[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3550 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3550

 To stabilize the housing and banking sectors by eliminating policies 
   that distort markets and facilitate risky lending, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 20, 2013

 Mr. Amash (for himself, Mr. Duncan of South Carolina, Mr. Jordan, Mr. 
  Lamborn, Mr. McClintock, Mr. Meadows, Mr. Price of Georgia, and Mr. 
   Salmon) introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
  Appropriations, Science, Space, and Technology, Transportation and 
  Infrastructure, 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 stabilize the housing and banking sectors by eliminating policies 
   that distort markets and facilitate risky lending, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``New Fair Deal 
Banking and Housing Stability Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
     TITLE I--REDUCING RISKY LENDING AND HOUSING MARKET INSTABILITY

    Subtitle A--Withdrawing Failed Government Mortgage Corporations

     Part 1--Immediate Reforms of Government-Sponsored Corporations

Sec. 101. Repeal of housing goals for enterprises.
Sec. 102. Repeal of Housing Trust Fund.
Sec. 103. Repeal of Capital Magnet Fund.
Sec. 104. Limitation on enterprise mortgage purchases.
Sec. 105. Repeal of banking agencies' authority relating Freddie Mac 
                            transactions.
           Part 2--Making Space for Private Secondary Markets

Sec. 111. Reduction of enterprise conforming loan limits.
Sec. 112. Loan-to-value limitation on enterprise mortgage purchases.
Sec. 113. Increased capital standards for enterprises.
Sec. 114. Enterprise portfolio limitations.
            Part 3--Abolition of Fannie Mae and Freddie Mac

Sec. 121. Abolishment of enterprises.
    Subtitle B--Termination of Insurance for Banks' Mortgage Lending

            Part 1--Immediate Reforms of FHA Credit Programs

Sec. 131. FHA lender repurchase requirement.
Sec. 132. Prohibition of FHA mortgage insurance for cash-out 
                            refinancings.
Sec. 133. FHA limitation on seller concessions.
           Part 2--Reducing Taxpayer Guarantees of Mortgages

Sec. 141. Reduction of FHA mortgage insurance coverage.
Sec. 142. Increase in FHA downpayment requirement.
              Part 3--Termination of FHA Credit Guarantees

Sec. 151. Termination of FHA insurance authority.
Subtitle C--Ending Guarantees for Government Mortgage-Backed Securities

Sec. 161. Limitation on GNMA guarantees.
Sec. 162. Abolishment of Ginnie Mae.
      Subtitle D--Repealing Regulations That Promote Risky Lending

Sec. 171. Repeal of the Community Reinvestment Act of 1977.
Sec. 172. Repeal of Dodd-Frank credit risk retention provisions.
Sec. 173. Repeal of Dodd-Frank ability to repay and qualified mortgage 
                            provisions.
Sec. 174. Repeal of the Home Mortgage Disclosure Act of 1975.
Sec. 175. Repeal of Federal Home Loan Banks Affordable Housing Program 
                            and housing goals.
Sec. 176. Repeal of FDIC Affordable Housing Program.
    Subtitle E--Stopping Subsidies for Certain Obstacles to Housing 
                              Construction

Sec. 181. Repeal of transportation planning provisions; rescission.
Sec. 182. Termination of HUD sustainable communities initiatives; 
                            rescission.
     TITLE II--ENDING BANK BAILOUTS AND RESTORING MARKET DISCIPLINE

   Subtitle A--Reducing Risks to Bank Depositors and Other Creditors

Sec. 201. Capital requirements.
Sec. 202. FDIC insurance.
               Subtitle B--Repeal of Bailout Authorities

Sec. 211. Repeal of FDIC powers under the systemic risk determination.
Sec. 212. Repeal of unusual and exigent authority of the Federal 
                            Reserve.
Sec. 213. Exchange Stabilization Fund.
      Subtitle C--Bankruptcy, Not Bailouts, for Complex Financial 
                              Institutions

Sec. 221. Reforming the bankruptcy code to accommodate failing 
                            financial institutions.

     TITLE I--REDUCING RISKY LENDING AND HOUSING MARKET INSTABILITY

    Subtitle A--Withdrawing Failed Government Mortgage Corporations

     PART 1--IMMEDIATE REFORMS OF GOVERNMENT-SPONSORED CORPORATIONS

SEC. 101. REPEAL OF HOUSING GOALS FOR ENTERPRISES.

    (a) Repeal.--The Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 is amended by striking sections 1331 through 1336 
(12 U.S.C. 4561-6).
    (b) Conforming Amendments.--Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 is amended--
            (1) in section 1303(28) (12 U.S.C. 4502(28)), by striking 
        ``, and, for the purposes'' and all that follows through 
        ``designated disaster areas'';
            (2) in section 1324(b)(1)(A) (12 U.S.C. 4544(b)(1)(A)), by 
        striking clauses (i), (ii), and (iv);
            (3) in section 1339(h) (12 U.S.C. 4569(h)), by striking 
        paragraph (7);
            (4) in section 1341 (12 U.S.C. 4581)--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by inserting ``or'' 
                        after the semicolon at the end;
                            (ii) in paragraph (2), by striking the 
                        semicolon at the end and inserting a period; 
                        and
                            (iii) by striking paragraphs (3) and (4); 
                        and
                    (B) in subsection (b)(2)--
                            (i) in subparagraph (A), by inserting 
                        ``or'' after the semicolon at the end;
                            (ii) by striking subparagraphs (B) and (C); 
                        and
                            (iii) by redesignating subparagraph (D) as 
                        subparagraph (B);
            (5) in section 1345(a) (12 U.S.C. 4585(a))--
                    (A) in paragraph (1), by inserting ``or'' after the 
                semicolon at the end;
                    (B) in paragraph (2), by striking the semicolon at 
                the end and inserting a period; and
                    (C) by striking paragraphs (3) and (4); and
            (6) in section 1371(a)(2) (12 U.S.C. 4631(a)(2)), by 
        striking ``with any housing goal established under subpart B of 
        part 2 of subtitle A of this title, with section 1336 or 1337 
        of this title,''.
    (c) Repeal of Reporting Requirements.--
            (1) Fannie mae.--Section 309 of the Federal National 
        Mortgage Association Charter Act (12 U.S.C. 1723a) is amended 
        by striking subsection (n).
            (2) Freddie mac.--Section 307 of the Federal Home Loan 
        Mortgage Corporation Act (12 U.S.C. 1456) is amended by 
        striking subsection (f).
    (d) Termination of Affordable Housing Advisory Councils.--
            (1) Fannie mae.--Section 309 of the Federal National 
        Mortgage Association Charter Act (12 U.S.C. 1723a) is amended 
        by striking subsection (o).
            (2) Freddie mac.--Section 307 of the Federal Home Loan 
        Mortgage Corporation Act (12 U.S.C. 1456) is amended by 
        striking subsection (g).

SEC. 102. REPEAL OF HOUSING TRUST FUND.

    (a) Repeal.--The Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 is amended by striking sections 1337 and 1338 (12 
U.S.C. 4567, 4568).
    (b) Conforming Amendments.--
            (1) Federal housing enterprises financial safety and 
        soundness act of 1992.--The Federal Housing Enterprises 
        Financial Safety and Soundness Act of 1992 is amended--
                    (A) in section 1324(b)(1)(A) (12 U.S.C. 
                4544(b)(1)(A)), as amended by the preceding provisions 
                of this Act--
                            (i) by striking clause (iii);
                            (ii) by striking the dash after ``which'' 
                        and inserting the text of clause (v) and a 
                        period; and
                            (iii) by striking clause (v);
                    (B) in section 1339(b)--
                            (i) by striking paragraph (1);
                            (ii) by striking the dash after ``consist 
                        of'' and inserting the text of paragraph (2) 
                        and a period; and
                            (iii) by striking paragraph (2); and
                    (C) in section 1345 (12 U.S.C. 4585), by striking 
                subsection (f).
            (2) HOPE for homeowners program.--Section 257(w) of the 
        National Housing Act (12 U.S.C. 1715z-23(w)) is amended--
                    (A) by striking paragraphs (2) and (3); and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).

SEC. 103. REPEAL OF CAPITAL MAGNET FUND.

    (a) Use of Funds.--Immediately upon the enactment of this Act, any 
amounts in the Capital Magnet Fund established under section 1339 of 
the Federal Housing Enterprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4569) shall be available to the Secretary of the 
Treasury for use only for reducing the budget deficit of the Federal 
Government.
    (b) Repeal and Abolishment of Fund.--Section 1339 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4569) is hereby repealed and the Capital Magnet Fund established 
under such section is abolished.
    (c) Conforming Amendment.--Section 1303(24) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4502(24)) is amended by striking subparagraph (B).

