[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1217 Reported in Senate (RS)]

                                                       Calendar No. 579
113th CONGRESS
  2d Session
                                S. 1217

  To provide secondary mortgage market reform, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 25, 2013

   Mr. Corker (for himself, Mr. Warner, Mr. Johanns, Mr. Tester, Mr. 
Heller, Ms. Heitkamp, Mr. Moran, Mrs. Hagan, Mr. Kirk, Mr. Manchin, Mr. 
  Chambliss, and Mr. Begich) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

                           September 18, 2014

       Reported by Mr. Johnson of South Dakota, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To provide secondary mortgage market reform, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Housing 
Finance Reform and Taxpayer Protection Act of 2013''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Definitions.
        <DELETED>TITLE I--FEDERAL MORTGAGE INSURANCE CORPORATION

<DELETED>Sec. 101. Establishment.
<DELETED>Sec. 102. Director.
<DELETED>Sec. 103. Board of Directors.
<DELETED>Sec. 104. Office of the Inspector General.
<DELETED>Sec. 105. Staff, experts, and consultants.
<DELETED>Sec. 106. Reports; testimony; audits.
<DELETED>Sec. 107. Initial funding.
 <DELETED>TITLE II--DUTIES, RESPONSIBILITIES, AND STRUCTURE OF THE FMIC

              <DELETED>Subtitle A--Duties and Authorities

<DELETED>Sec. 201. Duties and responsibilities of the FMIC.
<DELETED>Sec. 202. Standard form credit risk-sharing mechanisms, 
                            products, structures, contracts, or other 
                            security agreements.
<DELETED>Sec. 203. Mortgage Insurance Fund.
<DELETED>Sec. 204. Insurance.
<DELETED>Sec. 205. Authority to protect taxpayers in unusual and 
                            exigent market conditions.
<DELETED>Sec. 206. General powers.
<DELETED>Sec. 207. Exemptions.
         <DELETED>Subtitle B--Oversight of Market Participants

<DELETED>Sec. 211. Approval of private mortgage insurers.
<DELETED>Sec. 212. Approval of servicers.
<DELETED>Sec. 213. Approval of issuers.
<DELETED>Sec. 214. Approval of bond guarantors.
<DELETED>Sec. 215. Authority to establish FMIC Mutual Securitization 
                            Company.
<DELETED>Sec. 216. Additional authority relating to oversight of market 
                            participants.
<DELETED>Sec. 217. Civil money penalties.
<DELETED>Sec. 218. Protection of privilege and other matters relating 
                            to disclosures by market participants.
         <DELETED>Subtitle C--Transparency in Market Operations

<DELETED>Sec. 221. Review of loan documents; disclosures.
<DELETED>Sec. 222. Investor immunity.
<DELETED>Sec. 223. Uniform securitization agreements.
<DELETED>Sec. 224. Uniform mortgage database.
<DELETED>Sec. 225. Electronic registration of eligible mortgages.
                  <DELETED>Subtitle D--FMIC Structure

<DELETED>Sec. 231. Office of Underwriting.
<DELETED>Sec. 232. Office of Securitization.
<DELETED>Sec. 233. Office of Federal Home Loan Bank Supervision.
<DELETED>TITLE III--TRANSFER OF POWERS, PERSONNEL, AND PROPERTY TO FMIC 
                               FROM FHFA

<DELETED>Sec. 301. Powers and duties transferred.
<DELETED>Sec. 302. Transfer and rights of employees of the FHFA.
<DELETED>Sec. 303. Abolishment of FHFA.
<DELETED>Sec. 304. Transfer of property and facilities.
<DELETED>Sec. 305. Technical and conforming amendments.
<DELETED>TITLE IV--IMPROVING TRANSPARENCY, ACCOUNTABILITY, AND EFFICACY 
                       WITHIN AFFORDABLE HOUSING

<DELETED>Sec. 401. Affordable housing allocations.
<DELETED>Sec. 402. Housing Trust Fund.
<DELETED>Sec. 403. Capital Magnet Fund.
<DELETED>Sec. 404. Additional taxpayer protections.
       <DELETED>TITLE V--WIND DOWN OF FANNIE MAE AND FREDDIE MAC

<DELETED>Sec. 501. Repeal of GSE charters.
<DELETED>Sec. 502. Wind down.
<DELETED>Sec. 503. Aligning purpose of conservatorship with FMIC.
<DELETED>Sec. 504. Conforming loan limits.
<DELETED>Sec. 505. Portfolio reduction.
<DELETED>Sec. 506. Repeal of mandatory housing goals.
    <DELETED>TITLE VI--IMPROVEMENTS TO FUNCTIONING OF HOUSING MARKET

<DELETED>Sec. 601. Continuation of multifamily business of the 
                            enterprises.
<DELETED>Sec. 602. Multiple lender issues.
<DELETED>Sec. 603. GAO report on full privatization of secondary 
                            mortgage market.
                 <DELETED>TITLE VII--GENERAL PROVISIONS

<DELETED>Sec. 701. Authority to issue regulations.
<DELETED>Sec. 702. Fair value accounting.
<DELETED>Sec. 703. Rule of construction.
<DELETED>Sec. 704. Severability.

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    As used in this Act, the following definitions shall 
apply:</DELETED>
        <DELETED>    (1) Approved bond guarantor.--The term ``approved 
        bond guarantor'' means any entity that provides credit 
        enhancement that is approved by the Corporation pursuant to 
        section 214 to guarantee the timely payment of principal and 
        interest on securities collateralized by eligible mortgages and 
        insured by the Corporation.</DELETED>
        <DELETED>    (2) Approved issuer.--The term ``approved issuer'' 
        means an issuer that is approved by the Corporation pursuant to 
        section 213--</DELETED>
                <DELETED>    (A) to issue covered securities; 
                and</DELETED>
                <DELETED>    (B) to purchase insurance offered by the 
                Corporation pursuant to title II on a covered security 
                for which first loss credit enhancement has been 
                secured.</DELETED>
        <DELETED>    (3) Approved private mortgage insurer.--The term 
        ``approved private mortgage insurer'' means an insurer that is 
        approved by the Corporation pursuant to section 211 to provide 
        private mortgage insurance on eligible mortgages.</DELETED>
        <DELETED>    (4) Approved servicer.--The term ``approved 
        servicer'' means a servicer that is approved by the Corporation 
        pursuant to section 212 to administer eligible 
        mortgages.</DELETED>
        <DELETED>    (5) Area.--The term ``area''--</DELETED>
                <DELETED>    (A) means a metropolitan statistical area 
                as established by the Office of Management and Budget; 
                and</DELETED>
                <DELETED>    (B) for purposes of paragraph (11)(A)(ii), 
                the median 1-family house price for an area shall be 
                equal to the median 1-family house price of the county 
                within the area that has the highest such median 
                price.</DELETED>
        <DELETED>    (6) Board; board of directors.--The terms 
        ``Board'' and ``Board of Directors'' mean the Board of 
        Directors of the Federal Mortgage Insurance 
        Corporation.</DELETED>
        <DELETED>    (7) Charter.--The term ``charter'' means--
        </DELETED>
                <DELETED>    (A) with respect to the Federal National 
                Mortgage Association, the Federal National Mortgage 
                Association Charter Act (12 U.S.C. 1716 et seq.); 
                and</DELETED>
                <DELETED>    (B) with respect to the Federal Home Loan 
                Mortgage Corporation, the Federal Home Loan Mortgage 
                Corporation Act (12 U.S.C. 1451 et seq.).</DELETED>
        <DELETED>    (8) Corporation.--The term ``Corporation'' means 
        the Federal Mortgage Insurance Corporation established under 
        title I.</DELETED>
        <DELETED>    (9) Covered security.--The term ``covered 
        security'' means a mortgage-backed security--</DELETED>
                <DELETED>    (A) collateralized by eligible 
                mortgages;</DELETED>
                <DELETED>    (B) which is issued subject to a standard 
                form credit-risk sharing mechanism, product, structure, 
                contract, or other securitization agreement developed 
                by the Corporation pursuant to title II; and</DELETED>
                <DELETED>    (C) which is eligible for insurance by the 
                Corporation pursuant to title II, which insurance is 
                purchased by an approved issuer who issues covered 
                securities.</DELETED>
        <DELETED>    (10) Director.--The term ``Director'' means the 
        Director of the Federal Mortgage Insurance Corporation, unless 
        the context otherwise requires.</DELETED>
        <DELETED>    (11) Eligible mortgage.--The term ``eligible 
        mortgage'' means a mortgage--</DELETED>
                <DELETED>    (A) that is a residential real estate loan 
                secured by a property with 1 to 4 single family units 
                that has been originated in compliance with the 
                provisions of section 1026 of title 12 of the Code of 
                Federal Regulations, as promulgated by the Bureau of 
                Consumer Financial Protection pursuant to section 
                129C(b) of the Truth in Lending Act (15 U.S.C. 
                1639c(b)) (commonly referred to as the ``Ability-to-
                Repay and Qualified Mortgage Rule'');</DELETED>
                <DELETED>    (B) has a maximum original principal 
                obligation amount that does not exceed the conforming 
                loan limitation determined under section 504;</DELETED>
                <DELETED>    (C) the outstanding principal balance of 
                which at the time of purchase of insurance available 
                under title II--</DELETED>
                        <DELETED>    (i) is less than 80 percent of the 
                        value of the property securing the 
                        mortgage;</DELETED>
                        <DELETED>    (ii) is not less than 80 percent 
                        but not more than 85 percent of the value of 
                        the property securing the mortgage, provided 
                        that not less than 12 percent of the unpaid 
                        principal balance of the mortgage, accounting 
                        for any downpayment required under subparagraph 
                        (D), is insured by--</DELETED>
                                <DELETED>    (I) an approved private 
                                mortgage insurer; or</DELETED>
                                <DELETED>    (II) lender recourse or 
                                other credit enhancement that--
                                </DELETED>
                                        <DELETED>    (aa) meets 
                                        standards comparable to the 
                                        standards required of private 
                                        mortgage insurers under section 
                                        211; and</DELETED>
                                        <DELETED>    (bb) is approved 
                                        by the Corporation;</DELETED>
                        <DELETED>    (iii) is not less than 85 percent 
                        but not more than 90 percent of the value of 
                        the property securing the mortgage, provided 
                        that not less than 25 percent of the unpaid 
                        principal balance of the mortgage, accounting 
                        for any downpayment required under subparagraph 
                        (D), is insured by--</DELETED>
                                <DELETED>    (I) an approved private 
                                mortgage insurer; or</DELETED>
                                <DELETED>    (II) lender recourse or 
                                other credit enhancement that--
                                </DELETED>
                                        <DELETED>    (aa) meets 
                                        standards comparable to the 
                                        standards required of private 
                                        mortgage insurers under section 
                                        211; and</DELETED>
                                        <DELETED>    (bb) is approved 
                                        by the Corporation; 
                                        or</DELETED>
                        <DELETED>    (iv) is not less than 90 percent 
                        but not more than 95 percent of the value of 
                        the property securing the mortgage, provided 
                        that not less than 30 percent of the unpaid 
                        principal balance of the mortgage, accounting 
                        for any downpayment required under subparagraph 
                        (D), is insured by--</DELETED>
                                <DELETED>    (I) an approved private 
                                mortgage insurer; or</DELETED>
                                <DELETED>    (II) lender recourse or 
                                other credit enhancement that--
                                </DELETED>
                                        <DELETED>    (aa) meets 
                                        standards comparable to the 
                                        standards required of private 
                                        mortgage insurers under section 
                                        211; and</DELETED>
                                        <DELETED>    (bb) is approved 
                                        by the Corporation;</DELETED>
                <DELETED>    (D) having a downpayment which shall be 
                equal to not less than 5 percent of purchase price of 
                the property securing the mortgage;</DELETED>
                <DELETED>    (E) that is insured by an approved State 
                licensed title insurance company;</DELETED>
                <DELETED>    (F) that contains such terms and 
                provisions with respect to insurance, property 
                maintenance, repairs, alterations, payment of taxes, 
                default, reserves, delinquency charges, foreclosure 
                proceedings, anticipation of maturity, additional and 
                secondary liens, and other matters, including matters 
                that set forth terms and provisions for establishing 
                escrow accounts, performing financial assessments, or 
                limiting the amount of any payment made available under 
                the mortgage as the Corporation may prescribe; 
                and</DELETED>
                <DELETED>    (G) that contains such other terms or 
                characteristics as the Corporation, in consultation 
                with the Bureau of Consumer Financial Protection, may 
                determine necessary or appropriate.</DELETED>
        <DELETED>    (12) Enterprise.--The term ``enterprise'' means--
        </DELETED>
                <DELETED>    (A) the Federal National Mortgage 
                Association and any affiliate thereof; and</DELETED>
                <DELETED>    (B) the Federal Home Loan Mortgage 
                Corporation and any affiliate thereof.</DELETED>
        <DELETED>    (13) Federal banking agencies.--The term--
        </DELETED>
                <DELETED>    (A) ``Federal banking agency'' means, 
                individually, the Board of Governors of the Federal 
                Reserve System, the Office of the Comptroller of the 
                Currency, the Federal Deposit Insurance Corporation, 
                the Bureau of Consumer Financial Protection, the 
                National Credit Union Administration, the Securities 
                and Exchange Commission, the Commodities Futures 
                Trading Commission, the Federal Housing Finance Agency, 
                and the Secretary of the Treasury; and</DELETED>
                <DELETED>    (B) ``Federal banking agencies'' means all 
                of the agencies referred to in subparagraph (A), 
                collectively.</DELETED>
        <DELETED>    (14) Federal home loan bank.--The term ``Federal 
        Home Loan Bank'' means a bank established under the authority 
        of the Federal Home Loan Bank Act (12 U.S.C. 1421 et 
        seq.).</DELETED>
        <DELETED>    (15) Federal home loan bank system.--The term 
        ``Federal Home Loan Bank System'' means the Federal Home Loan 
        Banks and the Office of Finance and any authorized subsidiary 
        of one or more Federal Home Loan Banks.</DELETED>
        <DELETED>    (16) FMIC certification date.--The term ``FMIC 
        certification date'' means the date on which the Board of 
        Directors certifies that the Corporation is operational and 
        able to perform the insurance functions for covered securities 
        as provided in this Act, which date shall be not later than 5 
        years after the date of enactment of this Act.</DELETED>
        <DELETED>    (17) Insured depository institution.--The term 
        ``insured depository institution'' means--</DELETED>
                <DELETED>    (A) an insured depository institution, as 
                defined under section 3 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813); and</DELETED>
                <DELETED>    (B) a credit union that meets the 
                definition of ``depository institution'' as that term 
                is defined under section 19(b) of the Federal Reserve 
                Act (12 U.S.C. 461).</DELETED>
        <DELETED>    (18) Senior preferred stock purchase agreement 
        defined.--The term ``Senior Preferred Stock Purchase 
        Agreement'' means--</DELETED>
                <DELETED>    (A) the Amended and Restated Senior 
                Preferred Stock Purchase Agreement, dated September 26, 
                2008, as such Agreement has been amended on May 6, 
                2009, December 24, 2009, and August 17, 2012, 
                respectively, and as such Agreement may be further 
                amended and restated, entered into between the 
                Department of the Treasury and each enterprise, as 
                applicable; and</DELETED>
                <DELETED>    (B) any provision of any certificate in 
                connection with such Agreement creating or designating 
                the terms, powers, preferences, privileges, 
                limitations, or any other conditions of the Variable 
                Liquidation Preference Senior Preferred Stock of an 
                enterprise issued or sold pursuant to such 
                Agreement.</DELETED>
        <DELETED>    (19) Transfer date.--The term ``transfer date'' 
        means the date that is 1 year after the date of enactment of 
        this Act.</DELETED>

