure, upon application by a mortgagee, a home
equity conversion mortgage upon such terms and conditions as the Secretary may
prescribe, when the home equity conversion mortgage will be used to purchase a
1- to 4-family dwelling unit, one unit of which the mortgagor will occupy as a
primary residence, and to provide for any future payments to the mortgagor,
based on available equity, as authorized under subsection (d)(9).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EB8F93D955A4499966B89B30B576237"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation on principal
obligation</header><text display-inline="yes-display-inline">A home equity
conversion mortgage insured pursuant to paragraph (1) shall involve a principal
obligation that does not exceed the dollar amount limitation determined under
section 305(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name> for a 1-family residence.</text>
</paragraph></subsection><subsection id="id6B1850E8AD9B448C93C00108786A5745"><enum>(n)</enum><header>Requirements on
mortgage originators</header>
<paragraph id="id3CA77548F2A3488B92DAE3687E0D03C1"><enum>(1)</enum><header>In
general</header><text>The mortgagee and any other party that participates in
the origination of a mortgage to be insured under this section shall—</text>
<subparagraph id="IDb935d0ac15074703b1268878d0616b70"><enum>(A)</enum><text>not participate in, be
associated with, or employ any party that participates in or is associated with
any other financial or insurance activity; or</text>
</subparagraph><subparagraph id="ID822b0afca4974f63a72a613981113d15"><enum>(B)</enum><text>demonstrate to the
Secretary that the mortgagee or other party maintains, or will maintain,
firewalls and other safeguards designed to ensure that—</text>
<clause id="ID6e71c5396c404f7cbf8e00f32f14518b"><enum>(i)</enum><text>individuals participating
in the origination of the mortgage shall have no involvement with, or incentive
to provide the mortgagor with, any other financial or insurance product;
and</text>
</clause><clause id="ID9ab7009f13e7493dbac4344d00a98592"><enum>(ii)</enum><text>the mortgagor shall not
be required, directly or indirectly, as a condition of obtaining a mortgage
under this section, to purchase any other financial or insurance
product.</text>
</clause></subparagraph></paragraph><paragraph id="id7E0EA0E80A684866A18C6E5D2B3F67DB"><enum>(2)</enum><header>Approval of other
parties</header><text>All parties that participate in the origination of a
mortgage to be insured under this section shall be approved by the
Secretary.</text>
</paragraph></subsection><subsection id="ID70f4234e3fab47138753dba16e5e7210"><enum>(o)</enum><header>Prohibition against
requirements To purchase additional products</header><text>The mortgagee or any
other party shall not be required by the mortgagor or any other party to
purchase an insurance, annuity, or other additional product as a requirement or
condition of eligibility for insurance under subsection (c).</text>
</subsection><subsection id="ID6bb30a8d37ef4fb48c955f4bfdaf081a"><enum>(p)</enum><header>Study To determine
consumer protections and underwriting standards</header><text>The Secretary
shall conduct a study to examine and determine appropriate consumer protections
and underwriting standards to ensure that the purchase of products referred to
in subsection (o) is appropriate for the consumer. In conducting such study,
the Secretary shall consult with consumer advocates (including recognized
experts in consumer protection), industry representatives, representatives of
counseling organizations, and other interested
parties.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H807E8D50A67D4DE3AE8C372B7B3F7630"><enum>(b)</enum><header display-inline="yes-display-inline">Mortgages for Cooperatives</header><text display-inline="yes-display-inline">Subsection (b) of section 255 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1715z–20(b)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6DD469FBA14742C5BC518F19D3B4B711"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7EA8E1EC7C71472587CAE0F9A4601333"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>a first or subordinate
mortgage or lien</quote> before <quote>on all stock</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EB49BE095474EC29B1700263F781959"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>unit</quote> after
<quote>dwelling</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA7F317086BB4B6BB1DBADE9A6472BF"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>a first mortgage or
first lien</quote> before <quote>on a leasehold</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC1245008064F4E3BA6EBE3BFA8856B00"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), by inserting <quote>a
first or subordinate lien on</quote> before <quote>all stock</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE190CA3D783F4F7F99297EA71E724B3C"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation on origination
fees</header><text display-inline="yes-display-inline">Section 255 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>), as amended by the preceding
provisions of this section, is further amended by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H34979EFD7C4941B6BB93247ECE332564" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H561223F74F714AD99492E18536FA15F3"><enum>(r)</enum><header display-inline="yes-display-inline">Limitation on origination
fees</header><text display-inline="yes-display-inline">The Secretary shall
establish limits on the origination fee that may be charged to a mortgagor
under a mortgage insured under this section, which limitations shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H578E01F11C764D178E16D120094F69D7"><enum>(1)</enum><text display-inline="yes-display-inline">equal 1.5 percent of the maximum claim
amount of the mortgage unless adjusted thereafter on the basis of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFA04F50D3584496F851C30F1083219D2"><enum>(A)</enum><text display-inline="yes-display-inline">the costs to the mortgagor; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3EA192C9894249A1A4E48A33DA382A72"><enum>(B)</enum><text display-inline="yes-display-inline">the impact of such fees on the reverse
mortgage market;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE204BEE665614F41BDC04EE48900EFFA"><enum>(2)</enum><text display-inline="yes-display-inline">be subject to a minimum allowable
amount;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5F01A217F0704CAE8EF4C77DC5325B59"><enum>(3)</enum><text display-inline="yes-display-inline">provide that the origination fee may be
fully financed with the mortgage;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F9C1B5376AC4D22B8675D34CB417EC5"><enum>(4)</enum><text display-inline="yes-display-inline">include any fees paid to correspondent
mortgagees approved by the Secretary; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id308844CBB2AF4B94BE2854364878C313"><enum>(5)</enum><text display-inline="yes-display-inline">have the same effective date as subsection
(m)(2) regarding the limitation on principal
obligation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDcbfaf859d0a941cab67231d72211afe4"><enum>(d)</enum><header display-inline="yes-display-inline">Study regarding program costs and credit
availability</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA17A2BA6F2784ECAA47C8E40071D1492"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study regarding the costs and availability of credit
under the home equity conversion mortgages for elderly homeowners program under
section 255 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>) (in this
subsection referred to as the <quote>program</quote>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE03BF6CD4F9D41E4B8B67A3F03866046"><enum>(2)</enum><header display-inline="yes-display-inline">Purpose</header><text display-inline="yes-display-inline">The purpose of the study required under
paragraph (1) is to help Congress analyze and determine the effects of limiting
the amounts of the costs or fees under the program from the amounts charged
under the program as of the date of the enactment of this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE7474EDEC6264C0491E19D4C3E773046"><enum>(3)</enum><header display-inline="yes-display-inline">Content of report</header><text display-inline="yes-display-inline">The study required under paragraph (1)
should focus on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE8EB169DB5FE4197A96FA8291155DA6A"><enum>(A)</enum><text display-inline="yes-display-inline">the cost to mortgagors of participating in
the program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6E4C2EA340754CE9A64B4CC20EC5F3A5"><enum>(B)</enum><text display-inline="yes-display-inline">the financial soundness of the
program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id444A1BAA5C544EEC9324760AE848C40C"><enum>(C)</enum><text display-inline="yes-display-inline">the availability of credit under the
program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6361D5A4F48B4DEB93F002822EDC8FD2"><enum>(D)</enum><text display-inline="yes-display-inline">the costs to elderly homeowners
participating in the program, including—</text>
<clause commented="no" display-inline="no-display-inline" id="idD97257AC824F4F9FA63E7E6880B129F5"><enum>(i)</enum><text display-inline="yes-display-inline">mortgage insurance premiums charged under
the program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id05978426AA09468AA53C8006600A61D4"><enum>(ii)</enum><text display-inline="yes-display-inline">up-front fees charged under the program;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD42A8D2B8ADA4123B0F4E454053FFB5C"><enum>(iii)</enum><text display-inline="yes-display-inline">margin rates charged under the
program.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id60D279F47AEB40BB8094B5F45F1A89F9"><enum>(4)</enum><header display-inline="yes-display-inline">Timing of report</header><text display-inline="yes-display-inline">Not later than 12 months after the date of
the enactment of this title, the Comptroller General 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 setting forth
the results and conclusions of the study required under paragraph (1).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idF0A4DB35D6F04D6BAD33EC1F97E0DCC8" section-type="subsequent-section"><enum>2123.</enum><header display-inline="yes-display-inline">Energy efficient mortgages
program</header><text display-inline="no-display-inline">Section 106(a)(2) of
the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/12712">42 U.S.C. 12712</external-xref> note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id68BC7E29FEED4DD9AD147F63798D8B1A"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subparagraph (C) to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id801772EA029B4A359C1509144D9E7EBA" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDbcd5ba65168240b9835bf1a9467874be"><enum>(C)</enum><header display-inline="yes-display-inline">Costs of improvements</header><text display-inline="yes-display-inline">The cost of cost-effective energy
efficiency improvements shall not exceed the greater of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID78671701a0ff4f29b9315df3bbb86ac6"><enum>(i)</enum><text display-inline="yes-display-inline">5 percent of the property value (not to
exceed 5 percent of the limit established under section 203(b)(2)(A)) of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(2)(A)</external-xref>; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDeaa72e83718743109e8c2a126942d5fc"><enum>(ii)</enum><text display-inline="yes-display-inline">2 percent of the limit established under
section 203(b)(2)(B) of such Act.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id250543E2FD604BB98929D603D9CE185C"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDF7023F7F1904776A62BE4C8912E55C4" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id1CFCD4B31A134CE4A1CB97051D1DC83C"><enum>(D)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">In any fiscal year, the aggregate number of
mortgages insured pursuant to this section may not exceed 5 percent of the
aggregate number of mortgages for 1- to 4-family residences insured by the
Secretary of Housing and Urban Development under title II of the National
Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>) during the preceding fiscal
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HA5CA043CB86B4B1CAF6F31AD6B18B9AD" section-type="subsequent-section"><enum>2124.</enum><header display-inline="yes-display-inline">Pilot program for automated process for
borrowers without sufficient credit history</header>
<subsection commented="no" display-inline="no-display-inline" id="H942CE104BA4A46AD9C5EC75D123FEA3F"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Title II of the National Housing Act (12
U.S.C. 1707 et seq.) is amended by adding at the end the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H407DB48CB2C74F75BFCC6FAB4FCA21CE" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HDD9A561C643E481991563889A52712D3" section-type="subsequent-section"><enum>257.</enum><header display-inline="yes-display-inline">Pilot program for automated process for
borrowers without sufficient credit history</header>
<subsection commented="no" display-inline="no-display-inline" id="H545EFEB2DFD14890A920D894BDD25C25"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">The Secretary shall carry out a pilot
program to establish, and make available to mortgagees, an automated process
for providing alternative credit rating information for mortgagors and
prospective mortgagors under mortgages on 1- to 4-family residences to be
insured under this title who have insufficient credit histories for determining
their creditworthiness. Such alternative credit rating information may include
rent, utilities, and insurance payment histories, and such other information as
the Secretary considers appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2B60EA5248CE4A9B00245BBF33EC76E"><enum>(b)</enum><header display-inline="yes-display-inline">Scope</header><text display-inline="yes-display-inline">The Secretary may carry out the pilot
program under this section on a limited basis or scope, and may consider
limiting the program to first-time homebuyers.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H73B6EDCD71D64E4691B4408C64BEA809"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">In any fiscal year, the aggregate number of
mortgages insured pursuant to the automated process established under this
section may not exceed 5 percent of the aggregate number of mortgages for 1- to
4-family residences insured by the Secretary under this title during the
preceding fiscal year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5A77FBB7E73F402DA69DBB0000E682D0"><enum>(d)</enum><header display-inline="yes-display-inline">Sunset</header><text display-inline="yes-display-inline">After the expiration of the 5-year period
beginning on the date of the enactment of the Building American Homeownership
Act of 2008, the Secretary may not enter into any new commitment to insure any
mortgage, or newly insure any mortgage, pursuant to the automated process
established under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4A8248E396CB4E619C7B31DB00907D69"><enum>(b)</enum><header display-inline="yes-display-inline">GAO report</header><text display-inline="yes-display-inline">Not later than the expiration of the
two-year period beginning on the date of the enactment of this subtitle, the
Comptroller General of the United States shall submit to the Congress a report
identifying the number of additional mortgagors served using the automated
process established pursuant to section 257 of the National Housing Act (as
added by the amendment made by subsection (a) of this section) and the impact
of such process and the insurance of mortgages pursuant to such process on the
safety and soundness of the insurance funds under the National Housing Act of
which such mortgages are obligations.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id045EF686324C495C91E8AD594AA75A05" section-type="subsequent-section"><enum>2125.</enum><header display-inline="yes-display-inline">Homeownership preservation</header><text display-inline="no-display-inline">The Secretary of Housing and Urban
Development and the Commissioner of the Federal Housing Administration, in
consultation with industry, the Neighborhood Reinvestment Corporation, and
other entities involved in foreclosure prevention activities, shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA5B782A426134679A5240F546A16A3BB"><enum>(1)</enum><text display-inline="yes-display-inline">develop and implement a plan to improve the
Federal Housing Administration's loss mitigation process; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id73B80DEFF5664252A5E640EB76043D10"><enum>(2)</enum><text display-inline="yes-display-inline">report such 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>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id90A90C1CDBB8496ABAF2FE45CC98C975" section-type="subsequent-section"><enum>2126.</enum><header display-inline="yes-display-inline">Use of FHA savings for improvements in FHA
technologies, procedures, processes, program performance, staffing, and
salaries</header>
<subsection commented="no" display-inline="no-display-inline" id="id66B0C6DE2D74478F868AB8A5F39BBFA3"><enum>(a)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated for each of fiscal years 2009 through 2013,
$25,000,000, from negative credit subsidy for the mortgage insurance programs
under title II of the National Housing Act, to the Secretary of Housing and
Urban Development for increasing funding for the purpose of improving
technology, processes, program performance, eliminating fraud, and for
providing appropriate staffing in connection with the mortgage insurance
programs under title II of the National Housing Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5C1C4F1F39374D08AE0248EC014232F5"><enum>(b)</enum><header display-inline="yes-display-inline">Certification</header><text display-inline="yes-display-inline">The authorization under subsection (a)
shall not be effective for a fiscal year unless the Secretary of Housing and
Urban Development has, by rulemaking in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5,
United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of
such section), made a determination that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE7F056536C894A3DBF1443FD8E8ED860"><enum>(1)</enum><text display-inline="yes-display-inline">premiums being, or to be, charged during
such fiscal year for mortgage insurance under title II of the National Housing
Act are established at the minimum amount sufficient to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD86F6E5C7CB747FD815F700BB7A85184"><enum>(A)</enum><text display-inline="yes-display-inline">comply with the requirements of section
205(f) of such Act (relating to required capital ratio for the Mutual Mortgage
Insurance Fund); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA9E566E1B164C9A98E22834F1D70355"><enum>(B)</enum><text display-inline="yes-display-inline">ensure the safety and soundness of the
other mortgage insurance funds under such Act; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id15BB3DAC09964FACA037161C19DEA998"><enum>(2)</enum><text display-inline="yes-display-inline">any negative credit subsidy for such fiscal
year resulting from such mortgage insurance programs adequately ensures the
efficient delivery and availability of such programs.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4559367C900946FABE89F3A814A4156A"><enum>(c)</enum><header display-inline="yes-display-inline">Study and report</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall conduct a study to obtain recommendations from participants
in the private residential (both single family and multifamily) mortgage
lending business and the secondary market for such mortgages on how best to
update and upgrade processes and technologies for the mortgage insurance
programs under title II of the National Housing Act so that the procedures for
originating, insuring, and servicing of such mortgages conform with those
customarily used by secondary market purchasers of residential mortgage loans.
Not later than the expiration of the 12-month period beginning on the date of
the enactment of this title, the Secretary shall submit a report to the
Congress describing the progress made and to be made toward updating and
upgrading such processes and technology, and providing appropriate staffing for
such mortgage insurance programs.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF4E8CDEA493C4616A286749C1CF4A683" section-type="subsequent-section"><enum>2127.</enum><header display-inline="yes-display-inline">Post-purchase housing counseling
eligibility improvements</header><text display-inline="no-display-inline">Section 106(c)(4) of the Housing and Urban
Development Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(c)(4)</external-xref>) is amended:</text>
<paragraph commented="no" display-inline="no-display-inline" id="idEDC98EE8BE1D4246877243F565D54890"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id9D040020D0A5454C81B1D6719B7AC4A9"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>;
or</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF910678CE9E044768A208B35D1E13CA7"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (ii), by striking the period at
the end and inserting a semicolon; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB1BD2CE4CB374C3DAF16B9B9D27F1860"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE3E4C5885A004B71B6D899CB315666E6" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="ID2e5ed2fe14cc44b09ea76f840aab53c0"><enum>(iii)</enum><text display-inline="yes-display-inline">a significant reduction in the income of
the household due to divorce or death; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5A521E0C5820474FA4939B0B1E7C3049"><enum>(iv)</enum><text display-inline="yes-display-inline">a significant increase in basic expenses of
the homeowner or an immediate family member of the homeowner (including the
spouse, child, or parent for whom the homeowner provides substantial care or
financial assistance) due to—</text>
<subclause commented="no" display-inline="no-display-inline" id="idA117DDCDD1674856BACD8DEF3AC8D674"><enum>(I)</enum><text display-inline="yes-display-inline">an unexpected or significant increase in
medical expenses;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id0E3A8A6651144024991E8D8DE928D8CC"><enum>(II)</enum><text display-inline="yes-display-inline">a divorce;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idE0AC431838424EFC8C43D28BBDEED0AD"><enum>(III)</enum><text display-inline="yes-display-inline">unexpected and significant damage to the
property, the repair of which will not be covered by private or public
insurance; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idFD6AB957034B493EB24E6EBBA108966B"><enum>(IV)</enum><text display-inline="yes-display-inline">a large property-tax increase;
or</text>
</subclause></clause><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id135E0A3762F74B27BE06EDF1DE1DAF6D"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the matter that follows
subparagraph (C); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id672BCE4D990B4C9A81588BECC54C2EFA"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id25DC734DC74241ACAC1D5B98D9E3ACD3" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idC4D727B68EC5493BAFCAD467B401FB66"><enum>(D)</enum><text display-inline="yes-display-inline">the Secretary of Housing and Urban
Development determines that the annual income of the homeowner is no greater
than the annual income established by the Secretary as being of low- or
moderate-income.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idC1E74EC3BBE7469AB2018303BDAC4147" section-type="subsequent-section"><enum>2128.</enum><header display-inline="yes-display-inline">Pre-purchase homeownership counseling
demonstration</header>
<subsection commented="no" display-inline="no-display-inline" id="idB153E2B3A55D44D698EA27DD096B4328"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of program</header><text display-inline="yes-display-inline">For the period beginning on the date of
enactment of this title and ending on the date that is 3 years after such date
of enactment, the Secretary of Housing and Urban Development shall establish
and conduct a demonstration program to test the effectiveness of alternative
forms of pre-purchase homeownership counseling for eligible homebuyers.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id36274824B18148729CFF3637E093DA5F"><enum>(b)</enum><header display-inline="yes-display-inline">Forms of counseling</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall provide to eligible homebuyers pre-purchase homeownership
counseling under this section in the form of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id479DD10795C2447880B54F37833FD612"><enum>(1)</enum><text display-inline="yes-display-inline">telephone counseling;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCD26994175004E01B0A72A2D2A3CC9BD"><enum>(2)</enum><text display-inline="yes-display-inline">individualized in-person counseling;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF18E46C8C4CF41ADB94A4EB43E5F24B2"><enum>(3)</enum><text display-inline="yes-display-inline">web-based counseling;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idED33E9F41E76485D87CF189A176AECEB"><enum>(4)</enum><text display-inline="yes-display-inline">counseling classes; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA2AF67D3C8274BCDADF9BEFADEF91F40"><enum>(5)</enum><text display-inline="yes-display-inline">any other form or type of counseling that
the Secretary may, in his discretion, determine appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id02632B808FDB4A8081285548E4257823"><enum>(c)</enum><header display-inline="yes-display-inline">Size of program</header><text display-inline="yes-display-inline">The Secretary shall make available the
pre-purchase homeownership counseling described in subsection (b) to not more
than 3,000 eligible homebuyers in any given year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id89F45ED5EA22477BA58606BC25FCEAE4"><enum>(d)</enum><header display-inline="yes-display-inline">Incentive To participate</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may provide incentives to eligible homebuyers to participate in the
demonstration program established under subsection (a). Such incentives may
include the reduction of any insurance premium charges owed by the eligible
homebuyer to the Secretary.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7A8B45033755447983840D054F39C8F5"><enum>(e)</enum><header display-inline="yes-display-inline">Eligible homebuyer defined</header><text display-inline="yes-display-inline">For purposes of this section an
<term>eligible homebuyer</term> means a first-time homebuyer who has been
approved for a home loan with a loan-to-value ratio between 97 percent and 98.5
percent.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8338E178AD6D4152B436735AB0460848"><enum>(f)</enum><header display-inline="yes-display-inline">Report to Congress</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representative—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8DC1D4A74AEC4176A332702DEC54B2BC"><enum>(1)</enum><text display-inline="yes-display-inline">on an annual basis, on the progress and
results of the demonstration program established under subsection (a);
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFC2DF268D29A454E9F3064CD19C41D3A"><enum>(2)</enum><text display-inline="yes-display-inline">for the period beginning on the date of
enactment of this title and ending on the date that is 5 years after such date
of enactment, on the payment history and delinquency rates of eligible
homebuyers who participated in the demonstration program.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id138741B6E1B248929186A4E213699621" section-type="subsequent-section"><enum>2129.</enum><header display-inline="yes-display-inline">Fraud prevention</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/18/1014">Section 1014</external-xref> of title 18, United States
Code, is amended in the first sentence—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id059F78951B0A4D6A8F043FAB64203DCA"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>the Federal Housing
Administration,</quote> before <quote>the Farm Credit Administration</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7C4DA36B1CB247CAB8A8C7EF6B9F5993"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>commitment, or
loan</quote> and inserting <quote>commitment, loan, or insurance agreement or
application for insurance or a guarantee</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HBD60339D0A0240D38300B3122F42B213" section-type="subsequent-section"><enum>2130.</enum><header display-inline="yes-display-inline">Limitation on mortgage insurance premium
increases</header>
<subsection commented="no" display-inline="no-display-inline" id="id104DE5532A584E5DA6EDD29DAF3FE6A5"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
including any provision of this title and any amendment made by this
title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idC4CE7BB28A1D4E418F673C9C40D97081"><enum>(1)</enum><text display-inline="yes-display-inline">for the period beginning on the date of the
enactment of this title and ending on October 1, 2009, the premiums charged for
mortgage insurance under multifamily housing programs under the National
Housing Act may not be increased above the premium amounts in effect under such
program on October 1, 2006, unless the Secretary of Housing and Urban
Development determines that, absent such increase, insurance of additional
mortgages under such program would, under the Federal Credit Reform Act of
1990, require the appropriation of new budget authority to cover the costs (as
such term is defined in section 502 of the Federal Credit Reform Act of 1990
(2 U.S.C.
661a) of such insurance; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAB605C019202426B8B76AA00D6BB94DD"><enum>(2)</enum><text display-inline="yes-display-inline">a premium increase pursuant to paragraph
(1) may be made only if not less than 30 days prior to such increase taking
effect, the Secretary of Housing and Urban Development—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id145417FA707C4137B44C1EFF634C54B1"><enum>(A)</enum><text display-inline="yes-display-inline">notifies the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives of such increase; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEF9AFD6AFB104BFF9BA45EAEF405667B"><enum>(B)</enum><text display-inline="yes-display-inline">publishes notice of such increase in the
Federal Register.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3FAE0EDF136E462DB74EC78FF0C32E47"><enum>(b)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may waive the 30-day notice requirement under subsection (a)(2), if
the Secretary determines that waiting 30-days before increasing premiums would
cause substantial damage to the solvency of multifamily housing programs under
the National Housing Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF6C14D7C928A44D193E5D5CEED39EB7" section-type="subsequent-section"><enum>2131.</enum><header display-inline="yes-display-inline">Savings provision</header><text display-inline="no-display-inline">Any mortgage insured under title II of the
National Housing Act before the date of enactment of this subtitle shall
continue to be governed by the laws, regulations, orders, and terms and
conditions to which it was subject on the day before the date of the enactment
of this subtitle.</text>
</section><section commented="no" display-inline="no-display-inline" id="H1EB203B5CDF54E26AD1B25F463E90237" section-type="subsequent-section"><enum>2132.</enum><header display-inline="yes-display-inline">Implementation</header><text display-inline="no-display-inline">The Secretary of Housing and Urban
Development shall by notice establish any additional requirements that may be
necessary to immediately carry out the provisions of this subtitle. The notice
shall take effect upon issuance.</text>
</section><section id="idB281CB5CAC09455C9C2E26C0D1502969"><enum>2133.</enum><header>Moratorium on
implementation of risk-based premiums</header>
<subsection id="id9F08299F08424F16ADDFBCEBB4D90F22"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">During the 12-month
period beginning on the date of enactment of this Act, the Secretary of Housing
and Urban Development shall not enact, execute, or take any action to make
effective the planned implementation of risk-based premiums, which are designed
for mortgage lenders to offer borrowers an FHA-insured product that provides a
range of mortgage insurance premium pricing, based on the risk that the
insurance contract represents, as such planned implementation was set forth in
the Notice published in the Federal Register on May 13, 2008 (Vol. 73, No. 93,
Pages 27703 through 27711)(effective July 14, 2008).</text>
</subsection><subsection id="id89423B33854B451C9E8936973CD9D97A"><enum>(b)</enum><header>Insurance of mortgages
under the National Housing Act</header><text>During the 12-month period
beginning on the date of enactment of this Act, the Secretary of Housing and
Urban Development shall not enact, execute, or take any action to make
effective the implementation of any other new risk-based premium product
related to the insurance of any mortgage on a single family residence under
title II of the National Housing Act, where the premium price for such new
product is based in whole or in part on a borrower's Decision Credit Score, as
that term is defined in the Notice described under subsection (a), or any
successor thereto.</text>
</subsection></section></subtitle><subtitle commented="no" id="id2D0AFDA7D3BA4F148CF25235E857BFC4" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Manufactured Housing Loan
Modernization</header>
<section commented="no" display-inline="no-display-inline" id="idEB11C33638A147DCA410D07D2F712D94" section-type="subsequent-section"><enum>2141.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote><short-title>FHA Manufactured Housing Loan
Modernization Act of 2008</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H2E9BA3AF138040B58CF20749B842131E" section-type="subsequent-section"><enum>2142.</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="no-display-inline">The purposes of this subtitle are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA0E867A939514CBC89E9F5FB99BAA457"><enum>(1)</enum><text display-inline="yes-display-inline">to provide adequate funding for FHA-insured
manufactured housing loans for low- and moderate-income homebuyers during all
economic cycles in the manufactured housing industry;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0F7ED3CB00484C02B597CA70258E2D3D"><enum>(2)</enum><text display-inline="yes-display-inline">to modernize the FHA title I insurance
program for manufactured housing loans to enhance participation by Ginnie Mae
and the private lending markets; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23BC04C7421A477AA3A82C61227F2694"><enum>(3)</enum><text display-inline="yes-display-inline">to adjust the low loan limits for title I
manufactured home loan insurance to reflect the increase in costs since such
limits were last increased in 1992 and to index the limits to inflation.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H620282B4E4A04B2A9CDA415095AEC2EB" section-type="subsequent-section"><enum>2143.</enum><header display-inline="yes-display-inline">Exception to limitation on financial
institution portfolio</header><text display-inline="no-display-inline">The
second sentence of section 2(a) of the <act-name parsable-cite="NHA">National
Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(a)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3036811AF97C4963A2A0D19BCFC2F959"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>In no case</quote> and
inserting <quote>Other than in connection with a manufactured home or a lot on
which to place such a home (or both), in no case</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCA14D97FC7B24B0BBCAC5722852E4657"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>:
<italic>Provided</italic>, That with</quote> and inserting <quote>.
With</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H6ECC571793F34B4EA014BA3D00990057" section-type="subsequent-section"><enum>2144.</enum><header display-inline="yes-display-inline">Insurance benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="H98D6B735E01644E8B17EDA6DA442E336"><enum>(a)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), is amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="H58C079D5725949C9B03E2206D38D0067" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4516533010F94499947E44007E98C06D"><enum>(8)</enum><header display-inline="yes-display-inline">Insurance benefits for manufactured housing
loans</header><text display-inline="yes-display-inline">Any contract of
insurance with respect to loans, advances of credit, or purchases in connection
with a manufactured home or a lot on which to place a manufactured home (or
both) for a financial institution that is executed under this title after the
date of the enactment of the <short-title>FHA Manufactured
Housing Loan Modernization Act of 2008</short-title> by the Secretary shall be
conclusive evidence of the eligibility of such financial institution for
insurance, and the validity of any contract of insurance so executed shall be
incontestable in the hands of the bearer from the date of the execution of such
contract, except for fraud or misrepresentation on the part of such
institution.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H23A241D5A6C748D181429E4491407C3F"><enum>(b)</enum><header display-inline="yes-display-inline">Applicability</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall
only apply to loans that are registered or endorsed for insurance after the
date of the enactment of this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H1E2A97751EB644B9AA25EB9B80D8C194" section-type="subsequent-section"><enum>2145.</enum><header display-inline="yes-display-inline">Maximum loan limits</header>
<subsection commented="no" display-inline="no-display-inline" id="H591C4AA2105E40F8ACAC3A56DDE86FA"><enum>(a)</enum><header display-inline="yes-display-inline">Dollar
Amounts</header><text display-inline="yes-display-inline">Paragraph (1) of
section 2(b) of the <act-name parsable-cite="NHA">National Housing
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(b)(1)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF8F1B0D909EE42319255957BD615176E"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii) of subparagraph (A), by
striking <quote>$17,500</quote> and inserting <quote>$25,090</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1B8C05DF0BAA4F3E8E96001E7492ED8"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C) by striking
<quote>$48,600</quote> and inserting <quote>$69,678</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8F41805B89CB4C59B416126E084EC4C4"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (D) by striking
<quote>$64,800</quote> and inserting <quote>$92,904</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE68A196C90CB44329C3BA2F76DBB7900"><enum>(4)</enum><text display-inline="yes-display-inline">in subparagraph (E) by striking
<quote>$16,200</quote> and inserting <quote>$23,226</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5C96E6614754D41814F2D568CD98C78"><enum>(5)</enum><text display-inline="yes-display-inline">by realigning subparagraphs (C), (D), and
(E) 2 ems to the left so that the left margins of such subparagraphs are
aligned with the margins of subparagraphs (A) and (B).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H87373C87695145F99873683807BFC831"><enum>(b)</enum><header display-inline="yes-display-inline">Annual Indexing</header><text display-inline="yes-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), as amended by the preceding provisions of this title, is further
amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="HF9E3DA394D174EDB904D1032F9F01F76" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5B2E4682441B462288BCB006B679D1E8"><enum>(9)</enum><header display-inline="yes-display-inline">Annual indexing of manufactured housing
loans</header><text display-inline="yes-display-inline">The Secretary shall
develop a method of indexing in order to annually adjust the loan limits
established in subparagraphs (A)(ii), (C), (D), and (E) of this subsection.