SEC. 104. LIMITATION ON ENTERPRISE MORTGAGE PURCHASES.

    (a) Fannie Mae.--Section 302(b) of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the 
end the following new paragraph:
    ``(7) The corporation may only purchase, make commitments to 
purchase, service, sell, lend on the security of, or otherwise deal in 
a mortgage on a property comprising 1- to 4-family dwelling units 
that--
            ``(A) bears interest at a rate that is fixed for the entire 
        term of the mortgage; and
            ``(B) is made--
                    ``(i) to finance the purchase of such property that 
                shall be occupied by the mortgagor as the mortgagor's 
                principal residence; or
                    ``(ii) to prepay or pay off the outstanding 
                principal obligation under an existing mortgage or loan 
                secured by the same property, which is occupied by the 
                mortgagor as the mortgagor's principal residence, but 
                not including a mortgage under which any portion of the 
                mortgage proceeds are used for any purpose other than 
                to prepay or pay off such existing mortgage or for any 
                settlement costs in connection with such mortgage, as 
                determined in accordance with guidelines issued by the 
                Director.''.
    (b) Freddie Mac.--Section 305(a) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the 
following new paragraph:
    ``(6) The Corporation may only purchase, make commitments to 
purchase, service, sell, lend on the security of, or otherwise deal in 
a mortgage on a property comprising 1- to 4-family dwelling units 
that--
            ``(A) bears interest at a rate that is fixed for the entire 
        term of the mortgage; and
            ``(B) is made--
                    ``(i) to finance the purchase of such property that 
                shall be occupied by the mortgagor as the mortgagor's 
                principal residence; or
                    ``(ii) to prepay or pay off the outstanding 
                principal obligation under an existing mortgage or loan 
                secured by the same property, which is occupied by the 
                mortgagor as the mortgagor's principal residence, but 
                not including a mortgage under which any portion of the 
                mortgage proceeds are used for any purpose other than 
                to prepay or pay off such existing mortgage or for any 
                settlement costs in connection with such mortgage, as 
                determined in accordance with guidelines issued by the 
                Director.''.

SEC. 105. REPEAL OF BANKING AGENCIES' AUTHORITY RELATING FREDDIE MAC 
              TRANSACTIONS.

    Section 305 of the Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454) is amended by striking subsection (b).

           PART 2--MAKING SPACE FOR PRIVATE SECONDARY MARKETS

SEC. 111. REDUCTION OF ENTERPRISE CONFORMING LOAN LIMITS.

    (a) Fannie Mae.--Paragraph (2) of section 302(b) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is 
amended by striking the 7th through 11th sentences and inserting the 
following: ``Such limitations shall not exceed $417,000 for a mortgage 
secured by a single-family residence, $533,850 for a mortgage secured 
by a 2-family residence, $645,300 for a mortgage secured by a 3-family 
residence, and $801,950 for a mortgage secured by a 4-family residence, 
except that such maximum limitations shall be adjusted effective 
January 1 of each year beginning after the effective date of the New 
Fair Deal Banking and Housing Stability Act of 2013, subject to the 
limitations in this paragraph. Each adjustment shall be made by 
subtracting from such amount (as it may have been previously adjusted) 
an amount equal to 20 percent thereof.''.
    (b) Freddie Mac.--Paragraph (2) of section 305(a) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) is amended by 
striking the 6th through 10th sentences and inserting the following: 
``Such limitations shall not exceed $417,000 for a mortgage secured by 
a single-family residence, $533,850 for a mortgage secured by a 2-
family residence, $645,300 for a mortgage secured by a 3-family 
residence, and $801,950 for a mortgage secured by a 4-family residence, 
except that such maximum limitations shall be adjusted effective 
January 1 of each year beginning after the effective date of the New 
Fair Deal Banking and Housing Stability Act of 2013, subject to the 
limitations in this paragraph. Each adjustment shall be made by 
subtracting from such amount (as it may have been previously adjusted) 
an amount equal to 20 percent thereof.''.

SEC. 112. LOAN-TO-VALUE LIMITATION ON ENTERPRISE MORTGAGE PURCHASES.

    (a) Fannie Mae.--Section 302(b) of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the 
end the following new paragraph:
    ``(7) Notwithstanding any other provision of law, the corporation 
may not purchase, or make commitments to purchase, any mortgage on a 1- 
to 4-family residence if the outstanding principal balance of the 
mortgage at the time of purchase exceeds 95.0 percent of the value of 
the property securing the mortgage, except that such percentage shall 
be adjusted effective January 1 of each year beginning after the 
effective date of the New Fair Deal Banking and Housing Stability Act 
of 2013, by reducing such percentage by 1.5 percentage points.''.
    (b) Freddie Mac.--Section 3052(a) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the 
following new paragraph:
    ``(6) Notwithstanding any other provision of law, the Corporation 
may not purchase, or make commitments to purchase, any mortgage on a 1- 
to 4-family residence if the outstanding principal balance of the 
mortgage at the time of purchase exceeds 95.0 percent of the value of 
the property securing the mortgage, except that such percentage shall 
be adjusted effective January 1 of each year beginning after the 
effective date of the New Fair Deal Banking and Housing Stability Act 
of 2013, by reducing such percentage by 1.5 percentage points.''.

SEC. 113. INCREASED CAPITAL STANDARDS FOR ENTERPRISES.

    (a) Termination of Risk-Based Standard.--
            (1) In general.--Section 1361 of the Federal Housing 
        Enterprises Financial Safety and Soundness Act of 1992 (12 
        U.S.C. 4611) is amended--
                    (A) in the section heading, by striking ``risk-
                based''; and
                    (B) in subsection (a)(1), by striking ``risk-
                based'' and inserting ``non-risk-based''.
            (2) Conforming amendments.--Subtitle B of the Federal 
        Housing Enterprises Financial Safety and Soundness Act of 1992 
        is amended by striking ``risk-based'' each place such term 
        appears in the following sections and inserting ``required'':
                    (A) Section 1364(a) (12 U.S.C. 4614(a)).
                    (B) Section 1366(a)(2)(B) (12 U.S.C. 
                4616(a)(2)(B)).
                    (C) Section 1369C(a) (12 U.S.C. 4622(a)).
    (b) Increase in Minimum Capital Levels.--Section 1362(a) of the 
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4612(a)) is amended--
            (1) in paragraph (1), by inserting before the semicolon at 
        the end the following: ``; except that such percentage shall be 
        adjusted effective January 1 of each year beginning after the 
        effective date of the New Fair Deal Banking and Housing 
        Stability Act of 2013, by increasing such percentage (as it may 
        have been previously adjusted) by 0.7 percentage points'';
            (2) in paragraph (2), by inserting before ``; and'' the 
        following: ``; except that such percentage shall be adjusted 
        effective January 1 of each year beginning after the effective 
        date of the New Fair Deal Banking and Housing Stability Act of 
        2013, by increasing such percentage (as it may have been 
        previously adjusted) by 0.15 percentage points''; and
            (3) in paragraph (3), by inserting before the period at the 
        end the following: ``; and except that such percentage shall be 
        adjusted effective January 1 of each year beginning after the 
        effective date of the New Fair Deal Banking and Housing 
        Stability Act of 2013, by increasing such percentage (as it may 
        have been previously adjusted) by 0.15 percentage points''.
    (c) Increase in Critical Capital Levels.--Section 1363(a) of the 
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4613(a)) is amended--
            (1) in paragraph (1), by inserting before the semicolon at 
        the end the following: ``; except that such percentage shall be 
        adjusted effective January 1 of each year beginning after the 
        effective date of the New Fair Deal Banking and Housing 
        Stability Act of 2013, by increasing such percentage (as it may 
        have been previously adjusted) by 0.7 percentage points'';
            (2) in paragraph (2), by inserting before ``; and'' the 
        following: ``; except that such percentage shall be adjusted 
        effective January 1 of each year beginning after the effective 
        date of the New Fair Deal Banking and Housing Stability Act of 
        2013, by increasing such percentage (as it may have been 
        previously adjusted) by 0.15 percentage points''; and
            (3) in paragraph (3), by inserting before the period at the 
        end the following: ``; and except that such percentage shall be 
        adjusted effective January 1 of each year beginning after the 
        effective date of the New Fair Deal Banking and Housing 
        Stability Act of 2013, by increasing such percentage (as it may 
        have been previously adjusted) by 0.15 percentage points''.

SEC. 114. ENTERPRISE PORTFOLIO LIMITATIONS.

    The Housing and Community Development Act of 1992 (12 U.S.C. 4611 
et seq.) is amended by striking section 1369E (12 U.S.C. 4624) and 
inserting the following new section:

``SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF ENTERPRISES.