   <DELETED>TITLE I--FEDERAL MORTGAGE INSURANCE CORPORATION</DELETED>

<DELETED>SEC. 101. ESTABLISHMENT.</DELETED>

<DELETED>    (a) Establishment.--There is hereby established the 
Federal Mortgage Insurance Corporation which shall have the powers 
hereinafter granted.</DELETED>
<DELETED>    (b) Purpose.--The purpose of the Corporation shall be to--
</DELETED>
        <DELETED>    (1) provide liquidity, transparency, and access to 
        mortgage credit by supporting a robust secondary mortgage 
        market and the production of residential mortgage-backed 
        securities; and</DELETED>
        <DELETED>    (2) protect the taxpayer from having to absorb 
        losses incurred in the secondary mortgage market during periods 
        of economic stress.</DELETED>
<DELETED>    (c) Federal Status.--The Corporation shall be an 
independent agency of the Federal Government.</DELETED>
<DELETED>    (d) Succession.--The Corporation shall have succession 
until dissolved by Act of Congress.</DELETED>
<DELETED>    (e) Principal Office.--The Corporation shall maintain its 
principal office in the District of Columbia and shall be deemed, for 
purposes of venue in civil actions, to be a resident thereof.</DELETED>
<DELETED>    (f) Authority To Establish Other Offices.--The Corporation 
may establish such other offices in such other place or places as the 
Corporation may deem necessary or appropriate in the conduct of its 
business.</DELETED>
<DELETED>    (g) Prohibition.--The Corporation shall not engage in 
mortgage origination.</DELETED>

<DELETED>SEC. 102. DIRECTOR.</DELETED>

<DELETED>    (a) Establishment of Position.--There is established the 
position of the Director of the Corporation, who shall be the head of 
the Corporation.</DELETED>
<DELETED>    (b) Appointment; Term.--</DELETED>
        <DELETED>    (1) Appointment.--The Director shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate, from among individuals who--</DELETED>
                <DELETED>    (A) are citizens of the United States; 
                and</DELETED>
                <DELETED>    (B) have a demonstrated technical, 
                academic, or professional understanding of, and 
                practical, disciplinary, vocational, or regulatory 
                experience working in, the mortgage securities markets 
                and housing finance.</DELETED>
        <DELETED>    (2) Term.--The Director shall be appointed for a 
        term of 5 years, unless removed before the end of such term for 
        cause by the President.</DELETED>
        <DELETED>    (3) Vacancy.--</DELETED>
                <DELETED>    (A) In general.--A vacancy in the position 
                of Director that occurs before the expiration of the 
                term for which a Director was appointed shall be filled 
                in the manner established under paragraph (1), and the 
                Director appointed to fill such vacancy shall be 
                appointed only for the remainder of such 
                term.</DELETED>
                <DELETED>    (B) Acting director.--</DELETED>
                        <DELETED>    (i) Designation by the 
                        president.--</DELETED>
                                <DELETED>    (I) Eligible 
                                individuals.--If the Senate has not 
                                confirmed a Director, the President may 
                                designate either the individual 
                                nominated, but not yet confirmed, for 
                                the position of Director or a member of 
                                the Board of Directors to serve as the 
                                Acting Director, and such Acting 
                                Director shall have all the rights, 
                                duties, powers, and responsibilities of 
                                the Director, until such time as a 
                                Director is confirmed by the 
                                Senate.</DELETED>
                                <DELETED>    (II) Limitation.--No 
                                individual may serve concurrently as 
                                the Acting Director of the Corporation 
                                and the Director of the Federal Housing 
                                Finance Agency.</DELETED>
        <DELETED>    (4) Service after end of term.--An individual may 
        serve as the Director after the expiration of the term for 
        which appointed until a successor has been appointed.</DELETED>
        <DELETED>    (5) Compensation.--The Director shall be 
        compensated at the rate prescribed for level II of the 
        Executive Schedule under section 5313 of title 5, United States 
        Code.</DELETED>
        <DELETED>    (6) Rules of construction.--No individual--
        </DELETED>
                <DELETED>    (A) may serve concurrently as the Director 
                of the Corporation and the Director of the Federal 
                Housing Finance Agency; and</DELETED>
                <DELETED>    (B) that has, at any time prior to, on, or 
                after the date of enactment of this Act, served as the 
                Director of the Federal Housing Finance Agency may 
                serve as the Director of the Corporation.</DELETED>
<DELETED>    (c) Membership on FSOC.--The Dodd-Frank Wall Street Reform 
and Consumer Protection Act is amended--</DELETED>
        <DELETED>    (1) in section 2, by amending paragraph (12)(E) to 
        read as follows:</DELETED>
                <DELETED>    ``(E) the Federal Mortgage Insurance 
                Corporation, with respect to--</DELETED>
                        <DELETED>    ``(i) the Mortgage Insurance Fund 
                        established under title II of the Housing 
                        Finance Reform and Taxpayer Protection Act of 
                        2013; and</DELETED>
                        <DELETED>    ``(ii) the Federal Home Loan Banks 
                        or the Federal Home Loan Bank System.''; 
                        and</DELETED>
        <DELETED>    (2) in section 111(b)(1)(H), by striking 
        ``Director of the Federal Housing Finance Agency'' and 
        inserting ``Chairperson of the Federal Mortgage Insurance 
        Corporation''.</DELETED>

<DELETED>SEC. 103. BOARD OF DIRECTORS.</DELETED>

<DELETED>    (a) Board of Directors.--</DELETED>
        <DELETED>    (1) Voting members.--The management of the 
        Corporation shall be vested in a Board of Directors consisting 
        of 5 voting members--</DELETED>
                <DELETED>    (A) 1 of whom shall be the Director, who 
                shall serve as Chairperson of the Board; and</DELETED>
                <DELETED>    (B) 4 of whom shall be appointed by the 
                President, by and with the advice and consent of the 
                Senate, from among individuals who are citizens of the 
                United States--</DELETED>
                        <DELETED>    (i) 1 of whom shall have 
                        demonstrated technical, academic, or 
                        professional understanding of, and practical, 
                        disciplinary, vocational, or regulatory 
                        experience working in, the field of asset 
                        management;</DELETED>
                        <DELETED>    (ii) 1 of whom shall have 
                        demonstrated technical, academic, or 
                        professional understanding of, and practical, 
                        disciplinary, vocational, or regulatory 
                        experience working in, mortgage insurance 
                        markets;</DELETED>
                        <DELETED>    (iii) 1 of whom shall have a 
                        demonstrated technical, academic, or 
                        professional understanding of, and practical, 
                        disciplinary, vocational, or regulatory 
                        experience working with, lenders having less 
                        than $10,000,000,000 in total assets; 
                        and</DELETED>
                        <DELETED>    (iv) 1 of whom shall have a 
                        demonstrated technical, academic, or 
                        professional understanding of, and practical, 
                        disciplinary, vocational, or regulatory 
                        experience working with, multifamily housing 
                        development.</DELETED>
        <DELETED>    (2) Non-voting member.--The President shall 
        appoint the Director of the Federal Housing Finance Agency as 
        an additional non-voting member of the Board of Directors. The 
        Director of the Federal Housing Finance Agency shall serve as 
        non-voting member of the Board of Directors until such time as 
        that position is abolished pursuant to title III.</DELETED>
        <DELETED>    (3) Independence.--</DELETED>
                <DELETED>    (A) In general.--Each voting member of the 
                Board of Directors shall be independent and neutral and 
                maintain a fiduciary relationship to the Corporation in 
                performing his or her duties.</DELETED>
                <DELETED>    (B) Independence determination.--In order 
                to be considered independent for purposes of this 
                paragraph, a voting member of the Board of Directors--
                </DELETED>
                        <DELETED>    (i) may not, other than in his or 
                        her capacity as a member of the Board of 
                        Directors or any committee thereof--</DELETED>
                                <DELETED>    (I) accept any consulting, 
                                advisory, or other compensatory fee 
                                from the Corporation; or</DELETED>
                                <DELETED>    (II) be a person 
                                associated with the Corporation or with 
                                any affiliated company thereof; 
                                and</DELETED>
                        <DELETED>    (ii) shall be disqualified from 
                        any deliberation involving any transaction of 
                        the Corporation in which the member has a 
                        financial interest in the outcome of the 
                        transaction.</DELETED>
        <DELETED>    (4) Rule of construction.--No individual that has, 
        at any time prior to, on, or after the date of enactment of 
        this Act, served as the Director or Acting Director of the 
        Federal Housing Finance Agency may serve as a voting member of 
        the Board of Directors.</DELETED>
<DELETED>    (b) Administration.--Except as otherwise may provided in 
this Act, the Board of Directors shall administer the affairs of the 
Corporation fairly and impartially and without 
discrimination.</DELETED>
<DELETED>    (c) Consultation.--The Board of Directors may, in carrying 
out any duty, responsibility, requirement, or action authorized under 
this Act, consult with the Federal banking agencies or any individual 
Federal banking agency, as the Board determines necessary and 
appropriate.</DELETED>
<DELETED>    (d) Terms.--</DELETED>
        <DELETED>    (1) Appointed members.--Each appointed voting 
        member shall be appointed for a term of 5 years and shall serve 
        on a full-time basis.</DELETED>
        <DELETED>    (2) Interim appointments.--Any voting member 
        appointed to fill a vacancy occurring before the expiration of 
        the term for which such member's predecessor was appointed 
        shall be appointed only for the remainder of such 
        term.</DELETED>
        <DELETED>    (3) Continuation of service.--The Chairperson and 
        each appointed voting member may continue to serve after the 
        expiration of the term of office to which such member was 
        appointed until a successor has been appointed and 
        qualified.</DELETED>
<DELETED>    (e) Vacancy.--A vacancy in the voting membership of the 
Board of Directors shall not affect the powers of the Board, and shall 
be filled in the manner in which the original appointment was 
made.</DELETED>
<DELETED>    (f) Voting.--A majority vote of all voting members of the 
Board of Directors is necessary to resolve all voting issues of the 
Corporation.</DELETED>
<DELETED>    (g) Meetings.--The Board of Directors shall meet in 
accordance with the bylaws of the Corporation--</DELETED>
        <DELETED>    (1) at the call of the Chairperson; and</DELETED>
        <DELETED>    (2) not less frequently than once each 
        month.</DELETED>
<DELETED>    (h) Quorum.--Three voting members of the Board of 
Directors then in office shall constitute a quorum.</DELETED>
<DELETED>    (i) Bylaws.--A majority of the voting members of the Board 
of Directors may amend the bylaws of the Corporation.</DELETED>
<DELETED>    (j) Attendance.--Members of the Board of Directors may 
attend meetings of the Corporation and vote in person, via telephone 
conference, or via video conference.</DELETED>
<DELETED>    (k) Ineligibility for Other Offices During Service.--
</DELETED>
        <DELETED>    (1) In general.--No voting member of the Board of 
        Directors may during the time such member is in office--
        </DELETED>
                <DELETED>    (A) be an officer or director of any 
                insured depository institution, depository institution 
                holding company, Federal Reserve bank, Federal home 
                loan bank, approved servicer, approved private mortgage 
                insurer, institution that originates eligible 
                mortgages, or institution that issues a covered 
                security; or</DELETED>
                <DELETED>    (B) hold stock or a controlling interest 
                in any insured depository institution or depository 
                institution holding company, approved servicer, 
                approved private mortgage insurer, institution that 
                originates eligible mortgages, or institution that 
                issues a covered security.</DELETED>
        <DELETED>    (2) Certification.--Upon taking office, each 
        voting member of the Board of Directors shall certify under 
        oath that such member has complied with this subsection and 
        such certification shall be filed with the secretary of the 
        Board of Directors.</DELETED>
<DELETED>    (l) Status of Employees.--</DELETED>
        <DELETED>    (1) In general.--A director, member, officer, or 
        employee of the Corporation has no liability under the 
        Securities Act of 1933 (15 U.S.C. 77a et seq.) with respect to 
        any claim arising out of or resulting from any act or omission 
        by such person within the scope of such person's employment in 
        connection with any transaction involving the Corporation. This 
        subsection shall not be construed to limit personal liability 
        for criminal acts or omissions, willful or malicious 
        misconduct, acts or omissions for private gain, or any other 
        acts or omissions outside the scope of such person's 
        employment.</DELETED>
        <DELETED>    (2) Effect on other law.--</DELETED>
                <DELETED>    (A) In general.--This subsection does not 
                affect--</DELETED>
                        <DELETED>    (i) any other immunities and 
                        protections that may be available to such 
                        person under applicable law with respect to 
                        such transactions; or</DELETED>
                        <DELETED>    (ii) any other right or remedy 
                        against the Corporation, against the United 
                        States under applicable law, or against any 
                        person other than a person described in 
                        paragraph (1) participating in such 
                        transactions.</DELETED>
                <DELETED>    (B) Rule of construction.--This subsection 
                shall not be construed to limit or alter in any way the 
                immunities that are available under applicable law for 
                Federal officials and employees not described in this 
                subsection.</DELETED>

