110 HR 5857 IH: Federal Housing Finance U.S. House of Representatives 2008-04-22 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 110th CONGRESS 2d Session H. R. 5857 IN THE HOUSE OF REPRESENTATIVES April 22, 2008 Mr. Bachus (for himself, Mrs. Biggert, Mrs. Capito, Mr. Boehner, Mr. Blunt, Mr. Putnam, Ms. Granger, Mr. McCotter, Ms. Pryce of Ohio, Mr. Roskam, Mr. Shays, Mr. Neugebauer, Mr. LaTourette, Mr. Jones of North Carolina, Mr. Castle, Ms. Ginny Brown-Waite of Florida, Mr. Heller of Nevada, Mr. Sessions, Mr. Lucas, Mr. Davis of Kentucky, Mr. Bonner, Mr. Rogers of Alabama, Mr. Latham, Mr. Turner, Mr. Chabot, Mr. Mario Diaz-Balart of Florida, Mr. Rogers of Michigan, Mr. Gallegly, Mr. Kirk, Mr. Terry, Mr. Manzullo, Mr. Boozman, and Mr. Carter) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Armed Services, Veterans’ Affairs, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To establish licensing and registration requirements for residential mortgage originators, improve mortgage disclosures, create an Office of Housing Counseling, to provide incentives to facilitate loan modifications, reform the regulation of the Government Sponsored Enterprises, modernize the Federal Housing Administration, improve home ownership for veterans, reform appraisal activities, and combat mortgage fraud, and for other purposes.
1.
Short title
This Act may be cited as the Homeownership Protection and Housing Market Stabilization Act of 2008.
2.
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Title I—Licensing System for Residential Mortgage Loan Originators Sec. 101. Purposes and methods for establishing a mortgage licensing system and registry. Sec. 102. Definitions. Sec. 103. License or registration required. Sec. 104. State license and registration application and issuance. Sec. 105. Standards for State license renewal. Sec. 106. System of registration administration by Federal banking agencies. Sec. 107. Secretary of Housing and Urban Development backup authority to establish a loan originator licensing system. Sec. 108. Backup authority to establish a nationwide mortgage licensing and registry system. Sec. 109. Fees. Sec. 110. Background checks of loan originators. Sec. 111. Confidentiality of information. Sec. 112. Liability provisions. Sec. 113. Enforcement under HUD backup licensing system. Title II—Residential Mortgage Loan Disclosures Sec. 201. Required disclosures. Sec. 202. Disclosures required in monthly statements for residential mortgage loans. Title III—Office of Housing Counseling Sec. 301. Short title. Sec. 302. Establishment of Office of Housing Counseling. Sec. 303. Counseling procedures. Sec. 304. Grants for housing counseling assistance. Sec. 305. Requirements to use HUD-certified counselors under HUD programs. Sec. 306. Study of defaults and foreclosures. Sec. 307. Definitions for counseling-related programs. Sec. 308. Updating and simplification of mortgage information booklet. Title IV—Incentives for Best Practices and Mortgage Loan Modification Sec. 401. CRA credit for certain lender practices. Sec. 402. Safe harbor for qualified loan modifications or workout plans for certain residential mortgage loans. Title V—FHA Modernization Sec. 501. Short title. Sec. 502. Findings and purposes. Sec. 503. Maximum principal loan obligation. Sec. 504. Extension of mortgage term. Sec. 505. Mortgage insurance premiums. Sec. 506. Rehabilitation loans. Sec. 507. Discretionary action. Sec. 508. Insurance of condominiums. Sec. 509. Mutual Mortgage Insurance Fund. Sec. 510. Hawaiian home lands and Indian reservations. Sec. 511. Conforming and technical amendments. Sec. 512. Home equity conversion mortgages. Sec. 513. Conforming loan limit in disaster areas. Sec. 514. Participation of mortgage brokers and correspondent lenders. Sec. 515. Sense of Congress regarding technology for financial systems. Sec. 516. Savings provision. Sec. 517. Implementation. Title VI—Homeownership for Veterans Sec. 601. Temporary increase in maximum loan guaranty amount for housing loans guaranteed by Secretary of Veterans Affairs. Sec. 602. Counseling on mortgage foreclosures for members of the Armed Forces returning from service abroad. Sec. 603. Enhancement of protections for servicemembers relating to mortgages and mortgage foreclosures. Title VII—Mortgage Escrow Accounts Sec. 701. Escrow and impound accounts relating to certain consumer credit transactions. Sec. 702. Disclosure notice required for consumers who waive escrow services. Title VIII—Mortgage Fraud Sec. 801. Authorization of appropriations for mortgage fraud prevention, investigation, and prosecution. Title IX—Appraisal Activities Sec. 901. Property appraisal requirements. Sec. 902. Amendments relating to appraisal subcommittee of FIEC, appraiser independence, and approved appraiser education. Sec. 903. Study required on improvements in appraisal process and compliance programs. Title X—Federal Housing Finance Reform Sec. 1001. Short title. Sec. 1002. Definitions. Subtitle A—Reform of regulation of enterprises and federal home loan banks Chapter 1—Improvement of Safety and Soundness Sec. 1011. Establishment of the Federal Housing Finance Agency. Sec. 1012. Duties and authorities of Director. Sec. 1013. Federal Housing Enterprise Board. Sec. 1014. Authority to require reports by regulated entities. Sec. 1015. Disclosure of income and charitable contributions by enterprises. Sec. 1016. Assessments. Sec. 1017. Examiners and accountants. Sec. 1018. Prohibition and withholding of executive compensation. Sec. 1019. Reviews of regulated entities. Sec. 1020. Regulations and orders. Sec. 1021. Non-waiver of privileges. Sec. 1022. Risk-Based capital requirements. Sec. 1023. Minimum and critical capital levels. Sec. 1024. Review of and authority over enterprise assets and liabilities. Sec. 1025. Corporate governance of enterprises. Sec. 1026. Required registration under Securities Exchange Act of 1934. Sec. 1027. Liaison with Financial Institutions Examination Council. Sec. 1028. Guarantee fee study. Sec. 1029. Conforming amendments. Chapter 2—Improvement of Mission Supervision Sec. 1031. Transfer of product approval and housing goal oversight. Sec. 1032. Review of enterprise products. Sec. 1033. Conforming loan limits. Sec. 1034. Annual housing report regarding regulated entities. Sec. 1035. Annual reports by regulated entities on affordable housing stock. Sec. 1036. Mortgagor identification requirements for mortgages of regulated entities. Sec. 1037. Revision of housing goals. Sec. 1038. Duty to serve underserved markets. Sec. 1039. Monitoring and enforcing compliance with housing goals. Sec. 1040. Consistency with mission. Sec. 1041. Enforcement. Sec. 1042. Conforming amendments. Chapter 3—Prompt Corrective Action Sec. 1045. Capital classifications. Sec. 1046. Supervisory actions applicable to undercapitalized regulated entities. Sec. 1047. Supervisory actions applicable to significantly undercapitalized regulated entities. Sec. 1048. Authority over critically undercapitalized regulated entities. Sec. 1049. Conforming amendments. Chapter 4—Enforcement Actions Sec. 1051. Cease-and-desist proceedings. Sec. 1052. Temporary cease-and-desist proceedings. Sec. 1053. Prejudgment attachment. Sec. 1054. Enforcement and jurisdiction. Sec. 1055. Civil money penalties. Sec. 1056. Removal and prohibition authority. Sec. 1057. Criminal penalty. Sec. 1058. Subpoena authority. Sec. 1059. Conforming amendments. Chapter 5—General Provisions Sec. 1061. Boards of enterprises. Sec. 1062. Report on portfolio operations, safety and soundness, and mission of enterprises. Sec. 1063. Conforming and technical amendments. Sec. 1064. Study of alternative secondary market systems. Sec. 1065. Effective date. Subtitle B—Federal home loan banks Sec. 1071. Definitions. Sec. 1072. Directors. Sec. 1073. Federal Housing Finance Agency oversight of Federal Home Loan Banks. Sec. 1074. Joint activities of Banks. Sec. 1075. Sharing of information between Federal Home Loan Banks. Sec. 1076. Reorganization of Banks and voluntary merger. Sec. 1077. Securities and Exchange Commission disclosure. Sec. 1078. Community financial institution members. Sec. 1079. Technical and conforming amendments. Sec. 1080. Study of affordable housing program use for long-term care facilities. Sec. 1081. Effective date. Subtitle C—Transfer of functions, personnel, and property of Office of Federal Housing Enterprise Oversight, Federal Housing Finance Board, and Department of Housing and Urban Development Chapter 1—Office of Federal Housing Enterprise Oversight Sec. 1085. Abolishment of OFHEO. Sec. 1086. Continuation and coordination of certain regulations. Sec. 1087. Transfer and rights of employees of OFHEO. Sec. 1088. Transfer of property and facilities. Chapter 2—Federal Housing Finance Board Sec. 1091. Abolishment of the Federal Housing Finance Board. Sec. 1092. Continuation and coordination of certain regulations. Sec. 1093. Transfer and rights of employees of the Federal Housing Finance Board. Sec. 1094. Transfer of property and facilities. Chapter 3—Department of Housing and Urban Development Sec. 1095. Termination of enterprise-related functions. Sec. 1096. Continuation and coordination of certain regulations. Sec. 1097. Transfer and rights of employees of Department of Housing and Urban Development. Sec. 1098. Transfer of appropriations, property, and facilities.
<enum>I</enum><header>Licensing System for Residential Mortgage Loan Originators</header> <section id="HE4A71A05D6BD4764831F1CB64F65A637"><enum>101.</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="HAE94612311274CD4BF93A6296138A515"><enum>(1)</enum><text>Provides uniform license applications and reporting requirements for State-licensed loan originators.</text> </paragraph><paragraph id="HBE13B36F75BD438A000651669665C147"><enum>(2)</enum><text>Provides a comprehensive licensing and supervisory database.</text> </paragraph><paragraph id="HB01AD6E524E449DD9C5BFF5858C2C8E"><enum>(3)</enum><text>Aggregates and improves the flow of information to and between regulators.</text> </paragraph><paragraph id="HCACD7F2DE9AB49D69697B28BCDC9417D"><enum>(4)</enum><text>Provides increased accountability and tracking of loan originators.</text> </paragraph><paragraph id="HD9A0C748106446BA817FBC1E2809508E"><enum>(5)</enum><text>Streamlines the licensing process and reduces the regulatory burden.</text> </paragraph><paragraph id="H5B1EC945E6E4443DA09DE9FC7DEF6D28"><enum>(6)</enum><text>Enhances consumer protections and supports anti-fraud measures.</text> </paragraph><paragraph id="HAD1AC98EC70649A38EDFDB367FCBBD4B"><enum>(7)</enum><text>Provides consumers with easily accessible information regarding the employment history of, and publicly adjudicated disciplinary and enforcement actions against, loan originators.</text> </paragraph></section><section display-inline="no-display-inline" id="HBC3F0603AF9A4076834504B5F98EF20" section-type="subsequent-section"><enum>102.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, the following definitions shall apply:</text> <paragraph id="HEE13B7672F7D4EEAA2893D6C8BF44999"><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="H5FAC358EA2A04056A1AFC6D9551C7474"><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="H31360BE5E813469BA88D66AAABCB5CCF"><enum>(3)</enum><header>Loan originator</header> <subparagraph id="HC2020B03A7CC47A4A45652F4FAE415B6"><enum>(A)</enum><header>In general</header><text>The term <term>loan originator</term>—</text> <clause id="H6B230116835B4AECA23F2DF1007891F6"><enum>(i)</enum><text>means an individual who—</text> <subclause id="HFA6A6E1D48CA4B88836FC995EF2C7B80"><enum>(I)</enum><text>takes a residential mortgage loan application;</text> </subclause><subclause id="HA91A7A7841324319A5F55E5BB1ED6692"><enum>(II)</enum><text>assists a consumer in obtaining or applying to obtain a residential mortgage loan; or</text> </subclause><subclause id="H74917C97A193493BB7AF66700C8A372"><enum>(III)</enum><text>offers or negotiates terms of a residential mortgage loan, for direct or indirect compensation or gain, or in the expectation of direct or indirect compensation or gain;</text> </subclause></clause><clause id="HAC385BE603114B05BADD11DA79809FB0"><enum>(ii)</enum><text display-inline="yes-display-inline">includes any individual who represents 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 provide or perform any of the activities described in clause (i);</text> </clause><clause id="H91DDE4786EA844659702248B76918C3E"><enum>(iii)</enum><text display-inline="yes-display-inline">does not include any individual who is not otherwise described in clause (i) or (ii) and who performs purely administrative or clerical tasks on behalf of a person who is described in any such clause;</text> </clause><clause id="HC4E8DCEF32014F8B83225411C1DCDFFF"><enum>(iv)</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.</text> </clause></subparagraph><subparagraph id="H8F76F84A6B2145F5AE0125A3083C9EA1"><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="H832D0AD7CC8E4EB1B5C1FBFD688DBF86"><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="H9F8E70AE7355411C8982D1F1D8884B42"><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="HBC5D2CD7203744C79853FF1E1E24B5A5"><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="H63149608D54E41A094C3A2137FF5D6FF"><enum>(ii)</enum><text>listing or advertising real property for sale, purchase, lease, rental, or exchange;</text> </clause><clause id="H43C61A35D59C44C6ACAD4CABF54E0040"><enum>(iii)</enum><text>providing advice in connection with sale, purchase, lease, rental, or exchange of real property;</text> </clause><clause id="H51E831D5C16B40979967CB55E40779A3"><enum>(iv)</enum><text>bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;</text> </clause><clause id="H65FD3F6480B84C79AF04242D5B5EC3EE"><enum>(v)</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="HB6692A8238B5499FB52B8C5BA9D4A896"><enum>(vi)</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="HE99C651247294BCE00CB62F4CB680017"><enum>(vii)</enum><text>offering to engage in any activity, or act in any capacity, described in clause (i), (ii), (iii), (iv), (v), or (vi).</text> </clause></subparagraph></paragraph><paragraph id="HABCB21748479446E8337251FF098E2D4"><enum>(4)</enum><header>Loan processor or underwriter</header> <subparagraph id="HDE7DC5282E2B4C4A93F796DB699FD8DC"><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="H901FD0C7A9FC47CB96857831B2ADF014"><enum>(i)</enum><text>a State-licensed loan originator; or</text> </clause><clause id="HD80D28B5FFE64467AC6D56DF33D3960"><enum>(ii)</enum><text>a registered loan originator.</text> </clause></subparagraph><subparagraph id="H8DE3997D6400484E876819F6C7ECA3AC"><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="HE28E4F33656B473C8EAEBCB8D3BA76C0"><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="H6A3436BF208E4ED2933F4E38C8854F92"><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="H2D4607B3AFBE46F9AB5EBA23F06F0051"><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 108.</text> </paragraph><paragraph id="H2A0FD6FF809545019664AAD3425F31CB"><enum>(6)</enum><header>Registered loan originator</header><text>The term <term>registered loan originator</term> means any individual who—</text> <subparagraph id="H777DE0ADB8AC4F448B15471071A3A860"><enum>(A)</enum><text>meets the definition of loan originator and is an employee of a depository institution or a subsidiary of a depository institution; and</text> </subparagraph><subparagraph id="HD498040175BF4EAB878F426BD904BEDF"><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="H27D9A0DD42724416A734AA029E140310"><enum>(7)</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="H225C545DC0154B68B33C703607A5BB5D"><enum>(8)</enum><header>Secretary</header><text>The term <quote>Secretary</quote> means the Secretary of Housing and Urban Development.</text> </paragraph><paragraph id="HA0962EF0181941D2AA4F5607A5AE354B"><enum>(9)</enum><header>State-licensed loan originator</header><text>The term <term>State-licensed loan originator</term> means any individual who—</text> <subparagraph id="H11868F8C1EFA4519B1E01D2006F454F9"><enum>(A)</enum><text>is a loan originator;</text> </subparagraph><subparagraph id="H61F51096C7E040BC9CDF5F597190604B"><enum>(B)</enum><text>is not an employee of a depository institution or any subsidiary of a depository institution; and</text> </subparagraph><subparagraph id="HD1765A81D188450DA028338C09975152"><enum>(C)</enum><text display-inline="yes-display-inline">is licensed by a State or by the Secretary under section 107 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="H47F57AFB7CD345E3A5A0701642AB0045"><enum>(10)</enum><header>Unique identifier</header><text display-inline="yes-display-inline">The term <term>unique identifier</term> means a number or other identifier that—</text> <subparagraph id="HFCB966FD9D474FF3BB93589E8B3B346D"><enum>(A)</enum><text>permanently identifies a loan originator; and</text> </subparagraph><subparagraph id="HB6B0A56D57D54AAAB98CEAA2BF04C7A"><enum>(B)</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.</text> </subparagraph></paragraph></section><section id="H44C222F6D6B04808947F627890740600"><enum>103.</enum><header>License or registration required</header> <subsection id="H0D3F485D2F0B4B9282D800AE08B6AEB3"><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="H8F9E60760FE340F08E5230A2C6FA3948"><enum>(1)</enum><text>obtaining and maintaining—</text> <subparagraph id="H9C6FE0AE91F8452E9B65538B927569B9"><enum>(A)</enum><text>a registration as a registered loan originator; or</text> </subparagraph><subparagraph id="H47B3D483EB6046700012D6AF3ED38766"><enum>(B)</enum><text>a license and registration as a State-licensed loan originator; and</text> </subparagraph></paragraph><paragraph id="H691CC86582414BA1AA00C4FA4208097"><enum>(2)</enum><text>obtaining a unique identifier.</text> </paragraph></subsection><subsection id="H3F9CDD5503C2401900B408A633AC12E5"><enum>(b)</enum><header>Loan processors and underwriters</header> <paragraph id="H69A7324F82FB40D2AF59031C191D1D69"><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 or a registered loan originator.</text> </paragraph><paragraph id="H89F7BAEF5EA747B882BD00AAE6C16B0"><enum>(2)</enum><header>Independent contractors</header><text display-inline="yes-display-inline">A loan processor or underwriter may not work as an independent contractor unless such processor or underwriter is a State-licensed loan originator or a registered loan originator.</text> </paragraph></subsection></section><section id="H0A0265C8E65F4667AC133000397907E7"><enum>104.</enum><header>State license and registration application and issuance</header> <subsection id="H174609A8533248AA9885A6E6DACB76"><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="H5153220E0AA342B49F6407BD9BE21ED"><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="H5E61E6D9E804424398EDDFCEA1A8C41E"><enum>(2)</enum><text>personal history and experience, including authorization for the System to obtain—</text> <subparagraph id="H62906A5A84024BEEB60087658E1B371E"><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="H34A941A20F3343749F471085E351FAE9"><enum>(B)</enum><text>information related to any administrative, civil or criminal findings by any governmental jurisdiction.</text> </subparagraph></paragraph></subsection><subsection id="H073BD948B7F541DF9481B5E368CF300"><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="HF2DBE2A1F551488F9F3923C85EBB1E55"><enum>(1)</enum><text>The applicant has not had a loan originator or similar license revoked in any governmental jurisdiction during the 5-year period immediately preceding the filing of the present application.</text> </paragraph><paragraph id="H52D895B279CE4DADA517631000DC4965"><enum>(2)</enum><text display-inline="yes-display-inline">The applicant has not been convicted, pled guilty or nolo contendere in a domestic, foreign, or military court of a felony during the 7-year period immediately preceding the filing of the present application.</text> </paragraph><paragraph id="HDDBF5D052ACE44C887C67575C2EE458C"><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="H7D028D8D3ABD410B92150268E393D3CD"><enum>(4)</enum><text>The applicant has completed the pre-licensing education requirement described in subsection (c).</text> </paragraph><paragraph id="HD3C1EC5ECDA54733A0B888F4845F6E61"><enum>(5)</enum><text>The applicant has passed a written test that meets the test requirement described in subsection (d).</text> </paragraph></subsection><subsection id="H509B29226A8B442CA1D2C4795B95444F"><enum>(c)</enum><header>Pre-licensing education of loan originators</header> <paragraph id="HFBA21B30A4944210AD2792C6D66EE0D"><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 3 hours of Federal law and regulations and 3 hours of ethics which shall include instruction on fraud, consumer protection and fair lending issues.</text> </paragraph><paragraph id="HD559A638019C469EAAC751F506EB7555"><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 published by the Nationwide Mortgage Licensing System and Registry.</text> </paragraph><paragraph id="HF5DA9906893F4371AAC2AAF389C87E7C"><enum>(3)</enum><header>Limitation and standards</header> <subparagraph id="HDF8308132DDB4C7BB6382E83E2665524"><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="HAA85057A422041CAB3C82E239B93EE1"><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="H0A04F2C145004A5E894C31C395FD4BF"><enum>(d)</enum><header>Testing of loan originators</header> <paragraph id="H2898C7A38C4F476B9817A3320D89826"><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="HD30EBB26C1EE45E6BF9FD2609DA2DEFA"><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—</text> <subparagraph id="HC5CF607624B943C8947268EFBDE7E200"><enum>(A)</enum><text>the test consists of a minimum of 100 questions; and</text> </subparagraph><subparagraph id="H922C0C115A9E489B92983D67B34C7F00"><enum>(B)</enum><text>the test adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including—</text> <clause id="HCFB3A266D5F8465396B665A3C7E44CA7"><enum>(i)</enum><text>ethics;</text> </clause><clause id="H1730E05BBF4F4E1A9F14AEC605A9C490"><enum>(ii)</enum><text>Federal law and regulation pertaining to mortgage origination;</text> </clause><clause id="H26AF369F83DD40F5886D681CAADD3D87"><enum>(iii)</enum><text>State law and regulation pertaining to mortgage origination; and</text> </clause><clause id="H390FF930CFF84D9787AEF94F1025F7F8"><enum>(iv)</enum><text display-inline="yes-display-inline">Federal and State law and regulation, including instruction on fraud, consumer protection, and fair lending issues.</text> </clause></subparagraph></paragraph><paragraph id="HE605031D20584CB4BEE82B249CC89100"><enum>(3)</enum><header>Minimum competence</header> <subparagraph id="H3D0DD8F19DC94C7F903441B713A4CC52"><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="HDB1C2A42C31943BD9C95348F001DA6E8"><enum>(B)</enum><header>Initial retests</header><text>An individual may retake a test 3 consecutive times with each consecutive taking occurring in less than 14 days after the preceding test.</text> </subparagraph><subparagraph id="HB646157DB1004B1B876F49113E54AB6"><enum>(C)</enum><header>Subsequent retests</header><text>After 3 consecutive tests, an individual shall wait at least 14 days before taking the test again.</text> </subparagraph><subparagraph id="H1192145BB01A4A0AADA8C3B2AB23556"><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></section><section id="HE7A8BA22A93C44E199A13B58655BD11"><enum>105.</enum><header>Standards for State license renewal</header> <subsection id="HA1057D7585844606911DE8731580DEB4"><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="H6A2BF5D9F5094AB584F4EB30BFC82DE"><enum>(1)</enum><text>The loan originator continues to meet the minimum standards for license issuance.</text> </paragraph><paragraph id="H1553E3B88B2C412E876DFB53A1B00F4"><enum>(2)</enum><text>The loan originator has satisfied the annual continuing education requirements described in subsection (b).</text> </paragraph></subsection><subsection id="HA1E960A5FE6E4C64977F92A4F166A4EF"><enum>(b)</enum><header>Continuing education for state-licensed loan originators</header> <paragraph id="H3A836E91BB7D465690D8F54E12C8F7A4"><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 3 hours of Federal law and regulations and 2 hours of ethics, including education on fraud, consumer protection, and fair lending issues.</text> </paragraph><paragraph id="H300C046AED924BFAAC10AA46316EB7F3"><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 published by the Nationwide Mortgage Licensing System and Registry.</text> </paragraph><paragraph id="H5791AE78554843F58B59F5F985AF00E5"><enum>(3)</enum><header>Calculation of continuing education credits</header><text display-inline="yes-display-inline">A State-licensed loan originator—</text> <subparagraph id="HEDDE479C5BA841308D00182C5489C558"><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="H63184680388743C2A6644DACD0478E00"><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="H4CAEF0ABBDC948FBACAC4205BAA53BB6"><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="H99EA516D65C0489593F34605CF77020"><enum>(5)</enum><header>Limitation and standards</header> <subparagraph id="H49452DE4C274496B994E9209F8C30027"><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 id="H653B8D3B1C2E4D3DBFEB9F69EEAF00DE"><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="H20D00289BC3D460CBEC274ACBF7CA397"><enum>106.</enum><header>System of registration administration by Federal banking agencies</header> <subsection id="H89C0059D49F64BF988D271941529DABF"><enum>(a)</enum><header>Development</header> <paragraph id="HAC2D778CF673402CA11516AAD4A41E47"><enum>(1)</enum><header>In general</header><text>The Federal banking agencies shall jointly develop and maintain a system for registering employees of depository institutions or subsidiaries of depository institutions 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 the enactment of this Act.</text> </paragraph><paragraph id="HF5D6F5F9973640638177631507F51B5F"><enum>(2)</enum><header>Registration requirements</header><text display-inline="yes-display-inline">In connection with the registration of any loan originator who is an employee of a depository institution or a subsidiary of a depository institution with the Nationwide Mortgage Licensing System and Registry, the appropriate Federal banking agency 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="HC64E6652C450457B9EEBA284854927C"><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="HC89DDD68EEEE4C81AD2BE3BB2EB7932"><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="H7AC605403D144479B05036B2E8859DBF"><enum>(b)</enum><header>Coordination</header> <paragraph id="HDA0B1427D2E8428397E6006DBA7FC0B5"><enum>(1)</enum><header>Unique identifier</header><text>The Federal banking agencies, through the Financial Institutions Examination Council, 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="H8C856CFCF2434BBEBB1100A564BE4320"><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, 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="H1FAEFD6060B44D31A1EEC77B881EB6E"><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 103(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="H24BC886AF01248E2B44B90BC2749B75F"><enum>107.</enum><header>Secretary of Housing and Urban Development backup authority to establish a loan originator licensing system</header> <subsection id="HB5B9C489DDE443E08E53617E1F024FB1"><enum>(a)</enum><header>Back up 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 Act 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 104 and 105 and subsection (d) 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="HD32AB3FD2FEB46C5BC3C5997C292438"><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 104 and 105 for State-licensed loan originators.</text> </subsection><subsection display-inline="no-display-inline" id="HC2D3036DEB98421EABD73268DBC557F1"><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="H668B0C61E8EC481AB0E4DD95AB981EEE"><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="HF00456E870B84D69BB264D2258E50228"><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="H8586FB86110B4FBE0083C8BAB8570010"><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="HE452447E6AFB4D2089BD2DF5A346E61"><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></subsection><subsection commented="no" id="HDB82AC531A5545FCA301169B77692DA4"><enum>(e)</enum><header>Temporary extension of period</header><text display-inline="yes-display-inline">The Secretary may extend, by not more than 6 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 104 and 105 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="H498BFEAB22B54C7D8F5ED9F350EE3766"><enum>(f)</enum><header>Limitation on HUD-licensed loan originators</header><text>Any loan originator who is licensed by the Secretary under a system established under this section for any State may not use such license to originate loans in any other State.</text> </subsection></section><section id="H9B621E8AFD5341948067B6F7BB951B11"><enum>108.</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="H206F168B87FF4839A04F39033F40FD9D"><enum>109.</enum><header>Fees</header><text display-inline="no-display-inline">The Federal banking agencies, 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 such fees are not charged to consumers for access such system and registry.</text> </section><section id="HA3C5D971B0F44BACAFF662CA4EC43EF"><enum>110.</enum><header>Background checks of loan originators</header> <subsection id="HE697815914AA412EA5F10170E50BFE8"><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="H76146E22A44448E399A1040938F97D2"><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="H6046559BD4A146EBB999B1303B105085"><enum>111.</enum><header>Confidentiality of information</header> <subsection id="H80E10218DF184DFC9F9DF09FDF55CE14"><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 108, 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="HCBCE6FD47C7F4B12A460004779F594DF"><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="H0FCC221A6002451781DA979676075380"><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="HE5ABF905F7DF4E059B71F10087A61D21"><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="H68A36B84F3364A58BCD86E992D8E9D43"><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="HABC1BB32D45045F598B4529CBA3CC100"><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="H7ABF406CEDD044CA8F519CADCF1639CB"><enum>112.</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 108, 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="H98C4536E0AE84B6FB33380F7BA004600" section-type="subsequent-section"><enum>113.</enum><header>Enforcement under HUD backup licensing system</header> <subsection id="HC2533F5146D341760053019CC7C4AC00"><enum>(a)</enum><header>Summons authority</header><text display-inline="yes-display-inline">The Secretary may—</text> <paragraph id="H67FABCAD5F9B4F20B3D6722CD64E3847"><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 107; and</text> </paragraph><paragraph id="H1FB4F1AAD9AE4418AAEB042362E6264E"><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="H85372AD24751440CB343A8F3DA390721"><enum>(b)</enum><header>Examination authority</header> <paragraph id="HA7E5E544C14F41DDAD97D918D0D7772B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">If the Secretary establishes a licensing system under section 107 for any State, the Secretary shall appoint examiners for the purposes of administering such section.</text> </paragraph><paragraph id="H905BA7640B604E789498E8E0EF75ADB9"><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 107 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="HBB69D61C4F58421697B5E3CED6F67C9C"><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="H22AB2B96FA1C40019519AE4C352471E1"><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 107, 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="H99D7FCCAE7FE4017ABEED87BBE1D0A0"><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 107 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="H2AD6B191CD1B4C5CAF389B001B5319D2"><enum>(c)</enum><header>Cease and desist proceeding</header> <paragraph id="HADADA028B0FA4A57BA79502D3CFEBC5E"><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 107, 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="HEDC591B44F1A45A4B34C0586E200CCB0"><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="H55B1CA4A0D204EF1A47466114D933E02"><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="H9FC36FF1FE72492C96DC8D6982357284"><enum>(4)</enum><header>Review of temporary orders</header> <subparagraph id="H926EE850B3644C9296A5876D02E93F00"><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="H8055F9D8EA5346A9AB40326EEF00F39F"><enum>(B)</enum><header>Judicial review</header><text>Within—</text> <clause id="HB3D6B6779247439F96C2246F45646E6E"><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="H418B4FFB4D1549DC83731CC58B9BEC37"><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="H7C4DBB3B2869478FA8485B065100B937"><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="H82E6C8B255CF4648A681B2C5300286F"><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="HAF548D92032445029900002797D4F03"><enum>(d)</enum><header>Authority of the secretary To assess money penalties</header> <paragraph id="H3E74ABF6C85A4F45994853A228A65C4"><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 licensing system established by the Secretary under section 107 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="HAE9D789B7C6F4FE7BDC3F1D9FC363DAE"><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 $5,000 for each day the violation continues.</text> </paragraph></subsection></section><enum>II</enum><header>Residential Mortgage Loan Disclosures</header> <section id="HE5E7CC882ADB43E78209069BECBB7436" section-type="subsequent-section"><enum>201.</enum><header>Required disclosures</header> <subsection id="HD40249CBFD4C45FA843212B8D6F84F04"><enum>(a)</enum><header>Additional information</header><text>Section 128(a) of Truth in Lending Act (15 U.S.C. 1638(a)) is amended by adding at the end the following new paragraphs:</text> <quoted-block display-inline="no-display-inline" id="H4BF502D8858A49ED94629EC064EA71AC" style="OLC"> <paragraph id="HC2AE0F283A5B4E7C90AF06207E162326"><enum>(16)</enum><text display-inline="yes-display-inline">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 under this subsection, the disclosures provided under this subsection shall state the maximum amount of the regular required payments on the loan, based on the maximum interest rate allowed, introduced with the following language in conspicuous type size and format:<quote>Your payment can go as high as $__</quote>, the blank to be filled in with the maximum possible payment amount.</text> </paragraph><paragraph id="H7BE05121F233494F8EFCE4A772E5DB21"><enum>(17)</enum><text display-inline="yes-display-inline">In the case of a residential mortgage loan for which an escrow or impound account will be established for the payment of all applicable taxes, insurance, and assessments, the following statement: <quote>Your payments will be increased to cover taxes and insurance. In the first year, you will pay an additional $__ [insert the amount of the monthly payment to the account] every month to cover the costs of taxes and insurance.</quote>.</text> </paragraph><paragraph id="H8DB885A99E5F40FF8586B217BBC884C5"><enum>(18)</enum><text display-inline="yes-display-inline">In the case of a variable rate residential mortgage loan for which an escrow or impound account will be established for the payment of all applicable taxes, insurance, and assessments—</text> <subparagraph id="H559112F0531442128DFB9BC4A6E6A05D"><enum>(A)</enum><text display-inline="yes-display-inline">the amount of initial monthly payment due under the loan for the payment of principal and interest, and the amount of such initial monthly payment including the monthly payment deposited in the account for the payment of all applicable taxes, insurance, and assessments; and</text> </subparagraph><subparagraph id="H28F0550251284ACA9836EB1F4F3422BC"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of the fully indexed monthly payment due under the loan for the payment of principal and interest, and the amount of such fully indexed monthly payment including the monthly payment deposited in the account for the payment of all applicable taxes, insurance, and assessments.</text> </subparagraph></paragraph><paragraph id="H9A91B9F51EE341C7BE7CF795D4DAF7CB"><enum>(19)</enum><text display-inline="yes-display-inline">In the case of a residential mortgage loan, the aggregate amount of settlement charges for all settlement services provided in connection with the loan, the amount of charges that are included in the loan and the amount of such charges the borrower must pay at closing, the approximate amount of the wholesale rate of funds in connection with the loan, and the aggregate amount of other fees or required payments in connection with the loan.</text> </paragraph><paragraph id="HA25ECFA0633C4340A38D007E15B9D714"><enum>(20)</enum><text display-inline="yes-display-inline">In the case of a residential mortgage loan, the aggregate amount of fees paid to the mortgage originator in connection with the loan, the amount of such fees paid directly by the consumer, and any additional amount received by the originator from the creditor based on the interest rate of the loan.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9C24A01D0412476D922E3560E17225AC"><enum>(b)</enum><header>Timing</header><text>Section 128(b) of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HCFD987F5DBE440AEAC883C4C2EAE6503" style="OLC"> <paragraph id="H672135A880C24103BA02368BA7BFE464"><enum>(4)</enum><header>Residential mortgage loan disclosures</header><text display-inline="yes-display-inline">In the case of a residential mortgage loan, the information required to be disclosed under subsection (a) with respect to such loan shall be disclosed before the earlier of—</text> <subparagraph id="H3FBE185D3B3D4BF6972505229C59BBA1"><enum>(A)</enum><text>the time required under the first sentence of paragraph (1); or</text> </subparagraph><subparagraph id="HB4A8A6D556604A0D8EBA116F769D0005"><enum>(B)</enum><text>the end of the 3-day period beginning on the date the application for the loan from a consumer is received by the creditor.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H063068C1274A49CA99CFDBFB0068B552"><enum>(c)</enum><header>Enhanced mortgage loan 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="HA8BA64BDAE7E4E48961BA7006E9DCE"><enum>(1)</enum><text>by striking <quote>(2) In the</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H6AFF05D74B974E2EB8F8BAF324002DDF" style="OLC"> <paragraph id="H0C87CD2DBA83471887D9A0BFF08B2570"><enum>(2)</enum><header>Mortgage disclosures</header> <subparagraph id="H0799DF6821364ED99600AFB18BC0D7E8"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H66471E94748D46CE89779290D575AE76"><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="HE156156D76CC4E1B00CB0000F8AFACE7"><enum>(3)</enum><text>by striking <quote>shall be made in accordance</quote> and all that follows through <quote>extended, or</quote>;</text> </paragraph><paragraph id="HF5C4E4C4B00848B88E69E8000354F19"><enum>(4)</enum><text>by striking <quote>If the</quote> and all that follows through the end of the paragraph and inserting the following new subparagraphs:</text> <quoted-block display-inline="no-display-inline" id="HFD9EA5BFFCEA49B5964571443B8525B4" style="OLC"> <subparagraph id="H4309B3DF05C4489800E0E8B200FF2775"><enum>(B)</enum><header>Statement and timing of disclosures</header><text display-inline="yes-display-inline">In the case of an extension of credit that is secured by the dwelling of a consumer, in addition to the other disclosures required by subsection (a), the disclosures provided under this paragraph shall 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>.</text> <clause id="H6D049001310D461CAA31336D5B2057EB"><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="HDA9F8B3EAFD14D6984ECF796DADA4DCD"><enum>(ii)</enum><text>be furnished to the borrower not later than 7 business days before the date of consummation of the transaction, subject to subparagraph (D).</text> </clause></subparagraph><subparagraph id="HCB5A569479D74F62AEDFEFB66290F865"><enum>(C)</enum><header>Variable rates or payment schedules</header><text display-inline="yes-display-inline">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 paragraph shall label the payment schedule as follows: <quote>Payment Schedule: Payments Will Vary Based on Interest Rate Changes.</quote>.</text> </subparagraph><subparagraph id="HBCD2928FA1AF41ACB3817BD26760D9D8"><enum>(D)</enum><header>Updating apr</header><text>In any case in which the disclosure statement provided 7 business days before the date of consummation of the transaction 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><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H1035E9A7D5B94E48A939295310009F00"><enum>202.</enum><header>Disclosures required in monthly statements for residential mortgage loans</header><text display-inline="no-display-inline">Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H5EED233913B64F74AE00234000780195" style="OLC"> <subsection id="H4610CDB294104EC18B57E16C2ECAA3B8"><enum>(e)</enum><header>Periodic statements for residential mortgage loans</header> <paragraph id="HBA1F9095B51448179430C1F327A8F76"><enum>(1)</enum><header>In general</header><text>The creditor, assignee, or servicer with respect to any residential mortgage loan shall transmit to the obligor, for each billing cycle, a statement setting forth each of the following items, to the extent applicable, in a conspicuous and prominent manner:</text> <subparagraph id="H00C5B8C0FF914D94B046CB9E731FBF6E"><enum>(A)</enum><text display-inline="yes-display-inline">The amount of the principal obligation under the mortgage.</text> </subparagraph><subparagraph id="HBC96C1E7E24545C2832CD0740613B27"><enum>(B)</enum><text>The current interest rate in effect for the loan.</text> </subparagraph><subparagraph id="H4AD496E4361F42F5AEE25E052E471C86"><enum>(C)</enum><text>The date on which the interest rate may next reset or adjust.</text> </subparagraph><subparagraph id="H3FD0ED45BACA4CFFB322E8036FDA009F"><enum>(D)</enum><text>The amount of any prepayment fee to be charged, if any.</text> </subparagraph><subparagraph id="HDE9A74C01DC445BCAC0021CBD503F"><enum>(E)</enum><text>A description of any late payment fees.</text> </subparagraph><subparagraph id="H8FCC9F7F2C2440679182EE193830C4F0"><enum>(F)</enum><text>A telephone number and electronic mail address that may be used by the obligor to obtain information regarding the mortgage.</text> </subparagraph><subparagraph id="H5C3F61553E4A46C0B5A9D15D13D3C11C"><enum>(G)</enum><text>Such other information as the Board may prescribe in regulations.</text> </subparagraph></paragraph><paragraph id="HD755EF8B767C456495E2A4E1E4AE6D28"><enum>(2)</enum><header>Development and use of standard form</header><text display-inline="yes-display-inline">The Federal banking agencies shall jointly develop and prescribe a standard form for the disclosure required under this subsection, taking into account that the statements required may be transmitted in writing or electronically.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><enum>III</enum><header>Office of Housing Counseling</header> <section id="H2F0164F9613F47B6894E34E5B4EF998F"><enum>301.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote>Expand and Preserve Home Ownership Through Counseling Act</quote>.</text> </section><section id="H31DBEA1A5BB04F858696F576CFE51C4"><enum>302.</enum><header>Establishment of Office of Housing Counseling</header><text display-inline="no-display-inline">Section 4 of the Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> (42 U.S.C. 3533) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing" id="H530FC55AEDF643C29C801698AA102F52"> <subsection id="H2B56288BF1C2473D839BAD6C7B033194"><enum>(g)</enum><header>Office of Housing Counseling</header> <paragraph id="HA96FDD3F09824278A5FD8590027DAD5"><enum>(1)</enum><header>Establishment</header><text>There is established, in the Office of the Secretary, the Office of Housing Counseling.</text> </paragraph><paragraph id="H904E13B3E04C4F1CAD5697BBCD92B00"><enum>(2)</enum><header>Director</header><text>There is established the position of Director of Housing Counseling. The Director shall be the head of the Office of Housing Counseling and shall be appointed by the Secretary. Such position shall be a career-reserved position in the Senior Executive Service.</text> </paragraph><paragraph id="HE74FAF7534144AA7AA03C6C457D97213"><enum>(3)</enum><header>Functions</header> <subparagraph id="HD1EF568EEA104D9B92A4CFD34EEF0017"><enum>(A)</enum><header>In general</header><text>The Director shall have ultimate responsibility within the Department, except for the Secretary, for all activities and matters relating to homeownership counseling and rental housing counseling, including—</text> <clause id="H4E6E4AFD928548898B51374E16C90960"><enum>(i)</enum><text>research, grant administration, public outreach, and policy development relating to such counseling; and</text> </clause><clause id="H62875D6214CC48A1AF0445B22D235891"><enum>(ii)</enum><text>establishment, coordination, and administration of all regulations, requirements, standards, and performance measures under programs and laws administered by the Department that relate to housing counseling, homeownership counseling (including maintenance of homes), mortgage-related counseling (including home equity conversion mortgages and credit protection options to avoid foreclosure), and rental housing counseling, including the requirements, standards, and performance measures relating to housing counseling.</text> </clause></subparagraph><subparagraph id="HA4C6541BE0A647E0A1351F3CDBC265C8"><enum>(B)</enum><header>Specific functions</header><text display-inline="yes-display-inline">The Director shall carry out the functions assigned to the Director and the Office under this section and any other provisions of law. Such functions shall include establishing rules necessary for—</text> <clause id="H88AADBC2C3D5495FB5B7009E9BAEA26"><enum>(i)</enum><text>the counseling procedures under section 106(g)(1) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(h)(1)</external-xref>);</text> </clause><clause id="H2828AAC4C0214BA48B86C014A5C6D9E3"><enum>(ii)</enum><text>carrying out all other functions of the Secretary under section 106(g) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968, including the establishment, operation, and publication of the availability of the toll-free telephone number under paragraph (2) of such section;</text> </clause><clause id="HFEED5DF3AEF7428D81FB5D7FC7CA4000"><enum>(iii)</enum><text>carrying out section 5 of the Real Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2604">12 U.S.C. 2604</external-xref>) for home buying information booklets prepared pursuant to such section;</text> </clause><clause id="H7D3E3ABD941346528FE354D9D23100D6"><enum>(iv)</enum><text>carrying out the certification program under section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(e)</external-xref>);</text> </clause><clause id="HF07794D1413748BE8424BA48EEFF1E4B"><enum>(v)</enum><text>carrying out the assistance program under section 106(a)(4) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968, including criteria for selection of applications to receive assistance;</text> </clause><clause id="H68AB9FC31BD44288BD44D467A9587066"><enum>(vi)</enum><text>carrying out any functions regarding abusive, deceptive, or unscrupulous lending practices relating to residential mortgage loans that the Secretary considers appropriate, which shall include conducting the study under section 6 of the Expand and Preserve Home Ownership Through Counseling Act;</text> </clause><clause id="HBC8068E81A3944BA8BA5D7E00811CEC7"><enum>(vii)</enum><text>providing for operation of the advisory committee established under paragraph (4) of this subsection;</text> </clause><clause id="H4E9FE6EA9ABA4A0BA10025263479B2EA"><enum>(viii)</enum><text>collaborating with community-based organizations with expertise in the field of housing counseling; and</text> </clause><clause id="H5081C53769F3475982699051C889F79C"><enum>(ix)</enum><text>providing for the building of capacity to provide housing counseling services in areas that lack sufficient services.</text> </clause></subparagraph></paragraph><paragraph id="H21EB8D58A75A49DB94FA53A0A2B3A101"><enum>(4)</enum><header>Advisory Committee</header> <subparagraph id="H285CD13FE563473397224C4C47CB1EE1"><enum>(A)</enum><header>In general</header><text>The Secretary shall appoint an advisory committee to provide advice regarding the carrying out of the functions of the Director.</text> </subparagraph><subparagraph id="H034D3B9AFAB74097923F7259726B36F"><enum>(B)</enum><header>Members</header><text>Such advisory committee shall consist of not more than 12 individuals, and the membership of the committee shall equally represent all aspects of the mortgage and real estate industry, including consumers.</text> </subparagraph><subparagraph id="HDE96CB753DD3482AA8D0394D59B388D6"><enum>(C)</enum><header>Terms</header><text>Except as provided in subparagraph (D), each member of the advisory committee shall be appointed for a term of 3 years. Members may be reappointed at the discretion of the Secretary.</text> </subparagraph><subparagraph id="H8E83FE469310486DBCA7B7005F33EAA8"><enum>(D)</enum><header>Terms of initial appointees</header><text>As designated by the Secretary at the time of appointment, of the members first appointed to the advisory committee, 4 shall be appointed for a term of 1 year and 4 shall be appointed for a term of 2 years.</text> </subparagraph><subparagraph id="HF81720D24B9949758F24A7C5AB3981"><enum>(E)</enum><header>Prohibition of pay; travel expenses</header><text>Members of the advisory committee shall serve without pay, but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under 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><subparagraph id="HA1FC5203147342778D2999B7EC50DF87"><enum>(F)</enum><header>Advisory role only</header><text>The advisory committee shall have no role in reviewing or awarding housing counseling grants.</text> </subparagraph></paragraph><paragraph id="HEFAFF7066A10446CA89E9D64EBE79CE7"><enum>(5)</enum><header>Scope of homeownership counseling</header><text>In carrying out the responsibilities of the Director, the Director shall ensure that homeownership counseling provided by, in connection with, or pursuant to any function, activity, or program of the Department addresses the entire process of homeownership, including the decision to purchase a home, the selection and purchase of a home, issues arising during or affecting the period of ownership of a home (including refinancing, default and foreclosure, and other financial decisions), and the sale or other disposition of a home.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H360000215810417382253149D0179529"><enum>303.</enum><header>Counseling procedures</header> <subsection id="H00678C14D89E47648C7C3437C6166F12"><enum>(a)</enum><header>In general</header><text>Section 106 of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing" id="H0AFC494E3BAC4D428B4EBF0079C0A055"> <subsection id="HA1508E64E07F4F919C4175F3662E9719"><enum>(g)</enum><header>Procedures and activities</header> <paragraph id="HC51B356BF5F240E8BE098490005B02BF"><enum>(1)</enum><header>Counseling procedures</header> <subparagraph id="H25481C3F8277490D8EC73386C65C4F61"><enum>(A)</enum><header>In general</header><text>The Secretary shall establish, coordinate, and monitor the administration by the Department of Housing and Urban Development of the counseling procedures for homeownership counseling and rental housing counseling provided in connection with any program of the Department, including all requirements, standards, and performance measures that relate to homeownership and rental housing counseling.</text> </subparagraph><subparagraph id="HC62F7D893DB544BB8435E8A97C3B6BEA"><enum>(B)</enum><header>Homeownership counseling</header><text>For purposes of this subsection and as used in the provisions referred to in this subparagraph, the term <term>homeownership counseling</term> means counseling related to homeownership and residential mortgage loans. Such term includes counseling related to homeownership and residential mortgage loans that is provided pursuant to—</text> <clause id="HB3891309812E47F2B200A7CA7DB2F65"><enum>(i)</enum><text>section 105(a)(20) of the <act-name parsable-cite="HCDA">Housing and Community Development Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/5305">42 U.S.C. 5305(a)(20)</external-xref>);</text> </clause><clause id="H549B432B252747C894ACEEBAA576845"><enum>(ii)</enum><text>in the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name>—</text> <subclause id="H37F7C3DA19074A30BDE2AA1985F00F5"><enum>(I)</enum><text>section 9(e) (42 U.S.C. 1437g(e));</text> </subclause><subclause id="H486EBD7C75A543ED9DE5BE56C7F090E2"><enum>(II)</enum><text>section 8(y)(1)(D) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(y)(1)(D)</external-xref>);</text> </subclause><subclause id="HCC94C686781247419FEF23B359129C04"><enum>(III)</enum><text>section 18(a)(4)(D) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437p">42 U.S.C. 1437p(a)(4)(D)</external-xref>);</text> </subclause><subclause id="H184B1B053E8F41799969F9B491C58DD"><enum>(IV)</enum><text>section 23(c)(4) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437u">42 U.S.C. 1437u(c)(4)</external-xref>);</text> </subclause><subclause id="H758A71EFBBCE499FAFADDCF5E3C78BBF"><enum>(V)</enum><text>section 32(e)(4) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437z-4">42 U.S.C. 1437z–4(e)(4)</external-xref>);</text> </subclause><subclause id="HFE70E09A1A1A4B15A32C9712F0A3F0CB"><enum>(VI)</enum><text>section 33(d)(2)(B) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437z-5">42 U.S.C. 1437z–5(d)(2)(B)</external-xref>);</text> </subclause><subclause id="H98B998E60B85453C857425E8DB435446"><enum>(VII)</enum><text>sections 302(b)(6) and 303(b)(7) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437aaa-1">42 U.S.C. 1437aaa–1(b)(6)</external-xref>, 1437aaa–2(b)(7)); and</text> </subclause><subclause id="H1246B0BD8BB94A6BB5CFC642B06ECD52"><enum>(VIII)</enum><text>section 304(c)(4) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437aaa-3">42 U.S.C. 1437aaa–3(c)(4)</external-xref>);</text> </subclause></clause><clause id="HA35013271C58472988C71D3C5640D7A4"><enum>(iii)</enum><text>section 302(a)(4) of the American Homeownership and Economic Opportunity Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note);</text> </clause><clause id="H52F85267F15E450886EA27EA9E32C0C6"><enum>(iv)</enum><text>sections 233(b)(2) and 258(b) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12773">42 U.S.C. 12773(b)(2)</external-xref>, 12808(b));</text> </clause><clause id="HC749160AE7654C189F62AB688BEE2816"><enum>(v)</enum><text>this section and section 101(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x</external-xref>, 1701w(e));</text> </clause><clause id="H2F992DDCE4094EFE97573F50BEDB064C"><enum>(vi)</enum><text>section 220(d)(2)(G) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/12/4110">12 U.S.C. 4110(d)(2)(G)</external-xref>);</text> </clause><clause id="HDBA6FB49D81546739E5B400578943281"><enum>(vii)</enum><text>sections 422(b)(6), 423(b)(7), 424(c)(4), 442(b)(6), and 443(b)(6) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12872">42 U.S.C. 12872(b)(6)</external-xref>, 12873(b)(7), 12874(c)(4), 12892(b)(6), and 12893(b)(6));</text> </clause><clause id="H130D6004EA2A4B1294F9D18752611D77"><enum>(viii)</enum><text>section 491(b)(1)(F)(iii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));</text> </clause><clause id="H5347FB315D7E41DC8900BC74859B1006"><enum>(ix)</enum><text>sections 202(3) and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4132">25 U.S.C. 4132(3)</external-xref>, 4229(b)(2)(A));</text> </clause><clause id="HC84707B0ACA943B0861FE4090000B011"><enum>(x)</enum><text>in the <act-name parsable-cite="NHA">National Housing Act</act-name>—</text> <subclause id="H413C45C41FA741D6AA4985B889C6F94"><enum>(I)</enum><text>in section 203 (12 U.S.C. 1709), the penultimate undesignated paragraph of paragraph (2) of subsection (b), subsection (c)(2)(A), and subsection (r)(4);</text> </subclause><subclause id="H862FEFD967FF4C359442DDD7E05E54F9"><enum>(II)</enum><text>subsections (a) and (c)(3) of section 237 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-2">12 U.S.C. 1715z–2</external-xref>); and</text> </subclause><subclause id="H6E8460DE57D947B0B7009F28008652EF"><enum>(III)</enum><text>subsections (d)(2)(B) and (m)(1) of section 255 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>);</text> </subclause></clause><clause id="HE3A4AC52AC184377A302914CE0E43639"><enum>(xi)</enum><text>section 502(h)(4)(B) of the <act-name parsable-cite="HA49">Housing Act of 1949</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472(h)(4)(B)</external-xref>); and</text> </clause><clause id="HFF3D2EBA23D442C9BF597E3CC904CCF1"><enum>(xii)</enum><text>section 508 of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701z-7">12 U.S.C. 1701z–7</external-xref>).</text> </clause></subparagraph><subparagraph id="HF50015BBB9F7427F85D545CE2CCEEF6"><enum>(C)</enum><header>Rental housing counseling</header><text>For purposes of this subsection, the term <term>rental housing counseling</term> means counseling related to rental of residential property, which may include counseling regarding future homeownership opportunities and providing referrals for renters and prospective renters to entities providing counseling and shall include counseling related to such topics that is provided pursuant to—</text> <clause id="HE925779563AD46E5987B7549F9BC561B"><enum>(i)</enum><text>section 105(a)(20) of the <act-name parsable-cite="HCDA">Housing and Community Development Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/5305">42 U.S.C. 5305(a)(20)</external-xref>);</text> </clause><clause id="H62B296E19854426EB778AC74BE1E7937"><enum>(ii)</enum><text>in the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name>—</text> <subclause id="H85AB980598A44690BFF0B9544A73600"><enum>(I)</enum><text>section 9(e) (42 U.S.C. 1437g(e));</text> </subclause><subclause id="H0C17257991F2471CB8004D63B48799C8"><enum>(II)</enum><text>section 18(a)(4)(D) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437p">42 U.S.C. 1437p(a)(4)(D)</external-xref>);</text> </subclause><subclause id="HC8170E7B8BF6439D85E12BB8CCABEEA8"><enum>(III)</enum><text>section 23(c)(4) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437u">42 U.S.C. 1437u(c)(4)</external-xref>);</text> </subclause><subclause id="HED88726EA71547768FCEA24269918900"><enum>(IV)</enum><text>section 32(e)(4) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437z-4">42 U.S.C. 1437z–4(e)(4)</external-xref>);</text> </subclause><subclause id="HB0A11A6435744AAAB48717E150A39F63"><enum>(V)</enum><text>section 33(d)(2)(B) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437z-5">42 U.S.C. 1437z–5(d)(2)(B)</external-xref>); and</text> </subclause><subclause id="H5976035A34754D3CB000FADAF7D11B1F"><enum>(VI)</enum><text>section 302(b)(6) (<external-xref legal-doc="usc" parsable-cite="usc/42/1437aaa-1">42 U.S.C. 1437aaa–1(b)(6)</external-xref>);</text> </subclause></clause><clause id="HA5E4ADD3833C4D419D03630000D460FC"><enum>(iii)</enum><text>section 233(b)(2) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12773">42 U.S.C. 12773(b)(2)</external-xref>);</text> </clause><clause id="H227F752E5AD74BE9A8C97E81896BC83"><enum>(iv)</enum><text>section 106 of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x</external-xref>);</text> </clause><clause id="H5BF7014AD2F34249ACBF5BADB5748E"><enum>(v)</enum><text>section 422(b)(6) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12872">42 U.S.C. 12872(b)(6)</external-xref>);</text> </clause><clause id="HCD91054F23374733A9D8D97366C4D915"><enum>(vi)</enum><text>section 491(b)(1)(F)(iii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));</text> </clause><clause id="H34E7BC36F3DE4689B700F8F22B07BA8D"><enum>(vii)</enum><text>sections 202(3) and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4132">25 U.S.C. 4132(3)</external-xref>, 4229(b)(2)(A)); and</text> </clause><clause id="H49CA421DC2034829A1104000BFF79D81"><enum>(viii)</enum><text>the rental assistance program under section 8 of the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>).</text> </clause></subparagraph></paragraph><paragraph id="HEFFCAE3D357A47D5BFEA68FCB6E27B82"><enum>(2)</enum><header>Standards for materials</header><text display-inline="yes-display-inline">The Secretary, in conjunction with the advisory committee established under subsection (g)(4) of the Department of Housing and Urban Development Act, shall establish standards for materials and forms to be used, as appropriate, by organizations providing homeownership counseling services, including any recipients of assistance pursuant to subsection (a)(4).</text> </paragraph><paragraph id="H758B7CC882674B1C9DC5972513C6787F"><enum>(3)</enum><header>Mortgage software systems</header> <subparagraph id="H111DF9D794CB4162BED6CC972F213CF2"><enum>(A)</enum><header>Certification</header><text>The Secretary shall provide for the certification of various computer software programs for consumers to use in evaluating different residential mortgage loan proposals. The Secretary shall require, for such certification, that the mortgage software systems take into account—</text> <clause id="H8F2B6EEA048A427F949C933D2CB57650"><enum>(i)</enum><text>the consumer’s financial situation and the cost of maintaining a home, including insurance, taxes, and utilities;</text> </clause><clause id="H84F26DDD0AB448D6B295DDDA528ACC5"><enum>(ii)</enum><text>the amount of time the consumer expects to remain in the home or expected time to maturity of the loan;</text> </clause><clause id="HEFF409FC710B4F3F803D4CF25485322B"><enum>(iii)</enum><text>such other factors as the Secretary considers appropriate to assist the consumer in evaluating whether to pay points, to lock in an interest rate, to select an adjustable or fixed rate loan, to select a conventional or government-insured or guaranteed loan and to make other choices during the loan application process.</text> </clause><continuation-text continuation-text-level="subparagraph">If the Secretary determines that available existing software is inadequate to assist consumers during the residential mortgage loan application process, the Secretary shall arrange for the development by private sector software companies of new mortgage software systems that meet the Secretary’s specifications.</continuation-text></subparagraph><subparagraph id="HB125F144217E4262BD6E3BBCFF20E38E"><enum>(B)</enum><header>Use and initial availability</header><text>Such certified computer software programs shall be used to supplement, not replace, housing counseling. The Secretary shall provide that such programs are initially used only in connection with the assistance of housing counselors certified pursuant to subsection (e).</text> </subparagraph><subparagraph id="HEAF49FA42A8B4A90B4E704A2AF173CC"><enum>(C)</enum><header>Availability</header><text>After a period of initial availability under subparagraph (B) as the Secretary considers appropriate, the Secretary shall take reasonable steps to make mortgage software systems certified pursuant to this paragraph widely available through the Internet and at public locations, including public libraries, senior-citizen centers, public housing sites, offices of public housing agencies that administer rental housing assistance vouchers, and housing counseling centers.</text> </subparagraph></paragraph><paragraph id="H3D7B96DF66484F24A3DE2931388CBB4B"><enum>(4)</enum><header>National public service multimedia campaigns to promote housing counseling</header> <subparagraph id="HBDE3ECAA733A466FA8768C1C9E73E8CE"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of Housing Counseling shall develop, implement, and conduct national public service multimedia campaigns designed to make persons facing mortgage foreclosure, persons considering a subprime mortgage loan to purchase a home, elderly persons, persons who face language barriers, low-income persons, and other potentially vulnerable consumers aware that it is advisable, before seeking or maintaining a residential mortgage loan, to obtain homeownership counseling from an unbiased and reliable sources and that such homeownership counseling is available, including through programs sponsored by the Secretary of Housing and Urban Development.</text> </subparagraph><subparagraph id="H915EC7AECFB1449AB8AB57D17400CBC"><enum>(B)</enum><header>Contact information</header><text display-inline="yes-display-inline">Each segment of the multimedia campaign under subparagraph (A) shall publicize the toll-free telephone number and web site of the Department of Housing and Urban Development through which persons seeking housing counseling can locate a housing counseling agency in their State that is certified by the Secretary of Housing and Urban Development and can provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages.</text> </subparagraph><subparagraph id="HA3AF1606F100402EA602828EB64C9CEE"><enum>(C)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Secretary, not to exceed $3,000,000 for fiscal years 2009, 2010, and 2011 for the development, implementation, and conducting of national public service multimedia campaigns under this paragraph.</text> </subparagraph></paragraph><paragraph id="H60761793A7AF40D6BA1533F758A7407B"><enum>(5)</enum><header>Education programs</header><text>The Secretary shall provide advice and technical assistance to States, units of general local government, and nonprofit organizations regarding the establishment and operation of, including assistance with the development of content and materials for, educational programs to inform and educate consumers, particularly those most vulnerable with respect to residential mortgage loans (such as elderly persons, persons facing language barriers, low-income persons, and other potentially vulnerable consumers), regarding home mortgages, mortgage refinancing, home equity loans, and home repair loans.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HFB4F2D76BCD140F89C47F883C9FCEA34"><enum>(b)</enum><header>Conforming amendments to grant program for homeownership counseling organizations</header><text>Section 106(c)(5)(A)(ii) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(c)(5)(A)(ii)</external-xref>) is amended—</text> <paragraph id="H17F4F81EF053435B9174ECE781902FFA"><enum>(1)</enum><text>in subclause (III), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="HA76C36FE715B49AFAF9E0493566562DD"><enum>(2)</enum><text>in subclause (IV) by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="H1ABF5367FD314BB59CA42DC002A17781"><enum>(3)</enum><text>by inserting after subclause (IV) the following new subclause:</text> <quoted-block id="HCDE8DA3A06F5422CB48C403FCBE0C0B6"> <subclause id="HA2A48681E4DE48F29254776B24178DD5"><enum>(V)</enum><text>notify the housing or mortgage applicant of the availability of mortgage software systems provided pursuant to subsection (g)(3).</text> </subclause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H40B3F09CC2934BC5B766B2BA2170A0EE"><enum>304.</enum><header>Grants for housing counseling assistance</header><text display-inline="no-display-inline">Section 106(a) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(a)(3)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block act-name="Housing" id="H324823799C204CE6B1E28D99492092E3"> <paragraph id="H5A849E2D3E2E49679F8782FEDF38D251" indent="up1"><enum>(4)</enum><header>Homeownership and rental counseling assistance</header> <subparagraph id="HCA016095EAF543CBBD9FD006E4FA68E"><enum>(A)</enum><header>In general</header><text>The Secretary shall make financial assistance available under this paragraph to States, units of general local governments, and nonprofit organizations providing homeownership or rental counseling (as such terms are defined in subsection (g)(1)).</text> </subparagraph><subparagraph id="H7431F1A150FF4A94A9575B8005A6B0CF"><enum>(B)</enum><header>Qualified entities</header><text>The Secretary shall establish standards and guidelines for eligibility of organizations (including governmental and nonprofit organizations) to receive assistance under this paragraph.</text> </subparagraph><subparagraph id="H87E2A744AA674EA2867F6279CBC297E"><enum>(C)</enum><header>Distribution</header><text>Assistance made available under this paragraph shall be distributed in a manner that encourages efficient and successful counseling programs.</text> </subparagraph><subparagraph id="HDE3EFD43892F4758AEB61344F212664"><enum>(D)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated $45,000,000 for each of fiscal years 2009 through 2012 for—</text> <clause id="H87DCA02D0A7E46E5B44CABF0BA857E5B"><enum>(i)</enum><text>the operations of the Office of Housing Counseling of the Department of Housing and Urban Development;</text> </clause><clause id="HFAC38B218669480CB5EF9F63A600E791"><enum>(ii)</enum><text>the responsibilities of the Secretary under paragraphs (2) through (5) of subsection (g); and</text> </clause><clause id="H2506920DFDAB4CB392E9D24F8E932C7D"><enum>(iii)</enum><text>assistance pursuant to this paragraph for entities providing homeownership and rental counseling.