    ``(a) Restriction.--No enterprise shall own, as of any applicable 
date in this subsection or thereafter, mortgage assets in excess of--
            ``(1) as of December 31, 2013, $550,000,000,000; or
            ``(2) as of December 31 of each year thereafter, 80 percent 
        of the aggregate amount of mortgage assets that the enterprise 
        was permitted to own pursuant to this section as of December 31 
        of the immediately preceding calendar year.
    ``(b) Definition of Mortgage Assets.--For purposes of this section, 
the term `mortgage assets' means, with respect to an enterprise, assets 
of such enterprise consisting of mortgages, mortgage loans, mortgage-
related securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage investment 
conduits and similar assets, in each case to the extent such assets 
would appear on the balance sheet of such enterprise in accordance with 
generally accepted accounting principles in effect in the United States 
as of September 7, 2008 (as set forth in the opinions and 
pronouncements of the Accounting Principles Board and the American 
Institute of Certified Public Accountants and statements and 
pronouncements of the Financial Accounting Standards Board from time to 
time; and without giving any effect to any change that may be made 
after September 7, 2008, in respect of Statement of Financial 
Accounting Standards No. 140 or any similar accounting standard).''.

            PART 3--ABOLITION OF FANNIE MAE AND FREDDIE MAC

SEC. 121. ABOLISHMENT OF ENTERPRISES.

    (a) Repeal of Charters.--
            (1) Fannie mae.--Effective upon the expiration of the 5-
        year period beginning on the date of the enactment of this Act, 
        the Federal National Mortgage Association Charter Act (12 
        U.S.C. 1716 et seq.) is repealed and the Federal National 
        Mortgage Association shall have no authority to conduct new 
        business under such charter, except that the provisions of such 
        charter in effect immediately before such repeal shall continue 
        to apply with respect to the rights and obligations of any 
        holders of--
                    (A) outstanding debt obligations of the Federal 
                National Mortgage Association, including any--
                            (i) bonds, debentures, notes, or other 
                        similar instruments;
                            (ii) capital lease obligations; or
                            (iii) obligations in respect of letters of 
                        credit, bankers' acceptances, or other similar 
                        instruments; or
                    (B) mortgage-backed securities guaranteed by the 
                Federal National Mortgage Association.
            (2) Freddie mac.--Effective upon the expiration of the 5-
        year period beginning on the date of the enactment of this Act, 
        the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 
        et seq.) is repealed and the Federal Home Loan Mortgage 
        Corporation shall have no authority to conduct new business 
        under such charter, except that the provisions of such charter 
        in effect immediately before such repeal shall continue to 
        apply with respect to the rights and obligations of any holders 
        of--
                    (A) outstanding debt obligations of the Federal 
                Home Loan Mortgage Corporation, including any--
                            (i) bonds, debentures, notes, or other 
                        similar instruments;
                            (ii) capital lease obligations; or
                            (iii) obligations in respect of letters of 
                        credit, bankers' acceptances, or other similar 
                        instruments; or
                    (B) mortgage-backed securities guaranteed by the 
                Federal Home Loan Mortgage Corporation.
            (3) Existing guarantee obligations.--
                    (A) Explicit guarantee.--The full faith and credit 
                of the United States is pledged to the payment of all 
                amounts which may be required to be paid under any 
                obligation described under paragraphs (1) and (2).
                    (B) Applicability.--Except for amounts determined 
                necessary for use for winding up the affairs of the 
                enterprises pursuant to subsection (b), all guarantee 
                fee amounts derived from the mortgage guarantee 
                business of the enterprises in existence as of the 
                expiration of the 5-year period beginning on the date 
                of the enactment of this Act shall be deposited into 
                the Treasury of the United States, for purposes of 
                deficit reduction.
    (b) Wind-Down of Enterprises.--
            (1) Termination of current conservatorship.--Upon the 
        expiration of the 5-year period beginning on the date of the 
        enactment of this Act, the Director of the Federal Housing 
        Finance Agency shall, with respect to each enterprise, appoint 
        the Federal Housing Finance Agency as receiver under section 
        1367 of the Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 and carry out such receivership under the 
        authority of such section and in accordance with this Act and 
        any amendments made by this Act.
            (2) Wind down.--During the 5-year period that begins upon 
        the date of the enactment of this Act, the Director of the 
        Federal Housing Finance Agency, in consultation with the 
        Secretary of the Treasury, shall take such action, and may 
        prescribe such regulations and procedures, as may be necessary 
        and consistent with the receiverships pursuant to paragraph (1) 
        to wind down the operations of the enterprises in an orderly 
        manner that complies with the requirements of this Act and any 
        amendments made by this Act.
            (3) Division of assets and liabilities; authority to 
        establish holding corporation and dissolution trust fund.--The 
        action and procedures required under paragraph (2)--
                    (A) shall include the establishment and execution 
                of plans to provide for an equitable division, 
                distribution, and liquidation of the assets and 
                liabilities of each enterprise, including any 
                infrastructure, property, including intellectual 
                property, platforms, or any other thing or object of 
                value, provided that such plans shall--
                            (i) provide for the sale, at auction, of 
                        the servicing rights to mortgages guaranteed by 
                        an enterprise under terms that ensure that a 
                        purchaser of such servicing rights shall assume 
                        a first loss position in the event of a default 
                        under such a mortgage in an amount equal to 20 
                        percent of the aggregate amount of such loss 
                        and the Federal Government shall be liable to 
                        the purchaser for the remainder of such loss;
                            (ii) provide for the sale, at auction, of 
                        any other assets of an enterprise having value; 
                        and
                            (iii) comply with the requirements of this 
                        Act and any amendments made by this Act;
                    (B) may provide for establishment of a holding 
                corporation organized under the laws of any State of 
                the United States or the District of Columbia for the 
                purpose of winding down an enterprise; and
                    (C) shall provide for establishment of one or more 
                trusts to which to transfer--
                            (i) outstanding debt obligations of an 
                        enterprise; or
                            (ii) outstanding mortgages held for the 
                        purpose of collateralizing mortgage-backed 
                        securities guaranteed by an enterprise.
    (c) Conforming Amendments to Federal Home Loan Bank Act.--Effective 
upon the expiration of the 5-year period that begins on the date of the 
enactment of this Act, the Federal Home Loan Bank Act is amended--
            (1) in section 10(a)(3)(B) (12 U.S.C. 1430(a)(3)(B)), by 
        striking ``(including without limitation, mortgage-backed 
        securities issued or guaranteed by the Federal Home Loan 
        Mortgage Corporation, the Federal National Mortgage 
        Corporation, and the Government National Mortgage 
        Association)''; and
            (2) in section 16(a) (12 U.S.C. 1436(a)), by striking ``, 
        in obligations, participations, or other instruments'' and all 
        that follows through ``section 306 of the Federal Home Loan 
        Mortgage Corporation Act,''.

    Subtitle B--Termination of Insurance for Banks' Mortgage Lending

            PART 1--IMMEDIATE REFORMS OF FHA CREDIT PROGRAMS

SEC. 131. FHA LENDER REPURCHASE REQUIREMENT.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding at the end the following new section:

``SEC. 259. LENDER REPURCHASE REQUIREMENT.

    ``The Secretary may not newly insure any mortgage on a 1- to 4-
family residential property unless the mortgagee under such mortgage 
enters into such binding agreements as the Secretary considers 
necessary to ensure that, if the mortgagor is in default with respect 
to the mortgagor's obligation to make payments under the mortgage for 
30 or more consecutive days during the 6-month period beginning upon 
origination of the mortgage, the mortgagee will, upon notice by the 
Secretary, repurchase such mortgage in an amount equal to the remaining 
principal obligation under the mortgage, as determined in accordance 
with guidelines issued by the Secretary.''.

SEC. 132. PROHIBITION OF FHA MORTGAGE INSURANCE FOR CASH-OUT 
              REFINANCINGS.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

``SEC. 260. PROHIBITION OF CASH-OUT REFINANCINGS.

    ``The Secretary may not newly insure any mortgage on a 1- to 4-
family residential property under which--
            ``(1) a portion of the mortgage proceeds are used to prepay 
        or pay off the outstanding principal obligation under an 
        existing mortgage or loan secured by the same residential 
        property; and
            ``(2) any portion of the mortgage proceeds are used for any 
        purpose other than to prepay or pay off such existing mortgage 
        and for any settlement costs in connection with such mortgage, 
        as determined in accordance with guidelines issued by the 
        Secretary.''.

SEC. 133. FHA LIMITATION ON SELLER CONCESSIONS.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

``SEC. 261. LIMITATION ON SELLER CONCESSIONS.

    ``The Secretary may not newly insure any mortgage on a 1- to 4-
family residential property with respect to which the seller of the 
property subject to such mortgage (or any third party or entity that is 
reimbursed directly or indirectly by the seller) contributes toward the 
acquisition of the property by the mortgagor any amount in excess of 3 
percent of the total closing costs (as determined by the Secretary) in 
connection with such acquisition.''.