<DELETED>SEC. 104. OFFICE OF THE INSPECTOR GENERAL.</DELETED>

<DELETED>    (a) Office of Inspector General.--</DELETED>
        <DELETED>    (1) In general.--There is established the Office 
        of the Inspector General of the Federal Mortgage Insurance 
        Corporation. The head of the Office of the Inspector General of 
        the Federal Mortgage Insurance Corporation is the Inspector 
        General of the Federal Mortgage Insurance Corporation (in this 
        section referred to as the ``Inspector General''), who shall be 
        appointed by the President, by and with the advice and consent 
        of the Senate.</DELETED>
        <DELETED>    (2) Additional responsibilities.--In addition to 
        carrying out the requirements established under the Inspector 
        General Act of 1978 (5 U.S.C. App.), the Inspector General 
        shall--</DELETED>
                <DELETED>    (A) conduct, supervise, and coordinate 
                audits and investigations relating to the programs and 
                operations of the Corporation--</DELETED>
                        <DELETED>    (i) to ensure that the first loss 
                        position that the Corporation requires of 
                        private market holders of covered securities 
                        insured under this Act is adequate to cover 
                        losses that might be incurred as a result of 
                        adverse economic conditions, wherein such 
                        conditions are generally consistent with the 
                        economic conditions, including national home 
                        price declines, observed in the United States 
                        during moderate to severe recessions 
                        experienced during the last 100 years; 
                        and</DELETED>
                        <DELETED>    (ii) with respect to the--
                        </DELETED>
                                <DELETED>    (I) oversight and 
                                supervision of the Federal Home Loan 
                                Banks and the Federal Home Loan Bank 
                                System; and</DELETED>
                                <DELETED>    (II) the contracting 
                                practices and procedures of the 
                                Corporation; and</DELETED>
                <DELETED>    (B) recommend policies for the purpose of 
                addressing any deficiencies, inefficiencies, gaps, or 
                failures in the administration of such programs and 
                operations.</DELETED>
        <DELETED>    (3) Inspector general report; report of 
        independent actuary.--Beginning 1 year after the FMIC 
        certification date, and annually thereafter, the Inspector 
        General and an independent actuary contracted for by the 
        Director shall each conduct an examination and issue a separate 
        report regarding--</DELETED>
                <DELETED>    (A) the adequacy of insurance fees charged 
                by the Board of Directors under title II; and</DELETED>
                <DELETED>    (B) the adequacy of the Mortgage Insurance 
                Fund established under title II.</DELETED>
<DELETED>    (b) Amendments to Inspector General Act of 1978.--Section 
11 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
</DELETED>
        <DELETED>    (1) in paragraph (1), by inserting ``Chairperson 
        of the Federal Mortgage Insurance Corporation;'' after ``the 
        Director of the Federal Housing Finance Agency;''; 
        and</DELETED>
        <DELETED>    (2) in paragraph (2), by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``the Federal Housing 
        Finance Agency,''.</DELETED>
<DELETED>    (c) Compensation.--The annual rate of basic pay of the 
Inspector General shall be the annual rate of basic pay provided for 
positions at level III of the Executive Schedule under section 5314 of 
title 5, United States Code.</DELETED>

<DELETED>SEC. 105. STAFF, EXPERTS, AND CONSULTANTS.</DELETED>

<DELETED>    (a) Compensation.--</DELETED>
        <DELETED>    (1) In general.--The Board of Directors may 
        appoint and fix the compensation of such officers, attorneys, 
        economists, examiners, and other employees as may be necessary 
        for carrying out the functions of the Corporation.</DELETED>
        <DELETED>    (2) Rates of pay.--Rates of basic pay and the 
        total amount of compensation and benefits for all employees of 
        the Corporation may be--</DELETED>
                <DELETED>    (A) set and adjusted by the Board of 
                Directors without regard to the provisions of chapter 
                51 or subchapter III of chapter 53 of title 5, United 
                States Code; and</DELETED>
                <DELETED>    (B) reasonably increased, notwithstanding 
                any limitation set forth in paragraph (3), if the Board 
                of Directors determines such increases are necessary to 
                attract and hire qualified employees.</DELETED>
        <DELETED>    (3) Parity.--The Board of Directors may provide 
        additional compensation and benefits to employees of the 
        Corporation, of the same type of compensation or benefits that 
        are then being provided by any agency referred to under section 
        1206 of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not then being 
        provided, could be provided by such an agency under applicable 
        provisions of law, rule, or regulation. In setting and 
        adjusting the total amount of compensation and benefits for 
        employees, the Board of Directors shall consult with and seek 
        to maintain comparability with the agencies referred to under 
        section 1206 of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989 (12 U.S.C. 1833b).</DELETED>
<DELETED>    (b) Detail of Government Employees.--Upon the request of 
the Board of Directors, any Federal Government employee may be detailed 
to the Corporation without reimbursement, and such detail shall be 
without interruption or loss of civil service status or 
privilege.</DELETED>
<DELETED>    (c) Experts and Consultants.--The Board of Directors may 
procure the services of experts and consultants as the Board considers 
necessary or appropriate.</DELETED>
<DELETED>    (d) Technical and Professional Advisory Committees.--The 
Board of Directors may appoint such special advisory, technical, or 
professional committees as may be useful in carrying out the functions 
of the Corporation.</DELETED>

<DELETED>SEC. 106. REPORTS; TESTIMONY; AUDITS.</DELETED>

<DELETED>    (a) Reports.--</DELETED>
        <DELETED>    (1) In general.--The Corporation shall submit, on 
        an annual basis, to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives a written report of 
        its operations, activities, budget, receipts, and expenditures 
        for the preceding 12-month period.</DELETED>
        <DELETED>    (2) Contents of report.--The report required under 
        subsection (a) shall include an analysis of--</DELETED>
                <DELETED>    (A) with respect to the Mortgage Insurance 
                Fund established under section 203--</DELETED>
                        <DELETED>    (i) the current financial 
                        condition of the Mortgage Insurance 
                        Fund;</DELETED>
                        <DELETED>    (ii) the exposure of the Mortgage 
                        Insurance Fund to changes in those economic 
                        factors most likely to affect the condition of 
                        that fund;</DELETED>
                        <DELETED>    (iii) a current estimate of the 
                        resources needed for the Mortgage Insurance 
                        Fund to achieve the purposes of this Act; 
                        and</DELETED>
                        <DELETED>    (iv) any findings, conclusions, 
                        and recommendations for legislative and 
                        administrative actions considered appropriate 
                        to the future activities of the 
                        Corporation;</DELETED>
                <DELETED>    (B) the secondary mortgage market, the 
                housing market, and the economy, including through use 
                of stress tests, and how such analysis was used to 
                determine and set the reserve ratio for the Mortgage 
                Insurance Fund for the preceding 12-month 
                period;</DELETED>
                <DELETED>    (C) whether or not the actual reserve 
                ratio of the Mortgage Insurance Fund met--</DELETED>
                        <DELETED>    (i) the reserve ratio set for the 
                        preceding 12-month period; or</DELETED>
                        <DELETED>    (ii) the reserve ratio goals 
                        established in section 203(e);</DELETED>
                <DELETED>    (D) how the Corporation intends to ensure 
                that the goals set for the reserve ratio for the 
                Mortgage Insurance Fund are to be met and maintained 
                for the next 12-month period, and such analysis shall 
                include a detailed and descriptive plan of the actions 
                that the Corporation intends to take pursuant to its 
                authorities under this Act;</DELETED>
                <DELETED>    (E) how the Corporation has provided 
                liquidity, transparency, and access to mortgage credit 
                in its support of a robust secondary mortgage market 
                and the production of residential mortgage-backed 
                securities;</DELETED>
                <DELETED>    (F) the state of the private label 
                mortgage-backed securities market, and such analysis 
                shall include the submission of a reasonable set of 
                administrative, regulatory, and legislative proposals 
                on how to limit the Federal Government's footprint in 
                the secondary mortgage market;</DELETED>
                <DELETED>    (G) the effect that further decreases in 
                loan limits would have on the secondary mortgage 
                market, the housing market, and the economy; 
                and</DELETED>
                <DELETED>    (H) the state of the global covered bond 
                market.</DELETED>
<DELETED>    (b) Testimony.--The Chairperson of the Corporation, on a 
biannual basis, shall provide testimony to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives.</DELETED>
<DELETED>    (c) Audit of Corporation.--</DELETED>
        <DELETED>    (1) Annual audit.--The Comptroller General of the 
        United States shall annually audit the financial transactions 
        of the Corporation in accordance with the United States 
        generally accepted government auditing standards as may be 
        prescribed by the Comptroller General.</DELETED>
        <DELETED>    (2) Place of audit.--The audit required under this 
        subsection shall be conducted at the place or places where 
        accounts of the Corporation are normally kept.</DELETED>
        <DELETED>    (3) Access.--The representatives of the 
        Comptroller General shall have access to the personnel and to 
        all books, accounts, documents, papers, records (including 
        electronic records), reports, files, and all other papers, 
        automated data, or property belonging to or under the control 
        of or used or employed by the Corporation pertaining to its 
        financial transactions and necessary to facilitate the audit 
        required under this subsection, and such representatives shall 
        be afforded full facilities for verifying transactions with the 
        balances or securities held by depositories, fiscal agents, and 
        custodians.</DELETED>
        <DELETED>    (4) Possession and custody.--All such books, 
        accounts, documents, records, reports, files, papers, and 
        property of the Corporation used to carry out the audit 
        required under this subsection shall remain in the possession 
        and custody of the Corporation.</DELETED>
        <DELETED>    (5) Permissible duplication.--The Comptroller 
        General may obtain and duplicate any such books, accounts, 
        documents, records, working papers, automated data and files, 
        or other information relevant to such audit without cost to the 
        Comptroller General and the Comptroller General's right of 
        access to such information shall be enforceable pursuant to 
        section 716(c) of title 31, United States Code.</DELETED>
        <DELETED>    (6) Report.--</DELETED>
                <DELETED>    (A) Submission to congress.--The 
                Comptroller General shall submit to Congress a report 
                of each annual audit conducted under this 
                subsection.</DELETED>
                <DELETED>    (B) Required content.--The report to 
                Congress required under subparagraph (A) shall--
                </DELETED>
                        <DELETED>    (i) set forth the scope of the 
                        audit; and</DELETED>
                        <DELETED>    (ii) include--</DELETED>
                                <DELETED>    (I) the statement of 
                                assets and liabilities and surplus or 
                                deficit;</DELETED>
                                <DELETED>    (II) the statement of 
                                income and expenses;</DELETED>
                                <DELETED>    (III) the statement of 
                                sources and application of funds; 
                                and</DELETED>
                                <DELETED>    (IV) such comments and 
                                information as the Comptroller General 
                                may deem necessary to inform Congress 
                                of the financial operations and 
                                condition of the Corporation, together 
                                with such recommendations with respect 
                                thereto as the Comptroller General may 
                                deem advisable.</DELETED>
                <DELETED>    (C) Copies.--A copy of each report 
                required under subparagraph (A) shall be furnished to 
                the President and to the Chairperson of the Corporation 
                at the time such report is submitted to the 
                Congress.</DELETED>
        <DELETED>    (7) Assistance and costs.--</DELETED>
                <DELETED>    (A) Permitted use of outside assistance.--
                For the purpose of conducting an audit under this 
                subsection, the Comptroller General may employ by 
                contract, without regard to section 3709 of the Revised 
                Statutes of the United States (41 U.S.C. 5), 
                professional services of firms and organizations of 
                certified public accountants for temporary periods or 
                for special purposes.</DELETED>
                <DELETED>    (B) Cost of audit covered by 
                corporation.--</DELETED>
                        <DELETED>    (i) In general.--Upon the request 
                        of the Comptroller General, the Chairperson of 
                        the Corporation shall transfer to the 
                        Comptroller General from funds available, the 
                        amount requested by the Comptroller General to 
                        cover the reasonable costs of any audit and 
                        report conducted by the Comptroller General 
                        pursuant to this subsection.</DELETED>
                        <DELETED>    (ii) Credit of funds.--The 
                        Comptroller General shall credit funds 
                        transferred under clause (i) to the account at 
                        the Treasury established for salaries and 
                        expenses of the Government Accountability 
                        Office, and such amounts shall be available 
                        upon receipt and without fiscal year limitation 
                        to cover the full costs of the audit and 
                        report.</DELETED>

<DELETED>SEC. 107. INITIAL FUNDING.</DELETED>

<DELETED>    (a) In General.--Section 1316 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4516) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(i) Annual Assessments Relating to Initial Funding of 
the FMIC.--Notwithstanding title V of the Housing Finance Reform and 
Taxpayer Protection Act of 2013 or any other provision of law, for the 
period beginning on the date of enactment of this subsection and ending 
on the FMIC certification date (as that date is set forth under section 
2(16) of the Housing Finance Reform and Taxpayer Protection Act of 
2013, the Director, in consultation with the Chairperson of the Federal 
Mortgage Insurance Corporation, shall establish and collect from the 
enterprises annual assessments in addition to those required under 
subsection (a) in an amount not exceeding the amount sufficient to 
provide for the reasonable costs (including administrative costs) and 
expenses of the Corporation. All amounts collected under this 
subsection shall be transferred to the Federal Mortgage Insurance 
Corporation. The annual assessment shall be payable semiannually for 
each fiscal year, on October 1 and April 1.''.</DELETED>
<DELETED>    (b) Treatment of Assessments.--</DELETED>
        <DELETED>    (1) Deposit.--Amounts received by the Corporation 
        from assessments imposed under section 1316(i) of the Federal 
        Housing Enterprises Financial Safety and Soundness Act of 1992 
        shall be deposited by the Corporation in the manner provided in 
        section 5234 of the Revised Statutes of the United States (12 
        U.S.C. 192) for monies deposited by the Comptroller of the 
        Currency.</DELETED>
        <DELETED>    (2) Not government funds.--The amounts received by 
        the Corporation from any assessment imposed under section 
        1316(i) of the Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 shall not be construed to be Government 
        or public funds or appropriated money.</DELETED>
        <DELETED>    (3) No apportionment of funds.--Notwithstanding 
        any other provision of law, the amounts received by the 
        Corporation from any assessment imposed under section 1316(i) 
        of the Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 shall not be subject to apportionment for 
        the purpose of chapter 15 of title 31, United States Code, or 
        under any other authority.</DELETED>
        <DELETED>    (4) Use of funds.--</DELETED>
                <DELETED>    (A) In general.--The Corporation may use 
                any amounts received from assessments imposed under 
                section 1316(i) of the Federal Housing Enterprises 
                Financial Safety and Soundness Act of 1992--</DELETED>
                        <DELETED>    (i) for compensation of the 
                        employees of the Corporation; and</DELETED>
                        <DELETED>    (ii) for all other expenses of the 
                        Corporation.</DELETED>
                <DELETED>    (B) Treasury investments.--The Corporation 
                may request the Secretary of the Treasury to invest 
                such portions of amounts received from assessments 
                imposed under section 1316(i) of the Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                that, in the discretion of the Corporation, are not 
                required to meet the current working needs of the 
                Corporation.</DELETED>
                <DELETED>    (C) Government obligations.--Pursuant to a 
                request under subparagraph (B), the Secretary of the 
                Treasury shall invest such amounts in Government 
                obligations--</DELETED>
                        <DELETED>    (i) guaranteed as to principal and 
                        interest by the United States with maturities 
                        suitable to the needs of the Corporation; 
                        and</DELETED>
                        <DELETED>    (ii) bearing interest at a rate 
                        determined by the Secretary of the Treasury 
                        taking into consideration current market yields 
                        on outstanding marketable obligations of the 
                        United States of comparable maturity.</DELETED>