Such index shall be based on the manufactured housing price data collected by
the United States Census Bureau. The Secretary shall establish such index no
later than 1 year after the date of the enactment of the
<short-title>FHA Manufactured Housing Loan Modernization
Act of 2008</short-title>.</text>
</paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H206A1390F1224D70848CF3A1168B75E0"><enum>(c)</enum><header display-inline="yes-display-inline">Technical and Conforming
Changes</header><text display-inline="yes-display-inline">Paragraph (1) of
section 2(b) of the <act-name parsable-cite="NHA">National Housing
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(b)(1)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF0728BFB08A74152A5A3F5E2F573CB2"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>No</quote> and inserting
<quote>Except as provided in the last sentence of this paragraph, no</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EDB681AE891462A91F2BA57F42B509B"><enum>(2)</enum><text display-inline="yes-display-inline">by adding after and below subparagraph (G)
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA8DC550670A84C9A8785FFAA3CCEB8AF" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H935B5893A8204D6BBAB7C44F08D1639F"><enum></enum><text display-inline="yes-display-inline">The
Secretary shall, by regulation, annually increase the dollar amount limitations
in subparagraphs (A)(ii), (C), (D), and (E) (as such limitations may have been
previously adjusted under this sentence) in accordance with the index
established pursuant to paragraph
(9).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HE7081DB81E62448589E1B605F1AAFEDE" section-type="subsequent-section"><enum>2146.</enum><header display-inline="yes-display-inline">Insurance premiums</header><text display-inline="no-display-inline">Subsection (f) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(f)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H52DC4EA0D0F443FD8476820063B8661F"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)
<header-in-text level="paragraph" style="OLC">Premium
Charges</header-in-text>.—</quote> after <quote>(f)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB788FB0CE2344E5BBD865D7DAA8475A"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H454CFD08AB464BC1B08B939208B6C46" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H25A530F841F6417F96CECBDA3715C669" indent="up1"><enum>(2)</enum><header display-inline="yes-display-inline">Manufactured Home Loans</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), in the case
of a loan, advance of credit, or purchase in connection with a manufactured
home or a lot on which to place such a home (or both), the premium charge for
the insurance granted under this section shall be paid by the borrower under
the loan or advance of credit, as follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H70124C851C234DED8D7CCE468C86F262"><enum>(A)</enum><text display-inline="yes-display-inline">At the time of the making of the loan,
advance of credit, or purchase, a single premium payment in an amount not to
exceed 2.25 percent of the amount of the original insured principal
obligation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1D1FBE8E9B37495FACC52789DEB35269"><enum>(B)</enum><text display-inline="yes-display-inline">In addition to the premium under
subparagraph (A), annual premium payments during the term of the loan, advance,
or obligation purchased in an amount not exceeding 1.0 percent of the remaining
insured principal balance (excluding the portion of the remaining balance
attributable to the premium collected under subparagraph (A) and without taking
into account delinquent payments or prepayments).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E5F50D8F50E4F18BB10386938C9BCB0"><enum>(C)</enum><text display-inline="yes-display-inline">Premium charges under this paragraph shall
be established in amounts that are sufficient, but do not exceed the minimum
amounts necessary, to maintain a negative credit subsidy for the program under
this section for insurance of loans, advances of credit, or purchases in
connection with a manufactured home or a lot on which to place such a home (or
both), as determined based upon risk to the Federal Government under existing
underwriting requirements.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H51E8A0D806B04FF2BE3B206E1CC2B0DC"><enum>(D)</enum><text display-inline="yes-display-inline">The Secretary may increase the limitations
on premium payments to percentages above those set forth in subparagraphs (A)
and (B), but only if necessary, and not in excess of the minimum increase
necessary, to maintain a negative credit subsidy as described in subparagraph
(C).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H9766DD206C254EC686F1A22BDBF635FA" section-type="subsequent-section"><enum>2147.</enum><header display-inline="yes-display-inline">Technical corrections</header>
<subsection commented="no" display-inline="no-display-inline" id="H653C572BF31847A6AD8B46B4587B600"><enum>(a)</enum><header display-inline="yes-display-inline">Dates</header><text display-inline="yes-display-inline">Subsection (a) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(a)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H423095EAB911463C814BFDB235695963"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>on and after July 1,
1939,</quote> each place such term appears; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA33AFBB4BBEE4BBA8537BCB7A2C056D9"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>made after the effective
date of the Housing Act of 1954</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8771691ADA5345C8B676EB08B8B5D649"><enum>(b)</enum><header display-inline="yes-display-inline">Authority of Secretary</header><text display-inline="yes-display-inline">Subsection (c) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(c)) is amended to read as follows:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="HF11DA993C6084C5CB8D34C02C2D68B60" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC771DF715C364D14BA6343C878247561"><enum>(c)</enum><header display-inline="yes-display-inline">Handling and Disposal of Property</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBB725E65A38549D2A71722C2A7EFD75D"><enum>(1)</enum><header display-inline="yes-display-inline">Authority of secretary</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
the Secretary may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H144F3350ED1F4CCDBF2176B34330CBCD"><enum>(A)</enum><text display-inline="yes-display-inline">deal with, complete, rent, renovate,
modernize, insure, or assign or sell at public or private sale, or otherwise
dispose of, for cash or credit in the Secretary’s discretion, and upon such
terms and conditions and for such consideration as the Secretary shall
determine to be reasonable, any real or personal property conveyed to or
otherwise acquired by the Secretary, in connection with the payment of
insurance heretofore or hereafter granted under this title, including any
evidence of debt, contract, claim, personal property, or security assigned to
or held by him in connection with the payment of insurance heretofore or
hereafter granted under this section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H21D0B98B4E354DD48632918B2C4ED8BA"><enum>(B)</enum><text display-inline="yes-display-inline">pursue to final collection, by way of
compromise or otherwise, all claims assigned to or held by the Secretary and
all legal or equitable rights accruing to the Secretary in connection with the
payment of such insurance, including unpaid insurance premiums owed in
connection with insurance made available by this title.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD8A3F5B6115D4883BA6286F8E7553BDE"><enum>(2)</enum><header display-inline="yes-display-inline">Advertisements for proposals</header><text display-inline="yes-display-inline">Section 3709 of the Revised Statutes shall
not be construed to apply to any contract of hazard insurance or to any
purchase or contract for services or supplies on account of such property if
the amount thereof does not exceed $25,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC8EB8FA101BA404487B28DCA91858F"><enum>(3)</enum><header display-inline="yes-display-inline">Delegation of authority</header><text display-inline="yes-display-inline">The power to convey and to execute in the
name of the Secretary, deeds of conveyance, deeds of release, assignments and
satisfactions of mortgages, and any other written instrument relating to real
or personal property or any interest therein heretofore or hereafter acquired
by the Secretary pursuant to the provisions of this title may be exercised by
an officer appointed by the Secretary without the execution of any express
delegation of power or power of attorney. Nothing in this subsection shall be
construed to prevent the Secretary from delegating such power by order or by
power of attorney, in the Secretary’s discretion, to any officer or agent the
Secretary may
appoint.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE56A0E45D5384E3EBE2943FF29985BFA" section-type="subsequent-section"><enum>2148.</enum><header display-inline="yes-display-inline">Revision of underwriting criteria</header>
<subsection commented="no" display-inline="no-display-inline" id="H1AD198BF4B854A66897C96C4EA974E2B"><enum>(a)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), as amended by the preceding provisions of this title, is further
amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="HAF670A72BC6C4E4688345281A36593A9" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE77E325CC1DD4DFBAFA9FAB05DEADCC7"><enum>(10)</enum><header display-inline="yes-display-inline">Financial soundness of manufactured housing
program</header><text display-inline="yes-display-inline">The Secretary shall
establish such underwriting criteria for loans and advances of credit in
connection with a manufactured home or a lot on which to place a manufactured
home (or both), including such loans and advances represented by obligations
purchased by financial institutions, as may be necessary to ensure that the
program under this title for insurance for financial institutions against
losses from such loans, advances of credit, and purchases is financially
sound.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H29A7FB9CF9574029BA47D8F28DD3491"><enum>(b)</enum><header display-inline="yes-display-inline">Timing</header><text display-inline="yes-display-inline">Not later than the expiration of the
6-month period beginning on the date of the enactment of this title, the
Secretary of Housing and Urban Development shall revise the existing
underwriting criteria for the program referred to in paragraph (10) of section
2(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (as
added by subsection (a) of this section) in accordance with the requirements of
such paragraph.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idA4592781955E4BEABECED2F2EF0FB277" section-type="subsequent-section"><enum>2149.</enum><header display-inline="yes-display-inline">Prohibition against kickbacks and unearned
fees</header><text display-inline="no-display-inline">Title I of the National
Housing Act is amended by adding at the end of section 9 the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0F64577C58D24B049013A05D69E68828" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id571E6E0960D341F99FE51877363E4FE3" section-type="subsequent-section"><enum>10.</enum><header display-inline="yes-display-inline">Prohibition against kickbacks and unearned
fees</header>
<subsection commented="no" display-inline="no-display-inline" id="id43D8DF72B0E24D9BA67CBB20531F68C8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b), the
provisions of sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement
Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2601">12 U.S.C. 2601 et seq.</external-xref>) shall apply to each sale of a
manufactured home financed with an FHA-insured loan or extension of credit, as
well as to services rendered in connection with such transactions.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8A9B0E88BCA44D42B519739BC8FD9C94"><enum>(b)</enum><header display-inline="yes-display-inline">Authority of the Secretary</header><text display-inline="yes-display-inline">The Secretary is authorized to determine
the manner and extent to which the provisions of sections 3, 8, 16, 17, 18, and
19 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et
seq.) may reasonably be applied to the transactions described in subsection
(a), and to grant such exemptions as may be necessary to achieve the purposes
of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD409FBA238BB48618C72F7BEE86C0581"><enum>(c)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID57354a5daff3480e9644406318aa5bec"><enum>(1)</enum><text display-inline="yes-display-inline">the term <quote>federally related mortgage
loan</quote> as used in sections 3, 8, 16, 17, 18, and 19 of the Real Estate
Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2601">12 U.S.C. 2601 et seq.</external-xref>) shall include an
FHA-insured loan or extension of credit made to a borrower for the purpose of
purchasing a manufactured home that the borrower intends to occupy as a
personal residence; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID63db11b171e14071ac01095a03d3ace1"><enum>(2)</enum><text display-inline="yes-display-inline">the term <quote>real estate settlement
service</quote> as used in sections 3, 8, 16, 17, 18, and 19 of the Real Estate
Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2601">12 U.S.C. 2601 et seq.</external-xref>) shall include any
service rendered in connection with a loan or extension of credit insured by
the Federal Housing Administration for the purchase of a manufactured
home.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA9AABC59AAE742189C6C68F496196B5C"><enum>(d)</enum><header display-inline="yes-display-inline">Unfair and deceptive
practices</header><text display-inline="yes-display-inline">In connection with
the purchase of a manufactured home financed with a loan or extension of credit
insured by the Federal Housing Administration under this title, the Secretary
shall prohibit acts or practices in connection with loans or extensions of
credit that the Secretary finds to be unfair, deceptive, or otherwise not in
the interests of the
borrower.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id95BF78252C644AD6A80D522FA964816C" section-type="subsequent-section"><enum>2150.</enum><header display-inline="yes-display-inline">Leasehold requirements</header><text display-inline="no-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), as amended by the preceding provisions of this title, is further
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6691A0E60DF04D9EB8F1D394A1174A8B" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id429A5368ED2241719B066D3F37FABBE4"><enum>(11)</enum><header display-inline="yes-display-inline">Leasehold requirements</header><text display-inline="yes-display-inline">No insurance shall be granted under this
section to any such financial institution with respect to any obligation
representing any such loan, advance of credit, or purchase by it, made for the
purposes of financing a manufactured home which is intended to be situated in a
manufactured home community pursuant to a lease, unless such lease—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idAD22B79FFA3241A383058F6755E2A881"><enum>(A)</enum><text display-inline="yes-display-inline">expires not less than 3 years after the
origination date of the obligation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC294BC3EC40B4B4FAAE0BDF71BD05EB8"><enum>(B)</enum><text display-inline="yes-display-inline">is renewable upon the expiration of the
original 3 year term by successive 1 year terms; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4C90DCF72D9B48BDB4354A97515811EA"><enum>(C)</enum><text display-inline="yes-display-inline">requires the lessor to provide the lessee
written notice of termination of the lease not less than 180 days prior to the
expiration of the current lease term in the event the lessee is required to
move due to the closing of the manufactured home community, and further
provides that failure to provide such notice to the mortgagor in a timely
manner will cause the lease term, at its expiration, to automatically renew for
an additional 1 year
term.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>II</enum><header>Mortgage foreclosure
protections for servicemembers</header>
<section id="id869B9C36ED224CFA9D2C6AE631D9262F"><enum>2201.</enum><header>Temporary increase in
maximum loan guaranty amount for certain housing loans guaranteed by the
Secretary of Veterans Affairs</header><text display-inline="no-display-inline">Notwithstanding subparagraph (C) of section
3703(a)(1) of title 38, United States Code, for purposes of any loan described
in subparagraph (A)(i)(IV) of such section that is originated during the period
beginning on the date of the enactment of this Act and ending on December 31,
2008, the term <term>maximum guaranty amount</term> shall mean an amount equal
to 25 percent of the higher of—</text>
<paragraph id="id219FA207859E4769B1ED3E29EFCA8EEC"><enum>(1)</enum><text>the limitation determined
under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2)) for the calendar year in which the loan is originated for a
single-family residence; or</text>
</paragraph><paragraph id="id77C3D517E00844238C1C521797F946A4"><enum>(2)</enum><text>125 percent of the area
median price for a single-family residence, but in no case to exceed 175
percent of the limitation determined under such section 305(a)(2) for the
calendar year in which the loan is originated for a single-family
residence.</text>
</paragraph></section><section id="id2A32B5C3AE88401F9ACA5CD4CEDEAE65"><enum>2202.</enum><header>Counseling on
mortgage foreclosures for members of the Armed Forces returning from service
abroad</header>
<subsection id="idAC9D202816F54CEFBA4986F5857D1EB2"><enum>(a)</enum><header>In
general</header><text>The Secretary of Defense shall develop and implement a
program to advise members of the Armed Forces (including members of the
National Guard and Reserve) who are returning from service on active duty
abroad (including service in Operation Iraqi Freedom and Operation Enduring
Freedom) on actions to be taken by such members to prevent or forestall
mortgage foreclosures.</text>
</subsection><subsection id="id4F219F29928A404E8B8AF4E50CE9B7AC"><enum>(b)</enum><header>Elements</header><text>The
program required by subsection (a) shall include the following:</text>
<paragraph id="id2C88B898A2E94554B15735B5122EAF2D"><enum>(1)</enum><text>Credit counseling.</text>
</paragraph><paragraph id="idF7CDD220D5E040C986C9F519D70EE3F3"><enum>(2)</enum><text>Home mortgage
counseling.</text>
</paragraph><paragraph id="id46231E4C2CCD42BBAF1BE565CACAECDB"><enum>(3)</enum><text>Such other counseling and
information as the Secretary considers appropriate for purposes of the
program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id50E3DA5EACD247119B4771E29EAF2946"><enum>(c)</enum><header>Timing of provision of
counseling</header><text>Counseling and other information under the program
required by subsection (a) shall be provided to a member of the Armed Forces
covered by the program as soon as practicable after the return of the member
from service as described in subsection (a).</text>
</subsection></section><section id="idB4BCF93180FA4904AF125F80BDEA2D22"><enum>2203.</enum><header>Enhancement of
protections for servicemembers relating to mortgages and mortgage
foreclosures</header>
<subsection id="id26A919123F9A466ABA4418C66CBEBC0A"><enum>(a)</enum><header>Extension of period of
protections against mortgage foreclosures</header>
<paragraph id="idADC087B4557C47B496D7FF66AD73BB2F"><enum>(1)</enum><header>Extension of protection
period</header><text>Subsection (c) of section 303 of the Servicemembers Civil
Relief Act (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/533">50 U.S.C. App. 533</external-xref>) is amended by striking <quote>90 days</quote>
and inserting <quote>9 months</quote>.</text>
</paragraph><paragraph id="idF6C5E10924DC4DDD95D381234EF8DE1B"><enum>(2)</enum><header>Extension of stay of
proceedings period</header><text>Subsection (b) of such section is amended by
striking <quote>90 days</quote> and inserting <quote>9 months</quote>.</text>
</paragraph></subsection><subsection id="id3F500B54A9CE45988150BB134ECD3119"><enum>(b)</enum><header>Treatment of mortgages
as obligations subject to interest rate limitation</header><text>Section 207 of
the Servicemembers Civil Relief Act (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/527">50 U.S.C. App. 527</external-xref>) is amended—</text>
<paragraph id="id05B50D389EAC46CCAFE4DDCEA69BC5F9"><enum>(1)</enum><text>in subsection (a)(1), by
striking <quote>in excess of 6 percent</quote> the second place it appears and
all that follows and inserting “in excess of 6 percent—</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id31071713C53244A19ED6E8C2B96A027A" reported-display-style="italic" style="OLC">
<subparagraph id="id7E268483E93C43C7A6EEF59793BAD830"><enum>(A)</enum><text>during the period of
military service and one year thereafter, in the case of an obligation or
liability consisting of a mortgage, trust deed, or other security in the nature
of a mortgage; or</text>
</subparagraph><subparagraph id="idE2CDF46395A7458D95715089C9E29F23"><enum>(B)</enum><text>during the period of
military service, in the case of any other obligation or
liability.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5353E9CEFFD549B9AC8EE39E2CE60441"><enum>(2)</enum><text>by striking subsection
(d) and inserting the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7449433E96404D0F96A7ACA81F411D5E" reported-display-style="italic" style="OLC">
<subsection id="id89CAB31E42F447FCA2A4AF3769063BFD"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id54AA0BD206BC4D549F1F9FB9DE5E97D1"><enum>(1)</enum><header>Interest</header><text>The
term <term>interest</term> includes service charges, renewal charges, fees, or
any other charges (except bona fide insurance) with respect to an obligation or
liability.</text>
</paragraph><paragraph id="id4BE2791B32D342369FEAC66F7046BBC6"><enum>(2)</enum><header>Obligation or
liability</header><text>The term <term>obligation or liability</term> includes
an obligation or liability consisting of a mortgage, trust deed, or other
security in the nature of a
mortgage.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id785D7B6486734110AF8A9DB227B049EA"><enum>(c)</enum><header>Effective date;
sunset</header>
<paragraph id="id3B4490FA60FD4DF8BBAAED5AD07E3DF8"><enum>(1)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect on
the date of enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id787395CC07EB48E5BD7C889835EA492F"><enum>(2)</enum><header>Sunset</header><text>The
amendments made by subsection (a) shall expire on December 31, 2010. Effective
January 1, 2011, the provisions of subsections (b) and (c) of section 303 of
the Servicemembers Civil Relief Act, as in effect on the day before the date of
the enactment of this Act, are hereby revived.</text>
</paragraph></subsection></section><enum>III</enum><header>Emergency assistance
for the redevelopment of abandoned and foreclosed homes</header>
<section id="id1BF2CDC2278C476AB0F378405DDAA82E"><enum>2301.</enum><header>Emergency assistance
for the redevelopment of abandoned and foreclosed homes</header>
<subsection id="id7970CE4F32474BCE97B0B9249B000762"><enum>(a)</enum><header>Direct
appropriations</header><text display-inline="yes-display-inline">There are
appropriated out of any money in the Treasury not otherwise appropriated for
the fiscal year 2008, $4,000,000,000, to remain available until expended, for
assistance to States and units of general local government (as such terms are
defined in section 102 of the Housing and Community Development Act of 1974 (42
U.S.C. 5302)) for the redevelopment of abandoned and foreclosed upon homes and
residential properties.</text>
</subsection><subsection id="idFE0A30C209E14DCBA9DC1BCAFFEEE4CF"><enum>(b)</enum><header>Allocation of
appropriated amounts</header>
<paragraph id="id5D7B9858832F40F69EEE73886A33AD7D"><enum>(1)</enum><header>In
general</header><text>The amounts appropriated or otherwise made available to
States and units of general local government under this section shall be
allocated based on a funding formula established by the Secretary of Housing
and Urban Development (in this title referred to as the
<quote>Secretary</quote>).</text>
</paragraph><paragraph id="id1861143134264142ABF0276572A9879E"><enum>(2)</enum><header>Formula to be devised
swiftly</header><text>The funding formula required under paragraph (1) shall be
established not later than 60 days after the date of enactment of this
section.</text>
</paragraph><paragraph id="idFFE42F956E8A463B82B090CD5E68D0FE"><enum>(3)</enum><header>Criteria</header><text>The
funding formula required under paragraph (1) shall ensure that any amounts
appropriated or otherwise made available under this section are allocated to
States and units of general local government with the greatest need, as such
need is determined in the discretion of the Secretary based on—</text>
<subparagraph id="ID36a48aa127c7490b9e3dd40ce281002f"><enum>(A)</enum><text>the number and percentage
of home foreclosures in each State or unit of general local government;</text>
</subparagraph><subparagraph id="ID88183d2dc42a4e31b8f9f32fb9d4c013"><enum>(B)</enum><text>the number and percentage
of homes financed by a subprime mortgage related loan in each State or unit of
general local government; and</text>
</subparagraph><subparagraph id="IDea079c7aee314ad4bf7d40884093e64f"><enum>(C)</enum><text>the number and percentage
of homes in default or delinquency in each State or unit of general local
government.</text>
</subparagraph></paragraph><paragraph id="id960DC51EE5684BE5884BB87A2AF724BD"><enum>(4)</enum><header>Distribution</header><text>Amounts
appropriated or otherwise made available under this section shall be
distributed according to the funding formula established by the Secretary under
paragraph (1) not later than 30 days after the establishment of such
formula.</text>
</paragraph></subsection><subsection id="id0F9798921E9E45DA9EE444EB2258FE03"><enum>(c)</enum><header>Use of funds</header>
<paragraph id="idB6820AAED53A452788863C596F240435"><enum>(1)</enum><header>In
general</header><text>Any State or unit of general local government that
receives amounts pursuant to this section shall, not later than 18 months after
the receipt of such amounts, use such amounts to purchase and redevelop
abandoned and foreclosed homes and residential properties.</text>
</paragraph><paragraph id="id74ABCB3E8E8C4F4682922E7E463162FF"><enum>(2)</enum><header>Priority</header><text>Any
State or unit of general local government that receives amounts pursuant to
this section shall in distributing such amounts give priority emphasis and
consideration to those metropolitan areas, metropolitan cities, urban areas,
rural areas, low- and moderate-income areas, and other areas with the greatest
need, including those—</text>
<subparagraph id="id3A1E69F4C61040EE972CD9B06E2DF1E1"><enum>(A)</enum><text>with the greatest
percentage of home foreclosures;</text>
</subparagraph><subparagraph id="idAB1AA9AFD5A14DF486ACA766BCA2F137"><enum>(B)</enum><text>with the highest
percentage of homes financed by a subprime mortgage related loan; and</text>
</subparagraph><subparagraph id="id21290CD6E3D749618279D3C4D380B99D"><enum>(C)</enum><text>identified by the State
or unit of general local government as likely to face a significant rise in the
rate of home foreclosures.</text>
</subparagraph></paragraph><paragraph id="idEF42AD5A158444D7BD16F2E88325E578"><enum>(3)</enum><header>Eligible
uses</header><text>Amounts made available under this section may be used
to—</text>
<subparagraph id="idA50B32BA955444DC908EDA347D5BBCE2"><enum>(A)</enum><text>establish financing
mechanisms for purchase and redevelopment of foreclosed upon homes and
residential properties, including such mechanisms as soft-seconds, loan loss
reserves, and shared-equity loans for low- and moderate-income
homebuyers;</text>
</subparagraph><subparagraph id="idD41329A46F2B40B28B589CC79FECD286"><enum>(B)</enum><text>purchase and rehabilitate
homes and residential properties that have been abandoned or foreclosed upon,
in order to sell, rent, or redevelop such homes and properties;</text>
</subparagraph><subparagraph id="id4926A42D9876415C99F569FC1BD9693B"><enum>(C)</enum><text>establish land banks for
homes that have been foreclosed upon;</text>
</subparagraph><subparagraph id="id2E2CE201A491496C86E1E862C965437B"><enum>(D)</enum><text>demolish blighted
structures; and</text>
</subparagraph><subparagraph id="id256E748B44E34675800B85DA2153A4E7"><enum>(E)</enum><text>redevelop demolished or
vacant properties.</text>
</subparagraph></paragraph></subsection><subsection id="id4CA7ECAD2D684EF58291BD8D21C92245"><enum>(d)</enum><header>Limitations</header>
<paragraph id="id8FE5DC9BD5464FC98C85C052BD1E6CC8"><enum>(1)</enum><header>On
purchases</header><text>Any purchase of a foreclosed upon home or residential
property under this section shall be at a discount from the current market
appraised value of the home or property, taking into account its current
condition, and such discount shall ensure that purchasers are paying
below-market value for the home or property.</text>
</paragraph><paragraph id="id2A16D32DF4DE491DB5F8B8F9774F3FC2"><enum>(2)</enum><header>Sale of
homes</header><text>If an abandoned or foreclosed upon home or residential
property is purchased, redeveloped, or otherwise sold to an individual as a
primary residence, then such sale shall be in an amount equal to or less than
the cost to acquire and redevelop or rehabilitate such home or property up to a
decent, safe, and habitable condition.</text>
</paragraph><paragraph id="id3E0A2198D3D94521948A6A28D96F5F6C"><enum>(3)</enum><header>Reinvestment of
profits</header>
<subparagraph id="idCACDD66210A84665BD0DFAF0CC7D5194"><enum>(A)</enum><header>Profits from sales,
rentals, and redevelopment</header>
<clause id="idF80722A53B324DC3A4DA610A807550DA"><enum>(i)</enum><header>5-year reinvestment
period</header><text>During the 5-year period following the date of enactment
of this Act, any revenue generated from the sale, rental, redevelopment,
rehabilitation, or any other eligible use that is in excess of the cost to
acquire and redevelop (including reasonable development fees) or rehabilitate
an abandoned or foreclosed upon home or residential property shall be provided
to and used by the State or unit of general local government in accordance
with, and in furtherance of, the intent and provisions of this section.</text>
</clause><clause id="id9C5DC8BF8BE04F518AEFA9EB8710E0E3"><enum>(ii)</enum><header>Deposits in the
Treasury</header>
<subclause id="idCC033D5C87504644B91269F3B79E66B0"><enum>(I)</enum><header>Profits</header><text>Upon
the expiration of the 5-year period set forth under clause (i), any revenue
generated from the sale, rental, redevelopment, rehabilitation, or any other
eligible use that is in excess of the cost to acquire and redevelop (including
reasonable development fees) or rehabilitate an abandoned or foreclosed upon
home or residential property shall be deposited in the Treasury of the United
States as miscellaneous receipts, unless the Secretary approves a request to
use the funds for purposes under this Act.</text>
</subclause><subclause id="id57BCB7AE2DFF4DD4A0254A89D4749F42"><enum>(II)</enum><header>Other
amounts</header><text>Upon the expiration of the 5-year period set forth under
clause (i), any other revenue not described under subclause (I) generated from
the sale, rental, redevelopment, rehabilitation, or any other eligible use of
an abandoned or foreclosed upon home or residential property shall be deposited
in the Treasury of the United States as miscellaneous receipts.</text>
</subclause></clause></subparagraph><subparagraph id="id3F32BC7E704940C78E0FCABDD3BF2746"><enum>(B)</enum><header>Other
revenues</header><text>Any revenue generated under subparagraphs (A), (C) or
(D) of subsection (c)(3) shall be provided to and used by the State or unit of
general local government in accordance with, and in furtherance of, the intent
and provisions of this section.</text>
</subparagraph></paragraph></subsection><subsection id="id9406AA840F5346778C80ECADAE087E92"><enum>(e)</enum><header>Rules of
construction</header>
<paragraph id="idC138CC8A577F45688244F336B8F8556C"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided by this section, amounts
appropriated, revenues generated, or amounts otherwise made available to States
and units of general local government under this section shall be treated as
though such funds were community development block grant funds under title I of
the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et
seq.).</text>
</paragraph><paragraph id="ID74b27efad9424c118f3e925623104ed0"><enum>(2)</enum><header>No
Match</header><text>No matching funds shall be required in order for a State or
unit of general local government to receive any amounts under this
section.</text>
</paragraph></subsection><subsection id="idAB630201DA0C4B73AED62E2D9B9D4409"><enum>(f)</enum><header>Authority To specify
alternative requirements</header>
<paragraph id="id0BE8DE45C19E4FF0B86A4A1A976CAB5B"><enum>(1)</enum><header>In
general</header><text>In administering any amounts appropriated or otherwise
made available under this section, the Secretary may specify alternative
requirements to any provision under title I of the Housing and Community
Development Act of 1974 (except for those related to fair housing,
nondiscrimination, labor standards, and the environment) in accordance with the
terms of this section and for the sole purpose of expediting the use of such
funds.</text>
</paragraph><paragraph id="id90D0C514F1DD47FFA7A64091F0DDF129"><enum>(2)</enum><header>Notice</header><text>The
Secretary shall provide written notice of its intent to exercise the authority
to specify alternative requirements under paragraph (1) to the Committee on
Banking, Housing and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives not later than 10 business days before
such exercise of authority is to occur.</text>
</paragraph><paragraph id="id6D39CF993E3A41F496490B338EC7249D"><enum>(3)</enum><header>Low and moderate income
requirement</header>
<subparagraph id="id93C9F676166D4889B796E6D59466A0EC"><enum>(A)</enum><header>In
general</header><text>Notwithstanding the authority of the Secretary under
paragraph (1)—</text>
<clause id="id39D39DD239754A6A8B2E464A7895B3AC"><enum>(i)</enum><text>all of the funds
appropriated or otherwise made available under this section shall be used with
respect to individuals and families whose income does not exceed 120 percent of
area median income; and</text>
</clause><clause id="idEEFDEEFF1FE34C1EA57B064FA23C78F3"><enum>(ii)</enum><text>not less than 25 percent
of the funds appropriated or otherwise made available under this section shall
be used for the purchase and redevelopment of abandoned or foreclosed upon
homes or residential properties that will be used to house individuals or
families whose incomes do not exceed 50 percent of area median income.</text>
</clause></subparagraph><subparagraph id="id534CC1DD58D8410B84EFF58C175DE476"><enum>(B)</enum><header>Recurrent
requirement</header><text>The Secretary shall, by rule or order, ensure, to the
maximum extent practicable and for the longest feasible term, that the sale,
rental, or redevelopment of abandoned and foreclosed upon homes and residential
properties under this section remain affordable to individuals or families
described in subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0F0CC1723E324462A20592713A73FA20"><enum>(g)</enum><header>Periodic
audits</header><text>In consultation with the Secretary of Housing and Urban
Development, the Comptroller General of the United States shall conduct
periodic audits to ensure that funds appropriated, made available, or otherwise
distributed under this section are being used in a manner consistent with the
criteria provided in this section.</text>
</subsection></section><section id="id73701B7641D640CDAE81B993E3ADDEC5"><enum>2302.</enum><header>Nationwide
distribution of resources</header><text display-inline="no-display-inline">Notwithstanding any other provision of this
Act or the amendments made by this Act, each State shall receive not less than