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H3A094E03320A4852A3E1E49010362FBC"><enum>305.</enum><header>Requirements to use HUD-certified counselors under HUD programs</header><text display-inline="no-display-inline">Section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(e)</external-xref>) is amended—</text> <paragraph id="H8F9E7507246841DC9B45A600009E0076"><enum>(1)</enum><text>by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block id="HD37B82F593454846ADB2BD5C86528554"> <paragraph id="H2D6D40B8C7DD4C86AF90CB21EC467BCC"><enum>(1)</enum><header>Requirement for assistance</header><text>An organization may not receive assistance for counseling activities under subsection (a)(1)(iii), (a)(2), (a)(4), (c), or (d) of this section, or under section 101(e), unless the organization, or the individuals through which the organization provides such counseling, has been certified by the Secretary under this subsection as competent to provide such counseling.</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HF0855D3FC2194D9AB3E6033EE783D60"><enum>(2)</enum><text>in paragraph (2)—</text> <subparagraph id="H9A6452CC928B4C7FB587994FBEDB69C"><enum>(A)</enum><text>by inserting <quote>and for certifying organizations</quote> before the period at the end of the first sentence; and</text> </subparagraph><subparagraph id="H8925018177DA4DCE8FF2E17C5EBC6BB8"><enum>(B)</enum><text>in the second sentence by striking <quote>for certification</quote> and inserting <quote>, for certification of an organization, that each individual through which the organization provides counseling shall demonstrate, and, for certification of an individual,</quote>;</text> </subparagraph></paragraph><paragraph id="HA99F18FC4C664973BEEC2BBBA7004141"><enum>(3)</enum><text>in paragraph (3), by inserting <quote>organizations and</quote> before <quote>individuals</quote>;</text> </paragraph><paragraph id="HBC5ECC90839C4FDB944117BC7263BDFA"><enum>(4)</enum><text>by redesignating paragraph (3) as paragraph (5); and</text> </paragraph><paragraph id="H11DE8C59A66346858D58C92BEC654415"><enum>(5)</enum><text>by inserting after paragraph (2) the following new paragraphs:</text> <quoted-block id="H16F5116EA7924EA790C002C149CB6E"> <paragraph id="H2D118FE223C7472C917EC521513B5CC7"><enum>(3)</enum><header>Requirement under hud programs</header><text>Any homeownership counseling or rental housing counseling (as such terms are defined in subsection (g)(1)) required under, or provided in connection with, any program administered by the Department of Housing and Urban Development shall be provided only by organizations or counselors certified by the Secretary under this subsection as competent to provide such counseling.</text> </paragraph><paragraph id="HEA43353AAA7C4A4A8D5FE58EAF373F33"><enum>(4)</enum><header>Outreach</header><text>The Secretary shall take such actions as the Secretary considers appropriate to ensure that individuals and organizations providing homeownership or rental housing counseling are aware of the certification requirements and standards of this subsection and of the training and certification programs under subsection (f).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H05DF70B8D4134B36A01E2BA2DAF3CD14"><enum>306.</enum><header>Study of defaults and foreclosures</header><text display-inline="no-display-inline">The Secretary of Housing and Urban Development shall conduct an extensive study of the root causes of default and foreclosure of home loans, using as much empirical data as are available. The study shall also examine the role of escrow accounts in helping prime and nonprime borrowers to avoid defaults and foreclosures. Not later than 12 months after the date of the enactment of this Act, the Secretary shall submit to the Congress a preliminary report regarding the study. Not later than 24 months after such date of enactment, the Secretary shall submit a final report regarding the results of the study, which shall include any recommended legislation relating to the study, and recommendations for best practices and for a process to identify populations that need counseling the most.</text> </section><section id="H7F4513E1AADC4BB79BF9174B5507573D"><enum>307.</enum><header>Definitions for counseling-related programs</header><text display-inline="no-display-inline">Section 106 of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x</external-xref>), as amended by the preceding provisions of this title, is further amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing" id="H809A445667394CAD9380951484235125"> <subsection id="HB8AECC0BEE7749C8A6BD2BF2EC4CA32"><enum>(h)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H28BAD2C26FF546C29EBE0608D2FBD21D"><enum>(1)</enum><header>Nonprofit organization</header><text>The term <term>nonprofit organization</term> has the meaning given such term in section 104(5) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12704">42 U.S.C. 12704(5)</external-xref>), except that subparagraph (D) of such section shall not apply for purposes of this section.</text> </paragraph><paragraph id="H88AC790F00DD42E28BBB4063D21CA123"><enum>(2)</enum><header>State</header><text>The term <term>State</term> means each of the several States, the Commonwealth of Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territories of the Pacific, or any other possession of the United States.</text> </paragraph><paragraph id="H721D68892D9A4475A3E784480646800"><enum>(3)</enum><header>Unit of general local government</header><text>The term <term>unit of general local government</term> means any city, county, parish, town, township, borough, village, or other general purpose political subdivision of a State.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HBECE7BD5778E4A7B82003D2F2F63075B"><enum>308.</enum><header>Updating and simplification of mortgage information booklet</header><text display-inline="no-display-inline">Section 5 of the Real Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2604">12 U.S.C. 2604</external-xref>) is amended—</text> <paragraph id="H32F855D8DFAA4356BF4FC15BC592F32D"><enum>(1)</enum><text>in the section heading, by striking <quote><header-in-text level="section" style="traditional">special</header-in-text></quote> and inserting <quote><header-in-text level="section" style="traditional">home buying</header-in-text></quote>;</text> </paragraph><paragraph id="H0C380581C6DB401E87E3D50803492E03"><enum>(2)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="H9EFF83084C444B8A815E04AE449A915"> <subsection id="HDBD3A5B5BAB64F30963B680712BB9489"><enum>(a)</enum><header>Preparation and distribution</header><text>The Secretary shall prepare, at least once every 5 years, a booklet to help consumers applying for federally related mortgage loans to understand the nature and costs of real estate settlement services. The Secretary shall prepare the booklet in various languages and cultural styles, as the Secretary determines to be appropriate, so that the booklet is understandable and accessible to homebuyers of different ethnic and cultural backgrounds. The Secretary shall distribute such booklets to all lenders that make federally related mortgage loans. The Secretary shall also distribute to such lenders lists, organized by location, of homeownership counselors certified under section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(e)</external-xref>) for use in complying with the requirement under subsection (c) of this section.</text> </subsection><subsection id="HC80CDA57FDAF40FEB38E50A41CD56847"><enum>(b)</enum><header>Contents</header><text>Each booklet shall be in such form and detail as the Secretary shall prescribe and, in addition to such other information as the Secretary may provide, shall include in plain and understandable language the following information:</text> <paragraph id="H4970777C4C494BC3A3D6171E64F600E6"><enum>(1)</enum><text>A description and explanation of the nature and purpose of the costs incident to a real estate settlement or a federally related mortgage loan. The description and explanation shall provide general information about the mortgage process as well as specific information concerning, at a minimum—</text> <subparagraph id="HE1BC4903CB734D4ABB4DD6BFBA7318F5"><enum>(A)</enum><text>balloon payments;</text> </subparagraph><subparagraph id="HCFB9DEC8158F4CF1A7F6495300DAA944"><enum>(B)</enum><text>prepayment penalties; and</text> </subparagraph><subparagraph id="HA8CF8AA1642C4639B1161D8B28CC551E"><enum>(C)</enum><text>the trade-off between closing costs and the interest rate over the life of the loan.</text> </subparagraph></paragraph><paragraph id="HB1CA2FCEA95A443985135C72DD1847E"><enum>(2)</enum><text>An explanation and sample of the uniform settlement statement required by section 4.</text> </paragraph><paragraph id="H16EE64AD88594CBA87D1F9197175474"><enum>(3)</enum><text>A list and explanation of lending practices, including those prohibited by the Truth in Lending Act or other applicable Federal law, and of other unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement.</text> </paragraph><paragraph id="H36FC733745E745C1ADE1EC2D9F218DDD"><enum>(4)</enum><text>A list and explanation of questions a consumer obtaining a federally related mortgage loan should ask regarding the loan, including whether the consumer will have the ability to repay the loan, whether the consumer sufficiently shopped for the loan, whether the loan terms include prepayment penalties or balloon payments, and whether the loan will benefit the borrower.</text> </paragraph><paragraph id="H0E6FF90F6F514A50A92343B4EFE31385"><enum>(5)</enum><text>An explanation of the right of rescission as to certain transactions provided by sections 125 and 129 of the Truth in Lending Act.</text> </paragraph><paragraph id="H449FF33CF5B04CB3A7209B3E149339E7"><enum>(6)</enum><text>A brief explanation of the nature of a variable rate mortgage and a reference to the booklet entitled <quote>Consumer Handbook on Adjustable Rate Mortgages</quote>, published by the Board of Governors of the Federal Reserve System pursuant to <external-xref legal-doc="regulation" parsable-cite="cfr/12/226.19">section 226.19(b)(1)</external-xref> of title 12, Code of Federal Regulations, or to any suitable substitute of such booklet that such Board of Governors may subsequently adopt pursuant to such section.</text> </paragraph><paragraph id="H217373B66F35483382A5DAD3FEC8D0C7"><enum>(7)</enum><text>A brief explanation of the nature of a home equity line of credit and a reference to the pamphlet required to be provided under section 127A of the Truth in Lending Act.</text> </paragraph><paragraph id="H6D0B903DFAED48F3AFB9EE3875723F2C"><enum>(8)</enum><text>Information about homeownership counseling services made available pursuant to section 106(a)(4) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(a)(4)</external-xref>), a recommendation that the consumer use such services, and notification that a list of certified providers of homeownership counseling in the area, and their contact information, is available.</text> </paragraph><paragraph id="H351611665CB64AD3BF85293592677451"><enum>(9)</enum><text>An explanation of the nature and purpose of escrow accounts when used in connection with loans secured by residential real estate and the requirements under section 10 of this Act regarding such accounts.</text> </paragraph><paragraph id="HC626F6438EC2400C9D799C006672CA92"><enum>(10)</enum><text>An explanation of the choices available to buyers of residential real estate in selecting persons to provide necessary services incidental to a real estate settlement.</text> </paragraph><paragraph id="HC437F220B10B45E7AD1BE407E7717C9D"><enum>(11)</enum><text>An explanation of a consumer’s responsibilities, liabilities, and obligations in a mortgage transaction.</text> </paragraph><paragraph id="HED6B3FD8DB004AFFA7ECB5249D404536"><enum>(12)</enum><text>An explanation of the nature and purpose of real estate appraisals, including the difference between an appraisal and a home inspection.</text> </paragraph><paragraph id="H2FD173B3B22C4D3593E6FA81767B2DDB"><enum>(13)</enum><text>Notice that the Office of Housing of the Department of Housing and Urban Development has made publicly available a brochure regarding loan fraud and a World Wide Web address and toll-free telephone number for obtaining the brochure.</text> </paragraph><continuation-text continuation-text-level="subsection">The booklet prepared pursuant to this section shall take into consideration differences in real estate settlement procedures that may exist among the several States and territories of the United States and among separate political subdivisions within the same State and territory.</continuation-text></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H7F7973F786C84C910044598BAF46BD8B"><enum>(3)</enum><text>in subsection (c), by inserting at the end the following new sentence: <quote>Each lender shall also include with the booklet a reasonably complete or updated list of homeownership counselors who are certified pursuant to section 106(e) of the <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(e)</external-xref>) and located in the area of the lender.</quote>; and</text> </paragraph><paragraph id="H372DB98C54614DE2A6C6C4521C3699AB"><enum>(4)</enum><text>in subsection (d), by inserting after the period at the end of the first sentence the following: <quote>The lender shall provide the HUD-issued booklet in the version that is most appropriate for the person receiving it.</quote>.</text> </paragraph></section><enum>IV</enum><header>Incentives for Best Practices and Mortgage Loan Modification</header> <section id="HF620CE92D49449169D023ED325C5B2A4"><enum>401.</enum><header>CRA credit for certain lender practices</header><text display-inline="no-display-inline">Section 804 of the Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2903">12 U.S.C. 2903</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HFEFEA7996F524764A5D7077176005064" style="OLC"> <subsection id="H62B0E153ADBC43A19CDA4B81F4DA86D"><enum>(d)</enum><header>Efforts on behalf of subprime borrowers</header><text>In assessing and taking into account, under subsection (a), the record of a regulated financial institution, the appropriate Federal financial supervisory agency may consider as a factor, in accordance with such guidelines as the agency may issue, any of the following programs undertaken by the institution:</text> <paragraph id="H32D04C30BC2F40E7A96CF1858CB63FDB"><enum>(1)</enum><text display-inline="yes-display-inline">A program to provide or support the provision of home ownership or credit counseling to low- and moderate-income consumer borrowers through programs reasonably available to the consumer that have been certified or approved by the Secretary of Housing and Urban Development for such purpose.</text> </paragraph><paragraph id="H6B72A261D5EF4A4996001E290720BBFB"><enum>(2)</enum><text display-inline="yes-display-inline">A program to provide or support the provision of foreclosure-prevention counseling and other prevention efforts to low- and moderate-income consumer borrowers through programs reasonably available to the consumer that have been certified or approved by the Secretary of Housing and Urban Development for such purpose.</text> </paragraph><paragraph id="HCBDCD422906D4268B4EA202D3B52A53B"><enum>(3)</enum><text display-inline="yes-display-inline">A program to transition low- and moderate-income consumer borrowers from higher-cost mortgage loans to lower-cost mortgage loans.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H13F9BC0C9589466B80AF948F60DE1F10"><enum>402.</enum><header>Safe harbor for qualified loan modifications or workout plans for certain residential mortgage loans</header> <subsection id="H26F418770F6448E8A2A05F9D6F6F2D42"><enum>(a)</enum><header>Standard for loan modifications or workout plans</header><text>Absent specific contractual provisions to the contrary—</text> <paragraph id="H37E4F1B5F7E74412B8DA8DB5588EBEA"><enum>(1)</enum><text>the duty to maximize, or to not adversely affect, the recovery of total proceeds from pooled residential mortgage loans is owed by a servicer of such pooled loans to the securitization vehicle for the benefit of all investors and holders of beneficial interests in the pooled loans, in the aggregate, and not to any individual party or group of parties; and</text> </paragraph><paragraph id="H026AFFEBC9C64841AFFD1DED24DC6100"><enum>(2)</enum><text>a servicer of pooled residential mortgage loans shall be deemed to be acting on behalf of the securitization vehicle in the best interest of all investors and holders of beneficial interests in the pooled loans, in the aggregate, if for a loan that is in payment default under the loan agreement or for which payment default is imminent or reasonably foreseeable, the loan servicer makes reasonable and documented efforts to implement a modification or workout plan or, if such efforts are unsuccessful or such plan would be infeasible, engages in other loss mitigation, including accepting a short payment or partial discharge of principal, or agreeing to a short sale of the property, to the extent that the servicer reasonably believes the modification or workout plan or other mitigation actions will maximize the net present value to be realized on the loan over that which would be realized through foreclosure.</text> </paragraph></subsection><subsection id="H2A801E4687D245DABEBEEB69F3006BCD"><enum>(b)</enum><header>Safe harbor</header><text>Absent specific contractual provisions to the contrary, a servicer of a residential mortgage loan that acts in a manner consistent with the duty set forth in subsection (a), shall not be liable for entering into a qualified loan modification or workout plan, to—</text> <paragraph id="HA6A456D1C60948098DC52C5108CE92F2"><enum>(1)</enum><text>any person, based on that person’s ownership of a residential mortgage loan or any interest in a pool of residential mortgage loans or in securities that distribute payments out of the principal, interest and other payments in loans on the pool;</text> </paragraph><paragraph id="H5A9D42AA04774E458157DE22677BD55"><enum>(2)</enum><text>any person who is obligated to make payments determined in reference to any loan or any interest referred to in paragraph (1); or</text> </paragraph><paragraph id="H19D5C918EF3C43C484DDED5805141A1"><enum>(3)</enum><text display-inline="yes-display-inline">any person that insures any loan or any interest referred to in paragraph (1) under any law or regulation of the United States or any law or regulation of any State or political subdivision of any State.</text> </paragraph></subsection><subsection id="H021239B9415E42F3BA5714A9E7E77DEE"><enum>(c)</enum><header>Rule of construction</header><text>No provision of this section shall be construed as limiting the ability of a servicer to enter into loan modifications or workout plans other than qualified loan modification or workout plans.</text> </subsection><subsection id="H1EA218D6E4CA4EEEA3FE7FEBD1AD2BC0"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="H28ACACD265F34C629D69A4E2EB0BFB"><enum>(1)</enum><header>Qualified loan modification or workout plan</header><text>The term <quote>qualified loan modification or workout plan</quote> means a modification or plan that—</text> <subparagraph id="H8EAF5ED4B0AD4214B3F7ED6C47826454"><enum>(A)</enum><text>is scheduled to remain in place until the borrower sells or refinances the property, or for at least 5 years from the date of adoption of the plan, whichever is sooner;</text> </subparagraph><subparagraph id="H4B0D66D1B5E3496EB7C4DCD2F68E8737"><enum>(B)</enum><text>does not provide for a repayment schedule that results in negative amortization at any time; and</text> </subparagraph><subparagraph id="H98422C00201B4A539B35A7A9E7CD7542"><enum>(C)</enum><text>does not require the borrower to pay additional points and fees.</text> </subparagraph></paragraph><paragraph id="H9F5CA8A2271C42A58DAE08FDE286B7DB"><enum>(2)</enum><header>Residential mortgage loan defined</header><text>The term <quote>residential mortgage loan</quote> means a loan that is secured by a lien on an owner-occupied residential dwelling.</text> </paragraph><paragraph id="H1C9160C8B42C477290DAF2AE37866BA9"><enum>(3)</enum><header>Securitization vehicle</header><text>The term <quote>securitization vehicle</quote> means a trust, corporation, partnership, limited liability entity, special purpose entity, or other structure that—</text> <subparagraph id="H0D6613A3E8034BF78EE0EBC453C95B14"><enum>(A)</enum><text>is the issuer, or is created by the issuer, of mortgage pass-through certificates, participation certificates, mortgage-backed securities, or other similar securities backed by a pool of assets that includes residential mortgage loans; and</text> </subparagraph><subparagraph id="H2BE0A6E7E60E4F0BA8C95B7C38BFEE29"><enum>(B)</enum><text>holds such loans.</text> </subparagraph></paragraph></subsection><subsection id="H7D6D4DAEDCDA46DF8795830025833586"><enum>(e)</enum><header>Effective period</header><text>This section shall apply only with respect to qualified loan modification or workout plans initiated prior to January 1, 2011.</text> </subsection></section><enum>V</enum><header>FHA Modernization</header> <section display-inline="no-display-inline" id="H7374961927C747FF887C7D2F2100064B" section-type="subsequent-section"><enum>501.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote>Expanding American Homeownership Act of 2008</quote>.</text> </section><section id="HC563FDE164674930BFCA9BABE7CD3E93"><enum>502.</enum><header>Findings and purposes</header> <subsection id="H4CF4C8B715A44E769F3B7ED0A1DC5700"><enum>(a)</enum><header>Findings</header><text>The Congress finds that—</text> <paragraph id="H8386930B47634E028F7CA602B787FBE9"><enum>(1)</enum><text>one of the primary missions of the Federal Housing Administration (FHA) single family mortgage insurance program is to reach borrowers who are underserved, or not served, by the existing conventional mortgage marketplace;</text> </paragraph><paragraph id="H407956996E8440E19B566E006ED4DBE"><enum>(2)</enum><text>the FHA program has a long history of innovation, which includes pioneering the 30-year self-amortizing mortgage and a safe-to-seniors reverse mortgage product, both of which were once thought too risky to private lenders;</text> </paragraph><paragraph id="H4B933CFF56744348B7F4A81561940868"><enum>(3)</enum><text>the FHA single family mortgage insurance program traditionally has been a major provider of mortgage insurance for home purchases;</text> </paragraph><paragraph id="H7017C2D02A57448EA3B84DB3062018AD"><enum>(4)</enum><text>the FHA mortgage insurance premium structure, as well as FHA’s product offerings, should be revised to reflect FHA’s enhanced ability to determine risk at the loan level and to allow FHA to better respond to changes in the mortgage market;</text> </paragraph><paragraph id="HCD725A61B6F441DC8165D016E1AA64BF"><enum>(5)</enum><text>during past recessions, including the oil-patch downturns in the mid-1980s, FHA remained a viable credit enhancer and was therefore instrumental in preventing a more catastrophic collapse in housing markets and a greater loss of homeowner equity; and</text> </paragraph><paragraph id="H5FAC548ABB0447489BA43E5B9C0015E7"><enum>(6)</enum><text>as housing price appreciation slows and interest rates rise, many homeowners and prospective homebuyers will need the less-expensive, safer financing alternative that FHA mortgage insurance provides.</text> </paragraph></subsection><subsection id="H8B90324ACA9B438EB07B670540E4E2A4"><enum>(b)</enum><header>Purposes</header><text>The purposes of this title are—</text> <paragraph id="HD007681AE9AA4B5CAAEE627BA7B3B6BD"><enum>(1)</enum><text>to provide flexibility to FHA to allow for the insurance of housing loans for low- and moderate-income homebuyers during all economic cycles in the mortgage market;</text> </paragraph><paragraph id="H4BC7D1E29FC64A6EBF2D9FCE76913929"><enum>(2)</enum><text>to modernize the FHA single family mortgage insurance program by making it more reflective of enhancements to loan-level risk assessments and changes to the mortgage market; and</text> </paragraph><paragraph id="H03D89C99E5F14BECAF941CB027D7E6C7"><enum>(3)</enum><text>to adjust the loan limits for the single family mortgage insurance program to reflect rising house prices and the increased costs associated with new construction.</text> </paragraph></subsection></section><section id="H7CC1CA50CE554F34A24E2DC36538DEF6"><enum>503.</enum><header>Maximum principal loan obligation</header><text display-inline="no-display-inline">Paragraph (2) of section 203(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1709(b)(2)) is amended—</text> <paragraph id="H75E148D8E26940428BB1DFB9C65FA8D3"><enum>(1)</enum><text>by striking subparagraphs (A) and (B) and inserting the following new subparagraphs:</text> <quoted-block id="H1824CFE0E5614AA2808DDE6B9B2F6818" style="OLC"> <subparagraph id="H47180F5D05484C5594F0629135B50090"><enum>(A)</enum><text>not to exceed the lesser of—</text> <clause id="H13406BA1318944BCB0EB9A914BB93E2"><enum>(i)</enum><text>in the case of a 1-family residence, the median 1-family house price in the area, as determined by the Secretary; and in the case of a 2-, 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 in effect 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 in effect under such section for a 1-family residence; or</text> </clause><clause id="H1529EB3EDC6642068D84CFA2A9798FA9"><enum>(ii)</enum><text>132 percent of the dollar amount limitation in effect for 2007 under such section 305(a)(2) for a residence of the applicable size (without regard to any authority to increase such limitations with respect to properties located in Alaska, Guam, Hawaii, or the Virgin Islands), except that each such maximum dollar amount shall be adjusted effective January 1 of each year beginning with 2009, by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recently completed 12-month or 4-quarter period ending before the time of determining such annual adjustment, in an housing price index developed or selected by the Secretary for purposes of adjustments under this clause;</text> </clause><continuation-text continuation-text-level="subparagraph">except that the dollar amount limitation in effect for any area under this subparagraph 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 limitation determined under such section 305(a)(2) for a residence of the applicable size; and</continuation-text></subparagraph><subparagraph id="HB05C1549B707407B94D71FED6436C163"><enum>(B)</enum><text>not to exceed the appraised value of the property, plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HE85869DC7331436498F0A2B85585F364"><enum>(2)</enum><text>in the matter after and below subparagraph (B), by striking the second sentence (relating to a definition of <quote>average closing cost</quote>) and all that follows through <quote>title 38, United States Code</quote>; and</text> </paragraph><paragraph id="HCEF1ED90319F446A8716C83029578320"><enum>(3)</enum><text>by striking the last undesignated paragraph (relating to counseling with respect to the responsibilities and financial management involved in homeownership).</text> </paragraph></section><section id="HC3747770DC124A5C99A260A311288FD4"><enum>504.</enum><header>Extension of mortgage term</header><text display-inline="no-display-inline">Paragraph (3) of section 203(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(3)</external-xref>) is amended—</text> <paragraph id="HF1C0C87ECDFB46B3B45199B8A866CB40"><enum>(1)</enum><text>by striking <quote>thirty-five years</quote> and inserting <quote>forty years</quote>; and</text> </paragraph><paragraph id="H12D2373DB23D414B9B787EE9AF8D72C2"><enum>(2)</enum><text>by striking <quote>(or thirty years if such mortgage is not approved for insurance prior to construction)</quote>.</text> </paragraph></section><section display-inline="no-display-inline" id="HB91D2752DCE541A3B63FB90381A3AB95" section-type="subsequent-section"><enum>505.</enum><header>Mortgage insurance premiums</header><text display-inline="no-display-inline">Section 203(c) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1709(c)) is amended—</text> <paragraph id="HF5CA5EDFFA4A40399648517563020228"><enum>(1)</enum><text>in paragraph (2), in the matter preceding subparagraph (A), by striking <quote>Notwithstanding</quote> and inserting <quote>Except as provided in paragraph (3) and notwithstanding</quote>; and</text> </paragraph><paragraph id="H642AB545825F42C59DA67EBC8E430559"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="HD36EB02C2D1F4E76B9F0F5A311E55148" style="OLC"> <paragraph id="H3AE6FD34DCD24F97B088F27701C824C5" indent="up1"><enum>(3)</enum><header>Flexible Risk-Based Premiums</header> <subparagraph id="H2F222350F3564F23AF00E42BA441A481"><enum>(A)</enum><header>In general</header><text>For any mortgage insured by the Secretary under this title that is secured by a 1- to 4-family dwelling and for which the loan application is received by the mortgagee on or after October 1, 2008, the Secretary may establish a mortgage insurance premium structure involving a single premium payment collected prior to the insurance of the mortgage or annual payments (which may be collected on a periodic basis), or both, subject to the limitations in subparagraphs (B) and (C). The rate of premium for such a mortgage may vary during the mortgage term as long as the basis for determining the variable rate is established before the execution of the mortgage. The Secretary may change a premium structure established under this subparagraph but only to the extent that such change is not applied to any mortgage already executed.</text> </subparagraph><subparagraph id="H759EE22D189047F2AEDE78188F7E00FC"><enum>(B)</enum><header>Maximum up-front premium amounts</header><text>For any mortgage insured under a premium structure established pursuant to this paragraph, the amount of any single premium payment authorized by subparagraph (A), if established and collected prior to the insurance of the mortgage, may not exceed the following amount:</text> <clause id="HF25DF0E721624B47997B32F43E00204F"><enum>(i)</enum><text>Except as provided in clauses (ii) and (iii), 3.0 percent of the amount of the original insured principal obligation of the mortgage.</text> </clause><clause id="H0D5AB5CF5EB747829BBAFA91211024A1"><enum>(ii)</enum><text>If the mortgagor has a credit score equivalent to a FICO score of 560 or more, 2.25 percent of the original insured principal obligation of the mortgage.</text> </clause><clause id="H9D50B403DC2B40188000AD4BB142A341"><enum>(iii)</enum><text>If the annual premium payment is equal to the maximum amount allowable under clause (i) of subparagraph (C), 1.5 percent of the amount of the original insured principal obligation of the mortgage.</text> </clause></subparagraph><subparagraph id="H16B3D391C7484CB19BE1078C2043E57"><enum>(C)</enum><header>Maximum annual premium amounts</header><text>For any mortgage insured under a premium structure established pursuant to this paragraph, the amount of any annual premium payment collected may not exceed the following amount:</text> <clause id="H0D2B8A88720040F7BAE489A451D75D4C"><enum>(i)</enum><text>Except as provided in clauses (ii) and (iii), 2.0 percent of the remaining insured principal obligation of the mortgage.</text> </clause><clause id="HAC6CB3B417F34AF0B4EA5CE2006E71AF"><enum>(ii)</enum><text>If the mortgagor is a mortgagor described in clause (ii) of subparagraph (B), 0.55 percent of the remaining insured principal obligation of the mortgage.</text> </clause><clause id="HB7AE5ADEA9EE4D4887D006FE8E08BA33"><enum>(iii)</enum><text>If the single premium payment collected at the time of insurance is equal to maximum amount allowable under clause (i) of subparagraph (B), 1.0 percent of the remaining insured principal obligation of the mortgage.</text> </clause></subparagraph><subparagraph id="HDEDFC93DAF234E2CB33E7C2F58FE6BD0"><enum>(D)</enum><header>Payment incentive</header><text>Notwithstanding subparagraph (C), for any mortgage insured under a premium structure established pursuant to this paragraph and for which the annual premium payment exceeds the amount set forth in subparagraph (C)(ii), if during the 5-year period beginning upon the time of insurance all mortgage insurance premiums for such mortgage have been paid on a timely basis, upon the expiration of such period the Secretary shall reduce the amount of the annual premium payments due thereafter under such mortgage to an amount equal to the amount set forth in subparagraph (C)(ii).</text> </subparagraph><subparagraph id="H241A37E281D546D0AEBA6283E3BB2C26"><enum>(E)</enum><header>Establishment and alteration of premium structure</header><text>A premium structure shall be established or changed under subparagraph (A) only by providing notice to mortgagees and to the Congress, at least 30 days before the premium structure is established or changed.</text> </subparagraph><subparagraph id="H1BC5961316264EB5B420F11C86BA528F"><enum>(F)</enum><header>Considerations for premium structure</header><text>When establishing a premium structure under subparagraph (A) or when changing such a premium structure, the Secretary shall consider the following:</text> <clause id="H041F5D31E0C94D6B8D4B2C75FF005345"><enum>(i)</enum><text>The effect of the proposed premium structure on the Secretary’s ability to meet the operational goals of the Mutual Mortgage Insurance Fund as provided in section 202(a).</text> </clause><clause id="H4C006E92A36C4CC1A846CB5FA738A973"><enum>(ii)</enum><text>Underwriting variables.</text> </clause><clause id="HE24872A372EC48898458E8C5F18809AF"><enum>(iii)</enum><text>The extent to which new pricing under the proposed premium structure has potential for acceptance in the private market.</text> </clause><clause id="HC9A6114B66CC43C48CFB904CB7239EDF"><enum>(iv)</enum><text>The administrative capability of the Secretary to administer the proposed premium structure.</text> </clause><clause id="H5C1269AEF8C74520ABF906E94F45C9C0"><enum>(v)</enum><text>The effect of the proposed premium structure on the Secretary’s ability to maintain the availability of mortgage credit and provide stability to mortgage markets.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H0A22BF71A015400B8286BBDD2197D370"><enum>506.</enum><header>Rehabilitation loans</header><text display-inline="no-display-inline">Subsection (k) of section 203 of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(k)</external-xref>) is amended—</text> <paragraph id="H8A511F018D90420F8122EA03D652D210"><enum>(1)</enum><text>in paragraph (1), by striking <quote>on</quote> and all that follows through <quote>1978</quote>; and</text> </paragraph><paragraph id="H8B58812DC0454292B3E1E5A7092853FC"><enum>(2)</enum><text>in paragraph (5)—</text> <subparagraph id="H6A58A13C0EC44FB9B9CCA4984BF285BB"><enum>(A)</enum><text>by striking <quote>General Insurance Fund</quote> the first place it appears and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </subparagraph><subparagraph id="H9C52DD93DCE440DDB9F8A785F0A163B5"><enum>(B)</enum><text>in the second sentence, by striking the comma and all that follows through <quote>General Insurance Fund</quote>.</text> </subparagraph></paragraph></section><section id="H0B76DAE06F9444BF91E302DD9733CB87"><enum>507.</enum><header>Discretionary action</header><text display-inline="no-display-inline">The <act-name parsable-cite="NHA">National Housing Act</act-name> is amended—</text> <paragraph id="HD575BA769A1F4C3A89A477D981BFDAC0"><enum>(1)</enum><text>in subsection (e) of section 202 (<external-xref legal-doc="usc" parsable-cite="usc/12/1708">12 U.S.C. 1708(e)</external-xref>)—</text> <subparagraph id="HFBE7FAA3F5C24297A9051F648264A7C5"><enum>(A)</enum><text>in paragraph (3)(B), by striking <quote>section 202(e) of the <act-name parsable-cite="NHA">National Housing Act</act-name></quote> and inserting <quote>this subsection</quote>; and</text> </subparagraph><subparagraph id="H0D5039D2FC4249FA9436B9E5C0714B29"><enum>(B)</enum><text>by redesignating such subsection as subsection (f);</text> </subparagraph></paragraph><paragraph id="H705862CA2CA8413EA6353BA4939ED847"><enum>(2)</enum><text>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 id="H7EAD284C61EC4EBA9D5BF0127AEEDA0" style="OLC"> <paragraph id="H376A5BC1265B4652B0B0EACF1FF1E95"><enum>(4)</enum><text>the Secretary of Agriculture;</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HDB1C404EEC6342F192C3009F6E7FACBA"><enum>(3)</enum><text>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 id="HCAEDFC09C9464A41A3B20072A18457B4"><enum>508.</enum><header>Insurance of condominiums</header> <subsection id="HF175C502E68746A4B51B745E85E89488"><enum>(a)</enum><header>In General</header><text>Section 234 of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715y">12 U.S.C. 1715y</external-xref>) is amended—</text> <paragraph id="H9799BFC9127A49D2BFE725664814316F"><enum>(1)</enum><text>in subsection (c)—</text> <subparagraph id="HFDF8C9ACA773488FA6A232DEB6A8AFDA"><enum>(A)</enum><text>in the first sentence—</text> <clause id="HBD889E8AD1FD453CAF0556E7C66C5A"><enum>(i)</enum><text>by striking <quote>and</quote> before <quote>(2)</quote>; and</text> </clause><clause id="H133C9CC00D974744B937B737247DA341"><enum>(ii)</enum><text>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> </clause></subparagraph><subparagraph id="HF0104C3483F74376009D94E1F372C628"><enum>(B)</enum><text>in clause (B) of the third sentence, by striking <quote>thirty-five years</quote> and inserting <quote>forty years</quote>; and</text> </subparagraph></paragraph><paragraph id="H4110FAC5A22A4D7994F8F1AD462475DC"><enum>(2)</enum><text>in subsection (g), by striking <quote>, except that</quote> and all that follows and inserting a period.</text> </paragraph></subsection><subsection id="H9175341A014840D58F6DCA222B6523A3"><enum>(b)</enum><header>Definition of Mortgage</header><text>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 id="HFFCC54F7CEB4443D841FB7F69746FD3E"><enum>(1)</enum><text>in clause (1), by striking <quote>or</quote> and inserting a comma; and</text> </paragraph><paragraph id="HF60DB6A86FE24BC6A251E2E14B104F8E"><enum>(2)</enum><text>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, a one-family unit in a multifamily project, including a project in which the dwelling units are attached, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project</quote>.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="H4713F93C6EEF445685C4D5D81BEDE9CD" section-type="subsequent-section"><enum>509.</enum><header>Mutual Mortgage Insurance Fund</header> <subsection id="H50F31F23E736483CA621684FC3B6BEB3"><enum>(a)</enum><header>In General</header><text>Subsection (a) of section 202 of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1708(a)) is amended to read as follows:</text> <quoted-block act-name="National Housing Act" id="HE2B15B2199D04F7A924702F1A8616D00" style="OLC"> <subsection id="H119F2C165D83419592053C149B68D1B8"><enum>(a)</enum><header>Mutual Mortgage Insurance Fund</header> <paragraph id="H4148C56E446648A3AC28C1D5DB078FD"><enum>(1)</enum><header>Establishment</header><text>Subject to the provisions of the <act-name parsable-cite="FCRA90">Federal Credit Reform Act of 1990</act-name>, 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 id="H84D6416272FD441689ED0049C1F934EF"><enum>(2)</enum><header>Limit on loan guarantees</header><text>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 id="H0A75E881166D4CE3BEC064F94CD9958F"><enum>(3)</enum><header>Fiduciary responsibility</header><text>The Secretary has a responsibility to ensure that the Mutual Mortgage Insurance Fund remains financially sound.</text> </paragraph><paragraph id="H031AF1C1D22A40ADB519C617CB9F81CA"><enum>(4)</enum><header>Annual independent actuarial study</header><text>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.</text> </paragraph><paragraph id="HDB396B86D68F4750A4BF62CD702FE8BD"><enum>(5)</enum><header>Quarterly reports</header><text>During each fiscal year, the Secretary shall submit a report to the Congress for each quarter, which shall specify for mortgages that are obligations of the Fund—</text> <subparagraph id="H571E340754794B129316A6AB8608CF16"><enum>(A)</enum><text>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 id="H4553A60EF8D8417FAACCB400FB2F28FF"><enum>(B)</enum><text>the types of loans insured, categorized by risk;</text> </subparagraph><subparagraph id="H9FD844D1998A402C94BDAF8885B7505B"><enum>(C)</enum><text>any significant changes between actual and projected claim and prepayment activity;</text> </subparagraph><subparagraph id="HC8F2347B44074145A3F00E025663930"><enum>(D)</enum><text>projected versus actual loss rates; and</text> </subparagraph><subparagraph id="H432E0D68EA5C4328A57962F1F71C88"><enum>(E)</enum><text>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 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 2009, or upon the expiration of the 90-day period beginning on the date of the enactment of the Expanding American Homeownership Act of 2008, whichever is later.</continuation-text></paragraph><paragraph id="HAAEC55F992C64F92AEB302EFA788400"><enum>(6)</enum><header>Adjustment of premiums</header><text>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 section 203 as necessary to reduce the risk to the Fund, or make appropriate premium adjustments.</text> </paragraph><paragraph id="H9CE2B69DA4034D3D00EF463400BC557B"><enum>(7)</enum><header>Operational goals</header><text>The operational goals for the Fund are—</text> <subparagraph id="HF7C05E56423D415C9EB189F8FB3BB3B"><enum>(A)</enum><text>to charge borrowers under loans that are obligations of the Fund an appropriate premium for the risk that such loans pose to the Fund;</text> </subparagraph><subparagraph id="H4F33BF9E71E648FCBBACFE1822734DD2"><enum>(B)</enum><text>to minimize the default risk to the Fund and to homeowners;</text> </subparagraph><subparagraph id="HAA2F16B7150044C2A294CEEE153735F4"><enum>(C)</enum><text>to curtail the impact of adverse selection on the Fund; and</text> </subparagraph><subparagraph id="H91852D5FFAE44F8C86CA4E3BAF5DCDC"><enum>(D)</enum><text>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 id="H1BE7BF1A0D5E4D9190E5FDA0ECF8104F"><enum>(b)</enum><header>Obligations of Fund</header><text>The <act-name parsable-cite="NHA">National Housing Act</act-name> is amended as follows:</text> <paragraph id="H130B483B7FAE4DDC90C023BC0FECF9"><enum>(1)</enum><header>Homeownership voucher program mortgages</header><text>In section 203(v) (12 U.S.C. 1709(v))—</text> <subparagraph id="HF22FCCF8534F4CD8AF354E4D4898AA86"><enum>(A)</enum><text>by striking <quote>Notwithstanding section 202 of this title, the</quote> and inserting <quote>The</quote>; and</text> </subparagraph><subparagraph id="H3EFDCA021E9249BB8E5BBE048169D150"><enum>(B)</enum><text>by striking <quote>General Insurance Fund</quote> the first place such term appears and all that follows and inserting <quote>Mutual Mortgage Insurance Fund.</quote>.</text> </subparagraph></paragraph><paragraph id="HDE123878B5444B27A7D424C7F98D3061"><enum>(2)</enum><header>Home equity conversion mortgages</header><text>Section 255(i)(2)(A) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1715z–20(i)(2)(A)) is amended by striking <quote>General Insurance Fund</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>.</text> </paragraph></subsection><subsection id="H2A127629BA2742E58016D762C128EA88"><enum>(c)</enum><header>Conforming Amendments</header><text>The <act-name parsable-cite="NHA">National Housing Act</act-name> is amended—</text> <paragraph id="H0260EFC6D2A24D2B008204D98F12C2E8"><enum>(1)</enum><text>in section 205 (12 U.S.C. 1711), by striking subsections (g) and (h); and</text> </paragraph><paragraph id="HE3DCB57258D84613A05293EE0068D936"><enum>(2)</enum><text>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 id="H4768AB2417CB4B87AA13867450C95CAA"><enum>510.</enum><header>Hawaiian home lands and Indian reservations</header> <subsection id="H3EE383A6A95740D88867559739F4BB3C"><enum>(a)</enum><header>Hawaiian Home Lands</header><text>Section 247(c) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-12">12 U.S.C. 1715z–12</external-xref>) is amended—</text> <paragraph id="H59138D5A29C2410884CAA6E516BBDF44"><enum>(1)</enum><text>by striking <quote>General Insurance Fund established in section 519</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </paragraph><paragraph id="H750F3A8C6D3A484FA6ECFADF02CBCFE"><enum>(2)</enum><text>in the second sentence, by striking <quote>(1) all references</quote> and all that follows through <quote>and (2)</quote>.</text> </paragraph></subsection><subsection id="HAAEF00DD5F854502B4389D3E9BA2E1EB"><enum>(b)</enum><header>Indian Reservations</header><text>Section 248(f) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13">12 U.S.C. 1715z–13</external-xref>) is amended—</text> <paragraph id="HD704D780A3104D65AB0667A3F58F04B7"><enum>(1)</enum><text>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 id="H53536F7CE8FD46B5B937190033D3F59E"><enum>(2)</enum><text>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 id="HFCEE0A1B17194DB500A3F67508E23DB6"><enum>511.</enum><header>Conforming and technical amendments</header> <subsection id="H393054FC79A74309A3D4CDF825833F20"><enum>(a)</enum><header>Repeals</header><text>The following provisions of the <act-name parsable-cite="NHA">National Housing Act</act-name> are repealed:</text> <paragraph id="HAB02C4AD100947AD9916D5B5C9738237"><enum>(1)</enum><text>Subsection (i) of section 203 (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(i)</external-xref>).</text> </paragraph><paragraph id="HF0C6D1BDB3104F75A27C5EC5B5DE48BF"><enum>(2)</enum><text>Subsection (o) of section 203 (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(o)</external-xref>).</text> </paragraph><paragraph id="H2C8C381A3D7A46C68EA0FE119C8118BF"><enum>(3)</enum><text>Subsection (p) of section 203 (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(p)</external-xref>).</text> </paragraph><paragraph id="H303708A6466B45639D003605EB3105D8"><enum>(4)</enum><text>Subsection (q) of section 203 (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(q)</external-xref>).</text> </paragraph><paragraph id="HCB71CABD230648FA95C0D6FB00524904"><enum>(5)</enum><text>Section 222 (12 U.S.C. 1715m).</text> </paragraph><paragraph id="HB80C117C607642F68938902745EE0974"><enum>(6)</enum><text>Section 237 (12 U.S.C. 1715z–2).</text> </paragraph><paragraph id="HD86B7379FC0A44958849A4046C472400"><enum>(7)</enum><text>Section 245 (12 U.S.C. 1715z–10).</text> </paragraph></subsection><subsection id="H0C8499D9C1E942F1A8D238404CB40044"><enum>(b)</enum><header>Definition of Area</header><text>Section 203(u)(2)(A) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<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 id="H82323E5A291A4BE79E7139DE4F08D85"><enum>(c)</enum><header>Definition of State</header><text>Section 201(d) 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(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 id="H3922875A114C4B0ABC8E7202F8A100D5"><enum>512.</enum><header>Home equity conversion mortgages</header> <subsection id="H3AAF4E83D66F4061A1ABCF950570DBDA"><enum>(a)</enum><header>In General</header><text>Section 255 of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>) is amended—</text> <paragraph id="H516AC3A6AF4F4D739D8187B3BF12B54F"><enum>(1)</enum><text>in subsection (g)—</text> <subparagraph id="HE164D7238CCE430C866B338B7030EE1F"><enum>(A)</enum><text>by striking the first sentence; and</text> </subparagraph><subparagraph id="H3BAEDA03EA644FBD9987C51E00706EC7"><enum>(B)</enum><text>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> </subparagraph></paragraph><paragraph id="H45D1919F1DDE4081A331A87ABA50906"><enum>(2)</enum><text>in subsection (i)(1)(C), by striking <quote>limitations</quote> and inserting <quote>limitation</quote>; and</text> </paragraph><paragraph id="H4E2DD118A1A3400BB6B8266963E749C1"><enum>(3)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="HB8E0A266EBDB4699A9F318E6CB58C200" style="OLC"> <subsection id="H69A71560CD5A4D8A872599234DB0F0E0"><enum>(n)</enum><header>Authority To Insure Home Purchase Mortgage</header> <paragraph id="H73B9D8EF6DDF4EF2BCD94C9DA6A0D4D1"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision in 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 primary purpose of the home equity conversion mortgage is to enable an elderly mortgagor to purchase a 1- to 4-family dwelling in which the mortgagor will occupy or occupies one of the units.</text> </paragraph><paragraph id="HBCF526B31B474B4C9DFC72C9658058C5"><enum>(2)</enum><header>Limitation on principal obligation</header><text>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 residence of the applicable size.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H05B57257C38B4BB5BD1245C4003FDFFB"><enum>(b)</enum><header>Mortgages for Cooperatives</header><text>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 id="H6118DB00358B486985A90010E83F202B"><enum>(1)</enum><text>in paragraph (4)—</text> <subparagraph id="H9037A8DAD760495DB2B8FF00B1B89401"><enum>(A)</enum><text>by inserting <quote>a first or subordinate mortgage or lien</quote> before <quote>on all stock</quote>;</text> </subparagraph><subparagraph id="H2CC44BDA12C4462DAFE31E475B30A12F"><enum>(B)</enum><text>by inserting <quote>unit</quote> after <quote>dwelling</quote>; and</text> </subparagraph><subparagraph id="HA98CE89CBE7E45929539CF3E41CFF04"><enum>(C)</enum><text>by inserting <quote>a first mortgage or first lien</quote> before <quote>on a leasehold</quote>; and</text> </subparagraph></paragraph><paragraph id="H6F82452955FD4759B82159A1D45543E3"><enum>(2)</enum><text>in paragraph (5), by inserting <quote>a first or subordinate lien on</quote> before <quote>all stock</quote>.</text> </paragraph></subsection><subsection id="H61C1A3772D3D44FEBEC453E0C245F42"><enum>(c)</enum><header>Study Regarding Mortgage Insurance Premiums</header><text>The Secretary of Housing and Urban Development shall conduct a study regarding mortgage insurance premiums charged under the program under section 255 of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>) for insurance of home equity conversion mortgages to analyze and determine—</text> <paragraph id="H7A7E118C2FDA48F600F14DF325D5F1C"><enum>(1)</enum><text>the effects of reducing the amounts of such premiums from the amounts charged as of the date of the enactment of this Act on—</text> <subparagraph id="HED6CBD32473B422089A8BAB5A1BED600"><enum>(A)</enum><text>costs to mortgagors; and</text> </subparagraph><subparagraph id="H256E2C7ED96D4803A71736906BDB46B1"><enum>(B)</enum><text>the financial soundness of the program; and</text> </subparagraph></paragraph><paragraph id="H494FCB21E3EB4F04A8E03CD0C7AC9F00"><enum>(2)</enum><text>the feasibility and effectiveness of exempting, from all the requirements under the program regarding payment of mortgage insurance premiums (including both up-front or annual mortgage insurance premiums under section 203(c)(2) of such Act), any mortgage insured under the program under which part or all of the amount of future payments made to the homeowner are used for costs of a long-term care insurance contract covering the mortgagor or members of the household residing in the mortgaged property.</text> </paragraph></subsection></section><section display-inline="no-display-inline" id="HB50FFC7E59D44AAF8B005517D0161751" section-type="subsequent-section"><enum>513.</enum><header>Conforming loan limit in disaster areas</header><text display-inline="no-display-inline">Section 203(h) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709</external-xref>) is amended—</text> <paragraph id="HD3617B8F61C9493C9C98F0CE870084EF"><enum>(1)</enum><text>by inserting after <quote>property</quote> the following: <quote>plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary,</quote>;</text> </paragraph><paragraph id="HA1150855CCCB476EB7DA3DC5777CDE9D"><enum>(2)</enum><text>by striking the second sentence (as added by chapter 7 of the Emergency Supplemental Appropriations Act of 1994 (<external-xref legal-doc="public-law" parsable-cite="pl/103/211">Public Law 103–211</external-xref>; 108 Stat. 12)); and</text> </paragraph><paragraph id="H1B46E46702504600888E5F4B51371D1D"><enum>(3)</enum><text>by adding at the end the following new sentence: <quote>In any case in which the single family residence to be insured under this subsection is within a jurisdiction in which the President has declared a major disaster to have occurred, the Secretary is authorized, for a temporary period not to exceed 36 months from the date of such Presidential declaration, to enter into agreements to insure a mortgage which involves a principal obligation of up to 100 percent of the dollar limitation determined under section 305(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> for a single family residence, and not in excess of 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary.</quote>.</text> </paragraph></section><section id="HB57CC9F5DB4843D7AA46464EB42445E8"><enum>514.</enum><header>Participation of mortgage brokers and correspondent lenders</header> <subsection id="H29CBF316D84B4543954FC14CFC09FF1F"><enum>(a)</enum><header>Definitions</header> <paragraph id="H228775506EE041519C168CCEBB3818CC"><enum>(1)</enum><header>In general</header><text>Section 201 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</external-xref>) is amended—</text> <subparagraph id="H7D017990F9DD41A5A04878AEB0FE63E4"><enum>(A)</enum><text>by striking <quote>As used in section 203 of this title—</quote> and inserting <quote>As used in this title and for purposes of participation in insurance programs under this title, except as specifically provided otherwise, the following definitions shall apply:</quote>;</text> </subparagraph><subparagraph id="H135A027C0CD647B795D581BE00734066"><enum>(B)</enum><text>by striking subsection (b) and inserting the following:</text> <quoted-block id="H2D7B2BB151C64B11B83B82B78C2E1994" style="OLC"> <paragraph id="H87A69DB3FA0247D5B705CD86C0D861AE"><enum>(2)</enum><text>The term <term>mortgagee</term> means any of the following entities, and its successors and assigns, to the extent such entity is approved by the Secretary:</text> <subparagraph id="H7946103232EF4D018D688E7F28CC8400"><enum>(A)</enum><text>A lender or correspondent lender, who—</text> <clause id="HA54C69AB62F7435F8D8FD5B7ADEA7902"><enum>(i)</enum><text>makes, underwrites, and services mortgages;</text> </clause><clause id="H7C72E5E363374A1580458200B9390020"><enum>(ii)</enum><text>submits to the Secretary such financial audits performed in accordance with the standards for financial audits of the Government Auditing Standards issued by the Comptroller of the United States;</text> </clause><clause id="HA7F9D1971297452884005100D03EDBFF"><enum>(iii)</enum><text>meet the minimum net worth requirement that the Secretary shall establish; and</text> </clause><clause id="HD41249A9D5334695848CC628DC0062D6"><enum>(iv)</enum><text>complies with such other requirements as the Secretary may establish.</text> </clause></subparagraph><subparagraph id="HBF0CCE1BB68342CF96553110E04D70C6"><enum>(B)</enum><text>A correspondent lender who—</text> <clause id="H61F69C2747EB4CC892C1102DB5DB65D0"><enum>(i)</enum><text>closes a mortgage in its name but does not underwrite or service the mortgage;</text> </clause><clause id="HAE498EB2F09D43BD9EF83FBF37412F69"><enum>(ii)</enum><text>posts a surety bond, in lieu of any requirement to provide audited financial statements or meet a minimum net worth requirement, in—</text> <subclause id="H21E2C39FF19F469E90EF706401F0F3A"><enum>(I)</enum><text>a form satisfactory to the Secretary; and</text> </subclause><subclause id="HD75A8D48E8464F469B6332B34C436DA"><enum>(II)</enum><text>an amount of $75,000, as such amount is adjusted annually by the Secretary (as determined under regulations of the Secretary) by the change for such year in the Consumer Price Index for All Urban Consumers published monthly by the Bureau of Labor Statistics of the Department of Labor; and</text> </subclause></clause><clause id="H0ACF10E573B24AADA1EC3E9A48DFA24"><enum>(iii)</enum><text>complies with such other requirements as the Secretary may establish.</text> </clause></subparagraph><subparagraph id="H6A1589028F1541AC9E6E86C607840030"><enum>(C)</enum><text>A mortgage broker who—</text> <clause id="HBB4645D97FDD4DEFBE775507FF07000"><enum>(i)</enum><text>closes the mortgage in the name of the lender and does not make, underwrite, or service the mortgage;</text> </clause><clause id="H7EC499EBB4964CE4A6EBEECB003043EB"><enum>(ii)</enum><text>is licensed, under the laws of the State in which the property that is subject to the mortgage is located, to act as a mortgage broker in such State;</text> </clause><clause id="HF2290693D61443CAAEFD51F854114006"><enum>(iii)</enum><text>posts a surety bond in accordance with the requirements of subparagraph (B)(ii); and</text> </clause><clause id="H91F2B19A27EA4D179E86DF15A35760F"><enum>(iv)</enum><text>complies with such other requirements as the Secretary may establish.</text> </clause></subparagraph></paragraph><paragraph id="HD2CE62C5383D42F897DA3180D18C0093"><enum>(3)</enum><text>The term <term>mortgagor</term> includes the original borrower under a mortgage and the successors and assigns of the original borrower.</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H0A683D0FF61149A382B2130065BDDE60"><enum>(C)</enum><text>in subsection (a), by redesignating clauses (1) and (2) as clauses (A) and (B) respectively; and</text> </subparagraph><subparagraph id="H3A32AF5F6E3C4ED98DC5ABA129C9F2D0"><enum>(D)</enum><text>by redesignating subsections (a), (c), (d), (e), and (f) as paragraphs (1), (4), (5), (6), and (7), respectively, and realigning such paragraphs two ems from the left margin.</text> </subparagraph></paragraph><paragraph id="H86E1F94C401F4A99AACD9E4776CF325E"><enum>(2)</enum><header>Mortgagee review</header><text>Section 202(c)(7) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1708">12 U.S.C. 1708(c)(7)</external-xref>) is amended—</text> <subparagraph id="H26EBCD8A7F684B8F98CF42CBD6644282"><enum>(A)</enum><text>in subparagraph (A), by inserting <quote>, as defined in section 201,</quote> after <quote>mortgagee</quote>;</text> </subparagraph><subparagraph id="H55E414AB1BE74E5B003FC088F2E55B5F"><enum>(B)</enum><text>by striking subparagraph (B); and</text> </subparagraph><subparagraph id="H1849A8BDE6A444CCA9B638CCE5244800"><enum>(C)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text> </subparagraph></paragraph><paragraph id="H6E943664868F49BA932FA83922980B3"><enum>(3)</enum><header>Multifamily rental housing insurance</header><text>Section 207(a)(2) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1713(a)(2)) is amended by striking <quote>means the original lender under a mortgage, and its successors and assigns, and</quote> and inserting <quote>has the meaning given such term in section 201, except that such term also</quote>.</text> </paragraph><paragraph id="H886484E9F91D4D8C8CFB87BC5400B799"><enum>(4)</enum><header>War housing insurance</header><text>Section 601(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1736">12 U.S.C. 1736(b)</external-xref>) is amended by striking <quote>includes the original lender under a mortgage, and his successors and assigns approved by the Secretary</quote> and inserting <quote>has the meaning given such term in section 201</quote>.</text> </paragraph><paragraph id="H63790FD3FA54406EACA7817CE6057407"><enum>(5)</enum><header>Armed services housing mortgage insurance</header><text>Section 801(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1748(b)) is amended by striking <quote>includes the original lender under a mortgage, and his successors and assigns approved by the Secretary</quote> and inserting <quote>has the meaning given such term in section 201</quote>.</text> </paragraph><paragraph id="H5A87725843334B5182A4DC578EE2D04"><enum>(6)</enum><header>Group practice facilities mortgage insurance</header><text>Section 1106(8) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1749aaa–5(8)) is amended by striking <quote>means the original lender under a mortgage, and his or its successors and assigns, and</quote> and inserting <quote>has the meaning given such term in section 201, except that such term also</quote>.</text> </paragraph></subsection><subsection id="H5B930545EC6F4C6D8C36DB6D452BA0C8"><enum>(b)</enum><header>Eligibility for Insurance</header> <paragraph id="H1DEE70D743A54BCD80A644716068FD12"><enum>(1)</enum><header>Title <enum-in-header>I</enum-in-header></header><text>Paragraph (1) of section 8(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1706c(b)(1)) is amended—</text> <subparagraph id="HF026CF29D45B4FD3B6A9ACCAA8F4E49B"><enum>(A)</enum><text>by striking <quote>, and be held by,</quote>; and</text> </subparagraph><subparagraph id="H01590565762C4789AEEF87A08F25EF26"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph><paragraph id="HC895513A54D749F2A511FDA57E63483D"><enum>(2)</enum><header>Single family housing mortgage insurance</header><text>Paragraph (1) of section 203(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1709(b)(1)) is amended—</text> <subparagraph id="HDB9BF28A73E8450182FE8FCE4C68ABC2"><enum>(A)</enum><text>by striking <quote>, and be held by,</quote>; and</text> </subparagraph><subparagraph id="H416A2438946549568117AF943300E007"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph><paragraph id="H7B2EA992A6FD4EDD88DBE62596BDF7C"><enum>(3)</enum><header>Section <enum-in-header>221</enum-in-header> mortgage insurance</header><text>Paragraph (1) of section 221(d) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715l">12 U.S.C. 1715l(d)(1)</external-xref>) is amended—</text> <subparagraph id="HBB274209EB434F5296FED56B39B600F"><enum>(A)</enum><text>by striking <quote> and be held by</quote>; and</text> </subparagraph><subparagraph id="H5EC3665B54B3408B86E723CA52DFF596"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph><paragraph id="HA828614204744A8F9E73047B90EE3782"><enum>(4)</enum><header>Home equity conversion mortgage insurance</header><text>Paragraph (1) of section 255(d) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1715z–20(d)(1)) is amended by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </paragraph><paragraph id="HCE83C16E5FC4410885D67500A3705176"><enum>(5)</enum><header>War housing mortgage insurance</header><text>Paragraph (1) of section 603(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1738(b)(1)) is amended—</text> <subparagraph id="H08A3522D3A6943F49062F283BDF1B1BE"><enum>(A)</enum><text>by striking <quote>, and be held by,</quote>; and</text> </subparagraph><subparagraph id="HD54835462117477D88513523C7028B7"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph><paragraph id="HBEF859913E2C4B1897146F00E3D267DA"><enum>(6)</enum><header>War housing mortgage insurance for large-scale housing projects</header><text>Paragraph (1) of section 611(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1746">12 U.S.C. 1746(b)(1)</external-xref>) is amended—</text> <subparagraph id="HF4B0163272614955991E354469DA22F4"><enum>(A)</enum><text>by striking <quote> and be held by</quote>; and</text> </subparagraph><subparagraph id="HA53393E78C4B4CAF87C34EB9AA77CA87"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph><paragraph id="H47DAFE97A83C4BEF868B6B28706739B2"><enum>(7)</enum><header>Group practice facility mortgage insurance</header><text>Section 1101(b)(2) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1749aaa(b)(2)) is amended—</text> <subparagraph id="H6B82A1A9A23E436EB7AEC402AA22285C"><enum>(A)</enum><text>by striking <quote> and held by</quote>; and</text> </subparagraph><subparagraph id="HFD6826EAFA1A4108B6E228E4C600FD78"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph><paragraph id="H9D42D19CE09D431194DFAC449C432480"><enum>(8)</enum><header>National defense housing insurance</header><text>Paragraph (1) of section 903(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C. 1750b(b)(1)) is amended—</text> <subparagraph id="H5A16E1A2AF70407D9DEB78658631CD07"><enum>(A)</enum><text>by striking <quote>, and be held by,</quote>; and</text> </subparagraph><subparagraph id="H624F6462059049469052D80091982D67"><enum>(B)</enum><text>by striking <quote>as responsible and able to service the mortgage properly</quote>.</text> </subparagraph></paragraph></subsection></section><section id="HA22B27DF13EC4ADFA18FA0224DD808EE"><enum>515.</enum><header>Sense of Congress regarding technology for financial systems</header> <subsection id="H7CE0268581574CEFA76294B2AF3600A2"><enum>(a)</enum><header>Congressional Findings</header><text>The Congress finds the following:</text> <paragraph id="HC94AFC639F8F449B9F0000385DE9A615"><enum>(1)</enum><text>The Government Accountability Office has cited the FHA single family housing mortgage insurance program as a <quote>high-risk</quote> program, with a primary reason being non-integrated and out-dated financial management systems.</text> </paragraph><paragraph id="H4C5CA5C357EC4717A500CB8156B837F6"><enum>(2)</enum><text>The <quote>Audit of the Federal Housing Administration’s Financial Statements for Fiscal Years 2004 and 2003</quote>, conducted by the Inspector General of the Department of Housing and Urban Development reported as a material weakness that <quote>HUD/FHA’s automated data processing [ADP] system environment must be enhanced to more effectively support FHA’s business and budget processes</quote>.</text> </paragraph><paragraph id="H87BC7A1F94CB4ED9A2B892CC00513FC"><enum>(3)</enum><text>Existing technology systems for the FHA program have not been updated to meet the latest standards of the Mortgage Industry Standards Maintenance Organization and have numerous deficiencies that lenders have outlined.</text> </paragraph><paragraph id="HAE6FF082357D4A31A37631F91E627991"><enum>(4)</enum><text>Improvements to technology used in the FHA program will—</text> <subparagraph id="H3B40E31A1A1A46C99CEB6200E18DAB5B"><enum>(A)</enum><text>allow the FHA program to improve the management of the FHA portfolio, garner greater efficiencies in its operations, and lower costs across the program;</text> </subparagraph><subparagraph id="HAB38E22BC17644FAA644C3CB4C95DB2"><enum>(B)</enum><text>result in efficiencies and lower costs for lenders participating in the program, allowing them to better use the FHA products in extending homeownership opportunities to higher credit risk or lower-income families, in a sound manner.</text> </subparagraph></paragraph><paragraph id="H131FB199C07741FDA8DDDB02091994B5"><enum>(5)</enum><text>The Mutual Mortgage Insurance Fund operates without cost to the taxpayers and generates revenues for the Federal Government.</text> </paragraph></subsection><subsection id="H28C271FEFDF04C07A099ADDD1E2F962"><enum>(b)</enum><header>Sense of Congress</header><text>It is the sense of the Congress that—</text> <paragraph id="H1C5A49C173A4425599E471455DC1665C"><enum>(1)</enum><text>the Secretary of Housing and Urban Development should use a portion of the funds received from premiums paid for FHA single family housing mortgage insurance that are in excess of the amounts paid out in claims to substantially increase the funding for technology used in such FHA program;</text> </paragraph><paragraph id="H0A0BD989E35249BB893D2D596DFAE89E"><enum>(2)</enum><text>the goal of this investment should be to bring the technology used in such FHA program to the level and sophistication of the technology used in the conventional mortgage lending market, or to exceed such level; and</text> </paragraph><paragraph id="HCF302AC5481F4562B392FF69303CCB00"><enum>(3)</enum><text>the Secretary of Housing and Urban Development should report to the Congress not later than 180 days after the date of the enactment of this Act regarding the progress the Department is making toward such goal and if progress is not sufficient, the resources needed to make greater progress.</text> </paragraph></subsection></section><section id="HCC0C5D9884704DCB94D90522DE5415CA"><enum>516.</enum><header>Savings provision</header><text display-inline="no-display-inline">Any mortgage insured under title II of the <act-name parsable-cite="NHA">National Housing Act</act-name> before the date of enactment of this Act 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 Act.</text> </section><section id="H535FB7BDC02D46BB9CC7ABE486126673"><enum>517.</enum><header>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 title. The notice shall take effect upon issuance.</text> </section><enum>VI</enum><header>Homeownership for Veterans</header> <section id="HC178C8C8DCC34D34B16084DA876700F1"><enum>601.</enum><header>Temporary increase in maximum loan guaranty amount for housing loans guaranteed by Secretary of Veterans Affairs</header><text display-inline="no-display-inline">Section 201(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>; 122 Stat. 613) is amended by adding at the end the following new paragraph:</text> <quoted-block id="HE59D2914C8B74F819B008C8F26AF9145" style="OLC"> <paragraph id="HC225446177074000B242661B96352290"><enum>(3)</enum><header>Va guaranteed housing loans</header><text>Notwithstanding subparagraph (C) of section 3703(a)(1) of title 38, United States Code, for purposes of any loan described in that section for which the mortgagee issues a loan commitment during the period beginning on February 13, 2008, and ending at the end of December 31, 2008, the term <quote>maximum guaranty amount</quote> means the dollar amount that is equal to 25 percent of the amount determined under paragraph (2) of this subsection for a residence of the applicable size located in the area in which the residence for which the loan is made is located.