110 HR 6164 IH: Federal Housing Enterprises U.S. House of Representatives 2008-05-22 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. 6164 IN THE HOUSE OF REPRESENTATIVES May 22, 2008 Mr. Watt (for himself, Mrs. Myrick, and Mr. Emanuel) introduced the following bill; which was referred to the Committee on Financial Services A BILL To establish a risk-reduction and accountability pilot program for the housing-related government-sponsored enterprises.

1.

Short title

This Act may be cited as the Federal Housing Enterprises Transparency and Accountability Act of 2008.

2.

Pilot program to encourage risk reduction and accountability

(a)

Establishment

The Federal Housing Finance Board shall require each Federal Home Loan Bank, and the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development shall require the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, to carry out a pilot program to reduce risk through the use of electronic platforms to conduct transactions in interest rate swaps and forward rate agreements. The pilot program required under this section shall commence not later than the expiration of the 180-day period beginning on the date of the enactment of this Act. (b)

Requirements

In carrying out the pilot program required under subsection (a), the Federal Housing Finance Board and the Director of the Office of Federal Housing Enterprise Oversight shall require that— (1)the Federal Home Loan Banks, and the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, respectively, conduct at least 5 percent of their transactions in interest rate swaps and forward rate agreements for the calendar years 2009 and 2010 on an electronic platform or platforms; and (2)in selecting the electronic platform or platforms, the Federal Home Loan Banks, and the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation shall consider the extent to which such electronic platform or platforms— (A)keep accurate records and provide an accurate audit trail for transactions executed on each such platform; (B)enable users to identify and net their mutually offsetting short term interest rate risks; (C)are owned and located in the United States and utilize technologies patented in the United States; and (D)are not an organized exchange, board of trade, or trading facility as those terms are defined in the Commodity Exchange Act (7 U.S.C. 1 et seq.). (c)

Study and report

Not later than March 1, 2011, the Federal Housing Finance Board and the Director of the Office of Federal Housing Enterprise Oversight shall each conduct a study of the pilot program required under subsection (a) and shall submit a report regarding the results and conclusions of the study to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.