0.5 percent of funds made available under section 2301 (relating to emergency
assistance for the redevelopment of abandoned and foreclosed homes).</text>
</section><section id="id088791024F234EE78E95B84D9269F57F"><enum>2303.</enum><header>Limitation on use of
funds with respect to eminent domain</header><text display-inline="no-display-inline">No State or unit of general local government
may use any amounts received pursuant to section 2301 to fund any project that
seeks to use the power of eminent domain, unless eminent domain is employed
only for a public use: <italic>Provided,</italic> That for purposes of this
section, public use shall not be construed to include economic development that
primarily benefits private entities.</text>
</section><section id="idE5EDBB2278944B5CBD95DB2B7D372A4B"><enum>2304.</enum><header>Limitation on
distribution of funds</header>
<subsection id="idB8CE8611280A41CC9E9FACA694BAAB1F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">None of the funds
made available under this title or title IV shall be distributed to—</text>
<paragraph id="id46F0BFFFEA074F1F82413371A6C2A950"><enum>(1)</enum><text display-inline="yes-display-inline">an organization which has been indicted for
a violation under Federal law relating to an election for Federal office;
or</text>
</paragraph><paragraph id="id9AEC5314D1E9432BBC28F6D841AA7902"><enum>(2)</enum><text display-inline="yes-display-inline">an organization which employs applicable
individuals.</text>
</paragraph></subsection><subsection id="id4A278223156D4AFC8D226621F816D800"><enum>(b)</enum><header>Applicable individuals
defined</header><text display-inline="yes-display-inline">In this section, the
term <term>applicable individual</term> means an individual who—</text>
<paragraph id="idC72A8C00923A4A15B9DFB0A4247CE9B0"><enum>(1)</enum><text display-inline="yes-display-inline">is—</text>
<subparagraph id="id6F9F072A69AC4AAE954667A50A00D557"><enum>(A)</enum><text display-inline="yes-display-inline">employed by the organization in a permanent
or temporary capacity;</text>
</subparagraph><subparagraph id="idD694B68E78BF46F6A6F3442DE9D9A27C"><enum>(B)</enum><text display-inline="yes-display-inline">contracted or retained by the organization;
or</text>
</subparagraph><subparagraph id="id7142058E85D34CE0870A7AAE8CEC1CEC"><enum>(C)</enum><text display-inline="yes-display-inline">acting on behalf of, or with the express or
apparent authority of, the organization; and</text>
</subparagraph></paragraph><paragraph id="id983365D2C7A84E059A1D61540C4AAE3D"><enum>(2)</enum><text>has been indicted for a
violation under Federal law relating to an election for Federal office.</text>
</paragraph></subsection></section><section id="id5A0A91B7295746D5B2135DC3C0995BC6"><enum>2305.</enum><header>Counseling
intermediaries</header><text display-inline="no-display-inline">Notwithstanding
any other provision of this Act, the amount appropriated under section 2301(a)
of this Act shall be $3,920,000,000 and the amount appropriated under section
2401 of this Act shall be $180,000,000: <italic>Provided,</italic> That of
amounts appropriated under such section 2401 $30,000,000 shall be used by the
Neighborhood Reinvestment Corporation (referred to in this section as the
<quote>NRC</quote>) to make grants to counseling intermediaries approved by the
Department of Housing and Urban Development or the NRC to hire attorneys to
assist homeowners who have legal issues directly related to the homeowner's
foreclosure, delinquency or short sale. Such attorneys shall be capable of
assisting homeowners of owner-occupied homes with mortgages in default, in
danger of default, or subject to or at risk of foreclosure and who have legal
issues that cannot be handled by counselors already employed by such
intermediaries: <italic>Provided,</italic> That of the amounts provided for in
the prior provisos the NRC shall give priority consideration to counseling
intermediaries and legal organizations that (1) provide legal assistance in the
100 metropolitan statistical areas (as defined by the Director of the Office of
Management and Budget) with the highest home foreclosure rates, and (2) have
the capacity to begin using the financial assistance within 90 days after
receipt of the assistance: <italic>Provided further,</italic> That no funds
provided under this Act shall be used to provide, obtain, or arrange on behalf
of a homeowner, legal representation involving or for the purposes of civil
litigation.</text>
</section><enum>IV</enum><header>Housing counseling
resources</header>
<section id="idA2C1A499935944E69801ED5EC7300196"><enum>2401.</enum><header>Housing counseling
resources</header><text display-inline="no-display-inline">There are
appropriated out of any money in the Treasury not otherwise appropriated for
the fiscal year 2008, for an additional amount for the <quote>Neighborhood
Reinvestment Corporation—Payment to the Neighborhood Reinvestment
Corporation</quote> $100,000,000, to remain available until September 30, 2008,
for foreclosure mitigation activities under the terms and conditions contained
in the second undesignated paragraph (beginning with the phrase <quote>For an
additional amount</quote>) under the heading <quote>Neighborhood Reinvestment
Corporation—Payment to the Neighborhood Reinvestment Corporation</quote> of
<external-xref legal-doc="public-law" parsable-cite="pl/110/161">Public Law 110–161</external-xref>.</text>
</section><section id="id1CFB345364A44DF6A3713E904A7DECAB"><enum>2402.</enum><header>Credit
counseling</header>
<subsection id="idE3B0FAC743414E62939F3DFE8AC3AEF6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Entities approved by
the Neighborhood Reinvestment Corporation or the Secretary and State housing
finance entities receiving funds under this title shall work to identify and
coordinate with non-profit organizations operating national or statewide
toll-free foreclosure prevention hotlines, including those that—</text>
<paragraph id="id511873D979C9457B8B6301E7B29CBFB4"><enum>(1)</enum><text display-inline="yes-display-inline">serve as a consumer referral source and
data repository for borrowers experiencing some form of delinquency or
foreclosure;</text>
</paragraph><paragraph id="idC3C2937727EE4E99881A65366F304B16"><enum>(2)</enum><text display-inline="yes-display-inline">connect callers with local housing
counseling agencies approved by the Neighborhood Reinvestment Corporation or
the Secretary to assist with working out a positive resolution to their
mortgage delinquency or foreclosure; or</text>
</paragraph><paragraph id="idCEBEB4389F924F0785E3E8ECBEAF0941"><enum>(3)</enum><text display-inline="yes-display-inline">facilitate or offer free assistance to help
homeowners to understand their options, negotiate solutions, and find the best
resolution for their particular circumstances.</text>
</paragraph></subsection></section><enum>V</enum><header>Mortgage Disclosure
Improvement Act</header>
<section id="id222382E416594CA4B7DFB79C9A187EF2"><enum>2501.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Mortgage Disclosure Improvement Act of 2008</quote>.</text>
</section><section id="id4E8CC6CA92A34CB78B921D5BAE5B1133" section-type="subsequent-section"><enum>2502.</enum><header>Enhanced mortgage
loan disclosures</header>
<subsection id="id8512225B4D6E4CBDA0E8AF35CEE8F9DF"><enum>(a)</enum><header>Truth in Lending Act
Disclosures</header><text display-inline="yes-display-inline">Section 128(b)(2)
of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)(2)</external-xref>) is amended—</text>
<paragraph id="id5F36A14F3E814A35B3350511614E366F"><enum>(1)</enum><text>by inserting
<quote>(A)</quote> before <quote>In the</quote>;</text>
</paragraph><paragraph id="id3A736173BDFE44D5B872148D251BB778"><enum>(2)</enum><text>by striking <quote>a
residential mortgage transaction, as defined in section 103(w)</quote> and
inserting <quote>any extension of credit that is secured by the dwelling of a
consumer</quote>;</text>
</paragraph><paragraph id="idE5733A2F3D5C499E9544F82AD462D352"><enum>(3)</enum><text>by striking <quote>before
the credit is extended, or</quote>;</text>
</paragraph><paragraph id="id4E3A3FD7CC954055AFA1C5E0F661E414"><enum>(4)</enum><text>by inserting <quote>,
which shall be at least 7 business days before consummation of the
transaction</quote> after <quote>written application</quote>;</text>
</paragraph><paragraph id="id570AD39CE0F048669F288D340B820558"><enum>(5)</enum><text>by striking <quote>,
whichever is earlier</quote>; and</text>
</paragraph><paragraph id="idA3B9F039161D4558A86AAE505CEB7C07"><enum>(6)</enum><text>by striking <quote>If
the</quote> and all that follows through the end of the paragraph and inserting
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7585EBC4AB664E6C8F03C4F9670CFB72" reported-display-style="italic" style="OLC">
<subparagraph id="id082B52069A654DAB9B69F6EC0E14ED6C" indent="up1"><enum>(B)</enum><text>In the
case of an extension of credit that is secured by the dwelling of a consumer,
the disclosures provided under subparagraph (A), shall be in addition to the
other disclosures required by subsection (a), and shall—</text>
<clause id="id8401EEBE508A4C55878C9ED62AB487C0"><enum>(i)</enum><text>state in conspicuous type
size and format, the following: <quote>You are not required to complete this
agreement merely because you have received these disclosures or signed a loan
application.</quote>; and</text>
</clause><clause id="id07B8143474854EA79E70D1B59A20287B"><enum>(ii)</enum><text>be
provided in the form of final disclosures at the time of consummation of the
transaction, in the form and manner prescribed by this section.</text>
</clause></subparagraph><subparagraph id="id208E044DAC4046CFAC214A187B1C4424" indent="up1"><enum>(C)</enum><text>In the
case of an extension of credit that is secured by the dwelling of a consumer,
under which the annual rate of interest is variable, or with respect to which
the regular payments may otherwise be variable, in addition to the other
disclosures required by subsection (a), the disclosures provided under this
subsection shall do the following:</text>
<clause id="id90347D5904364D0594963BEDC3FEA883"><enum>(i)</enum><text>Label the payment
schedule as follows: <quote>Payment Schedule: Payments Will Vary Based on
Interest Rate Changes</quote>.</text>
</clause><clause id="id9A81B949F68945559E56981C4BC0C767"><enum>(ii)</enum><text>State in conspicuous
type size and format examples of adjustments to the regular required payment on
the extension of credit based on the change in the interest rates specified by
the contract for such extension of credit. Among the examples required to be
provided under this clause is an example that reflects the maximum payment
amount of the regular required payments on the extension of credit, based on
the maximum interest rate allowed under the contract, in accordance with the
rules of the Board. Prior to issuing any rules pursuant to this clause, the
Board shall conduct consumer testing to determine the appropriate format for
providing the disclosures required under this subparagraph to consumers so that
such disclosures can be easily understood, including the fact that the initial
regular payments are for a specific time period that will end on a certain
date, that payments will adjust afterwards potentially to a higher amount, and
that there is no guarantee that the borrower will be able to refinance to a
lower amount.</text>
</clause></subparagraph><subparagraph id="id1EDE84CDDD0540FFAD4D951AD6005986" indent="up1"><enum>(D)</enum><text>In any
case in which the disclosure statement under subparagraph (A) contains an
annual percentage rate of interest that is no longer accurate, as determined
under section 107(c), the creditor shall furnish an additional, corrected
statement to the borrower, not later than 3 business days before the date of
consummation of the transaction.</text>
</subparagraph><subparagraph id="idA1F67BDD76014C54BA7BE455029242C3" indent="up1"><enum>(E)</enum><text>The
consumer shall receive the disclosures required under this paragraph before
paying any fee to the creditor or other person in connection with the
consumer’s application for an extension of credit that is secured by the
dwelling of a consumer. If the disclosures are mailed to the consumer, the
consumer is considered to have received them 3 business days after they are
mailed. A creditor or other person may impose a fee for obtaining the
consumer’s credit report before the consumer has received the disclosures under
this paragraph, provided the fee is bona fide and reasonable in amount.</text>
</subparagraph><subparagraph id="ID1fd997375295483589a0a3c61534ef1a" indent="up1"><enum>(F)</enum><header>Waiver of timeliness of
disclosures</header><text>To expedite consummation of a transaction, if the
consumer determines that the extension of credit is needed to meet a bona fide
personal financial emergency, the consumer may waive or modify the timing
requirements for disclosures under subparagraph (A), provided that—</text>
<clause id="id51C96E204BF74255BC95C0B86AAEF25E"><enum>(i)</enum><text>the
term <quote>bona fide personal emergency</quote> may be further defined in
regulations issued by the Board;</text>
</clause><clause id="IDebe685417d38437d8ce344b1a6d7b8c5"><enum>(ii)</enum><text>the consumer provides to
the creditor a dated, written statement describing the emergency and
specifically waiving or modifying those timing requirements, which statement
shall bear the signature of all consumers entitled to receive the disclosures
required by this paragraph; and</text>
</clause><clause id="ID1d5eea36674e41fb962a5eeea8bc28df"><enum>(iii)</enum><text>the creditor provides
to the consumers at or before the time of such waiver or modification, the
final disclosures required by paragraph (1).</text>
</clause></subparagraph><subparagraph id="IDdee082e236c2454abb7c792f74b7bc96" indent="up1"><enum>(G)</enum><text>The
requirements of subparagraphs (B), (C), (D) and (E) shall not apply to
extensions of credit relating to plans described in section 101(53D) of title
11, United States
Code.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id57668AAB2577445BA031D745B02D2D3A"><enum>(b)</enum><header>Civil
liability</header><text display-inline="yes-display-inline">Section 130(a) of
the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1640">15 U.S.C. 1640(a)</external-xref>) is amended—</text>
<paragraph id="id06380036F0E14A12B2C1A0C606D0FB65"><enum>(1)</enum><text>in paragraph (2)(A)(iii),
by striking <quote>not less than $200 or greater than $2,000</quote> and
inserting <quote>not less than $400 or greater than $4,000</quote>; and</text>
</paragraph><paragraph id="id97E37A856CFC4916B44F7A401939025B"><enum>(2)</enum><text display-inline="yes-display-inline">in the penultimate sentence of the
undesignated matter following paragraph (4)—</text>
<subparagraph id="id2FBC404405C04584B22D6B663AFFBE68"><enum>(A)</enum><text>by inserting <quote>or
section 128(b)(2)(C)(ii),</quote> after <quote>128(a),</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id917F6782DD754485A6BBA1E9625A5A07"><enum>(B)</enum><text>by inserting <quote>or
section 128(b)(2)(C)(ii)</quote> before the period.</text>
</subparagraph></paragraph></subsection><subsection id="IDd42f6b1fa5234c079f35054a84441d72"><enum>(c)</enum><header>Effective
dates</header>
<paragraph id="id3EBBAF37E206497DA3A7430C8AB6E6CD"><enum>(1)</enum><header>General
disclosures</header><text>Except as provided in paragraph (2), the amendments
made by subsection (a) shall become effective 12 months after the date of
enactment of this Act.</text>
</paragraph><paragraph id="id5491C4A6BC0A4E428CF277624DA8BBF3"><enum>(2)</enum><header>Variable interest
rates</header><text>Subparagraph (C) of section 128(b)(2) of the Truth in
Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)(2)(C)</external-xref>), as added by subsection (a) of this
section, shall become effective on the earlier of—</text>
<subparagraph id="idF4D811E1A28C4BE99066E12340851709"><enum>(A)</enum><text>the compliance date
established by the Board for such purpose, by regulation; or</text>
</subparagraph><subparagraph id="idBC655243364B4DA592F59ADCCE37A208"><enum>(B)</enum><text>30 months after the date
of enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><section id="idF1A9093E02024E38926C547A86648F77"><enum>2503.</enum><header>Community Development
Investment Authority for depository institutions</header>
<subsection id="ID3348bdbdd4904ef79b4ccf6a1799b856"><enum>(a)</enum><header>National
banks</header><text>The first sentence of the paragraph designated as the
<quote>Eleventh</quote> of section 5136 of the Revised Statutes of the United
States (<external-xref legal-doc="usc" parsable-cite="usc/12/24">12 U.S.C. 24</external-xref>) is amended by striking <quote>promotes the public welfare
by benefitting primarily</quote> and inserting <quote>is designed primarily to
promote the public welfare, including the welfare of</quote>.</text>
</subsection><subsection id="IDd33e02c393664ec194869e0cb732073c"><enum>(b)</enum><header>State member
banks</header><text>The first sentence of the 23rd paragraph of section 9 of
the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/338a">12 U.S.C. 338a</external-xref>) is amended by striking <quote>promotes
the public welfare by benefitting primarily</quote> and inserting <quote>is
designed primarily to promote the public welfare, including the welfare
of</quote>.</text>
</subsection></section><enum>VI</enum><header>VETERANS HOUSING
MATTERS</header>
<section id="id793B62CFE6E045168A8644D1E37E84B8"><enum>2601.</enum><header>Home improvements and
structural alterations for totally disabled members of the Armed Forces before
discharge or release from the Armed Forces</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/38/1717">Section 1717</external-xref> of title 38, United States
Code, is amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC17987B6198C473E9DB2459EE0F0E579" reported-display-style="italic" style="OLC">
<subsection id="id1B64528C7A2E44828C05280D90207E54"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idD50AD331F9D049BEB11D8A7BCDC5D9D1"><enum>(1)</enum><text>In the case of a member
of the Armed Forces who, as determined by the Secretary, has a disability
permanent in nature incurred or aggravated in the line of duty in the active
military, naval, or air service, the Secretary may furnish improvements and
structural alterations for such member for such disability or as otherwise
described in subsection (a)(2) while such member is hospitalized or receiving
outpatient medical care, services, or treatment for such disability if the
Secretary determines that such member is likely to be discharged or released
from the Armed Forces for such disability.</text>
</paragraph><paragraph changed="added" commented="no" display-inline="no-display-inline" id="id5E9D289AC1F9495BB28C7CE9FE4AD011" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
furnishing of improvements and alterations under paragraph (1) in connection
with the furnishing of medical services described in subparagraph (A) or (B) of
subsection (a)(2) shall be subject to the limitation specified in the
applicable
subparagraph.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id4CE8A1AA1BA846CB86288E33E6474801"><enum>2602.</enum><header>Eligibility for
specially adapted housing benefits and assistance for members of the Armed
Forces with service-connected disabilities and individuals residing outside the
United States</header>
<subsection id="idB16B1C32714744D9A18E26CF0E733DFC"><enum>(a)</enum><header>Eligibility</header><text>Chapter
21 of title 38, United States Code, is amended by inserting after section 2101
the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id163757EF99C641FD944B2D5A3931B809" reported-display-style="italic" style="USC">
<section id="id995483CC2F8D42C9A772BDAC34FA5243"><enum>2101A.</enum><header>Eligibility for
benefits and assistance: members of the Armed Forces with service-connected
disabilities; individuals residing outside the United States</header>
<subsection commented="no" display-inline="no-display-inline" id="id133C87EDEA2F4588AFD21E277171ED7D"><enum>(a)</enum><header display-inline="yes-display-inline">Members with service-connected
disabilities</header><paragraph commented="no" display-inline="yes-display-inline" id="id37E6C80BBDEA4A5CB2980A96CCD85097"><enum>(1)</enum><text display-inline="yes-display-inline">The Secretary may provide assistance under
this chapter to a member of the Armed Forces serving on active duty who is
suffering from a disability that meets applicable criteria for benefits under
this chapter if the disability is incurred or aggravated in line of duty in the
active military, naval, or air service. Such assistance shall be provided to
the same extent as assistance is provided under this chapter to veterans
eligible for assistance under this chapter and subject to the same requirements
as veterans under this chapter.</text>
</paragraph><paragraph changed="added" commented="no" display-inline="no-display-inline" id="id0517F3D57AE843638A8DA7215E66F054" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>For
purposes of this chapter, any reference to a veteran or eligible individual
shall be treated as a reference to a member of the Armed Forces described in
subsection (a) who is similarly situated to the veteran or other eligible
individual so referred to.</text>
</paragraph></subsection><subsection id="idF5EFEF6ECFCD4E8AB87CE13E91FE2DD7"><enum>(b)</enum><header>Benefits and assistance
for individuals residing outside the United States</header><paragraph commented="no" display-inline="yes-display-inline" id="id2B7E429A70C04FEDB75589B67A4CFFF0"><enum>(1)</enum><text>Subject to paragraph
(2), the Secretary may, at the Secretary's discretion, provide benefits and
assistance under this chapter (other than benefits under section 2106 of this
title) to any individual otherwise eligible for such benefits and assistance
who resides outside the United States.</text>
</paragraph><paragraph changed="added" id="idEE52889251D8421C9A5249F12B397EF3" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
Secretary may provide benefits and assistance to an individual under paragraph
(1) only if—</text>
<subparagraph id="idBF936B28864B4BD78FFD43BAD1B4CAB6"><enum>(A)</enum><text>the
country or political subdivision in which the housing or residence involved is
or will be located permits the individual to have or acquire a beneficial
property interest (as determined by the Secretary) in such housing or
residence; and</text>
</subparagraph><subparagraph id="id28627079515E45638054E517A610C293"><enum>(B)</enum><text>the
individual has or will acquire a beneficial property interest (as so
determined) in such housing or residence.</text>
</subparagraph></paragraph></subsection><subsection id="id72A245413FDB4293ADE25490AEA86DD7"><enum>(c)</enum><header>Regulations</header><text>Benefits
and assistance under this chapter by reason of this section shall be provided
in accordance with such regulations as the Secretary may
prescribe.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id6477F8BBC7A14C4E96E239BD92DEAFD1"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id2393E9AEBC3149F5B7511A67763EB46B"><enum>(1)</enum><header>Repeal of superseded
authority</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2101">Section 2101</external-xref> of title 38, United States Code, is
amended—</text>
<subparagraph id="idF66F4A3531E94BEEA3226D48FFD9AF12"><enum>(A)</enum><text>by striking subsection
(c); and</text>
</subparagraph><subparagraph id="id101F1B14B7034798BA061E6A22D5E041"><enum>(B)</enum><text>by redesignating
subsection (d) as subsection (c).</text>
</subparagraph></paragraph><paragraph id="id147CCFC815F242ABB3B1134515C509F9"><enum>(2)</enum><header>Limitations on
assistance</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2102">Section 2102</external-xref> of title 38, United States Code, is
amended—</text>
<subparagraph id="idCF731A37862647168BCB531C3E510E37"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="id0114AA6EA89E43A58377E753AD8FB7E7"><enum>(i)</enum><text>by striking
<quote>veteran</quote> each place it appears and inserting
<quote>individual</quote>; and</text>
</clause><clause id="idF388A802325C4EB7B43989D4780064B9"><enum>(ii)</enum><text>in paragraph (3), by
striking <quote>veteran's</quote> and inserting
<quote>individual's</quote>;</text>
</clause></subparagraph><subparagraph id="id9E6CDBB0F4ED464E8DE89B8893463550"><enum>(B)</enum><text>in subsection (b)(1), by
striking <quote>a veteran</quote> and inserting <quote>an
individual</quote>;</text>
</subparagraph><subparagraph id="id4D1CB0E79ECF4662824738CF83FF4118"><enum>(C)</enum><text>in subsection (c)—</text>
<clause id="idCA603CADE4894B008DAF4A4E80C2D8B9"><enum>(i)</enum><text>by striking <quote>a
veteran</quote> and inserting <quote>an individual</quote>; and</text>
</clause><clause id="idA7B367B19B8A4DDFB29EFA3990B3A02C"><enum>(ii)</enum><text>by striking <quote>the
veteran</quote> each place it appears and inserting <quote>the
individual</quote>; and</text>
</clause></subparagraph><subparagraph id="id7B57D901EA2D4B43A19AA28840D38839"><enum>(D)</enum><text>in subsection (d), by
striking <quote>a veteran</quote> each place it appears and inserting <quote>an
individual</quote>.</text>
</subparagraph></paragraph><paragraph id="id5AD0DC908D6A414BA698CCD19C55ECE4"><enum>(3)</enum><header>Assistance for
individuals temporarily residing in housing of family
member</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2102A">Section 2102A</external-xref> of title 38, United States Code, is
amended—</text>
<subparagraph id="id796D6ECB5ABA4C35A144EB6265778F1B"><enum>(A)</enum><text>by striking
<quote>veteran</quote> each place it appears (other than in subsection (b)) and
inserting <quote>individual</quote>;</text>
</subparagraph><subparagraph id="idC689E6F646DC42619E4FAE01B1D47EA0"><enum>(B)</enum><text>in subsection (a), by
striking <quote>veteran's</quote> each place it appears and inserting
<quote>individual's</quote>; and</text>
</subparagraph><subparagraph id="id2146FF89E85547E487AEB30F9A653EA6"><enum>(C)</enum><text>in subsection (b), by
striking <quote>a veteran</quote> each place it appears and inserting <quote>an
individual</quote>.</text>
</subparagraph></paragraph><paragraph id="idA2B525A818A245CAA3CBF8821420E1F8"><enum>(4)</enum><header>Furnishing of plans and
specifications</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2103">Section 2103</external-xref> of title 38, United States Code, is
amended by striking <quote>veterans</quote> both places it appears and
inserting <quote>individuals</quote>.</text>
</paragraph><paragraph id="id033F3ED0C906411B82D864FC919AAA2A"><enum>(5)</enum><header>Construction of
benefits</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2104">Section 2104</external-xref> of title 38, United States Code, is
amended—</text>
<subparagraph id="id1B99671C278F449E8608B60ECCA0C43E"><enum>(A)</enum><text>in subsection (a), by
striking <quote>veteran</quote> each place it appears and inserting
<quote>individual</quote>; and</text>
</subparagraph><subparagraph id="id760E0E5FB9D445BEBE631F68530A7D73"><enum>(B)</enum><text>in subsection (b)—</text>
<clause id="id19E42E9AA7B142C6BBB0F86E3B398A4B"><enum>(i)</enum><text>in the first sentence, by
striking <quote>A veteran</quote> and inserting <quote>An
individual</quote>;</text>
</clause><clause id="id0DB6C590DC46428E93F1F341329F817E"><enum>(ii)</enum><text>in the second sentence,
by striking <quote>a veteran</quote> and inserting <quote>an
individual</quote>; and</text>
</clause><clause id="id92ED31888D674AEBBB3387806E18B7C3"><enum>(iii)</enum><text>by striking <quote>such
veteran</quote> each place it appears and inserting <quote>such
individual</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="id99C97C44B8464245BC619BF2BFA18CFE"><enum>(6)</enum><header>Veterans' mortgage life
insurance</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2106">Section 2106</external-xref> of title 38, United States Code, is
amended—</text>
<subparagraph id="id99B930BC5FF248EBABDB9548FF0C1E66"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="id2CA636B7250344FA932EAA5C0682253C"><enum>(i)</enum><text>by striking <quote>any
eligible veteran</quote> and inserting <quote>any eligible individual</quote>;
and</text>
</clause><clause id="id3E3C3C41609046A0AEC053ECD9166C2C"><enum>(ii)</enum><text>by striking <quote>the
veterans'</quote> and inserting <quote>the individual's</quote>;</text>
</clause></subparagraph><subparagraph id="id9C6180CF18DF4BE5B624AEFC5BBDF1B7"><enum>(B)</enum><text>in subsection (b), by
striking <quote>an eligible veteran</quote> and inserting <quote>an eligible
individual</quote>;</text>
</subparagraph><subparagraph id="id8DC17137239D42B48A88EBE47934A730"><enum>(C)</enum><text>in subsection (e), by
striking <quote>an eligible veteran</quote> and inserting <quote>an
individual</quote>;</text>
</subparagraph><subparagraph id="id6E52731E4B8E47BCA451CDFF1E431F41"><enum>(D)</enum><text>in subsection (h), by
striking <quote>each veteran</quote> and inserting <quote>each
individual</quote>;</text>
</subparagraph><subparagraph id="id69DFFCFC5ADB4F1A9DD2B9C700EB4023"><enum>(E)</enum><text>in subsection (i), by
striking <quote>the veteran's</quote> each place it appears and inserting
<quote>the individual's</quote>;</text>
</subparagraph><subparagraph id="idF0CCAED9917F47FAB3569B4C445F6029"><enum>(F)</enum><text>by striking <quote>the
veteran</quote> each place it appears and inserting <quote>the
individual</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFF1FE0EF6BDE46A59ADD25468E101F41"><enum>(G)</enum><text display-inline="yes-display-inline">by striking <quote>a veteran</quote> each
place it appears and inserting <quote>an individual</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id090F49DFDAD0451AB8782928E09C5882"><enum>(7)</enum><header>Heading
amendments</header><subparagraph commented="no" display-inline="yes-display-inline" id="id14935426F7474167B398BDA318F3C5DE"><enum>(A)</enum><text>The heading of section
2101 of title 38, United States Code, is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF2529237A4364B70B02ABACF7747E56C" reported-display-style="italic" style="USC">
<section commented="no" display-inline="no-display-inline" id="idC0B9A3C10F6C4166815464D3A23E6455"><enum>2101.</enum><header>Acquisition and
adaptation of housing: eligible
veterans</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph changed="added" commented="no" display-inline="no-display-inline" id="idF50DD2CF43CD476399C7D3CD078CCCC0" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>The
heading of section 2102A of such title is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4CC0E4B269C14D0388518B0499DE649F" reported-display-style="italic" style="USC">
<section commented="no" display-inline="no-display-inline" id="id6F156A36F9A84CADA56750A6F6858E0D"><enum>2102A.</enum><header>Assistance for
individuals residing temporarily in housing owned by a family
member</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id599B4E1159264527BF911F440E9AE4FE"><enum>(8)</enum><header>Clerical
amendments</header><text>The table of sections at the beginning of chapter 21
of title 38, United States Code, is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idCF5F02562A1242E0A29F17E694152A8D"><enum>(A)</enum><text>by striking the item
relating to section 2101 and inserting the following new item:</text>
<quoted-block changed="added" id="idc2d0d4dc-62b3-4a6d-80b7-1c339079e003" reported-display-style="italic" style="USC">
<toc changed="added" reported-display-style="italic">
<toc-entry idref="idC0B9A3C10F6C4166815464D3A23E6455" level="section">2101. Acquisition and
adaptation of housing: eligible
veterans.</toc-entry>
</toc>
<after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF1BD3E9563E41E1B49DA5008EFAE32F"><enum>(B)</enum><text>by inserting after the
item relating to section 2101, as so amended, the following new item:</text>
<quoted-block id="id048075c0-846d-45ff-81a4-09317f75159f" style="USC">
<toc changed="added" reported-display-style="italic">
<toc-entry idref="id995483CC2F8D42C9A772BDAC34FA5243" level="section">2101A. Eligibility for benefits
and assistance: members of the Armed Forces with service-connected
disabilities; individuals residing outside the United
States.</toc-entry>
</toc>
<after-quoted-block>;</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="subparagraph">and</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC55475DC66C04AB4B511EEFFA3D60684"><enum>(C)</enum><text>by striking the item
relating to section 2102A and inserting the following new item:</text>
<quoted-block changed="added" id="id20438d60-31d9-4c12-a9c7-a9d520debd44" reported-display-style="italic" style="USC">
<toc changed="added" reported-display-style="italic">
<toc-entry idref="id6F156A36F9A84CADA56750A6F6858E0D" level="section">2102A. Assistance for
individuals residing temporarily in housing owned by a family
member.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idA27B657ACA304218AB687089EF5FC460"><enum>2603.</enum><header>Specially adapted
housing assistance for individuals with severe burn injuries</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/38/2101">Section 2101</external-xref> of title 38, United States
Code, is amended—</text>
<paragraph id="idB1D10BE213C64832BDA2B771FE38C4AB"><enum>(1)</enum><text>in subsection (a)(2), by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id79D9D5076DFC4CA28EE2D4175E4F838D" reported-display-style="italic" style="OLC">
<subparagraph id="idC26135C8C3C6428C8F431099677F0BE5" indent="up1"><enum>(E)</enum><text>The
disability is due to a severe burn injury (as determined pursuant to
regulations prescribed by the
Secretary).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF1867506BDB746C7AE66A1E8749B1BE2"><enum>(2)</enum><text>in subsection
(b)(2)—</text>
<subparagraph id="id9B082FCBDDE84DE4933ADFB60F1777C2"><enum>(A)</enum><text>by striking
<quote>either</quote> and inserting <quote>any</quote>; and</text>
</subparagraph><subparagraph id="id971246CAA26B478AA07EF25A8123A215"><enum>(B)</enum><text>by adding at the end the
following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF016EDD8BE3B4E3BA73CFDC526B00E36" reported-display-style="italic" style="OLC">
<subparagraph id="id86C8FB59B60B41169EF803A29C263EE0" indent="up1"><enum>(C)</enum><text>The
disability is due to a severe burn injury (as so
determined).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="idA75E0E2D20B648B9A801D90BB529FAA2"><enum>2604.</enum><header>Extension of
assistance for individuals residing temporarily in housing owned by a family
member</header><text display-inline="no-display-inline">Section 2102A(e) of
title 38, United States Code, is amended by striking <quote>after the end of
the five-year period that begins on the date of the enactment of the Veterans'
Housing Opportunity and Benefits Improvement Act of 2006</quote> and inserting
<quote>after December 31, 2011</quote>.</text>
</section><section id="idEB0A953C736A4C03ACEA44530D857929"><enum>2605.</enum><header>Increase in specially
adapted housing benefits for disabled veterans</header>
<subsection id="idAE10231DCABF42A6BCAA19F4E26D4B94"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2102">Section 2102</external-xref> of title 38, United States Code, is
amended—</text>
<paragraph id="idB528859982BD41AA90BB701987EF21F7"><enum>(1)</enum><text>in subsection (b)(2), by
striking <quote>$10,000</quote> and inserting <quote>$12,000</quote>;</text>
</paragraph><paragraph id="idA0A2B52B39424718AC804DF4686F63CF"><enum>(2)</enum><text>in subsection (d)—</text>
<subparagraph id="id627784B6A8CA4F8EBB6259D9D5F18BD2"><enum>(A)</enum><text>in paragraph (1), by
striking <quote>$50,000</quote> and inserting <quote>$60,000</quote>;
and</text>
</subparagraph><subparagraph id="id8A54BB42E578412CBE303B98C0079C0E"><enum>(B)</enum><text>in paragraph (2), by
striking <quote>$10,000</quote> and inserting <quote>$12,000</quote>;
and</text>
</subparagraph></paragraph><paragraph id="id7B734A6E724342D5A1E479AE093F20A7"><enum>(3)</enum><text>by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0EEA7DCF01524D8883C68029E82DB77E" reported-display-style="italic" style="OLC">
<subsection id="id5F728843D3564B18BC53E00426D3D6D2"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idF30EBD71E22A4F8891DC8542AD507FD1"><enum>(1)</enum><text>Effective on October 1
of each year (beginning in 2009), the Secretary shall increase the amounts
described in subsection (b)(2) and paragraphs (1) and (2) of subsection (d) in
accordance with this subsection.</text>
