1.This Act may be cited as the
Commission on the Foreclosure and Mortgage Lending Crisis Act
.
2.Establishment of
CommissionThere is
established in the legislative branch a commission to be known as the
Commission on the Foreclosure and Mortgage Lending Crisis
(in
this Act referred to as the Commission
).
3.
(a)Congress finds the following:
(1)The United States
is experiencing a steady increase in foreclosures and mortgage lending problems
that have impacted homeowners, families, communities, the United States economy
and the global credit markets.
(2)In 2006, there
were an estimated 1,300,000 foreclosures in the United States.
(3)This number
increased by 79 percent in 2007, bringing the estimated number of foreclosures
nationwide to 2,200,000.
(4)In 2008, an
estimated 3,200,000 foreclosures were reported nationwide.
(5)Estimates suggest
that this trend is likely to continue with millions more Americans potentially
losing their homes to foreclosure in the next 4 years.
(b)The purpose of this Act is to establish a
commission to undertake a comprehensive analysis and review of the causes of
the current foreclosure and mortgage lending crisis and to submit a report of
its findings to the Congress. The Commission shall also recommend legislative
and regulatory changes that will prohibit the kinds of lending practices that
contributed to the increased foreclosure rate and the current mortgage lending
crisis.
4.
(a)The
Commission shall be composed of 10 members as follows:
(1)2
members shall be appointed by the Speaker of the House of
Representatives.
(2)2
members shall be appointed by the minority leader of the House of
Representatives.
(3)2
members shall be appointed by the majority leader of the Senate.
(4)2
members shall be appointed by the minority leader of the Senate.
(5)The Secretary of
the Treasury or his designee.
(6)The Chairman of
the Board of Governors of the Federal Reserve System or his designee.
(b)All members of
the Commission shall be appointed not later than 30 days after the date of the
enactment of this Act.
(c)Of the members appointed to the Commission
under paragraphs (1) through (4) of subsection (a), 2 shall be designated as
the Co-Chairmen of the Commission. One Co-Chairman shall be designated by the
Speaker of the House of Representatives in consultation with the majority
leader of the Senate and the other Co-Chairman shall be designated by the
minority leader of the House of Representatives in consultation with the
minority leader of the Senate.
(d)Any vacancy in the Commission shall not
affect its powers and shall be filled in the same manner in which the original
appointment was made.
(e)
(1)Members of the Commission shall serve without pay.
(2)While away from their homes or regular places of
business in the performance of services for the Commission, members of the
Commission shall be allowed travel expenses, including per diem in lieu of
subsistence, in the same manner as persons employed intermittently in the
Government service are allowed expenses under section 5703 of title 5, United
States Code.
(f)Initial Meeting;
Rules of Procedure; Quorum
(1)The Commission shall
meet and begin the operations of the Commission not later than 60 days after
the date of the enactment of this Act.
(2)After
its initial meeting, the Commission shall meet upon the call of a majority of
its members.
(3)A
majority of the members of the Commission shall constitute a quorum.
(4)The Commission may
establish rules for the conduct of the Commission’s business, if such rules are
consistent with this Act and other applicable law.
5.
(a)The Commission shall—
(1)study and assess the current legal and
regulatory framework governing the housing mortgage lending markets and
investigate how such framework contributed to the increased foreclosure rate,
including—
(A)refinancing
practices;
(B)loan-to-value
ratios; and
(C)the prevalence of
fraudulent industry practices;
(2)recommend changes
to the current legal and regulatory framework to prohibit lending practices
that have contributed to the mortgage lending crisis;
(3)review the impact
of subprime abuses and predatory lending practices;
(4)assess the role of
States in enacting policies to reduce predatory lending practices and abuses in
the subprime markets;
(5)assess the impact of mortgage-backed
securities and the Federal National Mortgage Corporation (Fannie
Mae
) and the Federal Home Loan Mortgage Corporation (Freddie
Mac
) on the mortgage lending crisis; and
(6)assess the impact of the Community
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) on the mortgage lending
crisis.
(b)Not later than 12
months after the date of enactment of this Act, the Commission shall submit to
the Congress a final report containing such findings, conclusions, and
recommendations as have been agreed to by a majority of Commission members. If,
at the conclusion of such 12-month period, a majority of the Commission
determines it necessary, the Commission may be granted a 6-month extension for
submission of its final report upon written notification to the
Congress.
6.
(a)The Commission may, for the purpose of carrying out this
Act—
(1)hold such hearings
and sit and act at such times and places, take such testimony, receive such
evidence, administer such oaths; and
(2)subject to
subsection (b)(1), subpoena or otherwise require the attendance and testimony
of such witnesses and the production of such books, records, correspondence,
memoranda, papers, and documents as the Commission may determine
advisable.