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE5E9E12531AA436293F431BC61001C59"><enum>602.</enum><header>Counseling on mortgage foreclosures for members of the Armed Forces returning from service abroad</header> <subsection id="HC631143EE6074EA59363D14C1126ACCB"><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="HD40A60483ADA49389100B7D8143219E8"><enum>(b)</enum><header>Elements</header><text>The program required by subsection (a) shall include the following:</text> <paragraph id="H40C78EC1FFC74267BCFE0032D857D18E"><enum>(1)</enum><text>Credit counseling.</text> </paragraph><paragraph id="H4689EC976E1740F3B3C6C82BA4606100"><enum>(2)</enum><text>Home mortgage counseling.</text> </paragraph><paragraph id="HC4EE9E31AAD94A6F9FC660273FF8958E"><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="H409361163F71486F9633D71EAD141ED3"><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="HF1C1295D44E64CFC8933F39671EC42F7"><enum>603.</enum><header>Enhancement of protections for servicemembers relating to mortgages and mortgage foreclosures</header> <subsection id="H1D0E6BA6FA734655A991484EC90972B2"><enum>(a)</enum><header>Extension of period of protections against mortgage foreclosures</header> <paragraph id="H56E6C5A9783441B7835BC5F232693ED0"><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="H6DDC91B5A7F44DA9B6E4EA1D006D2BD"><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="HE5F375987B544799A9B3676428AAE00"><enum>(b)</enum><header>Treatment of mortgages as obligations subject to interest rate limitation</header><text>Section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527) is amended—</text> <paragraph id="HAFE36458AA514AD5B5267700B0E8F8F5"><enum>(1)</enum><text>in subsection (a)(1), by striking <quote>in excess of 6 percent</quote> and all that follows and inserting “in excess of 6 percent—</text> <quoted-block display-inline="no-display-inline" id="H51E23527F3314889B8CB33D3F68BD04C" style="OLC"> <subparagraph id="HEF0B19F78F0F41FBAB1CCD9DB52807E2"><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="H44985CBFC01241B7A84E1DDFCAA549C6"><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="HBD2DA151817E44A8A33228A505C76500"><enum>(2)</enum><text>by striking subsection (d) and inserting the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HB47D87E4D6B24D809973A404FC00BFF4" style="OLC"> <subsection id="H8B160304451044D980FF5F0F8066ECE"><enum>(d)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HFF3709BED48E45F5BC26701652A358B"><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="H75C2641BD8BE497EA91E3300FD05C39D"><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="H998D676EF63642FD940340BA17A391C7"><enum>(c)</enum><header>Effective date; sunset</header> <paragraph id="H3260EE2B05D044D9823134DA64A9CC7E"><enum>(1)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDACB4CFC1E9F4992B5542C519F6D7D65"><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>VII</enum><header>Mortgage Escrow Accounts</header> <section id="H02E9AD1D86CE4C1799B456931FA3B78"><enum>701.</enum><header>Escrow and impound accounts relating to certain consumer credit transactions</header> <subsection id="HBE5CE5CEC60E499D91DA4B588635972D"><enum>(a)</enum><header>In general</header><text>Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended by inserting after section 129 the following new section:</text> <quoted-block display-inline="no-display-inline" id="H2E95D77AA8EB4321BCE48DC96F130002" style="OLC"> <section id="HDC9411037C8F4A1F9BC15F573E97A003"><enum>129A.</enum><header>Escrow or impound accounts relating to certain consumer credit transactions</header> <subsection id="H360FBA8CD5CA4B2D91DEFA1DC3D1D5C7"><enum>(a)</enum><header>In general</header><text>Except as provided in subsection (b) or (c), a creditor, in connection with the formation or consummation of a consumer credit transaction secured by a first lien on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, shall establish, at the time of the consummation of such transaction, an escrow or impound account for the payment of taxes and hazard insurance, and, if applicable, flood insurance, mortgage insurance, ground rents, and any other required periodic payments or premiums with respect to the property or the loan terms, as provided in, and in accordance with, this section.</text> </subsection><subsection id="H8CD3DBEE1CED46EB9DD1DCE617A2B62C"><enum>(b)</enum><header>When required</header><text>No impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to the property may be required as a condition of a real property sale contract or a loan secured by a first deed of trust or mortgage on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, except when—</text> <paragraph id="H41BC9A2CF75F4D5890FE5E7960452256"><enum>(1)</enum><text>any such impound, trust, or other type of escrow or impound account for such purposes is required by Federal or State law;</text> </paragraph><paragraph id="HF159CA6230E34EF5A45155036EBA723B"><enum>(2)</enum><text>a loan is made, guaranteed, or insured by a State or Federal governmental lending or insuring agency;</text> </paragraph><paragraph id="H7DA4680B7ABC4521886DF99E726C8DFB"><enum>(3)</enum><text>the consumer’s debt-to-income ratio at the time the home mortgage is established taking into account income from all sources including the consumer’s employment exceeds 50 percent;</text> </paragraph><paragraph id="H1E70D17A81CF4AA3A66079FEEC0087EF"><enum>(4)</enum><text>the transaction is secured by a first mortgage or lien on the consumer’s principal dwelling and the annual percentage rate on the credit, at the time of consummation of the transaction, will exceed by more than 3.0 percentage points the yield on Treasury securities having comparable periods of maturity on the 15th day of the month immediately preceding the month in which the application of the extension of credit is received by the creditor;</text> </paragraph><paragraph id="HBF0BC039059642B0B1CA113F6F0118C3"><enum>(5)</enum><text>a consumer obtains a mortgage referred to in section 103(aa);</text> </paragraph><paragraph id="H4E9B0E760DE64E838B17B1D5A45B6438"><enum>(6)</enum><text>the original principal amount of such loan at the time of consummation of the transaction is—</text> <subparagraph id="H837FA05187AE464187E729E4F5A22CDA"><enum>(A)</enum><text>90 percent or more of the sale price, if the property involved is purchased with the proceeds of the loan; or</text> </subparagraph><subparagraph id="HC07465650B0A47F897612D4C4064B1A2"><enum>(B)</enum><text>90 percent or more of the appraised value of the property securing the loan;</text> </subparagraph></paragraph><paragraph id="H0EEA49E55BFE4798A8B0E44E2B07894D"><enum>(7)</enum><text>the combined principal amount of all loans secured by the real property exceeds 95 percent of the appraised value of the property securing the loans at the time of consummation of the last mortgage transaction;</text> </paragraph><paragraph id="H34835741346B4C76961E7507425C6569"><enum>(8)</enum><text display-inline="yes-display-inline">the consumer was the subject of a proceeding under title 11, United States Code, at any time during the 7-year period preceding the date of the transaction (as determined on the basis of the date of entry of the order for relief or the date of adjudication, as the case may be, with respect to such proceeding and included in a consumer report on the consumer under the Fair Credit Reporting Act); or</text> </paragraph><paragraph id="H830C516140B74EA4BFD9FC524F8338D9"><enum>(9)</enum><text>so required by the Board pursuant to regulation.</text> </paragraph></subsection><subsection id="H13F11D83D73747C58B90F9A835876C8F"><enum>(c)</enum><header>Duration of mandatory escrow or impound account</header><text>An escrow or impound account established pursuant to subsection (b), shall remain in existence for a minimum period of 5 years and until such borrower has sufficient equity in the dwelling securing the consumer credit transaction so as to no longer be required to maintain private mortgage insurance, or such other period as may be provided in regulations to address situations such as borrower delinquency, unless the underlying mortgage establishing the account is terminated.</text> </subsection><subsection id="HD284EFCDC25F45578D006E99B017F47"><enum>(d)</enum><header>Clarification on escrow accounts for loans not meeting statutory test</header><text>For mortgages not covered by the requirements of subsection (b), no provision of this section shall be construed as precluding the establishment of an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to the property—</text> <paragraph id="H5B4F2FEED3D8430B849402E0425D97AB"><enum>(1)</enum><text>on terms mutually agreeable to the parties to the loan;</text> </paragraph><paragraph id="HAB4AC1EACEBE4D288FDD5F79F6E8C3D2"><enum>(2)</enum><text>at the discretion of the lender or servicer, as provided by the contract between the lender or servicer and the borrower; or</text> </paragraph><paragraph id="H77B81C4979E94804ABCBE53E6B9D13DC"><enum>(3)</enum><text display-inline="yes-display-inline">pursuant to the requirements for the escrowing of flood insurance payments for regulated lending institutions in section 102(d) of the Flood Disaster Protection Act of 1973.</text> </paragraph></subsection><subsection id="HF0CB00E2F2EE4A33AAC0AA7649203719"><enum>(e)</enum><header>Administration of mandatory escrow or impound accounts</header> <paragraph id="HC94814CC7B674CA6009161521BC750AD"><enum>(1)</enum><header>In general</header><text>Except as may otherwise be provided for in this title or in regulations prescribed by the Board, escrow or impound accounts established pursuant to subsection (b) shall be established in a federally insured depository institution.</text> </paragraph><paragraph id="H40FBFA42A8EC4EFBB29522EF8067451"><enum>(2)</enum><header>Administration</header><text>Except as provided in this section or regulations prescribed under this section, an escrow or impound account subject to this section shall be administered in accordance with—</text> <subparagraph id="HCF2E5654CEC54FEF90447E5539E4FBE9"><enum>(A)</enum><text>the Real Estate Settlement Procedures Act of 1974 and regulations prescribed under such Act;</text> </subparagraph><subparagraph id="HE3159F4340E54143B7C9EBFFF083BA7F"><enum>(B)</enum><text>the Flood Disaster Protection Act of 1973 and regulations prescribed under such Act; and</text> </subparagraph><subparagraph id="H3EAAF84B6FFA4648936DF1A043F2CB53"><enum>(C)</enum><text>the law of the State, if applicable, where the real property securing the consumer credit transaction is located.</text> </subparagraph></paragraph><paragraph id="H51CEBE516A1843EB9F559883825F095D"><enum>(3)</enum><header>Applicability of payment of interest</header><text>If prescribed by applicable State or Federal law, each creditor shall pay interest to the consumer on the amount held in any impound, trust, or escrow account that is subject to this section in the manner as prescribed by that applicable State or Federal law.</text> </paragraph><paragraph id="HFCAFD766B713466D8FCC110838023B4B"><enum>(4)</enum><header>Penalty coordination with RESPA</header><text display-inline="yes-display-inline">Any action or omission on the part of any person which constitutes a violation of the Real Estate Settlement Procedures Act of 1974 or any regulation prescribed under such Act for which the person has paid any fine, civil money penalty, or other damages shall not give rise to any additional fine, civil money penalty, or other damages under this section, unless the action or omission also constitutes a direct violation of this section.</text> </paragraph></subsection><subsection id="HBF3CA6C85EA44ADE9500E64462E8169B"><enum>(f)</enum><header>Disclosures relating to mandatory escrow or impound account</header><text>In the case of any impound, trust, or escrow account that is subject to this section, the creditor shall disclose by written notice to the consumer at least 3 business days before the consummation of the consumer credit transaction giving rise to such account or in accordance with timeframes established in prescribed regulations the following information:</text> <paragraph id="H5A8AA9F32BCA41B8A7D8B66724976FC"><enum>(1)</enum><text>The fact that an escrow or impound account will be established at consummation of the transaction.</text> </paragraph><paragraph id="H6C12F0703F98465CA5F3BFD896D3FFF2"><enum>(2)</enum><text>The amount required at closing to initially fund the escrow or impound account.</text> </paragraph><paragraph id="H4831A7F3351842AE883E1CF6B4D39B20"><enum>(3)</enum><text>The amount, in the initial year after the consummation of the transaction, of the estimated taxes and hazard insurance, including flood insurance, if applicable, and any other required periodic payments or premiums that reflects, as appropriate, either the taxable assessed value of the real property securing the transaction, including the value of any improvements on the property or to be constructed on the property (whether or not such construction will be financed from the proceeds of the transaction) or the replacement costs of the property.</text> </paragraph><paragraph id="HF836534B4F6B4127B15CBB29DF53B678"><enum>(4)</enum><text>The estimated monthly amount payable to be escrowed for taxes, hazard insurance (including flood insurance, if applicable) and any other required periodic payments or premiums.</text> </paragraph><paragraph id="HE939F06F7EC249F39F45609628EDC9FA"><enum>(5)</enum><text>The fact that, if the consumer chooses to terminate the account at the appropriate time in the future, the consumer will become responsible for the payment of all taxes, hazard insurance, and flood insurance, if applicable, as well as any other required periodic payments or premiums on the property unless a new escrow or impound account is established.</text> </paragraph></subsection><subsection id="HA5A32AD5CA9C43A0AFF9D978DF6F26E"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text> <paragraph id="H542781EF83EE48829CD398A35108C472"><enum>(1)</enum><header>Flood insurance</header><text>The term <quote>flood insurance</quote> means flood insurance coverage provided under the national flood insurance program pursuant to the National Flood Insurance Act of 1968.</text> </paragraph><paragraph id="H5FAE1915111A4DEA97C6C4F708BD6EB"><enum>(2)</enum><header>Hazard insurance</header><text>The term <quote>hazard insurance</quote> shall have the same meaning as provided for <quote>hazard insurance</quote>, <quote>casualty insurance</quote>, <quote>homeowner’s insurance</quote>, or other similar term under the law of the State where the real property securing the consumer credit transaction is located.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB1C88EDA57A34D199872CAB3D0A514CD"><enum>(b)</enum><header>Implementation</header> <paragraph id="H0C7B400DA4BF44679D9732F3A0ECC4AC"><enum>(1)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, (hereafter in this Act referred to as the <quote>Federal banking agencies</quote>) and the Federal Trade Commission shall prescribe, in final form, such regulations as determined to be necessary to implement the amendments made by subsection (a) before the end of the 180-day period beginning on the date of the enactment of this Act.</text> </paragraph><paragraph id="H0C672BD9E21B4C00B5D71BE38B55D6B3"><enum>(2)</enum><header>Effective date</header><text>The amendments made by subsection (a) shall only apply to covered mortgage loans consummated after the end of the 1-year period beginning on the date of the publication of final regulations in the Federal Register.</text> </paragraph></subsection><subsection id="H63DA21B99132448CB9B253E9EC3BE39D"><enum>(c)</enum><header>Clerical Amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the Truth in Lending Act is amended by inserting after the item relating to section 129 the following new item:</text> <quoted-block display-inline="no-display-inline" id="H05A6CF5D43BE48D6B446CE95424EC4B" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">129A. Escrow or impound accounts relating to certain consumer credit transactions.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section display-inline="no-display-inline" id="H54E23DD7065C4186B281E4CFE58D486B" section-type="subsequent-section"><enum>702.</enum><header>Disclosure notice required for consumers who waive escrow services</header> <subsection id="HFB628D6D92C04CBBABDCEC7B8B35315"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 129A of the Truth in Lending Act (as added by section 701) is amended by adding at the end the following new subsection:</text> <quoted-block id="H534452DF386945E98CCDA3489EF396EC" style="OLC"> <subsection id="HCDC94596606E47019DD0FF07ED16A875"><enum>(h)</enum><header>Disclosure notice required for consumers who waive escrow services</header> <paragraph id="H1CB8CAC1D0264F4EA8A7EB54AADF0037"><enum>(1)</enum><header>In general</header><text>If—</text> <subparagraph id="H632B189AC4E6453682E87FFEEEC89687"><enum>(A)</enum><text>an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to real property securing a consumer credit transaction is not established in connection with the transaction; or</text> </subparagraph><subparagraph id="HADD209F12EC6438F89511D07F491A415"><enum>(B)</enum><text>a consumer chooses, at any time after such an account is established in connection with any such transaction and in accordance with any statute, regulation, or contractual agreement, to close such account,</text> </subparagraph><continuation-text continuation-text-level="paragraph">the creditor or servicer shall provide a timely and clearly written disclosure to the consumer that advises the consumer of the responsibilities of the consumer and implications for the consumer in the absence of any such account.</continuation-text></paragraph><paragraph id="HB4CB16410E584DCE9D92671945822354"><enum>(2)</enum><header>Disclosure requirements</header><text>Any disclosure provided to a consumer under paragraph (1) shall include the following:</text> <subparagraph id="H0133EB9B031D4E18811107563125A423"><enum>(A)</enum><text>Information concerning any applicable fees or costs associated with either the non-establishment of any such account at the time of the transaction, or any subsequent closure of any such account.</text> </subparagraph><subparagraph id="H6BC0F453CFA24C33B7237DB09D3D3E57"><enum>(B)</enum><text>A clear and prominent notice that the consumer is responsible for personally and directly paying the non-escrowed items, in addition to paying the mortgage loan payment, in the absence of any such account, and the fact that the costs for taxes, insurance, and related fees can be substantial.</text> </subparagraph><subparagraph id="H4DB876F3DA044CE49993D113D04B4E3F"><enum>(C)</enum><text>A clear explanation of the consequences of any failure to pay non-escrowed items, including the possible requirement for the forced placement of insurance by the creditor or servicer and the potentially higher cost (including any potential commission payments to the servicer) or reduced coverage for the consumer in the event of any such creditor-placed insurance.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H807215D886B042C7B6A12600A9437C4F"><enum>(b)</enum><header>Implementation</header> <paragraph id="H3414ECF58D394AFCBE4EE65393A5500"><enum>(1)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Federal banking agencies and the Federal Trade Commission shall prescribe, in final form, such regulations as such agencies determine to be necessary to implement the amendments made by subsection (a) before the end of the 180-day period beginning on the date of the enactment of this Act.</text> </paragraph><paragraph id="HC405E7B1852B47F1AB6DD930A2C4EC32"><enum>(2)</enum><header>Effective date</header><text>The amendments made by subsection (a) shall only apply in accordance with the regulations established in paragraph (1) and beginning on the date occurring 180 days after the date of the publication of final regulations in the Federal Register.</text> </paragraph></subsection></section><enum>VIII</enum><header>Mortgage Fraud</header> <section id="HEC277A5DDD984ECA8E001E021D415DF5"><enum>801.</enum><header>Authorization of appropriations for mortgage fraud prevention, investigation, and prosecution</header><text display-inline="no-display-inline">For fiscal years 2009, 2010, 2011, 2012, and 2013, there are authorized to be appropriated to the Attorney General a total of $20,000,000, in addition to other amounts authorized to be appropriated to the Attorney General for any such fiscal year, for the purpose of enhancing the efforts of the Department of Justice and the Federal Bureau of Investigation to prevent, investigate, and prosecute mortgage fraud.</text> </section><enum>IX</enum><header>Appraisal Activities</header> <section id="H45733D9832DB418CB4EAD700CF6E1ECE"><enum>901.</enum><header>Property appraisal requirements</header> <subsection id="H9B645506686E49289094A036DF7DE700"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Chapter 2 of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1631">15 U.S.C. 1631 et seq.</external-xref>) is amended by inserting after section 129A (as added by section 701(a)) the following new section:</text> <quoted-block display-inline="no-display-inline" id="HEE60F42D8A44438AA96CED192F76B290" style="OLC"> <section id="H05BFEC2C8F364FDCA6AE2CF0B800186D"><enum>129B</enum><header>Provisions applicable to nontraditional mortgages</header> <subsection id="H1B6BD1F376164129B54C730096FA38C9"><enum>(a)</enum><header>Property appraisal requirements</header> <paragraph id="HD21E9BB55EC047E0A0243477CDE114CC"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">A creditor may not extend credit in the form of a subprime mortgage to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this subsection.</text> </paragraph><paragraph id="H198189FFA4C84772B9D1551372C200EB"><enum>(2)</enum><header>Appraisal requirements</header> <subparagraph id="H10D66DF484074E42AEAF47212D3027DE"><enum>(A)</enum><header>Physical inspection</header><text>An appraisal of property to be secured by a subprime mortgage does not meet the requirement of this subsection unless it is performed by a qualified appraiser who conducts a physical inspection of the mortgaged property.</text> </subparagraph><subparagraph id="HA80B712EA767460381704BFB00EF348"><enum>(B)</enum><header>Second appraisal under certain circumstances</header> <clause id="HC298F5550933406E91418F67C2104341"><enum>(i)</enum><header>In general</header><text>If the purpose of the subprime mortgage is to finance the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase or acquisition of such property by that person at a price that was lower than the current sale price of the property, the creditor shall obtain a second appraisal from a second qualified appraiser that supports the current sale price of the property.</text> </clause><clause id="H9043FFB5CC1A41D2825C3E093822F955"><enum>(ii)</enum><header>No cost to consumer</header><text>The cost of any second appraisal required under clause (i) may not be charged to the consumer.</text> </clause></subparagraph><subparagraph id="H9B557847779742E387A95804128E6179"><enum>(C)</enum><header>Qualified appraiser defined</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>qualified appraiser</term> means a person who—</text> <clause id="HD2C0847422994851ACDD00AA5BBC57EF"><enum>(i)</enum><text>is certified or licensed by the State in which property to be appraised is located; and</text> </clause><clause id="HF5CE538FF541405EBE2BF3DFFA929600"><enum>(ii)</enum><text>performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the regulations prescribed under such title, as in effect on the date of the appraisal.</text> </clause></subparagraph></paragraph><paragraph id="HF78EE8B0AB6C4343857CE9CF6892FE9D"><enum>(3)</enum><header>Free copy of appraisal</header><text display-inline="yes-display-inline">A creditor shall provide 1 copy of each appraisal conducted in accordance with this subsection in connection with a higher-cost mortgage to the consumer without charge.</text> </paragraph><paragraph id="HEF1F6A59579849C4ADF06B77EFDCD1B3"><enum>(4)</enum><header>Violations</header><text display-inline="yes-display-inline">In addition to any other liability to any person under this title, a creditor found to have willfully failed to obtain an appraisal as required in this subsection shall be liable to the consumer for the sum of $2,000.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="HBA730B013A154F6A008C8BF6FD41E933"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for chapter 2 of the Truth in Lending Act is amended by inserting after the item relating to section 129A (as added by section 701(c)) the following new item:</text> <quoted-block display-inline="no-display-inline" id="H6720AF5CF1874703AA115FE12898451E" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">129B. Provisions applicable to nontraditional mortgages.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HF8A33A5A209A43DDAB31ABF488B395D5"><enum>902.</enum><header>Amendments relating to appraisal subcommittee of FIEC, appraiser independence, and approved appraiser education</header> <subsection id="HE80E795AA0E14600BC5D5B46808BD4D4"><enum>(a)</enum><header>Annual report of appraisal subcommittee</header><text>Section 1103(a)(4) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3332(a)(4)) is amended by inserting <quote>in detail the activities of the Appraisal Subcommittee and</quote> after <quote>which describes</quote>.</text> </subsection><subsection id="H5832E30E09874A6AB4A6B97ECC498963"><enum>(b)</enum><header>Open meetings</header><text display-inline="yes-display-inline">Section 1104(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3333(b)) is amended by inserting <quote>in public session after notice to the general public</quote> after <quote>shall meet</quote>.</text> </subsection><subsection id="H5371DDB23FF042819D60C5AAE600F815"><enum>(c)</enum><header>Regulations</header><text>Section 1106 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3335">12 U.S.C. 3335</external-xref>) is amended by inserting <quote>prescribe regulations after notice and opportunity for comment,</quote> after <quote>hold hearings</quote>.</text> </subsection><subsection id="H6DCA6F1E024C41F4BA441EC24800D737"><enum>(d)</enum><header>Criteria</header><text>Section 1116 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3345">12 U.S.C. 3345</external-xref>) is amended—</text> <paragraph id="H2C1C2F2DB98C49C58124B580BAE7D04B"><enum>(1)</enum><text>in subsection (c), by inserting <quote>whose criteria for the licensing of a real estate appraiser currently meet or exceed the minimum criteria issued by the Appraiser Qualifications Board of The Appraiser Foundation for the licensing of real estate appraisers</quote> before the period at the end; and</text> </paragraph><paragraph id="HCCED5CBEA6CE4762B08C2DB9A21B648D"><enum>(2)</enum><text>by striking subsection (e).</text> </paragraph></subsection><subsection id="H5BAF599A2C134546A6F8516013A5D118"><enum>(e)</enum><header>Temporary practice</header><text>Section 1122(a)(1) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3351">12 U.S.C. 3351(a)(1)</external-xref>) is amended—</text> <paragraph id="H78694055E8CA4D74B458E6D862F16155"><enum>(1)</enum><text>by striking subparagraph (A);</text> </paragraph><paragraph id="HEF8D9A3475F54A9998DAF240223F73C1"><enum>(2)</enum><text>by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and</text> </paragraph><paragraph id="HBC443E28447C423891F166A395632604"><enum>(3)</enum><text>by moving the left margin of such subparagraphs 2 ems to the right.</text> </paragraph></subsection><subsection id="H151C106F0E044147AF54305BBF75A9F"><enum>(f)</enum><header>Reciprocity</header><text>Subsection (b) of section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3351">12 U.S.C. 3351(b)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H76307135864E4AE896004B78C50273E6" style="OLC"> <subsection id="HAD95790979E14878B04664BC09702905"><enum>(b)</enum><header>Reciprocity</header><text display-inline="yes-display-inline">A State appraiser certifying or licensing agency shall issue a reciprocal certification or license for an individual from another State when—</text> <paragraph id="H2A232564A4244B4892D565C0AFDB5F00"><enum>(1)</enum><text>the appraiser licensing and certification program of such other State is in compliance with the provisions of this title; and</text> </paragraph><paragraph id="H45FF90AB878B4EA592099F4B33DD4694"><enum>(2)</enum><text>the appraiser holds a valid certification from a State whose requirements for certification or licensing meet the requirements for certification and licensing as established by the Appraiser Qualifications Board of The Appraisal Foundation.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HEED4D2C4EA074CC684877E8F921C5DAC"><enum>(g)</enum><header>Consideration of professional appraisal designations</header><text>Section 1122(d) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351(d)) is amended by adding at the end the following new sentence: <quote>Consideration may be given for professional appraisal designations conferred by sponsoring organizations of The Appraisal Foundation as an indication of proficiency in addition to the criteria established by certification or licensing.</quote>.</text> </subsection><subsection id="H0A6A500867494BC596D78D9DE4B66750"><enum>(h)</enum><header>Appraiser independence</header><text>Section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3351">12 U.S.C. 3351</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HEDB63E6EF77145798B38CD768C39739" style="OLC"> <subsection id="H26C6C3EF0F4D4CA2AF338334BA52F711"><enum>(g)</enum><header>Appraiser independence</header> <paragraph id="HBA75A3B47D6840DF84A8F51E957E0108"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No mortgage lender, mortgage broker or mortgage banker, real estate broker, nor any other person with an interest in a real estate transaction involving an appraisal shall improperly influence or attempt to improperly influence, through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.</text> </paragraph><paragraph id="HD80BA97EFB944C50B83237B231D467D3"><enum>(2)</enum><header>Exceptions</header><text>The requirements of paragraph (1) shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, or any other person with an interest in a real estate transaction from asking an appraiser to provide 1 or more of the following services:</text> <subparagraph id="HADDB966EA2044954ACEAD6C3D9EB01BC"><enum>(A)</enum><text>Consider additional, appropriate property information.</text> </subparagraph><subparagraph id="HDEEC851E2FD043F89287F4C5A8D7CBD9"><enum>(B)</enum><text>Provide further detail, substantiation, or explanation for the appraiser’s value conclusion.</text> </subparagraph><subparagraph id="H08E1CA8C17DC44B1A7E4211155A029F1"><enum>(C)</enum><text>Correct errors in the appraisal report.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H225D1FD708AA4C78A6FFC57CBDB64ED"><enum>(i)</enum><header>Appraiser education</header><text>Section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/3351">12 U.S.C. 3351</external-xref>) is amended by inserting after subsection (g) (as added by subsection (h) of this section) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H3B15EFCC9DAA4679B600195BD3A5EA55" style="OLC"> <subsection id="H3DE85CF8C38D496A82001F2FF2395786"><enum>(h)</enum><header>Approved education</header><text display-inline="yes-display-inline">A State certifying or licensing agency shall accept courses and seminars approved by the Appraiser Qualification Board’s Course Approval Program.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HE38E58EC57934517995CE6A9C9DF5EC3"><enum>903.</enum><header>Study required on improvements in appraisal process and compliance programs</header> <subsection id="H577B0FC08285407D8C45ED6511F83BEF"><enum>(a)</enum><header>Study</header><text>The Comptroller General shall conduct a comprehensive study on possible improvements in the appraisal process generally, and specifically on the consistency in and the effectiveness of, and possible improvements in, State compliance efforts and programs in accordance with title XI of Financial Institutions Reform, Recovery, and Enforcement Act of 1989.</text> </subsection><subsection id="H187D0257613A4B208C8BE555BA69FD00"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Before the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report on the study under subsection (a) to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for administrative or legislative action, at the Federal or State level, as the Comptroller General may determine to be appropriate.</text> </subsection></section><enum>X</enum><header>Federal Housing Finance Reform</header> <section id="id81A61D71C34B4D5489A8CF3C9E80C690"><enum>1001.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Federal Housing Finance Reform Act of 2008</short-title></quote>.</text> </section><section id="H77AF24E352CA40F7B353494200B6F0EE"><enum>1002.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development 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="H65D63C0286D447B79F10523E1DE64F32"><enum>(1)</enum><text>in paragraph (7), by striking <quote>an enterprise</quote> and inserting <quote>a regulated entity</quote>;</text> </paragraph><paragraph id="HDC07FBF35A894BE29B1BCEBC1102F431"><enum>(2)</enum><text>by striking <quote>the enterprise</quote> each place such term appears (except in paragraphs (4) and (18)) and inserting <quote>the regulated entity</quote>;</text> </paragraph><paragraph id="H68832231DE73436BB5B4857D90D41E45"><enum>(3)</enum><text>in paragraph (5), by striking <quote>Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> and inserting <quote>Federal Housing Finance Agency</quote>;</text> </paragraph><paragraph id="H380461CF82804D75B89FF11E45C31D2"><enum>(4)</enum><text>in each of paragraphs (8), (9), (10), and (19), by striking <quote>Secretary</quote> each place that term appears and inserting <quote>Director</quote>;</text> </paragraph><paragraph id="HDC511F2B6A764B0BB3A8004C8BABC3A5"><enum>(5)</enum><text>in paragraph (13), by inserting <quote>, with respect to an enterprise,</quote> after <quote>means</quote>;</text> </paragraph><paragraph id="H3FD087B9885B4091B4FB3FEEA6F4A5F7"><enum>(6)</enum><text>by redesignating paragraphs (16) through (19) as paragraphs (20) through (23), respectively;</text> </paragraph><paragraph id="H87F5A931A694474BA361D2D7373F006F"><enum>(7)</enum><text>by striking paragraphs (14) and (15) and inserting the following new paragraphs:</text> <quoted-block id="H6AB0676828784223B000B753E5004554" style="OLC"> <paragraph id="HCCE1BBFB99694205A6F1EB91E536D99B"><enum>(18)</enum><header>Regulated entity</header><text>The term <term>regulated entity</term> means—</text> <subparagraph id="HC54515020FF94449846F4982C6237F2F"><enum>(A)</enum><text>the Federal National Mortgage Association and any affiliate thereof;</text> </subparagraph><subparagraph id="HFFA99B42F541411EB5304C331509A583"><enum>(B)</enum><text>the Federal Home Loan Mortgage Corporation and any affiliate thereof; and</text> </subparagraph><subparagraph id="H211EB4D833134813A710C2B5CB899E84"><enum>(C)</enum><text>each Federal home loan bank.</text> </subparagraph></paragraph><paragraph id="H2396D6F2CD9944EE9654691EB3B055FB"><enum>(19)</enum><header>Regulated entity-affiliated party</header><text>The term <term>regulated entity-affiliated party</term> means—</text> <subparagraph id="H243B4657A1CE479E815E6269444658CA"><enum>(A)</enum><text display-inline="yes-display-inline">any director, officer, employee, or agent for, a regulated entity, or controlling shareholder of an enterprise;</text> </subparagraph><subparagraph id="H950687D1E98A4969A6FB84ADAAF57849"><enum>(B)</enum><text>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, except that a shareholder of a regulated entity shall not be considered to have participated in the affairs of that regulated entity solely by reason of being a member or customer of the regulated entity;</text> </subparagraph><subparagraph id="H21D317D08C574751AED851197099C3FB"><enum>(C)</enum><text>any independent contractor for a regulated entity (including any attorney, appraiser, or accountant), if—</text> <clause id="H6F1AFE007FF6421B91009B00B676B0BC"><enum>(i)</enum><text>the independent contractor knowingly or recklessly participates in—</text> <subclause id="H032490C8470B463CABC66F28A69DA256"><enum>(I)</enum><text>any violation of any law or regulation;</text> </subclause><subclause id="H24A2E05B06C549E3B27200E6E3EF995"><enum>(II)</enum><text>any breach of fiduciary duty; or</text> </subclause><subclause id="H0AC052B577C94190937B8BA36C820072"><enum>(III)</enum><text>any unsafe or unsound practice; and</text> </subclause></clause><clause id="HFDF024258DD746D7B2B4E31667187FAA"><enum>(ii)</enum><text>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; and</text> </clause></subparagraph><subparagraph id="H650E30137B934345BF22C2D2D8F5AC55"><enum>(D)</enum><text>any not-for-profit corporation that receives its principal funding, on an ongoing basis, from any regulated entity.</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H105A2C33E5D04456AB086780B784767D"><enum>(8)</enum><text>by redesignating paragraphs (8) through (13) as paragraphs (12) through (17), respectively;</text> </paragraph><paragraph id="HB644FF7827604CBA89EEF52CB6577D99"><enum>(9)</enum><text>by inserting after paragraph (7) the following new paragraph:</text> <quoted-block id="H09DC87E0A17440EA97C480A549F11DEA" style="OLC"> <paragraph id="H1B6536C003214FADBB77C52DB33F10C6"><enum>(11)</enum><header>Federal home loan bank</header><text>The term <term>Federal home loan bank</term> means a bank established under the authority of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>.</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H6B726812FCD6423793DDD53521B1B454"><enum>(10)</enum><text>by redesignating paragraphs (2) through (7) as paragraphs (5) through (10), respectively; and</text> </paragraph><paragraph id="HE4A727A997D14579A71000E6F8898C86"><enum>(11)</enum><text>by inserting after paragraph (1) the following new paragraphs:</text> <quoted-block id="HC682CFD3256C4A30BE26E9592100A757" style="OLC"> <paragraph id="H20E0ACEDC81E41FD95C1B57D74C07DA1"><enum>(2)</enum><header>Agency</header><text>The term <term>Agency</term> means the Federal Housing Finance Agency.</text> </paragraph><paragraph id="H320C2920906E49C18E2BA6E4FB7D7E97"><enum>(3)</enum><header>Authorizing statutes</header><text>The term <term>authorizing statutes</term> means—</text> <subparagraph id="HA0ADF5C89F6641A79E12C9B02E23C2C4"><enum>(A)</enum><text>the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>;</text> </subparagraph><subparagraph id="HFBB4D5005A644DA200E9006EE6B29F82"><enum>(B)</enum><text>the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>; and</text> </subparagraph><subparagraph id="H2F297B64D6B343C58163D41DFE9AD38"><enum>(C)</enum><text>the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>.</text> </subparagraph></paragraph><paragraph id="H7E8801DDF16741288F2873712B53D543"><enum>(4)</enum><header>Board</header><text>The term <term>Board</term> means the Federal Housing Enterprise Board established under section 1313B.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><subtitle id="HE5EBE68DC26E4FCB83A82F66FB2DE8E4"><enum>A</enum><header>Reform of regulation of enterprises and federal home loan banks</header> <chapter id="HC941EB2B2C8D4B6D9FFCCB743E8F3BDC"><enum>1</enum><header>Improvement of Safety and Soundness</header> <section id="HEC56CDF4B77B49D5BD748991BB5B0055"><enum>1011.</enum><header>Establishment of the Federal Housing Finance Agency</header> <subsection id="HFCE5A2454C01426F91A3A62B195505B9"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<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 act-name="Housing and Community Development Act of 1992" id="H391AE5329A5C4403A4B9FB782364AB2" style="OLC"> <section id="H1CF641CAA67A42C4B27B22CF4844D8A0"><enum>1311.</enum><header>Establishment of the Federal Housing Finance Agency</header> <subsection id="HFD27D1A6C7574D94A9D447BF6530618E"><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="H7626E148B09C45CDB0F4CEDA41AC53D1"><enum>(b)</enum><header>General Supervisory and Regulatory Authority</header> <paragraph id="H988BF274206747F09D25B2EB01EBA0FE"><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="H03154F89B4C8426F00C4DB795530C7F2"><enum>(2)</enum><header>Authority over fannie mae, freddie mac, and federal home loan banks</header><text display-inline="yes-display-inline">The Director of the Federal Housing Finance Agency shall have general supervisory and regulatory authority over each regulated entity and shall exercise such general regulatory and supervisory authority, including such duties and authorities set forth under section 1313 of this Act, to ensure that the purposes of this Act, the authorizing statutes, and any other applicable law are carried out. The Director shall have the same supervisory and regulatory authority over any joint office of the Federal home loan banks, including the Office of Finance of the Federal Home Loan Banks, as the Director has over the individual Federal home loan banks.</text> </paragraph></subsection><subsection id="H569CDB0FE6CA4E809518513145AAE81F"><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.</text> </subsection></section><section id="HD727BE2108BA458A96232EF43485E935"><enum>1312.</enum><header>Director</header> <subsection id="HCCA01F5B73F9438EB3C506FD2F1F9055"><enum>(a)</enum><header>Establishment of Position</header><text>There is established the position of the Director of the Federal Housing Finance Agency, who shall be the head of the Agency.</text> </subsection><subsection id="H884BE1EC2E2C431B97AE4DFC4192B059"><enum>(b)</enum><header>Appointment; Term</header> <paragraph id="HCE074CD96E7D44DB92A994703184F24"><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="HE94E9B3B8E4A425CA4DC9FC7571321CC"><enum>(2)</enum><header>Term and removal</header><text>The Director shall be appointed for a term of 5 years and may be removed by the President only for cause.</text> </paragraph><paragraph id="HFEF04138AF324968943714B400E4B6B4"><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="H13EE48D8AC684D58888D37A700234C92"><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="H2105F5C6BC9E484AA88901A12ECAA73E"><enum>(5)</enum><header>Transitional provision</header><text>Notwithstanding paragraphs (1) and (2), the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development shall serve as the Director until a successor has been appointed under paragraph (1).</text> </paragraph></subsection><subsection id="H83F3B59C639A48EE904D008D90A2464E"><enum>(c)</enum><header>Deputy Director of the Division of Enterprise Regulation</header> <paragraph id="H4B08FC2757F74A67B987B15F8B1F7133"><enum>(1)</enum><header>In general</header><text>The Agency shall have a Deputy Director of the Division of Enterprise Regulation, who shall be appointed by the Director from among individuals who are citizens of the United States, and have a demonstrated understanding of financial management or oversight and of mortgage securities markets and housing finance.</text> </paragraph><paragraph id="H611BF32B607E4626921D79A7D22DEC77"><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="H34F3A291898D478C8E638B779EDF6547"><enum>(d)</enum><header>Deputy Director of the Division of Federal Home Loan Bank Regulation</header> <paragraph id="H92E6FB94289446B0904E13512188C22E"><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 appointed by the Director from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight and of the Federal Home Loan Bank System and housing finance.</text> </paragraph><paragraph id="HE2FA6CCF0D04411CA69D7D28BBB0611F"><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="HC59B062048274610997763522D374059"><enum>(e)</enum><header>Deputy Director for Housing</header> <paragraph id="H2F65A9E8E0A04C409FAFDB73628DCC49"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Agency shall have a Deputy Director for Housing, who shall be appointed 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 and of community and economic development.</text> </paragraph><paragraph id="HFF3F20C2F8444F5092191F7554874950"><enum>(2)</enum><header>Functions</header><text display-inline="yes-display-inline">The Deputy Director for Housing 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></subsection><subsection id="H58BAE643248D457B8B1DE590C36F7BD3"><enum>(f)</enum><header>Limitations</header><text>The Director and each of the Deputy Directors may not—</text> <paragraph id="H09DB89A5A3AD4DA3881D3FA7E007193"><enum>(1)</enum><text>have any direct or indirect financial interest in any regulated entity or regulated entity-affiliated party;</text> </paragraph><paragraph id="HCD54FB7F187B4960B6B85B7BF1BF6779"><enum>(2)</enum><text>hold any office, position, or employment in any regulated entity or regulated entity-affiliated party; or</text> </paragraph><paragraph id="HDC594F404EEB4101A4E9F7C43573D06"><enum>(3)</enum><text>have served as an executive officer or director of any regulated entity, or regulated entity-affiliated party, at any time during the 3-year period ending on the date of appointment of such individual as Director or Deputy Director.</text> </paragraph></subsection><subsection id="H7DB4C75274364F16863059E81CE000CC"><enum>(g)</enum><header>Ombudsman</header><text>The Director shall establish the position of the Ombudsman in the Agency. The Director shall provide that the Ombudsman will consider complaints and appeals from any regulated entity and any person that has a business relationship with a regulated entity and shall specify the duties and authority of the Ombudsman.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HD928C2BCF7CB4834B790D33F028BA05E"><enum>(b)</enum><header>Appointment of Director</header><text>Notwithstanding any other provision of law or of this title, the President may, any time after the date of the enactment of this Act, appoint an individual to serve as the Director of the Federal Housing Finance Agency, as such office is established by the amendment made by subsection (a). This subsection shall take effect on the date of the enactment of this Act.</text> </subsection></section><section id="H95261FD3E1BC4232AECCC41F1850414E"><enum>1012.</enum><header>Duties and authorities of Director</header> <subsection id="H4D45B71982064E339FE6B9BC06A1FD7C"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4513">12 U.S.C. 4513</external-xref>) is amended by striking section 1313 and inserting the following new sections:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H9639A608BFB64DDD83F2CF8D07BC32FC" style="OLC"> <section id="HD27BE72B38DA44FD001DC26606C0009"><enum>1313.</enum><header>Duties and authorities of Director</header> <subsection id="HB2D6627D7040479584E791CAC633A523"><enum>(a)</enum><header>Duties</header> <paragraph id="H662D18907D804895A9B7DF0399D5FACE"><enum>(1)</enum><header>Principal duties</header><text>The principal duties of the Director shall be—</text> <subparagraph id="H057ECD993C5D4629B046FC89C9878C2C"><enum>(A)</enum><text display-inline="yes-display-inline">to oversee the operations of each regulated entity and any joint office of the Federal Home Loan Banks; and</text> </subparagraph><subparagraph id="H4FCA83A50C2E41CEAB33AC58AE2100D"><enum>(B)</enum><text>to ensure that—</text> <clause id="H5FDD70896A614F0587C4A80678DAC52D"><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="H0237A6D71A5B441687ECB4BACF7FEEB6"><enum>(ii)</enum><text>the operations and activities of each regulated entity foster liquid, efficient, competitive, and resilient national housing finance markets that minimize the cost of housing finance (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="HC0BAC8B4E232457FBC4F3F1B56CF5FE2"><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; and</text> </clause><clause id="H54A8388F3B0542688F75A0FD4F3D62C1"><enum>(iv)</enum><text>each regulated entity carries out its statutory mission only through activities that are consistent with this title and the authorizing statutes.</text> </clause></subparagraph></paragraph><paragraph id="HE519D1DB96094FE28C99FC16A46F00BE"><enum>(2)</enum><header>Scope of authority</header><text>The authority of the Director shall include the authority—</text> <subparagraph id="HF135D3F3D83D4131BA78C443FBF08900"><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 an enterprise; and</text> </subparagraph><subparagraph id="H3FE59BEC0AF747C3AB923EE1847E27CD"><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="H8B89AEC638A747CEBC1EEB0069518E4C"><enum>(b)</enum><header>Delegation of Authority</header><text>The Director may delegate to officers or employees of the Agency, including each of the Deputy Directors, any of the functions, powers, or duties of the Director, as the Director considers appropriate.</text> </subsection><subsection id="H9D8EF587E4E44BFE0051C0D95D737BF3"><enum>(c)</enum><header>Litigation Authority</header> <paragraph id="H7B3530A0E5844DDC9007363519913500"><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, or request that the Attorney General of the United States act on behalf of the Director.</text> </paragraph><paragraph id="H50BAF56ACE19486BB481C3F3F2F7AF79"><enum>(2)</enum><header>Consultation with attorney general</header><text>The Director shall provide notice to, and consult with, the Attorney General of the United States before taking an action under paragraph (1) of this subsection or under section 1344(a), 1345(d), 1348(c), 1372(e), 1375(a), 1376(d), or 1379D(c), except that, if the Director determines that any delay caused by such prior notice and consultation may adversely affect the safety and soundness responsibilities of the Director under this title, the Director shall notify the Attorney General as soon as reasonably possible after taking such action.</text> </paragraph><paragraph id="H564956DC6A06401EAF4F1764DF96A31"><enum>(3)</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 or director or officer thereof 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><section id="HD28A6D69D0AF4C9083DE26256CD3627E"><enum>1313A.</enum><header>Prudential management and operations standards</header> <subsection id="H56EEC7B33F864DBF857E15EF3B3E7BD4"><enum>(a)</enum><header>Standards</header><text>The Director shall establish standards, by regulation, guideline, or order, for each regulated entity relating to—</text> <paragraph id="H74FF8CC50F064A89936C074F71476C1C"><enum>(1)</enum><text>adequacy of internal controls and information systems, including information security and privacy policies and practices, taking into account the nature and scale of business operations;</text> </paragraph><paragraph id="HF378DBBD1B4E420A91D6FFEB792411AB"><enum>(2)</enum><text>independence and adequacy of internal audit systems;</text> </paragraph><paragraph id="H51DB337C02534AA6BCBABD26A869B9CE"><enum>(3)</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="HE35049EFF7D743F6B8951F9E09C1FF96"><enum>(4)</enum><text>management of interest rate risk exposure;</text> </paragraph><paragraph id="H72CCBE749879412E824FE2E0098E603"><enum>(5)</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="H27779EBFA504473186647CB7C8359176"><enum>(6)</enum><text>adequacy and maintenance of liquidity and reserves;</text> </paragraph><paragraph id="HDDF70E13DC15436E8F4FBC31557B00D0"><enum>(7)</enum><text>management of any asset and investment portfolio;</text> </paragraph><paragraph id="HC557A166396B44A4BEB3EC534F24D221"><enum>(8)</enum><text>investments and acquisitions by a regulated entity, to ensure that they are consistent with the purposes of this Act and the authorizing statutes;</text> </paragraph><paragraph id="H9ED1C130B83E463D90AC79A87C4FF400"><enum>(9)</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;</text> </paragraph><paragraph id="H7F83DE78554B479F80C5FFA1567E069F"><enum>(10)</enum><text>issuance of subordinated debt by that particular regulated entity, as the Director considers necessary;</text> </paragraph><paragraph id="H805CAD680E3B45BFA586DEA252C213D1"><enum>(11)</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; and</text> </paragraph><paragraph id="H474F245B33124F668D95E47627549527"><enum>(12)</enum><text>such other operational and management standards as the Director determines to be appropriate.</text> </paragraph></subsection><subsection id="H12E33AA8951A47599F6DE0B2634FAFA2"><enum>(b)</enum><header>Failure To Meet Standards</header> <paragraph id="HF997414746F44660889C479863007F5D"><enum>(1)</enum><header>Plan requirement</header> <subparagraph id="H0CA2E668223647BAA18D42F2A0DE4FE7"><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="HFE65B9D23C574DF9A04D10EFAC564198"><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="H5418FE7016E04228AA6431678498E5FF"><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="HE292B0237FE8470A006084462976B520"><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="HC86F5BAFAAE84481B06D62E900C2EC9F"><enum>(C)</enum><header>Deadlines for submission and review</header><text>The Director shall by regulation establish deadlines that—</text> <clause id="H6C56D269F10F4BBBBD4E27EDF950965C"><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="HE18B6A6DE5924CDAA95F14238CB7DB68"><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="H5D7940E3B8054D5192C70265A862B6D"><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="H80C55A4B5D964E87A012D08FD7CCBD42"><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="H6510E54A6D504648B26E82C63166597"><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="H0AA2671D3A784FFF9B742BAB3700959B"><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="HA4A8D5E39C9C421E89058F63C9397C24"><enum>(ii)</enum><text>Require the regulated entity—</text> <subclause id="HE6819169BCA84AC9B9EBD984A72E654C"><enum>(I)</enum><text>in the case of an enterprise, to increase its ratio of core capital to assets.</text> </subclause><subclause id="H07DE91729DF44181A9002BEF3E45F2B"><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 <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<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="HD535FCC779B342EEA4D7C5151FFD25F1"><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="H46DBBA6A659F4DB4B196AEE2690000EB"><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="HF3039A549B00451DB5B9F7C259F3300"><enum>(A)</enum><text>the Director determines that the regulated entity fails to meet any standard prescribed under subsection (a);</text> </subparagraph><subparagraph id="H13C8CD081AD64527841FBF97356D90E6"><enum>(B)</enum><text>the regulated entity has not corrected the deficiency; and</text> </subparagraph><subparagraph id="HC23731C4897645B5A5CFE3542181A252"><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="H76EAAC93E71B49DD9298C9192577B3B2"><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> </subsection><subsection id="H20A526D5E56F42568B11682FF8FFC159"><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="HD8EB1E716E594D868BAAD86A95DB24B"><enum>1013.</enum><header>Federal Housing Enterprise Board</header> <subsection id="HE4922AE6CA1444069D9B2858DF6F91F0"><enum>(a)</enum><header>In General</header><text>Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<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 1313A, as added by section 1002 of this title, the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HF3EDCCA748E64DD09B4CC6D9E49DD5CB" style="OLC"> <section id="H41A91496955541EF972DE35C3156ED19"><enum>1313B.</enum><header>Federal Housing Enterprise Board</header> <subsection id="H6683DF480BD54EE792AD56225DAAF4A"><enum>(a)</enum><header>In General</header><text display-inline="yes-display-inline">There is established the Federal Housing Enterprise 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="H7E3B830EAA664F389B25E7BCE3FFB04F"><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="H676C6F3B431A4ED8BDD3BD9ED6CCCE06"><enum>(c)</enum><header>Composition</header><text>The Board shall be comprised of 3 members, of whom—</text> <paragraph id="HA818D92A560442169031BE6B3CEFEBD"><enum>(1)</enum><text>one member shall be the Secretary of the Treasury;</text> </paragraph><paragraph id="H9626D0F68BDD40288710FC1566EE0699"><enum>(2)</enum><text>one member shall be the Secretary of Housing and Urban Development; and</text> </paragraph><paragraph id="H3F43322B8D8E4A6382BDAA86D8D4F4B"><enum>(3)</enum><text>one member shall be the Director, who shall serve as the Chairperson of the Board.</text> </paragraph></subsection><subsection id="HF8C21DC097E4428EA63E72A536DD05AE"><enum>(d)</enum><header>Meetings</header> <paragraph id="HC169BD39C4844985BEAE34F0C89DDBE3"><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="H9E9754317F054480BD799CF561578E00"><enum>(2)</enum><header>Special meetings</header><text>Either the Secretary of the Treasury or the Secretary of Housing and Urban Development may, upon giving written notice to the Director, require a special meeting of the Board.</text> </paragraph></subsection><subsection id="H20CF80A9F2904915A2B5498E2C6FB982"><enum>(e)</enum><header>Testimony</header><text>On an annual basis, the Board shall testify before Congress regarding—</text> <paragraph id="H5E735BE8924441D5B37D9DF4B493CD4"><enum>(1)</enum><text>the safety and soundness of the regulated entities;</text> </paragraph><paragraph id="HDA417BF788BD413787EC736DB3718820"><enum>(2)</enum><text>any material deficiencies in the conduct of the operations of the regulated entities;</text> </paragraph><paragraph id="H623B3DB133044630A6271FE6F2BF73E8"><enum>(3)</enum><text>the overall operational status of the regulated entities;</text> </paragraph><paragraph id="H53D5A62293B64A10ADE95C178C9281FE"><enum>(4)</enum><text>an evaluation of the performance of the regulated entities in carrying out their respective missions;</text> </paragraph><paragraph id="H2D85FA0B1E924449AB1389553F15871C"><enum>(5)</enum><text>operations, resources, and performance of the Agency; and</text> </paragraph><paragraph id="HD4A4D2915BBA4E689CFAED9E9BE8DF59"><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="HC4BAC0ED51A84C219F27C1AF12D3A5C2"><enum>(b)</enum><header>Annual Report of the Director</header><text>Section 1319B(a) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521(a)</external-xref>) is amended—</text> <paragraph id="HB77E1B57C8FC4E4C9E917FD2A8A7D3DA"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end; and</text> </paragraph><paragraph id="H284F4784DF7A4D7DB033D3345BAF4128"><enum>(2)</enum><text>by striking paragraph (4) and inserting the following new paragraphs:</text> <quoted-block id="H8A77DCB7C6284C4A9766647C00B8C4C3" style="OLC"> <paragraph id="H4103B883385C48259E77027CE6001526"><enum>(4)</enum><text>an assessment of the Board or any of its members with respect to—</text> <subparagraph id="H2EFDD090756240D492BF10107486A501"><enum>(A)</enum><text>the safety and soundness of the regulated entities;</text> </subparagraph><subparagraph id="H681937776FA0441CAD8F9147A4945700"><enum>(B)</enum><text>any material deficiencies in the conduct of the operations of the regulated entities;</text> </subparagraph><subparagraph id="HC0031A4246074EDA9F6997EF95A700DC"><enum>(C)</enum><text>the overall operational status of the regulated entities; and</text> </subparagraph><subparagraph id="HCFE94B69A64F44719EF360C705D84C74"><enum>(D)</enum><text>an evaluation of the performance of the regulated entities in carrying out their missions;</text> </subparagraph></paragraph><paragraph id="H5CED166C1C36451DBAF0E3E00566C8F"><enum>(5)</enum><text>operations, resources, and performance of the Agency;</text> </paragraph><paragraph display-inline="no-display-inline" id="HC40A0AA4B14345DFBC7F6B284F234113"><enum>(6)</enum><text display-inline="yes-display-inline">a description of the demographic makeup of the workforce of the Agency; and</text> </paragraph><paragraph id="HBE6C0E9218F04EE78455D7AE21E57097"><enum>(7)</enum><text>such other matters relating to the Agency and its fulfillment of its mission.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HA39ECFF2A8AD461BA879A035648E001D"><enum>1014.</enum><header>Authority to require reports by regulated entities</header><text display-inline="no-display-inline">Section 1314 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>) is amended—</text> <paragraph id="HAA05139C97BB4AD8A090A7C02F150810"><enum>(1)</enum><text>in the section heading, by striking <quote><header-in-text>enterprises</header-in-text></quote> and inserting <quote><header-in-text>regulated entities</header-in-text></quote>;</text> </paragraph><paragraph id="H242089A690AC4C10AFD48823238F9203"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="H7E48ED234A9A47C5B0D359F42EB0FACC"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Special reports and reports of financial condition</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Regular and special reports</header-in-text></quote>;</text> </subparagraph><subparagraph id="H862BFCE4B2614E70A83688923B722100"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="H37CBBCC9083B4EF2A704A168DC9F6FBF"><enum>(i)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph">Financial condition</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">Regular reports</header-in-text></quote>; and</text> </clause><clause id="HD42BE856D0E84BEEBD85A0E16BF52FDB"><enum>(ii)</enum><text>by striking <quote>reports of financial condition and operations</quote> and inserting <quote>regular reports on the condition (including financial condition), management, activities, or operations of the regulated entity, as the Director considers appropriate</quote>; and</text> </clause></subparagraph><subparagraph id="HF35801B01C834051A9C142C7F5AE0073"><enum>(C)</enum><text>in paragraph (2), after <quote>submit special reports</quote> insert <quote>on any of the topics specified in paragraph (1) or such other topics</quote>; and</text> </subparagraph></paragraph><paragraph id="HE6C908790B0B44E2ACF8726CD93F97C"><enum>(3)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="H5066046816C54EA28B7828BA89A4E7D4" style="OLC"> <subsection id="H87FBD69E99B94FED98E5CB55A5FAC603"><enum>(c)</enum><header>Reports of Fraudulent Financial Transactions</header> <paragraph id="H22EE15EFCB7D4E8AAF5EFE91C421C105"><enum>(1)</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 a purchase or sale of any loan or financial instrument. The Director shall require the regulated entities to establish and maintain procedures designed to discover any such transactions.</text> </paragraph><paragraph id="H4C54957332834BD5BCE7410228FB1B6"><enum>(2)</enum><header>Protection from liability for reports</header> <subparagraph id="H4ECA9090801E45999D5BCA9339460039"><enum>(A)</enum><header>In general</header><text>If a regulated entity makes a report pursuant to paragraph (1), or a regulated entity-affiliated party makes, or requires another to make, such a report, and such report is made in a good faith effort to comply with the requirements of paragraph (1), such regulated entity or regulated entity-affiliated party shall not be liable to any person under any law or regulation of the United States, 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 person identified in the report.</text> </subparagraph><subparagraph id="HA682193A13AD4BE59CDF16359E085CAC"><enum>(B)</enum><header>Rule of construction</header><text>Subparagraph (A) shall not be construed as creating—</text> <clause id="H54D697A8C6A04793A9D503B8FA67A136"><enum>(i)</enum><text>any inference that the term <term>person</term>, as used in such subparagraph, may be construed more broadly than its ordinary usage so as to include any government or agency of government; or</text> </clause><clause id="H0EA26C9FE0B049E393F6724EB397CEE2"><enum>(ii)</enum><text>any immunity against, or otherwise affecting, any civil or criminal action brought by any government or agency of government to enforce any constitution, law, or regulation of such government or agency.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H5AECAD0ADD714872BC3941B1A3EBB623"><enum>1015.</enum><header>Disclosure of income and charitable contributions by enterprises</header><text display-inline="no-display-inline">Section 1314 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4514">12 U.S.C. 4514</external-xref>), as amended by the preceding provisions of this title, is further amended by adding at the end the following new subsections:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H3824B917D5A44AB68CB03DAFEA2E26FA" style="OLC"> <subsection id="HA3FFA9E44B8A478987D08EBA711456F5"><enum>(d)</enum><header>Disclosure of Charitable Contributions by Enterprises</header> <paragraph id="HDFB74B91A3AC45C8A0D6B9277EE375E9"><enum>(1)</enum><header>Required disclosure</header><text>The Director shall, by regulation, require each enterprise to submit a report annually, in a format designated by the Director, containing the following information:</text> <subparagraph id="HBEC4AFE7DBD04E45AF85D9AB85B2E1A3"><enum>(A)</enum><header>Total value</header><text>The total value of contributions made by the enterprise to nonprofit organizations during its previous fiscal year.</text> </subparagraph><subparagraph id="H6034D4975BCE4F6587081F50DF1BCDAD"><enum>(B)</enum><header>Substantial contributions</header><text>If the value of contributions made by the enterprise to any nonprofit organization during its previous fiscal year exceeds the designated amount, the name of that organization and the value of contributions.</text> </subparagraph><subparagraph id="H6AEABCD82CF44AA29101447E19AF98C0"><enum>(C)</enum><header>Substantial contributions to insider-affiliated charities</header><text>Identification of each contribution whose value exceeds the designated amount that were made by the enterprise during the enterprise’s previous fiscal year to any nonprofit organization of which a director, officer, or controlling person of the enterprise, or a spouse thereof, was a director or trustee, the name of such nonprofit organization, and the value of the contribution.</text> </subparagraph></paragraph><paragraph id="H20A4BCBD574E48B4B98700055B954ED8"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H6456F99B224B456A9EF514AB00AD4C8F"><enum>(A)</enum><text>the term <term>designated amount</term> means such amount as may be designated by the Director by regulation, consistent with the public interest and the protection of investors for purposes of this subsection; and</text> </subparagraph><subparagraph id="H04E3CBA4DCE84C53A5D0EBFFCDC15066"><enum>(B)</enum><text>the Director may, by such regulations as the Director deems necessary or appropriate in the public interest, define the terms officer and controlling person.</text> </subparagraph></paragraph><paragraph id="H864A844ABB274FE0B607D99D4264912C"><enum>(3)</enum><header>Public availability</header><text>The Director shall make the information submitted pursuant to this subsection publicly available.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HA139214A009246EA8E00D1E9C407DF7"><enum>(e)</enum><header>Disclosure of income</header><text display-inline="yes-display-inline">Each enterprise shall include, in each annual report filed under section 13 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78m">15 U.S.C. 78m</external-xref>), the income reported by the issuer to the Internal Revenue Service for the most recent taxable year. Such income shall—</text> <paragraph id="H7788C7EDDC704D95BFC360035BD60CB"><enum>(1)</enum><text>be presented in a prominent location in each such report and in a manner that permits a ready comparison of such income to income otherwise required to be included in such reports under regulations issued under such section; and</text> </paragraph><paragraph id="H9909774320B6464500BD00D51795C899"><enum>(2)</enum><text>be submitted to the Securities and Exchange Commission in a form and manner suitable for entry into the EDGAR system of such Commission for public availability under such system.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HBA449F7F855944340085454BA8F9E7AC"><enum>1016.</enum><header>Assessments</header><text display-inline="no-display-inline">Section 1316 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4516">12 U.S.C. 4516</external-xref>) is amended—</text> <paragraph id="H4A0D26BCE4DC4CA9A6F0B67F0963AC80"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HCB7077E9B15F43F99C5BB3C66408C20" style="OLC"> <subsection id="H116CCF377B49402DB04FD53290B14EC1"><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 and expenses of the Agency, including—</text> <paragraph id="HF5A01F9782D0482EAB62D20721F9CC40"><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="H6E45B801C47C407598D2B88422CD34C3"><enum>(2)</enum><text>the expenses of obtaining any reviews and credit assessments under section 1319;</text> </paragraph><paragraph id="HA4A47A0F768846F3A9EA8CA40336AA63"><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="H300975D394E84817998F13445BE0D261"><enum>(4)</enum><text>the wind up 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 Reform Act of 2008</short-title>.