</paragraph><paragraph changed="added" id="id0406F7E1BDF64F64BBE38DFA66B98681" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
increase in amounts under paragraph (1) to take effect on October 1 of a year
shall be by an amount of such amounts equal to the percentage by which—</text>
<subparagraph id="id5AD12F57E7454F7A84AD00B2CB8EB0A1"><enum>(A)</enum><text>the
residential home cost-of-construction index for the preceding calendar year,
exceeds</text>
</subparagraph><subparagraph id="id8D2F597CB6664D75B6C6C7C34A941217"><enum>(B)</enum><text>the
residential home cost-of-construction index for the year preceding the year
described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph changed="added" id="idB9F7A686DBE64C94A92293EA8E630805" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The
Secretary shall establish a residential home cost-of-construction index for the
purposes of this subsection. The index shall reflect a uniform, national
average change in the cost of residential home construction, determined on a
calendar year basis. The Secretary may use an index developed in the private
sector that the Secretary determines is appropriate for purposes of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id8CE5BBA6E0504CB4AA84E3FB895C561A"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
July 1, 2008, and shall apply with respect to payments made in accordance with
<external-xref legal-doc="usc" parsable-cite="usc/38/2102">section 2102</external-xref> of title 38, United States Code, on or after that date.</text>
</subsection></section><section id="id83DA8A78500240EE95F1D7CBC2B80D54"><enum>2606.</enum><header>Report on specially
adapted housing for disabled individuals</header>
<subsection id="id028E3B39F5714433B5EF096245A14647"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than
December 31, 2008, the Secretary of Veterans Affairs shall submit to the
Committee on Veterans' Affairs of the Senate and the Committee on Veterans'
Affairs of the House of Representatives a report that contains an assessment of
the adequacy of the authorities available to the Secretary under law to assist
eligible disabled individuals in acquiring—</text>
<paragraph id="id23FFEFB41E7343CEAA2D4595C2BF856A"><enum>(1)</enum><text display-inline="yes-display-inline">suitable housing units with special
fixtures or movable facilities required for their disabilities, and necessary
land therefor;</text>
</paragraph><paragraph id="id4FC8B8E02A5F4CD5980693DF9FE120F1"><enum>(2)</enum><text>such adaptations to their
residences as are reasonably necessary because of their disabilities;
and</text>
</paragraph><paragraph id="id738EF92516474574A665BDB3584FF098"><enum>(3)</enum><text>residences already
adapted with special features determined by the Secretary to be reasonably
necessary as a result of their disabilities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA349D9AE9B70490AB305479F41E486E1"><enum>(b)</enum><header>Focus on particular
disabilities</header><text>The report required by subsection (a) shall set
forth a specific assessment of the needs of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id7316C8F3A78B4601B1A8A95EF63B53C1"><enum>(1)</enum><text>veterans who have
disabilities that are not described in subsections (a)(2) and (b)(2) of section
2101 of title 38, United States Code; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id55C53CC83D184EDD810C71E38BD2BE60"><enum>(2)</enum><text>other disabled
individuals eligible for specially adapted housing under chapter 21 of such
title by reason of section 2101A of such title (as added by section 2602(a) of
this Act) who have disabilities that are not described in such
subsections.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id7A265D2CFAF94A25B88FF60AE2602434" section-type="subsequent-section"><enum>2607.</enum><header>Report on specially
adapted housing assistance for individuals who reside in housing owned by a
family member on permanent basis</header><text display-inline="no-display-inline">Not later than December 31, 2008, the
Secretary of Veterans Affairs shall submit to the Committee on Veterans'
Affairs of the Senate and the Committee on Veterans' Affairs of the House of
Representatives a report on the advisability of providing assistance under
<external-xref legal-doc="usc" parsable-cite="usc/38/2102A">section 2102A</external-xref> of title 38, United States Code, to veterans described in
subsection (a) of such section, and to members of the Armed Forces covered by
such section 2102A by reason of <external-xref legal-doc="usc" parsable-cite="usc/38/2101A">section 2101A</external-xref> of title 38, United States Code
(as added by section 2602(a) of this Act), who reside with family members on a
permanent basis.</text>
</section><section commented="no" display-inline="no-display-inline" id="id30E4C87A4C0645ABBDA3D0DC79C72A13" section-type="subsequent-section"><enum>2608.</enum><header>Definition of
annual income for purposes of section 8 and other public housing
programs</header><text display-inline="no-display-inline">Section 3(b)(4) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(3)(b)(4)) is amended by
inserting <quote>or any deferred Department of Veterans Affairs disability
benefits that are received in a lump sum amount or in prospective monthly
amounts</quote> before <quote>may not be considered</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id2B8237C382DC4EB1A1498D1EFE3278BC" section-type="subsequent-section"><enum>2609.</enum><header>Payment of
transportation of baggage and household effects for members of the Armed Forces
who relocate due to foreclosure of leased housing</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/37/406">Section 406</external-xref> of title 37, United States Code,
is amended—</text>
<paragraph id="id1F427D8F9E5043B4BB60E28AC9E36238"><enum>(1)</enum><text>by redesignating
subsections (k) and (l) as subsections (l) and (m), respectively; and</text>
</paragraph><paragraph id="idBDE66919B057485ABB21A10E27E4EA5C"><enum>(2)</enum><text>by inserting after
subsection (j) the following new subsection (k):</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2F0FB7BECB8C469AA6F32469B206ADDC" reported-display-style="italic" style="OLC">
<subsection id="id799712F5B259441FBB5F313872790477"><enum>(k)</enum><text>A member of the armed
forces who relocates from leased or rental housing by reason of the foreclosure
of such housing is entitled to transportation of baggage and household effects
under subsection (b)(1) in the same manner, and subject to the same conditions
and limitations, as similarly circumstanced members entitled to transportation
of baggage and household effects under that
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>VII</enum><header>Small Public Housing
Authorities Paperwork Reduction Act</header>
<section id="idABF7C0E833904BF0B6C93CD23C9208CB"><enum>2701.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Small Public Housing Authorities Paperwork Reduction
Act</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="ID68574B721EA646328C7F38D81FF28480" section-type="subsequent-section"><enum>2702.</enum><header>Public housing
agency plans for certain qualified public housing agencies</header>
<subsection commented="no" display-inline="no-display-inline" id="IDA91487A3AA164AE5AF6F858F954D8A34"><enum>(a)</enum><header>In
General</header><text display-inline="yes-display-inline">Section 5A(b) of the
<act-name parsable-cite="USHA">United States Housing Act of 1937</act-name> (42
U.S.C. 1437c–1(b)) is amended by adding at the end the following:</text>
<quoted-block act-name="United States Housing Act of 1937" changed="added" display-inline="no-display-inline" id="ID89226BDAB78E4FDABCB6674BF32F94C1" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID9D89586371BC485FB3132C8278418F08"><enum>(3)</enum><header>Exemption of certain
phas from filing requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1B25D8DF3DAD4393BC5A648C14DF0674"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (1) or any other provision of this Act—</text>
<clause commented="no" display-inline="no-display-inline" id="IDB6BE4BC21A3E47A6A792EDC653F908B9"><enum>(i)</enum><text display-inline="yes-display-inline">the requirement under paragraph (1) shall
not apply to any qualified public housing agency; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID188917DDC70F47189B3D8342F56B3670"><enum>(ii)</enum><text display-inline="yes-display-inline">except as provided in subsection (e)(4)(B),
any reference in this section or any other provision of law to a <quote>public
housing agency</quote> shall not be considered to refer to any qualified public
housing agency, to the extent such reference applies to the requirement to
submit an annual public housing agency plan under this subsection.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8D76257898EA44AF9F474B2C3FFBE991"><enum>(B)</enum><header>Civil rights
certification</header><text display-inline="yes-display-inline">Notwithstanding
that qualified public housing agencies are exempt under subparagraph (A) from
the requirement under this section to prepare and submit an annual public
housing plan, each qualified public housing agency shall, on an annual basis,
make the certification described in paragraph (16) of subsection (d), except
that for purposes of such qualified public housing agencies, such paragraph
shall be applied by substituting <quote>the public housing program of the
agency</quote> for <quote>the public housing agency plan</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID25561821B8604BEFAB43FD2790AB1EDC"><enum>(C)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified public housing agency</term> means a public housing agency that
meets the following requirements:</text>
<clause commented="no" display-inline="no-display-inline" id="id35151097D7604FF48CCA59FED768A464"><enum>(i)</enum><text>The sum of (I) the number
of public housing dwelling units administered by the agency, and (II) the
number of vouchers under section 8(o) of the United States Housing Act of 1937
(<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(o)</external-xref>) administered by the agency, is 550 or fewer.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDEB69B1A77B25492D8FE05DA6BD4A5EC2"><enum>(ii)</enum><text display-inline="yes-display-inline">The agency is not designated under section
6(j)(2) as a troubled public housing agency, and does not have a failing score
under the section 8 Management Assessment Program during the prior 12
months.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDCABB91556B8D40239A5D6E4A4C11B871"><enum>(b)</enum><header>Resident
Participation</header><text display-inline="yes-display-inline">Section 5A of
the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/1437c-1">42 U.S.C. 1437c–1</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDBD4394F16AC141F58AA95537F046B975"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (e), by inserting after
paragraph (3) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID274FD326CC044A918C72E213D0CED7FE" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID00D16A3A040A4A4D89701FC94D76BE35"><enum>(4)</enum><header>Qualified public
housing agencies</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1819C28D4E3B4E7E93F449F66C226069"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), nothing in this section may be construed to exempt a
qualified public housing agency from the requirement under paragraph (1) to
establish 1 or more resident advisory boards. Notwithstanding that qualified
public housing agencies are exempt under subsection (b)(3)(A) from the
requirement under this section to prepare and submit an annual public housing
plan, each qualified public housing agency shall consult with, and consider the
recommendations of the resident advisory boards for the agency, at the annual
public hearing required under subsection (f)(5), regarding any changes to the
goals, objectives, and policies of that agency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID72D984DC0AD246E1AA590CA6D3A67E93"><enum>(B)</enum><header>Applicability of waiver
authority</header><text display-inline="yes-display-inline">Paragraph (3) shall
apply to qualified public housing agencies, except that for purposes of such
qualified public housing agencies, subparagraph (B) of such paragraph shall be
applied by substituting <quote>the functions described in the second sentence
of paragraph (4)(A)</quote> for <quote>the functions described in paragraph
(2)</quote>.</text>
</subparagraph></paragraph><subsection commented="no" display-inline="no-display-inline" id="IDE45CB7DEEA1849EBB20A83F4481EC8C0"><enum>(f)</enum><header>Public
Hearings</header>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA6F4AF15A6C842919BCA14E830FF8363"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (f) (as so designated by the
amendment made by paragraph (1)), by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ID9AB240904386423581C47403CA38A903" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID59B2E7A56CB942CEB9F4A8D59FCB5DA0"><enum>(5)</enum><header>Qualified public
housing agencies</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDECC84804142C4613900DC3A03B7478CE"><enum>(A)</enum><header>Requirement</header><text display-inline="yes-display-inline">Notwithstanding that qualified public
housing agencies are exempt under subsection (b)(3)(A) from the requirement
under this section to conduct a public hearing regarding the annual public
housing plan of the agency, each qualified public housing agency shall annually
conduct a public hearing—</text>
<clause commented="no" display-inline="no-display-inline" id="id3560762D35DA4E379CCE5263CE5FD066"><enum>(i)</enum><text display-inline="yes-display-inline">to discuss any changes to the goals,
objectives, and policies of the agency; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idDB1C766854274F77A1403D81E1F78754"><enum>(ii)</enum><text display-inline="yes-display-inline">to invite public comment regarding such
changes.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD262A56F97F841F7AF7E1B52961F63A9"><enum>(B)</enum><header>Availability of
information and notice</header><text display-inline="yes-display-inline">Not
later than 45 days before the date of any hearing described in subparagraph
(A), a qualified public housing agency shall—</text>
<clause commented="no" display-inline="no-display-inline" id="ID062469C277174FA4B49875847F1757CA"><enum>(i)</enum><text display-inline="yes-display-inline">make all information relevant to the
hearing and any determinations of the agency regarding changes to the goals,
objectives, and policies of the agency to be considered at the hearing
available for inspection by the public at the principal office of the public
housing agency during normal business hours; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID3BB829A8ADBD40AD81F999FACA358D0F"><enum>(ii)</enum><text display-inline="yes-display-inline">publish a notice informing the public
that—</text>
<subclause commented="no" display-inline="no-display-inline" id="id520A2BAAD2F04D6292E9A3A8120DE3E5"><enum>(I)</enum><text display-inline="yes-display-inline">the information is available as required
under clause (i); and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id5C24A0FCCA404774A47594D4AFCCAF57"><enum>(II)</enum><text display-inline="yes-display-inline">a public hearing under subparagraph (A)
will be
conducted.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>VIII</enum><header>Foreclosure rescue
fraud protection</header>
<section id="id3FE74241F8FF41A695AC55A32CF16618" section-type="subsequent-section"><enum>2801.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Foreclosure Rescue Fraud Act of
2008</short-title></quote>.</text>
</section><section id="idEF7A987B1E3C484DB0982F681E256F2A" section-type="subsequent-section"><enum>2802.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="id4658F0B956C045D3853C84EF406D407B"><enum>(1)</enum><header>Commission</header><text>The
term <term>Commission</term> means the Federal Trade Commission.</text>
</paragraph><paragraph id="ID927d17122286484e9123a0e1a18a861a"><enum>(2)</enum><header>Foreclosure
consultant</header><text>The term <term>foreclosure consultant</term>—</text>
<subparagraph id="idEB9C86CCAFA844FD90125B4A435933C3"><enum>(A)</enum><text>means a person who makes
any solicitation, representation, or offer to a homeowner facing foreclosure on
residential real property to perform, for gain, or who performs, for gain, any
service that such person represents will prevent, postpone, or reverse the
effect of such foreclosure; and</text>
</subparagraph><subparagraph id="ID3fd9d1d79d4341478aa61ae3323c664d"><enum>(B)</enum><text>does not include—</text>
<clause id="ID7861bfe6c6444db6a968bf34ae2525cf"><enum>(i)</enum><text>an attorney licensed to
practice law in the State in which the property is located who has established
an attorney-client relationship with the homeowner;</text>
</clause><clause id="id59556BB2A2E74F98954397998A8453AE"><enum>(ii)</enum><text>a person licensed as a
real estate broker or salesperson in the State where the property is located,
and such person engages in acts permitted under the licensure laws of such
State;</text>
</clause><clause id="ID893cc94ef1d343f4bf3d3f9298700542"><enum>(iii)</enum><text>a housing counseling
agency approved by the Secretary;</text>
</clause><clause id="id88C02CBA477A4837A0A6ED7AAF6D0A52"><enum>(iv)</enum><text>a depository institution
(as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813));</text>
</clause><clause id="id52EBF0464E5947A7BF32DC6BDD73CDE3"><enum>(v)</enum><text>a Federal credit union or
a State credit union (as defined in section 101 of the Federal Credit Union Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>)); or</text>
</clause><clause id="id633760FB96E846EAA2A23D52DCBB7B69"><enum>(vi)</enum><text>an insurance company
organized under the laws of any State.</text>
</clause></subparagraph></paragraph><paragraph id="ID755b7466a2e04f788c67c31122d42706"><enum>(3)</enum><header>Homeowner</header><text>The
term <term>homeowner</term>, with respect to residential real property for
which an action to foreclose on the mortgage or deed of trust on such real
property is filed, means the person holding record title to such property as of
the date on which such action is filed.</text>
</paragraph><paragraph id="ID74e5f3218430499c83d5f26d1b28c30e"><enum>(4)</enum><header>Loan
servicer</header><text>The term <term>loan servicer</term> has the same meaning
as the term <term>servicer</term> in section 6(i)(2) of the Real Estate
Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2605">12 U.S.C. 2605(i)(2)</external-xref>).</text>
</paragraph><paragraph id="idCAC25BD5DFBB4CB6BF7490B03E611775"><enum>(5)</enum><header>Residential mortgage
loan</header><text display-inline="yes-display-inline">The term
<term>residential mortgage loan</term> means any loan primarily for personal,
family, or household use that is secured by a mortgage, deed of trust, or other
equivalent consensual security interest on a dwelling (as defined in section
103(v) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>)(v)) or residential real
estate upon which is constructed or intended to be constructed a dwelling (as
so defined).</text>
</paragraph><paragraph id="id7C9AE4C2F79C4BE884C608F5F53D4BE2"><enum>(6)</enum><header>Residential real
property</header><text>The term <term>residential real property</term> has the
meaning given the term <quote>dwelling</quote> in section 103 of the Consumer
Credit Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>).</text>
</paragraph><paragraph id="id2D6ABB8103894C3FA8B7B735CC6BD7D7"><enum>(7)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Housing and Urban
Development.</text>
</paragraph></section><section id="ID0257201d912a4daa9e835fb75d17fc6d"><enum>2803.</enum><header>Mortgage rescue fraud
protection</header>
<subsection id="IDa6b37777350644bd9d009626871fa5f0"><enum>(a)</enum><header>Limits on foreclosure
consultants</header><text>A foreclosure consultant may not—</text>
<paragraph id="id27A2BFB0D55444EEB4AB268B4F004C06"><enum>(1)</enum><text>claim, demand, charge,
collect, or receive any compensation from a homeowner for services performed by
such foreclosure consultant with respect to residential real property until
such foreclosure consultant has fully performed each service that such
foreclosure consultant contracted to perform or represented would be performed
with respect to such residential real property;</text>
</paragraph><paragraph id="IDe3e071e15a2940cf86588a082af03c40"><enum>(2)</enum><text>hold any power of
attorney from any homeowner, except to inspect documents, as provided by
applicable law;</text>
</paragraph><paragraph id="IDa7337dff7a13462faeb9cbb0a5ad7295"><enum>(3)</enum><text>receive any consideration
from a third party in connection with services rendered to a homeowner by such
third party with respect to the foreclosure of residential real property,
unless such consideration is fully disclosed, in a clear and conspicuous
manner, to such homeowner in writing before such services are rendered;</text>
</paragraph><paragraph id="IDde48cf1d7aac4fe6ae1301b1ef714063"><enum>(4)</enum><text>accept any wage
assignment, any lien of any type on real or personal property, or other
security to secure the payment of compensation with respect to services
provided by such foreclosure consultant in connection with the foreclosure of
residential real property; or</text>
</paragraph><paragraph id="ID13deaeb50d6a4ed686e1f7b8b4b68ec1"><enum>(5)</enum><text>acquire any interest,
directly or indirectly, in the residence of a homeowner with whom the
foreclosure consultant has contracted.</text>
</paragraph></subsection><subsection id="IDbba7b00e2f1d4765b1e36ad00c9d9fd3"><enum>(b)</enum><header>Contract
requirements</header>
<paragraph id="idD29D1732A06642CD8303819FF6796EDE"><enum>(1)</enum><header>Written contract
required</header><text>Notwithstanding any other provision of law, a
foreclosure consultant may not provide to a homeowner a service related to the
foreclosure of residential real property—</text>
<subparagraph id="idF886F451195240FD90D4473A2DBAF811"><enum>(A)</enum><text>unless—</text>
<clause id="id618F3CE13FF64ACAB0E8E8901569BA9C"><enum>(i)</enum><text>a written contract for
the purchase of such service has been signed and dated by the homeowner;
and</text>
</clause><clause id="id109DD17F003D4BD688AFD599D0306BEA"><enum>(ii)</enum><text>such contract complies
with the requirements described in paragraph (2); and</text>
</clause></subparagraph><subparagraph id="IDbfe388e48a724cf2b9418f7183a85499"><enum>(B)</enum><text>before the end of the
3-business-day period beginning on the date on which the contract is
signed.</text>
</subparagraph></paragraph><paragraph id="ID8b1b089114ab4eb4a17edf01e38abb97"><enum>(2)</enum><header>Terms and conditions of
contract</header><text>The requirements described in this paragraph, with
respect to a contract, are as follows:</text>
<subparagraph id="idDA32AA56EF574679A5C9D8C90C7352A0"><enum>(A)</enum><text>The contract includes, in
writing—</text>
<clause id="ID5b0dbc0897774bc2a234d8e0275a9bcd"><enum>(i)</enum><text>a full and detailed
description of the exact nature of the contract and the total amount and terms
of compensation;</text>
</clause><clause id="IDe0ed3c264aa946a1af9b685a763dfc62"><enum>(ii)</enum><text>the name, physical
address, phone number, email address, and facsimile number, if any, of the
foreclosure consultant to whom a notice of cancellation can be mailed or sent
under subsection (d); and</text>
</clause><clause id="ID1c0699be8dc147af9343fc62f4a738be"><enum>(iii)</enum><text>a conspicuous statement
in at least 12 point bold face type in immediate proximity to the space
reserved for the homeowner’s signature on the contract that reads as follows:
<quote>You may cancel this contract without penalty or obligation at any time
before midnight of the 3rd business day after the date on which you sign the
contract. See the attached notice of cancellation form for an explanation of
this right.</quote>.</text>
</clause></subparagraph><subparagraph id="ID6279bf4898814088988b2693b80fdb82"><enum>(B)</enum><text>The contract is written
in the principal language used to solicit or market the services to the
homeowner.</text>
</subparagraph><subparagraph id="id8B3D8B39CADF48C59EC8FDBF23C44B9E"><enum>(C)</enum><text>The contract is
accompanied by the form required by subsection (c)(2).</text>
</subparagraph></paragraph></subsection><subsection id="IDd0c06687ac0a43f8b07806adaa89be31"><enum>(c)</enum><header>Right To cancel
contract</header>
<paragraph id="IDcd7e31b6d6734fdd9b84914617bc49c3"><enum>(1)</enum><header>In
general</header><text>With respect to a contract between a homeowner and a
foreclosure consultant regarding the foreclosure on the residential real
property of such homeowner, such homeowner may cancel such contract without
penalty or obligation by mailing a notice of cancellation not later than
midnight of the 3rd business day after the date on which such contract is
executed or would become enforceable against the parties to such
contract.</text>
</paragraph><paragraph id="ID63ceba5cf6f140b99bc1f58ef24625e6"><enum>(2)</enum><header>Cancellation form and
other information</header><text>Each contract described in paragraph (1) shall
be accompanied by a form, in duplicate, that—</text>
<subparagraph id="idB55CC10941294E50802937D097D993C2"><enum>(A)</enum><text>has the heading
<quote>Notice of Cancellation</quote> in boldface type; and</text>
</subparagraph><subparagraph id="idF8D2D3798DC64EDD99FEC9103F4545D7"><enum>(B)</enum><text>contains in boldface type
the following statement:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB78007921C704E74992395ECFDBCC2D1" reported-display-style="italic" style="OLC"><list changed="added" level="paragraph" reported-display-style="italic">
<list-item>You may
cancel this contract, without any penalty or obligation, at any time before
midnight of the 3rd day after the date on which the contract is signed by
you.</list-item>
<list-item>To
cancel this contract, mail or deliver a signed and dated copy of this
cancellation notice or any other equivalent written notice to [insert name of
foreclosure consultant] at [insert address of foreclosure consultant] before
midnight on [insert date].</list-item>
<list-item>I hereby
cancel this transaction on [insert date] [insert homeowner
signature].</list-item></list>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="ID4efe5a882c9c4606af1269de846398d0"><enum>(d)</enum><header>Waiver of rights and
protections prohibited</header>
<paragraph id="id763CD2AA69674976AA16C2F32337C584"><enum>(1)</enum><header>In
general</header><text>A waiver by a homeowner of any protection provided by
this section or any right of a homeowner under this section—</text>
<subparagraph id="ID0a08b58026a24cc9a2a96c409ccdb843"><enum>(A)</enum><text>shall be treated as void;
and</text>
</subparagraph><subparagraph id="ID2fcab8e120454dbdb3ed00a378513fbe"><enum>(B)</enum><text>may not be enforced by
any Federal or State court or by any person.</text>
</subparagraph></paragraph><paragraph id="ID0f19b424bda3441d8e16ccd60d840eeb"><enum>(2)</enum><header>Attempt to obtain a
waiver</header><text>Any attempt by any person to obtain a waiver from any
homeowner of any protection provided by this section or any right of the
homeowner under this section shall be treated as a violation of this
section.</text>
</paragraph><paragraph id="IDeb9244a8b28d4ffba9db526e2efed8f7"><enum>(3)</enum><header>Contracts not in
compliance</header><text>Any contract that does not comply with the applicable
provisions of this title shall be void and may not be enforceable by any
party.</text>
</paragraph></subsection></section><section id="IDaec76b754fca4bf99a74525c917ba5b5"><enum>2804.</enum><header>Warnings to
homeowners of foreclosure rescue scams</header>
<subsection id="idB40E20878E44422C96070CD730F2755C"><enum>(a)</enum><header>In
general</header><text>If a loan servicer finds that a homeowner has failed to
make 2 consecutive payments on a residential mortgage loan and such loan is at
risk of being foreclosed upon, the loan servicer shall notify such homeowner of
the dangers of fraudulent activities associated with foreclosure.</text>
</subsection><subsection id="id4F4F6E7451D4479EB59A20334F93E4C3"><enum>(b)</enum><header>Notice
requirements</header><text>Each notice provided under subsection (a)
shall—</text>
<paragraph id="id0BCA2DA5E79A4E529FDBBB7BDBD79F02"><enum>(1)</enum><text>be in writing;</text>
</paragraph><paragraph id="id328BBC1D08404D5FB677F6B5495AAFE0"><enum>(2)</enum><text>be included with a
mailing of account information;</text>
</paragraph><paragraph id="idFEFB97B2D28048038AB1D63360BD8C4C"><enum>(3)</enum><text>have the heading
<quote>Notice Required by Federal Law</quote> in a 14-point boldface type in
English and Spanish at the top of such notice; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id80507078146A4BDE877CFBEF055991FA"><enum>(4)</enum><text>contain the following
statement in English and Spanish: <quote>Mortgage foreclosure is a complex
process. Some people may approach you about saving your home. You should be
careful about any such promises. There are government and nonprofit agencies
you may contact for helpful information about the foreclosure process. Contact
your lender immediately at [____], call the Department of Housing and Urban
Development Housing Counseling Line at (800) 569–4287 to find a housing
counseling agency certified by the Department to assist you in avoiding
foreclosure, or visit the Department's Tips for Avoiding Foreclosure website at
http://www.hud.gov/foreclosure for additional assistance.</quote> (the blank
space to be filled in by the loan servicer and successor telephone numbers and
Uniform Resource Locators (URLs) for the Department of Housing and Urban
Development Housing Counseling Line and Tips for Avoiding Foreclosure website,
respectively).</text>
</paragraph></subsection></section><section id="IDD0C5E94079B54B3AB7787F33C504A812"><enum>2805.</enum><header>Civil
liability</header>
<subsection id="id2B71ADE0D87646FB8E418627B499C4DA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Any foreclosure
consultant who fails to comply with any provision of section 2803 or 2804 with
respect to any other person shall be liable to such person in an amount equal
to the greater of—</text>
<paragraph id="IDCBD156294F3F4676BCC10697FF44F9C6"><enum>(1)</enum><text>the amount of any actual
damage sustained by such person as a result of such failure; or</text>
</paragraph><paragraph id="ID0302B3D478F74E73871F32D99D5A7E3E"><enum>(2)</enum><text>any amount paid by the
person to the foreclosure consultant.</text>
</paragraph></subsection><subsection id="id64D583AEA7F546AE97E6C438BB551095"><enum>(b)</enum><header>Class actions
prohibited</header><text>No Federal court may certify a civil action under
subsection (a) as a class action under rule 23 of the Federal Rules of Civil
Procedure.</text>
</subsection></section><section id="IDA1E5757ECDB94AB7936CACACB6AF8269"><enum>2806.</enum><header>Administrative
enforcement</header>
<subsection id="id1581C7AF36BC4B6CAE5F995CAE72698A"><enum>(a)</enum><header>Enforcement by Federal
Trade Commission</header>
<paragraph id="id759A2E3386F9459C9C63EAB33D56A4B7"><enum>(1)</enum><header>Unfair or deceptive act
or practice</header><text display-inline="yes-display-inline">A violation of a
prohibition described in section 2803 or a failure to comply with any provision
of section 2803 or 2804 shall be treated as a violation of a rule defining an
unfair or deceptive act or practice described under section 18(a)(1)(B) of the
Federal Trade Commission Act (<external-xref legal-doc="usc" parsable-cite="usc/15/57a">15 U.S.C. 57a(a)(1)(B)</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id148E3B5A971042A5AF582A28942D133A"><enum>(2)</enum><header>Actions by the Federal
Trade Commission</header><text display-inline="yes-display-inline">The Federal
Trade Commission shall enforce the provisions of sections 2803 and 2804 in the
same manner, by the same means, and with the same jurisdiction, powers, and
duties as though all applicable terms and provisions of the Federal Trade
Commission Act (<external-xref legal-doc="usc" parsable-cite="usc/15/41">15 U.S.C. 41 et seq.</external-xref>) were incorporated into and made part of
this title.</text>
</paragraph></subsection><subsection id="IDCF1E5FBA80B449F898B5EC95E098BE22"><enum>(b)</enum><header>State action for
violations</header>
<paragraph id="IDF2C7B8AE5E5E4381B11CA0D8291467BF"><enum>(1)</enum><header>Authority of
States</header><text>In addition to such other remedies as are provided under
State law, whenever the chief law enforcement officer of a State, or an
official or agency designated by a State, has reason to believe that any person
has violated or is violating the provisions of section 2803 or 2804, the
State—</text>
<subparagraph id="ID7A6D6CC19828459F945C860DC3CF58BF"><enum>(A)</enum><text>may bring an action to
enjoin such violation;</text>
</subparagraph><subparagraph id="ID70E657FA41CD446A82BAB90C8C0EAC31"><enum>(B)</enum><text>may bring an action on
behalf of its residents to recover damages for which the person is liable to
such residents under section 2805 as a result of the violation; and</text>
</subparagraph><subparagraph id="IDD15F171CFE6643ACB33E48A781FD8FC1"><enum>(C)</enum><text>in the case of any
successful action under subparagraph (A) or (B), shall be awarded the costs of
the action.</text>
</subparagraph></paragraph><paragraph id="ID069D8C1334134AABAC545ED018A06F2F"><enum>(2)</enum><header>Rights of Federal Trade
Commission</header>
<subparagraph id="IDFB1AE64B18344D659E04B21CE98A5256"><enum>(A)</enum><header>Notice to
commission</header><text>The State shall serve prior written notice of any
civil action under paragraph (1) upon the Commission and provide the Commission
with a copy of its complaint, except in any case in which such prior notice is
not feasible, in which case the State shall serve such notice immediately upon
instituting such action.</text>
</subparagraph><subparagraph id="ID6BAA31A74F07464E93A91F626EAF0CC8"><enum>(B)</enum><header>Intervention</header><text>The
Commission shall have the right—</text>
<clause id="ID37853F809BA94269AC5FEC3F2F61B75D"><enum>(i)</enum><text>to intervene in any
action referred to in subparagraph (A);</text>
</clause><clause id="IDFB6E131B148341C0B2158AC20F852878"><enum>(ii)</enum><text>upon so intervening, to
be heard on all matters arising in the action; and</text>
</clause><clause id="IDA6E59657983B459BBDBEB945C779C3A7"><enum>(iii)</enum><text>to file petitions for
appeal in such actions.</text>
</clause></subparagraph></paragraph><paragraph id="ID22E40F2FFAED4CF1A9D96F46791DA524"><enum>(3)</enum><header>Investigatory
powers</header><text>For purposes of bringing any action under this subsection,
nothing in this subsection shall prevent the chief law enforcement officer, or
an official or agency designated by a State, from exercising the powers
conferred on the chief law enforcement officer or such official by the laws of
such State to conduct investigations or to administer oaths or affirmations, or
to compel the attendance of witnesses or the production of documentary and
other evidence.</text>
</paragraph><paragraph id="IDEB35AF7B143548058F2AAAC42F74DF24"><enum>(4)</enum><header>Limitation</header><text>Whenever
the Federal Trade Commission has instituted a civil action for a violation of
section 2803 or 2804, no State may, during the pendency of such action, bring
an action under this section against any defendant named in the complaint of
the Commission for any violation of section 2803 or 2804 that is alleged in
that complaint.</text>
</paragraph></subsection></section><section id="id7C2FA2E25A65486C87D16C5A845CE2AA"><enum>2807.</enum><header>Limitation</header><text display-inline="no-display-inline">No violation of a prohibition described in
section 2803 or a failure to comply with any provision of section 2803 or 2804
shall provide grounds for the halt, delay, or modification of a foreclosure
process or proceeding.</text>
</section><section commented="no" display-inline="no-display-inline" id="id84D80ACC677549A9AF10CBFAC49444DE" section-type="subsequent-section"><enum>2808.</enum><header>Preemption</header><text display-inline="no-display-inline">Nothing in this title affects any provision
of State or local law respecting any foreclosure consultant, residential
mortgage loan, or residential real property that provides equal or greater
protection to homeowners than what is provided under this title.</text>
</section>C
3000.
(a)This division may be
cited as the Housing Assistance Tax
Act of 2008
.