(b)
(1)
(A)A subpoena may be issued under this section only by the
affirmative vote of a majority of the members of the Commission.
(B)Subject to subparagraph (A), subpoenas
issued under this section may be issued under the signature of the Co-Chairmen
or any member designated by a majority of the Commission, may be served by any
person designated by the Co-Chairmen or by a member designated by a majority of
the Commission.
(2)
(A)In the case of contumacy or failure to obey a subpoena
issued under paragraph (1), the United States district court for the judicial
district in which the subpoenaed person resides, is served, or may be found, or
where the subpoena is returnable, may issue an order requiring such person to
appear at any designated place to testify or to produce documentary or other
evidence. Any failure to obey the order of the court may be punished by the
court as a contempt of that court.
(B)In the case of any failure of any witness to comply
with any subpoena or to testify when summoned under authority of this section,
the Commission may, by majority vote, certify a statement of fact constituting
such failure to the appropriate United States attorney, who may bring the
matter before the grand jury for its action, under the same statutory authority
and procedures as if the United States attorney had received as certification
under section 102 through 104 of the Revised Statutes of the United States (2
U.S.C. 192 through 194).
(c)The Commission may,
to such extent and in such amounts as are provided in appropriation Acts, enter
into contracts to enable the Commission to carry out its duties under this
Act.
(d)Information From
Federal Agencies
(1)The Commission is
authorized to secure directly from any executive department, bureau, agency,
board, commission, office, independent establishment, or instrumentality of the
Government, information, suggestions, estimates, and statistics to carry out
its duties under this Act. Each department, bureau, agency, board, commission,
office, independent establishment, or instrumentality shall, to the extent
authorized by law, furnish such information, suggestions, estimates, and
statistics directly to the Commission, upon request made by a majority of the
members of the Commission.
(2)Receipt,
handling, storage, and disseminationInformation shall only be received,
handled, stored, and disseminated by members of the Commission and its staff
consistent with all applicable statutes, regulations, and Executive
orders.
(e)Assistance From
Federal Agencies
(1)General services
administrationThe Administrator of General Services shall
provide to the Commission on a reimbursable basis administrative support and
other services to assist the Commission in carrying out its duties.
(2)Other
departments and agenciesIn addition to the assistance described
in paragraph (1), departments and agencies of the United States may provide to
the Commission such services, funds, facilities, staff, and other support
services as they may determine advisable and as may be authorized by
law.
(f)The Commission may
use the United States mails in the same manner and under the same conditions as
departments and agencies of the United States.
(g)
(1)
(A)Appointment and
compensationThe Co-Chairmen, in accordance with rules agreed
upon by the Commission, may appoint and fix the compensation of a staff
director and such other personnel as may be necessary to enable the Commission
to carry out its duties, without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service, and without
regard to the provisions of chapter 51 and subchapter III of chapter 53 of such
title relating to classification and General Schedule pay rates, except that no
rate of pay fixed under this subsection may exceed the equivalent of that
payable for a position at level IV of the Executive Schedule under section 5316
of title 5, United States Code.
(B)Personnel as
Federal employees
(i)The staff director and any personnel of the Commission
who are employees shall be employees under section 2105 of title 5, United
States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of
that title.
(ii)Members of the
CommissionClause (i) shall not apply to members of the
Commission.
(2)Any
Federal Government employee may be detailed to the Commission without
reimbursement from the Commission, and such detailee shall retain the rights,
status, and privileges of his or her regular employment without
interruption.
(3)Expert and
Consultant ServicesThe Commission is authorized to procure the
services of experts and consultants in accordance with section 3109 of title 5,
United States Code, but at rates not to exceed the daily rate paid to a person
occupying a position at level IV of the Executive Schedule under section 5315
of title 5, United States Code.
(4)Notwithstanding section 1342 of title 31, United States
Code, the Commission may accept and use voluntary and uncompensated services as
the Commission determines necessary.
7.Nonapplicability
of Federal Advisory Committee Act
(a)The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the Commission.
(b)Public Meetings
and Release of Public Versions of ReportsThe Commission
shall—
(1)hold public
hearings and meetings to the extent appropriate; and
(2)release public
versions of the report required under section 5(b).
(c)Any public hearings of the Commission shall be conducted
in a manner consistent with the protection of information provided to or
developed for or by the Commission as required by any applicable statute,
regulations, or Executive order.
8.
(a)The Commission and
all the authorities of this Act, shall terminate not later than 60 days after
the date on which the final report is submitted under section 5(b).
(b)Administrative
activities before terminationThe Commission may use the 60-day
period referred to in subsection (a) for the purpose of concluding its
activities, including providing testimony to committees of Congress concerning
its report and disseminating the final report.
(c)Authorization of
appropriationThere are
authorized to be appropriated such sums as necessary to carry out this
Act.