           PART 2--REDUCING TAXPAYER GUARANTEES OF MORTGAGES

SEC. 141. REDUCTION OF FHA MORTGAGE INSURANCE COVERAGE.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as 
amended by the preceding provisions of this Act, is further amended by 
adding at the end the following new section:

``SEC. 262. REDUCTION OF MORTGAGE INSURANCE COVERAGE.

    ``Notwithstanding any other provision of this title, the Secretary 
may not insure, or make any commitment to insure, any portion of any 
mortgage on a 1- to 4-family residential property in excess of the 
amount equal to the following percentage of the original principal 
obligation of the mortgage:
            ``(1) In the case of any such mortgage insured after the 
        date of the enactment of the New Fair Deal Banking and Housing 
        Stability Act of 2013, 80 percent of such original principal 
        obligation, subject to paragraphs (2) through (5).
            ``(2) In the case of any such mortgage insured after the 
        expiration of the 1-year period beginning on the date of the 
        enactment of such Act, 70 percent of such original principal 
        obligation, subject to paragraphs (3) through (5).
            ``(3) In the case of any such mortgage insured after the 
        expiration of the 2-year period beginning on the date of the 
        enactment of such Act, 60 percent of such original principal 
        obligation, subject to paragraphs (4) through (5).
            ``(4) In the case of any such mortgage insured after the 
        expiration of the 3-year period beginning on the date of the 
        enactment of such Act, 50 percent of such original principal 
        obligation, subject to paragraph (5).
            ``(5) In the case of any such mortgage insured after the 
        expiration of the 4-year period beginning on the date of the 
        enactment of such Act, 40 percent of such original principal 
        obligation.''.

SEC. 142. INCREASE IN FHA DOWNPAYMENT REQUIREMENT.

    Subparagraph (A) of section 203(b)(9) of the National Housing Act 
(12 U.S.C. 1709(b)(9)(A)) is amended--
            (1) by striking ``(A) In general.--A mortgage'' and 
        inserting the following:
                    ``(A) In general.--
                            ``(i) Payment requirement.--A mortgage'';
            (2) by striking ``3.5 percent of the appraised value of the 
        property'' and inserting ``the percentage of the appraised 
        value of the property specified in clause (ii)''; and
            (3) by adding at the end the following new clause:
                            ``(ii) Percentage of appraised value of 
                        property.--The percentage of the appraised 
                        value of a property specified in this clause 
                        is--
                                    ``(I) for a mortgage insured under 
                                this section after the date of the 
                                enactment of the New Fair Deal Banking 
                                and Housing Stability Act of 2013, 5.0 
                                percent, subject to subclauses (II) 
                                through (V);
                                    ``(II) for a mortgage insured under 
                                this section after the expiration of 
                                the 1-year period beginning on the date 
                                of the enactment of the New Fair Deal 
                                Banking and Housing Stability Act of 
                                2013, 6.5 percent, subject to 
                                subclauses (III) through (V);
                                    ``(III) for a mortgage insured 
                                under this section after the expiration 
                                of the 2-year period beginning on the 
                                date of the enactment of the New Fair 
                                Deal Banking and Housing Stability Act 
                                of 2013, 8.0 percent, subject to 
                                subclauses (IV) and (V);
                                    ``(IV) for a mortgage insured under 
                                this section after the expiration of 
                                the 3-year period beginning on the date 
                                of the enactment of the New Fair Deal 
                                Banking and Housing Stability Act of 
                                2013, 9.5 percent, subject to subclause 
                                (V); and
                                    ``(V) for a mortgage insured under 
                                this section after the expiration of 
                                the 4-year period beginning on the date 
                                of the enactment of the New Fair Deal 
                                Banking and Housing Stability Act of 
                                2013, 11.0 percent.''.

              PART 3--TERMINATION OF FHA CREDIT GUARANTEES

SEC. 151. TERMINATION OF FHA INSURANCE AUTHORITY.