(b)Except as otherwise
expressly provided, whenever in this division an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
<enum>I</enum><header>Housing tax
incentives</header>
<subtitle id="HF1D395A3A1824896A96F552B62FA0000"><enum>A</enum><header>Multi-family
housing</header>
<part id="HFF42906B671D4531B9DF97C295EF027F"><enum>I</enum><header>Low-income housing tax
credit</header>
<section display-inline="no-display-inline" id="H95341E5002C44DF896F66FDFA83DFCBE" section-type="subsequent-section"><enum>3001.</enum><header>Temporary increase
in volume cap for low-income housing tax credit</header><text display-inline="no-display-inline">Paragraph (3) of section 42(h) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H38C8440DFE6C462FA717C689E3D581FA" reported-display-style="italic" style="OLC">
<subparagraph id="H471AEFE4FA3E4B7289000700107F8804"><enum>(I)</enum><header>Increase in State
housing credit ceiling for 2008 and 2009</header><text display-inline="yes-display-inline">In the case of calendar years 2008 and
2009—</text>
<clause id="H0FFC83E0238241C2BC3E779EE1C5F9D8"><enum>(i)</enum><text>the dollar amount in
effect under subparagraph (C)(ii)(I) for such calendar year (after any increase
under subparagraph (H)) shall be increased by $0.20, and</text>
</clause><clause id="HC0BF9769DC4C42628900DF1E82AE582C"><enum>(ii)</enum><text display-inline="yes-display-inline">the dollar amount in effect under
subparagraph (C)(ii)(II) for such calendar year (after any increase under
subparagraph (H)) shall be increased by an amount equal to 10 percent of such
dollar amount (rounded to the next lowest multiple of
$5,000).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H538466DCD3474411A7868B677ED9ADF7"><enum>3002.</enum><header>Determination of
credit rate</header>
<subsection display-inline="no-display-inline" id="H72A7246FF5B94C5FBDF9EB188C6D49CA"><enum>(a)</enum><header>Temporary minimum
credit rate for non-federally subsidized new buildings</header><text display-inline="yes-display-inline">Subsection (b) of section 42 is amended by
redesignating paragraph (3) as paragraph (4) and by inserting after paragraph
(2) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H3FF2E49C19B04EBEBC9FA90E18EFC00" reported-display-style="italic" style="OLC">
<paragraph id="H1B2DCF430CE94C6CB70707345E3C536D"><enum>(3)</enum><header>Temporary minimum
credit rate for non-federally subsidized new buildings</header><text display-inline="yes-display-inline">In the case of any new building—</text>
<subparagraph id="HE19E9226C5084AFEA37926C6FE4BB15E"><enum>(A)</enum><text>which is placed in
service by the taxpayer after the date of the enactment of this paragraph and
before December 31, 2013, and</text>
</subparagraph><subparagraph id="H6667801FA5854AD794E3E55D70A34496"><enum>(B)</enum><text>which is not federally
subsidized for the taxable year,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">the applicable percentage shall not be
less than 9
percent.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HAF7BB8F941064DA2ABA1BA5E0F592F1"><enum>(b)</enum><header>Modifications to
definition of Federally subsidized building</header>
<paragraph id="HCB1B45EBE04C468E83A5C67C7959A100"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 42(i)(2) is amended by striking <quote>, or any below market Federal
loan,</quote>.</text>
</paragraph><paragraph id="H16BB2E1527BC44058148FD7FA956E107"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="H45CE25D78A9C47EA9C2E85B973BCD41"><enum>(A)</enum><text>Subparagraph (B) of
section 42(i)(2) is amended—</text>
<clause commented="no" id="H49214C9B11CD43DFA3B83DBBD9E5C969"><enum>(i)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">balance of loan
or</header-in-text></quote> in the heading thereof,</text>
</clause><clause commented="no" id="H1E77A32D1B9B421EAD004FCAC3EBC51E"><enum>(ii)</enum><text>by striking <quote>loan
or</quote> in the matter preceding clause (i), and</text>
</clause><clause commented="no" id="HCBD45E21D9CF4415BF4CD28BE7686690"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking <quote>subsection (d)—</quote>
and all that follows and inserting <quote>subsection (d) the proceeds of such
obligation.</quote>.</text>
</clause></subparagraph><subparagraph id="HFE56C183690F4669A0CE7BD436ED9888"><enum>(B)</enum><text>Subparagraph (C) of
section 42(i)(2) is amended—</text>
<clause id="H83453E66EF854476B37F2FFE898DCDA8"><enum>(i)</enum><text>by striking <quote>or
below market Federal loan</quote> in the matter preceding clause (i),</text>
</clause><clause id="HA02156F3B889427C8600BD11F0D1C7C"><enum>(ii)</enum><text>in clause (i)—</text>
<subclause id="H79E3853460C84674B5F3144D200BB63"><enum>(I)</enum><text>by striking <quote>or
loan (when issued or made)</quote> and inserting <quote>(when issued)</quote>,
and</text>
</subclause><subclause id="HA8071B55BAB848018B4BCC67DCC480F6"><enum>(II)</enum><text>by striking <quote>the
proceeds of such obligation or loan</quote> and inserting <quote>the proceeds
of such obligation</quote>, and</text>
</subclause></clause><clause id="HD8220FD87B9042FC00E5557B9661BBCF"><enum>(iii)</enum><text>by striking <quote>,
and such loan is repaid,</quote> in clause (ii).</text>
</clause></subparagraph><subparagraph id="H4EBD7B9B265A4F1B877400FEBEB8E3F8"><enum>(C)</enum><text>Paragraph (2) of section
42(i) is amended by striking subparagraphs (D) and (E).</text>
</subparagraph></paragraph></subsection><subsection id="H03911ADF913447D3839DE038E5774E72"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to buildings placed in service after the date of
the enactment of this Act.</text>
</subsection></section><section id="H7EC9109AD1AE40F2AD00D3BE39DEE4B9"><enum>3003.</enum><header>Modifications to
definition of eligible basis</header>
<subsection id="H2F0EE071C2714668928600B700656D82"><enum>(a)</enum><header>Increase in credit for
certain State designated buildings</header><text>Subparagraph (C) of section
42(d)(5) (relating to increase in credit for buildings in high cost areas),
before redesignation under subsection (g), is amended by adding at the end the
following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HEBE740A6FFED42DBA700054EE225A9B5" reported-display-style="italic" style="OLC">
<clause id="H74A6B69FD7A741F0B985C9435C99289F"><enum>(v)</enum><header>Buildings designated by
State housing credit agency</header><text display-inline="yes-display-inline">Any building which is designated by the
State housing credit agency as requiring the increase in credit under this
subparagraph in order for such building to be financially feasible as part of a
qualified low-income housing project shall be treated for purposes of this
subparagraph as located in a difficult development area which is designated for
purposes of this subparagraph. The preceding sentence shall not apply to any
building if paragraph (1) of subsection (h) does not apply to any portion of
the eligible basis of such building by reason of paragraph (4) of such
subsection.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H7A28A5C170AE48B9B20097E800008E5B"><enum>(b)</enum><header>Modification to
rehabilitation requirements</header>
<paragraph id="HE3536FBCC1CD40B9A945872052E6321D"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 42(e)(3)(A) is amended—</text>
<subparagraph id="HE7AAACC82CAD4EA793941F566BF27BA9"><enum>(A)</enum><text>by striking <quote>10
percent</quote> in subclause (I) and inserting <quote>20 percent</quote>,
and</text>
</subparagraph><subparagraph id="H77E0AE0BF3864420A906F2ED857F716D"><enum>(B)</enum><text>by striking
<quote>$3,000</quote> in subclause (II) and inserting
<quote>$6,000</quote>.</text>
</subparagraph></paragraph><paragraph id="H6547D92694FF4A98A6BA97902F3144A"><enum>(2)</enum><header>Inflation
adjustment</header><text>Paragraph (3) of section 42(e) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HFDB41F02ECC54B31A5495858DAEF57E8" reported-display-style="italic" style="OLC">
<subparagraph id="H2D601AD17C6144468FBD683C29EA3435"><enum>(D)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">In the case of any
expenditures which are treated under paragraph (4) as placed in service during
any calendar year after 2009, the $6,000 amount in subparagraph (A)(ii)(II)
shall be increased by an amount equal to—</text>
<clause id="H9CCF4B6A303B4209B7C6DEA4BD315616"><enum>(i)</enum><text>such dollar amount,
multiplied by</text>
</clause><clause id="HA6E325D3108340E6959BF635A43C13C5"><enum>(ii)</enum><text>the cost-of-living
adjustment determined under section 1(f)(3) for such calendar year by
substituting <quote>calendar year 2008</quote> for <quote>calendar year
1992</quote> in subparagraph (B) thereof.</text>
</clause><continuation-text continuation-text-level="subparagraph">Any increase under the preceding sentence
which is not a multiple of $100 shall be rounded to the nearest multiple of
$100.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3B47071A400F450DB966B6E6CAD1D364"><enum>(3)</enum><header>Conforming
amendment</header><text>Subclause (II) of section 42(f)(5)(B)(ii) is amended by
striking <quote>if subsection (e)(3)(A)(ii)(II)</quote> and all that follows
and inserting <quote>if the dollar amount in effect under subsection
(e)(3)(A)(ii)(II) were two-thirds of such amount.</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H32B877A63E8C42F3AAFA4BE04748997"><enum>(c)</enum><header>Increase in allowable
community service facility space for small projects</header><text display-inline="yes-display-inline">Clause (ii) of section 42(d)(4)(C)
(relating to limitation) is amended by striking <quote>10 percent of the
eligible basis of the qualified low-income housing project of which it is a
part. For purposes of</quote> and inserting</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="HAD3BCED9170D4AAA97C606489F00547F" reported-display-style="italic" style="OLC">
<text>the
sum of—</text><subclause id="HF5B042173AA44F16BCEABADB0BEC058"><enum>(I)</enum><text display-inline="yes-display-inline">25 percent of so much of the eligible basis
of the qualified low-income housing project of which it is a part as does not
exceed $15,000,000, plus</text>
</subclause><subclause id="HC7633BB786954DEB901D11B1D88FCEA1"><enum>(II)</enum><text>10 percent of so much of
the eligible basis of such project as is not taken into account under subclause
(I).</text>
</subclause><quoted-block-continuation-text quoted-block-continuation-text-level="clause">For purposes
of</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1BA3687A3E264FB5A3B9613700E593C9"><enum>(d)</enum><header>Clarification of
treatment of Federal grants</header><text>Subparagraph (A) of section 42(d)(5)
is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4729CB3E386B4C1098FD3527C52CCD90" reported-display-style="italic" style="OLC">
<subparagraph id="HB4BD0948B3F44EA196F2F1E7673B6C49"><enum>(A)</enum><header>Federal grants not
taken into account in determining eligible basis</header><text display-inline="yes-display-inline">The eligible basis of a building shall not
include any costs financed with the proceeds of a Federally funded
grant.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H48D2693CEAE74F18BDC04306613721CE"><enum>(e)</enum><header>Simplification of
related party rules</header><text>Clause (iii) of section 42(d)(2)(D), before
redesignation under subsection (g)(2), is amended—</text>
<paragraph id="HBE735AB1A12D483BA70355FE8C96F693"><enum>(1)</enum><text>by striking all that
precedes subclause (II),</text>
</paragraph><paragraph id="HD08E27735ADA4D3B90CB20DDA915756B"><enum>(2)</enum><text>by redesignating
subclause (II) as clause (iii) and moving such clause two ems to the left,
and</text>
</paragraph><paragraph id="HFF62FC9225954BB000AC5BE23109E5E5"><enum>(3)</enum><text>by striking the last
sentence thereof.</text>
</paragraph></subsection><subsection id="HF73C124FCB774D20B0FF983009E307F2"><enum>(f)</enum><header>Exception to 10-year
nonacquisition period for existing buildings applicable to Federally- or
State-assisted buildings</header><text>Paragraph (6) of section 42(d) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5A69C7D7B19046028755BD177E622B25" reported-display-style="italic" style="OLC">
<paragraph id="HD4769C03FCA64D6399E360D973C03E93"><enum>(6)</enum><header>Credit allowable for
certain buildings acquired during 10-year period described in paragraph
<enum-in-header>(2)(B)(ii)</enum-in-header></header>
<subparagraph id="H53F8FF401F1D4DBFAA5B5366DF71B9D0"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2)(B)(ii)
shall not apply to any Federally- or State-assisted building.</text>
</subparagraph><subparagraph id="H018C95D709FB4984ACFC5EB29BD917F3"><enum>(B)</enum><header>Buildings acquired from
insured depository institutions in default</header><text display-inline="yes-display-inline">On application by the taxpayer, the
Secretary may waive paragraph (2)(B)(ii) with respect to any building acquired
from an insured depository institution in default (as defined in section 3 of
the Federal Deposit Insurance Act) or from a receiver or conservator of such an
institution.</text>
</subparagraph><subparagraph id="H4348F0199A2A482999480000DBB91494"><enum>(C)</enum><header>Federally- or
State-assisted building</header><text display-inline="yes-display-inline">For
purposes of this paragraph—</text>
<clause id="H810627C8E7864841A931B97925D70318"><enum>(i)</enum><header>Federally-assisted
building</header><text>The term <quote>Federally-assisted building</quote>
means any building which is substantially assisted, financed, or operated under
section 8 of the United States Housing Act of 1937, section 221(d)(3),
221(d)(4), or 236 of the National Housing Act, or section 515 of the Housing
Act of 1949 (as such Acts are in effect on the date of the enactment of the Tax
Reform Act of 1986).</text>
</clause><clause id="HD7A0C1D800FA44508BDF973335D35387"><enum>(ii)</enum><header>State-assisted
building</header><text>The term <quote>State-assisted building</quote> means
any building which is substantially assisted, financed, or operated under any
State law similar in purposes to any of the laws referred to in clause
(i).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1016103AB07143C8A4F4465BFBD08D60"><enum>(g)</enum><header>Repeal of
deadwood</header>
<paragraph id="HA06F4C65775744CC84DB9B69F59C610"><enum>(1)</enum><text>Clause (ii) of section
42(d)(2)(B) is amended by striking <quote>the later of—</quote> and all that
follows and inserting <quote>the date the building was last placed in
service,</quote>.</text>
</paragraph><paragraph id="H5EEE453C960945B6A19EBD77B8E7DDFA"><enum>(2)</enum><text display-inline="yes-display-inline">Subparagraph (D) of section 42(d)(2) is
amended by striking clause (i) and by redesignating clauses (ii) and (iii) as
clauses (i) and (ii), respectively.</text>
</paragraph><paragraph id="HE4994CAE4E1C4AA0ACB48BBD18339512"><enum>(3)</enum><text>Paragraph (5) of section
42(d) is amended by striking subparagraph (B) and by redesignating subparagraph
(C) as subparagraph (B).</text>
</paragraph></subsection><subsection id="H6303896571A048D6A41EB3ABB2D7834B"><enum>(h)</enum><header>Effective date</header>
<paragraph id="H75A2369323DC463384B6F4F9E2A3B563"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in paragraph (2), the
amendments made by this subsection shall apply to buildings placed in service
after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H34E75770D93E4F3C94158B37D7C8B3A0"><enum>(2)</enum><header>Rehabilitation
requirements</header>
<subparagraph id="H7D3A9FA668124BAF82DD36FD9085E8DF"><enum>(A)</enum><header>In
general</header><text>The amendments made by subsection (b) shall apply with
respect to housing credit dollar amounts allocated after the date of the
enactment of this Act.</text>
</subparagraph><subparagraph id="HAA814CF0978D48CF006E792DE26CE519"><enum>(B)</enum><header>Buildings not subject
to allocation limits</header><text>To the extent paragraph (1) of section 42(h)
of the Internal Revenue Code of 1986 does not apply to any building by reason
of paragraph (4) thereof, the amendments made by subsection (b) shall apply to
buildings placed in service after the date of the enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><section id="HFECF5FD55948457EB1D223774CA86AA"><enum>3004.</enum><header>Other simplification
and reform of low-income housing tax incentives</header>
<subsection display-inline="no-display-inline" id="H6B35FAF44B6A44EEA25E80C5F1C02B22"><enum>(a)</enum><header>Repeal prohibition on
moderate rehabilitation assistance</header><text display-inline="yes-display-inline">Paragraph (2) of section 42(c) (defining
qualified low-income building) is amended by striking the flush sentence at the
end.</text>
</subsection><subsection id="H5A84E2508EC943AA81ADC6B5B42C398"><enum>(b)</enum><header>Modification of time
limit for incurring 10 percent of project’s cost</header><text display-inline="yes-display-inline">Clause (ii) of section 42(h)(1)(E) is
amended by striking <quote>(as of the later of the date which is 6 months after
the date that the allocation was made or the close of the calendar year in
which the allocation is made)</quote> and inserting <quote>(as of the date
which is 1 year after the date that the allocation was made)</quote>.</text>
</subsection><subsection id="H763E37522DD7401AAFE137007276BF22"><enum>(c)</enum><header>Repeal of bonding
requirement on disposition of building</header><text display-inline="yes-display-inline">Paragraph (6) of section 42(j) (relating to
no recapture on disposition of building (or interest therein) where bond
posted) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9E1DFAA2537A49FFA3BDACB8484FC43" reported-display-style="italic" style="OLC">
<paragraph id="HC79F13940164450F8500C2C728C061DF"><enum>(6)</enum><header>No recapture on
disposition of building which continues in qualified use</header>
<subparagraph id="HF4C5B83119A64C720004C9225055ED83"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The increase in tax
under this subsection shall not apply solely by reason of the disposition of a
building (or an interest therein) if it is reasonably expected that such
building will continue to be operated as a qualified low-income building for
the remaining compliance period with respect to such building.</text>
</subparagraph><subparagraph id="HAE50C981525B4D31B238F39DEF03BC52"><enum>(B)</enum><header>Statute of
limitations</header><text>If a building (or an interest therein) is disposed of
during any taxable year and there is any reduction in the qualified basis of
such building which results in an increase in tax under this subsection for
such taxable or any subsequent taxable year, then—</text>
<clause id="H98D6EE6F9F474AC69834995F1CC7D41C"><enum>(i)</enum><text>the statutory period for
the assessment of any deficiency with respect to such increase in tax shall not
expire before the expiration of 3 years from the date the Secretary is notified
by the taxpayer (in such manner as the Secretary may prescribe) of such
reduction in qualified basis, and</text>
</clause><clause id="HFC92D2A3A19A43B8AA4600CDB0A43F85"><enum>(ii)</enum><text display-inline="yes-display-inline">such deficiency may be assessed before the
expiration of such 3-year period notwithstanding the provisions of any other
law or rule of law which would otherwise prevent such
assessment.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7E7B00DB99864FA4A41547CFCD36F3E8"><enum>(d)</enum><header>Energy efficiency and
historic nature taken into account in making
allocations</header><text>Subparagraph (C) of section 42(m)(1) (relating to
plans for allocation of credit among projects) is amended by striking
<quote>and</quote> at the end of clause (vii), by striking the period at the
end of clause (viii) and inserting a comma, and by adding at the end the
following new clauses:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8154753C89B747B0AE34970095A24D92" reported-display-style="italic" style="OLC">
<clause id="H143D20DDB3B946228B08DFF0C2630875"><enum>(ix)</enum><text display-inline="yes-display-inline">the energy efficiency of the project,
and</text>
</clause><clause id="H215BF16EDB464D41AA1000BD1500F808"><enum>(x)</enum><text>the historic nature of
the
project.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2FF8A0729EDC48E0AC42F83823000032"><enum>(e)</enum><header>Continued eligibility
for students who received foster care assistance</header><text>Clause (i) of
section 42(i)(3)(D) is amended by striking <quote>or</quote> at the end of
subclause (I), by redesignating subclause (II) as subclause (III), and by
inserting after subclause (I) the following new subclause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H49814109A42B43EB9ED77D15D7839676" reported-display-style="italic" style="OLC">
<subclause id="HB3CD24368B2F47DC888606A67E7C0052"><enum>(II)</enum><text display-inline="yes-display-inline">a student who was previously under the care
and placement responsibility of the State agency responsible for administering
a plan under part B or part E of title IV of the Social Security Act,
or</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="HAF91CD72B1EF4F99830000291BF9EB71"><enum>(f)</enum><header>Treatment of rural
projects</header><text>Section 42(i) (relating to definitions and special
rules) is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" id="H9403484B096C47D894E35D6B89D71041" reported-display-style="italic" style="OLC">
<paragraph id="HEC00CE38001E486883B3A5D3CAE77A4"><enum>(8)</enum><header>Treatment of rural
projects</header><text>For purposes of this section, in the case of any project
for residential rental property located in a rural area (as defined in section
520 of the Housing Act of 1949), any income limitation measured by reference to
area median gross income shall be measured by reference to the greater of area
median gross income or national non-metropolitan median income. The preceding
sentence shall not apply with respect to any building if paragraph (1) of
section 42(h) does not apply by reason of paragraph (4) thereof to any portion
of the credit determined under this section with respect to such
building.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H1F6FFBEA25EC4D1DAFCC6096D74EE716"><enum>(g)</enum><header>Clarification of
general public use requirement</header><text>Subsection (c) of section 42 is
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF7D80E188A3E4C3FA2FCC2A43027C602" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="H8DE0EFB7F07B489F902FF41B39BF0097"><enum>(3)</enum><header>Clarification of
general public use requirement</header>
<subparagraph commented="no" id="H777BD608CE2B4545BF5F7CD7E0012ED"><enum>(A)</enum><header>In
general</header><text>A building which meets the requirements of subparagraph
(B) shall not fail to be treated as a qualified low-income building solely
because occupancy in such building is restricted to individuals who have
special needs, share a common occupation or common interests, or are members of
a specified group based on Federal, State, or local programs or
requirements.</text>
</subparagraph><subparagraph commented="no" id="H32CB9AEE032F4926ADFCF7884D496341"><enum>(B)</enum><header>Basic public use
requirements</header><text>A building meets the requirements of this
subparagraph if—</text>
<clause commented="no" id="HBD8B17039E5E458491EAB2CB569381A7"><enum>(i)</enum><text>such building is used
consistent with housing policy governing non-discrimination as evidenced by
rules and regulations of the Department of Housing and Urban
Development,</text>
</clause><clause commented="no" id="HF85274CE185D4027BC7784D12085A6FA"><enum>(ii)</enum><text>occupancy in such
building is not restricted on the basis of membership in a social organization
or on the basis of employment by specific employers, and</text>
</clause><clause commented="no" id="H5E09660465ED48E700F019EADF65FEB"><enum>(iii)</enum><text>such building is not
part of a hospital, nursing home, sanitarium, lifecare facility, trailer park,
or intermediate care facility for the mentally or physically
handicapped.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H88238357F94343D1831D05CA0739A4B7"><enum>(h)</enum><header>GAO study regarding
modifications to low-income housing tax credit</header><text>Not later than
December 31, 2012, the Comptroller General of the United States shall submit to
Congress a report which analyzes the implementation of the modifications made
by this subtitle to the low-income housing tax credit under section 42 of the
Internal Revenue Code of 1986. Such report shall include an analysis of the
distribution of credit allocations before and after the effective date of such
modifications.</text>
</subsection><subsection id="H0FFECB5340094387BB1772493E114622"><enum>(i)</enum><header>Effective date</header>
<paragraph id="HEEC43722BD12439D9724CFE2129F51BF"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to buildings placed in service
after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H5E41A5BFCA4940628121817B2F9BEDB1"><enum>(2)</enum><header>Repeal of bonding
requirement on disposition of building</header><text>The amendment made by
subsection (c) shall apply to—</text>
<subparagraph id="H937BD3C8F4EE4D92006D79E29330BB21"><enum>(A)</enum><text>interests in buildings
disposed after the date of the enactment of this Act, and</text>
</subparagraph><subparagraph id="H223878B19093451F982D82C3DFAB0000"><enum>(B)</enum><text>interests in buildings
disposed of on or before such date if—</text>
<clause id="HBFD6F1D4903E49FAB027E7D000BDC912"><enum>(i)</enum><text>it is reasonably expected
that such building will continue to be operated as a qualified low-income
building (within the meaning of section 42 of the Internal Revenue Code of
1986) for the remaining compliance period (within the meaning of such section)
with respect to such building, and</text>
</clause><clause id="H328E896981CB475085DBC5055937044B"><enum>(ii)</enum><text>the taxpayer elects the
application of this subparagraph with respect to such disposition.</text>
</clause></subparagraph></paragraph><paragraph id="HACEEA1276E7D421D96999D1FA34DE82B"><enum>(3)</enum><header>Energy efficiency and
historic nature taken into account in making allocations</header><text>The
amendments made by subsection (d) shall apply to allocations made after
December 31, 2008.</text>
</paragraph><paragraph id="H2468E96340A64AFCABAAC34CBA1EC05D"><enum>(4)</enum><header>Continued eligibility
for students who received foster care assistance</header><text>The amendments
made by subsection (e) shall apply to determinations made after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="HAA407515712A4E39B229B1C33CD6BF6B"><enum>(5)</enum><header>Treatment of rural
projects</header><text>The amendment made by subsection (f) shall apply to
determinations made after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H8207C4173D584F19BA9D9F004ED20300"><enum>(6)</enum><header>Clarification of
general public use requirement</header><text>The amendment made by subsection
(g) shall apply to buildings placed in service before, on, or after the date of
the enactment of this Act.</text>
</paragraph></subsection></section><section id="idF87A064140F94CADBC5EE2538678245F"><enum>3005.</enum><header>Treatment of military
basic pay</header>
<subsection id="idBD92E4389DF54087B3F5479411495996"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 142(d)(2) (relating to income of individuals; area median gross income)
is amended—</text>
<paragraph id="idFC02C4A4C3A44709807C6D596098A1AA"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>The income</quote> and
inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF637A6F9E2EB42DD98BFAD7FD696E77E" reported-display-style="italic" style="OLC">
<clause id="id7AC866C7110647AC94A84F21FB32A1C7"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">The
income</text>
</clause><after-quoted-block>, and
</after-quoted-block></quoted-block>
</paragraph><paragraph id="idD30510F1A7D1478CB4188451E98153A2"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id19194E71657C4A24A6509549E8BA1390" reported-display-style="italic" style="OLC">
<clause id="id047643F31194455392CB2C87B3BA6DDE"><enum>(ii)</enum><header>Special rule relating
to basic housing allowances</header><text>For purposes of determining income
under this subparagraph, payments under <external-xref legal-doc="usc" parsable-cite="usc/37/403">section 403</external-xref> of title 37, United States
Code, as a basic pay allowance for housing shall be disregarded with respect to
any qualified building.</text>
</clause><clause id="id44812F1CAA364DD08EEF2812105BF639"><enum>(iii)</enum><header>Qualified
building</header><text display-inline="yes-display-inline">For purposes of
clause (ii), the term <term>qualified building</term> means any building
located—</text>
<subclause id="id4A086485D52B474EBA8D53F80648A014"><enum>(I)</enum><text display-inline="yes-display-inline">in any county in which is located a
qualified military installation to which the number of members of the Armed
Forces of the United States assigned to units based out of such qualified
military installation, as of June 1, 2008, has increased by not less than 20
percent, as compared to such number on December 31, 2005, or</text>
</subclause><subclause id="id0E8A4574285A4CAC9A56693726D76CAA"><enum>(II)</enum><text>in any county adjacent
to a county described in subclause (I).</text>
</subclause></clause><clause id="id3DC4D83DF49B4178B0A3EBD0E4AFB427"><enum>(iv)</enum><header>Qualified military
installation</header><text>For purposes of clause (iii), the term
<term>qualified military installation</term> means any military installation or
facility the number of members of the Armed Forces of the United States
assigned to which, as of June 1, 2008, is not less than
1,000.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idDB8B18ACD4564FE395D8713AF85C04A8"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to—</text>
<paragraph id="id7066915F2CF043638DC4A2E750792FA0"><enum>(1)</enum><text>determinations made after
the date of the enactment of this Act and before January 1, 2012, in the case
of any qualified building (as defined in section 142(d)(2)(B)(iii) of the
Internal Revenue Code of 1986)—</text>
<subparagraph id="id3B4E31B5C96D48858B6BBBBC6D2F1385"><enum>(A)</enum><text>with respect to which
housing credit dollar amounts have been allocated before the date of the
enactment of this Act, or</text>
</subparagraph><subparagraph id="id90F4DA0697124F8D81A78D317034D101"><enum>(B)</enum><text>with respect to buildings
placed in service before such date of enactment, to the extent paragraph (1) of
section 42(h) of such Code does not apply to such building by reason of
paragraph (4) thereof, but only with respect to bonds issued before such date
of enactment, and</text>
</subparagraph></paragraph><paragraph id="id08FCB35A1B9946FCBC954D7E529DBEF3"><enum>(2)</enum><text>determinations made after
the date of enactment of this Act, in the case of qualified buildings (as so
defined)—</text>
<subparagraph id="id8F0E00C8A6784000A47B3BB1ED8872DC"><enum>(A)</enum><text>with respect to which
housing credit dollar amounts are allocated after the date of the enactment of
this Act and before January 1, 2012, or</text>
</subparagraph><subparagraph id="idFFBEC16E5A754E0693376C449FAED06F"><enum>(B)</enum><text>with respect to which
buildings placed in service after the date of enactment of this Act and before
January 1, 2012, to the extent paragraph (1) of section 42(h) of such Code does
not apply to such building by reason of paragraph (4) thereof, but only with
respect to bonds issued after such date of enactment and before January 1,
2012.</text>
</subparagraph></paragraph></subsection></section></part><part id="H163CE5D3958044189463C62FF7C14199"><enum>II</enum><header>Modifications to
tax-exempt housing bond rules</header>
<section commented="no" id="H44952D7DF3284FBD91A228A81C2BCB5F"><enum>3007.</enum><header>Recycling of
tax-exempt debt for financing residential rental projects</header>
<subsection commented="no" id="H8F4DEBB259C34E0A95B3E5C0A1E3763E"><enum>(a)</enum><header>In
general</header><text>Subsection (i) of section 146 (relating to treatment of
refunding issues) is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H155F907CE0EE408EBB349D3BBE26AD95" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="H7B46B792A43347829CF4A03FAACCB26C"><enum>(6)</enum><header>Treatment of certain
residential rental project bonds as refunding bonds irrespective of
obligor</header>
<subparagraph commented="no" id="H1A6897197DD54BFC8063B7B438FA3263"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">If, during the
6-month period beginning on the date of a repayment of a loan financed by an
issue 95 percent or more of the net proceeds of which are used to provide
projects described in section 142(d), such repayment is used to provide a new
loan for any project so described, any bond which is issued to refinance such
issue shall be treated as a refunding issue to the extent the principal amount
of such refunding issue does not exceed the principal amount of the bonds
refunded.</text>
</subparagraph><subparagraph commented="no" id="HC8AB07649ECC40D0A481D87C634CEDD1"><enum>(B)</enum><header>Limitations</header><text>Subparagraph
(A) shall apply to only one refunding of the original issue and only if—</text>
<clause commented="no" id="H085DE7B81445464A92437919DA006051"><enum>(i)</enum><text>the refunding issue is
issued not later than 4 years after the date on which the original issue was
issued,</text>
</clause><clause commented="no" id="H5346509B41DB4148BAC404EAB9C51F7D"><enum>(ii)</enum><text>the latest maturity date
of any bond of the refunding issue is not later than 34 years after the date on
which the refunded bond was issued, and</text>
</clause><clause commented="no" id="HFFC971EED8AE47F6B20402B34C76735D"><enum>(iii)</enum><text>the refunding issue is
approved in accordance with section 147(f) before the issuance of the refunding
issue.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HF441272AEA744EC8A454D4E0F0ED764E"><enum>(b)</enum><header>Low-income housing
credit</header><text>Clause (ii) of section 42(h)(4)(A) is amended by inserting
<quote>or such financing is refunded as described in section 146(i)(6)</quote>
before the period at the end.</text>
</subsection><subsection commented="no" id="H831E66B33D0D410E91FA37258A1935D"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
repayments of loans received after the date of the enactment of this
Act.</text>
</subsection></section><section id="H5D90AA3892A0433CA638311C7B5EA57B"><enum>3008.</enum><header>Coordination of
certain rules applicable to low-income housing credit and qualified residential
rental project exempt facility bonds</header>
<subsection id="HC7DC6C2224BB492385D9DC04A01ED5F1"><enum>(a)</enum><header>Determination of next
available unit</header><text>Paragraph (3) of section 142(d) (relating to
current income determinations) is amended by adding at the end the following
new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H02AB788694944CC5B3EC00EBFA832B48" reported-display-style="italic" style="OLC">
<subparagraph id="H47D8464C5399412DAAE8CE84B75423E4"><enum>(C)</enum><header>Exception for projects
with respect to which affordable housing credit is allowed</header><text>In the
case of a project with respect to which credit is allowed under section 42, the
second sentence of subparagraph (B) shall be applied by substituting
<quote>building (within the meaning of section 42)</quote> for
<quote>project</quote>.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H62614F663D884C89BAD0FA2D50510930"><enum>(b)</enum><header>Students</header><text>Paragraph
(2) of section 142(d) (relating to definitions and special rules) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB81604C3C44F48FBA3E824B30000943D" reported-display-style="italic" style="OLC">
<subparagraph id="H788C386379F84974815B00D45C32BBC5"><enum>(C)</enum><header>Students</header><text display-inline="yes-display-inline">Rules similar to the rules of 42(i)(3)(D)
shall apply for purposes of this
subsection.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5130C282096043359CEBC023A994CE6"><enum>(c)</enum><header>Single-room occupancy
units</header><text display-inline="yes-display-inline">Paragraph (2) of
section 142(d) (relating to definitions and special rules), as amended by
subsection (b), is amended by adding at the end the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HFBF87E45D2434698A241D168135B6401" reported-display-style="italic" style="OLC">
<subparagraph id="HC7127A2D741443CBABA5D771F3E51330"><enum>(D)</enum><header>Single-room occupancy
units</header><text display-inline="yes-display-inline">A unit shall not fail
to be treated as a residential unit merely because such unit is a single-room
occupancy unit (within the meaning of section
42).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5553D1E3A20147D5A82CB19B00E2F2ED"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
determinations of the status of qualified residential rental projects for
periods beginning after the date of the enactment of this Act, with respect to
bonds issued before, on, or after such date.</text>
</subsection></section></part><part id="H707042302EB84FA5B809127DCEC3598"><enum>III</enum><header>Reforms related to the
low-income housing credit and tax-exempt housing bonds</header>
<section display-inline="no-display-inline" id="H1A678FA8329E48E58415DE426407331D" section-type="subsequent-section"><enum>3009.</enum><header>Hold harmless for
reductions in area median gross income</header>
<subsection id="HFA5CD5F03502475192E0C8C556D0733C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 142(d), as amended by section 3008, is amended by adding at the end the
following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H68241C36986A4348A0A1376559B16B4" reported-display-style="italic" style="OLC">
<subparagraph id="H7E006081AB8A40FA86143CBB368C099E"><enum>(E)</enum><header>Hold harmless for
reductions in area median gross income</header>
<clause id="HDB9D497183F84FB0AE75D870E22B339"><enum>(i)</enum><header>In
general</header><text>Any determination of area median gross income under
subparagraph (B) with respect to any project for any calendar year after 2008
shall not be less than the area median gross income determined under such
subparagraph with respect to such project for the calendar year preceding the
calendar year for which such determination is made.</text>
</clause><clause id="H5C0060B3DFDB4479AA14193E40BE0C2"><enum>(ii)</enum><header>Special rule for
certain census changes</header><text>In the case of a HUD hold harmless
impacted project, the area median gross income with respect to such project for
any calendar year after 2008 (hereafter in this clause referred to as the
current calendar year) shall be the greater of the amount determined without
regard to this clause or the sum of—</text>
<subclause id="H6E63D54D07FC4E0CAE9BBA7878EE912"><enum>(I)</enum><text>the area median gross
income determined under the HUD hold harmless policy with respect to such
project for calendar year 2008, plus</text>
</subclause><subclause id="H01C97FFB736045038765D6E98BECBE3C"><enum>(II)</enum><text>any increase in the area
median gross income determined under subparagraph (B) (determined without
regard to the HUD hold harmless policy and this subparagraph) with respect to
such project for the current calendar year over the area median gross income
(as so determined) with respect to such project for calendar year 2008.</text>
</subclause></clause><clause id="HBD399153DD434003B38C43C0B90018B"><enum>(iii)</enum><header>HUD hold harmless
policy</header><text>The term <term>HUD hold harmless policy</term> means the
regulations under which a policy similar to the rules of clause (i) applied to
prevent a change in the method of determining area median gross income from
resulting in a reduction in the area median gross income determined with
respect to certain projects in calendar years 2007 and 2008.</text>
</clause><clause id="HBB45C9AAABF044DC8FC953E578C3767E"><enum>(iv)</enum><header>HUD hold harmless
impacted project</header><text>The term <term>HUD hold harmless impacted
project</term> means any project with respect to which area median gross income
was determined under subparagraph (B) for calendar year 2007 or 2008 if such
determination would have been less but for the HUD hold harmless
policy.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H854EB1D42A8E4520B3BC56FE72F0B8C1"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
determinations of area median gross income for calendar years after
2008.</text>
</subsection></section><section id="H6AB0AFAFA9B64E33B66FF226A4B40062"><enum>3010.</enum><header>Exception to annual
current income determination requirement where determination not
relevant</header>
<subsection id="H62C3E5610499403890DF197EC07F5D23"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 142(d)(3) is amended by adding at the end the following new sentence:
<quote>The preceding sentence shall not apply with respect to any project for
any year if during such year no residential unit in the project is occupied by
a new resident whose income exceeds the applicable income
limit.</quote>.</text>
</subsection><subsection id="H0442DE963A604706B3C65E3EBF23A84E"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to years
ending after the date of the enactment of this Act.</text>
</subsection></section></part></subtitle><subtitle id="H9F1C09636D89409C87DE96ECE607774"><enum>B</enum><header>Single family
housing</header>
<section display-inline="no-display-inline" id="H043F8B0CAC244F5ABCF2E30065F10199" section-type="subsequent-section"><enum>3011.</enum><header>First-time
homebuyer credit</header>
<subsection id="H868410ACCA6F482783A67DA63FDDFD41"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart C of part IV
of subchapter A of chapter 1 is amended by redesignating section 36 as section
37 and by inserting after section 35 the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1BCBCE5F33BE45FB0068340059485508" reported-display-style="italic" style="OLC">
<section id="H688B2FDD83DC44268666AC73FCC088CE"><enum>36.</enum><header>First-time homebuyer
credit</header>
<subsection id="HDD0DAC0E29C14A7897F8449FD00B123"><enum>(a)</enum><header>Allowance of
credit</header><text display-inline="yes-display-inline">In the case of an
individual who is a first-time homebuyer of a principal residence in the United
States during a taxable year, there shall be allowed as a credit against the
tax imposed by this subtitle for such taxable year an amount equal to 10
percent of the purchase price of the residence.</text>
</subsection><subsection id="HB74A7C7A35B6467083DF8270F8127BA"><enum>(b)</enum><header>Limitations</header>
<paragraph id="H2556BAB2871E4E4A8D25D9C95DDAF22"><enum>(1)</enum><header>Dollar
limitation</header>
<subparagraph id="H9A0AA73F026B4F19A2E316F3F1658319"><enum>(A)</enum><header>In
general</header><text>Except as otherwise provided in this paragraph, the
credit allowed under subsection (a) shall not exceed $8,000.</text>
</subparagraph><subparagraph id="H76DF7C81294D41369B8EF3A63BBC8C1"><enum>(B)</enum><header>Married individuals
filing separately</header><text display-inline="yes-display-inline">In the case
of a married individual filing a separate return, subparagraph (A) shall be
applied by substituting <quote>$4,000</quote> for <quote>$8,000</quote>.</text>
</subparagraph><subparagraph id="HAC9B46458F164560AC7088B800FA6930"><enum>(C)</enum><header>Other
individuals</header><text display-inline="yes-display-inline">If two or more
individuals who are not married purchase a principal residence, the amount of
the credit allowed under subsection (a) shall be allocated among such
individuals in such manner as the Secretary may prescribe, except that the
total amount of the credits allowed to all such individuals shall not exceed
$8,000.</text>
</subparagraph></paragraph><paragraph id="H8B755650947E47828F4CEC92A5356C1C"><enum>(2)</enum><header>Limitation based on
modified adjusted gross income</header>
<subparagraph id="HFCE180D780EF47688571FE74FEE3A231"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The amount allowable
as a credit under subsection (a) (determined without regard to this paragraph)
for the taxable year shall be reduced (but not below zero) by the amount which
bears the same ratio to the amount which is so allowable as—</text>
<clause id="H23CA2C517AF048168473FAA077F261BF"><enum>(i)</enum><text>the excess (if any)
of—</text>
<subclause id="HCB6ECFA04D02410995E8639951F9B1ED"><enum>(I)</enum><text display-inline="yes-display-inline">the taxpayer’s modified adjusted gross
income for such taxable year, over</text>
</subclause><subclause id="HE83CDBEFBA614B52B9F4E1A58D4B004"><enum>(II)</enum><text display-inline="yes-display-inline">$75,000 ($150,000 in the case of a joint