   <DELETED>TITLE II--DUTIES, RESPONSIBILITIES, AND STRUCTURE OF THE 
                             FMIC</DELETED>

         <DELETED>Subtitle A--Duties and Authorities</DELETED>

<DELETED>SEC. 201. DUTIES AND RESPONSIBILITIES OF THE FMIC.</DELETED>

<DELETED>    (a) Duties.--The principal duties of the Corporation shall 
be to--</DELETED>
        <DELETED>    (1) carry out this Act in a manner that--
        </DELETED>
                <DELETED>    (A) minimizes any potential long-term 
                negative cost on the taxpayer; and</DELETED>
                <DELETED>    (B) ensures, to the maximum extent 
                possible--</DELETED>
                        <DELETED>    (i) a liquid and resilient housing 
                        finance market; and</DELETED>
                        <DELETED>    (ii) the availability of mortgage 
                        credit;</DELETED>
        <DELETED>    (2) develop standard form credit risk-sharing 
        mechanisms, products, structures, contracts, or other security 
        agreements that require private market holders of a covered 
        security insured under this Act to assume the first loss 
        position with respect to losses incurred on such 
        securities;</DELETED>
        <DELETED>    (3) provide insurance on any covered security for 
        which private market holders of such security have assumed the 
        first loss position with respect to losses that may be incurred 
        on such security in order to provide a liquid and resilient 
        housing finance market;</DELETED>
        <DELETED>    (4) provide leadership to the housing finance 
        market to help ensure that all geographic locations have access 
        to mortgage credit;</DELETED>
        <DELETED>    (5) charge and collect fees in exchange for 
        providing such insurance, whereby such fees shall be sufficient 
        to protect the taxpayer from the risk of providing such 
        insurance and to fund the activities and operations of the 
        Corporation;</DELETED>
        <DELETED>    (6) establish and maintain a Mortgage Insurance 
        Fund;</DELETED>
        <DELETED>    (7) facilitate securitization of eligible 
        mortgages originated by credit unions and community and mid-
        size banks without securitization capabilities;</DELETED>
        <DELETED>    (8) ensure discipline and integrity in the market 
        for covered securities by setting standards for the approval of 
        private mortgage insurers, servicers, issuers, and bond 
        guarantors;</DELETED>
        <DELETED>    (9) establish, operate, and maintain a database 
        for the collection, public use, and dissemination of uniform 
        loan level information on eligible mortgages;</DELETED>
        <DELETED>    (10) develop, adopt, and publish standard uniform 
        securitization agreements for covered securities;</DELETED>
        <DELETED>    (11) establish, operate, and maintain an 
        electronic registry system for eligible mortgages that 
        collateralize covered securities insured under this 
        Act;</DELETED>
        <DELETED>    (12) oversee and supervise the common 
        securitization platform developed by the business entity 
        announced by the Federal Housing Finance Agency and established 
        by the enterprises; and</DELETED>
        <DELETED>    (13) ensure that credit unions and community and 
        mid-size banks--</DELETED>
                <DELETED>    (A) have equal access to any such common 
                securitization platform and any other securitization 
                platforms; and</DELETED>
                <DELETED>    (B) are not, in their access or use of 
                such platforms, discriminated against through discounts 
                for volume pricing or other mechanisms.</DELETED>
<DELETED>    (b) Scope of Authority.--The authority of the Corporation 
shall include the authority to exercise such incidental powers as may 
be necessary or appropriate to fulfill the duties and responsibilities 
of the Corporation set forth under subsection (a).</DELETED>
<DELETED>    (c) Delegation of Authority.--The Board of Directors may 
delegate to officers and employees of the Corporation any of the 
functions, powers, or duties of the Corporation, as the Board of 
Directors determines appropriate.</DELETED>

<DELETED>SEC. 202. STANDARD FORM CREDIT RISK-SHARING MECHANISMS, 
              PRODUCTS, STRUCTURES, CONTRACTS, OR OTHER SECURITY 
              AGREEMENTS.</DELETED>

<DELETED>    (a) Requirements; Share of Loss; Diversity.--Pursuant to 
section 201(a)(2), the Corporation shall develop standard form credit-
risk sharing mechanisms, products, structures, contracts, or other 
security agreements which shall require that the first loss position of 
private market holders of a covered security insured under this Act--
</DELETED>
        <DELETED>    (1) is adequate to cover losses that might be 
        incurred as a result of adverse economic conditions, wherein 
        such conditions are generally consistent with the economic 
        conditions, including national home price declines, observed in 
        the United States during moderate to severe recessions 
        experienced during the last 100 years; and</DELETED>
        <DELETED>    (2) is not less than 10 percent of the principal 
        or face value of the covered security.</DELETED>
<DELETED>    (b) Development Window for Risk-Sharing Mechanisms.--
</DELETED>
        <DELETED>    (1) In general.--The Corporation shall complete 
        the development and implementation of the mechanisms, products, 
        structures, contracts, or other security agreements required 
        under subsection (a) not later than 5 years after the date of 
        enactment of this Act.</DELETED>
        <DELETED>    (2) Examination of various mechanisms.--In 
        developing the mechanisms, products, structures, contracts, or 
        other security agreements required under subsection (a), the 
        Corporation shall--</DELETED>
                <DELETED>    (A) examine proposals that include a 
                senior-subordinated deal structure, credit-linked 
                structures, and the use of regulated guarantors with 
                sufficient equity capital to absorb losses associated 
                with moderate or severe economic downturns;</DELETED>
                <DELETED>    (B) consider any risk-sharing mechanisms, 
                products, structures, contracts, or other security 
                agreements undertaken by the business entity announced 
                by the Federal Housing Finance Agency and established 
                by the enterprises to provide a common securitization 
                platform for issuers in the secondary mortgage 
                market;</DELETED>
                <DELETED>    (C) consider how each proposed mechanism, 
                product, structure, contract, or other security 
                agreement--</DELETED>
                        <DELETED>    (i) minimizes any potential long-
                        term negative cost to the taxpayer;</DELETED>
                        <DELETED>    (ii) impacts the availability of 
                        mortgage credit for--</DELETED>
                                <DELETED>    (I) small financial 
                                institutions, such as credit unions and 
                                community and mid-size banks; 
                                and</DELETED>
                                <DELETED>    (II) consumers;</DELETED>
                        <DELETED>    (iii) influences mortgage 
                        affordability;</DELETED>
                        <DELETED>    (iv) allows for loan modifications 
                        and foreclosure prevention 
                        alternatives;</DELETED>
                        <DELETED>    (v) interacts with the To-Be-
                        Announced market; and</DELETED>
                        <DELETED>    (vi) facilitates market liquidity 
                        and resiliency; and</DELETED>
                <DELETED>    (D) ensure that lenders of all sizes and 
                from all geographic locations, including rural 
                locations, have equitable access to secondary mortgage 
                market financing.</DELETED>
        <DELETED>    (3) Report.--</DELETED>
                <DELETED>    (A) In general.--Not later than 1 year 
                after the date of enactment of this Act, and annually 
                thereafter until the end of the 5-year period provided 
                in paragraph (1), the Corporation shall submit a report 
                to the Committee on Banking, Housing, and Urban Affairs 
                of the Senate and the Committee on Financial Services 
                of the House of Representatives that--</DELETED>
                        <DELETED>    (i) details the benefits and 
                        drawbacks of each mechanism, product, 
                        structure, contract, or other security 
                        agreement that the Director considered in 
                        carrying out the requirement of this 
                        section;</DELETED>
                        <DELETED>    (ii) describes the operation and 
                        execution of any mechanisms, products, 
                        structures, contracts, or other security 
                        agreements that the Director determines best 
                        fulfills the requirements of this section; 
                        and</DELETED>
                        <DELETED>    (iii) explains how the Corporation 
                        arrived at the determination made under clause 
                        (ii).</DELETED>
                <DELETED>    (B) Subsequent reports.--After the 
                expiration of the 5-year period provided in paragraph 
                (1) and the submission of the report required under 
                subparagraph (A), each time the Corporation develops an 
                additional standard form credit risk-sharing mechanism, 
                product, structure, contract, or other security 
                agreement that fulfills the requirements of this 
                section, the Corporation shall submit a report to the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services of the 
                House of Representatives addressing the identical 
                concerns set forth under clauses (i) through (iii) of 
                subparagraph (A).</DELETED>

<DELETED>SEC. 203. MORTGAGE INSURANCE FUND.</DELETED>

<DELETED>    (a) Establishment.--There is established the Mortgage 
Insurance Fund, which the Corporation shall--</DELETED>
        <DELETED>    (1) maintain and administer; and</DELETED>
        <DELETED>    (2) use to cover losses incurred on covered 
        securities insured under this Act, when such losses exceed the 
        first position losses absorbed by private market holders of 
        such securities.</DELETED>
<DELETED>    (b) Deposits.--The Mortgage Insurance Fund shall be 
credited with any--</DELETED>
        <DELETED>    (1) insurance fee amounts required to be deposited 
        in the Fund under this section;</DELETED>
        <DELETED>    (2) guarantee fee amounts collected under section 
        601; and</DELETED>
        <DELETED>    (3) amounts earned on investments pursuant to 
        subsection (h).</DELETED>
<DELETED>    (c) Fiduciary Responsibility.--The Corporation has the 
responsibility to ensure that the Mortgage Insurance Fund remains 
financially sound.</DELETED>
<DELETED>    (d) Use.--</DELETED>
        <DELETED>    (1) In general.--The Mortgage Insurance Fund shall 
        be solely available to the Corporation for use by the 
        Corporation to carry out the functions authorized by this Act 
        and may not be used or otherwise diverted to cover any other 
        expense of the Federal Government.</DELETED>
        <DELETED>    (2) Exemption from apportionment.--Notwithstanding 
        any other provision of law, amounts received by the Mortgage 
        Insurance Fund pursuant to any fees collected under this 
        section shall not be subject to apportionment for the purposes 
        of chapter 15 of title 31, United States Code, or under any 
        other authority.</DELETED>
<DELETED>    (e) Reserve Ratio Goals for Mortgage Insurance Fund.--The 
Corporation shall endeavor to ensure that the Mortgage Insurance Fund 
attains a reserve balance--</DELETED>
        <DELETED>    (1) of 1.25 percent of the sum of the outstanding 
        principal balance of the covered securities for which insurance 
        is being provided under this title within 5 years of the FMIC 
        certification date, and to strive to maintain such ratio 
        thereafter, subject to subparagraph (B); and</DELETED>
        <DELETED>    (2) of 2.50 percent of the sum of the outstanding 
        principal balance of the covered securities for which insurance 
        is being provided under this title within 10 years of the FMIC 
        certification date, and to strive to maintain such ratio at all 
        times thereafter.</DELETED>
<DELETED>    (f) Maintenance of Reserve Ratio; Establishment of Fees.--
</DELETED>
        <DELETED>    (1) Establishment of fees.--The Corporation shall 
        charge and collect a fee, and may in its discretion increase or 
        decrease such fee, in connection with any insurance provided 
        under this title to--</DELETED>
                <DELETED>    (A) achieve and maintain the reserve ratio 
                goals established under subsection (e);</DELETED>
                <DELETED>    (B) achieve such reserve ratio goals, if 
                the actual balance of such reserve is below the goal 
                amounts established under subsection (e); and</DELETED>
                <DELETED>    (C) fund the operations of the 
                Corporation.</DELETED>
        <DELETED>    (2) Fee considerations.--In exercising the 
        authority granted under paragraph (1), the Corporation shall 
        consider--</DELETED>
                <DELETED>    (A) the expected operating expenses of the 
                Mortgage Insurance Fund;</DELETED>
                <DELETED>    (B) the risk of loss to the Mortgage 
                Insurance Fund in carrying out the requirements under 
                this Act;</DELETED>
                <DELETED>    (C) the risk presented by, and the loss 
                absorption capacity of, the credit enhancement that is 
                provided on the pool of eligible mortgages 
                collateralizing the covered security to be insured 
                under this title;</DELETED>
                <DELETED>    (D) economic conditions generally 
                affecting the mortgage markets;</DELETED>
                <DELETED>    (E) the extent to which the reserve ratio 
                of the Mortgage Insurance Fund met--</DELETED>
                        <DELETED>    (i) the reserve ratio set for the 
                        preceding 12-month period; or</DELETED>
                        <DELETED>    (ii) the reserve ratio goals 
                        established in subsection (e); and</DELETED>
                <DELETED>    (F) any other factor that the Corporation 
                determines appropriate.</DELETED>
        <DELETED>    (3) Fee uniformity.--The fee required under 
        paragraph (1)--</DELETED>
                <DELETED>    (A) shall be set at a uniform amount 
                applicable to all institutions purchasing insurance 
                under this title;</DELETED>
                <DELETED>    (B) may not vary--</DELETED>
                        <DELETED>    (i) by geographic location; 
                        or</DELETED>
                        <DELETED>    (ii) by the size of the 
                        institution to which the fee is charged; 
                        and</DELETED>
                <DELETED>    (C) may not be based on the volume of 
                insurance to be purchased by an approved 
                issuer.</DELETED>
        <DELETED>    (4) Deposit into mortgage insurance fund.--Any fee 
        amounts collected under this subsection shall be deposited in 
        the Mortgage Insurance Fund.</DELETED>
<DELETED>    (g) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all amounts from the 
Mortgage Insurance Fund which may be required to be paid under any 
insurance provided under this title.</DELETED>
<DELETED>    (h) Investments.--Amounts in the Mortgage Insurance Fund 
that are not otherwise employed--</DELETED>
        <DELETED>    (1) shall be invested in obligations of the United 
        States; and</DELETED>
        <DELETED>    (2) may not be invested in any covered security 
        insured under this Act.</DELETED>