    (a) Termination.--Effective upon the expiration of the 5-year 
period beginning on the date of the enactment of this Act, the 
Secretary of Housing and Urban Development may not insure, guarantee, 
or make any mortgage or other loan pursuant to any of the following 
provisions of law:
            (1) National housing act.--Titles I, II, V, VI, VII, VIII, 
        IX, and XI of the National Housing Act (12 U.S.C. 1702 et seq., 
        1707 et seq., 1731a et seq., 1736 et seq., 1747 et seq., 1748 
        et seq., 1750 et seq., 1749aaa et seq.).
            (2) Energy efficient mortgages program.--Section 106 of the 
        Energy Policy Act of 1992 (12 U.S.C. 1701z-16) or section 513 
        of the Housing and Community Development Act of 1992 (Public 
        Law 102-550; 106 Stat. 3786).
            (3) Flexible subsidy program.--Section 201 of the Housing 
        and Community Development Amendments of 1978 (12 U.S.C. 1715z-
        1a).
            (4) Loan guarantees for indian housing.--Section 184 of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 1715z-
        13a).
            (5) Loan guarantees for native hawaiian housing.--Section 
        184A of the Housing and Community Development Act of 1992 (12 
        U.S.C. 1715z-13b).
            (6) Multifamily mortgage credit program.--Section 542 of 
        the Housing and Community Development Act of 1992 (12 U.S.C. 
        1715z-22).
    (b) Repeals.--Effective upon the expiration of the period referred 
to in subsection (a), the provisions of law specified in such 
subsection are repealed.
    (c) Transfer of FHA Functions to Secretary of the Treasury.--
Effective upon the expiration of the period referred to in subsection 
(a), all FHA functions are transferred to the Secretary of the 
Treasury, but only to the extent necessary to fulfill outstanding 
obligations of the Department of Housing and Urban Development under 
such provisions and windup the business of the Department of Housing 
and Urban Development under such provisions.
    (d) Resolution and Termination of FHA Functions.--
            (1) Resolution of functions.--The Secretary of the Treasury 
        shall--
                    (A) complete the disposition and resolution of FHA 
                functions in accordance with this section; and
                    (B) resolve all FHA functions that are transferred 
                to the Secretary under subsection (c).
            (2) Termination of functions.--All FHA functions that are 
        transferred to the Secretary under subsection (c) shall 
        terminate on the date all obligations of the FHA, and all 
        obligations of others to the FHA, in effect immediately before 
        the expiration of the period referred to in subsection (a) have 
        been satisfied, as determined by the Secretary of the Treasury.
            (3) Report to congress.--Upon making the determination 
        described in paragraph (2), the Secretary of the Treasury shall 
        report the determination to the Committee on Financial Services 
        of the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate.
    (e) Duties of Secretary of the Treasury.--
            (1) In general.--The Secretary of the Treasury shall be 
        responsible for the implementation of this section, including--
                    (A) the administration and wind-up of all FHA 
                functions transferred to the Secretary under subsection 
                (c);
                    (B) the administration and wind-up of any 
                outstanding obligations of the Federal Government under 
                any programs terminated by this section; and
                    (C) taking such other actions as may be necessary 
                to wind-up any outstanding affairs of the FHA.
    (f) Personnel.--Effective upon the expiration of the period 
referred to in subsection (a), there are transferred to the Department 
of the Treasury all individuals, who--
            (1) immediately before such expiration, were officers or 
        employees of the Department of Housing and Urban Development; 
        and
            (2) in their capacity as such an officer or employee, 
        performed functions that are transferred to the Secretary under 
        subsection (c).
    (g) Exercise of Authorities.--Except as otherwise provided by law, 
a Federal official to whom a function is transferred by this section, 
for purposes of performing the function and subject to subsection (c), 
exercise all authorities under any other provision of law that were 
available with respect to the performance of that function to the 
official responsible for the performance of the function immediately 
before the effective date of the transfer of the function under this 
section.
    (h) Transfer of Assets.--Except as otherwise provided in this 
section so much of the personnel, property, records, and unexpended 
balances of appropriations, allocations, and other funds employed, 
used, held, available, or to be made available in connection with a 
function transferred to an official or agency by this section shall be 
available to the official or the head of that agency, respectively, at 
such time or times as the Director of the Office of Management and 
Budget directs for use in connection with the functions transferred.
    (i) Delegation and Assignment.--Except as otherwise expressly 
prohibited by law, an official to whom functions are transferred under 
this section (including the head of any office to which functions are 
transferred under this section) may delegate any of the functions so 
transferred to such officers and employees of the office of the 
official as the official may designate, and may authorize successive 
redelegations of such functions as may be necessary or appropriate. No 
delegation of functions under this subsection or under any other 
provision of this section shall relieve the official to whom a function 
is transferred under this section of responsibility for the 
administration of the function.
    (j) Authority of Secretary of the Treasury With Respect to 
Functions Transferred.--
            (1) Determinations.--If necessary, the Secretary of the 
        Treasury shall make any determination of the functions that are 
        transferred under this section.
            (2) Incidental transfers.--The Secretary of the Treasury, 
        at such time or times as the Secretary shall provide, may make 
        such determinations as may be necessary with regard to the 
        functions transferred by this section, and to make such 
        additional incidental dispositions of personnel, assets, 
        liabilities, grants, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds held, used, arising from, 
        available to, or to be made available in connection with such 
        functions, as may be necessary to carry out the provisions of 
        this section.
    (k) Savings Provisions.--
            (1) Authority regarding outstanding commitments.--
        Notwithstanding the repeals under subsection (b), the Secretary 
        may insure, guarantee, or make any mortgage for which a 
        commitment to insure, guarantee, or make was made before the 
        effective date of such repeals under the provision of law 
        repealed. Any such mortgage shall be subject to the terms of 
        the provisions of law repealed as in effect immediately before 
        such repeal.
            (2) Effect on outstanding mortgage insurance.--Any mortgage 
        insurance, funds, or activities subject, before repeal, to a 
        provision of law repealed by subsection (b) shall continue to 
        be governed by the provision as in effect immediately before 
        repeal.
            (3) Existing rights, duties, and obligations not 
        affected.--Subsections (a) and (b) shall not affect the 
        validity of any right, duty, or obligation of the United 
        States, the Secretary of Housing and Urban Development, or any 
        other person, which--
                    (A) arises under any provision of law repealed by 
                subsection (b); and
                    (B) existed immediately before the effective date 
                of such repeals.
            (4) Legal documents.--All orders, determinations, rules, 
        regulations, permits, grants, loans, contracts, agreements, 
        certificates, licenses, and privileges--
                    (A) that have been issued, made, granted, or 
                allowed to become effective by the Secretary of Housing 
                and Urban Development, any officer or employee of any 
                office transferred by this section, or any other 
                Government official, or by a court of competent 
                jurisdiction, in the performance of any function that 
                is transferred by this section, and
                    (B) that are in effect upon the expiration of the 
                period referred to in subsection (a) (or become 
                effective after such date pursuant to their terms as in 
                effect upon such expiration), shall continue in effect 
                according to their terms until modified, terminated, 
                superseded, set aside, or revoked in accordance with 
                law by the President, any other authorized official, a 
                court of competent jurisdiction, or operation of law.
            (5) Proceedings.--This section shall not affect any 
        proceedings or any application for any benefits, service, 
        license, permit, certificate, or financial assistance pending 
        upon the expiration of the period referred to in subsection (a) 
        before an office transferred by this section, but such 
        proceedings and applications shall be continued. Orders shall 
        be issued in such proceedings, appeals shall be taken 
        therefrom, and payments shall be made pursuant to such orders, 
        as if this section had not been enacted, and orders issued in 
        any such proceeding shall continue in effect until modified, 
        terminated, superseded, or revoked by a duly authorized 
        official, by a court of competent jurisdiction, or by operation 
        of law. Nothing in this paragraph shall be considered to 
        prohibit the discontinuance or modification of any such 
        proceeding under the same terms and conditions and to the same 
        extent that such proceeding could have been discontinued or 
        modified if this section had not been enacted.
            (6) Nonabatement of actions.--No action or other proceeding 
        commenced by or against the Secretary of Housing and Urban 
        Development in connection with functions transferred to the 
        Secretary of the Treasury under subsection (c) shall abate by 
        reason of the enactment of this section, except that the 
        Secretary of the Treasury shall be substituted for the 
        Secretary of Housing and Urban Development as a party to any 
        such action or proceeding.
            (7) Suits.--This section shall not affect suits commenced 
        before the expiration of the period referred to in subsection 
        (a), and in all such suits, proceeding shall be had, appeals 
        taken, and judgments rendered in the same manner and with the 
        same effect as if this section had not been enacted. If any 
        Government officer in the official capacity of such officer is 
        party to a suit with respect to a function of the officer, and 
        under this section such function is transferred to any other 
        officer or office, then such suit shall be continued with the 
        other officer or the head of such other office, as applicable, 
        substituted or added as a party.
            (8) Administrative procedure and judicial review.--Except 
        as otherwise provided by this section, any statutory 
        requirements relating to notice, hearings, action upon the 
        record, or administrative or judicial review that apply to any 
        function transferred by this section shall apply to the 
        exercise of such function by the head of the Federal agency, 
        and other officers of the agency, to which such function is 
        transferred by this section.
    (l) Availability of Existing Funds.--Existing appropriations and 
funds available for the performance of functions, programs, and 
activities terminated pursuant to this section shall remain available, 
for the duration of their period of availability, for necessary 
expenses in connection with the termination and resolution of such 
functions, programs, and activities. Upon the expiration of all 
contracts and agreements with respect to such functions, programs, and 
activities, any unexpended balances of the funds referred to in this 
subsection shall be deposited in the Treasury as miscellaneous 
receipts.
    (m) References.--Any reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or pertaining to a department or office from which a function is 
transferred by this section--
            (1) to the head of such department or office is deemed to 
        refer to the head of the department or office to which the 
        function is transferred; or
            (2) to such department or office is deemed to refer to the 
        department or office to which the function is transferred.
    (n) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) FHA.--The term ``FHA'' means the Secretary of Housing 
        and Urban Development, but only to the extent of the 
        operations, authority, and functions of the Secretary pursuant 
        to the provisions of law repealed by subsection (b).
            (2) FHA functions.--The term ``FHA functions'' means 
        functions under the provisions of law repealed by subsection 
        (b) that, immediately before the effective date of such 
        repeals, are authorized to be performed by the Secretary of 
        Housing and Urban Development or any officer or employee of the 
        Department of Housing and Urban Development, or any office of 
        the Department of Housing and Urban Development.
            (3) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (4) Office.--The term ``office'' includes any office, 
        administration, agency, bureau, institute, council, unit, 
        organizational entity, or component thereof.

Subtitle C--Ending Guarantees for Government Mortgage-Backed Securities

SEC. 161. LIMITATION ON GNMA GUARANTEES.

    Subsection (g) of section 306 of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1721(g)) is amended by adding at the 
end the following new paragraph:
    ``(4) The Association may not enter into commitments to issue 
guarantees under this subsection in an aggregate amount--
            ``(A) in any month commencing after the date of the 
        enactment of the New Fair Deal Banking and Housing Stability 
        Act of 2013, that exceeds $38,000,000,000, subject to 
        subparagraphs (B) through (F);
            ``(B) in any month commencing after the expiration of the 
        1-year period beginning on the date of the enactment of the New 
        Fair Deal Banking and Housing Stability Act of 2013, that 
        exceeds $32,000,000,000, subject to subparagraphs (C) through 
        (F);
            ``(C) in any month commencing after the expiration of the 
        2-year period beginning on the date of the enactment of the New 
        Fair Deal Banking and Housing Stability Act of 2013, that 
        exceeds $24,000,000,000, subject to subparagraphs (D) through 
        (F);
            ``(D) in any month commencing after the expiration of the 
        3-year period beginning on the date of the enactment of the New 
        Fair Deal Banking and Housing Stability Act of 2013, that 
        exceeds $16,000,000,000, subject to subparagraphs (E) and (F);
            ``(E) in any month commencing after the expiration of the 
        4-year period beginning on the date of the enactment of the New 
        Fair Deal Banking and Housing Stability Act of 2013, that 
        exceeds $8,000,000,000, subject to subparagraph (F); and
            ``(F) in any month commencing after the expiration of the 
        5-year period beginning on the date of the enactment of the New 
        Fair Deal Banking and Housing Stability Act of 2013, that 
        exceeds $0.''.

SEC. 162. ABOLISHMENT OF GINNIE MAE.