return), bears to</text>
</subclause></clause><clause id="H850FD8A36D124ED58ECA12D53298BF7F"><enum>(ii)</enum><text display-inline="yes-display-inline">$20,000.</text>
</clause></subparagraph><subparagraph id="H4386DC341BB74834B7B8538C84751CD8"><enum>(B)</enum><header>Modified adjusted gross
income</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), the term <term>modified adjusted gross income</term> means
the adjusted gross income of the taxpayer for the taxable year increased by any
amount excluded from gross income under section 911, 931, or 933.</text>
</subparagraph></paragraph></subsection><subsection id="HC5AB8476AB6A4B709D6687025281C448"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H0E4CB58B03FC4C3EBA53B05BE4F6EDE9"><enum>(1)</enum><header>First-time
homebuyer</header><text display-inline="yes-display-inline">The term
<term>first-time homebuyer</term> means any individual if such individual (and
if married, such individual's spouse) had no present ownership interest in a
principal residence during the 3-year period ending on the date of the purchase
of the principal residence to which this section applies.</text>
</paragraph><paragraph id="HD3042F2CDFEE44F8BDDBE85FDFDEB9BE"><enum>(2)</enum><header>Principal
residence</header><text display-inline="yes-display-inline">The term
<term>principal residence</term> has the same meaning as when used in section
121.</text>
</paragraph><paragraph id="H4FB0D36511B1435B8E349004C4E2CC8C"><enum>(3)</enum><header>Purchase</header>
<subparagraph id="HC109858A72954039BA86DCAA8548F171"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>purchase</term> means any acquisition, but only if—</text>
<clause id="H7B7E3F9DB5DD400E972D7797745CA4E1"><enum>(i)</enum><text>the property is not
acquired from a person related to the person acquiring it, and</text>
</clause><clause id="HB8DD407DEC2D485288A3AF25E00004D4"><enum>(ii)</enum><text>the basis of the
property in the hands of the person acquiring it is not determined—</text>
<subclause id="H1E53A6848C2042B5A8ABDE07E9CEC3B5"><enum>(I)</enum><text>in whole or in part by
reference to the adjusted basis of such property in the hands of the person
from whom acquired, or</text>
</subclause><subclause id="H92426107DF764513885E077E9C605470"><enum>(II)</enum><text>under section 1014(a)
(relating to property acquired from a decedent).</text>
</subclause></clause></subparagraph><subparagraph id="HF714622F9EA047D8B2FE173441E00531"><enum>(B)</enum><header>Construction</header><text display-inline="yes-display-inline">A residence which is constructed by the
taxpayer shall be treated as purchased by the taxpayer on the date the taxpayer
first occupies such residence.</text>
</subparagraph></paragraph><paragraph id="H6AB2E568ECB74EA99BCBBC5DDB5C400"><enum>(4)</enum><header>Purchase
price</header><text display-inline="yes-display-inline">The term <term>purchase
price</term> means the adjusted basis of the principal residence on the date
such residence is purchased.</text>
</paragraph><paragraph id="HC9283C749D27453BB0ABF9A917D0E147"><enum>(5)</enum><header>Related
persons</header><text display-inline="yes-display-inline">A person shall be
treated as related to another person if the relationship between such persons
would result in the disallowance of losses under section 267 or 707(b) (but, in
applying section 267(b) and (c) for purposes of this section, paragraph (4) of
section 267(c) shall be treated as providing that the family of an individual
shall include only his spouse, ancestors, and lineal descendants).</text>
</paragraph></subsection><subsection id="H8A3631D961034FA0AAFD6D3D3007632B"><enum>(d)</enum><header>Exceptions</header><text display-inline="yes-display-inline">No credit under subsection (a) shall be
allowed to any taxpayer for any taxable year with respect to the purchase of a
residence if—</text>
<paragraph id="H4144D0304FB745A9B299703248EFB6B"><enum>(1)</enum><text>a credit under section
1400C (relating to first-time homebuyer in the District of Columbia) is
allowable to the taxpayer (or the taxpayer’s spouse) for such taxable year or
any prior taxable year,</text>
</paragraph><paragraph id="H2A034E25C52441B28C51DB53D77C4289"><enum>(2)</enum><text>the residence is financed
by the proceeds of a qualified mortgage issue the interest on which is exempt
from tax under section 103,</text>
</paragraph><paragraph id="HB25DD4BBBAF04B78B36BCDFD339A83"><enum>(3)</enum><text>the taxpayer is a
nonresident alien, or</text>
</paragraph><paragraph id="HEAED3880E5BA4E3087B4DC81AEECCC78"><enum>(4)</enum><text display-inline="yes-display-inline">the taxpayer disposes of such residence (or
such residence ceases to be the principal residence of the taxpayer (and, if
married, the taxpayer’s spouse)) before the close of such taxable year.</text>
</paragraph></subsection><subsection id="H04C810769F60493785E4DBA754D59A8"><enum>(e)</enum><header>Reporting</header><text display-inline="yes-display-inline">If the Secretary requires information
reporting under section 6045 by a person described in subsection (e)(2) thereof
to verify the eligibility of taxpayers for the credit allowable by this
section, the exception provided by section 6045(e) shall not apply.</text>
</subsection><subsection id="H9CBFB92CBEBF432197AAAB4C1B3C181D"><enum>(f)</enum><header>Recapture of
credit</header>
<paragraph id="H3648A0A2534E4CD6AB98E9C7F666D10"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as otherwise
provided in this subsection, if a credit under subsection (a) is allowed to a
taxpayer, the tax imposed by this chapter shall be increased by
6<fraction>2/3</fraction> percent of the amount of such credit for each taxable
year in the recapture period.</text>
</paragraph><paragraph id="HD13FB0E60EE74FBEAACA93F708CEFC27"><enum>(2)</enum><header>Acceleration of
recapture</header><text display-inline="yes-display-inline">If a taxpayer
disposes of the principal residence with respect to which a credit was allowed
under subsection (a) (or such residence ceases to be the principal residence of
the taxpayer (and, if married, the taxpayer’s spouse)) before the end of the
recapture period—</text>
<subparagraph id="HA587C05FCEBC4443A36C938244EA7AA"><enum>(A)</enum><text>the tax imposed by this
chapter for the taxable year of such disposition or cessation, shall be
increased by the excess of the amount of the credit allowed over the amounts of
tax imposed by paragraph (1) for preceding taxable years, and</text>
</subparagraph><subparagraph id="H5C88F04F62124BB79452759692C9585B"><enum>(B)</enum><text>paragraph (1) shall not
apply with respect to such credit for such taxable year or any subsequent
taxable year.</text>
</subparagraph></paragraph><paragraph id="HFA7463996B5746898C0401CB27EE7EFA"><enum>(3)</enum><header>Limitation based on
gain</header><text display-inline="yes-display-inline">In the case of the sale
of the principal residence to a person who is not related to the taxpayer, the
increase in tax determined under paragraph (2) shall not exceed the amount of
gain (if any) on such sale. Solely for purposes of the preceding sentence, the
adjusted basis of such residence shall be reduced by the amount of the credit
allowed under subsection (a) to the extent not previously recaptured under
paragraph (1).</text>
</paragraph><paragraph id="HBD376A234A6C40559B3DA4A5377E2424"><enum>(4)</enum><header>Exceptions</header>
<subparagraph id="H391B79ECC3874728A49000E96C0109B8"><enum>(A)</enum><header>Death of
taxpayer</header><text>Paragraphs (1) and (2) shall not apply to any taxable
year ending after the date of the taxpayer’s death.</text>
</subparagraph><subparagraph id="H68975E37413E452688258B5099E03FE3"><enum>(B)</enum><header>Involuntary
conversion</header><text display-inline="yes-display-inline">Paragraph (2)
shall not apply in the case of a residence which is compulsorily or
involuntarily converted (within the meaning of section 1033(a)) if the taxpayer
acquires a new principal residence during the 2-year period beginning on the
date of the disposition or cessation referred to in paragraph (2). Paragraph
(2) shall apply to such new principal residence during the recapture period in
the same manner as if such new principal residence were the converted
residence.</text>
</subparagraph><subparagraph id="H68E035A17053412D9340BBB000827F00"><enum>(C)</enum><header>Transfers between
spouses or incident to divorce</header><text>In the case of a transfer of a
residence to which section 1041(a) applies—</text>
<clause id="H327A158E76D74A0EA853B9ED3DE0BC5B"><enum>(i)</enum><text>paragraph (2) shall not
apply to such transfer, and</text>
</clause><clause id="HC7630F3CF25743AE9DF7A4CCAAC7C149"><enum>(ii)</enum><text>in the case of taxable
years ending after such transfer, paragraphs (1) and (2) shall apply to the
transferee in the same manner as if such transferee were the transferor (and
shall not apply to the transferor).</text>
</clause></subparagraph></paragraph><paragraph id="HC6AAC56DF9BB4760B06518764BCA826B"><enum>(5)</enum><header>Joint
returns</header><text display-inline="yes-display-inline">In the case of a
credit allowed under subsection (a) with respect to a joint return, half of
such credit shall be treated as having been allowed to each individual filing
such return for purposes of this subsection.</text>
</paragraph><paragraph id="H99E4E3A399E6418D88CBBACA28745B00"><enum>(6)</enum><header>Recapture
period</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <term>recapture period</term> means the 15 taxable years
beginning with the second taxable year following the taxable year in which the
purchase of the principal residence for which a credit is allowed under
subsection (a) was made.</text>
</paragraph></subsection><subsection id="HB92D2AB023864F278D9EBD5FCEFF038D"><enum>(g)</enum><header>Application of
section</header><text display-inline="yes-display-inline">This section shall
only apply to a principal residence purchased by the taxpayer on or after April
9, 2008, and before April 1,
2009.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3DE00CD40EFC4E6386B3F076A3246815"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H39E588C2019C4A7193CAEA6EFA526F4B"><enum>(1)</enum><text>Section 26(b)(2) is
amended by striking <quote>and</quote> at the end of subparagraph (U), by
striking the period and inserting <quote>, and</quote> and the end of
subparagraph (V), and by inserting after subparagraph (V) the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H67BDEEA0A2BE48A4BD5DA8A07C9471A0" reported-display-style="italic" style="OLC">
<subparagraph id="H2B1FBE465D8546509FCEB2DA9598379"><enum>(W)</enum><text display-inline="yes-display-inline">section 36(f) (relating to recapture of
homebuyer
credit).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H83C533B2431848CE00FA9E0061173E7B"><enum>(2)</enum><text>Section 6211(b)(4)(A) is
amended by striking <quote>34,</quote> and all that follows through
<quote>6428</quote> and inserting <quote>34, 35, 36, 53(e), and
6428</quote>.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HF3E243F5D89A4A6DB5424F5F0117AE5C"><enum>(3)</enum><text>Section 1324(b)(2) of
title 31, United States Code, is amended by inserting <quote>, 36,</quote>
after <quote>section 35</quote>.</text>
</paragraph><paragraph id="H702B9507BD3F46228F81B7D78FA389DD"><enum>(4)</enum><text display-inline="yes-display-inline">The table of sections for subpart C of part
IV of subchapter A of chapter 1 is amended by redesignating the item relating
to section 36 as an item relating to section 37 and by inserting before such
item the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H66404A4394A84670B5F8D015FC812051" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H1BCBCE5F33BE45FB0068340059485508" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry idref="H688B2FDD83DC44268666AC73FCC088CE" level="section">Sec. 36. First-time homebuyer
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HFABC28B2BF3B4E7AAF7CAD3ED1281D1"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to residences purchased on or after April 9, 2008, in
taxable years ending on or after such date.</text>
</subsection></section><section display-inline="no-display-inline" id="H918E8BAB346D4204AE277C485B474B4B" section-type="subsequent-section"><enum>3012.</enum><header>Additional standard
deduction for real property taxes for nonitemizers</header>
<subsection id="HC7551C3F0FA141B398A1D9AFDE8B826D"><enum>(a)</enum><header>In
general</header><text>Section 63(c)(1) (defining standard deduction) is amended
by striking <quote>and</quote> at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting <quote>, and</quote>, and
by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" id="HCA03248B35B54C1EA95CB0A500A8ABC" reported-display-style="italic">
<subparagraph id="HE3A02224CC2A4C6E90BA38E8B7611505"><enum>(C)</enum><text>in the case of any
taxable year beginning in 2008, the real property tax
deduction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6563524F98FC49E8989B3F038C88DDFC"><enum>(b)</enum><header>Definition</header><text>Section
63(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" id="HB6ECF0F3298847C69838001142F6A76" reported-display-style="italic">
<paragraph id="H8A452C671AD0451CAE6ECC839CCC4C04"><enum>(8)</enum><header>Real property tax
deduction</header>
<subparagraph id="id2355E38B52D34B76B068215CAA0B7F13"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the real property tax deduction is the lesser of—</text>
<clause id="H3A879035269D4F6E9DD627FB485517CA"><enum>(i)</enum><text>the amount allowable as a
deduction under this chapter for State and local taxes described in section
164(a)(1), or</text>
</clause><clause id="H2384330151F54C34AA29992221665872"><enum>(ii)</enum><text>$500 ($1,000 in the case
of a joint return).</text>
</clause><continuation-text continuation-text-level="subparagraph">Any taxes taken into account under
section 62(a) shall not be taken into account under this paragraph.</continuation-text></subparagraph><subparagraph id="id296DBA09F156486A8F15065E66E4F0AF"><enum>(B)</enum><header>Exception</header><text>The
real property tax deduction shall not be allowed in the case of a taxpayer
living in a jurisdiction in which the rate of tax for all residential real
property taxes is increased, net of any tax rebates, through rate increases or
the repeal or reduction of otherwise applicable deductions, credits, or
offsets, at any time after the date of the enactment of this paragraph and
before December 31, 2008. This subparagraph shall not apply in the case of a
jurisdiction in which the rate of tax for all residential real property taxes
is increased pursuant to an equalization policy in effect before the date of
the enactment of this paragraph or as a result of any votes of the residents of
such jurisdiction to increase funding for pre-school, primary, secondary, or
higher
education.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H57D95436CD2A4ADE85F5E3E49ED60055"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section></subtitle><subtitle id="HA2E36E1944E64F9D91F4AA3858BDE41D"><enum>C</enum><header>General
provisions</header>
<section display-inline="no-display-inline" id="H47069F56D6994F9EBC2D4F69A945FA2" section-type="subsequent-section"><enum>3021.</enum><header>Temporary
liberalization of tax-exempt housing bond rules</header>
<subsection id="HE9752A3DED734E15002DD0E3AF2556F0"><enum>(a)</enum><header>Temporary increase in
volume cap</header>
<paragraph id="H13C9F12D7B434CE089F2DAF43B893CB5"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 146 is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HD49D30289442456FA0301E0018A6D527" reported-display-style="italic" style="OLC">
<paragraph id="H0474762BCA1046658B6C00909E6798A8"><enum>(5)</enum><header>Increase and set aside
for housing bonds for 2008</header>
<subparagraph id="H248D8F372484402FAB9328BBEBD51817"><enum>(A)</enum><header>Increase for
2008</header><text>In the case of calendar year 2008, the State ceiling for
each State shall be increased by an amount equal to $11,000,000,000 multiplied
by a fraction—</text>
<clause id="H0C08CFAEDFC24877BC623F04B6A8AC73"><enum>(i)</enum><text>the numerator of which is
the State ceiling applicable to the State for calendar year 2008, determined
without regard to this paragraph, and</text>
</clause><clause id="HC3A60FAE835B40B184E0DDCD947C58"><enum>(ii)</enum><text>the denominator of which
is the sum of the State ceilings determined under clause (i) for all
States.</text>
</clause></subparagraph><subparagraph id="H16BA234984EA4246B18F580059FFC72D"><enum>(B)</enum><header>Set aside</header>
<clause id="HECAC0F843F194E39886ED9F076CD122"><enum>(i)</enum><header>In
general</header><text>Any amount of the State ceiling for any State which is
attributable to an increase under this paragraph shall be allocated solely for
one or more qualified housing issues.</text>
</clause><clause id="HAADD41BD6C9844DD8F00183DC9ACEB60"><enum>(ii)</enum><header>Qualified housing
issue</header><text>For purposes of this paragraph, the term <term>qualified
housing issue</term> means—</text>
<subclause id="HC4E133A8E5244E3FB29F1000CEE8AE48"><enum>(I)</enum><text>an issue described in
section 142(a)(7) (relating to qualified residential rental projects),
or</text>
</subclause><subclause id="HD507AFDC80DE49DEABE006FEB82608F4"><enum>(II)</enum><text>a qualified mortgage
issue (determined by substituting <quote>12-month period</quote> for
<quote>42-month period</quote> each place it appears in section
143(a)(2)(D)(i)).</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1B9090FBCC73454D982B37ED96F97060"><enum>(2)</enum><header>Carryforward of unused
limitations</header><text>Subsection (f) of section 146 is amended by adding at
the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9689E122E460401BABC6524150A5DC60" reported-display-style="italic" style="OLC">
<paragraph id="H9AA2A6011B0D458A95AF08E1AFAA82CD"><enum>(6)</enum><header>Special rules for
increased volume cap under subsection
<enum-in-header>(d)(5)</enum-in-header></header><text>No amount which is
attributable to the increase under subsection (d)(5) may be used—</text>
<subparagraph id="H583F240F4E174B66955032559CA574D0"><enum>(A)</enum><text>for any issue other than
a qualified housing issue (as defined in subsection (d)(5)), or</text>
</subparagraph><subparagraph id="H60FAB15311DF4A4F919116D454461DDB"><enum>(B)</enum><text>to issue any bond after
calendar year
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HED34F829B62441CE86F2065201514ED1"><enum>(b)</enum><header>Temporary rule for use
of qualified mortgage bonds proceeds for subprime refinancing loans</header>
<paragraph id="HEBF926757C454D48BA465C4793C4A827"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 143(k)
(relating to other definitions and special rules) is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6D7718ABDFF74C958BCBFEC184F95159" reported-display-style="italic" style="OLC">
<paragraph id="H173B9DDA7B4244328DAFE942E792851B"><enum>(12)</enum><header>Special rules for
subprime refinancings</header>
<subparagraph id="H06C0D1B394424CA4A4099EDE2DD87653"><enum>(A)</enum><header>In
general</header><text>Notwithstanding the requirements of subsection (i)(1),
the proceeds of a qualified mortgage issue may be used to refinance a mortgage
on a residence which was originally financed by the mortgagor through a
qualified subprime loan.</text>
</subparagraph><subparagraph id="H73FC6F182A0A4B1FACDF4FB6AE53D69F"><enum>(B)</enum><header>Special
rules</header><text>In applying subparagraph (A) to any refinancing—</text>
<clause id="HC7BBEB506F9F4230A6708CB5A43CBEC1"><enum>(i)</enum><text>subsection (a)(2)(D)(i)
shall be applied by substituting <quote>12-month period</quote> for
<quote>42-month period</quote> each place it appears,</text>
</clause><clause id="HE786B71ABA594CBA9FD65CB8DBEC5B0"><enum>(ii)</enum><text>subsection (d) (relating
to 3-year requirement) shall not apply, and</text>
</clause><clause id="H8FA3B08B9FC146249F4B6CE803E0AF74"><enum>(iii)</enum><text>subsection (e)
(relating to purchase price requirement) shall be applied by using the market
value of the residence at the time of refinancing in lieu of the acquisition
cost.</text>
</clause></subparagraph><subparagraph id="H2F3487E51D6D43DB00BA2170885DF653"><enum>(C)</enum><header>Qualified subprime
loan</header><text>The term <term>qualified subprime loan</term> means an
adjustable rate single-family residential mortgage loan made after December 31,
2001, and before January 1, 2008, that the bond issuer determines would be
reasonably likely to cause financial hardship to the borrower if not
refinanced.</text>
</subparagraph><subparagraph id="H7BDCD76DB0A04466BC5DD359E2FC0860"><enum>(D)</enum><header>Termination</header><text>This
paragraph shall not apply to any bonds issued after December 31,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB0CDB2F671F64C12A997E70560E12717"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="HE03F1C7F5B024AFC8E096EC194ADCB65"><enum>3022.</enum><header>Repeal of alternative
minimum tax limitations on tax-exempt housing bonds, low-income housing tax
credit, and rehabilitation credit</header>
<subsection id="HFEB9E55D05D744EFB11DE9A38743F7BE"><enum>(a)</enum><header>Tax-exempt interest on
certain housing bonds exempted from alternative minimum tax</header>
<paragraph id="H8865AFCE614A40ABB39518775933ABC6"><enum>(1)</enum><header>In
general</header><text>Subparagraph (C) of section 57(a)(5) (relating to
specified private activity bonds) is amended by redesignating clauses (iii) and
(iv) as clauses (iv) and (v), respectively, and by inserting after clause (ii)
the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1C951DE8D1B44651AFFAFE1ED1C8582" reported-display-style="italic" style="OLC">
<clause id="HD81E8D0ABB234CB6B435C05EA7D16F42"><enum>(iii)</enum><header>Exception for certain
housing bonds</header><text>For purposes of clause (i), the term <term>private
activity bond</term> shall not include any bond issued after the date of the
enactment of this clause if such bond is—</text>
<subclause id="HBE5A5E6535564548A1C8727918116FFC"><enum>(I)</enum><text>an exempt facility bond
issued as part of an issue 95 percent or more of the net proceeds of which are
to be used to provide qualified residential rental projects (as defined in
section 142(d)),</text>
</subclause><subclause id="H609F6B18A5BB4895806754A6DC4769D7"><enum>(II)</enum><text display-inline="yes-display-inline">a qualified mortgage bond (as defined in
section 143(a)), or</text>
</subclause><subclause id="H5B80BAF0F7934152B5634FE524C32950"><enum>(III)</enum><text display-inline="yes-display-inline">a qualified veterans’ mortgage bond (as
defined in section 143(b)).</text>
</subclause><continuation-text continuation-text-level="clause">The preceding sentence shall not apply to
any refunding bond unless such preceding sentence applied to the refunded bond
(or in the case of a series of refundings, the original
bond).</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA35646E164F54EDEA693D8B0415DFF5"><enum>(2)</enum><header>No adjustment to
adjusted current earnings</header><text>Subparagraph (B) of section 56(g)(4) is
amended by adding at the end the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H62C8D99E698A4E09BDE5556D5D001149" reported-display-style="italic" style="OLC">
<clause id="HD06678BF33804E528023D4C601DDC16"><enum>(iii)</enum><header>Tax exempt interest
on certain housing bonds</header><text display-inline="yes-display-inline">Clause (i) shall not apply in the case of
any interest on a bond to which section 57(a)(5)(C)(iii)
applies.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H329E2347C8C0402483E46F87767DE520"><enum>(b)</enum><header>Allowance of low-income
housing credit against alternative minimum tax</header><text display-inline="yes-display-inline">Subparagraph (B) of section 38(c)(4)
(relating to specified credits) is amended by redesignating clauses (ii)
through (iv) as clauses (iii) through (v) and inserting after clause (i) the
following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H3E14378B737445E7894D51E611FABD96" reported-display-style="italic" style="OLC">
<clause id="H6905E21960EE4878ADBDA6E8649F3BBE"><enum>(ii)</enum><text>the credit determined
under section 42 to the extent attributable to buildings placed in service
after December 31,
2007,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC82E13AEE1E2483C8E22144800050457"><enum>(c)</enum><header>Allowance of
rehabilitation credit against alternative minimum
tax</header><text>Subparagraph (B) of section 38(c)(4), as amended by
subsection (b), is amended by striking <quote>and</quote> at the end of clause
(iv), by redesignating clause (v) as clause (vi), and by inserting after clause
(iv) the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF53FFF4409334AF4AE7EB8397CDCD3A3" reported-display-style="italic" style="OLC">
<clause id="H1AC7F46DD2714181A307D79396BA9F57"><enum>(v)</enum><text display-inline="yes-display-inline">the credit determined under section 47 to
the extent attributable to qualified rehabilitation expenditures properly taken
into account for periods after December 31, 2007,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H576A5BBACEE74F5E83834BBFB06DDF73"><enum>(d)</enum><header>Effective date</header>
<paragraph id="HF6CA2E08E5FD4256B4D226CAF1120417"><enum>(1)</enum><header>Housing
bonds</header><text display-inline="yes-display-inline">The amendments made by
subsection (a) shall apply to bonds issued after the date of the enactment of
this Act.</text>
</paragraph><paragraph commented="no" id="H63E2B49146B44F1987F63399C2A02F7E"><enum>(2)</enum><header>Low income housing
credit</header><text display-inline="yes-display-inline">The amendments made by
subsection (b) shall apply to credits determined under section 42 of the
Internal Revenue Code of 1986 to the extent attributable to buildings placed in
service after December 31, 2007.</text>
</paragraph><paragraph id="H623D06DB090145F5A9468DFED14B8C1C"><enum>(3)</enum><header>Rehabilitation
credit</header><text display-inline="yes-display-inline">The amendments made by
subsection (c) shall apply to credits determined under section 47 of the
Internal Revenue Code of 1986 to the extent attributable to qualified
rehabilitation expenditures properly taken into account for periods after
December 31, 2007.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HB253F2C9A70F486E81DDCF9B400161E" section-type="subsequent-section"><enum>3023.</enum><header>Bonds guaranteed by
Federal home loan banks eligible for treatment as tax-exempt bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="H9B36DBFF044540E786F42D757FD7C5C"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 149(b)(3) (relating to
exceptions for certain insurance programs) is amended by striking
<quote>or</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, or</quote> and by adding at the end the
following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1B0ADFFAF72C425BBBCE80042A547EA" reported-display-style="italic" style="OLC">
<clause commented="no" id="H6B0D76BC368E471E8B1C90A5690067F2"><enum>(iv)</enum><text display-inline="yes-display-inline">subject to subparagraph (E), any guarantee
by a Federal home loan bank made in connection with the original issuance of a
bond during the period beginning on the date of the enactment of this clause
and ending on December 31, 2010 (or a renewal or extension of a guarantee so
made).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA72AB7E32AFA4EC5AECE61F1429F8B26"><enum>(b)</enum><header>Safety and soundness
requirements</header><text>Paragraph (3) of section 149(b) is amended by adding
at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H49DAD50180114EA186DE2931E40036A2" reported-display-style="italic" style="OLC">
<subparagraph id="HF4521B758AED4C5C87971CC121012857"><enum>(E)</enum><header>Safety and soundness
requirements for Federal home loan banks</header><text display-inline="yes-display-inline">Clause (iv) of subparagraph (A) shall not
apply to any guarantee by a Federal home loan bank unless such bank meets
safety and soundness collateral requirements for such guarantees which are at
least as stringent as such requirements which apply under regulations
applicable to such guarantees by Federal home loan banks as in effect on April
9,
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HFA566E5DD71D4D45B789E157F5204F00"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
guarantees made after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HD70940888F84498F87E32FD6DE65B3AD" section-type="subsequent-section"><enum>3024.</enum><header>Modification of
rules pertaining to FIRPTA nonforeign affidavits</header>
<subsection id="H663547F55D68456ABCCF9DFFF570A2CC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (b) of
section 1445 (relating to exemptions) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H62B4BEE2D1DE4AC6A46C592757E01949" reported-display-style="italic" style="OLC">
<paragraph id="H1433BBF2F4EA40458D04B6E9007013FC"><enum>(9)</enum><header>Alternative procedure
for furnishing nonforeign affidavit</header><text>For purposes of paragraphs
(2) and (7)—</text>
<subparagraph id="H14C75CFE7A9D4580900099F5CB3FADCD"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) shall
be treated as applying to a transaction if, in connection with a disposition of
a United States real property interest—</text>
<clause id="HC22F682FC20D4C1EA2D4A9FD00D840E6"><enum>(i)</enum><text display-inline="yes-display-inline">the affidavit specified in paragraph (2) is
furnished to a qualified substitute, and</text>
</clause><clause id="HC1B5E99E24FB4E5C94B657AD6F7801D1"><enum>(ii)</enum><text display-inline="yes-display-inline">the qualified substitute furnishes a
statement to the transferee stating, under penalty of perjury, that the
qualified substitute has such affidavit in his possession.</text>
</clause></subparagraph><subparagraph id="H61BBA10058AE461DA7E5E8C4F6262DB3"><enum>(B)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out this
paragraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id90F27D4C46F94CDA96B284D77216812A"><enum>(b)</enum><header>Qualified
substitute</header><text display-inline="yes-display-inline">Subsection (f) of
section 1445 (relating to definitions) is amended by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBD9EC9886B2F4F339DFB94A4B63943E0" reported-display-style="italic" style="OLC">
<paragraph id="HCB1B85C139194F50A4F9C46C7E1EA96"><enum>(6)</enum><header>Qualified
substitute</header><text>The term <term>qualified substitute</term> means, with
respect to a disposition of a United States real property interest—</text>
<subparagraph id="H2092EAA7BA4042648FF9809B9E5BC9C1"><enum>(A)</enum><text display-inline="yes-display-inline">the person (including any attorney or title
company) responsible for closing the transaction, other than the transferor’s
agent, and</text>
</subparagraph><subparagraph id="H8E1CE1FFAC9847E79B3CE6C043CE0985"><enum>(B)</enum><text display-inline="yes-display-inline">the transferee’s
agent.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H356B66BA5BD34B42844F3E7B31B5C900"><enum>(c)</enum><header>Exemption not To apply
if knowledge or notice that affidavit or statement is false</header>
<paragraph id="HF1D0AA176EEE47DCAAF1DE2E61DBDEC4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (7) of
section 1445(b) (relating to special rules for paragraphs (2) and (3)) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB19350DF499246B300AB96FE4D40CAA8" reported-display-style="italic" style="OLC">
<paragraph id="HB047E6AF32EE4179BF6E8424D1911491"><enum>(7)</enum><header>Special rules for
paragraphs (2), (3), and (9)</header><text display-inline="yes-display-inline">Paragraph (2), (3), or (9) (as the case may
be) shall not apply to any disposition—</text>
<subparagraph id="H06B5B918AA9D49D5838170CAAAD1148"><enum>(A)</enum><text>if—</text>
<clause id="HA0E82683C006490A9370CD5BC0C99FB7"><enum>(i)</enum><text display-inline="yes-display-inline">the transferee or qualified substitute has
actual knowledge that the affidavit referred to in such paragraph, or the
statement referred to in paragraph (9)(A)(ii), is false, or</text>
</clause><clause id="H4BEA4CF11B4E408389B3EFBB81C17EEE"><enum>(ii)</enum><text display-inline="yes-display-inline">the transferee or qualified substitute
receives a notice (as described in subsection (d)) from a transferor’s agent,
transferee’s agent, or qualified substitute that such affidavit or statement is
false, or</text>
</clause></subparagraph><subparagraph id="H99B86274A6414C788EC3FDAB5E6DCF1"><enum>(B)</enum><text display-inline="yes-display-inline">if the Secretary by regulations requires
the transferee or qualified substitute to furnish a copy of such affidavit or
statement to the Secretary and the transferee or qualified substitute fails to
furnish a copy of such affidavit or statement to the Secretary at such time and
in such manner as required by such
regulations.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1F3B4813D9B84CAF9C2E85E586BBDB6D"><enum>(2)</enum><header>Liability</header>
<subparagraph id="H2AB53C49FBDA42B8B800040427E800DA"><enum>(A)</enum><header>Notice</header><text display-inline="yes-display-inline">Paragraph (1) of section 1445(d) (relating
to notice of false affidavit; foreign corporations) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H14A455435A6345AABDFB76F60646B17E" reported-display-style="italic" style="OLC">
<paragraph id="H3E9D7E1329E4491EABCB297134393B95"><enum>(1)</enum><header>Notice of false
affidavit; foreign corporations</header><text display-inline="yes-display-inline">If—</text>
<subparagraph id="HD78BC0566EBF467785DAAFF2E088DE47"><enum>(A)</enum><text>the transferor furnishes
the transferee or qualified substitute an affidavit described in paragraph (2)
of subsection (b) or a domestic corporation furnishes the transferee an
affidavit described in paragraph (3) of subsection (b), and</text>
</subparagraph><subparagraph id="H24F0EC7A191A473BB6E75885AD008C17"><enum>(B)</enum><text>in the case of—</text>
<clause id="HF78F1721BB744D31A1568B53F36D5043"><enum>(i)</enum><text>any transferor’s
agent—</text>
<subclause id="HAAC9D503226F430DAB3CA1A683C366C"><enum>(I)</enum><text>such agent has actual
knowledge that such affidavit is false, or</text>
</subclause><subclause id="H78FBDE14A7B4478D84E3DB7BC3C8830"><enum>(II)</enum><text>in the case of an
affidavit described in subsection (b)(2) furnished by a corporation, such
corporation is a foreign corporation, or</text>
</subclause></clause><clause id="H8EE16A9E78294CEFBBD91F8259BFEB55"><enum>(ii)</enum><text display-inline="yes-display-inline">any transferee’s agent or qualified
substitute, such agent or substitute has actual knowledge that such affidavit
is false,</text>
</clause><continuation-text continuation-text-level="subparagraph">such agent or qualified substitute shall
so notify the transferee at such time and in such manner as the Secretary shall
require by
regulations.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HB7C814712E584647940372FB30EC268F"><enum>(B)</enum><header>Failure to furnish
notice</header><text display-inline="yes-display-inline">Paragraph (2) of
section 1445(d) (relating to failure to furnish notice) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0916909F5D18498083DB1176FA432348" reported-display-style="italic" style="traditional">
<paragraph id="H341A9B3AD8E54F6DBCA584A7DF133057"><enum>(2)</enum><header>Failure to furnish
notice</header>
<subparagraph id="HF7E2B5CEC8CD4EBA847B00AD99E3CD49"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">If any transferor’s
agent, transferee’s agent, or qualified substitute is required by paragraph (1)
to furnish notice, but fails to furnish such notice at such time or times and
in such manner as may be required by regulations, such agent or substitute
shall have the same duty to deduct and withhold that the transferee would have
had if such agent or substitute had complied with paragraph (1).</text>
</subparagraph><subparagraph id="HEB63EE6B6A5D4AD1A7A9263BCB5C225"><enum>(B)</enum><header>Liability limited to
amount of compensation</header><text display-inline="yes-display-inline">An
agent’s or substitute’s liability under subparagraph (A) shall be limited to
the amount of compensation the agent or substitute derives from the
transaction.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H49D41BB852E247E5AE454594F5098C15"><enum>(C)</enum><header>Conforming
amendment</header><text>The heading for section 1445(d) is amended by striking
<quote><header-in-text level="subsection" style="OLC">or transferee’s
agents</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">, transferee’s agents, or qualified
substitutes</header-in-text></quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H25E38DC60A674C67A07E05545929504D"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
dispositions of United States real property interests after the date of the
enactment of this Act.</text>
</subsection></section><section id="H3A1410F2E98C4A489BF82623EB2B0731"><enum>3025.</enum><header>Modification of
definition of tax-exempt use property for purposes of the rehabilitation
credit</header>
<subsection id="H0B2B6CDBFDDC494C0090713ED970BEE6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subclause (I) of
section 47(c)(2)(B)(v) is amended by striking <quote>section 168(h)</quote> and
inserting <quote>section 168(h), except that <quote>50 percent</quote> shall be
substituted for <quote>35 percent</quote> in paragraph (1)(B)(iii) thereof
</quote>.</text>
</subsection><subsection id="HBE985BE114D94EFEB98195FD1233F7DA"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to expenditures properly taken into account for
periods after December 31, 2007.</text>
</subsection></section><section id="idA61136D4B692442E83F8AC1F393D9667"><enum>3026.</enum><header>Extension of special
rule for mortgage revenue bonds for residences located in disaster
areas</header>
<subsection id="id1ADD919D7B8B4E94B59C8242402249E7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (11) of
section 143(k) is amended—</text>
<paragraph id="id052D2DD9D5584557959AE63C33FB1E20"><enum>(1)</enum><text>by striking
<quote>December 31, 1996</quote> and inserting <quote>May 1, 2008</quote>,
and</text>
</paragraph><paragraph id="id1710403F7A7B461BA4BF8D5E95D23018"><enum>(2)</enum><text>by striking
<quote>January 1, 1999</quote> and inserting <quote>January 1,
2010</quote>.</text>
</paragraph></subsection><subsection id="id9E8EED53AE29447AB55ECE037FB837BD"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after May 1, 2008.</text>
</subsection></section></subtitle><enum>II</enum><header>Reforms related to real
estate investment trusts</header>
<subtitle commented="no" id="id41DFE90611E949D3A43427AF1973ACEB"><enum>A</enum><header>Foreign currency and
other qualified activities</header>
<section commented="no" id="id2831120F2532446F86EDC19A4AF0030E"><enum>3031.</enum><header>Revisions to REIT
income tests</header>
<subsection commented="no" id="idDAFF60D2C3D24595B543B0BD196F53A4"><enum>(a)</enum><header>Foreign currency gains
not gross income in applying REIT income tests</header><text display-inline="yes-display-inline">Section 856 (defining real estate
investment trust) is amended by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id235C74920D66450E8B092268F4DC23CD" reported-display-style="italic" style="OLC">
<subsection commented="no" id="idB598955FCBAC4D7FA16CF928580A98FB"><enum>(n)</enum><header>Rules regarding foreign
currency transactions</header>
<paragraph commented="no" id="idE730AEA703714A1D8A1EEAD03965FE1B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
part—</text>
<subparagraph commented="no" id="id87FE5B28E81140A59D37B4F7F85AD238"><enum>(A)</enum><text display-inline="yes-display-inline">passive foreign exchange gain for any
taxable year shall not constitute gross income for purposes of subsection
(c)(2), and</text>
</subparagraph><subparagraph commented="no" id="id4CA4E8BB4F0A46DD8B987C1609C35BE3"><enum>(B)</enum><text>real estate foreign
exchange gain for any taxable year shall not constitute gross income for
purposes of subsection (c)(3).</text>
</subparagraph></paragraph><paragraph commented="no" id="id636F123F68C54BFE8452D5E4FF22E798"><enum>(2)</enum><header>Real estate foreign
exchange gain</header><text display-inline="yes-display-inline">For purposes of
this subsection, the term <term>real estate foreign exchange gain</term>
means—</text>
<subparagraph commented="no" id="idDD075102413D4CDF8F11B1E23A700337"><enum>(A)</enum><text display-inline="yes-display-inline">foreign currency gain (as defined in
section 988(b)(1)) which is attributable to—</text>
<clause commented="no" id="id2FCA5FFDD68647A2A7293B6CB6BADA0F"><enum>(i)</enum><text display-inline="yes-display-inline">any item of income or gain described in
subsection (c)(3),</text>
</clause><clause commented="no" id="idB7C72CC3717E41DC97394C55ED6892B7"><enum>(ii)</enum><text display-inline="yes-display-inline">the acquisition or ownership of obligations
secured by mortgages on real property or on interests in real property (other
than foreign currency gain attributable to any item of income or gain described
in clause (i)), or</text>
</clause><clause commented="no" id="id8A58126E4A8A490D9B73C109B0775284"><enum>(iii)</enum><text display-inline="yes-display-inline">becoming or being the obligor under
obligations secured by mortgages on real property or on interests in real
property (other than foreign currency gain attributable to any item of income
or gain described in clause (i)),</text>
</clause></subparagraph><subparagraph commented="no" id="idFF3B544254124871B2EDE5AA83488A82"><enum>(B)</enum><text display-inline="yes-display-inline">section 987 gain attributable to a
qualified business unit (as defined by section 989) of the real estate
investment trust, but only if such qualified business unit meets the
requirements under—</text>
<clause commented="no" id="idADF989950B344AF2B2C4A5E638113EB5"><enum>(i)</enum><text display-inline="yes-display-inline">subsection (c)(3) for the taxable year,
and</text>
</clause><clause commented="no" id="id829AF1E123A548D38502EEA02D8F8212"><enum>(ii)</enum><text display-inline="yes-display-inline">subsection (c)(4)(A) at the close of each
quarter that the real estate investment trust has directly or indirectly held
the qualified business unit, and</text>
</clause></subparagraph><subparagraph commented="no" id="id344A00EB8B6942539570E86EF1B366CE"><enum>(C)</enum><text display-inline="yes-display-inline">any other foreign currency gain as
determined by the Secretary.</text>
</subparagraph></paragraph><paragraph commented="no" id="id5D29420A3FA24365AADB1B26F2CA17EB"><enum>(3)</enum><header>Passive foreign
exchange gain</header><text display-inline="yes-display-inline">For purposes of
this subsection, the term <term>passive foreign exchange gain</term>
means—</text>
<subparagraph commented="no" id="idDF854497C028466AAB39E337759F823D"><enum>(A)</enum><text display-inline="yes-display-inline">real estate foreign exchange gain,</text>
</subparagraph><subparagraph commented="no" id="id6F83974FCFA94BFE93F02F9B678E0B4E"><enum>(B)</enum><text display-inline="yes-display-inline">foreign currency gain (as defined in
section 988(b)(1)) which is not described in subparagraph (A) and which is
attributable to—</text>
<clause commented="no" id="idF6E2A37035D9444791E54DC51EEB542B"><enum>(i)</enum><text display-inline="yes-display-inline">any item of income or gain described in
subsection (c)(2),</text>
</clause><clause commented="no" id="idE9159B12996E4B80A8CDA65D52ADA014"><enum>(ii)</enum><text display-inline="yes-display-inline">the acquisition or ownership of obligations
(other than foreign currency gain attributable to any item of income or gain
described in clause (i)), or</text>
</clause><clause commented="no" id="idFEE06072F3BA41D2AC4AECE9C7B43E26"><enum>(iii)</enum><text display-inline="yes-display-inline">becoming or being the obligor under
obligations (other than foreign currency gain attributable to any item of
income or gain described in clause (i)), and</text>
</clause></subparagraph><subparagraph commented="no" id="id4272E74E40AB4253AD2591E9E112353B"><enum>(C)</enum><text display-inline="yes-display-inline">any other foreign currency gain as
determined by the Secretary.</text>
</subparagraph></paragraph><paragraph commented="no" id="idB24C3DAE3FCB4503AD1AEA721B03BF8B"><enum>(4)</enum><header>Exception for income
from substantial and regular trading</header><text display-inline="yes-display-inline">Notwithstanding this subsection or any
other provision of this part, any section 988 gain derived by a corporation,
trust, or association from engaging in substantial and regular trading or
dealing in securities (as defined in section 475(c)(2)) shall constitute gross
income which does not qualify under paragraph (2) or (3) of subsection (c).