<DELETED>SEC. 204. INSURANCE.</DELETED>

<DELETED>    (a) Authority.--The Corporation shall, upon application 
and in exchange for a fee in accordance with section 203(f), insure the 
payment of principal and interest on a covered security with respect to 
losses that may be incurred on such security.</DELETED>
<DELETED>    (b) Precondition; Ensuring Placement of First Loss 
Capital.--The Corporation shall develop standards and processes to 
ensure that prior to making any commitment to provide insurance under 
this section that private market holders have taken first loss position 
in a covered security and that such holders have sufficient capital to 
cover their risk-sharing obligations.</DELETED>
<DELETED>    (c) Cash Payments; Continued Operations.--In the event of 
a payment default on an eligible mortgage that collateralizes a covered 
security insured under this section that exceeds the first loss 
position assumed by a private market holder or that, in the case of an 
approved bond guarantor, if the guarantor has become insolvent, the 
Corporation shall--</DELETED>
        <DELETED>    (1) pay, in cash when due, any shortfalls in 
        payment of principal and interest under the eligible mortgage; 
        and</DELETED>
        <DELETED>    (2) continue to charge and collect any fees for 
        the provision of insurance (in accordance with section 203(f)) 
        relating to the covered security.</DELETED>
<DELETED>    (d) Full Faith and Credit.--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 insurance provided under this 
section.</DELETED>
<DELETED>    (e) Prohibition on Federal Assistance.--Notwithstanding 
any other provision of law, no Federal funds may be used to purchase or 
guarantee obligations of, issue lines of credit to, provide direct or 
indirect access to any financing provided by the United States 
Government to, or provide direct or indirect grants and aid to any 
private market holder of the first loss position on a covered security 
which, on or after the date of enactment of this Act, has defaulted on 
its obligations, is at risk of defaulting, or is likely to default, 
absent such assistance from the United States Government.</DELETED>

<DELETED>SEC. 205. AUTHORITY TO PROTECT TAXPAYERS IN UNUSUAL AND 
              EXIGENT MARKET CONDITIONS.</DELETED>

<DELETED>    (a) In General.--If the Corporation, upon the written 
agreement of the Chairman of the Board of Governors of the Federal 
Reserve System and the Secretary of the Treasury, and in consultation 
with the Secretary of Housing and Urban Development, determines that 
unusual and exigent circumstances have created or threatened to create 
an anomalous lack of mortgage credit availability within the housing 
markets that could materially and severely disrupt the functioning of 
the housing finance system of the United States, the Corporation may, 
for a period not to exceed 6 months, provide insurance in accord with 
section 204 to any covered security regardless of whether such security 
has satisfied the requirements of section 202(a).</DELETED>
<DELETED>    (b) Considerations.--In exercising the authority granted 
under subsection (a), the Corporation shall consider the severity of 
the conditions present in the housing markets and the risks presented 
to the Mortgage Insurance Fund in exercising such authority.</DELETED>
<DELETED>    (c) Limitation.--The authority granted to the Corporation 
under subsection (a) may not be exercised more than once in any given 
3-year period.</DELETED>

<DELETED>SEC. 206. GENERAL POWERS.</DELETED>

<DELETED>    (a) Corporate Powers.--The Federal Mortgage Insurance 
Corporation shall have power--</DELETED>
        <DELETED>    (1) to adopt, alter, and use a corporate seal, 
        which shall be judicially noticed;</DELETED>
        <DELETED>    (2) to enter into and perform contracts, leases, 
        cooperative agreements, or other transactions, on such terms as 
        it may deem appropriate, with any agency or instrumentality of 
        the United States, or with any State, Territory, or possession, 
        or the Commonwealth of Puerto Rico, or with any political 
        subdivision thereof, or with any person, firm, association, or 
        corporation;</DELETED>
        <DELETED>    (3) to execute, in accordance with its bylaws, all 
        instruments necessary or appropriate in the exercise of any of 
        its powers;</DELETED>
        <DELETED>    (4) in its corporate name, to sue and to be sued, 
        and to complain and to defend, in any court of competent 
        jurisdiction, State or Federal, but no attachment, injunction, 
        or other similar process, mesne or final, shall be issued 
        against the property of the Corporation;</DELETED>
        <DELETED>    (5) to conduct its business without regard to any 
        qualification or similar statute in any State of the United 
        States, including the District of Columbia, the Commonwealth of 
        Puerto Rico, and the Territories and possessions of the United 
        States;</DELETED>
        <DELETED>    (6) to lease, purchase, or acquire any property, 
        real, personal, or mixed, or any interest therein, to hold, 
        rent, maintain, modernize, renovate, improve, use, and operate 
        such property, and to sell, for cash or credit, lease, or 
        otherwise dispose of the same, at such time and in such manner 
        as and to the extent that it may deem necessary or 
        appropriate;</DELETED>
        <DELETED>    (7) to prescribe, repeal, and amend or modify, 
        rules, regulations, or requirements governing the manner in 
        which its general business may be conducted;</DELETED>
        <DELETED>    (8) to accept gifts or donations of services, or 
        of property, real, personal, or mixed, tangible, or intangible, 
        in aid of any of its purposes; and</DELETED>
        <DELETED>    (9) to do all things as are necessary or 
        incidental to the proper management of its affairs and the 
        proper conduct of its business.</DELETED>
<DELETED>    (b) Expenditures.--Except as may be otherwise provided in 
this title, in chapter 91 of title 31, United States Code, or in other 
laws specifically applicable to Government corporations, the 
Corporation shall determine the necessity for, and the character and 
amount of its obligations and expenditures, and the manner in which 
they shall be incurred, allowed, paid, and accounted for.</DELETED>
<DELETED>    (c) Exemption From Certain Taxes.--The Corporation, 
including its franchise, capital, reserves, surplus, mortgages or other 
security holdings, and income shall be exempt from all taxation now or 
hereafter imposed by the United States, by any territory, dependency, 
or possession thereof, or by any State, county, municipality, or local 
taxing authority, except that any real property of the Corporation 
shall be subject to State, territorial, county, municipal, or local 
taxation to the same extent according to its value as other real 
property is taxed.</DELETED>
<DELETED>    (d) Exclusive Use of Name.--No individual, association, 
partnership, or corporation, except the bodies corporate named under 
section 101, shall hereafter use the words ``Federal Mortgage Insurance 
Corporation'' or any combination of such words, as the name or a part 
thereof under which the individual, association, partnership, or 
corporation shall do business. Violations of the foregoing sentence may 
be enjoined by any court of general jurisdiction at the suit of the 
proper body corporate. In any such suit, the plaintiff may recover any 
actual damages flowing from such violation, and, in addition, shall be 
entitled to punitive damages (regardless of the existence or 
nonexistence of actual damages) of not exceeding $100 for each day 
during which such violation is committed or repeated.</DELETED>
<DELETED>    (e) Fiscal Agents.--The Federal Reserve banks are 
authorized and directed to act as depositories, custodians, and fiscal 
agents for each of the bodies corporate named in section 101, for its 
own account or as fiduciary, and such banks shall be reimbursed for 
such services in such manner as may be agreed upon; and each of such 
bodies corporate may itself act in such capacities, for its own account 
or as fiduciary, and for the account of others.</DELETED>

<DELETED>SEC. 207. EXEMPTIONS.</DELETED>

<DELETED>    (a) Securities Exempt From SEC Regulation.--</DELETED>
        <DELETED>    (1) In general.--All covered securities insured or 
        guaranteed by the Corporation shall, to the same extent as 
        securities that are direct obligations of or obligations 
        guaranteed as to principal or interest by the United States, be 
        deemed to be exempt securities within the meaning of the laws 
        administered by the Securities and Exchange 
        Commission.</DELETED>
        <DELETED>    (2) Conforming amendment.--The first sentence of 
        section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 
        77c(a)(2)) is amended by inserting ``or any covered security, 
        as such term is defined under section 2(9) of the Housing 
        Finance Reform and Taxpayer Protection Act of 2013;'' after 
        ``Federal Reserve bank;''.</DELETED>
<DELETED>    (b) QRM Exemption.--Section 15G(e) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78o-11(e)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (3)(B)--</DELETED>
                <DELETED>    (A) by striking ``Association, the'' and 
                inserting ``Association and the''; and</DELETED>
                <DELETED>    (B) by striking ``and the Federal home 
                loan banks''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(7) Covered securities insured by the federal 
        mortgage insurance corporation.--Notwithstanding any other 
        provision of this section, the requirements of this section 
        shall not apply to any covered security, as such term is 
        defined under section 2(9) of the Housing Finance Reform and 
        Taxpayer Protection Act of 2013, insured or guaranteed by the 
        Federal Mortgage Insurance Corporation or any institution that 
        is subject to the supervision of the Federal Mortgage Insurance 
        Corporation.''.</DELETED>

    <DELETED>Subtitle B--Oversight of Market Participants</DELETED>

<DELETED>SEC. 211. APPROVAL OF PRIVATE MORTGAGE INSURERS.</DELETED>

<DELETED>    (a) Standards for Approval of Private Mortgage Insurers.--
</DELETED>
        <DELETED>    (1) In general.--The Corporation shall develop, 
        adopt, and publish standards for the approval by the 
        Corporation of private mortgage insurers to provide private 
        mortgage insurance on eligible mortgages.</DELETED>
        <DELETED>    (2) Required standards.--The standards required 
        under paragraph (1) shall include--</DELETED>
                <DELETED>    (A) the financial history and condition of 
                the insurer;</DELETED>
                <DELETED>    (B) the adequacy of the insurer's capital 
                structure, including whether the insurer has sufficient 
                capital to cover the first loss insurance obligations 
                it assumes under this Act and that might be incurred in 
                a period of economic stress, including, but not limited 
                to, any period of economic stress that would result in 
                a 30 percent (or greater) national home price 
                decline;</DELETED>
                <DELETED>    (C) the general character and fitness of 
                the management of the insurer, including compliance 
                history with Federal and State laws;</DELETED>
                <DELETED>    (D) the risk presented by such insurer to 
                the Mortgage Insurance Fund;</DELETED>
                <DELETED>    (E) the adequacy of insurance and fidelity 
                coverage of the insurer;</DELETED>
                <DELETED>    (F) a requirement that the insurer submit 
                audited financial statements to the Director; 
                and</DELETED>
                <DELETED>    (G) any other standard the Corporation 
                determines necessary or appropriate.</DELETED>
<DELETED>    (b) Application and Approval.--</DELETED>
        <DELETED>    (1) Application process.--The Corporation shall 
        establish an application process, in such form and manner and 
        requiring such information as the Corporation may require, for 
        the approval of private mortgage insurers under this 
        section.</DELETED>
        <DELETED>    (2) Approval.--The Corporation may approve any 
        application made pursuant to paragraph (1) provided the private 
        mortgage insurer meets the standards adopted under subsection 
        (a).</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of newly approved private mortgage insurers; 
                and</DELETED>
                <DELETED>    (B) maintain an updated list of approved 
                private mortgage insurers on the website of the 
                Corporation.</DELETED>
<DELETED>    (c) Review, Suspension, and Revocation of Approved 
Status.--</DELETED>
        <DELETED>    (1) In general.--The Corporation may review the 
        status of any approved private mortgage insurer if the 
        Corporation is notified of or becomes aware of any violation by 
        the insurer of this Act or the rules promulgated pursuant to 
        this Act.</DELETED>
        <DELETED>    (2) Suspension or revocation.--</DELETED>
                <DELETED>    (A) Corporation authority.--If the 
                Corporation determines, in a review pursuant to 
                paragraph (1), that an approved private mortgage 
                insurer no longer meets the standards for approval, the 
                Corporation may suspend or revoke the approved status 
                of such insurer.</DELETED>
                <DELETED>    (B) Rule of construction.--The suspension 
                or revocation of an approved private mortgage insurer's 
                approved status under this paragraph shall have no 
                effect on the status of any covered security.</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of any approved private mortgage insurers who lost 
                their approved status; and</DELETED>
                <DELETED>    (B) maintain an updated list of such 
                insurers on the website of the Corporation.</DELETED>
<DELETED>    (d) Appeals.--</DELETED>
        <DELETED>    (1) In general.--</DELETED>
                <DELETED>    (A) Appeals of denials of application.--A 
                private mortgage insurer who submits an application 
                under subsection (b)(1) to become an approved private 
                mortgage insurer may appeal a decision of the 
                Corporation denying such application.</DELETED>
                <DELETED>    (B) Appeals of denials of benefits or 
                suspensions of participation.--An approved private 
                mortgage insurer may appeal a decision of the 
                Corporation suspending or revoking the approved status 
                of such insurer.</DELETED>
        <DELETED>    (2) Filing of appeal.--Any insurer who files an 
        appeal under paragraph (1) shall file the appeal with the 
        Corporation not later than 90 days after the date on which the 
        person receives notice of the decision of the Corporation being 
        appealed.</DELETED>
        <DELETED>    (3) Final determination.--The Corporation shall 
        make a final determination with respect to an appeal under 
        paragraph (1) not later than 180 days after the date on which 
        the appeal is filed under paragraph (2).</DELETED>
<DELETED>    (e) Avoidance of Conflicts of Interest.--With respect to 
any eligible mortgage collateralizing a covered security insured under 
this Act, an approved private mortgage insurer may not provide 
insurance both--</DELETED>
        <DELETED>    (1) in satisfaction of the credit enhancement 
        required under section 2(11)(C); and</DELETED>
        <DELETED>    (2) to cover the first loss position of private 
        market holders of such covered security.</DELETED>