    (a) Abolishment and Transfer.--Effective upon the expiration of the 
5-year period beginning on the date of the enactment of this Act--
            (1) the Government National Mortgage Association is 
        abolished; and
            (2) all functions that, immediately before the expiration 
        of such period are authorized to be performed by the 
        Association, any officer or employee of the Association acting 
        in that capacity, or any office of the Association, are 
        transferred to the Secretary of the Treasury.
    (b) Repeals.--
            (1) Charter.--For provisions repealing the organic 
        authority of the Government National Mortgage Association, see 
        section 121(a)(1) of this Act.
            (2) Administrative expenses provision.--Effective upon the 
        expiration of the period referred to in subsection (a), 
        subsection (b) of section 306 of the Housing Act of 1959 (12 
        U.S.C. 1721 note) is hereby repealed.
    (c) Resolution and Termination of FHA Functions.--
            (1) Resolution of functions.--The Secretary of the Treasury 
        shall--
                    (A) complete the disposition and resolution of FHA 
                functions in accordance with this section; and
                    (B) resolve all FHA functions that are transferred 
                to the Secretary under subsection (a)(2).
            (2) Termination of functions.--All FHA functions that are 
        transferred to the Secretary under subsection (a)(2) shall 
        terminate on the date all obligations of the FHA, and all 
        obligations of others to the FHA, in effect immediately before 
        the expiration of the period referred to in subsection (a) have 
        been satisfied, as determined by the Secretary of the Treasury.
            (3) Report to congress.--Upon making the determination 
        described in paragraph (2), the Secretary of the Treasury shall 
        report the determination to the Committee on Financial Services 
        of the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate.
    (d) Duties of Secretary of the Treasury.--
            (1) In general.--The Secretary of the Treasury shall be 
        responsible for the implementation of this section, including--
                    (A) the administration and wind-up of all FHA 
                functions transferred to the Secretary under subsection 
                (c);
                    (B) the administration and wind-up of any 
                outstanding obligations of the Federal Government under 
                any programs terminated by this section; and
                    (C) taking such other actions as may be necessary 
                to wind-up any outstanding affairs of the FHA.
    (e) Personnel.--Effective upon the expiration of the period 
referred to in subsection (a), there are transferred to the Department 
of the Treasury all individuals, who--
            (1) immediately before such expiration, were officers or 
        employees of the Department of Housing and Urban Development; 
        and
            (2) in their capacity as such an officer or employee, 
        performed functions that are transferred to the Secretary under 
        subsection (c).
    (f) Exercise of Authorities.--Except as otherwise provided by law, 
a Federal official to whom a function is transferred by this section, 
for purposes of performing the function, exercise all authorities under 
any other provision of law that were available with respect to the 
performance of that function to the official responsible for the 
performance of the function immediately before the effective date of 
the transfer of the function under this section.
    (g) Transfer of Assets.--Except as otherwise provided in this 
section so much of the personnel, property, records, and unexpended 
balances of appropriations, allocations, and other funds employed, 
used, held, available, or to be made available in connection with a 
function transferred to an official or agency by this section shall be 
available to the official or the head of that agency, respectively, at 
such time or times as the Director of the Office of Management and 
Budget directs for use in connection with the functions transferred.
    (h) Delegation and Assignment.--Except as otherwise expressly 
prohibited by law, an official to whom functions are transferred under 
this section (including the head of any office to which functions are 
transferred under this section) may delegate any of the functions so 
transferred to such officers and employees of the office of the 
official as the official may designate, and may authorize successive 
redelegations of such functions as may be necessary or appropriate. No 
delegation of functions under this subsection or under any other 
provision of this section shall relieve the official to whom a function 
is transferred under this section of responsibility for the 
administration of the function.
    (i) Authority of Secretary of the Treasury With Respect to 
Functions Transferred.--
            (1) Determinations.--If necessary, the Secretary of the 
        Treasury shall make any determination of the functions that are 
        transferred under this section.
            (2) Incidental transfers.--The Secretary of the Treasury, 
        at such time or times as the Secretary shall provide, may make 
        such determinations as may be necessary with regard to the 
        functions transferred by this section, and to make such 
        additional incidental dispositions of personnel, assets, 
        liabilities, grants, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds held, used, arising from, 
        available to, or to be made available in connection with such 
        functions, as may be necessary to carry out the provisions of 
        this section.
    (j) Savings Provisions.--
            (1) Authority regarding outstanding commitments.--
        Notwithstanding the repeals under subsection (b), the Secretary 
        may insure any mortgage for which a commitment to insure was 
        made before the effective date of such repeals under the 
        provision of law repealed. Any such mortgage shall be subject 
        to the terms of the provisions of law repealed as in effect 
        immediately before such repeal.
            (2) Effect on outstanding mortgage insurance.--Any mortgage 
        insurance, funds, or activities subject, before repeal, to a 
        provision of law repealed by subsection (b) shall continue to 
        be governed by the provision as in effect immediately before 
        repeal.
            (3) Existing rights, duties, and obligations not 
        affected.--Subsections (a) and (b) shall not affect the 
        validity of any right, duty, or obligation of the United 
        States, the Secretary of Housing and Urban Development, or any 
        other person, which--
                    (A) arises under any provision of law repealed by 
                subsection (b); and
                    (B) existed immediately before the effective date 
                of such repeals.
            (4) Legal documents.--All orders, determinations, rules, 
        regulations, permits, grants, loans, contracts, agreements, 
        certificates, licenses, and privileges--
                    (A) that have been issued, made, granted, or 
                allowed to become effective by the Secretary of Housing 
                and Urban Development, any officer or employee of any 
                office transferred by this section, or any other 
                Government official, or by a court of competent 
                jurisdiction, in the performance of any function that 
                is transferred by this section, and
                    (B) that are in effect upon the expiration of the 
                period referred to in subsection (a) (or become 
                effective after such date pursuant to their terms as in 
                effect upon such expiration), shall continue in effect 
                according to their terms until modified, terminated, 
                superseded, set aside, or revoked in accordance with 
                law by the President, any other authorized official, a 
                court of competent jurisdiction, or operation of law.
            (5) Proceedings.--This section shall not affect any 
        proceedings or any application for any benefits, service, 
        license, permit, certificate, or financial assistance pending 
        upon the expiration of the period referred to in subsection (a) 
        before an office transferred by this section, but such 
        proceedings and applications shall be continued. Orders shall 
        be issued in such proceedings, appeals shall be taken 
        therefrom, and payments shall be made pursuant to such orders, 
        as if this section had not been enacted, and orders issued in 
        any such proceeding shall continue in effect until modified, 
        terminated, superseded, or revoked by a duly authorized 
        official, by a court of competent jurisdiction, or by operation 
        of law. Nothing in this paragraph shall be considered to 
        prohibit the discontinuance or modification of any such 
        proceeding under the same terms and conditions and to the same 
        extent that such proceeding could have been discontinued or 
        modified if this section had not been enacted.
            (6) Nonabatement of actions.--No action or other proceeding 
        commenced by or against the Secretary of Housing and Urban 
        Development in connection with functions transferred to the 
        Secretary of the Treasury under subsection (c) shall abate by 
        reason of the enactment of this section, except that the 
        Secretary of the Treasury shall be substituted for the 
        Secretary of Housing and Urban Development as a party to any 
        such action or proceeding.
            (7) Suits.--This section shall not affect suits commenced 
        before the expiration of the period referred to in subsection 
        (a), and in all such suits, proceeding shall be had, appeals 
        taken, and judgments rendered in the same manner and with the 
        same effect as if this section had not been enacted. If any 
        Government officer in the official capacity of such officer is 
        party to a suit with respect to a function of the officer, and 
        under this section such function is transferred to any other 
        officer or office, then such suit shall be continued with the 
        other officer or the head of such other office, as applicable, 
        substituted or added as a party.
            (8) Administrative procedure and judicial review.--Except 
        as otherwise provided by this section, any statutory 
        requirements relating to notice, hearings, action upon the 
        record, or administrative or judicial review that apply to any 
        function transferred by this section shall apply to the 
        exercise of such function by the head of the Federal agency, 
        and other officers of the agency, to which such function is 
        transferred by this section.
    (k) Availability of Existing Funds.--Existing appropriations and 
funds available for the performance of functions, programs, and 
activities terminated pursuant to this section shall remain available, 
for the duration of their period of availability, for necessary 
expenses in connection with the termination and resolution of such 
functions, programs, and activities. Upon the expiration of all 
contracts and agreements with respect to such functions, programs, and 
activities, any unexpended balances of the funds referred to in this 
subsection shall be deposited in the Treasury as miscellaneous 
receipts.
    (l) References.--Any reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or pertaining to a department or office from which a function is 
transferred by this section--
            (1) to the head of such department or office is deemed to 
        refer to the head of the department or office to which the 
        function is transferred; or
            (2) to such department or office is deemed to refer to the 
        department or office to which the function is transferred.
    (m) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Association.--The term ``Association'' means the 
        Government National Mortgage Association.
            (2) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (3) Office.--The term ``office'' includes any office, 
        administration, agency, bureau, institute, council, unit, 
        organizational entity, or component thereof.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.

      Subtitle D--Repealing Regulations That Promote Risky Lending

SEC. 171. REPEAL OF THE COMMUNITY REINVESTMENT ACT OF 1977.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
hereby repealed.

SEC. 172. REPEAL OF DODD-FRANK CREDIT RISK RETENTION PROVISIONS.

    (a) Credit Risk Retention.--Section 15G of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o-11) is hereby repealed.
    (b) Study.--Subsection (c) of section 941 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby repealed.