This paragraph shall not apply to income which does not constitute gross income
by reason of subsection
(c)(5)(G).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id17D467DA9F5E4A70B66566E51395CFE0"><enum>(b)</enum><header>Addition to REIT
hedging rule</header><text display-inline="yes-display-inline">Subparagraph (G)
of section 856(c)(5) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDE9D9968D5624B3A9C9D7DF458462DB0" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="idC1945AB6FAA4481EB0C77D8B9E739BC5"><enum>(G)</enum><header>Treatment of certain
hedging instruments</header><text display-inline="yes-display-inline">Except to
the extent as determined by the Secretary—</text>
<clause commented="no" id="id2D9C91C485914572A405CEF372098EB6"><enum>(i)</enum><text display-inline="yes-display-inline">any income of a real estate investment
trust from a hedging transaction (as defined in clause (ii) or (iii) of section
1221(b)(2)(A)) which is clearly identified pursuant to section 1221(a)(7),
including gain from the sale or disposition of such a transaction, shall not
constitute gross income under paragraphs (2) and (3) to the extent that the
transaction hedges any indebtedness incurred or to be incurred by the trust to
acquire or carry real estate assets, and</text>
</clause><clause commented="no" id="id96435A0CC29E4901865B3017366A08B1"><enum>(ii)</enum><text display-inline="yes-display-inline">any income of a real estate investment
trust from a transaction entered into by the trust primarily to manage risk of
currency fluctuations with respect to any item of income or gain described in
paragraph (2) or (3) (or any property which generates such income or gain),
including gain from the termination of such a transaction, shall not constitute
gross income under paragraphs (2) and (3), but only if such transaction is
clearly identified as such before the close of the day on which it was
acquired, originated, or entered into (or such other time as the Secretary may
prescribe).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id1E186F34193145078EB5DDB82D40252E"><enum>(c)</enum><header>Authority To exclude
items of income from REIT income tests</header><text display-inline="yes-display-inline">Section 856(c)(5), as amended by the
Heartland, Habitat, Harvest, and Horticulture Act of 2008, is amended by adding
at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idEFCC77EFE7F8406188DEE39F41062A7F" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="id1F1726E5196D4011BEB82B65215E2E52"><enum>(J)</enum><header>Secretarial authority
to exclude other items of income</header><text display-inline="yes-display-inline">To the extent necessary to carry out the
purposes of this part, the Secretary is authorized to determine, solely for
purposes of this part, whether any item of income or gain which—</text>
<clause commented="no" id="id0291A2AB9E184447ABAD0494127E1D9D"><enum>(i)</enum><text display-inline="yes-display-inline">does not otherwise qualify under paragraph
(2) or (3) may be considered as not constituting gross income, or</text>
</clause><clause commented="no" id="idD68CB79AFE3B468EA5194DD8BA2FF6A1"><enum>(ii)</enum><text display-inline="yes-display-inline">otherwise constitutes gross income not
qualifying under paragraph (2) or (3) may be considered as gross income which
qualifies under paragraph (2) or
(3).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="id344DD6960CA14947B3AB5E9BBE763038"><enum>3032.</enum><header>Revisions to REIT
asset tests</header>
<subsection commented="no" id="id1DE3ACE23C234AF0BFFBFF49054D1619"><enum>(a)</enum><header>Clarification of
valuation test</header><text display-inline="yes-display-inline">The first
sentence in the matter following section 856(c)(4)(B)(iii)(III) is amended by
inserting <quote>(including a discrepancy caused solely by the change in the
foreign currency exchange rate used to value a foreign asset)</quote> after
<quote>such requirements</quote>.</text>
</subsection><subsection commented="no" id="id6D6CD9288BA84186B82F4AA634437004"><enum>(b)</enum><header>Clarification of
permissible asset category</header><text display-inline="yes-display-inline">Section 856(c)(5), as amended by section
3031(c), is amended by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDE48EC5D14FD46D88C0C4D6DE3E6C6ED" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="id681C4125556C4FE78E871D095ACE28B8"><enum>(K)</enum><header>Cash</header><text display-inline="yes-display-inline">If the real estate investment trust or its
qualified business unit (as defined in section 989) uses any foreign currency
as its functional currency (as defined in section 985(b)), the term
<term>cash</term> includes such foreign currency but only to the extent such
foreign currency—</text>
<clause commented="no" id="id3C1531906E9945D0960B57F0A7761470"><enum>(i)</enum><text display-inline="yes-display-inline">is held for use in the normal course of the
activities of the trust or qualified business unit which give rise to items of
income or gain described in paragraph (2) or (3) of subsection (c) or are
directly related to acquiring or holding assets described in subsection (c)(4),
and</text>
</clause><clause commented="no" id="id11C42941403548EC9A3F4FBE1B11BC5A"><enum>(ii)</enum><text display-inline="yes-display-inline">is not held in connection with an activity
described in subsection
(n)(4).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" id="id7F740485E728470CA6FB04235B8FFDC1"><enum>3033.</enum><header>Conforming foreign
currency revisions</header>
<subsection commented="no" id="id813B445C90234F7F90EFEEEFF8A91CC1"><enum>(a)</enum><header>Net income from
foreclosure property</header><text display-inline="yes-display-inline">Clause
(i) of section 857(b)(4)(B) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id942FA6E318CB4934A613F5D84FF44DBB" reported-display-style="italic" style="OLC">
<clause commented="no" id="id45A2D29FA201401099533731FF4FFFCA"><enum>(i)</enum><text display-inline="yes-display-inline">gain (including any foreign currency gain,
as defined in section 988(b)(1)) from the sale or other disposition of
foreclosure property described in section 1221(a)(1) and the gross income for
the taxable year derived from foreclosure property (as defined in section
856(e)), but only to the extent such gross income is not described in (or, in
the case of foreign currency gain, not attributable to gross income described
in) section 856(c)(3) other than subparagraph (F) thereof,
over</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id4F30A438515D46DEB2F58AD0F52BD0C7"><enum>(b)</enum><header>Net income from
prohibited transactions</header><text display-inline="yes-display-inline">Clause (i) of section 857(b)(6)(B) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id3D268EFECBB94ADFA9461FF47ADC5C02" reported-display-style="italic" style="OLC">
<clause commented="no" id="id98F7633FE4B340FF8E8B63CDCF9D264B"><enum>(i)</enum><text display-inline="yes-display-inline">the term <term>net income derived from
prohibited transactions</term> means the excess of the gain (including any
foreign currency gain, as defined in section 988(b)(1)) from prohibited
transactions over the deductions (including any foreign currency loss, as
defined in section 988(b)(2)) allowed by this chapter which are directly
connected with prohibited
transactions;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle commented="no" id="H01BC86F3ABC64DE9ABA79CF78180ABB4"><enum>B</enum><header>Taxable REIT
subsidiaries</header>
<section id="H9984702471D64249B615F2A2EFEC0393"><enum>3041.</enum><header>Conforming taxable
REIT subsidiary asset test</header><text display-inline="no-display-inline">Section 856(c)(4)(B)(ii) is amended—</text>
<paragraph id="H2AF3CF7DC4BB4F128C22F543B1BFA731"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>20 percent</quote> and
inserting <quote>25 percent</quote>, and</text>
</paragraph><paragraph id="H520617AED90E496BB1BBCF96A92F535B"><enum>(2)</enum><text>by striking <quote>REIT
subsidiaries</quote> and all that follows, and inserting <quote>REIT
subsidiaries,</quote>.</text>
</paragraph></section></subtitle><subtitle id="HB14929EF833B4337A43D1BE7FCDC11D7"><enum>C</enum><header>Dealer sales</header>
<section id="H0566998ECE1D4414B35D6570FEA46CB"><enum>3051.</enum><header>Holding period under
safe harbor</header><text display-inline="no-display-inline">Section 857(b)(6)
(relating to income from prohibited transactions) is amended—</text>
<paragraph id="H06347F93A4EB46FFAADCD049EC1E444D"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>4 years</quote> in
subparagraphs (C)(i), (C)(iv), and (D)(i) and inserting <quote>2
years</quote>,</text>
</paragraph><paragraph id="HEECEC7AC75494AF39E4F726B3E09DB6B"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>4-year period</quote> in
subparagraphs (C)(ii), (D)(ii), and (D)(iii) and inserting <quote>2-year
period</quote>, and</text>
</paragraph><paragraph id="H0AF259AEF12442538F03D4307F6C1E06"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>real estate
asset</quote>and all that follows through <quote>if</quote> in the matter
preceding clause (i) of subparagraphs (C) and (D), respectively, and inserting
<quote>real estate asset (as defined in section 856(c)(5)(B)) and which is
described in section 1221(a)(1) if</quote>.</text>
</paragraph></section><section id="HDCA9A17003C4442C99A06B374984FC25"><enum>3052.</enum><header>Determining value of
sales under safe harbor</header><text display-inline="no-display-inline">Section 857(b)(6) is amended—</text>
<paragraph id="H247C387BC77142678781F2B08FA43034"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the semicolon at the end of
subparagraph (C)(iii) and inserting <quote>, or (III) the fair market value of
property (other than sales of foreclosure property or sales to which section
1033 applies) sold during the taxable year does not exceed 10 percent of the
fair market value of all of the assets of the trust as of the beginning of the
taxable year;</quote>, and</text>
</paragraph><paragraph id="H8404375168C84DF081E09EB44BFA2F00"><enum>(2)</enum><text display-inline="yes-display-inline">by adding <quote>or</quote> at the end of
subclause (II) of subparagraph (D)(iv) and by adding at the end of such
subparagraph the following new subclause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HFD8F8EB46CCF49B5B0AD6E577AFD739" reported-display-style="italic" style="OLC">
<subclause id="HCE16F65F9A9940159D00205CFA333EF1" indent="up1"><enum>(III)</enum><text>the
fair market value of property (other than sales of foreclosure property or
sales to which section 1033 applies) sold during the taxable year does not
exceed 10 percent of the fair market value of all of the assets of the trust as
of the beginning of the taxable
year,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="HB0EA2535C4634D4DBCBEEBA8446B23F0"><enum>D</enum><header>Health care
REITs</header>
<section id="H74BCF2043278489BAE024DC74664723F"><enum>3061.</enum><header>Conformity for health
care facilities</header>
<subsection id="H7C59A24EE1E84A26804249A5C4896607"><enum>(a)</enum><header>Related party
rentals</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 856(d)(8) (relating to special rule for taxable REIT subsidiaries) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6212C68AC8334DD9814146F3FEF2800" reported-display-style="italic" style="OLC">
<subparagraph id="HE976A8E36A004705A53FBD45B941291F"><enum>(B)</enum><header>Exception for certain
lodging facilities and health care property</header><text display-inline="yes-display-inline">The requirements of this subparagraph are
met with respect to an interest in real property which is a qualified lodging
facility (as defined in paragraph (9)(D)) or a qualified health care property
(as defined in subsection (e)(6)(D)(i)) leased by the trust to a taxable REIT
subsidiary of the trust if the property is operated on behalf of such
subsidiary by a person who is an eligible independent contractor. For purposes
of this section, a taxable REIT subsidiary is not considered to be operating or
managing a qualified health care property or qualified lodging facility solely
because it—</text>
<clause id="idC1439EA0EA35437DA18ED41F626ED66A"><enum>(i)</enum><text display-inline="yes-display-inline">directly or indirectly possesses a license,
permit, or similar instrument enabling it to do so, or</text>
</clause><clause id="ID7a96ce7ed63e40fa81515dd366148ff8"><enum>(ii)</enum><text>employs individuals
working at such facility or property located outside the United States, but
only if an eligible independent contractor is responsible for the daily
supervision and direction of such individuals on behalf of the taxable REIT
subsidiary pursuant to a management agreement or similar service
contract.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD906A18CA02646F7AA9103B5C705BCEC"><enum>(b)</enum><header>Eligible independent
contractor</header><text display-inline="yes-display-inline">Subparagraphs (A)
and (B) of section 856(d)(9) (relating to eligible independent contractor) are
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H76AE74DC9C5C4B16A9D67EF507B771D" reported-display-style="italic" style="OLC">
<subparagraph id="HD721A28EF99F4668B40080C0824BEFAD"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>eligible independent contractor</term> means, with respect to any
qualified lodging facility or qualified health care property (as defined in
subsection (e)(6)(D)(i)), any independent contractor if, at the time such
contractor enters into a management agreement or other similar service contract
with the taxable REIT subsidiary to operate such qualified lodging facility or
qualified health care property, such contractor (or any related person) is
actively engaged in the trade or business of operating qualified lodging
facilities or qualified health care properties, respectively, for any person
who is not a related person with respect to the real estate investment trust or
the taxable REIT subsidiary.</text>
</subparagraph><subparagraph id="H4B9A010CA52A4A9294372728D187B317"><enum>(B)</enum><header>Special
rules</header><text display-inline="yes-display-inline">Solely for purposes of
this paragraph and paragraph (8)(B), a person shall not fail to be treated as
an independent contractor with respect to any qualified lodging facility or
qualified health care property (as so defined) by reason of the
following:</text>
<clause id="HBB44CD49CF91452F8D11331D51CAEDB"><enum>(i)</enum><text display-inline="yes-display-inline">The taxable REIT subsidiary bears the
expenses for the operation of such qualified lodging facility or qualified
health care property pursuant to the management agreement or other similar
service contract.</text>
</clause><clause id="HC2A2D134D2464546A6BB0409D0CAC300"><enum>(ii)</enum><text display-inline="yes-display-inline">The taxable REIT subsidiary receives the
revenues from the operation of such qualified lodging facility or qualified
health care property, net of expenses for such operation and fees payable to
the operator pursuant to such agreement or contract.</text>
</clause><clause id="HB59F38BB9A854E21BE4E43E701351BC3"><enum>(iii)</enum><text display-inline="yes-display-inline">The real estate investment trust receives
income from such person with respect to another property that is attributable
to a lease of such other property to such person that was in effect as of the
later of—</text>
<subclause id="H76E57287F17543E597F41243BB8D50FB"><enum>(I)</enum><text display-inline="yes-display-inline">January 1, 1999, or</text>
</subclause><subclause id="H59C62FAB78D04DE48FD78673BDF92E75"><enum>(II)</enum><text display-inline="yes-display-inline">the earliest date that any taxable REIT
subsidiary of such trust entered into a management agreement or other similar
service contract with such person with respect to such qualified lodging
facility or qualified health care
property.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8384D5A6FEEB4E86BF974987027CABCD"><enum>(c)</enum><header>Taxable reit
subsidiaries</header><text>The last sentence of section 856(l)(3) is
amended—</text>
<paragraph id="HFFEB6F50FA7D4CEB8B1F01E67731297D"><enum>(1)</enum><text>by inserting <quote>or a
health care facility</quote> after <quote>a lodging facility</quote>,
and</text>
</paragraph><paragraph id="HB845F8FA0A9C4AA7A9D1E20020D7C180"><enum>(2)</enum><text>by inserting <quote>or
health care facility</quote> after <quote>such lodging facility</quote>.</text>
</paragraph></subsection></section></subtitle><subtitle id="HDF6CE9A4C8A04816B163420437B39F62"><enum>E</enum><header>Effective dates</header>
<section id="H1AF5CD5A01364C358BA1434DF6D0E11C"><enum>3071.</enum><header>Effective
dates</header>
<subsection id="H61227555D81A42B8BBC2041EDDE8E8D2"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as otherwise
provided in this section, the amendments made by this title shall apply to
taxable years beginning after the date of the enactment of this Act.</text>
</subsection><subsection id="HFC96D6D4919E48A6A137241400CFEF03"><enum>(b)</enum><header>REIT income
tests</header>
<paragraph commented="no" id="H3245578A8A9C41B0885B246FFDAB7268"><enum>(1)</enum><text display-inline="yes-display-inline">The amendments made by section 3031(a) and
(c) shall apply to gains and items of income recognized after the date of the
enactment of this Act.</text>
</paragraph><paragraph commented="no" id="H5501B431C1DC42E7AE007F2800A9A3E7"><enum>(2)</enum><text>The amendment made by
section 3031(b) shall apply to transactions entered into after the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection id="HBE6EDD00FB1C412FB8CBC8F0C2037458"><enum>(c)</enum><header>Conforming foreign
currency revisions</header>
<paragraph id="HC7C7404CE68648BC00956755A09B3DCD"><enum>(1)</enum><text>The amendment made by
section 3033(a) shall apply to gains recognized after the date of the enactment
of this Act.</text>
</paragraph><paragraph id="H0B66023F08C44169BFCB216CDC7304E"><enum>(2)</enum><text>The amendment made by
section 3033(b) shall apply to gains and deductions recognized after the date
of the enactment of this Act.</text>
</paragraph></subsection><subsection id="H0EFB7ECA23444E73B8BAF2B5008F69A"><enum>(d)</enum><header>Dealer
sales</header><text>The amendments made by subtitle C shall apply to sales made
after the date of the enactment of this Act.</text>
</subsection></section></subtitle><enum>III</enum><header>Revenue
provisions</header>
<subtitle id="HE3706AEF2A524205B54743DD41A2CD56"><enum>A</enum><header>General
provisions</header>
<section id="HB73E1577B1AC444F93C33FE41CE2287C"><enum>3081.</enum><header>Election to
accelerate amt and r and d credits in lieu of bonus depreciation</header>
<subsection id="H4985306010DD42F9BBF004F1955C12CA"><enum>(a)</enum><header>In
general</header><text>Section 168(k) is amended by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H7B39F97168AB436ABA10501526F81100" reported-display-style="italic" style="OLC">
<paragraph id="H18656690D62E40DCBA8D2DAEDC89ADC"><enum>(4)</enum><header>Election to accelerate
amt and r and d credits in lieu of bonus depreciation</header>
<subparagraph id="H55FC0481305848E8BD160077C028B243"><enum>(A)</enum><header>In
general</header><text>If a corporation elects to have this paragraph
apply—</text>
<clause id="H4898B576BD3749D1895BD1D34D08E4F5"><enum>(i)</enum><text>no additional
depreciation shall be allowed under paragraph (1) for any eligible qualified
property placed in service during any taxable year to which paragraph (1) would
otherwise apply,</text>
</clause><clause commented="no" id="HD3C89C9CAE614C34B82BC86B00EF8448"><enum>(ii)</enum><text>the applicable
depreciation method used under this section with respect to such eligible
qualified property shall be the straight line method rather than the method
that would otherwise be used, and</text>
</clause><clause id="H8CEBB48CD6514E4CAE34DE6940F0090"><enum>(iii)</enum><text>the limitations
described in subparagraph (B) for such taxable year shall be increased by an
aggregate amount not in excess of the bonus depreciation amount for such
taxable year.</text>
</clause></subparagraph><subparagraph id="H7EC157ED54ED4A969100584767DBBB51"><enum>(B)</enum><header>Limitations to be
increased</header><text>The limitations described in this subparagraph
are—</text>
<clause id="H25BD4BC206F447F5BDB4AA61249668E8"><enum>(i)</enum><text>the limitation under
section 38(c), and</text>
</clause><clause id="H06B87124782449CB90FC968EF14C74D8"><enum>(ii)</enum><text>the limitation under
section 53(c).</text>
</clause></subparagraph><subparagraph id="H5D0F6D59C74A4948BAC4D129EA43B7BF"><enum>(C)</enum><header>Bonus depreciation
amount</header><text>For purposes of this paragraph—</text>
<clause id="H3D94D8012C4F47E1823535DBE030A1E0"><enum>(i)</enum><header>In
general</header><text>The bonus depreciation amount for any applicable taxable
year is an amount equal to the product of 20 percent and the excess (if any)
of—</text>
<subclause id="H6874692C029C446D83CBB8802EC89E23"><enum>(I)</enum><text>the aggregate amount of
depreciation which would be determined under this section for property placed
in service during the taxable year if no election under this paragraph were
made, over</text>
</subclause><subclause id="H43F1A44B6D4A42D19C2EC5106D16E712"><enum>(II)</enum><text>the aggregate amount of
depreciation allowable under this section for property placed in service during
the taxable year.</text>
</subclause><continuation-text continuation-text-level="clause">In the case of property which is a
passenger aircraft, the amount determined under subclause (I) shall be
calculated without regard to the written binding contract limitation under
paragraph (2)(A)(iii)(I).</continuation-text></clause><clause id="HB6963182148248428340C59DFC1FEEDC"><enum>(ii)</enum><header>Maximum
amount</header><text>The bonus depreciation amount for any applicable taxable
year shall not exceed the applicable limitation under clause (iii), reduced
(but not below zero) by the bonus depreciation amount for any preceding taxable
year.</text>
</clause><clause id="H30BB2452A566445CBFD13B06AA7D6918"><enum>(iii)</enum><header>Applicable
limitation</header><text>For purposes of clause (ii), the term <term>applicable
limitation</term> means, with respect to any eligible taxpayer, the lesser
of—</text>
<subclause id="H65406ABFE9244EB48BE6E22842795F86"><enum>(I)</enum><text>$30,000,000, or</text>
</subclause><subclause id="HF0A1CA760AC8415CB4D95D3E2972C211"><enum>(II)</enum><text>6 percent of the sum of
the amounts determined with respect to the taxpayer under clauses (ii) and
(iii) of subparagraph (E).</text>
</subclause></clause><clause id="H9F5D9446FEA6469F839CD9112C7F7873"><enum>(iv)</enum><header>Aggregation
rule</header><text>All corporations which are treated as a single employer
under section 52(a) shall be treated as 1 taxpayer for purposes of applying the
limitation under this subparagraph and determining the applicable limitation
under clause (iii).</text>
</clause></subparagraph><subparagraph id="id6A5C13ADF6954D4EBD430E56D4994B75"><enum>(D)</enum><header>Eligible qualified
property</header><text>For purposes of this paragraph, the term <term>eligible
qualified property</term> means qualified property under paragraph (2), except
that in applying paragraph (2) for purposes of this clause—</text>
<clause id="id031760BF94FE4DCF984D1A7D43A88F0D"><enum>(i)</enum><text><quote>March 31,
2008</quote> shall be substituted for <quote>December 31, 2007</quote> each
place it appears in subparagraph (A) and clauses (i) and (ii) of subparagraph
(E) thereof,</text>
</clause><clause id="id0BDFFDC2A0BA4614AD89A8D1CD751F05"><enum>(ii)</enum><text>only adjusted basis
attributable to manufacture, construction, or production after March 31, 2008,
and before January 1, 2009, shall be taken into account under subparagraph
(B)(ii) thereof, and</text>
</clause><clause id="idEEB47C829CE84755B67EEC1C71EB818F"><enum>(iii)</enum><text>in the case of property
which is a passenger aircraft, the written binding contract limitation under
subparagraph (A)(iii)(I) thereof shall not apply.</text>
</clause></subparagraph><subparagraph id="H38C908833D9F4FA3B42F2B4F6EEB75DB"><enum>(E)</enum><header>Allocation of bonus
depreciation amounts</header>
<clause id="H521D0059C7AB48CE90FFE71995205436"><enum>(i)</enum><header>In
general</header><text>Subject to clauses (ii) and (iii), the taxpayer shall, at
such time and in such manner as the Secretary may prescribe, specify the
portion (if any) of the bonus depreciation amount which is to be allocated to
each of the limitations described in subparagraph (B).</text>
</clause><clause id="H11DB3E0911E1467C9598ADABF95CB2DD"><enum>(ii)</enum><header>Business credit
limitation</header><text>The portion of the bonus depreciation amount allocated
to the limitation described in subparagraph (B)(i) shall not exceed an amount
equal to the portion of the credit allowable under section 38 for the taxable
year which is allocable to business credit carryforwards to such taxable year
which are—</text>
<subclause id="H109251B9F07A43DEBCEA5B0531E737A3"><enum>(I)</enum><text>from taxable years
beginning before January 1, 2006, and</text>
</subclause><subclause id="HF268964A99BA4C9500A44BEC43574651"><enum>(II)</enum><text>properly allocable
(determined under the rules of section 38(d)) to the research credit determined
under section 41(a).</text>
</subclause></clause><clause id="HE1ADAFE3297549D79BFD75E551CE35F"><enum>(iii)</enum><header>Alternative minimum
tax credit limitation</header><text>The portion of the bonus depreciation
amount allocated to the limitation described in subparagraph (B)(ii) shall not
exceed an amount equal to the portion of the minimum tax credit allowable under
section 53 for the taxable year which is allocable to the adjusted minimum tax
imposed for taxable years beginning before January 1, 2006. For purposes of the
preceding sentence, credits shall be treated as allowed on a first-in,
first-out basis.</text>
</clause></subparagraph><subparagraph id="HC8364E7E05DD482AAB4E8C2132C97294"><enum>(F)</enum><header>Credit
refundable</header><text>Any aggregate increases in the credits allowed under
section 38 or 53 by reason of this paragraph shall, for purposes of this title,
be treated as a credit allowed to the taxpayer under subpart C of part IV of
subchapter A.</text>
</subparagraph><subparagraph id="H70E8E281450F4554A279F72BBFBC313"><enum>(G)</enum><header>Other rules</header>
<clause id="HAE85358623A8413097F455E05378D5A0"><enum>(i)</enum><header>Election</header><text>Any
election under this paragraph (including any allocation under subparagraph (E))
may be revoked only with the consent of the Secretary.</text>
</clause><clause id="H65B64878CD7C4F5A9175F9B7B17F1003"><enum>(ii)</enum><header>Deduction allowed in
computing minimum tax</header><text>Notwithstanding this paragraph, paragraph
(2)(G) shall apply with respect to the deduction computed under this section
(after application of this paragraph) with respect to property placed in
service during any applicable taxable
year.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id6190A05660074C71A7296234502FCD00"><enum>(b)</enum><header>Application to certain
automotive partnerships</header>
<paragraph id="id2853496BBFA84FCBA8F20D58153F8477"><enum>(1)</enum><header>In
general</header><text>If an applicable partnership elects the application of
this subsection—</text>
<subparagraph id="id7A81CA70795541A699A9E4A2D7B9C787"><enum>(A)</enum><text>the partnership shall be
treated as having made a payment against the tax imposed by chapter 1 of the
Internal Revenue Code of 1986 for any applicable taxable year of the
partnership in the amount determined under paragraph (3),</text>
</subparagraph><subparagraph id="idDB4EC7C72BFC4FAFB50D516CDEF2F7E6"><enum>(B)</enum><text>in the case of any
eligible qualified property placed in service by the partnership during any
applicable taxable year—</text>
<clause id="id142DAC835DCF4062A2B3DDADD77F18BE"><enum>(i)</enum><text>section 168(k) of such
Code shall not apply in determining the amount of the deduction allowable to
the partnership or any partner with respect to such property under section 168
of such Code,</text>
</clause><clause id="idABBEE3687E744156BD7E6A4388CEB572"><enum>(ii)</enum><text>the applicable
depreciation method used by the partnership or any partner under such section
with respect to such property shall be the straight line method rather than the
method that would otherwise be used,</text>
</clause></subparagraph><subparagraph id="id839B3A64CBF14B7AA00FEE6B2CC545E1"><enum>(C)</enum><text>no election may be made
under section 168(k)(4) of such Code with respect to the partnership,
and</text>
</subparagraph><subparagraph id="idA8B2E489F91343F5AAA5111F01701C97"><enum>(D)</enum><text>the amount of the credit
determined under section 41 of such Code for any applicable taxable year with
respect to the partnership shall be reduced by the amount of the deemed payment
under subparagraph (A) for the taxable year.</text>
</subparagraph></paragraph><paragraph id="id80E618923646483CB5022F9D51FEF7F1"><enum>(2)</enum><header>Treatment of deemed
payment</header>
<subparagraph id="id6DF875F52D5242BCBEC10C3DA532B563"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of the Internal
Revenue Code of 1986, the Secretary of the Treasury or his delegate shall not
use the payment of tax described in paragraph (1) as an offset or credit
against any tax liability of the applicable partnership or any partner but
shall refund such payment to the applicable partnership.</text>
</subparagraph><subparagraph id="id853E8B6CF4FF4851A8DA0083B3AB6C81"><enum>(B)</enum><header>No
interest</header><text>The payment described in paragraph (1) shall not be
taken into account in determining any amount of interest under such
Code.</text>
</subparagraph></paragraph><paragraph id="idE9D3D8CEF62B4E329D13C5B0E07E67E5"><enum>(3)</enum><header>Amount of deemed
payment</header><text>The amount determined under this paragraph for any
applicable taxable year shall be the least of the following:</text>
<subparagraph id="id97C042DE0A234D35905C12D7D9411967"><enum>(A)</enum><text>The amount which would be
determined for the taxable year under section 168(k)(4)(C)(i) of the Internal
Revenue Code of 1986 (as added by the amendments made by this section) if an
election under such section were in effect with respect to the
partnership.</text>
</subparagraph><subparagraph id="id86F07A9D139B44F1A03DF74E865C7F49"><enum>(B)</enum><text>The amount of the credit
determined under section 41 of such Code for the taxable year with respect to
the partnership.</text>
</subparagraph><subparagraph id="idB2DB3C4065984BA5ABB26C8E54F7B45C"><enum>(C)</enum><text>$30,000,000, reduced by
the amount of any payment under this subsection for any preceding taxable
year.</text>
</subparagraph></paragraph><paragraph id="id0976EFA0EB7D4600910EFF58ED15694A"><enum>(4)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="id73415DBDC4374043A19CB2D7312EA323"><enum>(A)</enum><header>Applicable
partnership</header><text>The term <term>applicable partnership</term> means a
domestic partnership that—</text>
<clause id="id2FD614D40DC94E77B1ED17559DD9AE1A"><enum>(i)</enum><text>was formed effective on
August 3, 2007, and</text>
</clause><clause id="idD010CAF73B674D7DA8CB53946140E3AA"><enum>(ii)</enum><text>will produce in excess
of 675,000 automobiles during the period beginning on January 1, 2008, and
ending on June 30, 2008.</text>
</clause></subparagraph><subparagraph id="idDE8DD071A40E4D34AF7DFDB5813825A4"><enum>(B)</enum><header>Applicable taxable
year</header><text>The term <term>applicable taxable year</term> means any
taxable year during which eligible qualified property is placed in
service.</text>
</subparagraph><subparagraph id="idE1178331B3B6410BBA445FC053F1500F"><enum>(C)</enum><header>Eligible qualified