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HF8D6BD3119184E1CB9CA238E05E7DC8E"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="HCAC52A36D0384CFCAF81B9A776EB5C5F"><enum>(A)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection">Enterprises</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Regulated Entities</header-in-text></quote>;</text> </subparagraph><subparagraph id="H6EF8F10F71424903A0D68100A19BC8FB"><enum>(B)</enum><text>by realigning paragraph (2) two ems from the left margin, so as to align the left margin of such paragraph with the left margins of paragraph (1);</text> </subparagraph><subparagraph id="H8A402654F7DC4149859CB207BEA00400"><enum>(C)</enum><text>in paragraph (1)—</text> <clause id="HAEAE07425EC94EFE8909197F060081F0"><enum>(i)</enum><text>by striking <quote>Each enterprise</quote> and inserting <quote>Each regulated entity</quote>;</text> </clause><clause id="H56841F7FA7234B0AA658462FE36E4E13"><enum>(ii)</enum><text>by striking <quote>each enterprise</quote> and inserting <quote>each regulated entity</quote>; and</text> </clause><clause id="H9437EEB252934860AAA5B35324BBA1B9"><enum>(iii)</enum><text>by striking <quote>both enterprises</quote> and inserting <quote>all of the regulated entities</quote>; and</text> </clause></subparagraph><subparagraph id="H5CC39C9249414D3AAABC8F6473004800"><enum>(D)</enum><text>in paragraph (3)—</text> <clause id="H2B7287E94ED842FC8E58E7F08F55BED5"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>subparagraph (A)</quote> and inserting <quote>clause (i)</quote>;</text> </clause><clause id="HB3A81B48C090405CB44486562DBA00A"><enum>(ii)</enum><text>by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii) and (ii), respectively, and realigning such clauses, as so redesignated, so as to be indented 6 ems from the left margin;</text> </clause><clause id="H86313B5B171A44489ED7B3452D6B12CD"><enum>(iii)</enum><text>by striking the matter that precedes clause (i), as so redesignated, and inserting the following:</text> <quoted-block id="H695C116DF6E943849C9200B8E76248D0" style="OLC"> <paragraph id="HC44122200DE8456D802CCBF90647B16"><enum>(3)</enum><header>Definition of total assets</header><text>For purposes of this section, the term <term>total assets</term> means as follows:</text> <subparagraph id="H03621B511CF04486B1298D32A234AD20"><enum>(A)</enum><header>Enterprises</header><text>With respect to an enterprise, the sum of—</text> </subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="H5ADE068D5EE543DD80BEABAE908D3C"><enum>(iv)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block id="HA385E3207AA34110A49FD39056B121CF" style="OLC"> <subparagraph id="H7E938C8639D84B3994D082562800B4EE"><enum>(B)</enum><header>Federal home loan banks</header><text>With respect to a Federal home loan bank, the total assets of the Bank, as determined by the Director in accordance with generally accepted accounting principles.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </clause></subparagraph></paragraph><paragraph id="H4CA13C36DC4A471FBCDCEC50D8EFFA5"><enum>(3)</enum><text>by striking subsection (c) and inserting the following new subsection:</text> <quoted-block id="H6CC0DDD4C058469A9C102B00BEA34F2D" style="OLC"> <subsection id="H53603A9FDC484B45912F756C0016ED19"><enum>(c)</enum><header>Increased Costs of Regulation</header> <paragraph id="H82EA779C142649A4A5FCAC7EFC009913"><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="HC55FC1733DAF4FD4AAFE3C6E387E6D91"><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="H1436A6DE921F40B394B23C009EA10002"><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="HC5AD0BEAB1C045ABBB35E955007B55FD"><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="H2FBC33F8D0D54C1D8BB7CC1B3BF729BC"><enum>(5)</enum><text>by striking subsections (e) through (g) and inserting the following new subsections:</text> <quoted-block id="HABC96A4B649F43108B049D5B359EBAD1" style="OLC"> <subsection id="H988E3D617F3B4F4ABCB400C9B762161F"><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="H262B1CE7979F4A60B75B367BD818E0BD"><enum>(f)</enum><header>Treatment of Assessments</header> <paragraph id="H2F4C316DA9FC49009E6DD19E47A2FDCA"><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 (<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="H7F717B50E7804B5DAA06A001236A709"><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="HBF923566669D454185306717C80173C3"><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="H47E0F5B6BF124E12A6E8BCEA8CEBBDAC"><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="HE5999FC47A2B4086BB72328725947263"><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 under section 1065 of the <short-title>Federal Housing Finance 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="H71ACD5A970984440005B414E324558AC"><enum>(6)</enum><header>Treasury investments</header> <subparagraph id="HB63B631734D44DC09D8600485DFA462"><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 amount 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="H189B1CDDD93B4BF2AE18127CDE0925E1"><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 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="HB88F0859324348778E007908E7D981E"><enum>(g)</enum><header>Budget and Financial Management</header> <paragraph id="H69E3978AF1764F6485D2F8B7BB730C1"><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="H62B5D113EA854EB9955611883CEBDB49"><enum>(2)</enum><header>Financial statements</header><text>The Agency shall prepare annually a statement of assets and liabilities and surplus or deficit; a statement of income and expenses; and a statement of sources and application of funds.</text> </paragraph><paragraph id="HA4CFED712595466C00C147AB2FA58B95"><enum>(3)</enum><header>Financial management systems</header><text>The Agency shall implement and maintain financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and that uses a general ledger system that accounts for activity at the transaction level.</text> </paragraph><paragraph id="H72EAD612271640CB882F3501388B235C"><enum>(4)</enum><header>Assertion of internal controls</header><text>The Director shall provide to the Comptroller General 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="H25690A6681E2452490CCC2699F35B025"><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 reports, plans, forecasts, 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="HA4FF59DFAD104FA18881C511498F1348"><enum>(h)</enum><header>Audit of Agency</header> <paragraph id="HB63834D9FA784EB3B6198B254911C88F"><enum>(1)</enum><header>In general</header><text>The Comptroller General shall annually audit the financial transactions of the Agency in accordance with the U.S. 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="H236D89E163EB44CFB045DADA026BF61F"><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 id="HF440CF9E8E3F4CCA88E1CA4E42BA78A0"><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 <external-xref legal-doc="usc" parsable-cite="usc/41/5">section 5</external-xref> of title 41, United States Code, 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="H5A289971A6AC454CBC96D7F21E74D45B"><enum>1017.</enum><header>Examiners and accountants</header> <subsection id="HBF21211763814BB6AA013081DED9ADB"><enum>(a)</enum><header>Examinations</header><text>Section 1317 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended—</text> <paragraph id="H2DB4022B3B3C4AE2A0005E0453A8DC2"><enum>(1)</enum><text>in subsection (a), by adding after the period at the end the following: <quote>Each examination under this subsection of a regulated entity shall include a review of the procedures required to be established and maintained by the regulated entity pursuant to section 1314(c) (relating to fraudulent financial transactions) and the report regarding each such examination shall describe any problems with such procedures maintained by the regulated entity.</quote>;</text> </paragraph><paragraph id="HA2CAAB5DDC734855B1DD18167312781"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H72E5E27AD8514DA496BC1995BEA6B278"><enum>(A)</enum><text>by inserting <quote>of a regulated entity</quote> after <quote>under this section</quote>; and</text> </subparagraph><subparagraph id="HDBEAA07E68414361A4C041677F1300D9"><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>; and</text> </subparagraph></paragraph><paragraph id="H94103644CD514B67B7B7C89BCF88DA8F"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="HC1949D65EB0B489FB96DDC66EBF3DD3"><enum>(A)</enum><text>in the second sentence, by inserting <quote>to conduct examinations under this section</quote> before the period; and</text> </subparagraph><subparagraph id="HB225DE676480454495C75F77101200FB"><enum>(B)</enum><text>in the third sentence, by striking <quote>from amounts available in the Federal Housing Enterprises Oversight Fund</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H12C4575003E84363BEF71D5D4EA600F8"><enum>(b)</enum><header>Enhanced Authority To Hire Examiners and Accountants</header><text>Section 1317 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H10327A4B2C3940B09EA56DC07CB0003D" style="OLC"> <subsection id="H2DF475E9E3314D568E688B4F2CC0F135"><enum>(g)</enum><header>Appointment of Accountants, Economists, Specialists, and Examiners</header> <paragraph id="H22C7DF1E4690477C88C4165EE480298E"><enum>(1)</enum><header>Applicability</header><text>This section applies with respect to any position of examiner, accountant, specialist in financial markets, specialist in information technology, and economist at the Agency, with respect to supervision and regulation of the regulated entities, that is in the competitive service.</text> </paragraph><paragraph id="H07308739835A4D2F9CF527494182871D"><enum>(2)</enum><header>Appointment authority</header><text>The Director may appoint candidates to any position described in paragraph (1)—</text> <subparagraph id="HB7876799E2B24EF0AEB75110CABB9DA7"><enum>(A)</enum><text>in accordance with the statutes, rules, and regulations governing appointments in the excepted service; and</text> </subparagraph><subparagraph id="HB5F78F19915D4C1ABE608ED18F2FFB2C"><enum>(B)</enum><text>notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H7A1F03E7216445299B71008B717E6649"><enum>(3)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">The appointment of a candidate to a position under the authority of this subsection shall not be considered to cause such position to be converted from the competitive service to the excepted service.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H56E62BA3FA254054B45102D257C6B210"><enum>(c)</enum><header>Repeal</header><text>Section 20 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1440">12 U.S.C. 1440</external-xref>) is amended—</text> <paragraph id="H8E2A7E5C6CC44C149D1087C36D51BAD1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the section heading and inserting the following: <quote><header-in-text level="section" style="traditional">examinations and gao audits</header-in-text></quote>;</text> </paragraph><paragraph id="H5FD27D49AF7D455DA3E30159034C2EFA"><enum>(2)</enum><text>in the third sentence, by striking <quote>the Board and</quote> each place such term appears; and</text> </paragraph><paragraph id="H9681A1C7B37E4C4CB57259B2DB42F75F"><enum>(3)</enum><text>by striking the first two sentences and inserting the following: <quote>The Federal home loan banks shall be subject to examinations by the Director to the extent provided in section 1317 of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4517).</quote>.</text> </paragraph></subsection></section><section id="HA2B0DA928A974D60A1EC908F529BF0E9"><enum>1018.</enum><header>Prohibition and withholding of executive compensation</header> <subsection id="H13DB4A5BF33D4517A146590229F8554C"><enum>(a)</enum><header>In General</header><text>Section 1318 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4518">12 U.S.C. 4518</external-xref>) is amended—</text> <paragraph id="H919B667FB1324EE1AA14AC9073E35296"><enum>(1)</enum><text>in the section heading, by striking <quote><header-in-text>of excessive</header-in-text></quote> and inserting <quote><header-in-text>and withholding of executive</header-in-text></quote>;</text> </paragraph><paragraph id="H6A55790D600A49CAB944F3ED1AE3139"><enum>(2)</enum><text>by redesignating subsection (b) as subsection (d); and</text> </paragraph><paragraph id="H66617F8D16E143699974E10605E5886B"><enum>(3)</enum><text>by inserting after subsection (a) the following new subsections:</text> <quoted-block id="H06DDCC94CE5D48948989EC3F5589FD40" style="OLC"> <subsection id="H364360B2388F4034BDE509E48E89BE2F"><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 <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<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 <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<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="HF80E4D341C99428A8000FCF578B601E0"><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="H0F2303FB49EB461197EC97DDDB359501"><enum>(b)</enum><header>Conforming Amendments</header> <paragraph id="H0B1DAEA8ECF14292A1303529002F0872"><enum>(1)</enum><header>Fannie mae</header><text>Section 309(d) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<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 act-name="Federal National Mortgage Association Charter Act" id="H7BB8943FC9E341D883CBC12425A1987D" style="OLC"> <paragraph id="H7036EFC5312442A4A177FD483BC73F1E" 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 <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4518).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H903E5F6530EF45EDA68FADF94DCACACD"><enum>(2)</enum><header>Freddie mac</header><text>Section 303(h) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<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 act-name="Federal Home Loan Mortgage Corporation Act" id="H88B4815B585E4FF5920349A0D65D58F9" style="OLC"> <paragraph id="H69E9C7BF22D34BBFA58B7EE48E91F90" 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 <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4518).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H0FD38B84F8CD415C97370012BB2521A"><enum>(3)</enum><header>Federal home loan banks</header><text>Section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Federal Home Loan Bank Act" id="H0F1A90C798E8423883B0B5365BFDC19D" style="OLC"> <subsection id="H68DC56555F3B4D82A85FC4197C47BE61"><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 <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name> (12 U.S.C. 4518).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H06ED7A86B9104541B63ED359DEC684C2"><enum>1019.</enum><header>Reviews of regulated entities</header><text display-inline="no-display-inline">Section 1319 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4519">12 U.S.C. 4519</external-xref>) is amended—</text> <paragraph id="HAD833BFA37F44CBABA14F1C982DE031"><enum>(1)</enum><text>by striking the section designation and heading and inserting the following:</text> <quoted-block id="H5BFA301725C1443ABB19F75943523399" style="OLC"> <section id="H44A41E7A84E849E2AF9DBB88CC0030BA"><enum>1319.</enum><header>Reviews of regulated entities</header> </section><after-quoted-block>;</after-quoted-block></quoted-block> <continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="H70B350D156254F3EB650ABEBD8835D31"><enum>(2)</enum><text>by striking <quote>is a nationally recognized</quote> and all that follows through <quote>1934</quote> and inserting the following: <quote>the Director considers appropriate, including an entity that is registered under section 15 of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78a">15 U.S.C. 78a</external-xref>) as a nationally registered statistical rating organization</quote>.</text> </paragraph></section><section id="H85229754A30B4A04879D11DCCA396775"><enum>1020.</enum><header>Regulations and orders</header><text display-inline="no-display-inline">Section 1319G of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4526">12 U.S.C. 4526</external-xref>) is amended—</text> <paragraph id="HD5347CAA83BE4680B75BE07066714BAA"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HB5FCDBE3BA77442CB4F464865BC9844F" style="OLC"> <subsection id="H22A455C28CE84C75AF357769761D08FA"><enum>(a)</enum><header>Authority</header><text>The Director shall issue any regulations, guidelines, and orders necessary to carry out the duties of the Director under this title and each of the authorizing statutes to ensure that the purposes of this title and such statutes are accomplished.</text> </subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H82E2FC4A1D5B4E6AB5ECE5D760E0CD63"><enum>(2)</enum><text>in subsection (b), by inserting <quote>, this title, or any of the authorizing statutes</quote> after <quote>under this section</quote>; and</text> </paragraph><paragraph id="H1A0D9ED66ADB431A9644F55324900009"><enum>(3)</enum><text>by striking subsection (c).</text> </paragraph></section><section display-inline="no-display-inline" id="HBF906EF2DCEE486DB94324F3885791C1" section-type="subsequent-section"><enum>1021.</enum><header>Non-waiver of privileges</header><text display-inline="no-display-inline">Part 1 of subtitle A of title XIII of the Housing and Community Development Act of 1992 (12 U.S.C. 4511) is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="H28EFE3590C3F4DA6B496943687E268C7" style="OLC"> <section id="HE7B4D6CA2C65478395FD44ACC8E6A29F"><enum>1319H.</enum><header>Privileges not affected by disclosure</header> <subsection id="H415468B8C52741628E78943837D2A24C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The submission by any person of any information to the Agency for any purpose in the course of any supervisory or regulatory process of the Agency shall not be construed as waiving, destroying, or otherwise affecting any privilege such person may claim with respect to such information under Federal or State law as to any person or entity other than the Agency.</text> </subsection><subsection id="HE6D494DB7719457EAD863747FD8B1517"><enum>(b)</enum><header>Rule of construction</header><text>No provision of subsection (a) may be construed as implying or establishing that—</text> <paragraph id="H385B6ED81E69408295918EB76B78ACA8"><enum>(1)</enum><text>any person waives any privilege applicable to information that is submitted or transferred under any circumstance to which subsection (a) does not apply; or</text> </paragraph><paragraph id="HE6EF6059727448B6B850BDA003BC2B7"><enum>(2)</enum><text>any person would waive any privilege applicable to any information by submitting the information to the Agency, but for this subsection.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HEBA923DF228F46B499E323166E0000F6"><enum>1022.</enum><header>Risk-Based capital requirements</header> <subsection id="H7402ADB3876C4E79BBA24F1F8772ADF1"><enum>(a)</enum><header>In General</header><text>Section 1361 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<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 act-name="Housing and Community Development Act of 1992" id="HB5B8D9EB9732435A987013CCD0C44DAF" style="OLC"> <section id="HC888BB9113DC48A5B78F4B79473EFE32"><enum>1361.</enum><header>Risk-Based capital levels for regulated entities</header> <subsection id="H75ABEBF0BD2B41CAA1E7F61C57FEADF0"><enum>(a)</enum><header>In General</header> <paragraph id="H69C2E67232544320B6006BD0B9C629D2"><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="HD9F47004234A4440B10014A6C6B19065"><enum>(2)</enum><header>Federal home loan banks</header><text>The Director shall establish risk-based capital standards under section 6 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> for the Federal home loan banks.</text> </paragraph></subsection><subsection id="H71FE247D6AFA4E1F954B9B8898A14EC9"><enum>(b)</enum><header>Confidentiality of Information</header><text>Any person that receives any book, record, or information from the Director or a regulated entity to enable the risk-based capital requirements established under this section to be applied shall—</text> <paragraph id="H9984C7D3053A447EB0B53B634F82DD86"><enum>(1)</enum><text>maintain the confidentiality of the book, record, or information in a manner that is generally consistent with the level of confidentiality established for the material by the Director or the regulated entity; and</text> </paragraph><paragraph id="H84B065E501834DB789E17147C78BE14D"><enum>(2)</enum><text>be exempt from <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States Code, with respect to the book, record, or information.</text> </paragraph></subsection><subsection id="H9693D6DFD09B4F5395D3A2BBE67C00"><enum>(c)</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="HF025B8DB31044772B0A92E2C72EFFA6E"><enum>(b)</enum><header>Federal Home Loan Banks Risk-Based Capital</header><text>Section 6(a)(3) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C. 1426(a)(3)) is amended—</text> <paragraph id="H9886AE0CC0C14C128688243E48C97532"><enum>(1)</enum><text>by striking subparagraph (A) and inserting the following new subparagraph:</text> <quoted-block id="HF25626FDB0224044BDEC2DBA0035F74B" style="OLC"> <subparagraph id="H81845BBC6F9246948FB192D2F02C5999"><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="HE31D74AE3C6043CA9842FA43DED40009"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>(A)(ii)</quote> and inserting <quote>(A)</quote>.</text> </paragraph></subsection></section><section id="HD000B363E9AA42D6BFE415911D8E5C92"><enum>1023.</enum><header>Minimum and critical capital levels</header> <subsection id="H0986FE07D88F4ED9A03D2565A7020007"><enum>(a)</enum><header>Minimum Capital Level</header><text>Section 1362 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4612">12 U.S.C. 4612</external-xref>) is amended—</text> <paragraph id="HC21FF47F5E044DB9B0813E5C488B96FC"><enum>(1)</enum><text>in subsection (a), by striking <quote><header-in-text level="subsection" style="OLC">In General</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Enterprises</header-in-text></quote>; and</text> </paragraph><paragraph id="H26D5A92756694587B753DFD9C1D018E8"><enum>(2)</enum><text>by striking subsection (b) and inserting the following new subsections:</text> <quoted-block id="H30013E9D87C9414200A2D52CBB661BF4" style="OLC"> <subsection id="HB753F9247A3147829BDEFE254604FFF3"><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 <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(a)(2)</external-xref>).</text> </subsection><subsection id="H4ACD6CA0D0DF46DCA228A55EB99D5277"><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="H12B9B30C48CB442EAE70666978E143CD"><enum>(d)</enum><header>Authority To Require Temporary Increase</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 for such period as the Director may provide if the Director—</text> <paragraph id="HABAC2130963C4B4BB651A4ED5F428320"><enum>(1)</enum><text>makes any determination specified in subparagraphs (A) through (C) of section 1364(c)(1);</text> </paragraph><paragraph id="HB9AE0E2900DA48CB895E25B3F43FDB14"><enum>(2)</enum><text>determines that the regulated entity has violated any of the prudential standards established pursuant to section 1313A and, as a result of such violation, determines that an unsafe and unsound condition exists; or</text> </paragraph><paragraph id="HF0D09F05FAC74BAD89D49BEDBC56A116"><enum>(3)</enum><text>determines that an unsafe and unsound condition exists, except that a temporary increase in minimum capital imposed on a regulated entity pursuant to this paragraph shall not remain in place for a period of more than 6 months unless the Director makes a renewed determination of the existence of an unsafe and unsound condition.</text> </paragraph></subsection><subsection id="HBD6E8460AD5F4ED3BE7B6E3BCA08929D"><enum>(e)</enum><header>Authority To Establish Additional Capital and Reserve Requirements for Particular Programs</header><text>The Director may, at any time by order or regulation, establish such capital or reserve requirements with respect to any program 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="HDD4FB5F642894A728BBAA500B30195C"><enum>(f)</enum><header>Periodic review</header><text display-inline="yes-display-inline">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. The Director shall rescind any temporary minimum capital level increase if the Director determines that the circumstances or facts justifying the temporary increase are no longer present.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H79859B43CBB947F68340E52F867D72BB"><enum>(b)</enum><header>Critical Capital Levels</header> <paragraph id="HE42D3DBBE1F144EF9419CC26ED00F79E"><enum>(1)</enum><header>In general</header><text>Section 1363 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4613">12 U.S.C. 4613</external-xref>) is amended—</text> <subparagraph id="H4E3AF66C425349379678C9F42498D5A8"><enum>(A)</enum><text>by striking <quote>For</quote> and inserting <quote>(a) <header-in-text level="subsection" style="OLC">Enterprises.—For</header-in-text></quote>; and</text> </subparagraph><subparagraph id="H091DCDBF173042D2B3EBE1586D2483F"><enum>(B)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="H6E87C0E69D1E430D001FC40031DD1899" style="OLC"> <subsection id="H35ADC9CA10EC4C86A4F2EEBEADC183C"><enum>(b)</enum><header>Federal Home Loan Banks</header> <paragraph id="H61E8A479842E49D39ED9F0B8369DE576"><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="HBD4C3BDBA3F84E77BC009158A2006944"><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> </subparagraph></paragraph><paragraph id="HABC837AD7B874C34B034A7CF73A1BF7F"><enum>(2)</enum><header>Regulations</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 1065, the Director of the Federal Housing Finance Agency shall issue regulations pursuant to section 1363(b) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as added by paragraph (1) of this subsection) establishing the critical capital level under such section.</text> </paragraph></subsection></section><section id="HB41947FDCF594C98BD5491C1A5156D64"><enum>1024.</enum><header>Review of and authority over enterprise assets and liabilities</header> <subsection id="HB9ABB50A96764D0D85BE275BFF2F6297"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle B of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development 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="H0BB1E5E76CF74C49B85566AF6DAB5284"><enum>(1)</enum><text>by striking the subtitle designation and heading and inserting the following:</text> <quoted-block id="H064D2FAEA8CA4BBABB580037A282CC23" style="OLC"> <subtitle id="H78176F99E63F499F9D49005600D69D64"><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="HE39192B714F94D7796D6793DCB77C298"><enum>(2)</enum><text>by adding at the end the following new section:</text> <quoted-block id="HA7B3973494184E2693AD67C34051E900" style="OLC"> <section id="H4F6C8AF85FA8478BBE16E41447F68D8"><enum>1369E.</enum><header>Reviews of enterprise assets and liabilities</header> <subsection id="H962215B1374E4E9398F40399E86BC4A5"><enum>(a)</enum><header>In General</header><text>The Director shall, by regulation, establish standards by which the portfolio holdings, or rate of growth of the portfolio holdings, of the enterprises will be deemed to be consistent with the mission and the safe and sound operations of the enterprises. In developing such standards, the Director shall consider—</text> <paragraph id="H85E7B9776A244181A244EDF88B813570"><enum>(1)</enum><text>the size or growth of the mortgage market;</text> </paragraph><paragraph id="H84237BA912744AC4B0D8B35EDD83E9CD"><enum>(2)</enum><text>the need for the portfolio in maintaining liquidity or stability of the secondary mortgage market (including the market for the mortgage-backed securities the enterprises issue);</text> </paragraph><paragraph id="HB61993A7D5B44C7AB6D5BEC1EB443C62"><enum>(3)</enum><text>the need for an inventory of mortgages in connection with securitizations;</text> </paragraph><paragraph id="H95D21CF2BF504443B307C1BCE546CF6"><enum>(4)</enum><text>the need for the portfolio to directly support the affordable housing mission of the enterprises;</text> </paragraph><paragraph id="H62DE28E279334395A082037B2D173DDF"><enum>(5)</enum><text>the liquidity needs of the enterprises;</text> </paragraph><paragraph id="H3BCC719C19434656B2E9222652968FE0"><enum>(6)</enum><text display-inline="yes-display-inline">any potential risks posed to the enterprises by the nature of the portfolio holdings; and</text> </paragraph><paragraph id="H6F5D440BA338439BA858B82400BB1FEF"><enum>(7)</enum><text display-inline="yes-display-inline">any additional factors that the Director determines to be necessary to carry out the purpose under the first sentence of this subsection to establish standards for assessing whether the portfolio holdings are consistent with the mission and safe and sound operations of the enterprises.</text> </paragraph></subsection><subsection id="HAB821934AD7E4A3890E7381933792951"><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="H0B861D6DF87341A286C7A9CEF6E2748C"><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 id="HE28B653B3F064A3F854269E1CDDB0127"><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 under section 1065, the Director of the Federal Housing Finance Agency shall issue regulations pursuant to section 1369E(a) of the Housing and Community Development Act of 1992 (as added by subsection (a) of this section) establishing the portfolio holdings standards under such section.</text> </subsection></section><section id="H6E9F1F7B37FC475BAF91442E5DE4C560"><enum>1025.</enum><header>Corporate governance of enterprises</header><text display-inline="no-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting before section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H9DE631072CA644EEA6269D7B3C7C3F1F" style="OLC"> <section id="H46D466A24BBE4A4292B4E48233D68FDE"><enum>1322A.</enum><header>Corporate governance of Enterprises</header> <subsection id="H838E06769EBF41B29DBEC05D7E550277"><enum>(a)</enum><header>Board of Directors</header> <paragraph id="HBC968BF8F609485CBEAE4319BC67B3DD"><enum>(1)</enum><header>Independence</header><text>A majority of seated members of the board of directors of each enterprise shall be independent board members, as defined under rules set forth by the New York Stock Exchange, as such rules may be amended from time to time.</text> </paragraph><paragraph id="HFC5C5064FCF343F48F2E5EB8EB9D6C67"><enum>(2)</enum><header>Frequency of meetings</header><text>To carry out its obligations and duties under applicable laws, rules, regulations, and guidelines, the board of directors of an enterprise shall meet at least eight times a year and not less than once a calendar quarter.</text> </paragraph><paragraph id="H4052E1ED04B14BE2AE18C992E4B01B74"><enum>(3)</enum><header>Non-management board member meetings</header><text>The non-management directors of an enterprise shall meet at regularly scheduled executive sessions without management participation.</text> </paragraph><paragraph id="H8A96F1E9EEB14CAAA378D5F5518940FF"><enum>(4)</enum><header>Quorum; prohibition on proxies</header><text>For the transaction of business, a quorum of the board of directors of an enterprise shall be at least a majority of the seated board of directors and a board member may not vote by proxy.</text> </paragraph><paragraph id="HB3745C3213A847DD002886CE86681EAF"><enum>(5)</enum><header>Information</header><text>The management of an enterprise shall provide a board member of the enterprise with such adequate and appropriate information that a reasonable board member would find important to the fulfillment of his or her fiduciary duties and obligations.</text> </paragraph><paragraph id="HA1F6A287068049E49871A3C4A7E26CBC"><enum>(6)</enum><header>Annual review</header><text>At least annually, the board of directors of each enterprise shall review, with appropriate professional assistance, the requirements of laws, rules, regulations, and guidelines that are applicable to its activities and duties.</text> </paragraph></subsection><subsection id="H9183B112012945F69792CFE678E5A7C9"><enum>(b)</enum><header>Committees of Boards of Directors</header> <paragraph id="HDF0B1D81DFFF427F9B5300593E0084FD"><enum>(1)</enum><header>Frequency of meetings</header><text>Any committee of the board of directors of an enterprise shall meet with sufficient frequency to carry out its obligations and duties under applicable laws, rules, regulations, and guidelines.</text> </paragraph><paragraph id="H9E0CA4FF48B1426BB8F4DC5C2900E200"><enum>(2)</enum><header>Required committees</header><text>Each enterprise shall provide for the establishment, however styled, of the following committees of the board of directors:</text> <subparagraph id="HCA834C095924485D89503FF1117CD500"><enum>(A)</enum><text>Audit committee.</text> </subparagraph><subparagraph id="H96EED840CFD64DA698424DA77367686C"><enum>(B)</enum><text>Compensation committee.</text> </subparagraph><subparagraph id="HF1BA6B99F3AF4C8D824FCDFB88009CFA"><enum>(C)</enum><text>Nominating/corporate governance committee.</text> </subparagraph><continuation-text continuation-text-level="paragraph">Such committees shall be in compliance with the charter, independence, composition, expertise, duties, responsibilities, and other requirements set forth under section 10A(m) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78j-1">15 U.S.C. 78j–1(m)</external-xref>), with respect to the audit committee, and under rules issued by the New York Stock Exchange, as such rules may be amended from time to time.</continuation-text></paragraph></subsection><subsection id="HF47765A1E69F4CD0000088ACA35B6C52"><enum>(c)</enum><header>Compensation</header> <paragraph id="HF6848B7A4068453DBAF89EBF361898CF"><enum>(1)</enum><header>In general</header><text>The compensation of board members, executive officers, and employees of an enterprise—</text> <subparagraph id="H94DA8722791047058EBB48FB5C7EED00"><enum>(A)</enum><text>shall not be in excess of that which is reasonable and appropriate;</text> </subparagraph><subparagraph id="H9BFDDA19ABE6402B8EFC652D48F4A45B"><enum>(B)</enum><text>shall be commensurate with the duties and responsibilities of such persons;</text> </subparagraph><subparagraph id="H4B79309DE40740C4A0C244009E94EB02"><enum>(C)</enum><text>shall be consistent with the long-term goals of the enterprise;</text> </subparagraph><subparagraph id="HDF130C0ADE4347A38B3EA13245D80A6"><enum>(D)</enum><text>shall not focus solely on earnings performance, but shall take into account risk management, operational stability and legal and regulatory compliance as well; and</text> </subparagraph><subparagraph id="H1DFA9FBA2CD94746B6EAE435E00A7FC"><enum>(E)</enum><text>shall be undertaken in a manner that complies with applicable laws, rules, and regulations.</text> </subparagraph></paragraph><paragraph id="H6FA395EB7566496EA5EFE819F8E360C"><enum>(2)</enum><header>Reimbursement</header><text>If an enterprise is required to prepare an accounting restatement due to the material noncompliance of the enterprise, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the enterprise shall reimburse the enterprise as provided under section 304 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7243). This provision does not otherwise limit the authority of the Agency to employ remedies available to it under its enforcement authorities.</text> </paragraph></subsection><subsection id="HECA2AF1437FA48988BB79E00D7F7DB6C"><enum>(d)</enum><header>Code of Conduct and Ethics</header> <paragraph id="H0B1A1E4778A3444FA439D88414C2E411"><enum>(1)</enum><header>In general</header><text>An enterprise shall establish and administer a written code of conduct and ethics that is reasonably designed to assure the ability of board members, executive officers, and employees of the enterprise to discharge their duties and responsibilities, on behalf of the enterprise, in an objective and impartial manner, and that includes standards required under section 406 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7264">15 U.S.C. 7264</external-xref>) and other applicable laws, rules, and regulations.</text> </paragraph><paragraph id="H87CA29AA078647A495DC4BA7D2A70624"><enum>(2)</enum><header>Review</header><text>Not less than once every three years, an enterprise shall review the adequacy of its code of conduct and ethics for consistency with practices appropriate to the enterprise and make any appropriate revisions to such code.</text> </paragraph></subsection><subsection id="H3DF98CD0240C4C95B36CBB3D6E9F9B75"><enum>(e)</enum><header>Conduct and Responsibilities of Board of Directors</header><text>The board of directors of an enterprise shall be responsible for directing the conduct and affairs of the enterprise in furtherance of the safe and sound operation of the enterprise and shall remain reasonably informed of the condition, activities, and operations of the enterprise. The responsibilities of the board of directors shall include having in place adequate policies and procedures to assure its oversight of, among other matters, the following:</text> <paragraph id="H926891F0FF8E41F69CE21EAD6B680AE"><enum>(1)</enum><text>Corporate strategy, major plans of action, risk policy, programs for legal and regulatory compliance and corporate performance, including prudent plans for growth and allocation of adequate resources to manage operations risk.</text> </paragraph><paragraph id="H50C19D23C2AC4D708B7D1590B06DDFC2"><enum>(2)</enum><text>Hiring and retention of qualified executive officers and succession planning for such executive officers.</text> </paragraph><paragraph id="H1F7B7A6AD1FF447FBEB9E49642D7F8E7"><enum>(3)</enum><text>Compensation programs of the enterprise.</text> </paragraph><paragraph id="H0083FAA061F64BD3881141C604F837D"><enum>(4)</enum><text>Integrity of accounting and financial reporting systems of the enterprise, including independent audits and systems of internal control.</text> </paragraph><paragraph id="H06B1E25EAF4D4F7C93F037DA4B21D1B7"><enum>(5)</enum><text>Process and adequacy of reporting, disclosures, and communications to shareholders, investors, and potential investors.</text> </paragraph><paragraph id="H838128367E4A4DEBB74E72EA57D108A9"><enum>(6)</enum><text>Extensions of credit to board members and executive officers.</text> </paragraph><paragraph id="H0F220E9AC8984EC3A48D7DDFB0FBC860"><enum>(7)</enum><text>Responsiveness of executive officers in providing accurate and timely reports to Federal regulators and in addressing the supervisory concerns of Federal regulators in a timely and appropriate manner.</text> </paragraph></subsection><subsection id="HC0917DBE943149FDB858B75430DBE5AE"><enum>(f)</enum><header>Prohibition of Extensions of Credit</header><text>An enterprise may not directly or indirectly, including through any subsidiary, extend or maintain credit, arrange for the extension of credit, or renew an extension of credit, in the form of a personal loan to or for any board member or executive officer of the enterprise, as provided by section 13(k) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (15 U.S.C. 78m(k)).</text> </subsection><subsection id="H49B27665EDF44BF89B0070F92E556F00"><enum>(g)</enum><header>Certification of Disclosures</header><text>The chief executive officer and the chief financial officer of an enterprise shall review each quarterly report and annual report issued by the enterprise and such reports shall include certifications by such officers as required by section 302 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7241).</text> </subsection><subsection id="HE179FCC9F0624CD4BF10E5EDB72D0045"><enum>(h)</enum><header>Change of Audit Partner</header><text>An enterprise may not accept audit services from an external auditing firm if the lead or coordinating audit partner who has primary responsibility for the external audit of the enterprise, or the external audit partner who has responsibility for reviewing the external audit has performed audit services for the enterprise in each of the five previous fiscal years.</text> </subsection><subsection id="H059FCE8B822040FCB3F2F39EBAE2FCD6"><enum>(i)</enum><header>Compliance Program</header> <paragraph id="H455BB8FF60034273ADF065E7BCADBBEB"><enum>(1)</enum><header>Requirement</header><text>Each enterprise shall establish and maintain a compliance program that is reasonably designed to assure that the enterprise complies with applicable laws, rules, regulations, and internal controls.</text> </paragraph><paragraph id="H5BDEBCFC4DD44ACBBA1FDB7F9763AB37"><enum>(2)</enum><header>Compliance officer</header><text>The compliance program of an enterprise shall be headed by a compliance officer, however styled, who reports directly to the chief executive officer of the enterprise. The compliance officer shall report regularly to the board of directors or an appropriate committee of the board of directors on compliance with and the adequacy of current compliance policies and procedures of the enterprise, and shall recommend any adjustments to such policies and procedures that the compliance officer considers necessary and appropriate.</text> </paragraph></subsection><subsection id="H10FA306D1AD0449E9575E362871C01A9"><enum>(j)</enum><header>Risk Management Program</header> <paragraph id="HBA3CCCDDCF52457FB9E91CA292BFA152"><enum>(1)</enum><header>Requirement</header><text>Each enterprise shall establish and maintain a risk management program that is reasonably designed to manage the risks of the operations of the enterprise.</text> </paragraph><paragraph id="H410B7561336A4E06A0E53F70B136F65D"><enum>(2)</enum><header>Risk management officer</header><text>The risk management program of an enterprise shall be headed by a risk management officer, however styled, who reports directly to the chief executive officer of the enterprise. The risk management officer shall report regularly to the board of directors or an appropriate committee of the board of directors on compliance with and the adequacy of current risk management policies and procedures of the enterprise, and shall recommend any adjustments to such policies and procedures that the risk management officer considers necessary and appropriate.</text> </paragraph></subsection><subsection id="HC11B9BF6CCCD4CADA4F9B7F000FB9000"><enum>(k)</enum><header>Compliance With Other Laws</header> <paragraph id="HD0F0310709BE422C84E1E2C022828CD3"><enum>(1)</enum><header>Deregistered or unregistered common stock</header><text>If an enterprise deregisters or has not registered its common stock with the Securities and Exchange Commission under the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>, the enterprise shall comply or continue to comply with sections 10A(m) and 13(k) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/78j-1">15 U.S.C. 78j–1(m)</external-xref>, 78m(k)) and sections 302, 304, and 406 of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7241">15 U.S.C. 7241</external-xref>, 7243, 7264), subject to such requirements as provided by subsection (l) of this section.</text> </paragraph><paragraph id="HB61189D39988498F85AD50F200DE7177"><enum>(2)</enum><header>Registered common stock</header><text>An enterprise that has its common stock registered with the Securities and Exchange Commission shall maintain such registered status, unless it provides 60 days prior written notice to the Director stating its intent to deregister and its understanding that it will remain subject to the requirements of the sections of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and the Sarbanes-Oxley Act of 2002, subject to such requirements as provided by subsection (l) of this section.</text> </paragraph></subsection><subsection id="H9A783B7B074B4EE68261CEFA808834EA"><enum>(l)</enum><header>Other Matters</header><text>The Director may from time to time establish standards, by regulation, order, or guideline, regarding such other corporate governance matters of the enterprises as the Director considers appropriate.</text> </subsection><subsection id="HF0C04B19C9F24F75BDD4ADCAFFD54BC3"><enum>(m)</enum><header>Modification of Standards</header><text>In connection with standards of Federal or State law (including the Revised Model Corporation Act) or New York Stock Exchange rules that are made applicable to an enterprise by section 1710.10 of the Director’s rules (12 C.F.R. 1710.10) and by subsections (a), (b), (g), (i), (j), and (k) of this section, the Director, in the Director’s sole discretion, may modify the standards contained in this section or in part 1710 of the Director’s rules (12 C.F.R. Part 1710) in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code, and upon written notice to the enterprise.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8E466CA50645479381493F5C00AF24BE"><enum>1026.</enum><header>Required registration under <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name></header><text display-inline="no-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by adding after section 1322A, as added by the preceding provisions of this title, the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H2CDF18049B3445C4A6A26572E908C290" style="OLC"> <section id="HE6FAE52DCA634E88A63DF1B6B0FD8FCF"><enum>1322B.</enum><header>Required registration under <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name></header> <subsection id="H7E5736657EAE48F688682EC4567D87A4"><enum>(a)</enum><header>In General</header><text>Each regulated entity shall register at least one class of the capital stock of such regulated entity, and maintain such registration with the Securities and Exchange Commission, under the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text> </subsection><subsection id="HFED668765B0D46EEB4A4F6D93631495D"><enum>(b)</enum><header>Enterprises</header><text>Each enterprise shall comply with sections 14 and 16 of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="HB4B470BE3DDD4BC2A8FE002D4527A782"><enum>1027.</enum><header>Liaison with Financial Institutions Examination Council</header><text display-inline="no-display-inline">Section 1007 of the Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3306">12 U.S.C. 3306</external-xref>) is amended—</text> <paragraph id="HA256132EF6FF46E2A541D561FEC1D570"><enum>(1)</enum><text>in the section heading, by inserting after “<header-in-text level="section" style="traditional">state</header-in-text>” the following: “<header-in-text level="section" style="traditional">and Federal Housing Finance Agency</header-in-text>”; and</text> </paragraph><paragraph id="H14D430D1257A457DBA2022F7C9DDD90"><enum>(2)</enum><text>by inserting after “financial institutions” the following: “, and one representative of the Federal Housing Finance Agency,”.</text> </paragraph></section><section id="H7CCF8FA13E9C4AF3AAF8C9ADA36E5B3F"><enum>1028.</enum><header>Guarantee fee study</header> <subsection id="HFBB18A2DEA604FA6003B90E6483D1586"><enum>(a)</enum><header>In General</header><text>The Director of the Federal Housing Finance Agency, in consultation with the heads of the federal banking agencies, shall, not later than 18 months after the date of the enactment of this Act, submit to the Congress a study concerning the pricing, transparency and reporting of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal home loan banks with regard to guarantee fees and concerning analogous practices, transparency and reporting requirements (including advances pricing practices by the Federal Home Loan Banks) of other participants in the business of mortgage purchases and securitization.</text> </subsection><subsection id="H16055834106A4328B45FD4A18EBE0491"><enum>(b)</enum><header>Factors</header><text>The study required by this section shall examine various factors such as credit risk, counterparty risk considerations, economic value considerations, and volume considerations used by the regulated entities (as such term is defined in section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>) included in the study in setting the amount of fees they charge.</text> </subsection><subsection id="HA075E5CF9DE34E4395C2CDEB1FC737BC"><enum>(c)</enum><header>Contents of Report</header><text>The report required under subsection (a) shall identify and analyze—</text> <paragraph id="HCCD2049E2C724B1DA994A165C000C269"><enum>(1)</enum><text>the factors used by each enterprise (as such term is defined in section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>) in determining the amount of the guarantee fees it charges;</text> </paragraph><paragraph id="H8A2121FAE8F5442B81DABE01E93F68D4"><enum>(2)</enum><text>the total revenue the enterprises earn from guarantee fees;</text> </paragraph><paragraph id="HB2901E1E616F4E5EA6974531BDD0A7A0"><enum>(3)</enum><text>the total costs incurred by the enterprises for providing guarantees;</text> </paragraph><paragraph id="H26B3CA3A6E334358B680DBF3ED92DB3E"><enum>(4)</enum><text>the average guarantee fee charged by the enterprises;</text> </paragraph><paragraph id="HD2E4965D02B04FD6B5715F0998250755"><enum>(5)</enum><text>an analysis of how and why the guarantee fees charged differ from such fees charged during the previous year;</text> </paragraph><paragraph id="HC309277AF504492191AC25F7258F83DB"><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="H71C03E463C1841E2A9579BF972AFB907"><enum>(7)</enum><text>other relevant information on guarantee fees with other participants in the mortgage and securitization business.</text> </paragraph></subsection><subsection id="HEC1352D980F14B2A976565B461DA249C"><enum>(d)</enum><header>Protection of Information</header><text>Nothing in this section may be construed to require or authorize the Director of the Federal Housing Finance Agency, in connection with the study mandated by this section, to disclose information of the enterprises or other organization that is confidential or proprietary.</text> </subsection><subsection id="H754BD01D775F4569B959DE15C8AB83B1"><enum>(e)</enum><header>Effective Date</header><text>This section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section id="H965A8BBAE28D442FAFD833B778C513FC"><enum>1029.</enum><header>Conforming amendments</header> <subsection id="H9205684F5BBD4E4AAE74E7D2C9E13000"><enum>(a)</enum><header>1992 Act</header><text>Part 1 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4511">12 U.S.C. 4511 et seq.</external-xref>), as amended by the preceding provisions of this title, is further amended—</text> <paragraph id="H844C4E80B706432BBF34A1DA64AB8519"><enum>(1)</enum><text>by striking <quote>an enterprise</quote> each place such term appears in such part (except in sections 1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), and 1316(b)(3)) and inserting <quote>a regulated entity</quote>;</text> </paragraph><paragraph id="H833953607FEB45A48C6688222463BE54"><enum>(2)</enum><text>by striking <quote>the enterprise</quote> each place such term appears in such part (except in section 1316(b)(3)) and inserting <quote>the regulated entity</quote>;</text> </paragraph><paragraph id="H2C5B9DBD89BF48EDBEC64C793EABFC7E"><enum>(3)</enum><text>by striking <quote>the enterprises</quote> each place such term appears in such part (except in sections 1312(c)(2), and 1312(e)(2)) and inserting <quote>the regulated entities</quote>;</text> </paragraph><paragraph id="H0F7D60444CE4457FABD329B71F38CBB2"><enum>(4)</enum><text>by striking <quote>each enterprise</quote> each place such term appears in such part and inserting <quote>each regulated entity</quote>;</text> </paragraph><paragraph id="H0094A9AEB69D47B084DBE38CA62B898E"><enum>(5)</enum><text>by striking <quote>Office</quote> each place such term appears in such part (except in sections 1311(b)(2), 1312(b)(5), 1315(b), and 1316(a)(4), (g), and (h), 1317(c), and 1319A(a)) and inserting <quote>Agency</quote>;</text> </paragraph><paragraph id="H3958667514E14ACC9BD0A72DCF6EFCE2"><enum>(6)</enum><text>in section 1315 (<external-xref legal-doc="usc" parsable-cite="usc/12/4515">12 U.S.C. 4515</external-xref>)—</text> <subparagraph id="H6BC885D79F6246C181896C469BC86F07"><enum>(A)</enum><text>in subsection (a)—</text> <clause id="HF7074C4FE91049BD9FB3F257D9658F80"><enum>(i)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Office personnel</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote>; and</text> </clause><clause id="HAFB8950992954C019854739CAE2F46F1"><enum>(ii)</enum><text>by striking <quote>The</quote> and inserting <quote>Subject to title III of the <short-title>Federal Housing Finance Reform Act of 2008</short-title>, the</quote>;</text> </clause></subparagraph><subparagraph id="H5C198A0F998A4C91B59579B9373EFB31"><enum>(B)</enum><text>by striking subsections (d) and (f); and</text> </subparagraph><subparagraph id="H6FEB26398C4B4D5FBE8F476DC94B66C1"><enum>(C)</enum><text>by redesignating subsection (e) as subsection (d);</text> </subparagraph></paragraph><paragraph id="H30E7688C6B3F45418120E8C9FDE51F08"><enum>(7)</enum><text>in section 1319B (<external-xref legal-doc="usc" parsable-cite="usc/12/4521">12 U.S.C. 4521</external-xref>), by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Committee on Financial Services</quote>; and</text> </paragraph><paragraph id="HBC5985A1EBDE4FF99693662B70CD27C4"><enum>(8)</enum><text>in section 1319F (<external-xref legal-doc="usc" parsable-cite="usc/12/4525">12 U.S.C. 4525</external-xref>), striking all that follows <quote>United States Code</quote> and inserting <quote>, the Agency shall be considered an agency responsible for the regulation or supervision of financial institutions.</quote>.</text> </paragraph></subsection><subsection id="H3FE7A2D48F874A8EBF25403945C93700"><enum>(b)</enum><header>Amendments to Fannie Mae Charter Act</header><text>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 et seq.</external-xref>) is amended—</text> <paragraph id="H2B0D456A377C4035B9C6D89520700E4"><enum>(1)</enum><text>by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> each place such term appears, and inserting <quote>Director of the Federal Housing Finance Agency</quote>, in—</text> <subparagraph id="H97AF2A2A575F4956ABD317C032B3200"><enum>(A)</enum><text>section 303(c)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1718">12 U.S.C. 1718(c)(2)</external-xref>);</text> </subparagraph><subparagraph id="H1C28C14C8C8F44DF9CF6C101CBDF5ED7"><enum>(B)</enum><text>section 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</text> </subparagraph><subparagraph id="H175E6DFBA3D84217B44D5D207EF96DE7"><enum>(C)</enum><text>section 309(k)(1); and</text> </subparagraph></paragraph><paragraph id="H92968E39D2424EA5B66112A0C46888C6"><enum>(2)</enum><text>in section 309—</text> <subparagraph id="H9123176179B9403C8300F385CE3B6900"><enum>(A)</enum><text>in subsections (d)(3)(A) and (n)(1), by striking <quote>Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Financial Services</quote>; and</text> </subparagraph><subparagraph id="H638D762AF8B84871B0B0688F4DEB2BFC"><enum>(B)</enum><text>in subsection (m)—</text> <clause id="H9EE16604ADDC4B4998FAF36596802491"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>;</text> </clause><clause id="H09332983342840F98F714FC189F380DB"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; and</text> </clause><clause id="H0A742C5CA2124453949007EBB9056CE1"><enum>(iii)</enum><text>by striking <quote>Secretary</quote> each other place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>; and</text> </clause></subparagraph><subparagraph id="H3ABD4D178A264164937D007F87BABC7B"><enum>(C)</enum><text>in subsection (n), by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H247C02F9C0E94909B440E4FBCBA1EA9E"><enum>(c)</enum><header>Amendments to Freddie Mac Act</header><text>The <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> is amended—</text> <paragraph id="HF14A10917BC949AFBA03146733BE7144"><enum>(1)</enum><text>by striking <quote>Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development</quote> each place such term appears, and inserting <quote>Director of the Federal Housing Finance Agency</quote>, in—</text> <subparagraph id="HE41CE24EDE014BCFBF9C462633F746C1"><enum>(A)</enum><text>section 303(b)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(b)(2)</external-xref>);</text> </subparagraph><subparagraph id="HD6B6C71D4A904E4FAFBE1700A7258259"><enum>(B)</enum><text>section 303(h)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(2)</external-xref>); and</text> </subparagraph><subparagraph id="H53BAD76C3DF9455F8B9C3E23008BA2D6"><enum>(C)</enum><text>section 307(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(c)(1)</external-xref>);</text> </subparagraph></paragraph><paragraph id="H2BC0248AB5594EBCBA237846A893E350"><enum>(2)</enum><text>in sections 303(h)(1) and 307(f)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/1452">12 U.S.C. 1452(h)(1)</external-xref>, 1456(f)(1)), by striking <quote>Banking, Finance and Urban Affairs</quote> each place such term appears and inserting <quote>Financial Services</quote>;</text> </paragraph><paragraph id="H5D6CD4FB2E7247ABB098009B61E03780"><enum>(3)</enum><text>in section 306(i) (<external-xref legal-doc="usc" parsable-cite="usc/12/1455">12 U.S.C. 1455(i)</external-xref>)—</text> <subparagraph id="H09572AB127D74FDF9DF8EF7E474C1C"><enum>(A)</enum><text>by striking <quote>1316(c)</quote> and inserting <quote>306(c)</quote>; and</text> </subparagraph><subparagraph id="H7C09BC47EA7E4C6999F3F6CE325DFC16"><enum>(B)</enum><text>by striking <quote>section 106</quote> and inserting <quote>section 1316</quote>; and</text> </subparagraph></paragraph><paragraph id="HB6489D2D3D314DBB825F7E06E8BEBB3B"><enum>(4)</enum><text>in section 307 (12 U.S.C. 1456)—</text> <subparagraph id="HE20CDE783DC64FA48968E9134FD72A7"><enum>(A)</enum><text>in subsection (e)—</text> <clause id="H4964BC97F11E495897F20080BB1DFF00"><enum>(i)</enum><text>in paragraph (1), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>;</text> </clause><clause id="H8940E2D96DE741379B43E1857300F1E0"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>Secretary</quote> the second place such term appears and inserting <quote>Director</quote>; and</text> </clause><clause id="H77598D9A7BE340CA9978C9A544CC53BC"><enum>(iii)</enum><text>by striking <quote>Secretary</quote> each other place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>; and</text> </clause></subparagraph><subparagraph id="H1D50620C111E4BE0B15599401E786FFA"><enum>(B)</enum><text>in subsection (f), by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Federal Housing Finance Agency</quote>.</text> </subparagraph></paragraph></subsection></section></chapter><chapter id="H8E87C402540F4517A59DD9F7564C205"><enum>2</enum><header>Improvement of Mission Supervision</header> <section id="HDBF1A14AC6554CACA25628B7F1E114BA"><enum>1031.</enum><header>Transfer of product approval and housing goal oversight</header><text display-inline="no-display-inline">Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text> <paragraph id="H9AC101C7FAA14D2C99951F356FB484C"><enum>(1)</enum><text>by striking the designation and heading for the part and inserting the following:</text> <quoted-block id="H1E8F384B45A6478BB0F193D9D4A7CA1" style="OLC"> <part id="H63DBE8DE453B4165A4DEF8C6007F393F"><enum>2</enum><header>PRODUCT APPROVAL BY DIRECTOR, CORPORATE GOVERNANCE, AND ESTABLISHMENT OF HOUSING GOALS</header> </part><after-quoted-block>;</after-quoted-block></quoted-block> <continuation-text continuation-text-level="paragraph">and</continuation-text></paragraph><paragraph id="HC568BDD2ABF441F2A01E18FD6512ACBC"><enum>(2)</enum><text>by striking sections 1321 and 1322.</text> </paragraph></section><section id="HCE08B6459BC842E1A547DAE1FB18AF57"><enum>1032.</enum><header>Review of enterprise products</header> <subsection id="HF95E985A82044D76BC69E6D5A593418"><enum>(a)</enum><header>In General</header><text>Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting before section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H2590996B34F34708887E249DB0D30E0" style="OLC"> <section id="H0CFC6A1234A84E9FA3AE92E2309EDE2F"><enum>1321.</enum><header>Prior approval authority for products of enterprises</header> <subsection id="H405E16F82C9B47ED85000031F2BC5B"><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 display-inline="no-display-inline" id="HB95B88E606064C1A86B914B2DC3E09D2"><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="HD1748DEE73BF4A0A979809962EA4FDE3"><enum>(1)</enum><text>in the case of a product of the Federal National Mortgage Association, the Director determines that the product is authorized under paragraph (2), (3), (4), or (5) of section 302(b) or section 304 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)</external-xref>, 1719);</text> </paragraph><paragraph id="H26C1DB02E42B45FEBA73A9F03CF4BA1E"><enum>(2)</enum><text>in the case of a product of the Federal Home Loan Mortgage Corporation, the Director determines that the product is authorized under paragraph (1), (4), or (5) of section 305(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a));</text> </paragraph><paragraph id="H49AE87BDF3BC4F32BE086C8772DCC1B"><enum>(3)</enum><text>the product is in the public interest;</text> </paragraph><paragraph id="H509F0944B5E740FA82D51DC647A7D010"><enum>(4)</enum><text>the product is consistent with the safety and soundness of the enterprise or the mortgage finance system; and</text> </paragraph><paragraph id="H8FBABB18E97641C68D5B7EFF28C8A837"><enum>(5)</enum><text>the product does not materially impair the efficiency of the mortgage finance system.</text> </paragraph></subsection><subsection id="HA8DBC71775FE49DB9B552C70A45E3B54"><enum>(c)</enum><header>Procedure for approval</header> <paragraph id="H92F194CF7191476E0086003410F676DE"><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="HBA99A28A54E34E3595A10F91EA6F836"><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="H7684B2EE0C66478D87772E63B12B4F00"><enum>(3)</enum><header>Public comment period</header><text display-inline="yes-display-inline">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="H9E6FF8C502E047668DE3DA6E21509871"><enum>(4)</enum><header>Offering of product</header> <subparagraph id="HD3639FC5B8D245F990DE5B17EA308987"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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="HAD591E72DB5248EAAA8775E879EDA34C"><enum>(B)</enum><header>Failure to act</header><text>If the Director fails to act within the 30-day period described in subparagraph (A), the enterprise may offer the product.</text> </subparagraph></paragraph></subsection><subsection id="H817DFA5BDA7B4EDE8B80B81CCE67CA66"><enum>(d)</enum><header>Expedited review</header> <paragraph id="H2051096A029844379404C793923FEA9"><enum>(1)</enum><header>Determination and notice</header><text>If an enterprise determines that any new activity, service, undertaking, or offering is not a product, as defined in subsection (f), the enterprise shall provide written notice to the Director prior to the commencement of such activity, service, undertaking, or offering.</text> </paragraph><paragraph id="HD88B40BF716F4840A551EDED82DC5E3F"><enum>(2)</enum><header>Director determination of applicable procedure</header><text display-inline="yes-display-inline">Immediately upon receipt of any notice pursuant to paragraph (1), the Director shall make a determination under paragraph (3).</text> </paragraph><paragraph id="H2B41592ED45B43DBB5D5CB03003FA4C"><enum>(3)</enum><header>Determination and treatment as product</header><text>If the Director determines that any new activity, service, undertaking, or offering consists of, relates to, or involves a product—</text> <subparagraph id="H74C3245A222E46FE87B8E74D9299AFA5"><enum>(A)</enum><text>the Director shall notify the enterprise of the determination;</text> </subparagraph><subparagraph id="H31B5F6D523D64826B9A2878FD8371BED"><enum>(B)</enum><text>the new activity, service, undertaking, or offering described in the notice under paragraph (1) shall be considered a product for purposes of this section; and</text> </subparagraph><subparagraph id="H537F51A6BF3842D08CE3F766FA44444E"><enum>(C)</enum><text>the enterprise shall withdraw its request or submit a written request for approval of the product pursuant to subsection (c).</text> </subparagraph></paragraph></subsection><subsection id="H1A5E9BDB66C94BF38F3D649F20E32B39"><enum>(e)</enum><header>Conditional Approval</header><text>The Director may conditionally approve the offering of any product by an enterprise, and 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="H411E1C1917E444F6BEFE990345B92053"><enum>(f)</enum><header>Definition of product</header><text>For purposes of this section, the term <quote>product</quote> does not include—</text> <paragraph id="H618839FA5F5D489AA6E0A15C447D8894"><enum>(1)</enum><text>the automated loan underwriting system of an enterprise in existence as of the date of the enactment of the <short-title>Federal Housing Finance Reform Act of 2008</short-title>, including any upgrade to the technology, operating system, or software to operate the underwriting system; or</text> </paragraph><paragraph id="H4180B190734345A4A622377B438C81DB"><enum>(2)</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: <italic>Provided, </italic>That such modifications do not alter the underlying transaction so as to include services or financing, other than residential mortgage financing, or create significant new exposure to risk for the enterprise or the holder of the mortgage.</text> </paragraph></subsection><subsection id="HCBC23403BD6047A9AADF9F987EC2B8D2"><enum>(g)</enum><header>No limitation</header><text>Nothing in this section shall be deemed to restrict—</text> <paragraph id="H509FEB82C8D64410943EA3BC6DBAB8B"><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="H79DF57E747504C38B57422C6E2B17C6"><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 the enterprise.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H4A460E7CA9E643C7A62BBFFDBBE31500"><enum>(b)</enum><header>Conforming Amendments</header> <paragraph id="H7494D73352614508B9206D7FD8333EE8"><enum>(1)</enum><header>Fannie mae</header><text>Section 302(b)(6) of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(6)</external-xref>) is amended—</text> <subparagraph id="H1FF26A80AF7541AB9EA902E0968C00B2"><enum>(A)</enum><text>by striking <quote>implement any new program</quote> and inserting <quote>initially offer any product</quote>;</text> </subparagraph><subparagraph id="HD0FD03E05D474554BC8263E0868E61E3"><enum>(B)</enum><text>by striking <quote>section 1303</quote> and inserting <quote>section 1321(f)</quote>; and</text> </subparagraph><subparagraph id="H4A9B00705BDA4A188F4DB619CA5915FC"><enum>(C)</enum><text>by striking <quote>before obtaining the approval of the Secretary under section 1322</quote> and inserting <quote>except in accordance with section 1321</quote>.</text> </subparagraph></paragraph><paragraph id="H9659AC9738864BEB9638D9E3953858CC"><enum>(2)</enum><header>Freddie mac</header><text>Section 305(c) 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(c)</external-xref>) is amended—</text> <subparagraph id="HB15C5C01086D4E4FB87315F43E9869B0"><enum>(A)</enum><text>by striking <quote>implement any new program</quote> and inserting <quote>initially offer any product</quote>;</text> </subparagraph><subparagraph id="H6629B889A9844DFD9209C018038777A4"><enum>(B)</enum><text>by striking <quote>section 1303</quote> and inserting <quote>section 1321(f)</quote>; and</text> </subparagraph><subparagraph id="H2FF594714B1F4C66B123ECE191289612"><enum>(C)</enum><text>by striking <quote>before obtaining the approval of the Secretary under section 1322</quote> and inserting <quote>except in accordance with section 1321</quote>.</text> </subparagraph></paragraph><paragraph id="HDEE55EB8B0DC4D5DBEF5D9FFB4F6B279"><enum>(3)</enum><header>1992 Act</header><text>Section 1303 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>), as amended by section 1002 of this title, is further amended—</text> <subparagraph id="HCDBF5A8CBB9B41139B7394EFADE0433B"><enum>(A)</enum><text>by striking paragraph (17) (relating to the definition of <quote>new program</quote>); and</text> </subparagraph><subparagraph id="HD0F8008FB2194BE7A5DA11B58CAEB2D"><enum>(B)</enum><text>by redesignating paragraphs (18) through (23) as paragraphs (17) through (22), respectively.</text> </subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="H4F79463F5E324E1EA10300027866AD54" section-type="subsequent-section"><enum>1033.</enum><header>Conforming loan limits</header> <subsection id="H44BFB7BFA07E49BE9061BB01F100CDF1"><enum>(a)</enum><header>Fannie Mae</header> <paragraph id="H21810772A2FA496298151840BC284407"><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—</text> <subparagraph id="H065D7F46CD6345F7B88E9F01371989F0"><enum>(A)</enum><text>in the 4th sentence, by striking <quote>the Resolution Trust Corporation,</quote>; and</text> </subparagraph><subparagraph id="HF48202E89A044E6BBDCC67759D45F4FE"><enum>(B)</enum><text>by striking the 7th and 8th sentences and inserting the following new sentences: <quote>For 2008, 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 with 2009, subject to the limitations in this paragraph. Each adjustment shall be made by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recent 12-month or four-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 Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541</external-xref>)).</quote>.</text> </subparagraph></paragraph><paragraph id="H66D55CEAE36E42D8B6FB8C60180046C7"><enum>(2)</enum><header>High-cost area limit</header><text>Section 302(b)(2) of the Federal National Mortgage Association Charter Act is (<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, except that, subject to the order, if any, issued by the Director of the Federal Housing Finance Agency pursuant to section 1033(d)(3) of the Federal Housing Finance Reform Act of 2008, such increase shall apply only with respect to mortgages on which are based securities issued and sold by the corporation.