SEC. 173. REPEAL OF DODD-FRANK ABILITY TO REPAY AND QUALIFIED MORTGAGE 
              PROVISIONS.

    Section 129C of the Truth in Lending Act (15 U.S.C. 1639c) is 
amended--
            (1) by striking subsections (a) and (b); and
            (2) by redesignating subsections (c) through (i) as 
        subsections (a) through (g), respectively.

SEC. 174. REPEAL OF THE HOME MORTGAGE DISCLOSURE ACT OF 1975.

    The Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) 
is hereby repealed.

SEC. 175. REPEAL OF FEDERAL HOME LOAN BANKS AFFORDABLE HOUSING PROGRAM 
              AND HOUSING GOALS.

    (a) Affordable Housing Program.--The Federal Home Loan Bank Act (12 
U.S.C. 1421 et seq.) is amended--
            (1) in section 10 (12 U.S.C. 1430), by striking subsections 
        (g), (h), (i), (j), and (k); and
            (2) by repealing section 10b (12 U.S.C. 1430b).
    (b) Housing Goals.--Section 10C of the Federal Home Loan Bank Act 
(12 U.S.C. 1430C) is hereby repealed.

SEC. 176. REPEAL OF FDIC AFFORDABLE HOUSING PROGRAM.

    Section 40 of the Federal Deposit Insurance Act (12 U.S.C. 1831q) 
is hereby repealed.

    Subtitle E--Stopping Subsidies for Certain Obstacles to Housing 
                              Construction

SEC. 181. REPEAL OF TRANSPORTATION PLANNING PROVISIONS; RESCISSION.

    (a) Repeals.--
            (1) Federal-aid highways.--Sections 134 and 135 of title 
        23, United States Code, and the items relating to such sections 
        in the analysis for chapter 1 of that title, are repealed.
            (2) Research, technology, and education.--Section 505 of 
        title 23, United States Code, and the item relating to that 
        section in the analysis for chapter 5 of that title, are 
        repealed.
            (3) Public transportation.--Sections 5303, 5304, and 5305 
        of title 49, United States Code, and the items relating to such 
        sections in the analysis for chapter 53 of that title, are 
        repealed.
    (b) Rescissions.--Effective on the date of the enactment of this 
Act, the unobligated balances available on such date of enactment of 
funds made available to carry out each of the sections repealed by this 
section are hereby rescinded.

SEC. 182. TERMINATION OF HUD SUSTAINABLE COMMUNITIES INITIATIVES; 
              RESCISSION.

    (a) Termination.--The following programs, activities, and 
initiatives of the Department of Housing and Urban Development are 
hereby terminated:
            (1) Sustainable communities initiative.--The Sustainable 
        Communities Initiative originally established under the heading 
        ``Community Planning and Development--Community Development 
        Fund'' of title II of division A of the Consolidated 
        Appropriations Act, 2010 (Public Law 111-117; 123 Stat. 3084).
            (2) Sustainable communities regional planning grants.--The 
        Regional Integrated Planning Grants program originally 
        established under such heading.
            (3) Community challenge planning grants.--The Community 
        Challenge Planning Grants program originally established under 
        such heading.
            (4) Capacity building for sustainable communities.--The 
        program for capacity building for sustainable communities 
        originally established under such heading.
    (b) Rescissions.--Effective on the date of the enactment of this 
Act, the unobligated balances available on such date of enactment of 
funds made available to carry out each of the programs and initiatives 
terminated by subsection (a) are hereby rescinded.

     TITLE II--ENDING BANK BAILOUTS AND RESTORING MARKET DISCIPLINE

   Subtitle A--Reducing Risks to Bank Depositors and Other Creditors

SEC. 201. CAPITAL REQUIREMENTS.

    (a) In General.--Notwithstanding any other provision of law, the 
appropriate Federal regulators shall set capital standards for 
financial companies as provided in this section.
    (b) Minimum Capital Requirement.--Each financial company shall be 
required to maintain sufficient capital to remain adequately 
capitalized, as defined under subsection (c)(2).
    (c) Capital Categories.--
            (1) Well capitalized.--A financial company is ``well 
        capitalized'' if the company maintains a capital level of 12 
        percent or more.
            (2) Adequately capitalized.--A financial company is 
        ``adequately capitalized'' if the company maintains a capital 
        level of 10 percent or more.
            (3) Undercapitalized.--A financial company is 
        ``undercapitalized'' if the company maintains a capital level 
        of less than 10 percent.
            (4) Significantly undercapitalized.--A financial company is 
        ``significantly undercapitalized'' if the company maintains a 
        capital level of less than 6 percent.
            (5) Critically undercapitalized.--A financial company is 
        ``critically undercapitalized'' if the company maintains a 
        capital level of 2 percent or less.
    (d) Capital Calculation.--In computing a financial company's 
capital for purposes of this section--
            (1) the value of capital shall be calculated based on the 
        current market value of the capital, and not by reference to 
        the book value of such capital;
            (2) the percentage of capital maintained by a company shall 
        be based on the total consolidated assets of the company; and
            (3) there shall be no risk-weighting of assets.
    (e) Phase-In Period.--Notwithstanding subsection (c), during the 6-
year period beginning on the date of the enactment of this Act, the 
percentages contained in paragraphs (1) through (5) of subsection (c) 
shall be treated as follows:
            (1) During the 1-year period following the date of the 
        enactment of this Act, 6 percent, 4 percent, 4 percent, 3 
        percent, and 2 percent, respectively.
            (2) During the 1-year period following the period described 
        under paragraph (1), 7 percent, 5 percent, 5 percent, 3.5 
        percent, and 2 percent, respectively.
            (3) During the 1-year period following the period described 
        under paragraph (2), 8 percent, 6 percent, 6 percent, 4 
        percent, and 2 percent, respectively.
            (4) During the 1-year period following the period described 
        under paragraph (3), 9 percent, 7 percent, 7 percent, 4.5 
        percent, and 2 percent, respectively.
            (5) During the 1-year period following the period described 
        under paragraph (4), 10 percent, 8 percent, 8 percent, 5 
        percent, and 2 percent, respectively.
            (6) During the 1-year period following the period described 
        under paragraph (5), 11 percent, 9 percent, 9 percent, 5.5 
        percent, and 2 percent, respectively.
    (f) Definitions.--For purposes of this section:
            (1) Appropriate federal regulator.--The term ``appropriate 
        Federal regulator''--
                    (A) has the meaning given the term ``appropriate 
                Federal banking agency'' under section 3 of the Federal 
                Deposit Insurance Act (12 U.S.C. 1813);
                    (B) means the Board of Governors of the Federal 
                Reserve System, in the case of a nonbank financial 
                company supervised by the Board of Governors; and
                    (C) means the National Credit Union Administration 
                Board, in the case of a credit union.
            (2) Capital.--The term ``capital'' means common equity tier 
        1 capital and additional tier 1 capital, as such terms are 
        defined in the notice of final rulemaking published in the 
        Federal Register on October 11, 2013 (78 Fed. Reg. 62173-74).
            (3) Credit union.--The term ``credit union'' includes a 
        Federal credit union and a State credit union, as such terms 
        are defined under section 101 of the Federal Credit Union Act 
        (12 U.S.C. 1752).
            (4) Depository institution.--The term ``depository 
        institution'' has the meaning given such term under section 3 
        of the Federal Deposit Insurance Act (12 U.S.C. 1813).
            (5) Depository institution holding company.--The term 
        ``depository institution holding company'' has the meaning 
        given such term under section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813).
            (6) Financial company.--The term ``financial company'' 
        means--
                    (A) a credit union;
                    (B) a depository institution;
                    (C) a depository institution holding company; and
                    (D) a nonbank financial company supervised by the 
                Board of Governors.
            (7) Nonbank financial company supervised by the board of 
        governors.--The term ``nonbank financial company supervised by 
        the Board of Governors'' has the meaning given such term under 
        section 102 of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (12 U.S.C. 5311).

SEC. 202. FDIC INSURANCE.

    (a) Reduction in Maximum Insurance Amount.--Section 11(a)(1) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(a)(1)) is amended--
            (1) by amending subparagraph (E) to read as follows:
                    ``(E) Standard maximum deposit insurance amount 
                defined.--For purposes of this Act, the term `standard 
                maximum deposit insurance amount' means $150,000, 
                adjusted as provided under subparagraph (F).''; and
            (2) in subparagraph (F), by striking ``April 1 of 2010,'' 
        and inserting ``April 1, 2015,''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the day that is the end of the 1-year period beginning on the 
date of the enactment of this Act.

               Subtitle B--Repeal of Bailout Authorities

SEC. 211. REPEAL OF FDIC POWERS UNDER THE SYSTEMIC RISK DETERMINATION.