<DELETED>SEC. 212. APPROVAL OF SERVICERS.</DELETED>

<DELETED>    (a) Standards for Approval of Servicers.--</DELETED>
        <DELETED>    (1) In general.--The Corporation shall develop, 
        adopt, and publish standards for the approval by the 
        Corporation of servicers to administer eligible mortgages, 
        including standards with respect to--</DELETED>
                <DELETED>    (A) the collection and forwarding of 
                principal and interest payments;</DELETED>
                <DELETED>    (B) the maintenance of escrow 
                accounts;</DELETED>
                <DELETED>    (C) the collection and payment of taxes 
                and insurance premiums;</DELETED>
                <DELETED>    (D) the maintenance of records on eligible 
                mortgages;</DELETED>
                <DELETED>    (E) the establishment of foreclosure loss 
                mitigation programs that seek to enhance investor value 
                and prevent, to greatest extent possible, the need to 
                trigger any claim on insurance offered by the 
                Corporation pursuant to this title;</DELETED>
                <DELETED>    (F) the advancement of principal and 
                interest payments to investors in the case of a 
                delinquency by a borrower until such time as the 
                borrower has made all payments in arrears or the 
                property securing the eligible mortgage has been 
                liquidated; and</DELETED>
                <DELETED>    (G) implementing the terms of any loss 
                mitigation and foreclosure prevention as required by a 
                uniform securitization agreement developed under 
                section 223.</DELETED>
        <DELETED>    (2) Additional required standards.--The standards 
        required under paragraph (1) shall also include--</DELETED>
                <DELETED>    (A) the financial history and condition of 
                the servicer;</DELETED>
                <DELETED>    (B) the general character and fitness of 
                the management of the servicer, including compliance 
                history with Federal and State laws;</DELETED>
                <DELETED>    (C) the risk presented by such servicer to 
                the Mortgage Insurance Fund;</DELETED>
                <DELETED>    (D) a requirement that the servicer submit 
                audited financial statements to the Corporation; 
                and</DELETED>
                <DELETED>    (E) any other standard the Corporation 
                determines necessary or appropriate.</DELETED>
        <DELETED>    (3) Coordination with other regulators.--In 
        developing the standards required under paragraph (1), the 
        Corporation shall--</DELETED>
                <DELETED>    (A) coordinate with the Bureau of Consumer 
                Financial Protection; and</DELETED>
                <DELETED>    (B) to the extent the Corporation 
                determines practical and appropriate, shall coordinate 
                with the other Federal banking agencies.</DELETED>
<DELETED>    (b) Application and Approval.--</DELETED>
        <DELETED>    (1) Application process.--The Corporation shall 
        establish an application process--</DELETED>
                <DELETED>    (A) in such form and manner and requiring 
                such information as the Corporation may require, for 
                the approval of servicers under this section; 
                and</DELETED>
                <DELETED>    (B) that does not discriminate against or 
                otherwise disadvantage small servicers.</DELETED>
        <DELETED>    (2) Approval.--The Corporation may approve any 
        application made pursuant to paragraph (1) provided the 
        servicer meets the standards adopted under subsection 
        (a).</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of newly approved servicers; and</DELETED>
                <DELETED>    (B) maintain an updated list of approved 
                servicers on the website of the Corporation.</DELETED>
<DELETED>    (c) Review, Suspension, and Revocation of Approved 
Status.--</DELETED>
        <DELETED>    (1) In general.--The Corporation may review the 
        status of any approved servicer if the Corporation is notified 
        of or becomes aware of any violation by the servicer of this 
        Act or the rules promulgated pursuant to this Act, including 
        any failure by an approved servicer to comply with terms set 
        forth in any uniform securitization agreement developed under 
        section 223.</DELETED>
        <DELETED>    (2) Suspension or revocation.--</DELETED>
                <DELETED>    (A) Corporation authority.--If the 
                Corporation determines, in a review pursuant to 
                paragraph (1), that an approved servicer no longer 
                meets the standards for approval, the Corporation may 
                suspend or revoke the approved status of such 
                servicer.</DELETED>
                <DELETED>    (B) Rule of construction.--The suspension 
                or revocation of an approved servicer's approved status 
                under this paragraph shall have no effect on the status 
                of any covered security.</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of any approved servicers who lost their approved 
                status; and</DELETED>
                <DELETED>    (B) maintain an updated list of such 
                servicers on the website of the Corporation.</DELETED>
<DELETED>    (d) Appeals.--</DELETED>
        <DELETED>    (1) In general.--</DELETED>
                <DELETED>    (A) Appeals of denials of application.--A 
                servicer who submits an application under subsection 
                (b)(1) to become an approved servicer may appeal a 
                decision of the Corporation denying such 
                application.</DELETED>
                <DELETED>    (B) Appeals of denials of benefits or 
                suspensions of participation.--An approved servicer may 
                appeal a decision of the Corporation suspending or 
                revoking the approved status of such 
                servicer.</DELETED>
        <DELETED>    (2) Filing of appeal.--Any servicer who files an 
        appeal under paragraph (1) shall file the appeal with the 
        Corporation not later than 90 days after the date on which the 
        person receives notice of the decision of the Corporation being 
        appealed.</DELETED>
        <DELETED>    (3) Final determination.--The Corporation shall 
        make a final determination with respect to an appeal under 
        paragraph (1) not later than 180 days after the date on which 
        the appeal is filed under paragraph (2).</DELETED>
<DELETED>    (e) Petitions for Change of Servicer by Private Market 
Holders.--The Corporation shall develop a process by which private 
market holders of the first loss position in a covered security may 
petition the Corporation for a change in approved servicers if the 
private market holders can demonstrate that their current approved 
servicer has failed to appropriately protect their investment, 
including by failing to meet any standard identified under subsection 
(a)(1).</DELETED>

<DELETED>SEC. 213. APPROVAL OF ISSUERS.</DELETED>

<DELETED>    (a) Standards for Approval of Issuers.--</DELETED>
        <DELETED>    (1) In general.--The Corporation shall develop, 
        adopt, and publish standards for the approval by the 
        Corporation of issuers to issue covered securities, including 
        standards with respect to an issuer's ability to--</DELETED>
                <DELETED>    (A) aggregate eligible mortgage loans into 
                pools;</DELETED>
                <DELETED>    (B) securitize eligible mortgage loans for 
                sale to private investors as a covered 
                security;</DELETED>
                <DELETED>    (C) transfer investment risk and credit to 
                private market participants in accordance with the 
                risk-sharing mechanisms developed by the Corporation 
                under section 202;</DELETED>
                <DELETED>    (D) ensure equitable access to the 
                secondary mortgage market for covered securities for 
                all institutions regardless of size or geographic 
                location;</DELETED>
                <DELETED>    (E) create mechanisms for multi-lender 
                pools; and</DELETED>
                <DELETED>    (F) ensure that eligible mortgage loans 
                that collateralize a covered security insured under 
                this title are originated in compliance with the 
                requirements of this Act.</DELETED>
        <DELETED>    (2) Additional required standards.--The standards 
        required under paragraph (1) shall also include--</DELETED>
                <DELETED>    (A) the financial history and condition of 
                the issuer;</DELETED>
                <DELETED>    (B) the adequacy of the capital structure 
                of the issuer;</DELETED>
                <DELETED>    (C) the general character and fitness of 
                the management of the issuer, including compliance 
                history with Federal and State laws;</DELETED>
                <DELETED>    (D) the risk presented by such issuer to 
                the Mortgage Insurance Fund;</DELETED>
                <DELETED>    (E) the adequacy of insurance and fidelity 
                coverage of the issuer;</DELETED>
                <DELETED>    (F) a requirement that the issuer submit 
                audited financial statements to the 
                Corporation;</DELETED>
                <DELETED>    (G) the capacity of the issuer to secure 
                first loss credit enhancement; and</DELETED>
                <DELETED>    (H) any other standard the Corporation 
                determines necessary or appropriate.</DELETED>
<DELETED>    (b) Application and Approval.--</DELETED>
        <DELETED>    (1) Application process.--</DELETED>
                <DELETED>    (A) In general.--The Corporation shall 
                establish an application process, in such form and 
                manner and requiring such information as the 
                Corporation may require, for the approval of issuers 
                under this section.</DELETED>
                <DELETED>    (B) Application process for insured 
                depository institutions.--If an insured depository 
                institution seeks to become an approved issuer under 
                this section, such institution may only submit its 
                application via a separately capitalized affiliate or 
                subsidiary.</DELETED>
        <DELETED>    (2) Approval.--The Corporation--</DELETED>
                <DELETED>    (A) may approve--</DELETED>
                        <DELETED>    (i) any application made pursuant 
                        to paragraph (1) provided the issuer meets the 
                        standards adopted under subsection (a); 
                        and</DELETED>
                        <DELETED>    (ii) any application to become an 
                        approved issuer made by the Federal Home Loan 
                        Bank System; and</DELETED>
                <DELETED>    (B) shall ensure that at least one issuer 
                approved to issue covered securities under this section 
                is dedicated to serving the securitization needs of 
                credit unions and community and mid-size banks without 
                securitization capabilities.</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of newly approved issuers; and</DELETED>
                <DELETED>    (B) maintain an updated list of approved 
                issuers on the website of the Corporation.</DELETED>
<DELETED>    (c) Federal Home Loan Bank System.--</DELETED>
        <DELETED>    (1) In general.--If the Federal Home Loan Bank 
        System is approved by the Corporation to become an approved 
        issuer under this section, the Corporation shall--</DELETED>
                <DELETED>    (A) develop a process by which each 
                individual Federal Home Loan Bank may elect not to 
                engage or otherwise contribute to any activity 
                practiced by the Federal Home Loan Bank System as an 
                approved issuer;</DELETED>
                <DELETED>    (B) ensure that, notwithstanding section 
                11 of the Federal Home Loan Bank Act (12 U.S.C. 1431), 
                any covered securities issued by the Federal Home Loan 
                Bank System as an approved issuer are not issued as 
                consolidated Federal Home Loan Bank debentures and are 
                explicitly designated or otherwise treated as not being 
                the joint and several obligations of any individual 
                Federal Home Loan Bank that has made an election under 
                subparagraph (A); and</DELETED>
                <DELETED>    (C) ensure that in establishing the 
                capital standards set forth under subsection (a)(2)(B) 
                with respect to the Federal Home Loan Bank System, that 
                such standards shall--</DELETED>
                        <DELETED>    (i) not be applicable to any 
                        individual Federal Home Loan Bank that has made 
                        an election under subparagraph (A);</DELETED>
                        <DELETED>    (ii) be based on the volume of 
                        eligible mortgage loan originations made by the 
                        Federal Home Loan Banks that have not made an 
                        election under subparagraph (A); and</DELETED>
                        <DELETED>    (iii) not adversely impact the 
                        traditional liquidity and advance business of 
                        the Federal Home Loan Banks or the Federal Home 
                        Loan Bank System.</DELETED>
        <DELETED>    (2) Federal home loan bank act.--</DELETED>
                <DELETED>    (A) Amendment.--Section 12 of the Federal 
                Home Loan Bank Act (12 U.S.C. 1432) is amended by 
                adding at the end the following:</DELETED>
<DELETED>    ``(c) Subject to such regulations as may be prescribed by 
the Corporation, one or more Federal Home Loan Banks may establish a 
subsidiary. Any subsidiary established under this subsection shall be 
subject to supervision by the Office of Federal Home Loan Bank 
Supervision of the Corporation and shall be restricted to engaging in 
activities related to being an approved issuer, as that term is defined 
under section 2(2) of the Housing Finance Reform and Taxpayer 
Protection Act of 2013.''.</DELETED>
                <DELETED>    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on the transfer 
                date.</DELETED>
<DELETED>    (d) Review, Suspension, and Revocation of Approved 
Status.--</DELETED>
        <DELETED>    (1) In general.--The Corporation may review the 
        status of any approved issuer if the Corporation is notified of 
        or becomes aware of any violation by the issuer of this Act or 
        the rules promulgated pursuant to this Act.</DELETED>
        <DELETED>    (2) Suspension or revocation.--</DELETED>
                <DELETED>    (A) Corporation authority.--If the 
                Corporation determines, in a review pursuant to 
                paragraph (1), that an approved issuer no longer meets 
                the standards for approval, the Corporation may suspend 
                or revoke the approved status of such issuer.</DELETED>
                <DELETED>    (B) Rule of construction.--The suspension 
                or revocation of an approved issuer's approved status 
                under this paragraph shall have no effect on the status 
                of any covered security.</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of any approved issuers who lost their approved status; 
                and</DELETED>
                <DELETED>    (B) maintain an updated list of such 
                issuers on the website of the Corporation.</DELETED>
<DELETED>    (e) Appeals.--</DELETED>
        <DELETED>    (1) In general.--</DELETED>
                <DELETED>    (A) Appeals of denials of application.--An 
                issuer who submits an application under subsection 
                (b)(1) to become an approved issuer may appeal a 
                decision of the Corporation denying such 
                application.</DELETED>
                <DELETED>    (B) Appeals of denials of benefits or 
                suspensions of participation.--An approved issuer may 
                appeal a decision of the Corporation suspending or 
                revoking the approved status of such issuer.</DELETED>
        <DELETED>    (2) Filing of appeal.--Any issuer who files an 
        appeal under paragraph (1) shall file the appeal with the 
        Corporation not later than 90 days after the date on which the 
        person receives notice of the decision of the Corporation being 
        appealed.</DELETED>
        <DELETED>    (3) Final determination.--The Corporation shall 
        make a final determination with respect to an appeal under 
        paragraph (1) not later than 180 days after the date on which 
        the appeal is filed under paragraph (2).</DELETED>
<DELETED>    (f) Limitation on Market Share.--</DELETED>
        <DELETED>    (1) In general.--The Corporation may not enter 
        into any contract, covenant, or other agreement with an 
        approved issuer, if such contract, covenant, or agreement would 
        provide the issuer a share of the covered security issuer 
        market in excess of 15 percent of the total market, as such 
        market is measured by the total outstanding principal balance 
        at origination of eligible mortgages collateralizing covered 
        securities issued in the previous 12-month period.</DELETED>
        <DELETED>    (2) Exception.--The limitation set forth under 
        paragraph (1) shall not apply to--</DELETED>
                <DELETED>    (A) an approved issuer described under 
                subsection (b)(2)(A)(ii);</DELETED>
                <DELETED>    (B) the FMIC Mutual Securitization 
                Company;</DELETED>
                <DELETED>    (C) any approved issuer which securitizes 
                only eligible mortgage loans originated by the issuer 
                or an affiliate of the issuer; or</DELETED>
                <DELETED>    (D) any approved issuer to which the 
                Corporation grants a waiver pursuant to paragraph 
                (3).</DELETED>
        <DELETED>    (3) Waiver.--The Corporation may, during the 3-
        year period beginning on the FMIC certification date, grant a 
        waiver from the limitation set forth under paragraph (1) to an 
        approved issuer if the Corporation determines that the number 
        of approved issuers is insufficient, such that imposition of 
        the limitation would adversely affect the availability of 
        mortgage credit.</DELETED>
<DELETED>    (g) Limited Authority To Hold Eligible Mortgage Loans.--An 
approved issuer may, for a period not to exceed 6-months, hold--
</DELETED>
        <DELETED>    (1) eligible mortgage loans on the balance sheet 
        of such issuer; and</DELETED>
        <DELETED>    (2) the first loss position in a covered security 
        for purposes of obtaining insurance under this title.</DELETED>