</quote>.</text> </paragraph></subsection><subsection id="H5BB12CCF95574CE4A930F1420464FDBA"><enum>(b)</enum><header>Freddie Mac</header> <paragraph id="H205C4F30AA3846B780747135166226D"><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—</text> <subparagraph id="H0CA37607C2104E81AF00E81B1BE680B1"><enum>(A)</enum><text>in the 3rd sentence, by striking <quote>the Resolution Trust Corporation,</quote>; and</text> </subparagraph><subparagraph id="H0B4F744B2D41423790BBB34F9C63F41C"><enum>(B)</enum><text>by striking the 6th and 7th sentences and inserting the following new sentences: <quote>For 2008, 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 with 2009, subject to the limitations in this paragraph. Each adjustment shall be made by adding to or subtracting from each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase or decrease, during the most recent 12-month or four-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 Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541</external-xref>)).</quote></text> </subparagraph></paragraph><paragraph id="H366777C1B6EF45BEB3477BF98300A3AC"><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, except that, subject to the order, if any, issued by the Director of the Federal Housing Finance Agency pursuant to section 1033(d)(3) of the Federal Housing Finance Reform Act of 2008, such increase shall apply only with respect to mortgages on which are based securities issued and sold by the Corporation.</quote>.</text> </paragraph></subsection><subsection id="HC67E07A1850944ACB664944CDE331297"><enum>(c)</enum><header>Housing Price Index</header><text>Subpart A of part 2 of subtitle A of title XIII of the Housing and Community Development Act of 1992 (as amended by the preceding provisions of this title) is amended by inserting after section 1321 (as added by section 1032 of this title) the following new section:</text> <quoted-block id="HA95A633102554ABB988CD1B98F748FB7" style="OLC"> <section id="H329AF8D40E544B30A38B3EA3108922FE"><enum>1322.</enum><header>Housing price index</header> <subsection id="H2377ED85A96F42769B41AA81AF17EBF9"><enum>(a)</enum><header>In general</header><text>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 under section 1065 of the Federal Housing Finance 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> </subsection><subsection id="H10AD2AB40E26456E006E545712D8AC5D"><enum>(b)</enum><header>GAO Audit</header> <paragraph id="H0D43589BFBC74313B04873D0CE4EDB57"><enum>(1)</enum><header>In general</header><text>At such times as are required under paragraph (2), the Comptroller General of the United States shall conduct an audit of the methodology established by the Director under subsection (a) to determine whether the methodology established is an accurate and appropriate means of measuring changes to the national average 1-family house price.</text> </paragraph><paragraph id="H300A934DD36E44E4A03658E88E50002B"><enum>(2)</enum><header>Timing</header><text>An audit referred to in paragraph (1) shall be conducted and completed not later than the expiration of the 180-day period that begins upon each of the following dates:</text> <subparagraph id="HA77ACE0D28F544B3BB541EA274605CB7"><enum>(A)</enum><header>Establishment</header><text>The date upon which such methodology is initially established under subsection (a) in final form by the Director.</text> </subparagraph><subparagraph id="HF7AA0CCBD42E44E7B0A93C51C993F078"><enum>(B)</enum><header>Modification or amendment</header><text>Each date upon which any modification or amendment to such methodology is adopted in final form by the Director.</text> </subparagraph></paragraph><paragraph id="H03077EC039F845148732E2BD2383D9C0"><enum>(3)</enum><header>Report</header><text>Within 30 days of the completion of any audit conducted under this subsection, the Comptroller General shall submit a report detailing the results and conclusions of the audit to the Director, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC08931579B274EF6A4E6D4E9B4AC08FB"><enum>(d)</enum><header>Conditions on Conforming Loan Limit for High-Cost Areas</header> <paragraph id="H161414E70AE7468E00E109007E07E0CF"><enum>(1)</enum><header>Study</header><text>The Director of the Federal Housing Finance Agency shall conduct a study under this subsection during the six-month period beginning on the effective date under section 1065 of this title.</text> </paragraph><paragraph id="H9B4F1F6B47D84513BFB6B9DBF85EF86"><enum>(2)</enum><header>Issues</header><text>The study under this subsection shall determine—</text> <subparagraph id="H3AAAFE666318462E908E61E82021CE40"><enum>(A)</enum><text>the effect that restricting the conforming loan limits for high-cost areas only to mortgages on which are based securities issued and sold by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (as provided in the last sentence of section 302(b)(2) of the Federal National Mortgage Association Charter Act and the last sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, pursuant to the amendments made by subsections (a)(2) and (b)(2) of this section) would have on the cost to borrowers for mortgages on housing in such high-cost areas;</text> </subparagraph><subparagraph id="H782D6AA7D3484582BE7D153D23F8C3F2"><enum>(B)</enum><text>the effects that such restrictions would have on the availability of mortgages for housing in such high-cost areas; and</text> </subparagraph><subparagraph id="H7B97D40D98D14604AC4DEF2F628F0067"><enum>(C)</enum><text>the extent to which the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation will be able to issue and sell securities based on mortgages for housing located in such high-cost areas.</text> </subparagraph></paragraph><paragraph id="H4094EA215D50499884612669A034E580"><enum>(3)</enum><header>Determination</header> <subparagraph id="H61E774CF6890475E81A3007D6D00D8F9"><enum>(A)</enum><header>In general</header><text>Not later than the expiration of the six-month period specified in paragraph (1), the Director of the Federal Housing Finance Agency shall make a determination, based on the results of the study under this subsection, of whether the restriction of conforming loan limits for high-cost areas only to mortgages on which are based securities issued and sold by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (as provided in the amendments made by subsections (a)(2) and (b)(2) of this section) will result in an increase in the cost to borrowers for mortgages on housing in such high-cost areas.</text> </subparagraph><subparagraph id="H353359194ECC48DBA644E6EF8DF601B6"><enum>(B)</enum><header>Order</header><text>If such determination is that costs to borrowers on housing in such high-cost areas will be increased by such restrictions, the Director may issue an order terminating such restrictions, in whole or in part.</text> </subparagraph></paragraph><paragraph id="H06C5A63BEB8649EBB78B41B4289FE5BD"><enum>(4)</enum><header>Publication</header><text>Not later than the expiration of the six-month period specified in paragraph (1), the Director of the Federal Housing Finance Agency shall cause to be published in the Federal Register—</text> <subparagraph id="H8F3B532CF8404B33B7EEC61DC91514FF"><enum>(A)</enum><text>a report that—</text> <clause id="HB6D7113182354350A384956BBA2A8D5"><enum>(i)</enum><text>describes the study under this subsection; and</text> </clause><clause id="H1993733AF7AD4D848C7F1FFB7D38AF"><enum>(ii)</enum><text>sets forth the conclusions of the study regarding the issues to be determined under paragraph (2);</text> </clause></subparagraph><subparagraph id="H68690F6D99F64FADA2B900A81CA29E53"><enum>(B)</enum><text>notice of the determination of the Director under paragraph (3); and</text> </subparagraph><subparagraph id="H89CF3124A08D466AB2E5898D6AAAD2F"><enum>(C)</enum><text>the order of the Director under paragraph (3).</text> </subparagraph></paragraph><paragraph id="H4E47C18979C44E87A0C36636679611DB"><enum>(5)</enum><header>Definition</header><text>For purposes of this subsection, the term <quote>conforming loan limits for high-cost areas</quote> means the dollar amount limitations applicable under the section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (as amended by subsections (a) and (b) of this section) for areas described in the last sentence of such sections (as so amended).</text> </paragraph></subsection></section><section id="H214702D9AF3E499E9C5E03BF2657B6BE"><enum>1034.</enum><header>Annual housing report regarding regulated entities</header> <subsection id="HECCD5F3E5CC94715A28E5E0634B06697"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking section 1324 (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544</external-xref>) and inserting the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H28F03FB64AD943B0B45F29EF18602976" style="OLC"> <section id="H9BDB0FF86B534444921F282445F1C6CC"><enum>1324.</enum><header>Annual Housing report regarding regulated entities</header> <subsection id="H198898FA62494E949600A472836B8F3B"><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>, section 307(f) of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, and section 10(j)(11) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C. 1430(j)(11)), the Director shall submit a report, not later than October 30 of each year, to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, on the activities of each regulated entity.</text> </subsection><subsection id="H8B6EE456822840BB8F86C7E535CDEC38"><enum>(b)</enum><header>Contents</header><text>The report shall—</text> <paragraph id="HD194A284083D45478E1F03998572CFA2"><enum>(1)</enum><text>discuss the extent to which—</text> <subparagraph id="H9A968C1A415346D382E2BEB2DF2D27D7"><enum>(A)</enum><text>each enterprise is achieving the annual housing goals established under subpart B of this part;</text> </subparagraph><subparagraph id="H7C0557590DF84B2985238D4EEE58F655"><enum>(B)</enum><text>each Federal home loan bank is complying with section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>; and</text> </subparagraph><subparagraph id="H465E9A65C9444522BFCE3C938900B3CA"><enum>(C)</enum><text>each regulated entity is achieving the purposes of the regulated entity established by law;</text> </subparagraph></paragraph><paragraph id="H4950C01049104D71AA4839F4E9200086"><enum>(2)</enum><text>aggregate and analyze relevant data on income to assess the compliance by each enterprise with the housing goals established under subpart B;</text> </paragraph><paragraph id="H568A49611EA54B6DB79E8D4CA75B23A1"><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="H0A474B2710824C67BDA3C82FA7E92872"><enum>(4)</enum><text>examine actions that—</text> <subparagraph id="HFB479C358EE441B8B48174B5B92B86FC"><enum>(A)</enum><text>each enterprise has undertaken or could undertake to promote and expand the annual goals established under subpart B and the purposes of the enterprise established by law; and</text> </subparagraph><subparagraph id="H92771FFEA98847FF9665768500E68DC8"><enum>(B)</enum><text>each Federal home loan bank has taken or could undertake to promote and expand the community investment program and affordable housing program of the bank established under subsections (i) and (j) of section 10 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text> </subparagraph></paragraph><paragraph id="HD00DA09767FC4BCBA3AC8400008D1432"><enum>(5)</enum><text>examine the primary and secondary multifamily housing mortgage markets and describe—</text> <subparagraph id="H2FC5550A1BBB4DE7A4D783802EC768AC"><enum>(A)</enum><text>the availability and liquidity of mortgage credit;</text> </subparagraph><subparagraph id="HD48A122807304568979C68F3411CE79C"><enum>(B)</enum><text>the status of efforts to provide standard credit terms and underwriting guidelines for multifamily housing and to securitize such mortgage products; and</text> </subparagraph><subparagraph id="H4E09470FEBA14F369663001DE21FB7BE"><enum>(C)</enum><text>any factors inhibiting such standardization and securitization;</text> </subparagraph></paragraph><paragraph id="H9EF850983A624E7BB7753E8257F3F4C4"><enum>(6)</enum><text>examine actions each regulated entity has undertaken and could undertake to promote and expand opportunities for first-time homebuyers, including the use of alternative credit scoring;</text> </paragraph><paragraph id="HA1215D60BC204B8700001E25A0808145"><enum>(7)</enum><text>describe any actions taken under section 1325(5) with respect to originators found to violate fair lending procedures;</text> </paragraph><paragraph id="HDBF0358513134B96BFA239112FC14429"><enum>(8)</enum><text>discuss and analyze existing conditions and trends, including conditions and trends relating to pricing, in the housing markets and mortgage markets; and</text> </paragraph><paragraph id="H71D4DD82FF5B4114AF2F73DC54E934D"><enum>(9)</enum><text>identify the extent to which each enterprise is involved in mortgage purchases and secondary market activities involving subprime loans (as identified in accordance with the regulations issued pursuant to section 1034(b) of the <short-title>Federal Housing Finance Reform Act of 2008</short-title>) and compare the characteristics of subprime loans purchased and securitized by the enterprises to other loans purchased and securitized by the enterprises.</text> </paragraph></subsection><subsection id="H8154C15154B9454BA1D1EC54C6DCF700"><enum>(c)</enum><header>Data Collection and Reporting</header> <paragraph id="H035D7FA272014E30A46D08E5208FDE9"><enum>(1)</enum><header>In general</header><text>To assist the Director in analyzing the matters described in subsection (b) and establishing the methodology described in section 1322, the Director shall conduct, on a monthly basis, a survey of mortgage markets in accordance with this subsection.</text> </paragraph><paragraph id="HEF06C8880BC04809B936582BADB67F4F"><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="H3A2DA06F1B5743C58038A24FE58595FB"><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="H4148A6FEA8AF4F9CADF7E83612332569"><enum>(i)</enum><text>the price of the house that secures the mortgage;</text> </clause><clause id="H18AA16A5DB4940D78344A2A100DC19B7"><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="H7871A65AFEA144C1B43C4238D8531F15"><enum>(iii)</enum><text>the terms of the mortgage;</text> </clause><clause id="H2043431E79304D7E813817D9D5727C0"><enum>(iv)</enum><text>the creditworthiness of the borrower or borrowers; and</text> </clause><clause id="HF071CC8C95194116834C235E7E8900DB"><enum>(v)</enum><text>whether the mortgage, in the case of a conforming mortgage, was purchased by an enterprise; and</text> </clause></subparagraph><subparagraph id="HA5E2F09A21434976A1D5A6A4E92F3E11"><enum>(B)</enum><text>such other matters as the Director determines to be appropriate.</text> </subparagraph></paragraph><paragraph id="H731D87D3109248F6886BAAABD98EB2E2"><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 is not released in an identifiable form.</text> </paragraph><paragraph id="H0F47DEE311C84223861E2074D31B4336"><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><subsection id="H45448BC8E1DE4C53AB39334669B04166"><enum>(b)</enum><header>Standards for Subprime Loans</header><text>The Director shall, not later than one year after the effective date under section 1065, by regulations issued under section 1316G of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, establish standards by which mortgages purchased and mortgages purchased and securitized shall be characterized as subprime for the purpose of, and only for the purpose of, complying with the reporting requirement under section 1324(b)(9) of such Act.</text> </subsection></section><section display-inline="no-display-inline" id="HD116521D87FE4192B6A7CAA7F0A171FE" section-type="subsequent-section"><enum>1035.</enum><header>Annual reports by regulated entities on affordable housing stock</header><text display-inline="no-display-inline">The Housing and Community Development Act of 1992 is amended by inserting after section 1328 (<external-xref legal-doc="usc" parsable-cite="usc/12/4548">12 U.S.C. 4548</external-xref>) the following new section:</text> <quoted-block display-inline="no-display-inline" id="H2EFABD46698B49368331154EEF62A0D3" style="OLC"> <section id="HA9A19FDEE10344008611DBC957EC269"><enum>1329.</enum><header>Annual reports on affordable housing stock</header> <subsection id="H53C6009C79294C99AF73A6BD3BCF8E7E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The regulated entities shall conduct, or provide for the conducting of, a study on an annual basis to determine the levels of affordable housing inventory, and the changes in such levels, in communities throughout the United States.</text> </subsection><subsection id="H8531F1CB0A9C4C19A92FE41D3020DBF"><enum>(b)</enum><header>Contents</header><text display-inline="yes-display-inline">The annual study under this section shall determine, for the United States, each State, and each community within each State—</text> <paragraph id="H6FB08C2954EB42B8A3AAEDA52CB0C305"><enum>(1)</enum><text>the level of affordable housing inventory, including affordable rental dwelling units and affordable homeownership dwelling units;</text> </paragraph><paragraph id="H6271C458BAA74DDCA097A76FBF7D7EB0"><enum>(2)</enum><text>any changes to the level of such inventory during the 12-month period of the study under this section, including—</text> <subparagraph id="H97511D588AE245108E41E6F289C2D4FF"><enum>(A)</enum><text>any additions to such inventory, disaggregated by the category of such additions (including new construction or housing conversion);</text> </subparagraph><subparagraph id="H6D7112BBE1C643BDBEC9BD76B973497E"><enum>(B)</enum><text>any subtractions from such inventory, disaggregated by the category of such subtractions (including abandonment, demolition, or upgrade to market-rate housing);</text> </subparagraph><subparagraph id="HBA331487C29449DA87763B96BA578167"><enum>(C)</enum><text>the number of new affordable dwelling units placed in service; and</text> </subparagraph><subparagraph id="HA529A8B01D7342A200A64A373D483C6"><enum>(D)</enum><text>the number of affordable housing dwelling units withdrawn from service;</text> </subparagraph></paragraph><paragraph id="H506791CE3FAF4C8BB7E94771A66ED03F"><enum>(3)</enum><text>the types of financing used to build any dwelling units added to such inventory level and the period during which such units are required to remain affordable;</text> </paragraph><paragraph id="H66F86C539E6D4EDEBA001CDF77BCD5BB"><enum>(4)</enum><text display-inline="yes-display-inline">any excess demand for affordable housing, including the number of households on rental housing waiting lists and the tenure of the wait on such lists; and</text> </paragraph><paragraph id="H86D44E9AF4A74A3DA0FBE5ADBDD8C072"><enum>(5)</enum><text>such other information as the Director may require.</text> </paragraph></subsection><subsection id="HB9ED8A45F893423C8311B8CF1786B865"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">For each annual study conducted pursuant to this section, the regulated entities shall submit to the Congress, and make publicly available, a report setting forth the findings of the study.</text> </subsection><subsection id="H7B21F81EF898411691FDFEB884313FDA"><enum>(d)</enum><header>Regulations and timing</header><text>The Director shall, by regulation, establish requirements for the studies and reports under this section, including deadlines for the submission of such annual reports and standards for determining affordable housing.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="H80DCF4B5BB4040518C8EE38900773E6B"><enum>1036.</enum><header>Mortgagor identification requirements for mortgages of regulated entities</header> <subsection id="H0F2C9A9CD49C44C2BF6EACE19CC414C6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart A of part 2 of subtitle A of title XIII of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>), as amended by the preceding provisions of this title, is further amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="H270112FF97F5420882E27BC351894C7F" style="OLC"> <section id="HC2A716E1316A47B2A3F9DB8920379BEC"><enum>1330.</enum><header>Mortgagor identification requirements for mortgages of regulated entities</header> <subsection id="H5513008FBE9D47E29BE0EFB2532DF336"><enum>(a)</enum><header>Limitation</header><text>The Director shall by regulation establish standards, and shall enforce compliance with such standards, that—</text> <paragraph id="HBE7B26B681CB4997AB705025B43E9BC"><enum>(1)</enum><text>prohibit the enterprises from the purchase, service, holding, selling, lending on the security of, or otherwise dealing with any mortgage on a one- to four-family residence that will be used as the principal residence of the mortgagor that does not meet the requirements under subsection (b); and</text> </paragraph><paragraph id="H2A736565CA0A407F005979E72D2340BA"><enum>(2)</enum><text display-inline="yes-display-inline">prohibit the Federal home loan banks from providing any advances to a member for use in financing, and from accepting as collateral for any advance to a member, any mortgage on a one- to four-family residence that will be used as the principal residence of the mortgagor that does not meet the requirements under subsection (b).</text> </paragraph></subsection><subsection id="H5D556C732FAA4BE8AE117CD52B09CA40"><enum>(b)</enum><header>Identification requirements</header><text display-inline="yes-display-inline">The requirements under this subsection with respect to a mortgage are that the mortgagor have, at the time of settlement on the mortgage, a Social Security account number.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HB795BCCACD9448D7AE6CD6D382C4F62"><enum>(b)</enum><header>Fannie Mae</header><text>Section 304 of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1719">12 U.S.C. 1719</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HD0E699C870264F5EBE99F171376BCF1D" style="OLC"> <subsection id="HE3D52A58BB2B43398300925C3CB7E061"><enum>(g)</enum><header>Prohibition regarding mortgagor identification requirement</header><text display-inline="yes-display-inline">Nothing in this Act may be construed to authorize the corporation to purchase, service, hold, sell, lend on the security of, or otherwise deal with any mortgage that the corporation is prohibited from so dealing with under the standards issued under section 1330 of the Housing and Community Development Act of 1992 by the Director of the Federal Housing Finance Agency.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA219119456674AB59F89E4F4A5167545"><enum>(c)</enum><header>Freddie Mac</header><text>Section 305 of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HBB89BA641BEF4816B3E74C30F4DC73B" style="OLC"> <subsection id="HD392844A4FB84BAD95F485788E361EE3"><enum>(d)</enum><header>Prohibition regarding mortgagor identification requirements</header><text display-inline="yes-display-inline">Nothing in this Act may be construed to authorize the Corporation to purchase, service, hold, sell, lend on the security of, or otherwise deal with any mortgage that the Corporation is prohibited from so dealing with under the standards issued under section 1330 of the Housing and Community Development Act of 1992 by the Director of the Federal Housing Finance Agency.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HAC44559E52D8467700171400101C7150"><enum>(d)</enum><header>Federal home loan banks</header><text>Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) is amended—</text> <paragraph id="HA5B8CD198AD948CD83FA141582419EE"><enum>(1)</enum><text>by redesignating paragraph (6) as paragraph (7); and</text> </paragraph><paragraph id="H1755B018B2E74D5FA53455564CC2EF28"><enum>(2)</enum><text>by inserting after paragraph (5) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H4CA93DFC5B184115A25085E061AC956C" style="OLC"> <paragraph id="H9C08EEA881AE4E5899D144DB362CC1D"><enum>(6)</enum><header>Prohibition regarding mortgagor identification requirements</header><text display-inline="yes-display-inline">Nothing in this Act may be construed to authorize a Federal Home Loan Bank to provide any advance to a member for use in financing, or accept as collateral for an advance under this section, any mortgage that a Bank is prohibited from so accepting under the standards issued under section 1330 of the Housing and Community Development Act of 1992 by the Director of the Federal Housing Finance Agency.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H58833762B0094E73A35BBFFA7284D013"><enum>1037.</enum><header>Revision of housing goals</header> <subsection id="H69A4E470A2FC4CA8B67FBBCAB0E0A1A2"><enum>(a)</enum><header>Housing Goals</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking sections 1331 through 1334 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561-4">12 U.S.C. 4561–4</external-xref>) and inserting the following new sections:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HBF5B8387E0AE42C195078343F12D117F" style="OLC"> <section id="H059AAEA8D494487CAB36F342F122740"><enum>1331.</enum><header>Establishment of housing goals</header> <subsection id="H6CEF8D6BCEE345C9946E5C7700A2AE74"><enum>(a)</enum><header>In General</header><text>The Director shall establish, effective for the first year that begins after the effective date under section 1065 of the <short-title>Federal Housing Finance Reform Act of 2008</short-title> and each year thereafter, annual housing goals, with respect to the mortgage purchases by the enterprises, as follows:</text> <paragraph id="HE72925B9BE4C49A1A98D480181D605BA"><enum>(1)</enum><header>Single family housing goals</header><text>Three single-family housing goals under section 1332.</text> </paragraph><paragraph id="H81D3B60B70A84DC789C9303034B6B05B"><enum>(2)</enum><header>Multifamily special affordable housing goals</header><text>A multifamily special affordable housing goal under section 1333.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HC35B4E21EA3C4E4085C7609D36C62E6D"><enum>(b)</enum><header>Eliminating interest rate disparities</header> <paragraph id="H43E7030104174E8196EC7B2CFB7695F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Upon request by the Director, an enterprise shall provide to the Director, in a form determined by the Director, data the Director may review to determine whether there exist disparities in interest rates charged on mortgages to borrowers who are minorities as compared with comparable mortgages to borrowers of similar creditworthiness who are not minorities.</text> </paragraph><paragraph id="H6A79981F93364E3EB73CE23E0006B9C5"><enum>(2)</enum><header>Remedial actions upon preliminary finding</header><text>Upon a preliminary finding by the Director that a pattern of disparities in interest rates with respect to any lender or lenders exists pursuant to the data provided by an enterprise in paragraph (1), the Director shall—</text> <subparagraph id="HCE15F80AF33B411A9264F4C2C816A892"><enum>(A)</enum><text>refer the preliminary finding to the appropriate regulatory or enforcement agency for further review;</text> </subparagraph><subparagraph id="H3C5D9BD32C6A4FA7B2D3B1D5E86C9006"><enum>(B)</enum><text>require the enterprise to submit additional data with respect to any lender or lenders, as appropriate and to the extent practicable, to the Director who shall submit any such additional data to the regulatory or enforcement agency for appropriate action; and</text> </subparagraph><subparagraph id="H23AA7F6653C841BEBCAF2CF32FE93C23"><enum>(C)</enum><text>require the enterprise to undertake remedial actions, as appropriate, pursuant to section 1325(5) (<external-xref legal-doc="usc" parsable-cite="usc/12/4545">12 U.S.C. 4545(5)</external-xref>).</text> </subparagraph></paragraph><paragraph id="H1B16D04A55E94B6C8FC125F106BDFA1"><enum>(3)</enum><header>Annual report to Congress</header><text display-inline="yes-display-inline">The Director shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report describing the actions taken, and being taken, by the Director to carry out this subsection. No such report shall identify any lender or lenders who have not been found to have engaged in discriminatory lending practices pursuant to a final adjudication on the record, and after opportunity for an administrative hearing, in accordance with subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code.</text> </paragraph><paragraph id="H4F32F10B9ED64117AA7D0044F8D0F741"><enum>(4)</enum><header>Protection of identity of individuals</header><text>In carrying out this subsection, the Director shall ensure that no property-related or financial information that would enable a borrower to be identified shall be made public.</text> </paragraph></subsection><subsection id="HC6136368450C449D8032351FA7E12D25"><enum>(c)</enum><header>Timing</header><text>The Director shall establish an annual deadline by which the Director shall establish the annual housing goals under this subpart for each year, 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 annual goals.</text> </subsection></section><section display-inline="no-display-inline" id="HEC65C183E55C4BC3AFC5DD077612AF49" section-type="subsequent-section"><enum>1332.</enum><header>Single-family housing goals</header> <subsection id="HA453F7E63E5D4C93BD00FC9D275F338B"><enum>(a)</enum><header>In General</header><text>The Director shall establish annual goals for the purchase by each enterprise of conventional, conforming, single-family, purchase money mortgages financing owner-occupied and rental housing for each of the following categories of families:</text> <paragraph id="H7E485FA706EF4B55A466BF74E41D5DE1"><enum>(1)</enum><text>Low-income families.</text> </paragraph><paragraph id="H75B7AD082CCC4A349050BE56572B7654"><enum>(2)</enum><text>Families that reside in low-income areas.</text> </paragraph><paragraph id="HA1344E98F4B344CC95BA43B3615E30A"><enum>(3)</enum><text>Very low-income families.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HA149FA533B4648C495027EF153E75F47"><enum>(b)</enum><header>Refinance subgoal</header> <paragraph id="H0FFE47EA76B74A2E002DF51D75D5F80"><enum>(1)</enum><header>In general</header><text>The Director shall establish a separate subgoal within each goal under subsection (a)(1) for the purchase by each enterprise of mortgages for low-income families on single family housing given to pay off or prepay an existing loan secured by the same property. The Director shall, for each year, determine whether each enterprise has complied with the subgoal under this subsection in the same manner provided under this section for determining compliance with the housing goals.</text> </paragraph><paragraph id="HE91D01990A7E4EC69595EE64AFD00498"><enum>(2)</enum><header>Enforcement</header><text display-inline="yes-display-inline">For purposes of section 1336, the subgoal established under paragraph (1) of this subsection shall be considered to be a housing goal established under this section. Such subgoal shall not be enforceable under any other provision of this title (including subpart C of this part) other than section 1336 or under any provision of the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act.</text> </paragraph></subsection><subsection id="H89DA86B8AB584145AD87B9402655997F"><enum>(c)</enum><header>Determination of compliance</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. An enterprise shall be considered to be in compliance with such a goal 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 or rental, as applicable, purchase money 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 (d).</text> </subsection><subsection id="H1E081B977D494637AD02895E3D7E2151"><enum>(d)</enum><header>Annual targets</header> <paragraph id="H4431A911BA5649B8A2E09EB443151F8B"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), for each of the types of families described in subsection (a), the target under this subsection for a year shall be the average percentage, for the three years that most recently precede such year and for which information under the Home Mortgage Disclosure Act of 1975 is publicly available, of the number of conventional, conforming, single-family, owner-occupied or rental, as applicable, purchase money mortgages originated in such year that serves such type of family, as determined by the Director using the information obtained and determined pursuant to paragraphs (3) and (4).</text> </paragraph><paragraph id="H554EA4F7193F497AB9525B84F39C471D"><enum>(2)</enum><header>Authority to increase targets</header> <subparagraph id="HF1A059CA63E845B1B291E03B007E5E18"><enum>(A)</enum><header>In general</header><text>The Director may, for any year, establish by regulation, for any or all of the types of families described in subsection (a), percentage targets that are higher than the percentages for such year determined pursuant to paragraph (1), to reflect expected changes in market performance related to such information under the Home Mortgage Disclosure Act of 1975.</text> </subparagraph><subparagraph id="H6984E33EC9E242B789E54EF19BB7E84D"><enum>(B)</enum><header>Factors</header><text>In establishing any targets pursuant to subparagraph (A), the Director shall consider the following factors:</text> <clause id="H75E640A1FBB64F5300BA7A38E333212"><enum>(i)</enum><text>National housing needs.</text> </clause><clause id="HC1D655A231894E309DB08129987B2EB3"><enum>(ii)</enum><text>Economic, housing, and demographic conditions.</text> </clause><clause id="H77F616406E4D42388FC2FE138901FB69"><enum>(iii)</enum><text>The performance and effort of the enterprises toward achieving the housing goals under this section in previous years.</text> </clause><clause id="H4D766F30689A4EF3B6B095B884B9EAC"><enum>(iv)</enum><text>The size of the conventional mortgage market serving each of the types of families described in subsection (a) relative to the size of the overall conventional mortgage market.</text> </clause><clause display-inline="no-display-inline" id="H1A86E63E7E4E4D4F958C85D48DD3A2B4"><enum>(v)</enum><text>The ability of the enterprise to lead the industry in making mortgage credit available.</text> </clause><clause id="H9786AAE836B34E0BB3F81D007356FB90"><enum>(vi)</enum><text>The need to maintain the sound financial condition of the enterprises.</text> </clause></subparagraph></paragraph><paragraph id="H86B13A6D4D1C408AA35790B2C6035E83"><enum>(3)</enum><header>HMDA information</header><text>The Director shall annually obtain information submitted in compliance with the Home Mortgage Disclosure Act of 1975 regarding conventional, conforming, single-family, owner-occupied or rental, as applicable, purchase money mortgages originated and purchased for the previous year.</text> </paragraph><paragraph id="HDCF530A362374DDD9FE47DBE2312A26C"><enum>(4)</enum><header>Conforming mortgages</header><text>In determining whether a mortgage is a conforming mortgage for purposes of this paragraph, the Director shall consider the original principal balance of the mortgage loan to be the principal balance as reported in the information referred to in paragraph (3), as rounded to the nearest thousand dollars.</text> </paragraph></subsection><subsection id="HEF4BC225C5AE42F19ED162D3B737FEF3"><enum>(e)</enum><header>Notice of determination and enterprise comment</header> <paragraph id="H0E578458CDE9468EB17DC18EF2CD27AE"><enum>(1)</enum><header>Notice</header><text>Within 30 days of making a determination under subsection (c) regarding a compliance of an enterprise for a year with a 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 targets for the year under subsection (d).</text> </paragraph><paragraph id="H9BE4F6D6B42E4FC487EE14B2007670ED"><enum>(2)</enum><header>Comment period</header><text>The Director shall provide each enterprise 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="HBDF6C16B6E584B9D9900B2EFDCC3F827"><enum>(f)</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 such income at the time of origination of the mortgage.</text> </subsection><subsection id="H3363726A79F04F2C87B1883EE65917BE"><enum>(g)</enum><header>Consideration of units in single-family rental housing</header><text display-inline="yes-display-inline">In establishing any goal under this subpart, the Director may take into consideration the number of housing units financed by any mortgage on single-family rental housing purchased by an enterprise.</text> </subsection></section><section display-inline="no-display-inline" id="H7D78E79D56F741A0A8C7ACAB85D91B80" section-type="subsequent-section"><enum>1333.</enum><header>Multifamily special affordable housing goal</header> <subsection id="H0F189921A82A4E66A16C67CCDFDEB468"><enum>(a)</enum><header>Establishment</header> <paragraph id="H20AC8320DADB42C3B92100798070786D"><enum>(1)</enum><header>In general</header><text>The Director shall establish, by regulation, an annual goal for the purchase by each enterprise of each of the following types of mortgages on multifamily housing:</text> <subparagraph id="H163AADE4560A473B931E82AA97856061"><enum>(A)</enum><text>Mortgages that finance dwelling units for low-income families.</text> </subparagraph><subparagraph id="H7CC4D28FB8994470A3EF432CC7B25C71"><enum>(B)</enum><text>Mortgages that finance dwelling units for very low-income families.</text> </subparagraph><subparagraph id="H29FF3ABEF529438CA6B1617E44BD2D1F"><enum>(C)</enum><text>Mortgages that finance dwelling units assisted by the low-income housing tax credit under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986.</text> </subparagraph></paragraph><paragraph id="H924F5D136816493FB7482BA4D6002846"><enum>(2)</enum><header>Additional requirements for smaller projects</header><text>The Director shall establish, within the goal 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 such smaller sizes as are typical among such projects that serve rural areas.</text> </paragraph><paragraph id="H3128CFEF537847649F15E5EDD5B98146"><enum>(3)</enum><header>Factors</header><text>In establishing the goal under this section relating to mortgages on multifamily housing for an enterprise for a year, the Director shall consider—</text> <subparagraph id="H10C098549E354F71BDB65BDA1C01BF84"><enum>(A)</enum><text>national multifamily mortgage credit needs;</text> </subparagraph><subparagraph id="H3436821DFD094D7B001C9807AF5F3363"><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="H81F762BE057E4D64BEA2F8E9125752D"><enum>(C)</enum><text>the size of the multifamily mortgage market;</text> </subparagraph><subparagraph id="H2ACBBA79E9594C5DB0D500CADC2D1F9F"><enum>(D)</enum><text>the ability of the enterprise to lead the industry in making mortgage credit available, especially for underserved markets, such as for small multifamily projects of 5 to 50 units, multifamily properties in need of rehabilitation, and multifamily properties located in rural areas; and</text> </subparagraph><subparagraph id="H905292C04FE44B5E84342EBA58A201C5"><enum>(E)</enum><text>the need to maintain the sound financial condition of the enterprise.</text> </subparagraph></paragraph></subsection><subsection id="H8AA743862F524D0EA15B96BF5F00A300"><enum>(b)</enum><header>Units financed by housing finance agency bonds</header><text>The Director shall 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 that otherwise qualifies under such goal and that is financed by tax-exempt or taxable bonds issued by a State or local housing finance agency, but only if such bonds—</text> <paragraph id="HF600A0FBC3424F0B93A17588EBBDE250"><enum>(1)</enum><text>are secured by a guarantee of the enterprise; or</text> </paragraph><paragraph id="HE4ED8A397AB84848BAE06696DB569018"><enum>(2)</enum><text>are not investment grade and are purchased by the enterprise.</text> </paragraph></subsection><subsection id="HE842C91A00C644B2A1BB4F04D3196326"><enum>(c)</enum><header>Use of tenant income or rent</header><text>The Director shall monitor the performance of each enterprise in meeting the goals established under this section and shall evaluate such performance (for purposes of section 1336) based on—</text> <paragraph id="HC6C86731F7FD40FC910140CC70CD54DE"><enum>(1)</enum><text>the income of the prospective or actual tenants of the property, where such data are available; or</text> </paragraph><paragraph id="HD4ECFAF2A13142AE93E3DC32FE0081E5"><enum>(2)</enum><text>where the data referred to in paragraph (1) are not available, rent levels affordable to low-income and very low-income families.</text> </paragraph><continuation-text continuation-text-level="subsection">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.</continuation-text></subsection><subsection id="H3222A1A614F14FE3AFB42654456825C8"><enum>(d)</enum><header>Determination of Compliance</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> </subsection></section><section id="H10BE085075A747B2862DA63BCC558D5"><enum>1334.</enum><header>Discretionary adjustment of housing goals</header> <subsection id="H8D112909626B4EE4813E3F7DE2C8A1AC"><enum>(a)</enum><header>Authority</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> </subsection><subsection id="H3C6C383019BF498CB149453BA72DF441"><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="HC70B4716AFBF4B6C9E023E9FCD3F70D3"><enum>(1)</enum><text>market and economic conditions or the financial condition of the enterprise require such action; or</text> </paragraph><paragraph id="H8B754E40924B4A21B2132CCD5781B91"><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, or 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(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="H42F581AF824F415EB36B869436FB3DA"><enum>(c)</enum><header>Determination</header><text>The Director shall make a determination regarding any proposed reduction within 30 days of receipt of the petition regarding the reduction. The Director may extend such period for a single additional 15-day period, but only if the Director requests additional information from the enterprise. A denial by the Director to reduce the level of any goal under this section may be appealed to the United States District Court for the District of Columbia or the United States district court in the jurisdiction in which the headquarters of an enterprise is located.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HEDBA4EB73F3A4BE5963987B7C643B792"><enum>(b)</enum><header>Conforming Amendments</header><text>The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended—</text> <paragraph id="HB5178484A312438AA9BFF3B82F9DD3CE"><enum>(1)</enum><text>in section 1335(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565(a)</external-xref>), 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="HDD12E94087EB44AA8253CF4203B458ED"><enum>(2)</enum><text>in section 1336(a)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)(1)</external-xref>), by striking <quote>sections 1332, 1333, and 1334,</quote> and inserting <quote>this subpart</quote>.</text> </paragraph></subsection><subsection id="HDC2C3F4629024A4884845DB0B615C407"><enum>(c)</enum><header>Definitions</header><text>Section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>), as amended by the preceding provisions of this title, is further amended—</text> <paragraph id="H418D000BE293450B8B00450000456C6F"><enum>(1)</enum><text>in paragraph (22) (relating to the definition of <quote>very low-income</quote>), by striking <quote>60 percent</quote> each place such term appears and inserting <quote>50 percent</quote>;</text> </paragraph><paragraph id="H2E384F9F5C2E4FE6B64E55B7EC91179D"><enum>(2)</enum><text>by redesignating paragraphs (19) through (22) as paragraphs (23) through (26), respectively;</text> </paragraph><paragraph id="H06960B419847496C89496CFC2025E5ED"><enum>(3)</enum><text>by inserting after paragraph (18) the following new paragraph:</text> <quoted-block id="HE947AA917E1448699F0414EA2C2CAAA6" style="OLC"> <paragraph id="H278212DC7B094904004C66C5006CF516"><enum>(22)</enum><header>Rural area</header><text>The term <term>rural area</term> has the meaning given such term in section 520 of the <act-name parsable-cite="HA49">Housing Act of 1949</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1490">42 U.S.C. 1490</external-xref>), except that such term includes micropolitan areas and tribal trust lands.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H6997D44F3A4A44E39632BDDB6F83CBA2"><enum>(4)</enum><text>by redesignating paragraphs (13) through (18) as paragraphs (16) through (21), respectively;</text> </paragraph><paragraph id="H79E882D900C94222804C95F69E3ED30"><enum>(5)</enum><text>by inserting after paragraph (12) the following new paragraph:</text> <quoted-block id="HD2F393C13D1A4D4B8190882B47B2E536" style="OLC"> <paragraph id="H609B7DCB33D0449FA3C46DB9FD9291FC"><enum>(15)</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><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H302D51EF2CEA47BAB71321DBE935E930"><enum>(6)</enum><text>by redesignating paragraphs (11) and (12) as paragraphs (13) and (14), respectively;</text> </paragraph><paragraph id="HC9452FAF7A1247BE9E6387AEF53EC6B3"><enum>(7)</enum><text>by inserting after paragraph (10) the following new paragraph:</text> <quoted-block id="H1BAC7D3B97EF44F5A5C5B6DDD159ADEC" style="OLC"> <paragraph id="H9A897543900E4651005CA2BAC19E7D38"><enum>(12)</enum><header>Extremely low-income</header><text>The term <term>extremely low-income</term> means—</text> <subparagraph id="HA3A4E8900FA643BE95D5A033002E00AA"><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="H1AF2B6FB3E6E4EE5B0CF4D23FA87BF"><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 Secretary.</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H2C84F23BB3C74CA1AF38DE90FD00C6A8"><enum>(8)</enum><text>by redesignating paragraphs (7) through (10) as paragraphs (8) through (11), respectively; and</text> </paragraph><paragraph id="H3D0F55DA34124F2500FB56D59DC618DE"><enum>(9)</enum><text>by inserting after paragraph (6) the following new paragraph:</text> <quoted-block id="HD7FAAE7F31B84A76B78DE9FA5067A802" style="OLC"> <paragraph id="H5027B527463D4246A2018D4354B47DC1"><enum>(7)</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 dollar limitation, in effect at the time of such origination, under, as applicable—</text> <subparagraph id="H6FEBB6F8F326485CAAA93353D36FDF3"><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="H3849D2F7813E489183DF64C6793B6410"><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><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H58A02B00A9B04279B669BF6B2C3D158E"><enum>1038.</enum><header>Duty to serve underserved markets</header> <subsection id="HD2F9DB7F578947B78693EE1F17C27679"><enum>(a)</enum><header>Establishment and Evaluation of Performance</header><text>Section 1335 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4565">12 U.S.C. 4565</external-xref>) is amended—</text> <paragraph id="H0FA93F2E8B794B4A9E00F71978DDA559"><enum>(1)</enum><text>in the section heading, by inserting <quote><header-in-text>duty to serve underserved markets and</header-in-text></quote> before <quote><header-in-text>other</header-in-text></quote>;</text> </paragraph><paragraph id="HD20C3AC903074706B0DAFD437700F129"><enum>(2)</enum><text>by striking subsection (b);</text> </paragraph><paragraph id="H7A6D48717A2B403A91737B53736E54E9"><enum>(3)</enum><text>in subsection (a)—</text> <subparagraph id="H91D35E249BE64C1B84B4D6E32046511"><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="HC56DD85FD36D47499EB1FC544FF6718B"><enum>(B)</enum><text>in paragraph (3), by inserting <quote>and</quote> after the semicolon at the end;</text> </subparagraph><subparagraph id="HFA554D4BD70C4F2FAA652BBE77C940D8"><enum>(C)</enum><text>in paragraph (4), by striking <quote>; and</quote> and inserting a period;</text> </subparagraph><subparagraph id="H3E727624848A45D7B95B37C4D6B066BA"><enum>(D)</enum><text>by striking paragraph (5); and</text> </subparagraph><subparagraph id="H92D8ED8FF15343D1822B6E678F507B01"><enum>(E)</enum><text>by redesignating such subsection as subsection (b);</text> </subparagraph></paragraph><paragraph id="HFA6D178E1C9E48F09B7CCD5274BA3896"><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 id="H8E8CEC993605473BA6C9C48652D50976" style="OLC"> <subsection id="H2675111B624F4509999D00446966D748"><enum>(a)</enum><header>Duty To Serve Underserved Markets</header> <paragraph id="H32E0032802AF424600F6EE822496CF04"><enum>(1)</enum><header>Duty</header><text>In accordance with the purpose of the enterprises under 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</external-xref>) and 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) 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.</text> </paragraph><paragraph id="H20E98A3A0C5D4697B0FB1638933015E5"><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="H45EF84EBE52242E395095C00F52BA88B"><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="H0AB094BEE9BA4EE5AB572700C13FF923"><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="H47A471B0F194482C9505144C2C004FFF"><enum>(i)</enum><text>the project-based and tenant-based rental assistance programs under section 8 of the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name>;</text> </clause><clause id="H17A056055B914F8B879CD000A2B83CB0"><enum>(ii)</enum><text>the program under section 236 of the <act-name parsable-cite="NHA">National Housing Act</act-name>;</text> </clause><clause id="HF80A0BB2AC41484FB860A937355B467B"><enum>(iii)</enum><text>the below-market interest rate mortgage program under section 221(d)(4) of the <act-name parsable-cite="NHA">National Housing Act</act-name>;</text> </clause><clause id="HDB2D5C4764CA4000B563237502CE29FC"><enum>(iv)</enum><text>the supportive housing for the elderly program under section 202 of the Housing Act of 1959;</text> </clause><clause id="H5EC891866D764E7287BEEA4794683E5"><enum>(v)</enum><text>the supportive housing program for persons with disabilities under section 811 of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act;</act-name></text> </clause><clause display-inline="no-display-inline" id="H63B2E384211840B186797D3CD790B4D8"><enum>(vi)</enum><text display-inline="yes-display-inline">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="HADA579761041433E96BBA1625C6E6975"><enum>(vii)</enum><text>the rural rental housing program under section 515 of the <act-name parsable-cite="HA49">Housing Act of 1949</act-name>.</text> </clause></subparagraph><subparagraph id="HCDDE0DE861E74F38934663705E0892DA"><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 Secretary 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="H174C0E383FAA4B5DAA24BEEE5FD5004B"><enum>(5)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="H7AD5914D79BD4FEBBA347B2582A529DA" style="OLC"> <subsection id="H94AA82C332F842A48181C5EB141191C2"><enum>(c)</enum><header>Evaluation and Reporting of Compliance</header> <paragraph id="HFFFB2EF6723D442F9199372859FC2FC1"><enum>(1)</enum><header>In general</header><text>Not later than 6 months after the effective date under section 1065 of the <short-title>Federal Housing Finance Reform Act of 2008</short-title>, 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="H02713F5AF6DA4DA297003D2563006442"><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="H3ABE8C831F314FEABF4D3E00C2E49B53"><enum>(A)</enum><text>the development of loan products and more flexible underwriting guidelines;</text> </subparagraph><subparagraph id="HAD230AFD7A1E4B12924DEEEE81AB4192"><enum>(B)</enum><text>the extent of outreach to qualified loan sellers in each of such underserved markets; and</text> </subparagraph><subparagraph id="HAC86C9A088C9452C00AAB99B3EA0074"><enum>(C)</enum><text>the volume of loans purchased in each of such underserved markets.</text> </subparagraph></paragraph><paragraph id="HEF6B02B9AEEC4F378845259EE716C282"><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="H57F16901E8494C358BDC79C9B31626F"><enum>(b)</enum><header>Enforcement</header><text>Subsection (a) of section 1336 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)</external-xref>) is amended—</text> <paragraph id="H28DC196EC1BC4CE0833355EC6F9BA46B"><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="H6D5F80DC6479420180394C83A6965426"><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 id="H1258F11EFAEE4DCAA15DC0918C60AE20" style="OLC"> <paragraph id="H42E29FA280294F5F9972D7004F535969"><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 <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="HCC825CA3FBCD4174AC9FF0A6F3E6B0B3"><enum>1039.</enum><header>Monitoring and enforcing compliance with housing goals</header> <subsection id="H4BA302EAD87848D49705E418E96DB3CE"><enum>(a)</enum><header>Additional credit for certain mortgages</header><text>Section 1336(a) of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566(a)</external-xref>) is amended—</text> <paragraph id="H331A0A19C6F847EE96503F645D402D56"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting <quote>, except as provided in paragraph (4),</quote> after <quote>which</quote>; and</text> </paragraph><paragraph id="HF2F29287770B466B8ECFA4B53656F989"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H2CFE9E35D450438ABDE990BCAEC9E0FA" style="OLC"> <paragraph id="H6FF913158AAA4A188D82FD21DDCCDEB7"><enum>(5)</enum><header>Additional credit</header><text display-inline="yes-display-inline">The Director shall assign more than 125 percent credit toward achievement, under this section, of the housing goals for mortgage purchase activities of the enterprises that comply with the requirements of such goals and support—</text> <subparagraph id="HD4DC90EA7B53455200ADC6E462634F5C"><enum>(A)</enum><text display-inline="yes-display-inline">housing that meets energy efficiency or other environmental standards that are established by a Federal, State, or local governmental authority with respect to the geographic area where the housing is located or are otherwise widely recognized; or</text> </subparagraph><subparagraph id="H08949C460B3F43F5A1F525FB62A8EBD"><enum>(B)</enum><text display-inline="yes-display-inline">housing that includes a licensed childcare center.</text> </subparagraph><continuation-text continuation-text-level="paragraph">The availability of additional credit under this paragraph shall not be used to increase any housing goal, subgoal, or target established under this subpart.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HD278FC3187FC490991F2B516A270A706"><enum>(b)</enum><header>Monitoring and enforcement</header><text display-inline="yes-display-inline">Section 1336 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4566">12 U.S.C. 4566</external-xref>) is amended—</text> <paragraph id="H3637508DA274439C9400ACE7A6B5B777"><enum>(1)</enum><text>in subsection (b)—</text> <subparagraph id="HD6D5F56D4B7E4FB091241520408740E9"><enum>(A)</enum><text>in the subsection heading, by inserting <quote><header-in-text level="subsection" style="OLC">Preliminary</header-in-text></quote> before <quote><header-in-text level="subsection" style="OLC">Determination</header-in-text></quote>;</text> </subparagraph><subparagraph id="HDC0AA79E59B04EFF831F9661B03500AE"><enum>(B)</enum><text>by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block id="HC6AA83188E0C46E7B0631BDCAFA7EC08" style="OLC"> <paragraph id="H7FD48C4230884172A398036BB5F59D9F"><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 established 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><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="HA6192C18F95249C7B4615BFB659EAEDC"><enum>(C)</enum><text>in paragraph (2)—</text> <clause id="H4A52697355ED4F04BA602CEB1D00E4C3"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>finally</quote> before <quote>determining</quote>;</text> </clause><clause id="H16FE8BDB86304468B952C7A43F206C4B"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C) and inserting the following new subparagraph:</text> <quoted-block id="H3A08AA9EC3F34D6CBE98A820693053E8" style="OLC"> <subparagraph id="H652AB84157B24AA5A800E24BC9337B91"><enum>(B)</enum><header>Extension or shortening of period</header><text>The Director may—</text> <clause id="H78E72977029049D0A217A0B6013872D1"><enum>(i)</enum><text>extend the period under subparagraph (A) for good cause for not more than 30 additional days; and</text> </clause><clause id="HCC803959170D4A5A8612AED2967776D"><enum>(ii)</enum><text>shorten the period under subparagraph (A) for good cause.</text> </clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause id="H018B6F7420884858ADA028F53DB506B8"><enum>(iii)</enum><text>by redesignating subparagraph (D) as subparagraph (C); and</text> </clause></subparagraph><subparagraph id="HF19F4BD8046042D1806000E7C4A778D"><enum>(D)</enum><text>in paragraph (3)—</text> <clause id="HA80FFD7D0B6E4CA5876CE02375FBE608"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>determine</quote> and inserting <quote>issue a final determination of</quote>;</text> </clause><clause id="HCE4F8C0DAF0841709C4C2739838FA5D"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>final</quote> before <quote>determinations</quote>; and</text> </clause><clause id="H696F6F5E0C95404F817C971B375DC6C"><enum>(iii)</enum><text>in subparagraph (C)—</text> <subclause id="H8F88FC6371C44B00AB9402B6A3004F9B"><enum>(I)</enum><text>by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> and inserting <quote>Committee on Financial Services</quote>; and</text> </subclause><subclause id="H9B4A46C52A6641F98718DF623F0465E6"><enum>(II)</enum><text>by inserting <quote>final</quote> before <quote>determination</quote> each place such term appears; and</text> </subclause></clause></subparagraph></paragraph><paragraph id="HCA75AFA53B9A40EDA48078C17B4C1D7E"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="HECA67C7712294470A3864596EEE11C6B"><enum>(A)</enum><text>by striking the subsection designation and heading and all that follows through the end of paragraph (1) and inserting the following:</text> <quoted-block id="HDCD8CA80B1484A5897F5A6FA4E69FB67" style="OLC"> <subsection id="H8D69BA00704642CCBB03771C1374AC90"><enum>(c)</enum><header>Cease and Desist Orders, Civil Money Penalties, and Remedies Including Housing Plans</header> <paragraph id="HDBEAEC97538C481FB0F3F7232375CB9C"><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) of this subsection.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph id="H93CE9D858DC54F7591E7AC83B87916AD"><enum>(B)</enum><text>in paragraph (2)—</text> <clause id="HAB90181015DB4E0896E1E500CEDBDFB"><enum>(i)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">Contents</header-in-text>.—Each housing plan</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Housing plan</header-in-text>.—If the Director requires a housing plan under this section, such a plan</quote>; and</text> </clause><clause id="H711B943E15AF4A2BBAC5874D00703688"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>and changes in its operations</quote> after <quote>improvements</quote>;</text> </clause></subparagraph><subparagraph id="HFB0A1AD9C584417E8487C7DA00930000"><enum>(C)</enum><text>in paragraph (3)—</text> <clause id="HC62F798ABEC94A4AAB13FEBEF55C66C0"><enum>(i)</enum><text>by inserting <quote>comply with any remedial action or</quote> before <quote>submit a housing plan</quote>; and</text> </clause><clause id="HC505F7236DAC412CA500B22D368020AA"><enum>(ii)</enum><text>by striking <quote>under subsection (b)(3) that a housing plan is required</quote>;</text> </clause></subparagraph><subparagraph id="H2D0B4B879C68449583E6F92E7C6C102B"><enum>(D)</enum><text>in paragraph (4), by striking the first two sentences and inserting the following: <quote>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 such extension necessary.</quote>; and</text> </subparagraph><subparagraph id="H0EFAE6833F504FB5BC58CD0AC7900AC"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="H7055F3ADBAB7471CB28FED33F0003966" style="OLC"> <paragraph id="HF747195B6D824EB2A2C600A1452BA157"><enum>(7)</enum><header>Additional remedies for failure to meet goals</header><text display-inline="yes-display-inline">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 seek other actions when an enterprise fails to meet a goal, and exercise appropriate enforcement authority available to the Director under this Act to prohibit the enterprise from initially offering any product (as such term is defined in section 1321(f)) or engaging in any new activities, services, undertakings, and offerings and to order the enterprise to suspend products and activities, services, undertakings, and offerings pending its achievement of the goal.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection></section><section id="H426F2803366242DAA5191FD69CA48570"><enum>1040.</enum><header>Consistency with mission</header><text display-inline="no-display-inline">Subpart B of part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking sections 1337 and 1338 (<external-xref legal-doc="usc" parsable-cite="usc/42/4562">42 U.S.C. 4562</external-xref> note) and inserting the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H6447F7E93BE34C4EB296088B4076CC1" style="OLC"> <section id="HE9371A37076A48EE8DE5A5BFB1178B8"><enum>1337.</enum><header>Consistency with mission</header><text display-inline="no-display-inline">This subpart may not be construed to authorize an enterprise to engage in any program or activity that contravenes or is inconsistent with the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H85405492AE864511A181347FB5325C49"><enum>1041.</enum><header>Enforcement</header> <subsection id="HDE6D058114F44B34A4C8F9E262821365"><enum>(a)</enum><header>Cease-and-Desist Proceedings</header><text>Section 1341 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4581">12 U.S.C. 4581</external-xref>) is amended—</text> <paragraph id="HFC7421DA7120499B9BBCE43B05FE7F05"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HDC12DB3A517349C99D9D2E8400BAFC67" style="OLC"> <subsection id="H4B1E38B9FDD049F4A094540400D786DF"><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—</text> <paragraph id="H057735A809F5480183B304EE7EF3007F"><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="H65FAEE1AFB8E492C94539D24A3488F19"><enum>(2)</enum><text>the enterprise has failed to submit a report under section 1314, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;</text> </paragraph><paragraph id="HB31811ACE1964578ABC7957D532D801E"><enum>(3)</enum><text>the enterprise has failed to submit the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>;</text> </paragraph><paragraph id="H1F339A736BD347859CDFEB8DF6024BC"><enum>(4)</enum><text>the enterprise has violated any provision of this part or any order, rule or regulation under this part;</text> </paragraph><paragraph id="HAB84E4DAA48C442FAB5D498C00F7BC00"><enum>(5)</enum><text>the enterprise has failed to submit a housing plan that complies with section 1336(c) within the applicable period; or</text> </paragraph><paragraph id="H80886A9DE1D44218BF5E43A8DADAEF"><enum>(6)</enum><text>the enterprise has failed to comply with a housing plan under section 1336(c).</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HA838E3FDEE15468BA6008DF698FF173E"><enum>(2)</enum><text>in subsection (b)(2), by striking “requiring the enterprise to” and all that follows through the end of the paragraph and inserting the following: “requiring the enterprise to—</text> <quoted-block id="HC6A21280DF474DED97C2DDF7E8762664" style="OLC"> <subparagraph id="H8B86D87560D74DCF95F300DEC720686E"><enum>(A)</enum><text>comply with the goal or goals;</text> </subparagraph><subparagraph id="HA664ADC8A2234561979276761C48B4F"><enum>(B)</enum><text>submit a report under section 1314;</text> </subparagraph><subparagraph id="HA435E174BB174E09936827813CAE6F5F"><enum>(C)</enum><text>comply with any provision this part or any order, rule or regulation under such part;</text> </subparagraph><subparagraph id="HEB1E5FDB9BB94801ADE0C1128C4141C5"><enum>(D)</enum><text>submit a housing plan in compliance with section 1336(c);</text> </subparagraph><subparagraph id="H5C0AD655EB6541F5A600B3F7EA2D9701"><enum>(E)</enum><text>comply with a housing plan submitted under section 1336(c); or</text> </subparagraph><subparagraph id="H212170F7EA0045599E2E198B774EA438"><enum>(F)</enum><text>provide the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, as applicable.</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H55B84885C9EF41B9B6E137009B7D29EB"><enum>(3)</enum><text>in subsection (c), by inserting <quote>date of the</quote> before <quote>service of the order</quote>; and</text> </paragraph><paragraph id="H69B5892CA1574F53A1AB2CE9FC57735"><enum>(4)</enum><text>by striking subsection (d).</text> </paragraph></subsection><subsection id="HD9849F6F1EAE4C07AB1DD83361D55C02"><enum>(b)</enum><header>Authority of Director To Enforce Notices and Orders</header><text>Section 1344 of the <act-name parsable-cite="HCDA92">Housing and Community Development 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 subsection (a) and inserting the following new subsection:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HEEE25BB6D46E4BED88002018C796373" style="OLC"> <subsection id="H1C4D2A2A2723440EAFC722BC399EDF1F"><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 enterprise is located, for the enforcement of any effective and outstanding notice or order issued under section 1341 or 1345, 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>.</after-quoted-block></quoted-block> </subsection><subsection id="HC54E61155FA648FDB845EB0769D8412F"><enum>(c)</enum><header>Civil Money Penalties</header><text>Section 1345 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585</external-xref>) is amended—</text> <paragraph id="H1D762C0A8C304F68BC96BB5CC352E8AF"><enum>(1)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="H7530CCFBBA3940B198DE4DC7E00D485" style="OLC"> <subsection id="H5BCF435F6FB947C4A4856C8505C8228B"><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="H78811F6B18D74A4B828CE6F957EE8505"><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="HFBFFB048BB2F4C9B8F5BB9899C47B700"><enum>(2)</enum><text>submit a report under section 1314, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;</text> </paragraph><paragraph id="H7C124C6A289C40E690215B97F852306"><enum>(3)</enum><text>submit the information required under subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, or subsection (e) or (f) of section 307 of the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>;</text> </paragraph><paragraph id="H56B7C172A59E4C25B2FA541E4954AF83"><enum>(4)</enum><text>comply with any provision of this part or any order, rule or regulation under this part;</text> </paragraph><paragraph id="H538EDEE031C04F3D8C00A31BDFE638F7"><enum>(5)</enum><text>submit a housing plan pursuant to section 1336(c) within the required period; or</text> </paragraph><paragraph id="HF883BCE2F51A4F5B8C9F65CAC856A2DE"><enum>(6)</enum><text>comply with a housing plan for the enterprise under section 1336(c).</text> </paragraph></subsection><subsection id="H5000F92682F1453CB3A5A3165F2390C"><enum>(b)</enum><header>Amount of Penalty</header><text>The amount of the penalty, as determined by the Director, may not exceed—</text> <paragraph id="HFF2EE6978A0B429781E87F8CE3D61E91"><enum>(1)</enum><text>for any failure described in paragraph (1), (5), or (6) of subsection (a), $50,000 for each day that the failure occurs; and</text> </paragraph><paragraph id="H3BF80A36AEF1417D9406B55B8ECB00A6"><enum>(2)</enum><text>for any failure described in paragraph (2), (3), or (4) of subsection (a), $20,000 for each day that the failure occurs.</text> </paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H4432754D1F1941B4ACF9C6C9839F1456"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H4EBC7DE4FA1D41B9B7B2470037906F3C"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="H10C72CBAAA38472F88AB6F82C7E992AD"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>and</quote> after the semicolon at the end;</text> </clause><clause id="H23F49F2C956A4EA4926FB8E7D4184DF2"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>; and</quote> and inserting a period; and</text> </clause><clause id="H0957EAE365C6426B8496269DF99922CD"><enum>(iii)</enum><text>by striking subparagraph (C); and</text> </clause></subparagraph><subparagraph id="HA4C4DAC66440447F00BD4110836C0079"><enum>(B)</enum><text>in paragraph (2), by inserting after the period at the end the following: <quote>In determining the penalty under subsection (a)(1), the Director shall give consideration to the length of time the enterprise should reasonably take to achieve the goal.</quote>;</text> </subparagraph></paragraph><paragraph id="H6A071F3DB7E14C3BB9E252AF85BE849E"><enum>(3)</enum><text>in the first sentence of subsection (d)—</text> <subparagraph id="H67052D68F3AC4BBF858BFC72ADBCB1C7"><enum>(A)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; and</text> </subparagraph><subparagraph id="HF048ECB75676463FAA20D1EA2E30FF78"><enum>(B)</enum><text>by inserting <quote>, or request that the Attorney General of the United States bring such an action</quote> before the period at the end;</text> </subparagraph></paragraph><paragraph id="H69B276946C164432937FAFE5DE19FD24"><enum>(4)</enum><text>by striking subsection (f); and</text> </paragraph><paragraph id="H4B369109236243F1A021F2064EA740C3"><enum>(5)</enum><text>by redesignating subsection (g) as subsection (f).