property</header><text>The term <term>eligible qualified property</term> has
the meaning given such term by section 168(k)(4)(D) of the Internal Revenue
Code of 1986 (as added by the amendments made by this section).</text>
</subparagraph></paragraph></subsection><subsection id="idA28E49BC399D4844B894303968244F64"><enum>(c)</enum><header>Conforming
amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/1324">Section 1324(b)(2)</external-xref> of title 31, United States Code, as
amended by this Act, is amended—</text>
<paragraph id="id297B9A8A2DA84AEEA52E4CEE35628360"><enum>(1)</enum><text>by inserting
<quote>168(k)(4)(F),</quote> after <quote>36,</quote>, and</text>
</paragraph><paragraph id="id4BC85C68443643EC9F5B6846C0380399"><enum>(2)</enum><text>by inserting <quote>, or
due under section 3081(b)(2) of the Housing Assistance Tax Act of 2008</quote>
before the period at the end.</text>
</paragraph></subsection><subsection id="HC8CF42C2F19F44A0A0A0D24309FD9D"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years ending after March 31, 2008.</text>
</subsection></section><section commented="no" id="H6F6AC95ACB5C4435AB2B42DE7DCA8299"><enum>3082.</enum><header>Certain GO Zone
incentives</header>
<subsection commented="no" id="HBC171D0B3CCD46799DF4CB389CEA76E9"><enum>(a)</enum><header>Use of amended income
tax returns To take into account receipt of certain hurricane-related casualty
loss grants by disallowing previously taken casualty loss deductions</header>
<paragraph commented="no" id="HC3186525DC9849CBABD236EC37CFAB5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of the Internal Revenue Code of 1986, if a taxpayer claims a
deduction for any taxable year with respect to a casualty loss to a principal
residence (within the meaning of section 121 of such Code) resulting from
Hurricane Katrina, Hurricane Rita, or Hurricane Wilma and in a subsequent
taxable year receives a grant under <external-xref legal-doc="public-law" parsable-cite="pl/109/148">Public Law 109–148</external-xref>, 109–234, or 110–116 as
reimbursement for such loss, such taxpayer may elect to file an amended income
tax return for the taxable year in which such deduction was allowed (and for
any taxable year to which such deduction is carried) and reduce (but not below
zero) the amount of such deduction by the amount of such reimbursement.</text>
</paragraph><paragraph commented="no" id="HC0748952B61F4711A9DB004E75410002"><enum>(2)</enum><header>Time of filing amended
return</header><text>Paragraph (1) shall apply with respect to any grant only
if any amended income tax returns with respect to such grant are filed not
later than the later of—</text>
<subparagraph commented="no" id="H65804BB25C524F26BDAEC66F4F37BA8"><enum>(A)</enum><text>the due date for filing
the tax return for the taxable year in which the taxpayer receives such grant,
or</text>
</subparagraph><subparagraph commented="no" id="HC049F6EC59F44FEB93A34CF027558461"><enum>(B)</enum><text>the date which is 1 year
after the date of the enactment of this Act.</text>
</subparagraph></paragraph><paragraph commented="no" id="H545ADDC1DBF44E07B8E92B9B847ECCB5"><enum>(3)</enum><header>Waiver of penalties and
interest</header><text>Any underpayment of tax resulting from the reduction
under paragraph (1) of the amount otherwise allowable as a deduction shall not
be subject to any penalty or interest under such Code if such tax is paid not
later than 1 year after the filing of the amended return to which such
reduction relates.</text>
</paragraph></subsection><subsection commented="no" id="HF76FE83073084BC600E4DDA5C82B41B8"><enum>(b)</enum><header>Waiver of deadline on
construction of GO Zone property eligible for bonus depreciation</header>
<paragraph commented="no" id="H433D5A99648541D6951D16B40AA00E9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 1400N(d)(3) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5C5570A2BE874A84B29BBD8800A6D526" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="HEC1F884DC1784B53A31D00BD047F999E"><enum>(B)</enum><text display-inline="yes-display-inline">without regard to <quote>and before January
1, 2009</quote> in clause (i) thereof,
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H61966920ADBD43718B4502967204F443"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property placed in service after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" id="HA2F10AC7A1714AC899AEDF5197003C31"><enum>(c)</enum><header>Inclusion of certain
counties in Gulf Opportunity Zone for purposes of tax-exempt bond
financing</header>
<paragraph commented="no" id="HD26DC5E55A504CDBB904D97103E27FF8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 1400N is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1066558C8FC64B48B17832916B592149" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="H860D70A538F0449C9D6101221592A00"><enum>(8)</enum><header>Inclusion of certain
counties</header><text display-inline="yes-display-inline">For purposes of this
subsection, the Gulf Opportunity Zone includes Colbert County, Alabama and
Dallas County,
Alabama.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF86CA85D1ACE445082EB221F9B95B660"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect as
if included in the provisions of the Gulf Opportunity Zone Act of 2005 to which
it relates.</text>
</paragraph></subsection></section></subtitle><subtitle id="H08C1AD0E82A645E48963CD090888C508"><enum>B</enum><header>Revenue offsets</header>
<section id="HB280178A1E8244F286F7B100E7A92DF" section-type="subsequent-section"><enum>3091.</enum><header>Returns relating to
payments made in settlement of payment card and third party network
transactions</header>
<subsection id="H1AEE54A19B494F528F89FD5970DD2D56"><enum>(a)</enum><header>In
general</header><text>Subpart B of part III of subchapter A of chapter 61 is
amended by adding at the end the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H78F0549F99634E11BBB2FE3291815D80" reported-display-style="italic" style="OLC">
<section id="H80E37A840410486BA845C454959F91AB"><enum>6050W.</enum><header>Returns relating to
payments made in settlement of payment card and third party network
transactions</header>
<subsection id="HC7CB4E1EBD304B6AAE1BB4B13B8CD982"><enum>(a)</enum><header>In
general</header><text>Each payment settlement entity shall make a return for
each calendar year setting forth—</text>
<paragraph id="H24527FFE957B448DBA87F0209E855577"><enum>(1)</enum><text>the name, address, and
TIN of each participating payee to whom one or more payments in settlement of
reportable transactions are made, and</text>
</paragraph><paragraph id="HB60EEF277C0D4E998D4FCEDF6EBCFA5"><enum>(2)</enum><text>the gross amount of the
reportable transactions with respect to each such participating payee.</text>
</paragraph><continuation-text continuation-text-level="subsection">Such return shall be made at such time
and in such form and manner as the Secretary may require by regulations.</continuation-text></subsection><subsection id="H0900EA946922496289F86CD171D3C4BE"><enum>(b)</enum><header>Payment settlement
entity</header><text>For purposes of this section—</text>
<paragraph id="HA76DC62E6B80472E9EB3F5846B489460"><enum>(1)</enum><header>In
general</header><text>The term <quote>payment settlement entity</quote>
means—</text>
<subparagraph id="HB48A98DC0CD54BD6A512E3D425F5AEDE"><enum>(A)</enum><text>in the case of a payment
card transaction, the merchant acquiring bank, and</text>
</subparagraph><subparagraph id="HBBDE7C788F394586A4541981C99D9371"><enum>(B)</enum><text>in the case of a third
party network transaction, the third party settlement organization.</text>
</subparagraph></paragraph><paragraph id="HAFC2899D140C4857B7CC79F117AB09CB"><enum>(2)</enum><header>Merchant acquiring
bank</header><text>The term <quote>merchant acquiring bank</quote> means the
bank or other organization which has the contractual obligation to make payment
to participating payees in settlement of payment card transactions.</text>
</paragraph><paragraph id="HC569FCDB4F19452B933CEB758CFE9D00"><enum>(3)</enum><header>Third party settlement
organization</header><text>The term <quote>third party settlement
organization</quote> means the central organization which has the contractual
obligation to make payment to participating payees of third party network
transactions.</text>
</paragraph><paragraph id="H8188D53DEB634EF1AD606F30B006A236"><enum>(4)</enum><header>Special rules related
to intermediaries</header><text display-inline="yes-display-inline">For
purposes of this section—</text>
<subparagraph id="H50BB1F22B54841659424EF4E178047C3"><enum>(A)</enum><header>Aggregated
payees</header><text>In any case where reportable transactions of more than one
participating payee are settled through an intermediary—</text>
<clause id="H3877548177D24033BB535FC7714F2C32"><enum>(i)</enum><text>such intermediary shall
be treated as the participating payee for purposes of determining the reporting
obligations of the payment settlement entity with respect to such transactions,
and</text>
</clause><clause id="HE2D5697DF6994D3E9677EDE1814F75D6"><enum>(ii)</enum><text>such intermediary shall
be treated as the payment settlement entity with respect to the settlement of
such transactions with the participating payees.</text>
</clause></subparagraph><subparagraph id="HBBFE2484FBE340468CEAE566F1BEDB14"><enum>(B)</enum><header>Electronic payment
facilitators</header><text>In any case where an electronic payment facilitator
or other third party makes payments in settlement of reportable transactions on
behalf of the payment settlement entity, the return under subsection (a) shall
be made by such electronic payment facilitator or other third party in lieu of
the payment settlement entity.</text>
</subparagraph></paragraph></subsection><subsection id="H6780ED69B92B463BA1350282DBD7BB8B"><enum>(c)</enum><header>Reportable
transaction</header><text>For purposes of this section—</text>
<paragraph id="HDB4F9D977E0C4EC1A84B392FBAA6B6BB"><enum>(1)</enum><header>In
general</header><text>The term <quote>reportable transaction</quote> means any
payment card transaction and any third party network transaction.</text>
</paragraph><paragraph id="HAF14169753844042B783DC909DF5A74B"><enum>(2)</enum><header>Payment card
transaction</header><text display-inline="yes-display-inline">The term
<quote>payment card transaction</quote> means any transaction in which a
payment card is accepted as payment.</text>
</paragraph><paragraph id="HBC32AF5298AE4CA99D4971FEFA33007D"><enum>(3)</enum><header>Third party network
transaction</header><text>The term <quote>third party network
transaction</quote> means any transaction which is settled through a third
party payment network.</text>
</paragraph></subsection><subsection id="H7AFBABC7EFE64DEB970548E1B8D70019"><enum>(d)</enum><header>Other
definitions</header><text>For purposes of this section—</text>
<paragraph id="H3A9C97766D294996813D05CCE8F327D3"><enum>(1)</enum><header>Participating
payee</header>
<subparagraph id="H9BE4B75E472F4AB8A4B59FB6BAC24B00"><enum>(A)</enum><header>In
general</header><text>The term <quote>participating payee</quote> means—</text>
<clause id="H53E41EF5658F48CAADF3E112F3E9D28"><enum>(i)</enum><text>in the case of a payment
card transaction, any person who accepts a payment card as payment, and</text>
</clause><clause id="HE2EE59C9E2154BA98B3B93C604CA2344"><enum>(ii)</enum><text>in the case of a third
party network transaction, any person who accepts payment from a third party
settlement organization in settlement of such transaction.</text>
</clause></subparagraph><subparagraph id="HC9D45CCCB3F04BA4A1331DD700D415CB"><enum>(B)</enum><header>Exclusion of foreign
persons</header><text>To the extent provided by the Secretary in regulations or
other guidance, such term shall not include any foreign person.</text>
</subparagraph><subparagraph id="H1C374413007F4AA4A0C6C3320016E818"><enum>(C)</enum><header>Inclusion of
governmental units</header><text>The term <quote>person</quote> includes any
governmental unit (and any agency or instrumentality thereof).</text>
</subparagraph></paragraph><paragraph id="H6BD0A840A6814603A3AD681446B64D43"><enum>(2)</enum><header>Payment
card</header><text>The term <quote>payment card</quote> means any card which is
issued pursuant to an agreement or arrangement which provides for—</text>
<subparagraph id="HD14353B48F60422F8B8327302F83CE8F"><enum>(A)</enum><text>one or more issuers of
such cards,</text>
</subparagraph><subparagraph id="H9296EE0C4B0F4A430021016D4FA7E220"><enum>(B)</enum><text>a network of persons
unrelated to each other, and to the issuer, who agree to accept such cards as
payment, and</text>
</subparagraph><subparagraph id="HE486AA54A2464D90B08FF01595D48D71"><enum>(C)</enum><text>standards and mechanisms
for settling the transactions between the merchant acquiring banks and the
persons who agree to accept such cards as payment.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The acceptance as payment of any account
number or other indicia associated with a payment card shall be treated for
purposes of this section in the same manner as accepting such payment card as
payment.</continuation-text></paragraph><paragraph id="H42A5FBDB0D304FC7B99BB1CCCB621AE"><enum>(3)</enum><header>Third party payment
network</header><text>The term <quote>third party payment network</quote> means
any agreement or arrangement—</text>
<subparagraph id="H1B0650ED66154015A6409EF110B4C5A7"><enum>(A)</enum><text>which involves the
establishment of accounts with a central organization for the purpose of
settling transactions between persons who establish such accounts,</text>
</subparagraph><subparagraph id="H4D2D9AC9EAC8431A8170BBA6E8F357C"><enum>(B)</enum><text>which provides for
standards and mechanisms for settling such transactions,</text>
</subparagraph><subparagraph id="H56579AD2FCEC44CE997CDA306281DF50"><enum>(C)</enum><text>which involves a
substantial number of persons unrelated to such central organization who
provide goods or services and who have agreed to settle transactions for the
provision of such goods or services pursuant to such agreement or arrangement,
and</text>
</subparagraph><subparagraph id="H74240B973BC84422A7FEE5D983AB84C"><enum>(D)</enum><text>which guarantees persons
providing goods or services pursuant to such agreement or arrangement that such
persons will be paid for providing such goods or services.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term shall not include any agreement
or arrangement which provides for the issuance of payment cards.</continuation-text></paragraph></subsection><subsection id="H4EFB533D6BC54E4CAEA165F0E29000CB"><enum>(e)</enum><header>Exception for de
minimis payments by third party settlement organizations</header><text display-inline="yes-display-inline">A third party settlement organization shall
not be required to report any information under subsection (a) with respect to
third party network transactions of any participating payee if the amount which
would otherwise be reported under subsection (a)(2) with respect to such
transactions does not exceed $10,000 and the aggregate number of such
transactions does not exceed 200.</text>
</subsection><subsection id="HF1B5BD857A1047D296F00FF9B5FC87B"><enum>(f)</enum><header>Statements To be
furnished to persons with respect to whom information is
required</header><text>Every person required to make a return under subsection
(a) shall furnish to each person with respect to whom such a return is required
a written statement showing—</text>
<paragraph id="H69ED01A086714EC4B2580067784F00A4"><enum>(1)</enum><text>the name, address, and
phone number of the information contact of the person required to make such
return, and</text>
</paragraph><paragraph id="HD75139010E0E4AEB95FD46E2791C10FF"><enum>(2)</enum><text>the gross amount of
payments made to the person required to be shown on the return.</text>
</paragraph><continuation-text continuation-text-level="subsection">The written statement required under the
preceding sentence shall be furnished to the person on or before January 31 of
the year following the calendar year for which the return under subsection (a)
was required to be made.</continuation-text></subsection><subsection id="HE8FC6481770A46B2B8BB1271A1F8B7AA"><enum>(g)</enum><header>Regulations</header><text>The
Secretary may prescribe such regulations or other guidance as may be necessary
or appropriate to carry out this section, including rules to prevent the
reporting of the same transaction more than
once.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD4465EA361E348D69CEC206F7F2D4B64"><enum>(b)</enum><header>Penalty for failure To
file</header>
<paragraph id="H3FC32E8A3623405281C7E4364C5591D6"><enum>(1)</enum><header>Return</header><text>Subparagraph
(B) of section 6724(d)(1) is amended—</text>
<subparagraph id="H545544CDC94141D98C13E806352783CA"><enum>(A)</enum><text>by striking
<quote>or</quote> at the end of clause (xx),</text>
</subparagraph><subparagraph id="HE580875581404236AD819E1098EF528E"><enum>(B)</enum><text>by redesignating the
clause (xix) that follows clause (xx) as clause (xxi),</text>
</subparagraph><subparagraph id="HCE2743FE61B040F8A45CFCCE9EB9C747"><enum>(C)</enum><text>by striking
<quote>and</quote> at the end of clause (xxi), as redesignated by subparagraph
(B) and inserting <quote>or</quote>, and</text>
</subparagraph><subparagraph id="HF2EF70A2E2134FD5A9B38448C841CC29"><enum>(D)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" id="H10876E25E8714C5F9FD160B2B9F6A268" reported-display-style="italic" style="OLC">
<clause id="H15091D4A3B0141BBA3EBA50032FEC081"><enum>(xxii)</enum><text display-inline="yes-display-inline">section 6050W (relating to returns to
payments made in settlement of payment card transactions),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H365AE0A340BC41448152ABD3FDF3CBDC"><enum>(2)</enum><header>Statement</header><text>Paragraph
(2) of section 6724(d) is amended by striking <quote>or</quote> at the end of
subparagraph (BB), by striking the period at the end of the subparagraph (CC)
and inserting <quote>, or</quote>, and by inserting after subparagraph (CC) the
following:</text>
<quoted-block changed="added" id="H2C53763C835740D18B283BCAEE0000B6" reported-display-style="italic" style="OLC">
<subclause id="H507DE6EFA76340F0AA1C3DDEECC8526C" indent="up2"><enum>(DD)</enum><text display-inline="yes-display-inline">section 6050W(c) (relating to returns
relating to payments made in settlement of payment card
transactions).</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDBEE2C03A6ED4783B1A1A3E4BE4CBF10"><enum>(c)</enum><header>Application of backup
withholding</header><text>Paragraph (3) of section 3406(b) is amended by
striking <quote>or</quote> at the end of subparagraph (D), by striking the
period at the end of subparagraph (E) and inserting <quote>, or</quote>, and by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA76B674ADB79406EA1D09FD5396D458B" reported-display-style="italic" style="OLC">
<subparagraph id="H2504B91349D243AB9CC375773FC3A5E7"><enum>(F)</enum><text display-inline="yes-display-inline">section 6050W (relating to returns relating
to payments made in settlement of payment card
transactions).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H32209566BF1B4CE8BDE22BAC90061B00"><enum>(d)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part III of
subchapter A of chapter 61 is amended by inserting after the item relating to
section 6050V the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H29B9C89689564E42BB2932C7996EA7EC" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H78F0549F99634E11BBB2FE3291815D80" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry idref="H80E37A840410486BA845C454959F91AB" level="section">Sec. 6050W. Returns relating to
payments made in settlement of payment card
transactions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDF2D2F2B5DE5408283BCFBE5C1007F15"><enum>(e)</enum><header>Effective date</header>
<paragraph id="H50187E026DFD4D29875C2F10D9172CCD"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to returns for calendar years
beginning after December 31, 2010.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDB33B476FB6F4622AF00DD8B96E87362"><enum>(2)</enum><header>Application of backup
withholding</header><text>The amendment made by subsection (c) shall apply to
amounts paid after December 31, 2011.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H5880E007062D4846A865E370DF6D85CB" section-type="subsequent-section"><enum>3092.</enum><header>Gain from sale of
principal residence allocated to nonqualified use not excluded from
income</header>
<subsection id="H74E8CECCC20D42B7A9002053004D2682"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 121 of the Internal Revenue
Code of 1986 (relating to limitations) is amended by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HEF5357C4412D4CC2A11DA686CCD2071" reported-display-style="italic" style="OLC">
<paragraph id="H4946598C95A14CFC006E3FFCAD00F27"><enum>(4)</enum><header>Exclusion of gain
allocated to nonqualified use</header>
<subparagraph id="HAEC70A20CCFC45D3A7107CD1C1CFCCD"><enum>(A)</enum><header>In
general</header><text>Subsection (a) shall not apply to so much of the gain
from the sale or exchange of property as is allocated to periods of
nonqualified use.</text>
</subparagraph><subparagraph id="HF81EBA6D9F834E5CBF5E96D486294EE4"><enum>(B)</enum><header>Gain allocated to
periods of nonqualified use</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), gain
shall be allocated to periods of nonqualified use based on the ratio
which—</text>
<clause id="H9AE3E03A62F243F6BDAB6E7E60779B16"><enum>(i)</enum><text display-inline="yes-display-inline">the aggregate periods of nonqualified use
during the period such property was owned by the taxpayer, bears to</text>
</clause><clause id="H97F9D39E0FEF4C80A200A872D83213A5"><enum>(ii)</enum><text>the period such property
was owned by the taxpayer.</text>
</clause></subparagraph><subparagraph id="HD0BF06F5E1E74613A1BED000D6680020"><enum>(C)</enum><header>Period of nonqualified
use</header><text>For purposes of this paragraph—</text>
<clause display-inline="no-display-inline" id="H0E04AA82C3A646648F3D9690CBCF1178"><enum>(i)</enum><header>In
general</header><text>The term <term>period of nonqualified use</term> means
any period (other than the portion of any period preceding January 1, 2009)
during which the property is not used as the principal residence of the
taxpayer or the taxpayer’s spouse or former spouse.</text>
</clause><clause id="H330359A5F5904471AA3E3BB2B535E150"><enum>(ii)</enum><header>Exceptions</header><text>The
term <term>period of nonqualified use</term> does not include—</text>
<subclause id="H149014BFBD3846CD8D18E6ABA4E660A0"><enum>(I)</enum><text>any portion of the 5-year
period described in subsection (a) which is after the last date that such
property is used as the principal residence of the taxpayer or the taxpayer’s
spouse,</text>
</subclause><subclause id="HE03F88594E3041F7B5A41C4EFE4342"><enum>(II)</enum><text>any period (not to
exceed an aggregate period of 10 years) during which the taxpayer or the
taxpayer’s spouse is serving on qualified official extended duty (as defined in
subsection (d)(9)(C)) described in clause (i), (ii), or (iii) of subsection
(d)(9)(A), and</text>
</subclause><subclause id="H6AE7B312D58F4A419F97042190CAFE86"><enum>(III)</enum><text>any other period of
temporary absence (not to exceed an aggregate period of 2 years) due to change
of employment, health conditions, or such other unforeseen circumstances as may
be specified by the Secretary.</text>
</subclause></clause></subparagraph><subparagraph id="HEFEEC533C46040ABB3A0DA0027D305A7"><enum>(D)</enum><header>Coordination with
recognition of gain attributable to depreciation</header><text>For purposes of
this paragraph—</text>
<clause id="H77BFCA4848524C56A9ACED365DB17CCE"><enum>(i)</enum><text>subparagraph (A) shall be
applied after the application of subsection (d)(6), and</text>
</clause><clause id="H2557C81EEBD546288F2F2329173EEFF9"><enum>(ii)</enum><text>subparagraph (B) shall
be applied without regard to any gain to which subsection (d)(6)
applies.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC1B9EF05E4CD4614B058E301F7007287"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to sales and
exchanges after December 31, 2008.</text>
</subsection></section><section display-inline="no-display-inline" id="H7C8E49AE58E542EAA6D2AB54C612F78D" section-type="subsequent-section"><enum>3093.</enum><header>Increase in
information return penalties</header>
<subsection id="HA57CD54DD7534E2F8B134E7674E2CA1C"><enum>(a)</enum><header>Failure To file correct
information returns</header>
<paragraph id="H3B5CAB83C52D498F86D814DB47BA38EF"><enum>(1)</enum><header>In
general</header><text>Subsections (a)(1), (b)(1)(A), and (b)(2)(A) of section
6721 are each amended by striking <quote>$50</quote> and inserting
<quote>$100</quote>.</text>
</paragraph><paragraph id="H12B8E98253E943C8AFB67C82E388CA25"><enum>(2)</enum><header>Aggregate annual
limitation</header><text display-inline="yes-display-inline">Subsections
(a)(1), (d)(1)(A), and (e)(3)(A) of section 6721 are each amended by striking
<quote>$250,000</quote> and inserting <quote>$1,500,000</quote>.</text>
</paragraph></subsection><subsection id="HF286FF85BAF4420280457259847BC9A5"><enum>(b)</enum><header>Reduction where
correction within 30 days</header>
<paragraph id="H20CD6D167F4348ABA300BBBB71A60980"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 6721(b)(1) is amended by
striking <quote>$15</quote> and inserting <quote>$50</quote>.</text>
</paragraph><paragraph id="H5400D15538A64BCF817F27A02417FF38"><enum>(2)</enum><header>Aggregate annual
limitation</header><text>Subsections (b)(1)(B) and (d)(1)(B) of section 6721
are each amended by striking <quote>$75,000</quote> and inserting
<quote>$500,000</quote>.</text>
</paragraph></subsection><subsection id="H44B670139EA246FB85DE54F3DE006B4E"><enum>(c)</enum><header>Reduction where
correction on or before August 1</header>
<paragraph id="H1ABAE45F800243A7BFAFDFB21459A436"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 6721(b)(2) is amended by
striking <quote>$30</quote> and inserting <quote>$75</quote>.</text>
</paragraph><paragraph id="H69386AD5C60D47ACB67B8625780021A9"><enum>(2)</enum><header>Aggregate annual
limitation</header><text display-inline="yes-display-inline">Subsections
(b)(2)(B) and (d)(1)(C) of section 6721are each amended by striking
<quote>$150,000</quote> and inserting <quote>$1,000,000</quote>.</text>
</paragraph></subsection><subsection id="H505DBB6B156D497B8EFFD48411851E80"><enum>(d)</enum><header>Aggregate annual
limitations for persons with gross receipts of not more than
$5,000,000</header><text display-inline="yes-display-inline">Paragraph (1) of
section 6721(d) is amended—</text>
<paragraph id="HAB13D393A6A84D8980F8AA27436B8838"><enum>(1)</enum><text>by striking
<quote>$100,000</quote> in subparagraph (A) and inserting
<quote>$500,000</quote>,</text>
</paragraph><paragraph id="H95AA5DC0140E4D41ACFC534D66FEEDDD"><enum>(2)</enum><text>by striking
<quote>$25,000</quote> in subparagraph (B) and inserting
<quote>$100,000</quote>, and</text>
</paragraph><paragraph id="H10C1E71F6B234B5DAC5F8BC4A8642500"><enum>(3)</enum><text>by striking
<quote>$50,000</quote> in subparagraph (C) and inserting
<quote>$250,000</quote>.</text>
</paragraph></subsection><subsection id="H610D92F8966C445EB97CBA14D9F30C6"><enum>(e)</enum><header>Penalty in case of
intentional disregard</header><text display-inline="yes-display-inline">Paragraph (2) of section 6721(e) is amended
by striking <quote>$100</quote> and inserting <quote>$250</quote>.</text>
</subsection><subsection id="HCADDF4C8AAC14E0D86C0929C7CE4206F"><enum>(f)</enum><header>Failure To Furnish
Correct Payee Statements</header>
<paragraph id="H20D1D736DFCF400EACDBDBB59BDFA589"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 6722 is amended by striking <quote>$50</quote> and inserting
<quote>$100</quote>.</text>
</paragraph><paragraph id="H8688C08204DD453083E00998CAEB809"><enum>(2)</enum><header>Aggregate annual
limitation</header><text display-inline="yes-display-inline">Subsections (a)
and (c)(2)(A) of section 6722 are each amended by striking
<quote>$100,000</quote> and inserting <quote>$500,000</quote>.</text>
</paragraph><paragraph id="H1579F86DF08543D0B8C03CDC9DAE24BD"><enum>(3)</enum><header>Penalty in case of
intentional disregard</header><text display-inline="yes-display-inline">Paragraph (1) of section 6722(c) is amended
by striking <quote>$100</quote> and inserting <quote>$250</quote>.</text>
</paragraph></subsection><subsection id="H669E30E3D0F345B5B6F3C3D81284ACDE"><enum>(g)</enum><header>Failure To Comply With
Other Information Reporting Requirements</header><text display-inline="yes-display-inline">Section 6723 is amended—</text>
<paragraph id="H5C107EBBB3144F87A16895EF03EA4E00"><enum>(1)</enum><text>by striking
<quote>$50</quote> and inserting <quote>$100</quote>, and</text>
</paragraph><paragraph id="HD6E24FAF16CB49BA989950241E871269"><enum>(2)</enum><text>by striking
<quote>$100,000</quote> and inserting <quote>$500,000</quote>.</text>
</paragraph></subsection><subsection id="HE81F054D43944E06942E0014CF12A2B8"><enum>(h)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply with respect
to information returns required to be filed on or after January 1, 2009.</text>
</subsection></section><section display-inline="no-display-inline" id="H260DDBDF85474BB6A2C32F97A7E81583" section-type="subsequent-section"><enum>3094.</enum><header>Increase in penalty
for failure to file S corporation returns</header>
<subsection id="H326BFF7DC8C149F3BD50555DAB5D545E"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 6699(b) (relating to amount per
month) is amended by striking <quote>$85</quote> and inserting
<quote>$100</quote>.</text>
</subsection><subsection commented="no" id="H40ED3846B29D4826A43E933B2C387FEC"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to returns the due date for the filing of which
(including extensions) is after the date of the enactment of this Act.</text>
</subsection></section><section id="HE0A9CD168B974014BED9AD4EC231C934"><enum>3095.</enum><header>Increase in penalty
for failure to file partnership returns</header>
<subsection id="H3CD9F9349C29487689B840B29F48C3FF"><enum>(a)</enum><header>Increase in penalty
amount</header><text>Paragraph (1) of section 6698(b) (relating to amount per
month) is amended by striking <quote>$85</quote> and inserting
<quote>$100</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H91E5945A36AC4538AEF3C2EF87930300"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to returns the due date for the filing of which
(including extensions) is after the date of the enactment of this Act.</text>
</subsection></section><section id="idF6CC9DB08BDF41AF8CAAD8F17CF692C3"><enum>3096.</enum><header>Increase in minimum
penalty on failure to file a return of tax</header>
<subsection id="idE41E85A1C481452E94D64C86BA829ED8"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 6651, as amended by section
303(a) of the Heroes Earnings Assistance and Relief Tax Act of 2008, is amended
by striking <quote>$135</quote> in the last sentence and inserting
<quote>$225</quote>.</text>
</subsection><subsection id="id4735B05FA6B94BB28320E49FC4164B3B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to returns
the due date for the filing of which (including extensions) is after the date
of the enactment of this Act.</text>
</subsection></section></subtitle>
Resolved further, That on
July 8, 2008, the Senate concurs in the House amendments, striking titles VI
through XI, to the Senate amendment to the aforesaid bill;
Resolved further, That on July 11, 2008, the Senate
disagrees to the amendments of the House, adding a new title and inserting a
new section to the amendment of the Senate to the aforesaid bill.
Secretary