<DELETED>SEC. 214. APPROVAL OF BOND GUARANTORS.</DELETED>

<DELETED>    (a) Standards for Approval of Bond Guarantors.--</DELETED>
        <DELETED>    (1) In general.--The Corporation shall develop, 
        adopt, and publish standards for the approval by the 
        Corporation of bond guarantors to guarantee the timely payment 
        of principal and interest on securities collateralized by 
        eligible mortgages and insured by the Corporation.</DELETED>
        <DELETED>    (2) Required standards.--The standards required 
        under paragraph (1) shall include--</DELETED>
                <DELETED>    (A) the financial history and condition of 
                the guarantor;</DELETED>
                <DELETED>    (B) that the guarantor maintain a minimum 
                capital level equal to not less than 10 percent of the 
                unpaid principal balance of outstanding mortgage-backed 
                securities for which the guarantor is providing 
                insurance, net of any transactions, including 
                derivative transactions, repurchase agreements, reverse 
                repurchase agreements, securities lending transactions, 
                or securities borrowing transactions, that in the 
                determination of the Corporation are used by the 
                guarantor to hedge or mitigate against credit risk, 
                provided that any such hedging transaction does not 
                diminish the total amount of loss absorption capital in 
                the secondary mortgage market that stands in front of 
                the insurance provided by the Corporation under this 
                title;</DELETED>
                <DELETED>    (C) the general character and fitness of 
                the management of the guarantor, including compliance 
                history with Federal and State laws;</DELETED>
                <DELETED>    (D) the risk presented by such guarantor 
                to the Mortgage Insurance Fund;</DELETED>
                <DELETED>    (E) the adequacy of insurance and fidelity 
                coverage of the guarantor;</DELETED>
                <DELETED>    (F) a requirement that the guarantor 
                submit audited financial statements to the 
                Director;</DELETED>
                <DELETED>    (G) a requirement that the guarantor meet 
                a minimum tangible common equity level, or other 
                minimum capital threshold as the Corporation determines 
                necessary; and</DELETED>
                <DELETED>    (H) any other standard the Corporation 
                determines necessary or appropriate.</DELETED>
<DELETED>    (b) Rule of Construction.--Any covered security issued by 
an approved issuer and insured by an approved bond guarantor shall be 
deemed to have satisfied the credit-risk sharing requirements under 
section 202(a)(1) with respect to the eligibility of that security to 
obtain insurance under this title.</DELETED>
<DELETED>    (c) Application and Approval.--</DELETED>
        <DELETED>    (1) Application process.--</DELETED>
                <DELETED>    (A) In general.--The Corporation shall 
                establish an application process, in such form and 
                manner and requiring such information as the 
                Corporation may require, for the approval of bond 
                guarantors under this section.</DELETED>
                <DELETED>    (B) Application process by insured 
                depository institutions.--If an insured depository 
                institution seeks to become an approved bond guarantor 
                under this section, such institution may only submit 
                its application via a separately capitalized affiliate 
                or subsidiary.</DELETED>
        <DELETED>    (2) Approval.--The Corporation may approve any 
        application made pursuant to paragraph (1) provided the bond 
        guarantor meets the standards adopted under subsection 
        (a).</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of newly approved bond guarantors; and</DELETED>
                <DELETED>    (B) maintain an updated list of approved 
                bond guarantors on the website of the 
                Corporation.</DELETED>
<DELETED>    (d) Review, Suspension, and Revocation of Approved 
Status.--</DELETED>
        <DELETED>    (1) In general.--The Corporation may review the 
        status of any approved bond guarantor if the Corporation is 
        notified of or becomes aware of any violation by the insurer of 
        this Act or the rules promulgated pursuant to this 
        Act.</DELETED>
        <DELETED>    (2) Suspension or revocation.--</DELETED>
                <DELETED>    (A) Corporation authority.--If the 
                Corporation determines, in a review pursuant to 
                paragraph (1), that an approved bond guarantor no 
                longer meets the standards for approval, the 
                Corporation shall revoke the approved status of such 
                guarantor.</DELETED>
                <DELETED>    (B) Rule of construction.--The revocation 
                of an approved bond guarantor's approved status under 
                this paragraph shall have no effect on the status of 
                any covered security.</DELETED>
        <DELETED>    (3) Publication.--The Corporation shall--
        </DELETED>
                <DELETED>    (A) publish in the Federal Register a list 
                of any approved bond guarantors who lost their approved 
                status; and</DELETED>
                <DELETED>    (B) maintain an updated list of such 
                guarantors on the website of the Corporation.</DELETED>
<DELETED>    (e) Appeals.--</DELETED>
        <DELETED>    (1) In general.--</DELETED>
                <DELETED>    (A) Appeals of denials of application.--A 
                bond guarantor who submits an application under 
                subsection (c)(1) to become an approved bond guarantor 
                may appeal a decision of the Corporation denying such 
                application.</DELETED>
                <DELETED>    (B) Appeals of denials of benefits or 
                suspensions of participation.--An approved bond 
                guarantor may appeal a decision of the Corporation 
                suspending or revoking the approved status of such 
                guarantor.</DELETED>
        <DELETED>    (2) Filing of appeal.--Any bond guarantor who 
        files an appeal under paragraph (1) shall file the appeal with 
        the Corporation not later than 90 days after the date on which 
        the person receives notice of the decision of the Corporation 
        being appealed.</DELETED>
        <DELETED>    (3) Final determination.--The Corporation shall 
        make a final determination with respect to an appeal under 
        paragraph (1) not later than 180 days after the date on which 
        the appeal is filed under paragraph (2).</DELETED>
<DELETED>    (f) Limitations on Approved Bond Guarantors.--With respect 
to any eligible mortgage collateralizing a covered security insured 
under this Act, an approved bond guarantor may not provide insurance--
</DELETED>
        <DELETED>    (1) in satisfaction of the credit enhancement 
        required under section 2(11)(C) or as an approved private 
        mortgage insurer pursuant to section 211; and</DELETED>
        <DELETED>    (2) as an approved bond guarantor under this 
        section.</DELETED>
<DELETED>    (g) Permission To Carry Out Other Activities.--Nothing in 
this Act prohibits an approved bond guarantor from being or controlling 
an approved issuer, provided that each issuer and bond guarantor, 
independent of each other, meet the approval standards established by 
the Corporation under this title.</DELETED>

<DELETED>SEC. 215. AUTHORITY TO ESTABLISH FMIC MUTUAL SECURITIZATION 
              COMPANY.</DELETED>

<DELETED>    (a) In General.--The Corporation shall establish a mutual 
corporation to be known as the ``FMIC Mutual Securitization 
Company''.</DELETED>
<DELETED>    (b) Purpose.--The purpose of the FMIC Mutual 
Securitization Company is to--</DELETED>
        <DELETED>    (1) develop, securitize, sell, and otherwise meet 
        the issuing needs of credit unions, community and mid-size 
        banks, and non-depository mortgage originators with respect to 
        covered securities; and</DELETED>
        <DELETED>    (2) purchase from its member participants for 
        cash, on a single loan basis, eligible mortgage loans to 
        securitize in a covered security.</DELETED>
<DELETED>    (c) Sale of Necessary Technology.--Upon the FMIC 
certification date, the enterprises shall sell to the FMIC Mutual 
Securitization Company any function, activity, infrastructure, 
property, including intellectual property, platform, or any other 
object or service of an enterprise that the Corporation determines 
necessary for the FMIC Mutual Securitization Company to carry out its 
activities and operations.</DELETED>
<DELETED>    (d) Designation as an Approved Issuer.--The FMIC Mutual 
Securitization Company shall be an approved issuer for purposes of 
section 213.</DELETED>
<DELETED>    (e) Eligibility.--Eligibility to participate as a member 
in the FMIC Mutual Securitization Company shall be limited to--
</DELETED>
        <DELETED>    (1) insured depository institutions having less 
        than $15,000,000,000 in total consolidated assets at the time 
        of the institution's initial participation in the Company; 
        or</DELETED>
        <DELETED>    (2) any non-depository mortgage originator having 
        a minimum net worth of $2,500,000.</DELETED>
<DELETED>    (f) Governance.--</DELETED>
        <DELETED>    (1) Recognition of important role of smaller 
        institutions.--The Corporation shall take all necessary steps 
        to ensure that the governance provisions of the FMIC Mutual 
        Securitization Company reflect the important role in the 
        mortgage market played by the small and mid-sized member 
        participants of the FMIC Mutual Securitization 
        Company.</DELETED>
        <DELETED>    (2) Establishment of position of director.--There 
        is established the position of the Director of the FMIC Mutual 
        Securitization Company who shall be the head of the 
        Company.</DELETED>
        <DELETED>    (3) Board of directors.--</DELETED>
                <DELETED>    (A) In general.--The management of the 
                FMIC Mutual Securitization Company shall be vested in a 
                Board of Directors (hereafter referred to as the 
                ``Mutual Board''), which shall include representatives 
                of member participants of the Company, including 
                representatives of--</DELETED>
                        <DELETED>    (i) mortgage bankers;</DELETED>
                        <DELETED>    (ii) community banks; 
                        and</DELETED>
                        <DELETED>    (iii) credit unions.</DELETED>
                <DELETED>    (B) Initial appointment.--The Corporation 
                shall make initial appointments of the members of the 
                Mutual Board. Each such initial appointment shall be 
                for a term 1 year.</DELETED>
                <DELETED>    (C) Appointments.--Following the initial 
                1-year appointment of the members of the Mutual Board, 
                member participants in the FMIC Mutual Securitization 
                Company shall elect the members of the Mutual Board 
                from within the membership of the Company.</DELETED>
                <DELETED>    (D) Administration.--The Mutual Board 
                shall administer the affairs of the FMIC Mutual 
                Securitization Company fairly and impartially and 
                without discrimination.</DELETED>
        <DELETED>    (4) No preferences for size.--Member participants 
        of the FMIC Mutual Securitization Company shall have equal 
        voting rights on any matters before the Company, regardless of 
        the size of the individual member participant.</DELETED>
<DELETED>    (g) Approval of Member Participants.--</DELETED>
        <DELETED>    (1) In general.--The Mutual Board shall develop 
        standards and procedures to approve the application of member 
        participants in the FMIC Mutual Securitization 
        Company.</DELETED>
        <DELETED>    (2) Content of standards.--The standards required 
        under paragraph (1) shall include standards relating to the 
        safety and soundness of prospective member participants, 
        including standards regarding the underwriting practices of 
        such prospective members.</DELETED>
        <DELETED>    (3) Coordination with other regulators.--
        </DELETED>
                <DELETED>    (A) Consultation.--In approving any 
                prospective member to become a member participant in 
                the FMIC Mutual Securitization Company, the Mutual 
                Board may consult and share information with the 
                primary prudential regulator of the prospective 
                member.</DELETED>
                <DELETED>    (B) Privilege preserved.--Information 
                shared pursuant to subparagraph (A) shall not be 
                construed as waiving, destroying, or otherwise 
                affecting any privilege or confidential status that a 
                prospective member may claim with respect to such 
                information under Federal or State law as to any person 
                or entity other than the Mutual Board or its primary 
                prudential regulator.</DELETED>
                <DELETED>    (C) Rule of construction.--No provision of 
                this subsection may be construed as implying or 
                establishing that--</DELETED>
                        <DELETED>    (i) any prospective member waives 
                        any privilege applicable to information that is 
                        shared or transferred under any circumstance to 
                        which this subsection does not apply; 
                        or</DELETED>
                        <DELETED>    (ii) any prospective would waive 
                        any privilege applicable to any information by 
                        submitting the information directly to its 
                        primary prudential regulator, but for this 
                        subsection.</DELETED>
<DELETED>    (h) Funding Authority.--</DELETED>
        <DELETED>    (1) Authority to establish membership fees.--The 
        Mutual Board shall have the authority to charge and collect 
        fees, and may in its discretion increase or decrease such fee, 
        on its member participants for membership in the FMIC Mutual 
        Securitization Company, including to cover the costs of--
        </DELETED>
                <DELETED>    (A) the initial capitalization of the 
                Company;</DELETED>
                <DELETED>    (B) the purchase of any function, 
                activity, infrastructure, property, including 
                intellectual property, platform, or any other object or 
                service from an enterprise pursuant to subsection (c); 
                and</DELETED>
                <DELETED>    (C) the continued operation of the 
                Company.</DELETED>
        <DELETED>    (2) Limitation.--The fees authorized under 
        paragraph (1)--</DELETED>
                <DELETED>    (A) shall be equitably assessed; 
                and</DELETED>
                <DELETED>    (B) may be based on the volume of eligible 
                mortgages that the member participant sells to the FMIC 
                Mutual Securitization Company.</DELETED>
<DELETED>    (i) Coordination of Servicer Approval.--The Mutual Board 
may coordinate with the Corporation to facilitate the application 
process for its member participants to become approved servicers of the 
Corporation pursuant to section 212.</DELETED>