</text> </paragraph></subsection><subsection id="H30EA4FDA023746740098634F954292FC"><enum>(d)</enum><header>Enforcement of Subpoenas</header><text>Section 1348(c) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4588">12 U.S.C. 4588(c)</external-xref>) is amended—</text> <paragraph id="HDBD00ABCBCEC474C84E08CB984628BA6"><enum>(1)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>; and</text> </paragraph><paragraph id="HE5C4123E558A48A68658F68734C2AD08"><enum>(2)</enum><text>by inserting <quote>or request that the Attorney General of the United States bring such an action,</quote> after <quote>District of Columbia,</quote>.</text> </paragraph></subsection><subsection id="HEA6406053BFC4C219C97A1B631AA65FB"><enum>(e)</enum><header>Conforming Amendment</header><text>The heading for subpart C of part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended to read as follows:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="HBD5E5612C3774DDBAFBA588D2758B370" style="OLC"> <subpart id="H3AF7B204DA824336B6815BD3A6BBE1E9"><enum>C</enum><header>Enforcement</header> </subpart><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H4D6D9372F8634086A68DB370C1206BBE"><enum>1042.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Part 2 of subtitle A of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4541">12 U.S.C. 4541 et seq.</external-xref>) is amended—</text> <paragraph id="HAC8E4CEF729A45F298F4EACA6899BE2D"><enum>(1)</enum><text>by striking <quote>Secretary</quote> each place such term appears in such part and inserting <quote>Director</quote>;</text> </paragraph><paragraph id="H535E35FD0B5C4399AEEEE6F540806187"><enum>(2)</enum><text>in the section heading for section 1323 (<external-xref legal-doc="usc" parsable-cite="usc/12/4543">12 U.S.C. 4543</external-xref>), by inserting <quote><header-in-text>of enterprises</header-in-text></quote> before the period at the end;</text> </paragraph><paragraph id="H61FEF464FEA84AE0B0651199D4CD22C8"><enum>(3)</enum><text>by striking section 1327 (<external-xref legal-doc="usc" parsable-cite="usc/12/4547">12 U.S.C. 4547</external-xref>);</text> </paragraph><paragraph id="HE6A29F9C59F74C5687F27644BFCB3E38"><enum>(4)</enum><text>by striking section 1328 (<external-xref legal-doc="usc" parsable-cite="usc/12/4548">12 U.S.C. 4548</external-xref>);</text> </paragraph><paragraph id="H195707F10BEC497E9C72628774008192"><enum>(5)</enum><text>by redesignating section 1329 (as amended by section 1035) as section 1327;</text> </paragraph><paragraph id="H30270CABCFA94D57814BD8F4897D4B87"><enum>(6)</enum><text>in sections 1345(c)(1)(A), 1346(a), and 1346(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585(c)(1)(A)</external-xref>, 4586(a), and 4586(b)), by striking <quote>Secretary’s</quote> each place such term appears and inserting <quote>Director’s</quote>; and</text> </paragraph><paragraph id="H10B1823EBC06497583D4A80510B3F7D1"><enum>(7)</enum><text>by striking section 1349 (<external-xref legal-doc="usc" parsable-cite="usc/12/4589">12 U.S.C. 4589</external-xref>).</text> </paragraph></section></chapter><chapter id="H4686965A357E4C7E8400D741C1DC8251"><enum>3</enum><header>Prompt Corrective Action</header> <section id="H60B1ACD027AA47919D9281F4123B8D39"><enum>1045.</enum><header>Capital classifications</header> <subsection id="H70ECA91E2048423BB26F52D4117EC8DD"><enum>(a)</enum><header>In General</header><text>Section 1364 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614</external-xref>) is amended—</text> <paragraph id="HE51DFE630CA048F988A2C008D190D224"><enum>(1)</enum><text>in the heading for subsection (a), by striking <quote><header-in-text level="subsection" style="OLC">In general</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Enterprises</header-in-text></quote>.</text> </paragraph><paragraph id="HE0BE8243D74B4775B7E57389009B99C1"><enum>(2)</enum><text>in subsection (c)—</text> <subparagraph id="H20D654D258ED4AC3A1CCF807F243102C"><enum>(A)</enum><text>by striking <quote>subsection (b)</quote> and inserting <quote>subsection (c)</quote>;</text> </subparagraph><subparagraph id="H805720C0F2894180AF79B175AC8758A"><enum>(B)</enum><text>by striking <quote>enterprises</quote> and inserting <quote>regulated entities</quote>; and</text> </subparagraph><subparagraph id="HC7DE49BA116A467E80C6ED32E1F7D190"><enum>(C)</enum><text>by striking the last sentence;</text> </subparagraph></paragraph><paragraph id="HDE08819B0F514D4EBD720017934E221E"><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="H5C6AF063C331466200E295CBCC704D3C"><enum>(4)</enum><text>by striking subsection (b) and inserting the following new subsections:</text> <quoted-block id="HD29853B6AD574FCF8F2145E11E00F197" style="OLC"> <subsection id="H2F280EC015BD41FFA38800BD16E537B7"><enum>(b)</enum><header>Federal Home Loan Banks</header> <paragraph id="HD45C3413A12E4360A75EBA60EAB97DC7"><enum>(1)</enum><header>Establishment and criteria</header><text>For purposes of this subtitle, the Director shall, by regulation—</text> <subparagraph id="H40562EBC9AF74021BCCCCBACC97C06B3"><enum>(A)</enum><text>establish the capital classifications specified under paragraph (2) for the Federal home loan banks;</text> </subparagraph><subparagraph id="H9AD1BF9E0BAF49F0BF707E72C9E61684"><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="H422CFA320D8C44F69E8574F98757CD13"><enum>(C)</enum><text>shall classify the Federal home loan banks according to such capital classifications.</text> </subparagraph></paragraph><paragraph id="H8F19FD37E1E0427788DF5E1155DEE5E6"><enum>(2)</enum><header>Classifications</header><text>The capital classifications specified under this paragraph are—</text> <subparagraph id="HE6C70548A2044B0F00B9BADBF924E15"><enum>(A)</enum><text>adequately capitalized;</text> </subparagraph><subparagraph id="HF36483A9977845CE87404F004138B2AD"><enum>(B)</enum><text>undercapitalized;</text> </subparagraph><subparagraph id="H2056B078DCEE4EC3A767E8E42EF55879"><enum>(C)</enum><text>significantly undercapitalized; and</text> </subparagraph><subparagraph id="H63892944D3D94C29A1EDB7E3FFD6992D"><enum>(D)</enum><text>critically undercapitalized.</text> </subparagraph></paragraph></subsection><subsection id="HF457E8F968C54BABB90381E6CA5768"><enum>(c)</enum><header>Discretionary Classification</header> <paragraph id="H70C7CDE7EF8145A19022DDCD934BE488"><enum>(1)</enum><header>Grounds for reclassification</header><text>The Director may reclassify a regulated entity under paragraph (2) if—</text> <subparagraph id="H996577C27581483D00588C8FA413E381"><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, in the case of an enterprise, that the value of the property subject to mortgages held or securitized by the enterprise has decreased significantly;</text> </subparagraph><subparagraph id="H11AE4099E8224662B90717576BAD7226"><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="H640E88B4528D4D3399CCE320239B75E7"><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="HBF55A15D9E1E49E2BF9EBE71D67F4039"><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="H5F1720869B614149BFDE0962791F51A9"><enum>(A)</enum><text>as undercapitalized, if the regulated entity is otherwise classified as adequately capitalized;</text> </subparagraph><subparagraph id="H775FEEA24EBA43198068741938B433DD"><enum>(B)</enum><text>as significantly undercapitalized, if the regulated entity is otherwise classified as undercapitalized; and</text> </subparagraph><subparagraph id="H47D6E83543034FECAE7387A14648D8B4"><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="H25D22BBF12964EA88620BFF8F154A139"><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 id="HCA10BA013281470BA38BB81CFC005DAC" style="OLC"> <subsection id="H374AC517C30D470697AE45328577497F"><enum>(e)</enum><header>Restriction on Capital Distributions</header> <paragraph id="HC4BF7C1B85694B0689206D4353944E36"><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="HA169EED7C5CF43898EEAAAAE8FC22B70"><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="HA0D981A8819C46EBA928E1D037E4B210"><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="H3C167CB6A8DD49E4B607E919BA8337BB"><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="HB65CB4F8479241FE9B25444BCCB82431"><enum>(b)</enum><header>Regulations</header><text>Not later than the expiration of the 180-day period beginning on the effective date under section 1065, the Director of the Federal Housing Finance Agency shall issue regulations to carry out section 1364(b) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (as added by paragraph (4) of this subsection), relating to capital classifications for the Federal home loan banks.</text> </subsection></section><section id="HBBF5DD47D6734B53993D18C768527100"><enum>1046.</enum><header>Supervisory actions applicable to undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1365 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) is amended—</text> <paragraph id="HF80106710F5A4156A2FC17D473115765"><enum>(1)</enum><text>in the section heading, by striking <quote><header-in-text>enterprises</header-in-text></quote> and inserting <quote><header-in-text>regulated entities</header-in-text></quote>;</text> </paragraph><paragraph id="H377250B8732546D78022A881FC45ACDA"><enum>(2)</enum><text>in subsection (a)—</text> <subparagraph id="HA5A78A3CEB3846CF98914E5B46F4D8EE"><enum>(A)</enum><text>by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively;</text> </subparagraph><subparagraph id="HC08436DEFB58479CBD8400793907C225"><enum>(B)</enum><text>by inserting before paragraph (2), as so redesignated by subparagraph (A) of this paragraph, the following paragraph:</text> <quoted-block id="HAD5AAF4EF3F0412081DD7300819D01CA" style="OLC"> <paragraph id="HD4B33195EA99447BA224006B0600614B"><enum>(1)</enum><header>Required monitoring</header><text>The Director shall—</text> <subparagraph id="HD73D97CF588D4408973485F014BFA653"><enum>(A)</enum><text>closely monitor the condition of any regulated entity that is classified as undercapitalized;</text> </subparagraph><subparagraph id="H39B93D5C202544B4A96C5E69644547B0"><enum>(B)</enum><text>closely monitor compliance with the capital restoration plan, restrictions, and requirements imposed under this section; and</text> </subparagraph><subparagraph id="HD92A087E779B4CAAB559BE00AAF6C2B6"><enum>(C)</enum><text>periodically review the plan, restrictions, and requirements applicable to the 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="HD689B154488D44D6B2D2289C83C1B27"><enum>(C)</enum><text>by inserting at the end the following new paragraphs:</text> <quoted-block id="H3720082F13894F58A83FDB7FA21BFD03" style="OLC"> <paragraph id="H9211AA10642D477EBDF8F127CE64675D"><enum>(4)</enum><header>Restriction of asset growth</header><text>A regulated entity that is classified as undercapitalized shall not permit 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 unless—</text> <subparagraph id="H9FE67271CC8446F9A52E6884906543A9"><enum>(A)</enum><text>the Director has accepted the capital restoration plan of the regulated entity;</text> </subparagraph><subparagraph id="HF3977783C55747DAB683E806A620B996"><enum>(B)</enum><text>any increase in total assets is consistent with the plan; and</text> </subparagraph><subparagraph id="HB135830CC8024D5FB55645DDCD4FFB3"><enum>(C)</enum><text>the ratio of total capital to assets for the regulated entity increases during the calendar quarter at a rate sufficient to enable the entity to become adequately capitalized within a reasonable time.</text> </subparagraph></paragraph><paragraph id="H7AF905F5BC56457E86C89E8754E50386"><enum>(5)</enum><header>Prior approval of acquisitions, new products, and new activities</header><text>A regulated entity that is classified as undercapitalized shall not, directly or indirectly, acquire any interest in any entity or initially offer any new product (as such term is defined in section 1321(f)) or engage in any new activity, service, undertaking, or offering unless—</text> <subparagraph id="H3861E5E63FDC42CD8811537E441D1499"><enum>(A)</enum><text>the Director has accepted the capital restoration plan of the regulated entity, the 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="HF7CE639B85724662A3A7FEB620FF771D"><enum>(B)</enum><text>the Director determines that the proposed action will further the purpose of this section.</text> </subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H0C25A065135A4AE39DAAD7D579ED4E67"><enum>(3)</enum><text>in the subsection heading for subsection (b), by striking <quote><header-in-text level="subsection">From Undercapitalized to Significantly Undercapitalized</header-in-text></quote>; and</text> </paragraph><paragraph id="HB788DF22F59F4F249B5789C6405FB875"><enum>(4)</enum><text>by striking subsection (c) and inserting the following new subsection:</text> <quoted-block id="H879514B0FE964C6A000074001CD85279" style="OLC"> <subsection id="H81831ED3223B431D00CF4B1418004BA8"><enum>(c)</enum><header>Other Discretionary Safeguards</header><text>The Director may take, with respect to a regulated entity that is classified as undercapitalized, any of the actions authorized to be taken under section 1366 with respect to a regulated entity that is classified as significantly undercapitalized, 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="H4EAC4DDA2A3A4C01913FB1D2B8D6D1C"><enum>1047.</enum><header>Supervisory actions applicable to significantly undercapitalized regulated entities</header><text display-inline="no-display-inline">Section 1366 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>) is amended—</text> <paragraph id="H962ED524AECE454B86AF688BDCF3D795"><enum>(1)</enum><text>in the section heading, by striking <quote><header-in-text>enterprises</header-in-text></quote> and inserting <quote><header-in-text>regulated entities</header-in-text></quote>;</text> </paragraph><paragraph id="H8F9BF1DF71AB49B7B150984FFA004752"><enum>(2)</enum><text>in subsection (a)(2)(A), by striking <quote>enterprise</quote> the last place such term appears;</text> </paragraph><paragraph id="HAC6A5477B74D41AE9D593C882812C1D5"><enum>(3)</enum><text>in subsection (b)—</text> <subparagraph id="H7AFBF1A86C914A0AA1BDA676AB1D24F1"><enum>(A)</enum><text display-inline="yes-display-inline">in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">Discretionary supervisory actions</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Specific actions</header-in-text></quote>.</text> </subparagraph><subparagraph id="HCFAD11895C844AE0897CE538C2918B5"><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, one or more</quote>;</text> </subparagraph><subparagraph id="HCF8A752516704F58B3B3E02BA17F5B59"><enum>(C)</enum><text>by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively;</text> </subparagraph><subparagraph id="H920891F407874F528572E708D4E0A683"><enum>(D)</enum><text>by inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H84497890AB8448519417278D6E9246FB" style="OLC"> <paragraph id="HD9E8113FBADC4809AB93047CE750DDC1"><enum>(5)</enum><header>Improvement of management</header><text>Take one or more of the following actions:</text> <subparagraph id="H8FB594AEACE847748600C4F3C7E86748"><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="H390B081D344B470D8B8CFEEA0211153D"><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 entity became undercapitalized. Dismissal under this subparagraph shall not be construed to be a removal pursuant to the Director’s enforcement powers provided in section 1377.</text> </subparagraph><subparagraph id="H46F37D10DDE54FF2B1F32578EA023F25"><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="H586DC35B68D2456A97EDDBA99F127CC4"><enum>(E)</enum><text>by inserting at the end the following new paragraph:</text> <quoted-block id="H0CB670F0384D4F1891E997407D6700F7" style="OLC"> <paragraph id="HB8CFE18E3FA449AC89B1B71BECBE004F"><enum>(8)</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 actions specified in this paragraph.</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H8217E660EF864FDC86C2CA8DDFF88695"><enum>(4)</enum><text>by redesignating subsection (c) as subsection (d); and</text> </paragraph><paragraph id="HBDA61A1B5B1E4798BB7059A849E3A0D5"><enum>(5)</enum><text>by inserting after subsection (b) the following new subsection:</text> <quoted-block id="HD9F5730997484981BE2E69A65E905871" style="OLC"> <subsection id="HEFCC9258A7474E5FBFD76F58B5271B2"><enum>(c)</enum><header>Restriction on Compensation of Executive Officers</header><text>A regulated entity that is classified as significantly undercapitalized may not, without prior written approval by the Director—</text> <paragraph id="H60764C54FEB744CCB43EABD8D2C19388"><enum>(1)</enum><text>pay any bonus to any executive officer; or</text> </paragraph><paragraph id="HA7D1802AADC141FFA0947708DB3B07E2"><enum>(2)</enum><text>provide compensation to any executive officer at a rate exceeding that officer’s average rate of compensation (excluding bonuses, stock options, and profit sharing) during the 12 calendar months preceding the calendar month in which the regulated entity became undercapitalized.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H9AD2A24B72404118A917E016876E257"><enum>1048.</enum><header>Authority over critically undercapitalized regulated entities</header> <subsection id="HFADB25AC3D84411D9DF823F9B1E7ED15"><enum>(a)</enum><header>In General</header><text>Section 1367 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<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 act-name="Housing and Community Development Act of 1992" id="HD30DD57749EF474C941CE9EDB0551DDE" style="OLC"> <section id="HC71C2BB2F9854987A0FE249250A47026"><enum>1367.</enum><header>Authority over critically undercapitalized regulated entities</header> <subsection id="H8CA02EF1C34843D289075ECC57C7ED1"><enum>(a)</enum><header>Appointment of Agency as Conservator or Receiver</header> <paragraph id="H4C43E1F242D043D49BB11E5CEC62A6EE"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of Federal or State law, if any of the grounds under paragraph (3) exist, at the discretion of the Director, the Director may establish a conservatorship or receivership, as appropriate, for the purpose of reorganizing, rehabilitating, or winding up the affairs of a regulated entity.</text> </paragraph><paragraph id="H3662DD50F7FF4514BBFB9000A2E71664"><enum>(2)</enum><header>Appointment</header><text>In any conservatorship or receivership established under this section, the Director shall appoint the Agency as conservator or receiver.</text> </paragraph><paragraph id="HDE4AE73CD2B74AA9BD26C0D535B5C2F"><enum>(3)</enum><header>Grounds for appointment</header><text>The grounds for appointing a conservator or receiver for a regulated entity are as follows:</text> <subparagraph id="HDEBDE49BF29343A08D01925D3B8353D3"><enum>(A)</enum><header>Assets insufficient for obligations</header><text>The assets of the regulated entity are less than the obligations of the regulated entity to its creditors and others.</text> </subparagraph><subparagraph id="H5C9D575A1AF3484BBF9728F19987A3A"><enum>(B)</enum><header>Substantial dissipation</header><text>Substantial dissipation of assets or earnings due to—</text> <clause id="HE7BAC6EEFFBF44668B2FAF277F6D00AB"><enum>(i)</enum><text>any violation of any provision of Federal or State law; or</text> </clause><clause id="HA4824AF537D5445EA7FDBF41CCCAE5A4"><enum>(ii)</enum><text>any unsafe or unsound practice.</text> </clause></subparagraph><subparagraph id="H6211C7C659EC4C158C8C33008BF06900"><enum>(C)</enum><header>Unsafe or unsound condition</header><text>An unsafe or unsound condition to transact business.</text> </subparagraph><subparagraph id="H4E830A539F114ADE8677B1BF155FDB10"><enum>(D)</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="H9712D118D1214A88973BEB8EFEC87226"><enum>(E)</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="HBB05657C0B3742319F8D015F9267CA9D"><enum>(F)</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="HF19F4EC2BCF440A9BED83DFEC05A42B"><enum>(G)</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="H1C8F3C538D074424BECF205FA31233DF"><enum>(H)</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="H23BEA02548AD43FFA8DD656B78E8913B"><enum>(i)</enum><text>cause insolvency or substantial dissipation of assets or earnings; or</text> </clause><clause id="H2AEE2C91893E43DD005715C44B2B19D8"><enum>(ii)</enum><text>weaken the condition of the regulated entity.</text> </clause></subparagraph><subparagraph id="H2D22E5CD4C78404FA313B59CE591D207"><enum>(I)</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="H75C050E1CA6246D2A7DC6150944B11D"><enum>(J)</enum><header>Undercapitalization</header><text>The regulated entity is undercapitalized or significantly undercapitalized (as defined in section 1364(a)(3) or in regulations issued pursuant to section 1364(b), as applicable), and—</text> <clause id="H82C8A982D46B4651A867B0FCC22600A4"><enum>(i)</enum><text>has no reasonable prospect of becoming adequately capitalized;</text> </clause><clause id="H6871BB03A7084101A76C004294E4B104"><enum>(ii)</enum><text>fails to become adequately capitalized, as required by—</text> <subclause id="H5C56ABE4BD734C8C951D3D8DF0034CA"><enum>(I)</enum><text>section 1365(a)(1) with respect to an undercapitalized regulated entity; or</text> </subclause><subclause id="HAA0064A686AD4CC3A65FC6D0EDFF297B"><enum>(II)</enum><text>section 1366(a)(1) with respect to a significantly undercapitalized regulated entity;</text> </subclause></clause><clause id="HAB834CB78EAD44BC81986D4800E73B7E"><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="HC823E772FF8E4BA8BAD268BE144971DB"><enum>(iv)</enum><text>materially fails to implement a capital restoration plan submitted and accepted under section 1369C.</text> </clause></subparagraph><subparagraph id="H481B502724454B3BAEDDB9136CF21C5C"><enum>(K)</enum><header>Critical undercapitalization</header><text>The regulated entity is critically undercapitalized, as defined in section 1364(a)(4) or in regulations issued pursuant to section 1364(b), as applicable.</text> </subparagraph><subparagraph id="H4257EBCDF73D4635B037BDADCD7FA144"><enum>(L)</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="H5C76AFF149C64954B9EED7C08607EDBE"><enum>(4)</enum><header>Mandatory receivership</header> <subparagraph id="H55EF527CCD014B099D906DDB9024AF86"><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="H4EF7C5440AE1413C90C8F04CB57D84E"><enum>(i)</enum><text>the assets of the regulated entity are, and during the preceding 30 calendar days have been, less than the obligations of the regulated entity to its creditors and others; or</text> </clause><clause id="H92E6A197ADAE4626A38E603FC22220D8"><enum>(ii)</enum><text>the regulated entity is not, and during the preceding 30 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="H0EA63C47EE6B458CA971B905630082FD"><enum>(B)</enum><header>Periodic determination required for critically under capitalized 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="HD56A0155603742B69C73E2B5A2B9AAEB"><enum>(i)</enum><text>not later than 30 calendar days after the regulated entity initially becomes critically undercapitalized; and</text> </clause><clause id="H95B1650700744143A213002D0073B365"><enum>(ii)</enum><text>at least once during each succeeding 30-calendar day period.</text> </clause></subparagraph><subparagraph id="H7C5EC02FCFD2469480F99F423EA39B45"><enum>(C)</enum><header>Determination not required if receivership already in place</header><text>Subparagraph (B) shall 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="H1B27A4DBC53747C585E27D3EE3106CAF"><enum>(D)</enum><header>Receivership terminates conservatorship</header><text display-inline="yes-display-inline">The appointment under this section of the Agency as receiver of a regulated entity shall immediately terminate any conservatorship established under this title for the regulated entity.</text> </subparagraph></paragraph><paragraph id="H80381DE677B646839098F9A3E0192020"><enum>(5)</enum><header>Judicial review</header> <subparagraph id="H3121E3DD3C21406799A3965D92542BE"><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 principal place of business 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="H7AF71B19242F49570017ABFD4507D76"><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="H96E460A5A04B450FBFA89777E1C5E5A2"><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="HEE7802BF293448229C3EEDA579053241"><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="HF656FC5BAB5F460D8F5872ACA1D59425"><enum>(b)</enum><header>Powers and Duties of the Agency as Conservator or Receiver</header> <paragraph id="H266DD419C7B548EC835937F10012DE59"><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="H509D86902C3242B2AD996470D545F879"><enum>(2)</enum><header>General powers</header> <subparagraph id="HF3E00BBCFB4D492A8964426C9ED6C326"><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="HEC1EA145DF694E72885BC71F2270CDD1"><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="H2E1F07BA285F4B05AA027BD31B7E0108"><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="H03089680695D4C1DA620D3202C87CCCF"><enum>(B)</enum><header>Operate the regulated entity</header><text>The Agency may, as conservator or receiver—</text> <clause id="H61DEA5C7BD774670B1F2C4AD2F2BE1C"><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="HAC50CF0E4C274882B6F57C79B93E00ED"><enum>(ii)</enum><text>collect all obligations and money due the regulated entity;</text> </clause><clause id="H65D8FCF4A8FA482C9873697F8C8593A5"><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; and</text> </clause><clause id="H0A4635CB8B7F48AEA7BC105FF162AE6C"><enum>(iv)</enum><text>preserve and conserve the assets and property of such regulated entity.</text> </clause></subparagraph><subparagraph id="H07671C63F66E4E2299DF681286B839B"><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="HDAF5DAE92DBE40BC9235FAF02E7C2D84"><enum>(D)</enum><header>Powers as conservator</header><text>The Agency may, as conservator, take such action as may be—</text> <clause id="H4D701ED26DC74AB482007FB9F5A71E70"><enum>(i)</enum><text>necessary to put the regulated entity in a sound and solvent condition; and</text> </clause><clause id="H09332B928F954E1DA4DA000096DD0867"><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, including, if two or more Federal home loan banks have been placed in conservatorship contemporaneously, merging two or more such banks into a single Federal home loan bank.</text> </clause></subparagraph><subparagraph id="HAB21B7FABAD34C8DB1E9E2E7D4AAD25"><enum>(E)</enum><header>Additional powers as receiver</header><text>The Agency may, as receiver, place the regulated entity in liquidation and proceed to realize upon the assets of the regulated entity, having due regard to the conditions of the housing finance market.</text> </subparagraph><subparagraph id="H31777D97B82A48BCBD6ED1D5C100A5FE"><enum>(F)</enum><header>Organization of new regulated entities</header><text>The Agency may, as receiver, organize a successor regulated entity that will operate pursuant to subsection (i).</text> </subparagraph><subparagraph id="H309D2FEB145A4E1A89C3F4F4E6794EF"><enum>(G)</enum><header>Transfer of assets and liabilities</header><text>The Agency may, as conservator or receiver, transfer any asset or liability of the regulated entity in default without any approval, assignment, or consent with respect to such transfer. Any Federal home loan bank may, with the approval of the Agency, acquire the assets of any Bank in conservatorship or receivership, and assume the liabilities of such Bank.</text> </subparagraph><subparagraph id="HCA992FF6DF804CE8970063C57CFC9B99"><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 in accordance with the prescriptions and limitations of this section.</text> </subparagraph><subparagraph id="H62D9738B35CD468F814E1123C125B299"><enum>(I)</enum><header>Subpoena authority</header> <clause id="H8CEDD86C45CD45EBAC89B808C2FADF95"><enum>(i)</enum><header>In general</header> <subclause id="HEC02944DF6974B098199D319B71E0206"><enum>(I)</enum><header>In general</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="H648BABEF42F34FA88368463C54B87BF2"><enum>(II)</enum><header>Applicability of law</header><text>The provisions of section 1348 shall apply with respect to the exercise of any power exercised under this subparagraph in the same manner as such provisions apply under that section.</text> </subclause></clause><clause id="H9FBC94D9395B4F93873DA6A803150066"><enum>(ii)</enum><header>Authority of director</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="H4156AFBAA2594AD2AC1E58ED81B73800"><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 1379D.</text> </clause></subparagraph><subparagraph id="H64FE2A3C56914D8A9122A3A9BC942DC2"><enum>(J)</enum><header>Contracting for services</header><text>The Agency may, as conservator or receiver, provide by contract for the carrying out of any of its functions, activities, actions, or duties as conservator or receiver.</text> </subparagraph><subparagraph id="H28E5DE3C37694F6F9FA76BA9B85300CE"><enum>(K)</enum><header>Incidental powers</header><text>The Agency may, as conservator or receiver—</text> <clause id="HE5F48C12FF3C41D9B1A5D300A198D576"><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="HAB4388E413D649CF99F9DAFC45B31FF"><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></paragraph><paragraph id="H377B3249A673428F8D7F6E79CF29A648"><enum>(3)</enum><header>Authority of receiver to determine claims</header> <subparagraph id="HBD8A363886044023829B5D9E41B02C2C"><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="HA0D7D31A85BC4623A5132E586FAD1D4"><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="HE7C872EDE7394CDBB06F85CD4F3E46A"><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 publication of such notice; and</text> </clause><clause id="H1979B339E31641ED82F6574F4CED4D06"><enum>(ii)</enum><text>republish such notice approximately 1 month and 2 months, respectively, after the publication under clause (i).</text> </clause></subparagraph><subparagraph id="HE98274E0702A4B199985612DB3FE1957"><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="H80D17E6032944485A4A2EA00BA608A6"><enum>(i)</enum><text>at the last address of the creditor appearing in such books; or</text> </clause><clause id="HC229DDA333F3415198F268728B57A5C1"><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="HF33DB55A8D4B48A4BDD3FA82D64450AA"><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="HAF690768758B4CAAAC82F554DE147CC8"><enum>(5)</enum><header>Procedures for determination of claims</header> <subparagraph id="H0746F1F4C9CD479EB49BD716A8C5591F"><enum>(A)</enum><header>Determination period</header> <clause id="HBC0297F75A384FF3AFA43441A6A970B5"><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="H2787E47EFC88477AA0868EFB827F0472"><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="H88268FFC2897468D8FC027349C233E07"><enum>(iii)</enum><header>Mailing of notice sufficient</header><text>The notification 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="HDEFD52621A8946759500ADE9F589BDBF"><enum>(I)</enum><text>on the books of the regulated entity;</text> </subclause><subclause id="H68081EB2920B4CC1B25FE51F927309E2"><enum>(II)</enum><text>in the claim filed by the claimant; or</text> </subclause><subclause id="HAD13D384B9294C61A8F6B06EE9F2A584"><enum>(III)</enum><text>in documents submitted in proof of the claim.</text> </subclause></clause><clause id="H95A61BEB36F044D493679BD02B4E0081"><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="HD17BE5B87C074DFFAD069D245FAD38F4"><enum>(I)</enum><text>a statement of each reason for the disallowance; and</text> </subclause><subclause id="H3739625C71774117ACDF113E0052AB85"><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="H3D61174A50CF4CE3936280970501BEE9"><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), or the date specified in the notice required under paragraph (3)(C), which is proved to the satisfaction of the receiver.</text> </subparagraph><subparagraph id="H202F32C56BCC4A3E87BCA89092AA68E5"><enum>(C)</enum><header>Disallowance of claims filed after end of 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="H503A5747A2884993ABB9F168A57F33F9"><enum>(D)</enum><header>Authority to disallow claims</header> <clause id="HDE209ADBB95A454FAF7517B67B6E77A2"><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="H3DC41179BB5F46EFBA53CB286114C3C"><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="H51C622E75F524A6ABD5CBF9523BBDA61"><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="H9BAD085B6E0F40A1B94CBA6F6964DE61"><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="HA0739F0237554BD198250000D96D15F8"><enum>(iii)</enum><header>Exceptions</header><text>No provision of this paragraph shall apply with respect to any extension of credit from any Federal Reserve Bank, Federal home loan bank, or the Treasury of the United States.</text> </clause></subparagraph><subparagraph id="HDAAB59D6EC0E4FA8B9FF0018F9B3100"><enum>(E)</enum><header>No judicial review of determination pursuant to subparagraph <enum-in-header>(D)</enum-in-header></header><text>No court may review the determination of the Agency under subparagraph (D) to disallow a claim. This subparagraph shall not affect the authority of a claimant to obtain de novo judicial review of a claim pursuant to paragraph (6).</text> </subparagraph><subparagraph id="H49E8740A73D645CA8E7C136CD7CB9F59"><enum>(F)</enum><header>Legal effect of filing</header> <clause id="H824DBB88EA254AFCBCF427F38E121F12"><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="H277F0C7E705A470ABC006D59995319CE"><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="HA3C61B470DF440979053E547566F3309"><enum>(6)</enum><header>Provision for judicial determination of claims</header> <subparagraph id="H2C9AC33C9DEE4949B778D31B7EEF408F"><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="H52F5B7D6A8644B5693EE79E8379E1D97"><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="H4F7D47AAA30E441F9429872E5FDEFAC"><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="H7AD5754BF8974BDF92130332433B00EC"><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="HDA346B47A917456D88C6D3D889039F8D"><enum>(7)</enum><header>Review of claims</header> <subparagraph id="HF920CDD3CC9E44898B4B03B2D37038A9"><enum>(A)</enum><header>Other review procedures</header> <clause id="H2EE4321F3F5448D6A49DF9ACB7E458A0"><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="H3AEDD9E55D6C42C7B301AC51003CFE02"><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="H65B36B93C4F64A10B1C0279DB7A27576"><enum>(iii)</enum><header>Voluntary binding or nonbinding procedures</header><text>The Agency may establish both binding and nonbinding processes, 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="H160D9168896344B295D0BF80389CCD41"><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="HED7289D6BDA04C5AA259E88F0008A5C5"><enum>(8)</enum><header>Expedited determination of claims</header> <subparagraph id="H0C6F860143B848B29812F97CC09CE1FB"><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="H7737FA833ABA41409CEF958748935C51"><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="H2E8230D5A84049ACB925DB2602CDE1DC"><enum>(ii)</enum><text>allege that irreparable injury will occur if the routine claims procedure is followed.</text> </clause></subparagraph><subparagraph id="H9A1AC616481F43A1BAE6BBD3AA869F10"><enum>(B)</enum><header>Determination period</header><text>Before the end of the 90-day period beginning on the date any claim is filed in accordance with the procedures established under subparagraph (A), the Director shall—</text> <clause id="H41FA594BB0D14410A81022B1EC4F215B"><enum>(i)</enum><text>determine—</text> <subclause id="H5A5DB32269834E08ACCD392CA347E7E1"><enum>(I)</enum><text>whether to allow or disallow such claim; or</text> </subclause><subclause id="H7CA2D808229E4FA4A909A185E75406C9"><enum>(II)</enum><text>whether such claim should be determined pursuant to the procedures established under paragraph (5); and</text> </subclause></clause><clause id="H4B0C7898982D479FA74ECEACF2334957"><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="H3AB2D5823A974018833420FEAB176F6E"><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 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="H013BBC484CB3400C9C426386F748F71C"><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="HC39CE16BBAC44CE5B4B976B8C533CEF1"><enum>(ii)</enum><text>the date the Agency denies the claim.</text> </clause></subparagraph><subparagraph id="H1655C2BC2CEA4D45A3AE7FBED9628178"><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="H101B3215B1B2467291F8182B801500DC"><enum>(E)</enum><header>Legal effect of filing</header> <clause id="H51E424B257D748A1878DE1E830A75400"><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="HD1113C4EE4224855AB706E5925AB864E"><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="HD8CF2084549642CF98556493FE87376F"><enum>(9)</enum><header>Payment of claims</header> <subparagraph id="H3638AAD31A5C42D3871993FFBA1F952D"><enum>(A)</enum><header>In general</header><text>The receiver may, in the discretion of the receiver, and to the extent 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="H58244F6AACC6493FBD5468FCE8788FAC"><enum>(i)</enum><text>allowed by the receiver;</text> </clause><clause id="HBA89B20AFBBE4B8400EB3E6E23282D11"><enum>(ii)</enum><text>approved by the Agency pursuant to a final determination pursuant to paragraph (7) or (8); or</text> </clause><clause id="H0EA831327AC048F79F2C86F2AF162104"><enum>(iii)</enum><text>determined by the final judgment of any court of competent jurisdiction.</text> </clause></subparagraph><subparagraph id="HEED2B878E66D453694599FAAB16606D"><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 official of the regulated entity, except that such requirements for qualified financial contracts shall be applied in a manner consistent with reasonable business trading practices in the financial contracts market.</text> </subparagraph><subparagraph id="H7811128B7E78484CB3BDC8D7B872CCED"><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="HB717BCABB2B541448D4BDDFC8056D044"><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 regulated entities following satisfaction by the receiver of the principal amount of all creditor claims.</text> </subparagraph></paragraph><paragraph id="H8DDF5315C6754559AAB979CFB6065E3D"><enum>(10)</enum><header>Suspension of legal actions</header> <subparagraph id="HBCAE429665BB4254B10064D301EC5061"><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="H411D9F42AAC64101869CE94F6F5E6F38"><enum>(i)</enum><text>45 days, in the case of any conservator; and</text> </clause><clause id="H3144DA3FFA374079AFAC70AF4052C8CC"><enum>(ii)</enum><text>90 days, in the case of any receiver.</text> </clause></subparagraph><subparagraph id="HD68CC3DFBB3A429A81F6B36761CDE00"><enum>(B)</enum><header>Grant of stay by all courts required</header><text>Upon receipt of a request by any 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="HDB5999CFE3CA480C9840D427EF2407DF"><enum>(11)</enum><header>Additional rights and duties</header> <subparagraph id="HF947233716924385A96994D6061000BA"><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="H92C1137992F9448EBDCE8939D37813A7"><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 shall—</text> <clause id="H6B9E91B22BB8462F91A08891CA490050"><enum>(i)</enum><text>have all 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="H091C846F1BBA49AFA1A13E89925CE43D"><enum>(ii)</enum><text>not be required to post any bond in order to pursue such remedies.</text> </clause></subparagraph><subparagraph id="HE9982ACF453C43D2B432CDEA716DAA4D"><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.</text> </subparagraph><subparagraph id="HBD08FBFD1AFC4B559E7B4EBAE057C7C"><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="HC94BABDF61F546358CF4E7F5FD005057"><enum>(i)</enum><text>any claim or action for payment from, or any action seeking a determination of rights with respect to, the assets of any regulated entity for which the Agency has been appointed receiver; or</text> </clause><clause id="H9BE933FB76C447419831C2B200800659"><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="H6B6C001CC31841C09B8BB202C79E27EE"><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 maintains stability in the housing finance markets and, to the extent consistent with that goal—</text> <clause id="H1CFF4E93AE564F75A7601B310139A8A0"><enum>(i)</enum><text>maximizes the net present value return from the sale or disposition of such assets;</text> </clause><clause id="H92EA822F23634C7D993F709E4743E4EE"><enum>(ii)</enum><text>minimizes the amount of any loss realized in the resolution of cases; and</text> </clause><clause id="H343CF414C18540769D8700FEC15F1EB0"><enum>(iii)</enum><text>ensures adequate competition and fair and consistent treatment of offerors.</text> </clause></subparagraph></paragraph><paragraph id="H32C9EEF9C868449E9B24BC5EB7DF7E3D"><enum>(12)</enum><header>Statute of limitations for actions brought by conservator or receiver</header> <subparagraph id="HEBB268ACC62241DBA45EB5759EE1E367"><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="H21893CC9857E4D90AAD800D5F290581B"><enum>(i)</enum><text>in the case of any contract claim, the longer of—</text> <subclause id="HAC5BF8BFB5C1464AB39FDAEFBF72E3BE"><enum>(I)</enum><text>the 6-year period beginning on the date the claim accrues; or</text> </subclause><subclause id="H78848F09DB90468E9D4EC0A118703709"><enum>(II)</enum><text>the period applicable under State law; and</text> </subclause></clause><clause id="H4D14174D8B4541E5AB00F686106BD445"><enum>(ii)</enum><text>in the case of any tort claim, the longer of—</text> <subclause id="H3DA7B1C7EEFF431DA5EA21AF809D7030"><enum>(I)</enum><text>the 3-year period beginning on the date the claim accrues; or</text> </subclause><subclause id="H4B45F3B42B6B4183B7A3D3B5732C145C"><enum>(II)</enum><text>the period applicable under State law.</text> </subclause></clause></subparagraph><subparagraph id="H1A5F71B88A4349BDA076234040345B90"><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="H3BA2C010E0AE42DC0061B9211819E12B"><enum>(i)</enum><text>the date of the appointment of the Agency as conservator or receiver; or</text> </clause><clause id="H033FEA6825AA4A589F514E00B16C07D0"><enum>(ii)</enum><text>the date on which the cause of action accrues.</text> </clause></subparagraph></paragraph><paragraph id="H8EBA4FB8BC38477AB39287D64F158754"><enum>(13)</enum><header>Revival of expired state causes of action</header> <subparagraph id="H33AC65F8BEB4491CA4185EAED05DBC97"><enum>(A)</enum><header>In general</header><text>In the case of any tort claim described under subparagraph (B) 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 limitation applicable under State law.</text> </subparagraph><subparagraph id="H05829512FCC6467B8B6572E3A08F96E3"><enum>(B)</enum><header>Claims described</header><text>A tort claim referred to under subparagraph (A) 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="H396B2565BAD44173AEABF3054E531CC1"><enum>(14)</enum><header>Accounting and recordkeeping requirements</header> <subparagraph id="H9D10286FB9C04E3B806EC668477F535F"><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="HDE998074AECE42AAA512B4493420C3C7"><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="H8684C9E9543748E4ACFD46448BD192"><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="H8C5F88C077DD48598FAC8E55E419B4A9"><enum>(D)</enum><header>Recordkeeping requirement</header><text>After the end of the 6-year period beginning on the date that 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="HB3BAAEB8F4564C6C92D99549A53B1499"><enum>(15)</enum><header>Fraudulent transfers</header> <subparagraph id="H00F18AA7197B4BC38DD300D43F7E6EF9"><enum>(A)</enum><header>In general</header><text>The Agency, as conservator or receiver, may avoid a transfer of any interest of a regulated entity-affiliated party, or any person who the conservator or receiver determines is 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="H8E869F49FB3541649443DC84002678A9"><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="HBA36842D4D914DE1A73D24DAD66E73C1"><enum>(i)</enum><text>the initial transferee of such transfer or the regulated entity-affiliated party or person for whose benefit such transfer was made; or</text> </clause><clause id="H6B41FA3930E04A1E9DCA9E91000912E0"><enum>(ii)</enum><text>any immediate or mediate transferee of any such initial transferee.</text> </clause></subparagraph><subparagraph id="HCEC1E466B8344469BD7E40321121E500"><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="H1ADFFB1A8DFE4D1D984527849E3775F1"><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="H93D4FCB99CDE405492957F8BDB974E90"><enum>(ii)</enum><text>any immediate or mediate good faith transferee of such transferee.</text> </clause></subparagraph><subparagraph id="HB403E79097DC4658871D77368BEB600"><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="HCD26EA7B39A24F4BB04CA4727BC37425"><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 Agency or such conservator under the control of the court, and appointing a trustee to hold such assets.</text> </paragraph><paragraph id="H1AA694E65D8D4C1DBBA741108EC74311"><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="H83575F4DA8824E5FBF131E88F9EF15E"><enum>(18)</enum><header>Treatment of claims arising from breach of contracts executed by the receiver or conservator</header> <subparagraph id="H915F5C23A49142D1ACD1FD30D2C1DDEC"><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 a receiver or conservator for the breach of an agreement executed or approved in writing by such receiver or conservator after the date of its appointment, shall be paid as an administrative expense of the receiver or conservator.</text> </subparagraph><subparagraph id="HEB1920D0BE4544CF839EF2D6D73C5284"><enum>(B)</enum><header>No limitation of power</header><text>Nothing in this paragraph shall be construed to limit the power of a receiver or conservator to exercise any rights under contract or law, including to terminate, breach, cancel, or otherwise discontinue such agreement.</text> </subparagraph></paragraph><paragraph id="HFFF4EAF26927439EB49B334755C12C64"><enum>(19)</enum><header>General exceptions</header> <subparagraph id="H964DC179AD7F4084848B89EA49F607BF"><enum>(A)</enum><header>Limitations</header><text>The rights of a 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="H2B0D8125C3EB48FD95BA67FCA755C506"><enum>(B)</enum><header>Mortgages held in trust</header> <clause id="H8C9FAAC0DE7A4C418209067B004BC594"><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 persons other than the regulated entity shall not be available to satisfy the claims of creditors generally.</text> </clause><clause id="HA8ABA1FDC42A4D51A928BF49A88B4D52"><enum>(ii)</enum><header>Holding of mortgages</header><text>Any mortgage, pool of mortgages, or interest in a pool of mortgages, described under 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 a pool of mortgages in accordance with the terms of the agreement creating such trust, custodial, or other agency arrangement.</text> </clause><clause id="HD693452E8612492EBC68013E581D07DC"><enum>(iii)</enum><header>Liability of receiver</header><text>The liability of a 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 set forth in the regulations of the Director.</text> </clause></subparagraph></paragraph></subsection><subsection id="HDB6024DF9FA5434AAFE94F75387CD7DA"><enum>(c)</enum><header>Priority of Expenses and Unsecured Claims</header> <paragraph id="H6FC7AC4F639741B8007BDAAF81ACD475"><enum>(1)</enum><header>In general</header><text>Unsecured claims against a regulated entity, or a receiver, that are proven to the satisfaction of the receiver shall have priority in the following order:</text> <subparagraph id="H96FC531A35324349A4A5EF71FAF335DB"><enum>(A)</enum><text>Administrative expenses of the receiver.</text> </subparagraph><subparagraph id="H5212636DF34F4081B64D3978CC4DF"><enum>(B)</enum><text>Any other general or senior liability of the regulated entity and claims of other Federal home loan banks arising from their payment obligations (including joint and several payment obligations).</text> </subparagraph><subparagraph id="H9C42A628121D4270BF70B3B30066A100"><enum>(C)</enum><text>Any obligation subordinated to general creditors.</text> </subparagraph><subparagraph id="H8C8B4983FE5F4A16A8CF6F9E75E3E86F"><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="H5853E1F83F5446859112BAF9B880394"><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 Agency may make such other payments to creditors necessary to maximize the present value return from the sale or disposition or such regulated entity’s assets or to minimize the amount of any loss realized in the resolution of cases so long as all creditors similarly situated receive not less than the amount provided under subsection (e)(2).</text> </paragraph><paragraph id="HFE190EC04F4B424A99AE151D22075876"><enum>(3)</enum><header>Definition</header><text>The term <term>administrative expenses of the receiver</term> shall include the actual, necessary costs and expenses incurred by the receiver in preserving the assets of the regulated entity or liquidating or otherwise resolving the affairs of the regulated entity. Such expenses shall include obligations that are incurred by the receiver after appointment as receiver that the Director determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity.</text> </paragraph></subsection><subsection id="H34F4A9BFE93E47DDBFD0CC165801C9CB"><enum>(d)</enum><header>Provisions Relating to Contracts Entered Into Before Appointment of Conservator or Receiver</header> <paragraph id="HE2E59C0C38C94B4DB0394CCA7D4B405F"><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="HB0B695A93A5C4FF9926FF3E5B0B1F19"><enum>(A)</enum><text>to which such regulated entity is a party;</text> </subparagraph><subparagraph id="HC37AF1B74E03414A944B6B5854C225D"><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="H1E33CE37C4CB416EA925011146D38B8E"><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="H11CEC72D9BE245398BBDADB475AD589B"><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="HB0919A22247040B1A1D3AFD353FCBDC3"><enum>(3)</enum><header>Claims for damages for repudiation</header> <subparagraph id="HBC15461ABB4F4B22BD494341E1B6D9FE"><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="H0EAF373C7F174823A0B26900B733FC8"><enum>(i)</enum><text>limited to actual direct compensatory damages; and</text> </clause><clause id="H87FB9BB409684E4DA01CC645AFB02510"><enum>(ii)</enum><text>determined as of—</text> <subclause id="HE5AAD54A51204DAF932B6243DD2FDD59"><enum>(I)</enum><text>the date of the appointment of the conservator or receiver; or</text> </subclause><subclause id="H13A94C7ABBBE45D5A22597DCFF6823E6"><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="H1333555B291A48848000F158CB490048"><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="H2AA55D85CFE74934B1E2A2AB00EA0069"><enum>(i)</enum><text>punitive or exemplary damages;</text> </clause><clause id="H6F0D70035EC84710BA2D3C2E08A6FDA9"><enum>(ii)</enum><text>damages for lost profits or opportunity; or</text> </clause><clause id="HFB0535E6BAF34DE899A35CD7468919C5"><enum>(iii)</enum><text>damages for pain and suffering.</text> </clause></subparagraph><subparagraph id="H346428719F5247C8B4C6C8CB899876FB"><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="HF57C8020019241FD91B6B1E304CE6524"><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="H8F10FC2B7E074B1D828704ED7918F56D"><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="HBB5EC5C273804FC8BD97FD4DD579AC72"><enum>(4)</enum><header>Leases under which the regulated entity is the lessee</header> <subparagraph id="H5EC63257995A4C31A2DD8CF963621E"><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="HE50A318312F947EFBB5600FEF3AC0518"><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="H0F9BB37C1A314C3B9BD57D77A6786EED"><enum>(i)</enum><text>be entitled to the contractual rent accruing before the later of the date—</text> <subclause id="H2F462AC886674E1CB2D46F2217B34F17"><enum>(I)</enum><text>the notice of disaffirmance or repudiation is mailed; or</text> </subclause><subclause id="H2048C9CD405A4238B200295037320990"><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="H3DD3005CED334E28B4F3D74C395D16FF"><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="H6155D5F21A434DFBBD8E47CB1A6C322"><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="H90C74398F00E45C69DDFE1B6CF679D7"><enum>(5)</enum><header>Leases under which the regulated entity is the lessor</header> <subparagraph id="HC7F9E818ED63490800FA0340A0A5C3E1"><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="H30F4BCE92168475FA2F8B4814B63C727"><enum>(i)</enum><text>treat the lease as terminated by such repudiation; or</text> </clause><clause id="H0FF799DC61DB40C593553D9800C512AF"><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="H35FC6CA9E26040B2900294A1FF776522"><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 such subparagraph—</text> <clause id="H712B65B4FC1045FAA1DF879EAFF38B6"><enum>(i)</enum><text>the lessee—</text> <subclause id="H8C6EAC8858C144E800F7F6F7DC54C80"><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="HFE843C44B9A54ED7B357758ED7CCA69"><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="H4F5AE92620EA4CCE88239023E583967E"><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="H49CF6C9F02164E479B4704FF862B51C1"><enum>(6)</enum><header>Contracts for the sale of real property</header> <subparagraph id="H05C65CF5B4484389928299C2772D5500"><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="H81085C2F0EEB4ADEAA00804BC1DA3D93"><enum>(i)</enum><text>treat the contract as terminated by such repudiation; or</text> </clause><clause id="H6219A84CA8574994B2C9609DF91B14B4"><enum>(ii)</enum><text>remain in possession of such real property.</text> </clause></subparagraph><subparagraph id="HCBCB781C2F3A4D84AFF0236473FEF7BA"><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 such subparagraph—</text> <clause id="H4AF02F24E5584788BE4F82FE40ED12F"><enum>(i)</enum><text>the purchaser—</text> <subclause id="H6DC5706163974DEBB786A53D305D7756"><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="H969FDC243E9A419900C25C113B532CAD"><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="HDD54BFFCA90B427C8B7041AC13B8EC2B"><enum>(ii)</enum><text>the conservator or receiver shall—</text> <subclause id="H3D34E98FFDF74B49AD4F49C46E1556AC"><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="H2BD2283080CD475CA7F2E1C881E8F83"><enum>(II)</enum><text>deliver title to the purchaser in accordance with the provisions of the contract; and</text> </subclause><subclause id="H178C420F136245959C202EF942002333"><enum>(III)</enum><text>have no obligation under the contract other than the performance required under subclause (II).</text> </subclause></clause></subparagraph><subparagraph id="HE44F4653C19842658842F007217B755F"><enum>(C)</enum><header>Assignment and sale allowed</header> <clause id="H2EC02CAC495D4648BED8A428AF804600"><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="H9A1F998FA9E54FEAAA2029E51E21425C"><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="HAE1FCBF6E6BB4010004D9E1200A202C7"><enum>(7)</enum><header>Provisions applicable to service contracts</header> <subparagraph id="HA1ED0348557841E9B8D7395726E0C1A2"><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 the receiver shall be—</text> <clause id="H013561DD5D204ADC8691CA00B595C1EA"><enum>(i)</enum><text>a claim to be paid in accordance with subsections (b) and (e); and</text> </clause><clause id="H4EA7061F3D284F6594991E8750DF06D4"><enum>(ii)</enum><text>deemed to have arisen as of the date the conservator or receiver was appointed.</text> </clause></subparagraph><subparagraph id="HFD618CC4A7B74FA786A0E5EF42687EBC"><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="HC8F6FC9471B24C0F93B3EE28CCD68E8F"><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="HEA2F36350E8A4E0C9C9300242DA16940"><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="H7E98AA27C8964AE6A1E358CFB786A01D"><enum>(C)</enum><header>Acceptance of performance no bar to subsequent repudiation</header><text>The acceptance by any 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="H6E6E3C86D8C042D58EFDF416DBD0586"><enum>(8)</enum><header>Certain qualified financial contracts</header> <subparagraph id="H52909737F8D6438DB9683D794FB0E845"><enum>(A)</enum><header>Rights of parties to contracts</header><text>Subject to paragraphs (9) and (10) and notwithstanding any other provision of this Act, any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—</text> <clause id="H6C46F11BB54F49A1A6147185A379C4D7"><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 that arises upon the appointment of the Agency as receiver for such regulated entity at any time after such appointment;</text> </clause><clause id="H32A62FA4B96C4657A7812C591804B3C8"><enum>(ii)</enum><text>any right under any security agreement or arrangement or other credit enhancement relating to one or more qualified financial contracts described in clause (i); or</text> </clause><clause id="HBF03963CA2144F73AD53CD47CF98BCA2"><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="HB2442B020E3841E799B4C04EC795E84"><enum>(B)</enum><header>Applicability of other provisions</header><text>Paragraph (10) of subsection (b) 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="H21487CB15D2F4A4EABBAF00F7126C60"><enum>(C)</enum><header>Certain transfers not avoidable</header> <clause id="H4E742F4F3C074778A414FAE8DBC3B600"><enum>(i)</enum><header>In general</header><text>Notwithstanding paragraph (11) or any other Federal or State laws 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="H00F96FA71A244B03BC92E59D3DB3EF06"><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="HC4570424C3CA4DC6B25DA26615005870"><enum>(D)</enum><header>Certain contracts and agreements defined</header><text>In this subsection:</text> <clause id="HDF6E1E25F15C4462B042243001E0F64B"><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="H7D3BC513383C43F68CFC9F8C13247908"><enum>(ii)</enum><header>Securities contract</header><text>The term <term>securities contract</term>—</text> <subclause id="HA6416557BA1245F19F8324EC9274C9A5"><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="H8CBB4EAD559D471D8CC50020A9AE30C4"><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="HFE8ED1D0DCFF4A6683558712119C7E5C"><enum>(III)</enum><text>means any option entered into on a national securities exchange relating to foreign currencies;</text> </subclause><subclause id="H2A3B70386DEA4AB7A103A3C7C82CBE54"><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="H3DAF8D1ACEB14A9494AF01547EFA96B3"><enum>(V)</enum><text>means any margin loan;</text> </subclause><subclause id="H5C9E9CFD4BEA403F9E82FC8064005574"><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="HD1F7495EB4C94FB7A0DC66FBCE27F38"><enum>(VII)</enum><text>means any combination of the agreements or transactions referred to in this clause;</text> </subclause><subclause id="H4D17704265D348878622E67F1E86166"><enum>(VIII)</enum><text>means any option to enter into any agreement or transaction referred to in this clause;</text> </subclause><subclause id="HCB4C508459474C8F8C9345FA05532BD0"><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="HD80F473AC2CC47368D8F9FEF4944D2C8"><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="H1C63BA35033F4E7988500048D9405800"><enum>(iii)</enum><header>Commodity contract</header><text>The term <term>commodity contract</term> means—</text> <subclause id="H2EAE41F6EEE64F65AD4710896EFAE736"><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="HE422DA0EDE11481898F36BF35200381E"><enum>(II)</enum><text>with respect to a foreign futures commission merchant, a foreign future;</text> </subclause><subclause id="HED22DC5F5A6843BA00C041D8C06FAC8"><enum>(III)</enum><text>with respect to a leverage transaction merchant, a leverage transaction;</text> </subclause><subclause id="HD332C2E70F1D49A78FA2CBF55DDBF997"><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="H2DE6B23962C44C36BBF35C477753C000"><enum>(V)</enum><text>with respect to a commodity options dealer, a commodity option;</text> </subclause><subclause id="H5B6823BB0B994F0286F11ED6D0E66DFF"><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="H9F1C38CF84404CE7B2FBAB6400C7D882"><enum>(VII)</enum><text>any combination of the agreements or transactions referred to in this clause;</text> </subclause><subclause id="HB40F520CAD6C416D84CA5201224BF55B"><enum>(VIII)</enum><text>any option to enter into any agreement or transaction referred to in this clause;</text> </subclause><subclause id="H77EE2AE9DCEF4621AFD6C057624E3DA9"><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="H6C6622242EF94824A57F9158A442D57C"><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="HE5D49CB70F0344E78114BCD3E8CC83AB"><enum>(iv)</enum><header>Forward contract</header><text>The term <term>forward contract</term> means—</text> <subclause id="HC2A231805ECC41A1B9367E760331D684"><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 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="H1EEB92C5D24A4B0090AF52A4F29F800"><enum>(II)</enum><text>any combination of agreements or transactions referred to in subclauses (I) and (III);</text> </subclause><subclause id="H556A3D9550944191B500A9118952F884"><enum>(III)</enum><text>any option to enter into any agreement or transaction referred to in subclause (I) or (II);</text> </subclause><subclause id="H8766E939D98D4C17B5A8DE428CD85CD2"><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="H85BD314F812247DBAF00076700D99246"><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="HC927F9BCFDD34719B2EC83B1BB762B2"><enum>(v)</enum><header>Repurchase agreement</header><text>The term <term>repurchase agreement</term> (which definition also applies to a reverse repurchase agreement)—</text> <subclause id="HD0CEBFC783E5455A96CFDE496F9D65A4"><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 the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>), mortgage loans, interests in mortgage-related securities or mortgage loans, eligible bankers’ acceptances, qualified foreign government securities 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="H1B949795E71F4636A86F27ED132307B1"><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="H04462576B09C466B003569B67E63C9AB"><enum>(III)</enum><text>means any combination of agreements or transactions referred to in subclauses (I) and (IV);</text> </subclause><subclause id="HDE6139066C8C45C3AD5D1B3361158104"><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="H09D9AA3F45D5427C9D00120283FB70F0"><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="H9FAC1D43F401454700EF4D59C0E622D2"><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><continuation-text continuation-text-level="clause">For purposes of this clause, the term <quote>qualified foreign government security</quote> means 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).</continuation-text></clause><clause id="H596B5B5AB66A420991C846E0BD139C6C"><enum>(vi)</enum><header>Swap agreement</header><text>The term <term>swap agreement</term> means—</text> <subclause id="H37E9151D562F41CBACF6B2C995FA5D5"><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="H4E0C5E6EB7F84916A5FBD9288F5DD4F"><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="HD33F4A2434F44DE9848FF9B4FB5D8BFD"><enum>(III)</enum><text>any combination of agreements or transactions referred to in this clause;</text> </subclause><subclause id="H94F784E633C54EC3AE621D2FE3EF9699"><enum>(IV)</enum><text>any option to enter into any agreement or transaction referred to in this clause;</text> </subclause><subclause id="HE4928A2341FF48A5954979A3DE4C9E3E"><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="H24C804AE283D45D09802FE9B314576F"><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><continuation-text continuation-text-level="clause">Such term is 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 swap agreement under any other statute, regulation, or rule, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Investor Protection Act of 1970, the Commodity Exchange Act, the Gramm-Leach-Bliley Act, and the Legal Certainty for Bank Products Act of 2000.</continuation-text></clause><clause id="HBC311ABE63C6472D9B084EAD791B190"><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="H4A0BB64BABE7427F82A9BF17B50893F9"><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 regulated entity’s equity of redemption.</text> </clause></subparagraph><subparagraph id="HB4D883AF5B894C23968CB0389F875660"><enum>(E)</enum><header>Certain protections in event of appointment of conservator</header><text>Notwithstanding any other provision of this Act (other than paragraph (13) of this subsection), any other Federal law, or the law of any State, no person shall be stayed or prohibited from exercising—</text> <clause id="H7A2F489A384F4394A5EF649C37B238D"><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="H37231EC563EB4F6B911C18AA3328F600"><enum>(ii)</enum><text>any right under any security agreement or arrangement or other credit enhancement relating to one or more such qualified financial contracts; or</text> </clause><clause id="H85220B739FA3472CBB6D3297D6110932"><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="H9A1F63A0E7B04F6583DA614338B29DF"><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) of this subsection or to disaffirm or repudiate any such contract in accordance with subsection (d)(1) of this section.</text> </subparagraph><subparagraph id="H318BC8359CE1493D8B3985B500166B63"><enum>(G)</enum><header>Walkaway clauses not effective</header> <clause id="H9C1031BC772D443D80295488CC3F4914"><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="HED0B221B7B0345CE009B589F70E07C36"><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 such party’s status as a nondefaulting party.</text> </clause></subparagraph></paragraph><paragraph id="HD5D3265E63C24CE995DD30002B368CA4"><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="HDC56A69FC601431396EF37941EE4D96"><enum>(A)</enum><text>transfer to 1 person—</text> <clause id="HB53388450E6546C00083FFC64D86B300"><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="H206964CD7F9D427FA2A9D485CA91F000"><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="HD91AEC184B2E48F097C44C316E2C0025"><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="H5BCEC0108DD64BE78C9EC2B950827F73"><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="HC2EEE40548C4453D9C4EEF681849A661"><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="HCFCADC1CAB484243BBFD3E03A4000000"><enum>(10)</enum><header>Notification of transfer</header> <subparagraph id="H138DA7ED2CB44820B800AEBC67982DC"><enum>(A)</enum><header>In general</header><text>If—</text> <clause id="H9CA36DE04F4E4EB3A7BE6B25DE28B7E3"><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="HAE6394525883477981D0F4A9BB761158"><enum>(ii)</enum><text>the transfer includes any qualified financial contract,</text> </clause><continuation-text continuation-text-level="subparagraph">the conservator or receiver shall notify any person who is a party to any such contract of such transfer by 5:00 p.m. (eastern 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.</continuation-text></subparagraph><subparagraph id="HC0E65CD7753D4C73AC191330DA7B3E50"><enum>(B)</enum><header>Certain rights not enforceable</header> <clause id="HAC778172C4E94B49A92E3FAACC4390EF"><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 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="H4BB5A54CB98E4AB299796E561300DC2E"><enum>(I)</enum><text>until 5:00 p.m. (eastern time) on the business day following the date of the appointment of the receiver; or</text> </subclause><subclause id="H4C68C32D5C1B4FEDB665819703404ECF"><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="H6B7864C352454D0D99C22CB1D94EDAE2"><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 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="HBC1132EA4CFE49DB8481D0FB76A71DF"><enum>(iii)</enum><header>Notice</header><text>For purposes of this paragraph, the Agency as receiver or conservator 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 Agency has taken steps reasonably calculated to provide notice to such person by the time specified in subparagraph (A).</text> </clause></subparagraph><subparagraph id="H0FF5C32D692A4BA9A9E68B929094D893"><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="H575DAE679A0943408748765C8492EA25"><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="H807A7F465FC24C2EA5AB4655F951FFC7"><enum>(A)</enum><text>disaffirm or repudiate all qualified financial contracts between—</text> <clause id="H50A65E0EFF394E0A97E943B130BB7723"><enum>(i)</enum><text>any person or any affiliate of such person; and</text> </clause><clause id="H371CF2B48F0E48DB825846819839F0C9"><enum>(ii)</enum><text>the regulated entity in default; or</text> </clause></subparagraph><subparagraph id="H666AAC8EF6224C93BAB0CC3B00D9933E"><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="H46EDFC89008D47CE842E8948709E6F61"><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="HB9E679660C8046F1BE7373031EAEA68B"><enum>(13)</enum><header>Authority to enforce contracts</header> <subparagraph id="HFE6FE5C40BFC4F2D88379435D8AE6500"><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 a conservator or receiver, the conservator or receiver may enforce any contract or regulated entity bond entered into by the regulated entity.</text> </subparagraph><subparagraph id="HD2EE5639AB9948B7002E70052576A512"><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 director’s or officer’s liability insurance contract or surety bond under other applicable law.