    The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended--
            (1) in section 11(a)(4)(C) (12 U.S.C. 1821(a)(4)(C)), by 
        striking ``other than section 13(c)(4)(G)''; and
            (2) in section 13(c)(4) (12 U.S.C. 1823(c)(4))--
                    (A) by striking subparagraph (G); and
                    (B) by redesignating subparagraph (H) as 
                subparagraph (G).

SEC. 212. REPEAL OF UNUSUAL AND EXIGENT AUTHORITY OF THE FEDERAL 
              RESERVE.

    Section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)) is 
repealed.

SEC. 213. EXCHANGE STABILIZATION FUND.

    (a) In General.--Section 5302 of title 31, United States Code, is 
amended by striking ``stabilization fund'' each place such term appears 
and inserting ``Special Drawing Rights Fund''.
    (b) Conforming Amendments.--
            (1) Balanced budget and emergency deficit control act of 
        1985.--Section 255(g)(1)(A) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) 
        is amended by striking ``Exchange Stabilization Fund'' and 
        inserting ``Special Drawing Rights Fund''.
            (2) Emergency economic stabilization act of 2008.--The 
        Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et 
        seq.) is amended--
                    (A) in section 131 (12 U.S.C. 5236), by striking 
                ``Exchange Stabilization Fund'' each place such term 
                appears in headings and text and inserting ``Special 
                Drawing Rights Fund''; and
                    (B) in the item relating to section 131 in the 
                table of contents of such Act, by striking ``Exchange 
                Stabilization Fund'' and inserting ``Special Drawing 
                Rights Fund''.
            (3) International financial institutions act.--Section 1704 
        of the International Financial Institutions Act (22 U.S.C. 
        262r-3) is amended by striking ``stabilization fund'' each 
        place such term appears and inserting ``Special Drawing Rights 
        Fund''.
            (4) Special drawing rights act.--The Special Drawing Rights 
        Act (22 U.S.C. 286n et seq.) is amended by striking ``Exchange 
        Stabilization Fund'' each place such term appears and inserting 
        ``Special Drawing Rights Fund''.
    (c) References.--Any reference in a law, regulation, document, 
paper, or other record of the United States to the ``Exchange 
Stabilization Fund'' shall be deemed a reference to the ``Special 
Drawing Rights Fund''.
    (d) Funds Used To Reduce the Debt.--The Secretary of the Treasury 
shall liquidate all property in the Special Drawing Rights Fund (as so 
renamed under subsection (a)), other than Special Drawing Rights, and 
use all such amounts to reduce the public debt.
    (e) Limitation on Fund.--Section 5302 of title 31, United States 
Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``is available to carry out'' and 
                inserting ``is only available to carry out''; and
                    (B) by striking ``, and for investing in 
                obligations of the United States Government those 
                amounts in the fund the Secretary of the Treasury, with 
                the approval of the President, decides are not required 
                at the time to carry out this section. Proceeds of 
                sales and investments, earnings, and interest shall be 
                paid into the fund and are available to carry out this 
                section. However, the fund is not available to pay 
                administrative expenses''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Fund Only To Hold Special Drawing Rights.--Notwithstanding 
any other provision of law, only Special Drawing Rights may be 
deposited into the Special Drawing Rights Fund.''.
    (f) Conforming Amendments.--
            (1) Bretton woods agreements act.--Section 18 of the 
        Bretton Woods Agreements Act (22 U.S.C. 286e-3) is hereby 
        repealed.
            (2) Support for east european democracy (seed) act of 
        1989.--The Support for East European Democracy (SEED) Act of 
        1989 (22 U.S.C. 5401 et seq.) is amended--
                    (A) in section 101(b)(1) (22 U.S.C. 5411(b)(1)), by 
                striking ``such as--'' and all that follows through the 
                end of the paragraph and inserting ``such as the 
                authority provided in section 102(c) of this Act.''; 
                and
                    (B) in section 102(a) (22 U.S.C. 5412(a)), by 
                striking ``section 101(b)--'' and all that follows 
                through the end of the subsection and inserting 
                ``section 101(b), should work closely with the European 
                Community and international financial institutions to 
                determine the extent of emergency assistance required 
                by Poland for the fourth quarter of 1989.''.
    (g) Treatment of Certain Funds.--Funds that would otherwise have 
been deposited into the Special Drawing Rights Fund (as so renamed 
under subsection (a)), but for the amendments made by this section, 
shall instead be paid to the Secretary of the Treasury, and the 
Secretary of the Treasury shall use such funds to reduce the public 
debt.
    (h) Wind-Down Period for Certain Transactions.--Notwithstanding any 
other provision of this section, during the 3-year period beginning on 
the date of the enactment of this Act, property other than Special 
Drawing Rights may be deposited, and maintained, in the Special Drawing 
Rights Fund as needed to fulfill any outstanding obligations on the 
Fund.

      Subtitle C--Bankruptcy, Not Bailouts, for Complex Financial 
                              Institutions

SEC. 221. REFORMING THE BANKRUPTCY CODE TO ACCOMMODATE FAILING 
              FINANCIAL INSTITUTIONS.

    (a) Findings.--The Congress finds the following:
            (1) Bailouts undermine market discipline and the rule of 
        law, resulting in doubt about property rights and insulating 
        recipients from the consequences of their mistakes.
            (2) A number of complex financial institutions are widely 
        considered to be ``too big to fail''.
            (3) An aggravating factor in the 2008 financial crisis was 
        uncertainty about the security and priority of claims stemming 
        from cross-border resolution of complex financial institutions.
            (4) The Federal Deposit Insurance Corporation (FDIC) has 
        historically resolved most failing U.S. depository institutions 
        and has the necessary expertise and discretionary authority to 
        conduct such resolutions quickly.
            (5) The FDIC's authority did not extend to all components 
        of very large, complex financial institutions, such as 
        insurance, stockbroker, and commodity broker operations.
            (6) The U.S. Constitution authorizes Congress to establish 
        ``uniform laws on the subject of Bankruptcies through the 
        United States''.
            (7) Bankruptcy provides predictable priority for claims 
        under the rule of law through the jurisdiction of an Article 
        III court.
            (8) The lengthy adjudication of claims to ensure equality 
        under the law of similarly situated creditors under bankruptcy 
        can be problematic in the case of financial institutions but 
        can be amended to preserve and protect value.
            (9) The Dodd-Frank Wall Street Reform and Consumer 
        Protection Act did not establish a non-discretionary, rule-of-
        law-based resolution process to provide certainty for creditors 
        of failing institutions.
            (10) A credible resolution process could eliminate the use 
        of bailouts and other political interventions.
            (11) Additional reforms are necessary to bring certainty 
        and predictability to the failure of large, complex, 
        multinational financial institutions.
    (b) Sense of Congress.--It is the sense of Congress that the 
Committees on the Judiciary and Financial Services of the House of 
Representatives and the Committees on the Judiciary and Banking, 
Housing, and Urban Affairs of the Senate should each report legislation 
proposing changes to existing law within each committee's jurisdiction 
with provisions to accommodate bankruptcy proceedings for failing 
multinational financial institutions. Such committees should consider 
reforms that--
            (1) establish a new chapter of the bankruptcy code 
        specifically for financial institutions, to be used in 
        conjunction with the existing chapter 7 liquidation or chapter 
        11 reorganization process;
            (2) replace or supplement existing resolution authorities 
        for certain kinds of institutions;
            (3) clarify that such resolution proceedings occur at the 
        holding company level;
            (4) designate particular judges in the Second and D.C. 
        Circuits who will hear these cases and who may appoint special 
        masters with technical expertise to aid in the resolution;
            (5) continue to use FDIC expertise to resolve such 
        institutions under the oversight of the court;
            (6) remove exemptions from bankruptcy proceedings for 
        certain subsidiaries of complex financial institutions, such as 
        insurance and brokerage operations;
            (7) allow primary regulators to petition for involuntary 
        bankruptcy cases against a financial institution, to have 
        standing and raise motions, and to file plans of 
        reorganization;
            (8) establish procedures for debtor-in-possession financing 
        to provide partial or complete payouts to some or all creditors 
        in certain circumstances;
            (9) develop rules for the applicability of short-term 
        automatic stays for certain qualified financial contracts;
            (10) recapitalize reorganized institutions at the holding 
        company level, possibly by converting long-term debt into 
        equity;
            (11) collaborate with foreign governments to avoid domestic 
        ``ring-fencing'' of failing multinational financial 
        institutions whose holding companies are located elsewhere;
            (12) ensure that institutions in conservatorship do not 
        receive advantageous tax or regulatory treatment over 
        comparable financial institutions outside of the bankruptcy 
        process; and
            (13) such other additional and conforming reforms as the 
        Committees consider necessary.
                                 <all>