</text> </subparagraph><subparagraph id="HAC504E88769E45358935A1B8C0461597"><enum>(C)</enum><header>Consent requirement</header> <clause id="H56ECEDA7313848E7B859B0C177FA7B7"><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="HA7241135708648F7B0C858C1673E1E6B"><enum>(I)</enum><text>45 days after the date of appointment of a conservator; or</text> </subclause><subclause id="HDA1950910BFF47CCA0508B14BD769FE"><enum>(II)</enum><text>90 days after the date of appointment of a receiver.</text> </subclause></clause><clause id="H31E4A03C50734517884FF7FC5CCF5C60"><enum>(ii)</enum><header>Exceptions</header><text>This paragraph shall—</text> <subclause id="H02B51CBF3CF24EFDACC6830162EFB549"><enum>(I)</enum><text>not apply to a director’s or officer’s liability insurance contract;</text> </subclause><subclause id="H2E8B3890E6F94993986C9918A7A896CB"><enum>(II)</enum><text>not apply to the rights of parties to any qualified financial contracts under subsection (d)(8); and</text> </subclause><subclause id="H6ABE3A80AA96453DB9C2028400534853"><enum>(III)</enum><text>not 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="H03BC08F08E3440739D602D38D1EFE56F"><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 <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>), and the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name>.</text> </paragraph><paragraph id="H9E01E68302F7431FBE00B3BE54A84B73"><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 id="HB5A7FFE2B6254B5998322F9C70C9B6FA"><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 id="HB0F198141D2A4702B613D9083D624D53"><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="H6658DA1E0ADC48E29B27542603AFA54E"><enum>(e)</enum><header>Valuation of Claims in Default</header> <paragraph id="HB697FF1E923342AB9D93A73210562113"><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="HEDC8267512384C5B86A5E8004E4D1524"><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 equal the lesser of—</text> <subparagraph id="HD5E36B18222B48908500840003F5F927"><enum>(A)</enum><text>the amount such claimant would have received if the Agency had liquidated the assets and liabilities of such regulated entity without exercising the authority of the Agency under subsection (i) of this section; or</text> </subparagraph><subparagraph id="H03FB4EC26CD04B5B9725EC6DAC75DE34"><enum>(B)</enum><text>the amount of proceeds realized from the performance of contracts or sale of the assets of the regulated entity.</text> </subparagraph></paragraph></subsection><subsection id="H328D4FEBD3E3447A9B2030714C51DEAF"><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="H82269BEB9FC64BA8BF832F5CA3ECB9D8"><enum>(g)</enum><header>Liability of Directors and Officers</header> <paragraph id="H5E1DF87FB3A44D67AADC89E750FFF4C4"><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 by, on behalf of, or at the request or direction of the Agency, which action is prosecuted wholly or partially for the benefit of the Agency—</text> <subparagraph id="H4219D3F27EAA4DC7B2D1B3DB2B98D775"><enum>(A)</enum><text>acting as conservator or receiver of such regulated entity, or</text> </subparagraph><subparagraph id="H40BC95422E984466885D3D05DCD9EA2"><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><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="HF36924AC9E95438BB579B5ACCA5CAB49"><enum>(2)</enum><header>No limitation</header><text>Nothing in this paragraph shall impair or affect any right of the Agency under other applicable law.</text> </paragraph></subsection><subsection id="HE79A705D55E34DB597F64EACA430DB90"><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="H2E5D04A317D049B8A952095290CC6504"><enum>(i)</enum><header>Limited-Life Regulated Entities</header> <paragraph id="HA3097AFD079C4AC6A31C604756EBBAE"><enum>(1)</enum><header>Organization</header> <subparagraph id="H68288631D8A547A291A0B2281C17AECB"><enum>(A)</enum><header>Purpose</header><text>If a regulated entity is in default, or if the Agency anticipates that a regulated entity will default, the Agency may organize a limited-life regulated entity with those powers and attributes of the regulated entity in default or in danger of default that the Director determines necessary, subject to the provisions of this subsection. The Director shall grant a temporary charter to the limited-life regulated entity, and the limited-life regulated entity shall operate subject to that charter.</text> </subparagraph><subparagraph id="H350E5F2B0838456E80E180A1D23D8D07"><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="H2B9FF2D5BBB54A7C996803DD6D75E66D"><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, provided that the liabilities assumed shall not exceed the amount of assets of the limited-life regulated entity;</text> </clause><clause id="H6F2DBA3E9F13494AA9005983261F0077"><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="H3E186721B66742B988B5AB2DCDC0786B"><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="HC66FEA3A45FE454988DE0569B4BDE382"><enum>(2)</enum><header>Charter</header> <subparagraph id="HF59B8EA53E5B4276B6DD7E4D3FBD8118"><enum>(A)</enum><header>Conditions</header><text>The Agency may grant a temporary charter if the Agency determines that the continued operation of the regulated entity in default or in danger of default is in the best interest of the national economy and the housing markets.</text> </subparagraph><subparagraph id="H008075D51D5B41C3B6DBFCE1FFAD409"><enum>(B)</enum><header>Treatment 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="HD474540AA00B4F73B4A565E6167BB94C"><enum>(C)</enum><header>Management</header><text>A limited-life regulated entity, upon the granting of its charter, 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="HBA864A05EFB64DFB91CF60523350ABE9"><enum>(D)</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="HC08E82BE8E234FF49F3DFE1DA83A733"><enum>(3)</enum><header>Capital stock</header><text>No capital stock need be paid into a limited-life regulated entity by the Agency.</text> </paragraph><paragraph id="H70002EAB8B5F41A1B8C4CA2CB49FC31"><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="H6F17DAEC8D784E4086E4C27C2970002C"><enum>(5)</enum><header>Exempt status</header><text>Notwithstanding any other provision of Federal or State law, the 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="H4BC4DEC670AC45E9A628003CA839B9D0"><enum>(6)</enum><header>Winding up</header> <subparagraph id="H087AE1F19407438E8F97C51E7528BEA1"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), unless Congress authorizes the sale of the capital stock of the limited-life regulated entity, not later than 2 years after the date of its organization, the Agency shall wind up the affairs of the limited-life regulated entity.</text> </subparagraph><subparagraph id="H0C28F475F98A4649B1A9B2044D00AF8C"><enum>(B)</enum><header>Extension</header><text>The Director may, in the discretion of the Director, extend the status of the limited-life regulated entity for 3 additional 1-year periods.</text> </subparagraph></paragraph><paragraph id="HF4CB0CAB41A14A48A58B132F4993CA43"><enum>(7)</enum><header>Transfer of assets and liabilities</header> <subparagraph id="H458E1D9DBE8F4601ADA7320413732308"><enum>(A)</enum><header>In general</header> <clause id="HBDCD2646D14E40929CEAEC2792C58245"><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 paragraph (1).</text> </clause><clause id="H06C28D4C87A34C76816D0043C1645667"><enum>(ii)</enum><header>Subsequent transfers</header><text>At any time after a charter is transferred to a limited-life regulated entity, the Agency, as receiver, may transfer any assets and liabilities of such regulated entity in default, or in danger in default, as the Agency may, in its discretion, determine to be appropriate in accordance with paragraph (1).</text> </clause><clause id="HBC2BBDC6D65A4A75BE4D002CDECAB56"><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, transferred 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></subparagraph></paragraph><paragraph id="H4716A4890A474B70B7EB44D936FCC6DE"><enum>(8)</enum><header>Proceeds</header><text>To the extent that available proceeds from the limited-life regulated entity exceed amounts required to pay obligations, such proceeds may be paid to the regulated entity in default, or in danger of default.</text> </paragraph><paragraph id="H0722E9169E75444E848DFADD2F02A384"><enum>(9)</enum><header>Powers</header> <subparagraph id="H044C9AFB212E4DC68B4DC2A63C90BCFC"><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="H720076A2FE634FDDAFC4D064E1C85970"><enum>(i)</enum><text>the Agency may—</text> <subclause id="H641C7DA56EE449EAA1A58561B584EB7B"><enum>(I)</enum><text>remove the directors of a limited-life regulated entity; and</text> </subclause><subclause id="HBF625A0106E74C72BD2F0067A88B9B23"><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;</text> </subclause></clause><clause id="HF5332C46A9A641E3BBA516F498EFAF4"><enum>(ii)</enum><text>the Agency may 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> </clause><clause id="HE66C48C2FD4A458BB9A5000007266F8D"><enum>(iii)</enum><text>the board of directors of a limited-life regulated entity—</text> <subclause id="HE63AFC15719C4191B73888CF7C3D48B3"><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="HB3086B555E1448679CA16FF19312EA71"><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="H6FE91E4E6D454E05A5AC65DCC413377"><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 up to 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="HDF73304EEFDC450BA6E6DF8F43C1B71B"><enum>(10)</enum><header>Obtaining of credit and incurring of debt</header> <subparagraph id="HAEE9A60D4AC64698B8A47C347EA861FA"><enum>(A)</enum><header>In general</header><text>The limited-life regulated entity may obtain unsecured credit and incur unsecured debt in the ordinary course of business.</text> </subparagraph><subparagraph id="H66827B0DD5784EC1B9E772EE6D01B919"><enum>(B)</enum><header>Inability to obtain credit</header><text>If the limited-life regulated entity is unable to obtain unsecured credit the Director may authorize the obtaining of credit or the incurring of debt—</text> <clause id="H865B22E7487E4D3DB12729E3CC7C9840"><enum>(i)</enum><text>with priority over any or all administrative expenses;</text> </clause><clause id="H620BB565D944413D913731D03E49BA29"><enum>(ii)</enum><text>secured by a lien on property that is not otherwise subject to a lien; or</text> </clause><clause id="H79B7E0DC47E64EE09DFADFCB0000D936"><enum>(iii)</enum><text>secured by a junior lien on property that is subject to a lien.</text> </clause></subparagraph><subparagraph id="H70F5E736ADD04106A6962B41D2656104"><enum>(C)</enum><header>Limitations</header> <clause id="HEC1FD47CE2AC457B8E807CCCC4304658"><enum>(i)</enum><header>In general</header><text>The Director, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt secured by a senior or equal lien on property that is subject to a lien (other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by the regulated entity) only if—</text> <subclause id="HEA47E62528C045B582F8D2C5C63BC4D0"><enum>(I)</enum><text>the limited-life regulated entity is unable to obtain such credit otherwise; and</text> </subclause><subclause id="H019AE9180501466BA6681320CAB8B9A0"><enum>(II)</enum><text>there is adequate protection of the interest of the holder of the lien on the property which such senior or equal lien is proposed to be granted.</text> </subclause></clause><clause id="HCE71A5EE539E47F28FC933DF48310091"><enum>(ii)</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> </clause></subparagraph><subparagraph id="H59880E7BBC674CC0A3EAD139A4B8B8DC"><enum>(D)</enum><header>Effect on debts and liens</header><text>The reversal or modification on appeal of an authorization under this paragraph to obtain credit or incur debt, or of a grant under this section of a priority or a lien, does not affect the validity of any debt so incurred, 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 incurring of such debt, or the granting of such priority or lien, were stayed pending appeal.</text> </subparagraph></paragraph><paragraph id="HB097E33B2229401F99B98E7DF2C1E22D"><enum>(11)</enum><header>Issuance of preferred debt</header><text>A limited-life regulated entity may, subject to the approval of the Director and subject to such terms and conditions as the Director may prescribe, issue notes, bonds, or other debt obligations of a class to which all other debt obligations of the limited-life regulated entity shall be subordinate in right and payment.</text> </paragraph><paragraph id="H218930955B204741BBB8F7A1FE2F2500"><enum>(12)</enum><header>No federal status</header> <subparagraph id="H420648ACB85240EF00E7014828579579"><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="HF5052AD4B76640A2811406CB95F37900"><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="HB8B0F477C36C42A68897B604B500818C"><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="H30A504BF796D434FB337950037033E34"><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="H08511E00B5D84009ABA283F000EBF200"><enum>(13)</enum><header>Additional powers</header><text>In addition to any other powers granted under this subsection, a limited-life regulated entity may—</text> <subparagraph id="H5C5E9141D02747FEAF25775F545D7CE1"><enum>(A)</enum><text>extend a maturity date or change in an interest rate or other term of outstanding securities;</text> </subparagraph><subparagraph id="H33E92FD22CF244FCA2BA05AC2D751969"><enum>(B)</enum><text>issue securities of the limited-life regulated entity, for cash, for property, for existing securities, or in exchange for claims or interests, or for any other appropriate purposes; and</text> </subparagraph><subparagraph id="H3B7883EC72694FFE902FCCDEE2BBF200"><enum>(C)</enum><text>take any other action not inconsistent with this section.</text> </subparagraph></paragraph></subsection><subsection id="H12FD856503A8468C9D9FB453EC005D23"><enum>(j)</enum><header>Other Exemptions</header><text>When acting as a receiver, the following provisions shall apply with respect to the Agency:</text> <paragraph id="H52A1F0A298794A18AA196B0751D83E02"><enum>(1)</enum><header>Exemption from 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, country, 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="H97BDAB40C3014892BB0799F000655DE8"><enum>(2)</enum><header>Exemption from attachment and liens</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="H1ECED5E6510948D389E00BB76E5A0BA"><enum>(3)</enum><header>Exemption from 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="H0B2F6C6EFDAD4E6DAB3E5271AD200597"><enum>(k)</enum><header>Prohibition of Charter Revocation</header><text>In no case may a receiver appointed pursuant to this section revoke, annul, or terminate the charter of a regulated entity.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H14AD205B96F74F3ABC17B552A96900C5"><enum>(b)</enum><header>Conforming Amendments</header> <paragraph id="HE92945E3855E4189B0A457D7FDEFCBF8"><enum>(1)</enum><header>Housing and community development act of 1992</header><text>Subtitle B of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking sections 1369 (<external-xref legal-doc="usc" parsable-cite="usc/12/4619">12 U.S.C. 4619</external-xref>), 1369A (<external-xref legal-doc="usc" parsable-cite="usc/12/4620">12 U.S.C. 4620</external-xref>), and 1369B (<external-xref legal-doc="usc" parsable-cite="usc/12/4621">12 U.S.C. 4621</external-xref>).</text> </paragraph><paragraph id="HFC84BA729B5A48F4B69CAB371E1FD2FE"><enum>(2)</enum><header>Federal home loan banks</header><text>Section 25 of the Federal Home Loan Bank Act (12 U.S.C. 1445) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HFB255F4AE65748039800002900D91762" style="OLC"> <section id="HA48F94FF70FA42C0A6DE86AC9273371D"><enum>25.</enum><header>Succession of Federal home loan banks</header><text display-inline="no-display-inline">Each Federal Home Loan Bank shall have succession until it is voluntarily merged with another Bank under this Act, or until it is merged, reorganized, rehabilitated, liquidated, or otherwise wound up by the Director in accordance with the provisions of section 1367 of the Housing and Community Development Act of 1992, or by further Act of Congress.</text> </section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H3DE2E6E4FBE2440BA93E57E99CB9BD5E"><enum>1049.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, as amended by the preceding provisions of this title, is further amended—</text> <paragraph id="HDB082433D01B45DA9CE903E3E8F0CD02"><enum>(1)</enum><text>in sections 1365 (<external-xref legal-doc="usc" parsable-cite="usc/12/4615">12 U.S.C. 4615</external-xref>) through 1369D (<external-xref legal-doc="usc" parsable-cite="usc/12/4623">12 U.S.C. 4623</external-xref>), but not including section 1367 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617</external-xref>) as amended by section 1048 of this title—</text> <subparagraph id="HE53854A025A94606979BAEB26CD3BA"><enum>(A)</enum><text>by striking <quote>An enterprise</quote> each place such term appears and inserting <quote>A regulated entity</quote>;</text> </subparagraph><subparagraph id="H03840D8151C24DF9808766B4F9BB022E"><enum>(B)</enum><text>by striking <quote>an enterprise</quote> each place such term appears and inserting <quote>a regulated entity</quote>; and</text> </subparagraph><subparagraph id="HDA46B2371E594E96A9CC15C1C031601"><enum>(C)</enum><text>by striking <quote>the enterprise</quote> each place such term appears and inserting <quote>the regulated entity</quote>;</text> </subparagraph></paragraph><paragraph id="H37DFF5C339EE4F078501D459A05B9144"><enum>(2)</enum><text>in section 1366 (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616</external-xref>)—</text> <subparagraph id="H7F095EB3D778495790E9A5C178A0004E"><enum>(A)</enum><text>in subsection (b)(7), by striking <quote>section 1369 (excluding subsection (a)(1) and (2))</quote> and inserting <quote>section 1367</quote>; and</text> </subparagraph><subparagraph id="H2C9C1C85A20F4286B924D415DB02D412"><enum>(B)</enum><text>in subsection (d), by striking <quote>the enterprises</quote> and inserting <quote>the regulated entities</quote>;</text> </subparagraph></paragraph><paragraph id="HA8A7F481556A43DFB008316C8681347D"><enum>(3)</enum><text>in section 1368(d) (<external-xref legal-doc="usc" parsable-cite="usc/12/4618">12 U.S.C. 4618(d)</external-xref>), by striking <quote>Committee on Banking, Finance and Urban Affairs</quote> and inserting <quote>Committee on Financial Services</quote>;</text> </paragraph><paragraph id="H9DAA24636C42423DB34E7302497040AC"><enum>(4)</enum><text display-inline="yes-display-inline">in section 1369C (<external-xref legal-doc="usc" parsable-cite="usc/12/4622">12 U.S.C. 4622</external-xref>)—</text> <subparagraph id="HF59D29B43700462A87F17360C0008390"><enum>(A)</enum><text>in subsection (a)(4), by striking <quote>activities (including existing and new programs)</quote> and inserting <quote>activities, services, undertakings, and offerings (including existing and new products (as such term is defined in section 1321(f))</quote>; and</text> </subparagraph><subparagraph id="H17BC521299EB4879BAC412D8FB9C9D71"><enum>(B)</enum><text>in subsection (c), by striking <quote>any enterprise</quote> and inserting <quote>any regulated entity</quote>; and</text> </subparagraph></paragraph><paragraph id="H42EA724E385440469D153BB0F0000019"><enum>(5)</enum><text>in subsections (a) and (d) of section 1369D, by striking <quote>section 1366 or 1367 or action under section 1369)</quote> each place such phrase appears and inserting <quote>section 1367)</quote>.</text> </paragraph></section></chapter><chapter id="H3DCDDEAC92F14F688EDDAE002D5839C3"><enum>4</enum><header>Enforcement Actions</header> <section id="HF2B96440ADF7466391EB3493A5EDB900"><enum>1051.</enum><header>Cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1371 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631</external-xref>) is amended—</text> <paragraph id="HEC1414E09B194309A36941CA15722BFF"><enum>(1)</enum><text>by striking subsections (a) and (b) and inserting the following new subsections:</text> <quoted-block id="H471A0B3799D5461B834EEF212F232E4" style="OLC"> <subsection id="H5FCC6A34BD6F44C9814D65F97F67F1D9"><enum>(a)</enum><header>Issuance for Unsafe or Unsound Practices and Violations of Rules or Laws</header><text>If, in the opinion of the Director, a regulated entity or any regulated entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any regulated entity-affiliated party is about to engage, in an unsafe or unsound practice in conducting the business of the regulated entity or is violating or has violated, or the Director has reasonable cause to believe that the regulated entity or any regulated entity-affiliated party is about to violate, a law, rule, or regulation, 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 any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or such party a notice of charges in respect thereof. 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 of this title, with subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<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 <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<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 <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)</external-xref>).</text> </subsection><subsection id="H9731EBEB124343BF8F002229C2F1CFBE"><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 this subsection.</text> </subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H628918E944B24C479BF4B646BA3E4D84"><enum>(2)</enum><text>in subsection (c)(2), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>; and</text> </paragraph><paragraph id="H0AD76F9192614DDCBBAE56D0311C5D46"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="H6CC6FDB75E334F3BB0AC7F65C4D2FBD1"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text> </subparagraph><subparagraph id="H2A45386744D64D70B28ED7EF46E6CAC"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="H370F1DDEE28546FC9BCCA6093694AF15"><enum>(i)</enum><text>by striking <quote>an executive officer or a director</quote> and inserting <quote>a regulated entity affiliated party</quote>; and</text> </clause><clause id="HB3694A371BE74499A5B6882F29020642"><enum>(ii)</enum><text>by inserting <quote>(including reimbursement of compensation under section 1318)</quote> after <quote>reimbursement</quote>;</text> </clause></subparagraph><subparagraph id="H2D339A942E1B4873924C99FCDBB1BC9"><enum>(C)</enum><text>in paragraph (6), by striking <quote>and</quote> at the end;</text> </subparagraph><subparagraph id="H4FDE39A614E64364B3D081CBDB52BBF2"><enum>(D)</enum><text>by redesignating paragraph (7) as paragraph (8); and</text> </subparagraph><subparagraph id="H080FD6AD5D3847A5B4EA89A5054D1FD1"><enum>(E)</enum><text>by inserting after paragraph (6) the following new paragraph:</text> <quoted-block id="H53F1F155D0B84D57927CF82C91B0D73E" style="OLC"> <paragraph id="H8A5058D4546A4212AD81305F77492B88"><enum>(7)</enum><text>to effect an attachment on a regulated entity or regulated entity-affiliated party subject to an order under this section or section 1372; and</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></section><section id="HE6AFD03E61444F20BFE47D819D1C9548"><enum>1052.</enum><header>Temporary cease-and-desist proceedings</header><text display-inline="no-display-inline">Section 1372 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632</external-xref>) is amended—</text> <paragraph id="H97774D93977C4E019CF43BBC6E8FD7"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="H3C9E94D92F084BC3838E9BCB16A290E0" style="OLC"> <subsection id="H3483099B89F74B6498AC07B65BD84301"><enum>(a)</enum><header>Grounds for Issuance</header><text>Whenever the Director determines that the violation or threatened violation or the unsafe or unsound practice or practices specified in the notice of charges served upon the regulated entity or any regulated 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 the regulated entity, or is likely to weaken the condition of the regulated entity prior to the completion of the proceedings conducted pursuant to sections 1371 and 1373, the Director may issue a temporary order requiring the regulated entity or such party to cease and desist from any such violation or practice and to take affirmative action to prevent or remedy such insolvency, dissipation, condition, or prejudice pending completion of such proceedings. Such order may include any requirement authorized under section 1371(d).</text> </subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HD258480AE96F44358E741209E0FEB100"><enum>(2)</enum><text>in subsection (b), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text> </paragraph><paragraph id="HD6B1373366194F82807790E88FBA37D4"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="H85C72C75C4FA43C2AA8CA5735D28CAEE"><enum>(A)</enum><text>by striking <quote>An enterprise, executive officer, or director</quote> and inserting <quote>A regulated entity or regulated entity-affiliated party</quote>; and</text> </subparagraph><subparagraph id="H8606384BE26F4E688481309F42371284"><enum>(B)</enum><text>by striking <quote>the enterprise, executive officer, or director</quote> and inserting <quote>the regulated entity or regulated entity-affiliated party</quote>; and</text> </subparagraph></paragraph><paragraph id="H0E417B48241A43E68CC75C48EBF01604"><enum>(4)</enum><text>by striking subsection (e) and in inserting the following new subsection:</text> <quoted-block id="H7C024B1C895A4BB9BCC7EB9E365B4E1B" style="OLC"> <subsection id="H7DF012C27DB04941BD87AC343E19F700"><enum>(e)</enum><header>Enforcement</header><text>In the case of violation or threatened violation of, or failure to obey, a temporary cease-and-desist order issued pursuant to this section, the Director may 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 an injunction to enforce such order, and, if the court determines that there has been such violation or threatened violation or failure to obey, it shall be the duty of the court to issue such injunction.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H7836E937D1204B8E8E81A66300256C03"><enum>1053.</enum><header>Prejudgment attachment</header><text display-inline="no-display-inline">The <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by inserting after section 1375 (<external-xref legal-doc="usc" parsable-cite="usc/12/4635">12 U.S.C. 4635</external-xref>) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H3E97EA15EB0E460994F9CB75BA454260" style="OLC"> <section id="H6794A7E52B4C40469235501D2CF64F84"><enum>1375A.</enum><header>Prejudgment attachment</header> <subsection id="H52436B89A70B46B99DCBFEC6CC829FCA"><enum>(a)</enum><header>In General</header><text>In any action brought pursuant to this title, or in actions brought in aid of, or to enforce an order in, any administrative or other civil action for money damages, restitution, or civil money penalties brought pursuant to this title, the court may, upon application of the Director or Attorney General, as applicable, issue a restraining order that—</text> <paragraph id="HEFD0217765E343A286FA88568BCB0824"><enum>(1)</enum><text>prohibits any person subject to the proceeding from withdrawing, transferring, removing, dissipating, or disposing of any funds, assets or other property; and</text> </paragraph><paragraph id="HEBF1F25C1B77431480B6A269D5611099"><enum>(2)</enum><text>appoints a person on a temporary basis to administer the restraining order.</text> </paragraph></subsection><subsection id="H213315A18CCA4BEB9CEF6584ACD7DD53"><enum>(b)</enum><header>Standard</header> <paragraph id="H5FB72B50EFC9483AB73F1FF918914FD0"><enum>(1)</enum><header>Showing</header><text>Rule 65 of the Federal Rules of Civil Procedure shall apply with respect to any proceeding under subsection (a) 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="HBEE15E093F694FCFAD212D01C99038E3"><enum>(2)</enum><header>State proceeding</header><text>If, in the case of any proceeding in a State court, the court determines that rules of civil procedure available under the laws of such State provide substantially similar protections to a party’s right to due process as Rule 65 (as modified with respect to such proceeding by paragraph (1)), the relief sought under subsection (a) may be requested under the laws of such State.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H30F6A69BA87E46728CAE5500AF71DD14"><enum>1054.</enum><header>Enforcement and jurisdiction</header><text display-inline="no-display-inline">Section 1375 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4635">12 U.S.C. 4635</external-xref>) is amended—</text> <paragraph id="HEEE1EF34AB354618B5C95E1F21B71E2B"><enum>(1)</enum><text>by striking subsection (a) and inserting the following new subsection:</text> <quoted-block id="HE5BCA82F77BD4697844243C51C00BF6E" style="OLC"> <subsection id="H92F251165167428FB7E5CAC6F084BA5"><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 id="H644D46C3989F4361AD8EC6C7763C7EFB"><enum>(2)</enum><text>in subsection (b), by striking <quote>or 1376</quote> and inserting <quote>1376, or 1377</quote>.</text> </paragraph></section><section id="H0FEEF705CC5C446C8327A5323D041688"><enum>1055.</enum><header>Civil money penalties</header><text display-inline="no-display-inline">Section 1376 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4636">12 U.S.C. 4636</external-xref>) is amended—</text> <paragraph id="H05271F2930594FBFACFD17E4A7B0DE4B"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="HD5C3DD8FB18D49BFB64609FDD27380"><enum>(A)</enum><text>in the matter preceding paragraph (1), by striking <quote>, or any executive officer or director</quote> and inserting <quote>or any regulated-entity affiliated party</quote>; and</text> </subparagraph><subparagraph id="HE543C188084045E2A43E86C1D6DF39AF"><enum>(B)</enum><text>in paragraph (1)—</text> <clause id="H11A5E150587E40F0B0D662206500B866"><enum>(i)</enum><text>by striking <quote>the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name></quote> and inserting <quote>any provision of any of the authorizing statutes</quote>;</text> </clause><clause id="H5CC4AEEE254640DFA2A385271561C910"><enum>(ii)</enum><text>by striking <quote>or Act</quote> and inserting <quote>or statute</quote>;</text> </clause><clause id="HB67E3BB5F26445AA0002A0FC171CAD70"><enum>(iii)</enum><text>by striking <quote>or subsection</quote> and inserting <quote>, subsection</quote>; and</text> </clause><clause id="H401797A1BC314C4AB0969D0034A2C3E9"><enum>(iv)</enum><text>by inserting <quote>, or paragraph (5) or (12) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name></quote> before the semicolon at the end;</text> </clause></subparagraph></paragraph><paragraph id="H49ECC05DB0924D52A380D3E5B642955"><enum>(2)</enum><text>by striking subsection (b) and inserting the following new subsection:</text> <quoted-block id="HDFBED89F1B98471D867E1BC4D79055EF" style="OLC"> <subsection id="H03ABE7DC41894CF2BF7998F455C238DF"><enum>(b)</enum><header>Amount of Penalty</header> <paragraph id="HC5F45857004E47CCA927B0812FE1EA45"><enum>(1)</enum><header>First tier</header><text>Any regulated entity which, or any regulated entity-affiliated party who—</text> <subparagraph id="HFF996BA18FE148069758D25FC7576E67"><enum>(A)</enum><text>violates any provision of this title, any provision of any of the authorizing statutes, or any order, condition, rule, or regulation under any such title or statute, except that 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 of this title, with subsection (m) or (n) of section 309 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<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 <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456(e)</external-xref>, (f)), or with paragraph (5) or (12) of section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>;</text> </subparagraph><subparagraph id="H8F67A5EAE5834F6E9B9F76FB64FAC9C2"><enum>(B)</enum><text>violates any final or temporary order or notice issued pursuant to this title;</text> </subparagraph><subparagraph id="H283CED4AC8EA4D3DAB4199C4A29D8E46"><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="H222697467E11485C80F8718250DC83B4"><enum>(D)</enum><text>violates any written agreement between the regulated entity and the Director,</text> </subparagraph><continuation-text continuation-text-level="paragraph">shall forfeit and pay a civil money penalty of not more than $10,000 for each day during which such violation continues.</continuation-text></paragraph><paragraph id="HECCB971DEC9845509700397D49E27157"><enum>(2)</enum><header>Second tier</header><text>Notwithstanding paragraph (1)—</text> <subparagraph id="HC121F09A41AC4652AAC8E70620D8F137"><enum>(A)</enum><text>if a regulated entity, or a regulated entity-affiliated party—</text> <clause id="H353BAE8164594E02A69866ADBAD4BEE2"><enum>(i)</enum><text>commits any violation described in any subparagraph of paragraph (1);</text> </clause><clause id="HF898E1E90CAD4D0E84EAF22974C7E424"><enum>(ii)</enum><text>recklessly engages in an unsafe or unsound practice in conducting the affairs of such regulated entity; or</text> </clause><clause id="H5E18493B1D574C5CB5D437B9C2558508"><enum>(iii)</enum><text>breaches any fiduciary duty; and</text> </clause></subparagraph><subparagraph id="H36A71F5C121341269C4C88FD6767C979"><enum>(B)</enum><text>the violation, practice, or breach—</text> <clause id="HF8E57E714AF240608B00009146ECFE05"><enum>(i)</enum><text>is part of a pattern of misconduct;</text> </clause><clause id="HCBDF0AE6E33B4035A67661A859EBEA5D"><enum>(ii)</enum><text>causes or is likely to cause more than a minimal loss to such regulated entity; or</text> </clause><clause id="H7213AEA4B4AD4A16A7C239C43FD5286"><enum>(iii)</enum><text>results in pecuniary gain or other benefit to such party,</text> </clause></subparagraph><continuation-text continuation-text-level="paragraph">the regulated entity or regulated entity-affiliated party shall forfeit and pay a civil penalty of not more than $50,000 for each day during which such violation, practice, or breach continues.</continuation-text></paragraph><paragraph id="H32535FC5555544A79E5BAE68F6626760"><enum>(3)</enum><header>Third tier</header><text>Notwithstanding paragraphs (1) and (2), any regulated entity which, or any regulated entity-affiliated party who—</text> <subparagraph id="H0296C524CFF849E4BE3C22E9A2486265"><enum>(A)</enum><text>knowingly—</text> <clause id="HF49E575F8F754E6BBC6BEBB302B84D1C"><enum>(i)</enum><text>commits any violation or engages in any conduct described in any subparagraph of paragraph (1);</text> </clause><clause id="HFDDA57F5B328464DAF1CD062B160EFD2"><enum>(ii)</enum><text>engages in any unsafe or unsound practice in conducting the affairs of such regulated entity; or</text> </clause><clause id="H6C3158E4AB74488C9B2B15B6CBBAFDC3"><enum>(iii)</enum><text>breaches any fiduciary duty; and</text> </clause></subparagraph><subparagraph id="HAD1CD106EDFD4F80ADB105AC509DA85D"><enum>(B)</enum><text>knowingly or recklessly causes a substantial loss to such regulated entity or a substantial pecuniary gain or other benefit to such party by reason of such violation, practice, or breach,</text> </subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="HAE9D7B18BA68401E94F6CF7B67DBDB21"><enum>(4)</enum><header>Maximum amounts of penalties for any violation described in paragraph <enum-in-header>(3)</enum-in-header></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 such paragraph is—</text> <subparagraph id="H5ECB867BD06743B6B96CE75B4C044389"><enum>(A)</enum><text>in the case of any person other than a regulated entity, an amount not to exceed $2,000,000; and</text> </subparagraph><subparagraph id="H2063B01EC798495CB802CF8467DBEAB0"><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="HC406D80FDB1E409FA918B67BC3B6918F"><enum>(3)</enum><text>in subsection (c)(1)(B), by striking <quote>enterprise, executive officer, or director</quote> and inserting <quote>regulated entity or regulated entity-affiliated party</quote>;</text> </paragraph><paragraph id="H852E5CE6C2454412A1D75DB9C95B474D"><enum>(4)</enum><text>in subsection (d), by striking the first sentence and inserting the following: <quote>If a regulated entity or regulated entity-affiliated party fails to comply with an order of the Director imposing a civil money penalty under this section, after the order is no longer subject to review as provided under subsection (c)(1) and section 1374, the Director may, in the discretion of the Director, bring an action in 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, to obtain a monetary judgment against the regulated entity or regulated entity affiliated party and such other relief as may be available, or request that the Attorney General of the United States bring such an action.</quote>; and</text> </paragraph><paragraph id="H41FB0573DA464BB384B5910092128949"><enum>(5)</enum><text>in subsection (g), by striking <quote>subsection (b)(3)</quote> and inserting <quote>this section, unless authorized by the Director by rule, regulation, or order</quote>.</text> </paragraph></section><section id="H85FD8E7567524DF58CA25352B1260026"><enum>1056.</enum><header>Removal and prohibition authority</header> <subsection id="HDB5C4D3591FF4F02B1028E9F1DD81847"><enum>(a)</enum><header>In General</header><text>Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended—</text> <paragraph id="H4EEA1FBEDD694BF48EDB63FD58B513AD"><enum>(1)</enum><text>by redesignating sections 1377, 1378, 1379, 1379A, and 1379B (<external-xref legal-doc="usc" parsable-cite="usc/12/4637-41">12 U.S.C. 4637–41</external-xref>) as sections 1379, 1379A, 1379B, 1379C, and 1379D, respectively; and</text> </paragraph><paragraph id="H2280738EE1894734AE16DEF824113212"><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 new section:</text> <quoted-block id="H58BF800A75BC495791C34AEDA64DB2D" style="OLC"> <section id="H03D2CFBBDC87453EAE26E28E713EDCC5"><enum>1377.</enum><header>Removal and prohibition authority</header> <subsection id="H661AA88D889F447397BD7056602F8FEF"><enum>(a)</enum><header>Authority To Issue Order</header><text>Whenever the Director determines that—</text> <paragraph id="H0AFBA022854543C8A8F6FDFC80FB9918"><enum>(1)</enum><text>any regulated entity-affiliated party has, directly or indirectly—</text> <subparagraph id="H63AD3A4B306A430DA896E003269B37E1"><enum>(A)</enum><text>violated—</text> <clause id="HD28E1653D2A8499ABC18154FDDFB5CDD"><enum>(i)</enum><text>any law or regulation;</text> </clause><clause id="H39B34028708747CB8BDCCBFE7E004BCF"><enum>(ii)</enum><text>any cease-and-desist order which has become final;</text> </clause><clause id="H05B7AE4E2862401FAB48FB4619243334"><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> </clause><clause id="HDD3ADF1CA3384EC8989899566BBCAA3"><enum>(iv)</enum><text>any written agreement between such regulated entity and the Director;</text> </clause></subparagraph><subparagraph id="H5B29C0D8888B4F178FAA91C4400BCFF"><enum>(B)</enum><text>engaged or participated in any unsafe or unsound practice in connection with any regulated entity; or</text> </subparagraph><subparagraph id="HE685A839A4E34908ABEF393571FFC06"><enum>(C)</enum><text>committed or engaged in any act, omission, or practice which constitutes a breach of such party’s fiduciary duty;</text> </subparagraph></paragraph><paragraph id="H7AC9CB57D7A748EAA28CF406EFFAAF4B"><enum>(2)</enum><text>by reason of the violation, practice, or breach described in any subparagraph of paragraph (1)—</text> <subparagraph id="HD9FE871D141244E0A80996EA6E14F161"><enum>(A)</enum><text>such regulated entity has suffered or will probably suffer financial loss or other damage; or</text> </subparagraph><subparagraph id="H2726FA8ECABD415FB3A4BF763E039F41"><enum>(B)</enum><text>such party has received financial gain or other benefit by reason of such violation, practice, or breach; and</text> </subparagraph></paragraph><paragraph id="HBCA59A9F6D21472A9F4B5E026D696ED3"><enum>(3)</enum><text>such violation, practice, or breach—</text> <subparagraph id="H3D69F39385BF4F428D229FBFD300688B"><enum>(A)</enum><text>involves personal dishonesty on the part of such party; or</text> </subparagraph><subparagraph id="HE0A96658FAF7429498976214F7438021"><enum>(B)</enum><text>demonstrates willful or continuing disregard by such party for the safety or soundness of such regulated entity, the Director may serve upon such party a written notice of the Director’s intention to remove such party from office or to prohibit any further participation by such party, in any manner, in the conduct of the affairs of any regulated entity.</text> </subparagraph></paragraph></subsection><subsection id="H9FAEEFF1B0F448F682D2B29034F5AA3"><enum>(b)</enum><header>Suspension Order</header> <paragraph id="H90D7D60F6BB243E4A85FBF2DD2D6EA5B"><enum>(1)</enum><header>Suspension or prohibition authority</header><text>If the Director serves written notice under subsection (a) to any regulated entity-affiliated party of the Director’s intention to issue an order under such subsection, the Director may—</text> <subparagraph id="HEF0510B93E03475B8FFE9552A74F21A8"><enum>(A)</enum><text>suspend 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> <clause id="H01F8D014FBB6457DBA26C134A2C1F9E0"><enum>(i)</enum><text>determines that such action is necessary for the protection of the regulated entity; and</text> </clause><clause id="H4AB62CEC76BA46B0B08E5F7F0012CC15"><enum>(ii)</enum><text>serves such party with written notice of the suspension order; and</text> </clause></subparagraph><subparagraph id="H5C9895D8E7AE443B9BC7413272FE009F"><enum>(B)</enum><text>prohibit the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with any resignation, removal, retirement, or other termination of employment or office of the party.</text> </subparagraph></paragraph><paragraph id="HD8137599F43441B18EAFE9ECFB4CDB62"><enum>(2)</enum><header>Effective period</header><text>Any suspension order issued under this subsection—</text> <subparagraph id="H6CF65F638FFF4BC5A6922909D422EE00"><enum>(A)</enum><text>shall become effective upon service; and</text> </subparagraph><subparagraph id="H5FE576A81EE74E69A87D594E54E673B1"><enum>(B)</enum><text>unless a court issues a stay of such order under subsection (g) of this section, shall remain in effect and enforceable until—</text> <clause id="H3593AE557BD8494D805BBD6000589B7"><enum>(i)</enum><text>the date the Director dismisses the charges contained in the notice served under subsection (a) with respect to such party; or</text> </clause><clause id="H398C5EC139F2467A882249E19000B7E4"><enum>(ii)</enum><text>the effective date of an order issued by the Director to such party under subsection (a).</text> </clause></subparagraph></paragraph><paragraph id="H50D662AEF6E54B8BA1D36FC27DFC426"><enum>(3)</enum><header>Copy of order</header><text>If the Director issues a suspension order under this subsection to any regulated entity-affiliated 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="H509FB54275064749B37D5BD3F1007B43"><enum>(c)</enum><header>Notice, Hearing, and Order</header><text>A notice of intention to remove a regulated entity-affiliated party from office or to prohibit such party from participating in the conduct of the affairs of a regulated entity 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. Such hearing shall be fixed for a date not earlier than 30 days nor later than 60 days after the date of service of such notice, unless an earlier or a later date is set by the Director at the request of (1) such party, and for good cause shown, or (2) the Attorney General of the United States. Unless such party shall appear 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 of such removal or prohibition. In the event of such consent, or if upon the record made at any such hearing the Director shall find that any of the grounds specified in such notice have been established, the Director may issue such orders of suspension or removal from office, or prohibition from participation in the conduct of the affairs of the regulated entity, as it may deem appropriate, together with an order prohibiting compensation described in subsection (b)(1)(B). Any such order shall become effective at the expiration of 30 days after service upon such regulated entity and such party (except in the case of an order issued upon consent, 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> </subsection><subsection id="HA2FE26FA32A4455F93A4333B004F9E43"><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="H9014F960B5404D74AA2613B2C427D2F9"><enum>(1)</enum><text>participate in any manner in the conduct of the affairs of any regulated entity;</text> </paragraph><paragraph id="H02FEFD9F7C704457A726903F3623C2CD"><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="H70A6526F8B14454BB189BC7386009B05"><enum>(3)</enum><text>violate any voting agreement previously approved by the Director; or</text> </paragraph><paragraph id="H4627E094E9834DE498DA561981DD93BB"><enum>(4)</enum><text>vote for a director, or serve or act as a regulated entity-affiliated party.</text> </paragraph></subsection><subsection id="HB3BC2EF053DC41DE919CE14E7654C6C4"><enum>(e)</enum><header>Industry-Wide Prohibition</header> <paragraph id="H4D9C65CD91A4480896451738B524FBE8"><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 prohibited from participating in the conduct of the affairs of a regulated entity 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.</text> </paragraph><paragraph id="H4A963883DCA642DF85352B11A3826200"><enum>(2)</enum><header>Exception if director provides written consent</header><text>If, on or after the date an order is issued under this section which removes or suspends from office any regulated entity-affiliated party or prohibits such party from participating in the conduct of the affairs of a regulated entity, 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 described in the written consent. If the Director grants such a written consent, it shall publicly disclose such consent.</text> </paragraph><paragraph id="HBF902443288C436BA852C604F8EFCE51"><enum>(3)</enum><header>Violation of paragraph <enum-in-header>(1)</enum-in-header> treated as violation of order</header><text>Any violation of paragraph (1) by any person who is subject to an order described in such subsection shall be treated as a violation of the order.</text> </paragraph></subsection><subsection id="HCD3DC7DDA61943E2BAD66B89D7A3AD97"><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 enterprise.</text> </subsection><subsection id="HD0A98E0D4D564742861FF447945E73A1"><enum>(g)</enum><header>Stay of Suspension and Prohibition of Regulated Entity-Affiliated Party</header><text>Within 10 days after any regulated entity-affiliated party has been suspended from office and/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 and/or prohibition and any prohibition under subsection (b)(1)(B) pending the completion of the administrative proceedings pursuant to the notice served upon such party under this section, and such court shall have jurisdiction to stay such suspension and/or prohibition.</text> </subsection><subsection id="H32EB6A2E541546329BB040A6592F28AA"><enum>(h)</enum><header>Suspension or Removal of Regulated Entity-Affiliated Party Charged With Felony</header> <paragraph id="HD45CDF2797A44F38002CEAF3B0F4D0DF"><enum>(1)</enum><header>Suspension or prohibition</header> <subparagraph id="HEB5B330908164E62B5F758CD902E27F"><enum>(A)</enum><header>In general</header><text>Whenever any regulated 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 one year under State or Federal 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—</text> <clause id="H5AE8309ECA264F75B6425ED4594C324"><enum>(i)</enum><text>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; and</text> </clause><clause id="H238C056397134288AD482DC847A84970"><enum>(ii)</enum><text>prohibit the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with the period of any such suspension or with any resignation, removal, retirement, or other termination of employment or office of the party.</text> </clause></subparagraph><subparagraph id="H26BA5C89F6BF4FB59096D677B421AA09"><enum>(B)</enum><header>Provisions applicable to notice</header> <clause id="H98944048811B48C2A16800004BBECF3"><enum>(i)</enum><header>Copy</header><text>A copy of any notice under paragraph (1)(A) shall also be served upon the regulated entity.</text> </clause><clause id="H6377501E48834D52894C8731C83DF814"><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 such subparagraph is finally disposed of or until terminated by the Director.</text> </clause></subparagraph></paragraph><paragraph id="H92EAD80A9CAC4691BD001257BB34EDBD"><enum>(2)</enum><header>Removal or prohibition</header> <subparagraph id="HE2F3202E868843ACA7FA572783F908AF"><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 a regulated 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 that—</text> <clause id="H3D513B05382C4F4EAF83EE019066216B"><enum>(i)</enum><text>removes such party from office or prohibits 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; and</text> </clause><clause id="H173AE1CDEF27402983529DDF52BECBF0"><enum>(ii)</enum><text>prohibits the regulated entity from releasing to or on behalf of the regulated entity-affiliated party any compensation or other payment of money or other thing of current or potential value in connection with the termination of employment or office of the party.</text> </clause></subparagraph><subparagraph id="H13227E7E377B458EB71D1253EA1814A0"><enum>(B)</enum><header>Provisions applicable to order</header> <clause id="H4EA982B663E744EDA757DBE8454CEEFF"><enum>(i)</enum><header>Copy</header><text>A copy of any order under paragraph (2)(A) shall also be served upon the regulated entity, whereupon the regulated 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="H90633751515B4F658CDC39BB655036DF"><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 such party from office or to prohibit further participation in regulated entity affairs, and to prohibit compensation or other payment of money or other thing of current or potential value in connection with any resignation, removal, retirement, or other termination of employment or office of the party, pursuant to subsections (a), (d), or (e) of this section.</text> </clause><clause id="H67CFB86AB9EC458CBC923FA783F17713"><enum>(iii)</enum><header>Effective period</header><text>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) unless terminated by the Director.</text> </clause></subparagraph></paragraph><paragraph id="HC33B9B7B9650447DAEBEEC317486DD82"><enum>(3)</enum><header>Authority of remaining board members</header><text>If at any time, because of the suspension of one 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. In the event all of the directors of a regulated entity are suspended pursuant to this section, the Director shall appoint persons to serve temporarily as directors in their place and stead 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> </paragraph><paragraph id="H8513BA85AFEB4D92BE717BC320F83911"><enum>(4)</enum><header>Hearing regarding continued participation</header><text>Within 30 days from service of any notice of suspension or order of removal issued pursuant to paragraph (1) or (2) of this subsection, the regulated entity-affiliated party concerned may request in writing an opportunity to appear before the Director to show that the continued service to 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. Upon receipt of any such request, the Director shall fix a time (not more than 30 days after receipt of such request, unless extended at the request of such party) and place at which such party may appear, personally or through counsel, before one or more members of the Director or designated employees of the Director to submit written materials (or, at the discretion of the Director, oral testimony) and oral argument. Within 60 days of such hearing, the Director shall notify such 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, and prohibiting compensation in connection with termination will be rescinded or otherwise modified. Such notification shall contain a statement of the basis for the Director’s decision, if adverse to such party. The Director is authorized to prescribe such rules as may be necessary to effectuate the purposes of this subsection.</text> </paragraph></subsection><subsection id="H845F3DE3FC8446D7A848F443D38FD2BA"><enum>(i)</enum><header>Hearings and Judicial Review</header> <paragraph id="H2D9F75E8012B42F48F34FADFE1318E54"><enum>(1)</enum><header>Venue and procedure</header><text>Any hearing provided for in this section shall be held in the District of Columbia or in the Federal judicial district in which the headquarters of the regulated entity is located, unless the party afforded the hearing consents to another place, and shall be conducted in accordance with the provisions of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code. After such hearing, and within 90 days after the Director has notified the parties that the case has been submitted to it for final decision, it shall render its decision (which shall include findings of fact upon which its decision is predicated) and shall issue and serve upon each party to the proceeding an order or orders consistent with the provisions of this section. Judicial review of any such order shall be exclusively as provided in this subsection. Unless a petition for review is timely filed in a court of appeals of the United States, as provided in paragraph (2), and thereafter until the record in the proceeding has been filed as so provided, the Director may at any time, upon such notice and in such manner as it shall deem proper, modify, terminate, or set aside any such order. Upon such filing of the record, the Director may modify, terminate, or set aside any such order with permission of the court.</text> </paragraph><paragraph id="HA8892D154B5E4685B8A019592B6ECCD4"><enum>(2)</enum><header>Review of order</header><text>Any party to any proceeding under paragraph (1) may obtain a review of any order served pursuant to paragraph (1) (other than an order issued with the consent of the regulated entity or the regulated entity-affiliated party concerned, or an order issued under subsection (h) of this section) by the filing in the United States Court of Appeals for the District of Columbia Circuit or court of appeals of the United States for the circuit in which the headquarters of the regulated entity is located, within 30 days after the date of service of such order, a written petition praying that the order of the Director be modified, terminated, or set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Director, and thereupon the Director shall file in the court the record in the proceeding, as provided in <external-xref legal-doc="usc" parsable-cite="usc/28/2112">section 2112</external-xref> of title 28, United States Code. Upon the filing of such petition, such court shall have jurisdiction, which upon the filing of the record shall (except as provided in the last sentence of paragraph (1)) be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of the Director. Review of such proceedings shall be had as provided in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in section 1254 of title 28, United States Code.</text> </paragraph><paragraph id="HD059BF7496AC4536B0D90100D6BF77F"><enum>(3)</enum><header>Proceedings not treated as stay</header><text>The commencement of proceedings for judicial review under paragraph (2) shall not, unless specifically ordered by the court, operate as a stay of any order issued by the Director.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H6FB16ADA9E9A4A9CAF5BB7BB4337EF9"><enum>(b)</enum><header>Conforming Amendments</header> <paragraph id="HEA5331BD406B421E8E07DE4683099042"><enum>(1)</enum><header>1992 act</header><text>Section 1317(f) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4517">12 U.S.C. 4517(f)</external-xref>) is amended by striking <quote>section 1379B</quote> and inserting <quote>section 1379D</quote>.</text> </paragraph><paragraph id="H88CA9177B64A4ED5AA30553566862B28"><enum>(2)</enum><header>Fannie mae charter act</header><text>The second sentence of subsection (b) of section 308 of the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(b)</external-xref>) is amended by striking <quote>The</quote> and inserting <quote>Except to the extent that action under section 1377 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> temporarily results in a lesser number, the</quote>.</text> </paragraph><paragraph id="HE9879807EFDA41C08184CD26C6DFF6D0"><enum>(3)</enum><header>Freddie mac act</header><text>The second sentence of subparagraph (A) of section 303(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/12/1452">12 U.S.C. 1452(a)(2)(A)</external-xref>) is amended by striking <quote>The</quote> and inserting <quote>Except to the extent that action under section 1377 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> temporarily results in a lesser number, the</quote>.</text> </paragraph></subsection></section><section id="H8FDD6C68DB944951B1A22B6C45664372"><enum>1057.</enum><header>Criminal penalty</header><text display-inline="no-display-inline">Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<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 the preceding provisions of this title) the following new section:</text> <quoted-block act-name="Housing and Community Development Act of 1992" id="H5B1B5461CBBC4D46B3AE1FA288D3B879" style="OLC"> <section id="H351DAA46DB95419200ED1566CA28256"><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> </section><section id="HEE1ABFA778FC4C7EA4AFC45C44D6C584"><enum>1058.</enum><header>Subpoena authority</header><text display-inline="no-display-inline">Section 1379D(c) of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4641">12 U.S.C. 4641(c)</external-xref>), as so redesignated by section 1056(a)(1) of this title, is further amended—</text> <paragraph id="H3310E4A544C64E3CBAD9B096D195BC4F"><enum>(1)</enum><text>by striking <quote>request the Attorney General of the United States to</quote> and inserting <quote>, in the discretion of the Director,</quote>;</text> </paragraph><paragraph id="H54D1351FA4DD4A36915E32B3C69C0033"><enum>(2)</enum><text>by inserting <quote>or request that the Attorney General of the United States bring such an action,</quote> after <quote>District of Columbia,</quote>; and</text> </paragraph><paragraph id="H0D56614E11BD4011B464256F3CCC21D9"><enum>(3)</enum><text>by striking <quote>or may, under the direction and control of the Attorney General, bring such an action</quote>.</text> </paragraph></section><section id="HAE049776EC3C4727B9FC3ECC337EC900"><enum>1059.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Subtitle C of title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631 et seq.</external-xref>)</act-name>, as amended by the preceding provisions of this title, is amended—</text> <paragraph id="H5F9989B365F74EE6B81F1DFB1FB48B24"><enum>(1)</enum><text>in section 1372(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/12/4632">12 U.S.C. 4632(c)</external-xref>), by striking <quote>that enterprise</quote> and inserting <quote>that regulated entity</quote>;</text> </paragraph><paragraph id="H2C26A7696A7C474EA1172E096679008B"><enum>(2)</enum><text>in section 1379 (<external-xref legal-doc="usc" parsable-cite="usc/12/4637">12 U.S.C. 4637</external-xref>), as so redesignated by section 1056(a)(1) of this title—</text> <subparagraph id="HBDE29B79DF16466786FF54F37067834E"><enum>(A)</enum><text>by inserting <quote>, or of a regulated entity-affiliated party,</quote> before <quote>shall not affect</quote>; and</text> </subparagraph><subparagraph id="H7C931E8C280944EC9925C51E53F7A52D"><enum>(B)</enum><text>by striking <quote>such director or executive officer</quote> each place such term appears and inserting <quote>such director, executive officer, or regulated entity-affiliated party</quote>;</text> </subparagraph></paragraph><paragraph id="HDE957DCAD06B4ECDB5DC47D84472BD62"><enum>(3)</enum><text>in section 1379A (<external-xref legal-doc="usc" parsable-cite="usc/12/4638">12 U.S.C. 4638</external-xref>), as so redesignated by section 1056(a)(1) of this title, by inserting <quote>or against a regulated entity-affiliated party,</quote> before <quote>or impair</quote>;</text> </paragraph><paragraph id="H4F652D36B364425B94009F1D00A97C9F"><enum>(4)</enum><text>by striking <quote>An enterprise</quote> each place such term appears in such subtitle and inserting <quote>A regulated entity</quote>;</text> </paragraph><paragraph id="HA1F76FE939564A00B900CA11BDC46F35"><enum>(5)</enum><text>by striking <quote>an enterprise</quote> each place such term appears in such subtitle and inserting <quote>a regulated entity</quote>;</text> </paragraph><paragraph id="H1ABB1D34458F4D65969DB666E9746947"><enum>(6)</enum><text>by striking <quote>the enterprise</quote> each place such term appears in such subtitle and inserting <quote>the regulated entity</quote>; and</text> </paragraph><paragraph id="H911FB16B8D5842CAA1FBD18C5E4000F1"><enum>(7)</enum><text>by striking <quote>any enterprise</quote> each place such term appears in such subtitle and inserting <quote>any regulated entity</quote>.</text> </paragraph></section></chapter><chapter id="H6F76956CA67C4CF59D3F4027124F9CC3"><enum>5</enum><header>General Provisions</header> <section id="H13AD828078E347A69B0320064DF006E8"><enum>1061.</enum><header>Boards of enterprises</header> <subsection id="HAAE88D0A9F514A9C99EE008761C5FC22"><enum>(a)</enum><header>Fannie mae</header> <paragraph id="H4D119184F2A349DC80D9A733E45EBCDF"><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="H49FACCE4EA934CBFB0DEE1A5A6B0C3E3"><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="H8869F21EC4D54467961211DD70CDD0E3"><enum>(B)</enum><text>in the second sentence, by striking <quote>appointed by the President</quote>;</text> </subparagraph><subparagraph id="H7952B1D4AA214867B9F56FE45EEA418"><enum>(C)</enum><text display-inline="yes-display-inline">in the third sentence—</text> <clause id="H555193725EB444B8848EE639456D99E4"><enum>(i)</enum><text>by striking <quote>appointed or</quote>; and</text> </clause><clause id="HFAC3112211D545B39DF7261C1500B95C"><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="H04519A9EA78C4D3DA220A9F9007B19F1"><enum>(D)</enum><text>in the fourth sentence, by striking <quote>elective</quote>; and</text> </subparagraph><subparagraph id="HA08AEF8123934738B4F58ED0345BC5B8"><enum>(E)</enum><text>by striking the fifth sentence.</text> </subparagraph></paragraph><paragraph id="H63F2B7B685114FC4B9C2983BAA7B8EC"><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 1065 occurs.</text> </paragraph></subsection><subsection id="HD418B2B90DD040A993108B23A2990056"><enum>(b)</enum><header>Freddie mac</header> <paragraph id="H8AAC5EE006124543A3BC9E66F6CEB254"><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="H60A1C54D305A46A096A071FA8536BA74"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text> <clause id="HE634F68DEED848468C5645270000D2C8"><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="HE27BEAECFCE64E1E957FE6A8DFB9DC23"><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="H5D92D7B7FAAD4F5680D48F922E4E9F75"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text> <clause id="HECB8E6E77DA542F4B9D5D17EF069EE60"><enum>(i)</enum><text>by striking <quote>such or</quote>; and</text> </clause><clause id="HC271F1E1DF7545D9AB50B192B45B7300"><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="HB64A0C9C5E2D4C38A6531E965C4CC2E8"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text> <clause id="H71B6E1DB34AA4A479644F94589081254"><enum>(i)</enum><text>by striking the first sentence; and</text> </clause><clause id="H9B4DD9F39A5D4B85B699DEC74407D2F9"><enum>(ii)</enum><text>by striking <quote>elective</quote>.</text> </clause></subparagraph></paragraph><paragraph id="HA501B36CADF84EDFACCAB31B4BB815B"><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 1065 occurs.</text> </paragraph></subsection></section><section id="HE86572B00F3B46F5BD2F72A8295F2617"><enum>1062.</enum><header>Report on portfolio operations, safety and soundness, and mission of enterprises</header><text display-inline="no-display-inline">Not later than the expiration of the 12-month period beginning on the effective date under section 1065, the Director of the Federal Housing Finance Agency shall submit a report to the Congress which shall include—</text> <paragraph id="H0E7477003E4E4482A54CD4C14999A115"><enum>(1)</enum><text>a description of the portfolio holdings of the enterprises (as such term is defined in section 1303 of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502</external-xref>)) in mortgages (including whole loans and mortgage-backed securities), non-mortgages, and other assets;</text> </paragraph><paragraph id="HEF633D32148B4BA5837FC3811C962A4"><enum>(2)</enum><text>a description of the risk implications for the enterprises of such holdings and the consequent risk management undertaken by the enterprises (including the use of derivatives for hedging purposes), compared with off-balance sheet liabilities of the enterprises (including mortgage-backed securities guaranteed by the enterprises);</text> </paragraph><paragraph id="HEC9C3F6E250E4F948E2B672C401C29E1"><enum>(3)</enum><text>an analysis of portfolio holdings for safety and soundness purposes;</text> </paragraph><paragraph id="H48818EFCF52247C6A71BA18277D513F8"><enum>(4)</enum><text>an assessment of whether portfolio holdings fulfill the mission purposes of the enterprises under the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name> and the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>; and</text> </paragraph><paragraph id="H006084FCBD914E41921FB834BBCC29EC"><enum>(5)</enum><text>an analysis of the potential systemic risk implications for the enterprises, the housing and capital markets, and the financial system of portfolio holdings, and whether such holdings should be limited or reduced over time.</text> </paragraph></section><section id="HC081C26C4444408C800045D000EDC74D"><enum>1063.</enum><header>Conforming and technical amendments</header> <subsection id="H1BBDC91E9A07450A92E75EEF48C05595"><enum>(a)</enum><header>1992 Act</header><text>Title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name> is amended by striking section 1383 (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451</external-xref> note).</text> </subsection><subsection id="H7074984AB43349039BEB9E85B79417AE"><enum>(b)</enum><header>Title <enum-in-header>18</enum-in-header>, United States Code</header><text>Section 1905 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="HDB6565DB1E03498E007F67A7ACD87FC1"><enum>(c)</enum><header>Flood Disaster Protection Act of 1973</header><text>Section 102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(f)(3)(A)</external-xref>) is amended by striking <quote>Director of the 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="HB1B853202EB74928BFA21C066BACB759"><enum>(d)</enum><header>Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name></header><text>Section 5 of the Department of <act-name parsable-cite="HUDA">Housing and Urban Development Act</act-name> (42 U.S.C. 3534) is amended by striking subsection (d).</text> </subsection><subsection id="HE082BBE1867D40078BFEC182AAC4BF54"><enum>(e)</enum><header>Title <enum-in-header>5</enum-in-header>, United States Code</header> <paragraph id="HB013B36BBDA04CBE949EE30413971800"><enum>(1)</enum><header>Director’s pay rate</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5313">Section 5313</external-xref> of title 5, United States Code, is amended 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 display-inline="no-display-inline" id="H8AC92F9A46774FA39D50C3EC7DA5D5BB" style="USC"><list level="paragraph"> <list-item>Director of the Federal Housing Finance Agency.</list-item></list> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HA7D4965144604AD89E250204588B9D10"><enum>(2)</enum><header>Exclusion from senior executive service</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/3132">Section 3132(a)(1)(D)</external-xref> of title 5, United States Code, is amended—</text> <subparagraph id="HF3702E9118124CE49D8C160089829CA5"><enum>(A)</enum><text>by striking <quote>the Federal Housing Finance Board,</quote>; and</text> </subparagraph><subparagraph id="H284F200895AD4663B021BB480077E8B2"><enum>(B)</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>.</text> </subparagraph></paragraph></subsection><subsection id="HE8E741C4A3834C4589CEE24B1F8E5475"><enum>(f)</enum><header>Inspector General Act of 1978</header><text>Section 8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking <quote>Federal Housing Finance Board</quote> and inserting <quote>Federal Housing Finance Agency</quote>.</text> </subsection><subsection id="H4F37F7524E224605A17033DE3DA0500"><enum>(g)</enum><header><act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name></header><text>Section 11(t)(2)(A) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.1821(t)(2)(A)) is amended by adding at the end the following new clause:</text> <quoted-block act-name="Federal Deposit Insurance Act" id="H1B74D6D1031F42BE872DCC2BB62C27BF" style="OLC"> <clause id="H97CA1850BBFE4D29A0178D88A4CEBC"><enum>(vii)</enum><text>The Federal Housing Finance Agency.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9C592E5F51934FACB4A987B5C4B9BEED"><enum>(h)</enum><header>1997 Emergency Supplemental Appropriations Act</header><text>Section 10001 of the 1997 Emergency Supplemental Appropriations Act for Recovery From Natural Disasters, and for Overseas Peacekeeping Efforts, Including Those In Bosnia (42 U.S.C. 3548) is amended—</text> <paragraph id="HF8CC2210378A4688AF847D2C127BB9E5"><enum>(1)</enum><text>by striking <quote>the Government National Mortgage Association, and the Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>and the Government National Mortgage Association</quote>; and</text> </paragraph><paragraph id="HEFAE70C1875946268020BD86A3117C59"><enum>(2)</enum><text>by striking <quote>, the Government National Mortgage Association, or the Office of Federal Housing Enterprise Oversight</quote> and inserting <quote>or the Government National Mortgage Association</quote>.</text> </paragraph></subsection><subsection id="H21185410F58445EE91D691C0D28248C2"><enum>(i)</enum><header>National Homeownership Trust Act</header><text>Section 302(b)(4) of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12851">42 U.S.C. 12851(b)(4)</external-xref>) is amended by striking <quote>the chairperson of the Federal Housing Finance Board</quote> and inserting <quote>the Director of the Federal Housing Finance Agency</quote>.</text> </subsection></section><section id="H8A0237234C7E49E3AB4154702E22F758"><enum>1064.</enum><header>Study of alternative secondary market systems</header> <subsection id="HEF940ED6AE5F4AE5B3BB8E17D809F66C"><enum>(a)</enum><header>In General</header><text>The Director of the Federal Housing Finance Agency, in consultation with the Board of Governors of the Federal Reserve System, the Secretary of the Treasury, and the Secretary of Housing and Urban Development, shall conduct a comprehensive study of the effects on financial and housing finance markets of alternatives to the current secondary market system for housing finance, taking into consideration changes in the structure of financial and housing finance markets and institutions since the creation of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text> </subsection><subsection id="H61597C8B505B4681B52C5B7FEC009C78"><enum>(b)</enum><header>Contents</header><text>The study under this section shall—</text> <paragraph id="H70C394728C5F41CFAA163B6E005D9F3B"><enum>(1)</enum><text>include, among the alternatives to the current secondary market system analyzed—</text> <subparagraph id="H661717428ECC4E23A515A1DCDB5C8F47"><enum>(A)</enum><text>repeal of the chartering Acts for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;</text> </subparagraph><subparagraph id="H713110FEF434457584FCC7415777F381"><enum>(B)</enum><text>establishing bank-like mechanisms for granting new charters for limited purposed mortgage securitization entities;</text> </subparagraph><subparagraph id="HC714536D2BEA4D6BBAC6006000630006"><enum>(C)</enum><text>permitting the Director of the Federal Housing Finance Agency to grant new charters for limited purpose mortgage securitization entities, which shall include analyzing the terms on which such charters should be granted, including whether such charters should be sold, or whether such charters and the charters for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation should be taxed or otherwise assessed a monetary price; and</text> </subparagraph><subparagraph id="H70A1BF953C26438DB597FADA41CDEFAE"><enum>(D)</enum><text>such other alternatives as the Director considers appropriate;</text> </subparagraph></paragraph><paragraph id="H55DF4CB0B629421F8EE983DB1F8D3843"><enum>(2)</enum><text>examine all of the issues involved in making the transition to a completely private secondary mortgage market system;</text> </paragraph><paragraph id="H63CC595C1BC849AD8BB92319C058F5C5"><enum>(3)</enum><text>examine the technological advancements the private sector has made in providing liquidity in the secondary mortgage market and how such advancements have affected liquidity in the secondary mortgage market; and</text> </paragraph><paragraph id="H919D510DA2CA49068DB880819D215D5C"><enum>(4)</enum><text>examine how taxpayers would be impacted by each alternative system, including the complete privatization of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text> </paragraph></subsection><subsection id="HAB3255B8E5E84EC3A9B76CBA45C811F1"><enum>(c)</enum><header>Report</header><text>The Director of the Federal Housing Finance Agency shall submit a report to the Congress on the study not later than the expiration of the 24-month period beginning on the effective date under section 1065.</text> </subsection></section><section display-inline="no-display-inline" id="H3B02FDA226AF4FC2B8B9A21687D1FEEA" section-type="subsequent-section"><enum>1065.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as specifically provided otherwise in this subtitle, this subtitle shall take effect on and the amendments made by this subtitle shall take effect on, and shall apply beginning on, the expiration of the 6-month period beginning on the date of the enactment of this Act.</text> </section></chapter></subtitle><subtitle id="HF816CE8CF88D4387BF00AA89F9F87EA"><enum>B</enum><header>Federal home loan banks</header> <section id="HC0B64F00FF0B4D15BFAE772CF19462BB"><enum>1071.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 2 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C. 1422) is amended—</text> <paragraph id="H220C6FECF5C34417BE29B529C78AF87"><enum>(1)</enum><text>by striking paragraphs (1), (10), and (11);</text> </paragraph><paragraph id="H90D1AF89B25F4ADC87D7B33C91EE32C"><enum>(2)</enum><text>by redesignating paragraphs (2) through (9) as paragraphs (1) through (8), respectively;</text> </paragraph><paragraph id="H248BA559C93447428CA2CE59CB84013"><enum>(3)</enum><text>by redesignating paragraphs (12) and (13) as paragraphs (9) and (10), respectively; and</text> </paragraph><paragraph id="H0C4CD443715F491B873FB7CEEDA766A6"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block id="H94A66542A14647C0BDA9056839D613DC" style="OLC"> <paragraph id="HAAE961DAC30E4383BC886842CEBB78C7"><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="H8A5E1BA75641497AB4BC005017BEDDEF"><enum>(12)</enum><header>Agency</header><text>The term <term>Agency</term> means the Federal Housing Finance Agency.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HD65F8086CDE3417282E4DBACBBBDCEB"><enum>1072.</enum><header>Directors</header> <subsection id="HF8B15CC76F0546FC0026CF5641DCE29F"><enum>(a)</enum><header>Election</header><text>Section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427</external-xref>) is amended—</text> <paragraph id="H5ADF1685CCB944A493104BFDBF186419"><enum>(1)</enum><text>by striking subsection (a) and inserting the following:</text> <quoted-block id="H45336E87A09A41338DA33E8C353E2E" style="OLC"> <subsection id="H930A253824654AA9B6B73FFEBA076C2B"><enum>(a)</enum><header>Number; Election; Qualifications; Conflicts of Interest</header> <paragraph id="H05926DB162D64EA5A761BCA57560DA37"><enum>(1)</enum><header>In general</header><text>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, each of whom shall be a citizen of the United States. All directors of a Bank who are not independent directors pursuant to paragraph (3) shall be elected by the members.</text> </paragraph><paragraph id="H27F54C22D9734ADCA792627200C78FE7"><enum>(2)</enum><header>Member directors</header><text>A majority of the directors of each Bank shall be officers or directors of a member of such Bank that is located in the district in which such Bank is located.</text> </paragraph><paragraph id="H58D208F3D1C746F389EC2ABAF406395"><enum>(3)</enum><header>Independent directors</header><text display-inline="yes-display-inline">At least two-fifths of the directors of each Bank shall be independent directors, who shall be appointed by the Director of the Federal Housing Finance Agency from a list of individuals recommended by the Federal Housing Enterprise Board. The Federal Housing Enterprise Board may recommend individuals who are identified by the Board’s own independent process or included on a list of individuals recommended by the board of directors of the Bank involved, which shall be submitted to the Federal Housing Enterprise Board by such board of directors. The number of individuals on any such list submitted by a Bank’s board of directors shall be equal to at least two times the number of independent directorships to be filled. All independent directors appointed shall meet the following criteria:</text> <subparagraph id="H008802FE709A4CCF979FEDA9AAFDDCEA"><enum>(A)</enum><header>In general</header><text>Each independent director shall be a bona fide resident of the district in which such Bank is located.</text> </subparagraph><subparagraph id="H2636CFC9284E447EB7E8005F000047FA"><enum>(B)</enum><header>Public interest directors</header><text>At least 2 of the independent directors under this paragraph of each Bank shall be representatives chosen from organizations with more than a 2-year history of representing consumer or community interests on banking services, credit needs, housing, community development, economic development, or financial consumer protections.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H2ECA05C84C4A4885ACCAA9B7EDC10068"><enum>(C)</enum><header>Other directors</header> <clause id="H832A434A9B174D2195B7C2DED524E918"><enum>(i)</enum><header>Qualifications</header><text>Each independent director that is not a public interest director under subparagraph (B) 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="H3022E9C7D57146D58E99413CF5D7D368"><enum>(ii)</enum><header>Consultation with banks</header><text display-inline="yes-display-inline">In appointing other directors to serve on the board of a Federal home loan bank, the Director of the Federal Housing Finance Agency may consult with each Federal home loan bank about the knowledge, skills, and expertise needed to assist the board in better fulfilling its responsibilities.</text> </clause></subparagraph><subparagraph id="H77D5C4415D38482A982F155168A08D02"><enum>(D)</enum><header>Conflicts of interest</header><text>Notwithstanding subsection (f)(2), an independent director under this paragraph of a Bank may not, during such director’s term of office, serve as an officer of any Federal Home Loan Bank or as a director or officer of any member of a Bank.</text> </subparagraph><subparagraph id="H194958E8C655454FA5C0F4F64E5C6D1E"><enum>(E)</enum><header>Community demographics</header><text>In appointing independent directors of a Bank pursuant to this paragraph, the Director shall take into consideration the demographic makeup of the community most served by the Affordable Housing Program of the Bank pursuant to section 10(j).</text> </subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H74754C60B1BE427B925ECB9F1D001B7B"><enum>(2)</enum><text>in the first sentence of subsection (b), by striking <quote>elective directorship</quote> and inserting <quote>member directorship established pursuant to subsection (a)(2)</quote>;</text> </paragraph><paragraph display-inline="no-display-inline" id="H4661D1CC3955479E8FE2B4518C4D6F5F"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="HC88BD27B0BBC4DA699216C20B4FC6E4E"><enum>(A)</enum><text>by striking <quote>elective</quote> each place such term appears and inserting <quote>member</quote>, except—</text> <clause id="H6AF91747617849428961C0A381CF1F2C"><enum>(i)</enum><text>in the second sentence, the second place such term appears; and</text> </clause><clause id="H8374410334824CE789FEEE313BF100A0"><enum>(ii)</enum><text>each place such term appears in the fifth sentence;</text> </clause></subparagraph><subparagraph display-inline="no-display-inline" id="HE0CF59BDF95B4F4DA740AD932492FA17"><enum>(B)</enum><text>in the first sentence, by inserting after <quote>less than one</quote> the following: <quote>or two, as determined by the board of directors of the appropriate Federal home loan bank,</quote>; and</text> </subparagraph><subparagraph id="HB4E8AB657B2847C2871B6BFF26B3A7C6"><enum>(C)</enum><text>in the second sentence—</text> <clause id="H7782CAA757324AE8AF6831B1269EF167"><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 id="H3C25C2E5231C4E0EB2F0C9AC57ACBB8C"><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 two or more such banks</quote>; and</text> </clause></subparagraph></paragraph><paragraph id="HC742C6B2B415426AAE6CD6D18312AAFA"><enum>(4)</enum><text>by striking <quote>elective</quote> each place such term appears (except in subsections (c), (e), and (f)).</text> </paragraph></subsection><subsection id="H55BC0D63CF8C4225B053B9704900E2EC"><enum>(b)</enum><header>Terms</header> <paragraph id="H9A9EEA3E0B8B4F6FBEBFB98F60FAA3E6"><enum>(1)</enum><header>In general</header><text>Section 7(d) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(d)</external-xref>) is amended—</text> <subparagraph id="H1582B21878E4462B96F723F2BBEB609"><enum>(A)</enum><text>in the first sentence, by striking <quote>3 years</quote> and inserting <quote>4 years</quote>; and</text> </subparagraph><subparagraph id="H16F6F5E7A663484DA722413CF5F6246C"><enum>(B)</enum><text>in the second sentence—</text> <clause id="HBE276DD07F1C40649797A836DE828D4D"><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 Reform Act of 2008</short-title></quote>; and</text> </clause><clause id="HBB8EA3F555574E8AB1006C44503B8E7D"><enum>(ii)</enum><text>by striking <quote>1/3</quote> and inserting <quote>1/4</quote>.</text> </clause></subparagraph></paragraph><paragraph id="HEE35FBBB254B4352997EC535ED81F53"><enum>(2)</enum><header>Savings provision</header><text>The amendments made by paragraph (1) shall not apply to the term of office of any director of a Federal home loan bank who is serving as of the effective date of this subtitle under section 1081, including any director elected to fill a vacancy in any such office.</text> </paragraph></subsection><subsection id="H00050F8C96474216AB3E3CD8F926D9AA"><enum>(c)</enum><header>Continued Service of Independent Directors After Expiration of Term</header><text>Section 7(f)(2) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(f)(2)</external-xref>) is amended—</text> <paragraph id="H74872108FBA24C5D97C1D368728C042D"><enum>(1)</enum><text>in the second sentence, by striking <quote>or the term of such office expires, whichever occurs first</quote>;</text> </paragraph><paragraph id="H5DCF7F0C7702482CB794600076ECDB8D"><enum>(2)</enum><text>by adding at the end the following new sentence: <quote>An independent Bank director may continue to serve as a director after the expiration of the term of such director until a successor is appointed.</quote>;</text> </paragraph><paragraph id="HB5B5E5D6363A44C3996EEDD666D58F9"><enum>(3)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">Appointed</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Independent</header-in-text></quote>; and</text> </paragraph><paragraph id="HC5180DBBC19F48D39BB3D28CF9133C84"><enum>(4)</enum><text>by striking <quote>appointive</quote> each place such term appears and inserting <quote>independent</quote>.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HA69394E4ED2241D7008D7E345D53D8B4"><enum>(d)</enum><header>Conforming amendments</header><text>Section 7(f)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1427(f)(3)) is amended—</text> <paragraph id="H58021491488C4E128E8786C9D86398C2"><enum>(1)</enum><text display-inline="yes-display-inline">in the paragraph heading, by striking <quote><header-in-text level="paragraph" style="OLC">Elected</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Member</header-in-text></quote>; and</text> </paragraph><paragraph id="H5871F9C1ED5742DDBCE6FE5CC8F36613"><enum>(2)</enum><text>by striking <quote>elective</quote> each place such term appears in the first and third sentences and inserting <quote>member</quote>.</text> </paragraph></subsection><subsection id="HFB9298222A9E4EF7BC6156B0640181C9"><enum>(e)</enum><header>Compensation</header><text>Subsection (i) of section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(i)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Federal Home Loan Bank Act" id="H8512340B74F9495E9445B4BB0468C4D" style="OLC"> <subsection id="H08192B11CE004C059BC89DF3355460B5"><enum>(i)</enum><header>Directors’ Compensation</header> <paragraph id="HF9B9D985ECFE4FDC934CEFEAA6D0AEB"><enum>(1)</enum><header>In general</header><text>Each Federal home loan bank may pay the directors on the board of directors for the bank reasonable and appropriate compensation for the time required of such directors, and reasonable and appropriate expenses incurred by such directors, in connection with service on the board of directors, in accordance with resolutions adopted by the board of directors and subject to the approval of the Director.</text> </paragraph><paragraph id="HE8EAE38124F54BD48DB4B018307C8214"><enum>(2)</enum><header>Annual report by the board</header><text>The Director shall include, in the annual report submitted to the Congress pursuant to section 1319B of the <act-name parsable-cite="FHEFSSA">Federal Housing Enterprises Financial Safety and Soundness Act of 1992</act-name>, 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></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HC033A902F3864992ABF506C4092EFB9F"><enum>(f)</enum><header>Transition Rule</header><text>Any member of the board of directors of a Federal Home Loan Bank serving as of the effective date under section 1081 may continue to serve as a member of such board of directors for the remainder of the term of such office as provided in section 7 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name>, as in effect before such effective date.</text> </subsection></section><section id="HF46F7010EF874C41A910CA3E7D68A992"><enum>1073.</enum><header>Federal Housing Finance Agency oversight of Federal Home Loan Banks</header><text display-inline="no-display-inline">The <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<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 title, is amended—</text> <paragraph id="HEFEF627D631E4669AD877CC081D8AD91"><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="H87AFCDF49EA6429189296CC241B3CE0"><enum>(2)</enum><text>in section 6 (<external-xref legal-doc="usc" parsable-cite="usc/12/1426">12 U.S.C. 1426(b)(1)</external-xref>)—</text> <subparagraph id="H7CCBC1964CFF44BF0000B3CE95301630"><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="HB73E2417821440ECA348206E60AD2482"><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="H0DDEC8AC253C468F91AF503369500000"><enum>(3)</enum><text>in section 8 (12 U.S.C. 1428), in the section heading, by striking <quote><header-in-text level="section" style="traditional">by the board</header-in-text></quote>;</text> </paragraph><paragraph id="HFCFC9469C98F4EAA82F406E54489183"><enum>(4)</enum><text>in section 10(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(b)</external-xref>), by striking <quote>by formal resolution</quote>;</text> </paragraph><paragraph display-inline="no-display-inline" id="H0D9DB9B671AA458FAAC77E00772E8951"><enum>(5)</enum><text>in section 10 (12 U.S.C. 1430), by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H4BFCC4F91FC64FFEA02C87A7B497800" style="OLC"> <subsection id="HA4DCC607F6774CB2B2334F1FABC26B9E"><enum>(k)</enum><header>Monitoring and enforcing compliance with affordable housing and community investment program requirements</header><text display-inline="yes-display-inline">The requirements under subsection (i) and (j) that the Banks establish Community Investment and Affordable Housing Programs, respectively, and contribute to the Affordable Housing Program, shall be enforceable by the Director with respect to the Banks in the same manner and to the same extent as the housing goals under subpart B of part 2 of subtitle A of title XIII of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561">12 U.S.C. 4561 et seq.</external-xref>) are enforceable under section 1336 of such Act with respect to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text> </subsection><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="HFD48382421644F5095E1645DBF992CE"><enum>(6)</enum><text>in section 11 (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431</external-xref>)—</text> <subparagraph id="HA284F1D700574CF0ABF7001BE8FBCB93"><enum>(A)</enum><text>in subsection (b)—</text> <clause id="H5432761DB57F46B5A43E500551A2571D"><enum>(i)</enum><text>in the first sentence—</text> <subclause id="H8377682B83C64F4FA475C4EB20EFFCCB"><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="H097F2B8C74374185A1E9E6A05FACE5C3"><enum>(II)</enum><text>by striking <quote>the Board</quote> and inserting <quote>such Office</quote>; and</text> </subclause></clause><clause id="H7EF739A6B84B4298A3214DA8E025A2C5"><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="H87503E39837D4C04BB9903E2A62448C2"><enum>(B)</enum><text>in subsection (c)—</text> <clause id="H73DDB5E958BF4F0DA7B3FE304D4703CB"><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="H1EF29DF5F64B4A8EB11717ABC60753CB"><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="H7DEF388E710641B0B206503F18EC1244"><enum>(C)</enum><text>in subsection (f)—</text> <clause id="HE644385BAE5A45F9AB666EBCB45B197F"><enum>(i)</enum><text>by striking the two commas after <quote>permit</quote> and inserting <quote>or</quote>; and</text> </clause><clause id="H1B3A58DF3A01417CBEBD61CE56F8C9EA"><enum>(ii)</enum><text>by striking the comma after <quote>require</quote>;</text> </clause></subparagraph></paragraph><paragraph id="H22099A974CC2439DAF7BEB3849AE0887"><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="HBFBB5CB914804F94AAC03F2B4F932ED2"><enum>(8)</enum><text>in section 18 (12 U.S.C. 1438), by striking subsection (b);</text> </paragraph><paragraph id="HD0FCD27AFCCB4173BDD6152711EBCC29"><enum>(9)</enum><text>in section 21 (12 U.S.C. 1441)—</text> <subparagraph id="H52B9E876816B48E79B3451EDEE4EBEA"><enum>(A)</enum><text>in subsection (b)—</text> <clause id="HE4BA49FE4A8D4B1493B33606EEC7A0A5"><enum>(i)</enum><text>in paragraph (5), by striking <quote>Chairperson of the Federal Housing Finance Board</quote> and inserting <quote>Director</quote>; and</text> </clause><clause id="HFE81029BBAC6412200CBFACA71D8BFD5"><enum>(ii)</enum><text>in the heading for paragraph (8), by striking <quote><header-in-text level="paragraph">federal housing finance board</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">director</header-in-text></quote>; and</text> </clause></subparagraph><subparagraph id="H3E6FB4B1215F4A9C9C6CCEF72546D394"><enum>(B)</enum><text>in subsection (i), in the heading for paragraph (2), by striking <quote><header-in-text level="paragraph">Federal housing finance board</header-in-text></quote> and inserting <quote><header-in-text level="paragraph">Director</header-in-text></quote>;</text> </subparagraph></paragraph><paragraph id="H3155C76696F345EB882265146CFCD7CE"><enum>(10)</enum><text>in section 23 (12 U.S.C. 1443), by striking <quote>Board of Directors of the Federal Housing Finance Board</quote> and inserting <quote>Director</quote>;</text> </paragraph><paragraph id="H26B2BBCAE5D34C788768D8B0E04900C8"><enum>(11)</enum><text>by striking <quote>the Board</quote> each place such term appears in such Act (except in section 15 (<external-xref legal-doc="usc" parsable-cite="usc/12/1435">12 U.S.C. 1435</external-xref>), section 21(f)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/1441">12 U.S.C. 1441(f)(2)</external-xref>), subsections (a), (k)(2)(B)(i), and (n)(6)(C)(ii) of section 21A (12 U.S.C. 1441a), subsections (f)(2)(C), and (k)(7)(B)(ii) of section 21B (12 U.S.C. 1441b), and the first two places such term appears in section 22 (12 U.S.C. 1442)) and inserting <quote>the Director</quote>;</text> </paragraph><paragraph id="H7E1D83FF38BE46D1B8E0B836E53E1EA8"><enum>(12)</enum><text>by striking <quote>The Board</quote> each place such term appears in such Act (except in sections 7(e) (<external-xref legal-doc="usc" parsable-cite="usc/12/1427">12 U.S.C. 1427(e)</external-xref>), and 11(b) (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431(b)</external-xref>)) and inserting <quote>The Director</quote>;</text> </paragraph><paragraph id="HB4C3853E06F84EEF9195C6C08E16FD3"><enum>(13)</enum><text>by striking <quote>the Board’s</quote> each place such term appears in such Act and inserting <quote>the Director’s</quote>;</text> </paragraph><paragraph id="H5945FFCB093646BB83E859E3857C8563"><enum>(14)</enum><text>by striking <quote>The Board’s</quote> each place such term appears in such Act and inserting <quote>The Director’s</quote>;</text> </paragraph><paragraph id="H0C935E875B2845DEA1A4EB94926FDAC"><enum>(15)</enum><text>by striking <quote>the Finance Board</quote> each place such term appears in such Act and inserting <quote>the Director</quote>;</text> </paragraph><paragraph id="HA7E2A3F6D23E4BFE88024B5BA923BDDF"><enum>(16)</enum><text>by striking <quote>Federal Housing Finance Board</quote> each place such term appears and inserting <quote>Director</quote>;</text> </paragraph><paragraph id="H0E1A43131C8D410C8D71DEFBEE870EF"><enum>(17)</enum><text>in section 11(i) (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431(i)</external-xref>, by striking <quote>the Chairperson of</quote>; and</text> </paragraph><paragraph id="H3C27804D395F4BE4AF00C7E000B0D4C7"><enum>(18)</enum><text>in section 21(e)(9) (<external-xref legal-doc="usc" parsable-cite="usc/12/1441">12 U.S.C. 1441(e)(9)</external-xref>), by striking <quote>Chairperson of the</quote>.</text> </paragraph></section><section id="H35C0A3EFF7BA452D005D630507C49C15"><enum>1074.</enum><header>Joint activities of Banks</header><text display-inline="no-display-inline">Section 11 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="Federal Home Loan Bank Act" id="H5AA48CF3B1DD4F32A180E4117E8E0845" style="OLC"> <subsection id="HE3FA4712B1A94CDF00F001BF76BE5EAE"><enum>(l)</enum><header>Joint Activities</header><text>Subject to the regulation of the Director, any two or more Federal Home Loan Banks may establish a joint office for the purpose of performing functions for, or providing services to, the Banks on a common or collective basis, or may require that the Office of Finance perform such functions or services, but only if the Banks are otherwise authorized to perform such functions or services individually.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H79A7099B88DC413C896EC35E9571FEA7"><enum>1075.</enum><header>Sharing of information between Federal Home Loan Banks</header> <subsection id="H535843E27F4349288DE768389BED23F2"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> 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 act-name="Federal Home Loan Bank Act" id="HF658F6939E314BA2A81F3FDA6123FE26" style="OLC"> <section id="H2FE6FE42317844EAB4D15000A3CD1B8C"><enum>20A.</enum><header>Sharing of information between Federal Home Loan Banks</header> <subsection id="HCC45BB50742547B8826663D390C14893"><enum>(a)</enum><header>Regulatory Authority</header><text>The Director shall prescribe such regulations as may be necessary to ensure that each Federal Home Loan Bank has access to information that the Bank needs to determine the nature and extent of its joint and several liability.</text> </subsection><subsection id="H860A4C9666E841A586AD4E8C343431C8"><enum>(b)</enum><header>No Waiver of Privilege</header><text>The Director shall not be deemed to have waived any privilege applicable to any information concerning a Federal Home Loan Bank by transferring, or permitting the transfer of, that information to any other Federal Home Loan Bank for the purpose of enabling the recipient to evaluate the nature and extent of its joint and several liability.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H25BE54CF85BF4CC6BA8EBA7EEC00A146"><enum>(b)</enum><header>Regulations</header><text>The regulations required under the amendment made by subsection (a) shall be issued in final form not later than 6 months after the effective date under section 1081 of this title.</text> </subsection></section><section id="H7F251E82A22542C9B1A100691092A96B"><enum>1076.</enum><header>Reorganization of Banks and voluntary merger</header><text display-inline="no-display-inline">Section 26 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C. 1446) is amended—</text> <paragraph id="HE5C0451FBB74432AB06F29E76EC82D3B"><enum>(1)</enum><text>by inserting <quote>(a) <header-in-text level="subsection" style="OLC">Reorganization</header-in-text>.—</quote> before <quote>Whenever</quote>; and</text> </paragraph><paragraph id="HC76ED22A0B5643B0B95800AB5008F33"><enum>(2)</enum><text>by striking <quote>liquidated or</quote> each place such phrase appears;</text> </paragraph><paragraph id="H685AB9E53B4D485B8800B4C47F001DA2"><enum>(3)</enum><text>by striking <quote>liquidation or</quote>; and</text> </paragraph><paragraph id="H3458ECC42D7F441C8DAAC26F03B01B1"><enum>(4)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="H8FCD711E3E4E44339D1DB2A25C197CF5" style="OLC"> <subsection id="H8A9B945B0A874AEB00004460FB69C607"><enum>(b)</enum><header>Voluntary Mergers</header><text>Any two or more Banks may, with the approval of the Director, and the approval of the boards of directors of the Banks involved, merge. The Director shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any such voluntary merger, including the procedures for Bank member approval.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="H067D35FF59CF4189A47FB32D088302C0"><enum>1077.</enum><header>Securities and Exchange Commission disclosure</header> <subsection id="H24C6B55E305A432DA3386152C7BCDCCA"><enum>(a)</enum><header>In General</header><text>The Federal Home Loan Banks shall be exempt from compliance with—</text> <paragraph id="H6DF33D8282B4448CAAB0A760000A2E0"><enum>(1)</enum><text>sections 13(e), 14(a), 14(c), and 17A of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and related Commission regulations; and</text> </paragraph><paragraph id="HFDF25B05EFF8424889124E63E3000012"><enum>(2)</enum><text>section 15 of that Act and related Securities and Exchange Commission regulations with respect to transactions in capital stock of the Banks.</text> </paragraph></subsection><subsection id="H469893D60E42497296F0318800D814E0"><enum>(b)</enum><header>Member Exemption</header><text>The members of the Federal Home Loan Banks shall be exempt from compliance with sections 13(d), 13(f), 13(g), 14(d), and 16 of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name> and related Securities and Exchange Commission regulations with respect to their ownership of, or transactions in, capital stock of the Federal Home Loan Banks.</text> </subsection><subsection id="H66AA7668C7AB4B06A5FFD829E0C391F2"><enum>(c)</enum><header>Exempted and Government Securities</header> <paragraph id="H7253CCDC981B4315AD37A97B7B1BB8C3"><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 <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> are—</text> <subparagraph id="H005B64729E4B4301BC6F41A09269A468"><enum>(A)</enum><text>exempted securities within the meaning of section 3(a)(2) of the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>; and</text> </subparagraph><subparagraph id="H40704556E8E24C2D9975E1A76CBB4C15"><enum>(B)</enum><text><quote>exempted securities</quote> within the meaning of section 3(a)(12)(A) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>.</text> </subparagraph></paragraph><paragraph id="HEEF1FC065B344128AD3EC22C6D95B39E"><enum>(2)</enum><header>Other obligations</header><text>The debentures, bonds, and other obligations issued under section 11 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> are—</text> <subparagraph id="H2CD89FBED6134623AACB30FB1B31BC9D"><enum>(A)</enum><text>exempted securities within the meaning of section 3(a)(2) of the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>;</text> </subparagraph><subparagraph id="HF5717A58BD9F41E1A14C52C277CB5FB0"><enum>(B)</enum><text><quote>government securities</quote> within the meaning of section 3(a)(42) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>;</text> </subparagraph><subparagraph id="H016008A94984469AB2E265C3F165C594"><enum>(C)</enum><text>excluded from the definition of <quote>government securities broker</quote> within section 3(a)(43) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>;</text> </subparagraph><subparagraph id="H03331DB26090454199BD5E6C5BCB93D7"><enum>(D)</enum><text>excluded from the definition of <quote>government securities dealer</quote> within section 3(a)(44) of the <act-name parsable-cite="SEA34">Securities Exchange Act of 1934</act-name>; and</text> </subparagraph><subparagraph id="HAB53F2DEB01549A78B5780A724E8008B"><enum>(E)</enum><text><quote>government securities</quote> within the meaning of section 2(a)(16) of the <act-name parsable-cite="ICA40">Investment Company Act of 1940</act-name>.</text> </subparagraph></paragraph></subsection><subsection id="H7301739D11444CD9AAF676E6E553394C"><enum>(d)</enum><header>Exemption From Reporting Requirements</header><text>The Federal Home Loan Banks shall be exempt from periodic reporting requirements pertaining to—</text> <paragraph id="H30988C6722B64D4F8203927FD59840EC"><enum>(1)</enum><text>the disclosure of related party transactions that occur in the ordinary course of business of the Banks with their members; and</text> </paragraph><paragraph id="H096F0E4409154E75913F82A8AF4100CF"><enum>(2)</enum><text>the disclosure of unregistered sales of equity securities.</text> </paragraph></subsection><subsection id="H485E5D84AF344D7F0096000000D97D71"><enum>(e)</enum><header>Tender Offers</header><text>The Securities and Exchange Commission’s rules relating to tender offers shall not apply in connection with transactions in capital stock of the Federal Home Loan Banks.</text> </subsection><subsection id="H5DB010BC11374AECB00000E97500DB82"><enum>(f)</enum><header>Regulations</header><text>In issuing any final regulations to implement provisions of this section, the Securities and Exchange Commission shall consider the distinctive characteristics of the Federal Home Loan Banks when evaluating the accounting treatment with respect to the payment to Resolution Funding Corporation, the role of the combined financial statements of the twelve Banks, the accounting classification of redeemable capital stock, and the accounting treatment related to the joint and several nature of the obligations of the Banks.</text> </subsection></section><section id="HD5187D49F4FB4D22B000E7DDA73B61F6"><enum>1078.</enum><header>Community financial institution members</header> <subsection id="H0963F1E3E1B14B6CA9DEA49BB1F6B5CA"><enum>(a)</enum><header>Total Asset Requirement</header><text>Paragraph (10) of section 2 of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C. 1422(10)), as so redesignated by section 1071(3) of this title, 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="H890FD0F3544C4153AD2BA99F2A80024"><enum>(b)</enum><header>Use of Advances for Community Development Activities</header><text>Section 10(a) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> (12 U.S.C. 1430(a)) is amended—</text> <paragraph id="HB113A2886EFA4B5AAD039DFEFA339319"><enum>(1)</enum><text>in paragraph (2)(B)—</text> <subparagraph id="H3850B2AD3B1F43F3A07456EEB073C0F9"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text> </subparagraph><subparagraph id="H5885E3D3CF8E4E54B325DB73F28E5577"><enum>(B)</enum><text>by inserting <quote>, and community development activities</quote> before the period at the end;</text> </subparagraph></paragraph><paragraph id="H97F2DE490B6344F8A15CB9F5CEDBA4D"><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="HCFFE95A488A54AFB9903FF97CC000184"><enum>(3)</enum><text>in paragraph (6)—</text> <subparagraph id="HA4B668069010413C8091DEBA4B6D70C0"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text> </subparagraph><subparagraph id="H09A0A02D61F8417AB574C00000EE74F"><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="H9DE8FA98787144278B1352B97EE1D78"><enum>1079.</enum><header>Technical and conforming amendments</header> <subsection id="HB556E2AB65D64D2FA900FA818D331BD8"><enum>(a)</enum><header><act-name parsable-cite="RFPA78">Right to Financial Privacy Act of 1978</act-name></header><text>Section 1113(o) of the <act-name parsable-cite="RFPA78">Right to Financial Privacy Act of 1978</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/3413">12 U.S.C. 3413(o)</external-xref>) is amended—</text> <paragraph id="HD7B511F92EC145879FDDC0344501BB13"><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="HBFE93281D86F483390F8682C2E814918"><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="HA226142E9FAA4A4400E9BA61B1FA6309"><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="H6A74AF4385D64173889663B16CF3E9F1"><enum>(c)</enum><header>Title <enum-in-header>18</enum-in-header>, 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, 1014, and inserting <quote>Federal Housing Finance Agency</quote>.</text> </subsection><subsection id="HADBCA9856A8F41C69C77F7B5C8AE2FCC"><enum>(d)</enum><header>MARA 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="HB428DBA084B5454690AEF0177D72C00"><enum>(e)</enum><header>Title <enum-in-header>44</enum-in-header>, United States Code</header><text>Section 3502(5) 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="HE647FD24B4BB445EA1895748900677EC"><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="H0C6249D324BE42F59989E86B85C414B5"><enum>(g)</enum><header>Sarbanes-Oxley Act of 2002</header><text display-inline="yes-display-inline">Section 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(B)(5)(b)(ii)(II)) is amended by inserting <quote>and the Director of the Federal Housing Finance Agency</quote> after <quote>Commission,</quote>.</text> </subsection></section><section id="H0933CCF71AA34B77AEC57D9246A75E00"><enum>1080.</enum><header>Study of affordable housing program use for long-term care facilities</header><text display-inline="no-display-inline">The Comptroller General shall conduct a study of the use of affordable housing programs of the Federal home loan banks under section 10(j) of the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> to determine how and the extent to which such programs are used to assist long-term care facilities for low- and moderate-income individuals, and the effectiveness and adequacy of such assistance in meeting the needs of affected communities. he Comptroller General shall submit a report to the Director of the Federal Housing Finance Agency and the Congress regarding the results of the study not later than the expiration of the 1-year period beginning on the date of the enactment of this Act. This section shall take effect on the date of the enactment of this Act.</text> </section><section id="H4A9D6C7938554F54B8C74061B2416EEC"><enum>1081.</enum><header>Effective date</header><text display-inline="no-display-inline">Except as specifically provided otherwise in this subtitle, this subtitle shall take effect on and the amendments made by this subtitle shall take effect on, and shall apply beginning on, the expiration of the 6-month period beginning on the date of the enactment of this Act.</text> </section></subtitle><subtitle id="H50F61C5457684A4180AC51EC883C625"><enum>C</enum><header>Transfer of functions, personnel, and property of Office of Federal Housing Enterprise Oversight, Federal Housing Finance Board, and Department of Housing and Urban Development</header> <chapter id="HC1AFEE6F03E446EB9B06F32DE75A6AC"><enum>1</enum><header>Office of Federal Housing Enterprise Oversight</header> <section id="H7C07BA9258F743C78F41DBA2690204E2"><enum>1085.</enum><header>Abolishment of OFHEO</header> <subsection id="H693EED1811C44A2194D7644FACB183E"><enum>(a)</enum><header>In General</header><text>Effective at the end of the 6-month period beginning on the date of the 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="HE946A9076D0947A2825490E477549E86"><enum>(b)</enum><header>Disposition of Affairs</header><text>During the 6-month period beginning on the date of the enactment of this Act, the Director of the Office of Federal Housing Enterprise Oversight shall, for the purpose of winding up the affairs of the Office of Federal Housing Enterprise Oversight and in addition to carrying out its other responsibilities under law—</text> <paragraph id="H11039B5943804D40A900BF9226395736"><enum>(1)</enum><text>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 pursuant to section 1087; and</text> </paragraph><paragraph id="H3425478C2CD64A0CAFBBADEE762F463"><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="HE9DA45652B5C4830ABE6C3032CEC1DC7"><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 employees 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 pursuant to section 1087.</text> </subsection><subsection id="H8D9D8BA292554C518EF36F1D1664A79B"><enum>(d)</enum><header>Use of Property and Services</header> <paragraph id="H2B7998DF4AE340A286D2336650B1F9A6"><enum>(1)</enum><header>Property</header><text>The Director of the Federal Housing Finance Agency may use the property of the Office of Federal Housing Enterprise Oversight to perform functions which have been transferred to the Director of the Federal Housing Finance Agency for such time as is reasonable to facilitate the orderly transfer of functions transferred pursuant to any other provision of this title or any amendment made by this title to any other provision of law.</text> </paragraph><paragraph id="H3F285B8248D1486E896718C6F9D855D"><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 of the Federal Housing Finance Agency shall—</text> <subparagraph id="H5F0E9E19EAC243EDB9F92100CB2397D7"><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="HD999F7EBACEC428895F4517402A6D409"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text> </subparagraph></paragraph></subsection><subsection id="HD2B7D31BC29F4BD08EBC2BF412B9CDA"><enum>(e)</enum><header>Savings Provisions</header> <paragraph id="H3E0A534E72234089B67E56F305B6001F"><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="H6F0D93AF90F043E094BD8513C2BDBE45"><enum>(A)</enum><text>arises under or pursuant to the title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, the <act-name parsable-cite="FNMACA">Federal National Mortgage Association Charter Act</act-name>, the <act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation Act</act-name>, or any other provision of law applicable with respect to such Office; and</text> </subparagraph><subparagraph id="H34EC5485B995477288D4DA1F495EAA80"><enum>(B)</enum><text>existed on the day before the abolishment under subsection (a) of this section.</text> </subparagraph></paragraph><paragraph id="H796D443B37734C8F84F7F6FB24C9B831"><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 title, 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="H52B1807694DC45D69FE59D102277AB58"><enum>1086.</enum><header>Continuation and coordination of certain regulations</header><text display-inline="no-display-inline">All regulations, orders, determinations, and resolutions that—</text> <paragraph id="HDD9F07BA070D424CB82887FBED869EC7"><enum>(1)</enum><text>were issued, made, prescribed, or allowed to become effective by—</text> <subparagraph id="HF9BFBC19B4534419B1D289BEC6B48E5"><enum>(A)</enum><text>the Office of Federal Housing Enterprise Oversight; or</text> </subparagraph><subparagraph id="H0008942D45DD447FB1B843F435FB62F5"><enum>(B)</enum><text>a court of competent jurisdiction and that relate to functions transferred by this subtitle; and</text> </subparagraph></paragraph><paragraph id="H9897A5F1E0694125AA34011652BC2323"><enum>(2)</enum><text>are in effect on the date of the abolishment under section 1085(a) of this title, shall remain in effect according to the terms of such regulations, orders, determinations, and resolutions, and shall be enforceable by or against the Director of the Federal Housing Finance Agency until modified, terminated, set aside, or superseded in accordance with applicable law by such Director, as the case may be, any court of competent jurisdiction, or operation of law.</text> </paragraph></section><section id="HAAE5E8A3E1A14562A3FB03569BA7BC29"><enum>1087.</enum><header>Transfer and rights of employees of OFHEO</header> <subsection id="H3F036BCF8D0544788C6BB66678496E9E"><enum>(a)</enum><header>Transfer</header><text>Each employee of the Office of Federal Housing Enterprise Oversight shall be transferred to the Federal Housing Finance Agency for employment no later than the date of the abolishment under section 1085(a) of this title 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="H168AE447DF004F009BB0B067A7BACAFC"><enum>(b)</enum><header>Guaranteed Positions</header><text>Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date of transfer, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text> </subsection><subsection id="H09EB3FBF6B8B419B8CA47E997B5E72DE"><enum>(c)</enum><header>Appointment Authority for Excepted Service Employees</header> <paragraph id="H8D4A2F73589846539D6B963FBD42F646"><enum>(1)</enum><header>In general</header><text>In the case of employees occupying positions in the excepted service, any appointment authority established pursuant to law or regulations of the Office of Personnel Management for filling such positions shall be transferred, subject to paragraph (2).</text> </paragraph><paragraph id="H84C550B6EBC74223BE92063823262827"><enum>(2)</enum><header>Decline of transfer</header><text>The Director of the Federal Housing Finance Agency may decline a transfer of authority under paragraph (1) (and the employees appointed pursuant thereto) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policy-making, policy-determining, or policy-advocating character.</text> </paragraph></subsection><subsection id="H09720C916C214EFB9283A986A0EAFEE9"><enum>(d)</enum><header>Reorganization</header><text>If the Director of the Federal Housing Finance Agency determines, after the end of the 1-year period beginning on the date of the abolishment under section 1085(a), that a reorganization of the combined work force is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employees retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.</text> </subsection><subsection id="H7C32A85B30104E6389BD138DF4ED6E29"><enum>(e)</enum><header>Employee Benefit Programs</header><text>Any employee of the Office of Federal Housing Enterprise Oversight accepting employment with the Director of the Federal Housing Finance Agency as a result of a transfer under subsection (a) may retain for 12 months after the date such transfer occurs membership in any employee benefit program of the Federal Housing Finance Agency or the Office of Federal Housing Enterprise Oversight, as applicable, including insurance, to which such employee belongs on the date of the abolishment under section 1085(a) if—</text> <paragraph id="H50E45DE20D4040D0803C66845D71E500"><enum>(1)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text> </paragraph><paragraph id="H82F9419C2DB24D2CB2005F632C4C9D82"><enum>(2)</enum><text>the benefit or program is continued by the Director of the Federal Housing Finance Agency,</text> </paragraph><continuation-text continuation-text-level="subsection">The difference in the costs between the benefits which would have been provided by such agency and those provided by this section shall be paid by the Director of the Federal Housing Finance Agency. If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by such Director, the employee shall be permitted to select an alternate Federal health insurance program within 30 days of such election or notice, without regard to any other regularly scheduled open season.</continuation-text></subsection></section><section id="H27B954AD30474BB0BBA231885EC5956D"><enum>1088.</enum><header>Transfer of property and facilities</header><text display-inline="no-display-inline">Upon the abolishment under section 1085(a), all property of the Office of Federal Housing Enterprise Oversight shall transfer to the Director of the Federal Housing Finance Agency.</text> </section></chapter><chapter id="H428FAD1522DA40E70043C11C54ACF3C8"><enum>2</enum><header>Federal Housing Finance Board</header> <section id="H394ADBDA4A6B4BFE8E99D2548252C03"><enum>1091.</enum><header>Abolishment of the Federal Housing Finance Board</header> <subsection id="HDDFC4C484ECB44F78945E9482FC3C820"><enum>(a)</enum><header>In General</header><text>Effective at the end of the 6-month 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="H115201C793C64C18A047AEA0D914336D"><enum>(b)</enum><header>Disposition of Affairs</header><text>During the 6-month period beginning on the date of enactment of this Act, the Board, for the purpose of winding up the affairs of the Board and in addition to carrying out its other responsibilities under law—</text> <paragraph id="H1281957AA0ED42DCA172FBE9BE5BAD6"><enum>(1)</enum><text>shall manage the employees of such 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 1093; and</text> </paragraph><paragraph id="HC9DD7B536F014827B855E6BF42339225"><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="H725EE2342BAF4AB786A8945552011B01"><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 such Board as employees 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 1093.</text> </subsection><subsection id="HC5E9FC582F7B4FA7966D4C07EF8138E3"><enum>(d)</enum><header>Use of Property and Services</header> <paragraph id="H658E747E250C46A39D17D97719BAEA73"><enum>(1)</enum><header>Property</header><text>The Director of the Federal Housing Finance Agency may use the property of the Board to perform functions which have been transferred to the Director of the Federal Housing Finance Agency for such time as is reasonable to facilitate the orderly transfer of functions transferred under any other provision of this title or any amendment made by this title to any other provision of law.</text> </paragraph><paragraph id="H76DEB40BD1FA4AF0A100A89CF3DA9782"><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 period under subsection (a) in connection with functions that are transferred to the Director of the Federal Housing Finance Agency shall—</text> <subparagraph id="H519C84FDDFD448169C7E3185891339D6"><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="H000B0BE2721B4DD1BECD3CB494D96DD2"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text> </subparagraph></paragraph></subsection><subsection id="H046DD100FA1842CA00A22705954DB32C"><enum>(e)</enum><header>Savings Provisions</header> <paragraph id="H30CD6A4603B34E66A8134824A8C62B1F"><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="H6A30DB8090DA41D2B48359C4FD16029E"><enum>(A)</enum><text>arises under the <act-name parsable-cite="FHLBA">Federal Home Loan Bank Act</act-name> or any other provision of law applicable with respect to such Board; and</text> </subparagraph><subparagraph id="H0EF135FAC2AF43AB99B8B334847C0090"><enum>(B)</enum><text>existed on the day before the effective date of the abolishment under subsection (a).</text> </subparagraph></paragraph><paragraph id="H1AB935A41FD540E6BBE75B9200008C6C"><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 to the Director of the Federal Housing Finance Agency shall abate by reason of the enactment of this title, except that the Director of the Federal Housing Finance Agency 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="H5CDA6C86BE1A4C51997F8465B0054864"><enum>1092.</enum><header>Continuation and coordination of certain regulations</header> <subsection id="H29133081060C416FB454CC1263EE6B8"><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 of the Federal Housing Finance Agency until modified, terminated, set aside, or superseded in accordance with applicable law by such Director, any court of competent jurisdiction, or operation of law.</text> </subsection><subsection id="H59EE80A91557479CA92C37D2524964C1"><enum>(b)</enum><header>Applicability</header><text>A regulation, order, determination, or resolution is described under this subsection if it—</text> <paragraph id="HF6455FCAA2D34E229DA1FEEF834B65A1"><enum>(1)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text> <subparagraph id="H91FA171AC84A4867B0228BC4D46600C8"><enum>(A)</enum><text>the Board; or</text> </subparagraph><subparagraph id="H081A1F52562B400DA902CD8470DD9000"><enum>(B)</enum><text>a court of competent jurisdiction and relates to functions transferred by this subtitle; and</text> </subparagraph></paragraph><paragraph id="HDDF0A50B8E714EB8B366453D82EC6708"><enum>(2)</enum><text>is in effect on the effective date of the abolishment under section 1091(a).</text> </paragraph></subsection></section><section id="HD34D1363C03D4115920825B368341266"><enum>1093.</enum><header>Transfer and rights of employees of the Federal Housing Finance Board</header> <subsection id="HA26E10FA84214F29B45CAFB9800243E"><enum>(a)</enum><header>Transfer</header><text>Each employee of the Board shall be transferred to the Federal Housing Finance Agency for employment not later than the effective date of the abolishment under section 1091(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="HA65F0AA5CA81485D8164D031FD772FAE"><enum>(b)</enum><header>Guaranteed Positions</header><text>Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as that held on the day immediately preceding the transfer. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date of transfer, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text> </subsection><subsection id="H1722C896462F4771BB9E4EACE2582146"><enum>(c)</enum><header>Appointment Authority for Excepted and Senior Executive Service Employees</header> <paragraph id="H536D576CA9FB41B5AFEB9F445398BAF6"><enum>(1)</enum><header>In general</header><text>In the case of employees occupying positions 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 positions shall be transferred, subject to paragraph (2).</text> </paragraph><paragraph id="H080C30AB68F0459FA31FA300DBBA5EBE"><enum>(2)</enum><header>Decline of transfer</header><text>The Director of the Federal Housing Finance Agency may decline a transfer of authority under paragraph (1) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policymaking, policy-determining, or policy-advocating character, and noncareer positions in the Senior Executive Service (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/5/3132">section 3132(a)(7)</external-xref> of title 5, United States Code).</text> </paragraph></subsection><subsection id="HF4DAB42FF47146B3A032368D93925B5B"><enum>(d)</enum><header>Reorganization</header><text>If the Director of the Federal Housing Finance Agency determines, after the end of the 1-year period beginning on the effective date of the abolishment under section 1091(a), that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employees retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code.</text> </subsection><subsection id="H41737BE91926491A9E0013FC36E847CD"><enum>(e)</enum><header>Employee Benefit Programs</header> <paragraph id="H800C1D2D978D4342B902FC3300E877B3"><enum>(1)</enum><header>In general</header><text>Any employee of the Board accepting employment with the Federal Housing Finance 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 Federal Housing Finance Agency or the Board, as applicable, including insurance, to which such employee belongs on the effective date of the abolishment under section 1091(a) if—</text> <subparagraph id="H4B635F684E3D4035A7E44F54D872939"><enum>(A)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text> </subparagraph><subparagraph id="H5F2755AD4A5F4BA900FBA0A874E8697"><enum>(B)</enum><text>the benefit or program is continued by the Director of the Federal Housing Finance Agency.</text> </subparagraph></paragraph><paragraph id="HFDF657C661CE440B89BDB8C1F3C8A6D1"><enum>(2)</enum><header>Cost differential</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 of the Federal Housing Finance Agency. If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by such Director, the employee shall be permitted to select an alternate Federal health insurance program within 30 days after such election or notice, without regard to any other regularly scheduled open season.</text> </paragraph></subsection></section><section id="HC60F2E395A3342E392F683001200E1D2"><enum>1094.</enum><header>Transfer of property and facilities</header><text display-inline="no-display-inline">Upon the effective date of the abolishment under section 1091(a), all property of the Board shall transfer to the Director of the Federal Housing Finance Agency.</text> </section></chapter><chapter id="H9B086B9AF81F455F88E74750FF48277D"><enum>3</enum><header>Department of Housing and Urban Development</header> <section id="HFEAD9F8C9E83499CB29C3774D63B3967"><enum>1095.</enum><header>Termination of enterprise-related functions</header> <subsection id="H21D43AE709114F768ED1F3BB00AD3B69"><enum>(a)</enum><header>Termination Date</header><text>For purposes of this subtitle, the term <term>termination date</term> means the date that occurs 6 months after the date of the enactment of this Act.</text> </subsection><subsection id="H4AC276B9069F48D3B9A5B5BDBC2FCA33"><enum>(b)</enum><header>Determination of Transferred Functions and Employees</header> <paragraph id="HDF0DA104018F415B0006B22B7F85B270"><enum>(1)</enum><header>In general</header><text>Not later than the expiration of the 3-month period beginning on the date of the enactment of this Act, the Secretary, in consultation with the Director of the Office of Federal Housing Enterprise Oversight, shall determine—</text> <subparagraph id="H89C370B89AB5463BB460A24C5FFCA890"><enum>(A)</enum><text>the functions, duties, and activities of the Secretary of Housing and Urban Development regarding oversight or regulation of the enterprises under or pursuant to the authorizing statutes, title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, and any other provisions of law, as in effect before the date of the enactment of this Act, but not including any such functions, duties, and activities of the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development and such Office; and</text> </subparagraph><subparagraph id="H0303543A50A44312835405534F43ABE6"><enum>(B)</enum><text>the employees of the Department of Housing and Urban Development necessary to perform such functions, duties, and activities.</text> </subparagraph></paragraph><paragraph id="H41D8F2ED7E0D467F97524627F400E5AC"><enum>(2)</enum><header>Enterprise-related functions</header><text>For purposes of this subtitle, the term <term>enterprise-related functions of the Department</term> means the functions, duties, and activities of the Department of Housing and Urban Development determined under paragraph (1)(A).</text> </paragraph><paragraph id="H5490FB15485F4D8CB66186D579647BFA"><enum>(3)</enum><header>Enterprise-related employees</header><text>For purposes of this subtitle, the term <term>enterprise-related employees of the Department</term> means the employees of the Department of Housing and Urban Development determined under paragraph (1)(B).</text> </paragraph></subsection><subsection id="H1A6359EE894E4FE687B8004912E83894"><enum>(c)</enum><header>Disposition of Affairs</header><text>During the 6-month period beginning on the date of enactment of this Act, the Secretary of Housing and Urban Development (in this subtitle referred to as the <quote>Secretary</quote>), for the purpose of winding up the affairs of the Secretary regarding the enterprise-related functions of the Department of Housing and Urban Development (in this subtitle referred to as the <quote>Department</quote>) and in addition to carrying out the Secretary’s other responsibilities under law regarding such functions—</text> <paragraph id="HE0783B11B7CC4200BEF6FAE4416B000"><enum>(1)</enum><text>shall manage the enterprise-related employees of the Department and provide for the payment of the compensation and benefits of any such employee which accrue before the effective date of the transfer of any such employee under section 1097; and</text> </paragraph><paragraph id="H0BCE33966C8A4452A295216679DD0045"><enum>(2)</enum><text>may take any other action necessary for the purpose of winding up the enterprise-related functions of the Department.</text> </paragraph></subsection><subsection id="H75A50F5EC46540229EE8831B71DE6CB2"><enum>(d)</enum><header>Status of Employees Before Transfer</header><text>The amendments made by titles I and II and the termination of the enterprise-related functions of the Department under subsection (b) may not be construed to affect the status of any employee of the Department as employees 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 1097.</text> </subsection><subsection id="HEC8CD0692B524C22BA79F25DB005C9EA"><enum>(e)</enum><header>Use of Property and Services</header> <paragraph id="H09D1A574DADC47748FC104B79BAFF77D"><enum>(1)</enum><header>Property</header><text>The Director of the Federal Housing Finance Agency may use the property of the Secretary to perform functions which have been transferred to the Director of the Federal Housing Finance Agency for such time as is reasonable to facilitate the orderly transfer of functions transferred under any other provision of this title or any amendment made by this title to any other provision of law.</text> </paragraph><paragraph id="HBAB9C5CEE86041039D30C79F074727EC"><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 Secretary regarding enterprise-related functions of the Department before the termination date under subsection (a) in connection with such functions that are transferred to the Director of the Federal Housing Finance Agency shall—</text> <subparagraph id="H1592BBA5E51C4EEA8331FCB040B86D10"><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="H297E8DB5D40E40CCB0DB4EA107861100"><enum>(B)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text> </subparagraph></paragraph></subsection><subsection id="HC5C5D0A14CA249778B816291244900C8"><enum>(f)</enum><header>Savings Provisions</header> <paragraph id="H4086924589A84A5784D8F1A7C63FFA86"><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 Secretary, or any other person, which—</text> <subparagraph id="HDE38CF9EE5494355AFDEE6AC9754F625"><enum>(A)</enum><text>arises under the authorizing statutes, title XIII of the <act-name parsable-cite="HCDA92">Housing and Community Development Act of 1992</act-name>, or any other provision of law applicable with respect to the Secretary, in connection with the enterprise-related functions of the Department; and</text> </subparagraph><subparagraph id="HC96DBCA7F6F847CA94EAA2A213B116A8"><enum>(B)</enum><text>existed on the day before the termination date under subsection (a).</text> </subparagraph></paragraph><paragraph id="H641D3EF43CFE4B5BB9291450C2593098"><enum>(2)</enum><header>Continuation of suits</header><text>No action or other proceeding commenced by or against the Secretary in connection with the enterprise-related functions of the Department shall abate by reason of the enactment of this title, except that the Director of the Federal Housing Finance Agency shall be substituted for the Secretary or any member thereof as a party to any such action or proceeding.</text> </paragraph></subsection></section><section id="H4BB3DECF02904EA6B41FF3CEC385AEDB"><enum>1096.</enum><header>Continuation and coordination of certain regulations</header> <subsection id="H591E4E6583B44CE6004BB463F8D6131C"><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, determinations, and resolutions, and shall be enforceable by or against the Director of the Federal Housing Finance Agency until modified, terminated, set aside, or superseded in accordance with applicable law by such Director, any court of competent jurisdiction, or operation of law.</text> </subsection><subsection id="HD20D3B8EE952472290DDDCD395539B1F"><enum>(b)</enum><header>Applicability</header><text>A regulation, order, or determination is described under this subsection if it—</text> <paragraph id="HB518011C30AC46B8A89EB79EE314F090"><enum>(1)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text> <subparagraph id="HE58BAADFF105446D80B704436204FF37"><enum>(A)</enum><text>the Secretary; or</text> </subparagraph><subparagraph id="H4AA4B2D2D8DC49029C11D9F0C845D31"><enum>(B)</enum><text>a court of competent jurisdiction and that relate to the enterprise-related functions of the Department; and</text> </subparagraph></paragraph><paragraph id="H83778C4DDAA14BF79BC130426458F126"><enum>(2)</enum><text>is in effect on the termination date under section 1095(a).</text> </paragraph></subsection></section><section id="H7508781561584B5CA2C89885F68862EE"><enum>1097.</enum><header>Transfer and rights of employees of Department of Housing and Urban Development</header> <subsection id="H7AF3AA5FEF774B4000305649E6626EB"><enum>(a)</enum><header>Transfer</header> <paragraph id="H6BAECAEC34D44461A6CCF8351F6E8CCA"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), each enterprise-related employee of the Department shall be transferred to the Federal Housing Finance Agency for employment not later than the termination date under section 1095(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> </paragraph><paragraph id="HE58A1633DEA345EF8EED4636F1B4D3DA"><enum>(2)</enum><header>Authority to decline</header><text>An enterprise-related employee of the Department may, in the discretion of the employee, decline transfer under paragraph (1) to a position in the Federal Housing Finance Agency and shall be guaranteed a position in the Department with the same status, tenure, grade, and pay as that held on the day immediately preceding the date that such declination was made. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date that the transfer would otherwise have occurred, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text> </paragraph></subsection><subsection id="H24272220DEAF420EBD370000E9F97BEE"><enum>(b)</enum><header>Guaranteed Positions</header><text>Each enterprise-related employee of the Department 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. Each such employee holding a permanent position shall not be involuntarily separated or reduced in grade or compensation for 12 months after the date of transfer, except for cause or, if the employee is a temporary employee, separated in accordance with the terms of the appointment.</text> </subsection><subsection id="HCBDB441C94264754BF8EA8CA2EF0173B"><enum>(c)</enum><header>Appointment Authority for Excepted and Senior Executive Service Employees</header> <paragraph id="H98BE4B1036CA4A1FAC088DB111EF2208"><enum>(1)</enum><header>In general</header><text>In the case of employees occupying positions 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 positions shall be transferred, subject to paragraph (2).</text> </paragraph><paragraph id="H7B8261EEE2F3417A85B1001D00D8EDE6"><enum>(2)</enum><header>Decline of transfer</header><text>The Director of the Federal Housing Finance Agency may decline a transfer of authority under paragraph (1) (and the employees appointed pursuant thereto) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policymaking, policy-determining, or policy-advocating character, and noncareer positions in the Senior Executive Service (within the meaning of section 3132(a)(7) of title 5, United States Code).</text> </paragraph></subsection><subsection id="H081FB9C4B8E045C9BA7DFAF8DC482DBB"><enum>(d)</enum><header>Reorganization</header><text>If the Director of the Federal Housing Finance Agency determines, after the end of the 1-year period beginning on the termination date under section 1095(a), that a reorganization of the combined workforce is required, that reorganization shall be deemed a major reorganization for purposes of affording affected employees 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="H77583965AC86426A88BEEB83A8261874"><enum>(e)</enum><header>Employee Benefit Programs</header> <paragraph id="HFDE4668C655541149D9BCDDEB35BB9D8"><enum>(1)</enum><header>In general</header><text>Any enterprise-related employee of the Department accepting employment with the Federal Housing Finance 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 Federal Housing Finance Agency or the Department, as applicable, including insurance, to which such employee belongs on the termination date under section 1095(a) if—</text> <subparagraph id="H56AD35C670AA49AFB3AA9E54B631C976"><enum>(A)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text> </subparagraph><subparagraph id="H1445E5EF1F524960A798664B14F0DCB2"><enum>(B)</enum><text>the benefit or program is continued by the Director of the Federal Housing Finance Agency.</text> </subparagraph></paragraph><paragraph id="H7CE06D2AAC774D118D9677CF00D6E884"><enum>(2)</enum><header>Cost differential</header><text>The difference in the costs between the benefits which would have been provided by the Department and those provided by this section shall be paid by the Director of the Federal Housing Finance Agency. If any employee elects to give up membership in a health insurance program or the health insurance program is not continued by such Director, the employee shall be permitted to select an alternate Federal health insurance program within 30 days after such election or notice, without regard to any other regularly scheduled open season.</text> </paragraph></subsection></section><section id="HF6BF6EC1F3A2446B897084D918079319"><enum>1098.</enum><header>Transfer of appropriations, property, and facilities</header><text display-inline="no-display-inline">Upon the termination date under section 1095(a), all assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to the Department in connection with enterprise-related functions of the Department shall transfer to the Director of the Federal Housing Finance Agency. Unexpended funds transferred by this section shall be used only for the purposes for which the funds were originally authorized and appropriated.</text> </section></chapter></subtitle>