<DELETED>SEC. 216. ADDITIONAL AUTHORITY RELATING TO OVERSIGHT OF MARKET 
              PARTICIPANTS.</DELETED>

<DELETED>    In carrying out its authorities under this subtitle, the 
Corporation may, in its discretion, develop, publish, and adopt such 
other additional standards or requirements as the Corporation 
determines necessary to ensure--</DELETED>
        <DELETED>    (1) competition among approved private mortgage 
        insurers, servicers, issuers, and bond guarantors and other 
        market participants in the secondary mortgage market;</DELETED>
        <DELETED>    (2) competitive pricing among approved private 
        mortgage insurers, servicers, issuers, and bond guarantors and 
        other market participants in the secondary mortgage market; 
        and</DELETED>
        <DELETED>    (3) liquidity, transparency, and access to 
        mortgage credit in the secondary mortgage market.</DELETED>

<DELETED>SEC. 217. CIVIL MONEY PENALTIES.</DELETED>

<DELETED>    (a) Authority.--In addition to any suspension or 
revocation of the approved status of an approved private mortgage 
insurer, servicer, issuer, or bond guarantor under this subtitle, the 
Corporation may, in its discretion, impose a civil money penalty on any 
such approved private mortgage insurer, servicer, issuer, or bond 
guarantor that has failed to comply with or otherwise violates--
</DELETED>
        <DELETED>    (1) any standard adopted by the Corporation 
        pursuant to this subtitle; or</DELETED>
        <DELETED>    (2) any other requirement or provision of this 
        Act, or any order, condition, rule, or regulation issued 
        pursuant to this Act, applicable to such private mortgage 
        insurer, servicer, issuer, or bond guarantor, as the case may 
        be.</DELETED>
<DELETED>    (b) Procedures.--</DELETED>
        <DELETED>    (1) Establishment.--The Corporation shall 
        establish standards and procedures governing the imposition of 
        civil money penalties under this section. Such standards and 
        procedures--</DELETED>
                <DELETED>    (A) shall provide for the Corporation to 
                notify the approved private mortgage insurer, servicer, 
                issuer, or bond guarantor, as the case may be, in 
                writing of the determination of the Corporation to 
                impose the penalty, which shall be made on the 
                record;</DELETED>
                <DELETED>    (B) shall provide for the imposition of a 
                penalty only after the approved private mortgage 
                insurer, servicer, issuer, or bond guarantor, as the 
                case may be, has been given an opportunity for a 
                hearing on the record; and</DELETED>
                <DELETED>    (C) may provide for review by the 
                Corporation of any determination or order, or 
                interlocutory ruling, arising from a hearing.</DELETED>
        <DELETED>    (2) Factors determining amount of penalty.--In 
        determining the amount of a penalty under this section, the 
        Corporation shall give consideration to factors including--
        </DELETED>
                <DELETED>    (A) the gravity of the offense;</DELETED>
                <DELETED>    (B) any history of prior 
                offenses;</DELETED>
                <DELETED>    (C) ability to pay the penalty;</DELETED>
                <DELETED>    (D) injury to the public;</DELETED>
                <DELETED>    (E) benefits received;</DELETED>
                <DELETED>    (F) deterrence of future violations; 
                and</DELETED>
                <DELETED>    (G) such other factors as the Corporation 
                may determine, by regulation, to be 
                appropriate.</DELETED>
<DELETED>    (c) Action To Collect Penalty.--If the approved private 
mortgage insurer, servicer, issuer, or bond guarantor, as the case may 
be, fails to comply with an order by the Corporation imposing a civil 
money penalty under this section, the Corporation may bring an action 
in the United States District Court for the District of Columbia to 
obtain a monetary judgment against the approved private mortgage 
insurer, servicer, issuer, or bond guarantor, as the case may be, and 
such other relief as may be available. The monetary judgment may, in 
the court's discretion, include the attorneys' fees and other expenses 
incurred by the United States in connection with the action. In an 
action under this subsection, the validity and appropriateness of the 
order imposing the penalty shall not be subject to review.</DELETED>
<DELETED>    (d) Settlements.--The Corporation may compromise, modify, 
or remit any civil money penalty which may be, or has been, imposed 
under this section.</DELETED>
<DELETED>    (e) Deposit of Penalties.--The Corporation shall use any 
civil money penalties collected under this section to help fund the 
Mortgage Insurance Fund established under section 203.</DELETED>

<DELETED>SEC. 218. PROTECTION OF PRIVILEGE AND OTHER MATTERS RELATING 
              TO DISCLOSURES BY MARKET PARTICIPANTS.</DELETED>

<DELETED>    (a) Information Sharing and Maintenance of Privilege.--The 
Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended--
</DELETED>
        <DELETED>    (1) in section 11(t)(2)(A) (12 U.S.C. 
        1821(t)(2)(A)), by inserting after clause (v) the 
        following:</DELETED>
                        <DELETED>    ``(vii) The Federal Mortgage 
                        Insurance Corporation.''; and</DELETED>
        <DELETED>    (2) in section 18(x) (12 U.S.C. 1828(x))--
        </DELETED>
                <DELETED>    (A) by inserting ``the Federal Mortgage 
                Insurance Corporation,'' before ``any Federal banking 
                agency'' each place that term appears; and</DELETED>
                <DELETED>    (B) by striking ``such agency'' each place 
                that term appears and inserting ``Corporation, 
                agency''.</DELETED>
<DELETED>    (b) Permissible Consultation With Federal Banking 
Agencies.--</DELETED>
        <DELETED>    (1) In general.--Pursuant to its authority under 
        section 103(c), to facilitate the consultive process, the 
        Corporation may share information with the Federal banking 
        agencies, or any individual Federal banking agency, or any 
        State bank supervisor, or foreign banking authority, on a one-
        time, regular, or periodic basis as determined by the 
        Corporation regarding the capital, asset and liabilities, 
        financial condition, risk management practices or any other 
        practice of any approved private mortgage insurer, servicer, 
        issuer, or bond guarantor.</DELETED>
        <DELETED>    (2) Privilege preserved.--Information shared by 
        the Corporation pursuant to paragraph (1) shall not be 
        construed as waiving, destroying, or otherwise affecting any 
        privilege or confidential status that any approved private 
        mortgage insurer, servicer, issuer, or bond guarantor or any 
        other person may claim with respect to such information under 
        Federal or State law as to any person or entity other than such 
        agencies, agency, supervisor, or authority.</DELETED>
        <DELETED>    (3) Rule of construction.--No provision of this 
        subsection may be construed as implying or establishing that--
        </DELETED>
                <DELETED>    (A) any person waives any privilege 
                applicable to information that is shared or transferred 
                under any circumstance to which this subsection does 
                not apply; or</DELETED>
                <DELETED>    (B) any person would waive any privilege 
                applicable to any information by submitting the 
                information directly to the Federal banking agencies, 
                or any individual Federal banking agency, or any State 
                bank supervisor, or foreign banking authority, but for 
                this subsection.</DELETED>

    <DELETED>Subtitle C--Transparency in Market Operations</DELETED>

<DELETED>SEC. 221. REVIEW OF LOAN DOCUMENTS; DISCLOSURES.</DELETED>

<DELETED>    (a) In General.--The Corporation shall, by rule--
</DELETED>
        <DELETED>    (1) require that approved issuers--</DELETED>
                <DELETED>    (A) grant access to private market 
                investors seeking to take the first loss position in a 
                covered security to all--</DELETED>
                        <DELETED>    (i) documents relating to eligible 
                        mortgage loans collateralizing that covered 
                        security; and</DELETED>
                        <DELETED>    (ii) servicing reports of the 
                        approved servicer relating to such mortgages; 
                        and</DELETED>
                <DELETED>    (B) disclose any other material 
                information that a reasonable investor would want to 
                know, and make no material omission of such 
                information, relating to eligible mortgage loans 
                collateralizing a covered security; and</DELETED>
        <DELETED>    (2) establish the timing, frequency, and manner in 
        which such access and disclosures are made.</DELETED>
<DELETED>    (b) Privacy Protections.--In prescribing the rules 
required under this section, the Corporation shall take into 
consideration issues of consumer privacy and all statutes, rules, and 
regulations related to privacy of consumer credit information and 
personally identifiable information. Such rules shall expressly 
prohibit the identification of specific borrowers.</DELETED>

<DELETED>SEC. 222. INVESTOR IMMUNITY.</DELETED>

<DELETED>    Any private market investor that has taken the first loss 
position in a covered security or that has otherwise invested in any 
covered security insured under this Act shall have immunity and 
protection from civil liability under Federal and State law, and no 
cause of action may be brought under Federal or State law against such 
investor, with respect to whether or not eligible mortgages that 
collateralize a covered security insured under this Act have complied 
with the requirements of this Act, including, but not limited to, with 
respect to any underwriting requirements applicable to such mortgage, 
any representations or warranties made by an approved issuer or an 
approved bond guarantor with respect to such mortgages, or whether or 
not the terms of any uniform securitization agreement have been 
met.</DELETED>

<DELETED>SEC. 223. UNIFORM SECURITIZATION AGREEMENTS.</DELETED>

<DELETED>    (a) In General.--The Corporation shall develop, adopt, and 
publish standard uniform securitization agreements for covered 
securities which are insured under this Act.</DELETED>
<DELETED>    (b) Required Content.--The standard uniform securitization 
agreements required to be developed under subsection (a) shall include 
terms relating to--</DELETED>
        <DELETED>    (1) pooling and servicing, including the 
        development of uniform standards and practices--</DELETED>
                <DELETED>    (A) regarding remittance schedules and 
                payment delays; and</DELETED>
                <DELETED>    (B) permitting the transfer of servicing 
                rights, if such transfer is determined to be in the 
                best financial interest of the investor, as such 
                interest is calculated on a net present value 
                basis;</DELETED>
        <DELETED>    (2) representations and warranties, including 
        representations and warranties as to compliance or conformity 
        with the requirements of this Act;</DELETED>
        <DELETED>    (3) indemnification and remedies, including for 
        the restitution or indemnification of the Corporation with 
        respect to early term delinquencies of eligible mortgages 
        collateralizing a covered security;</DELETED>
        <DELETED>    (4) the qualification, responsibilities, and 
        duties of trustees; and</DELETED>
        <DELETED>    (5) any other terms or standards the Corporation 
        determines necessary or appropriate.</DELETED>
<DELETED>    (c) Defining Representation and Warranty Violations.--In 
developing the uniform securitization agreements required under 
subsection (a), the Corporation shall also develop, adopt, and publish 
clear and uniform standards that define and illustrate what actions, or 
omissions to act, comprise a violation of the representations and 
warranties clauses that are made a part of such agreements.</DELETED>
<DELETED>    (d) Consultation.--The Corporation shall work with 
industry groups, including servicers, originators, issuers, and 
mortgage investors to develop the uniform securitization agreements 
required under subsection (a).</DELETED>

<DELETED>SEC. 224. UNIFORM MORTGAGE DATABASE.</DELETED>

<DELETED>    (a) Uniform Mortgage Database.--The Corporation shall 
establish, operate, and maintain a database for the collection, public 
use, and dissemination of uniform loan level information on eligible 
mortgages relating to--</DELETED>
        <DELETED>    (1) loan characteristics;</DELETED>
        <DELETED>    (2) borrower information;</DELETED>
        <DELETED>    (3) the property securing the eligible 
        mortgages;</DELETED>
        <DELETED>    (4) loan data required at the time of application 
        for insurance from the Corporation under this title;</DELETED>
        <DELETED>    (5) the quality and consistency of appraisal and 
        collateral data on eligible mortgages;</DELETED>
        <DELETED>    (6) industry-wide servicing data standards; 
        and</DELETED>
        <DELETED>    (7) such other data, datasets, information, facts, 
        or measurements as the Corporation determines appropriate to 
        improve and enhance loan quality and operational efficiencies 
        within the secondary mortgage market.</DELETED>
<DELETED>    (b) Considerations.--In establishing the database required 
under subsection (a), the Corporation shall take into consideration, 
build upon, and adopt to the extent the Corporation determines 
appropriate, the existing data standards set forth under the Uniform 
Mortgage Data Program initiative established by the Federal Housing 
Finance Agency.</DELETED>
<DELETED>    (c) Regulations.--The Corporation shall, by regulation--
</DELETED>
        <DELETED>    (1) establish the manner and form by which any 
        loan level information collected under subsection (a) may be 
        accessed by the public, including whether or not to establish a 
        fee for such access;</DELETED>
        <DELETED>    (2) require that such loan level information be 
        made available to the public in a uniform manner, in a form 
        designed for ease and speed of access, ease and speed of 
        downloading, and ease and speed of use; and</DELETED>
        <DELETED>    (3) ensure the protection of any personally 
        identifiable information contained in any information, or mix 
        of information, collected and made available for public 
        access.</DELETED>
<DELETED>    (d) Monthly Update.--The database required under 
subsection (a) shall be updated not less frequently than once a 
month.</DELETED>

<DELETED>SEC. 225. ELECTRONIC REGISTRATION OF ELIGIBLE 
              MORTGAGES.</DELETED>

<DELETED>    (a) Establishment of Electronic Registration System.--The 
Corporation shall establish, operate, and maintain an electronic 
registry system for eligible mortgages that collateralize a covered 
security insured under this Act in order to automate, centralize, 
standardize, and improve the process of tracking changes in servicing 
rights and beneficial ownership interests in such eligible 
mortgages.</DELETED>
<DELETED>    (b) Considerations.--In establishing the electronic 
registry system required under subsection (a), the Corporation shall 
take into consideration, build upon, and adopt to the extent the 
Corporation determines appropriate, any existing efforts of the Federal 
Housing Finance Agency or expertise among the private sector to develop 
a sound, efficient system for document custody and electronic 
registration of mortgages, notes, titles, and liens.</DELETED>

             <DELETED>Subtitle D--FMIC Structure</DELETED>

<DELETED>SEC. 231. OFFICE OF UNDERWRITING.</DELETED>

<DELETED>    (a) Establishment.--There is established within the 
Federal Mortgage Insurance Corporation an Office of Underwriting which 
shall be headed by the Deputy Director of Underwriting, who shall be 
appointed by the Board of Directors.</DELETED>
<DELETED>    (b) Responsibilities.--The Office of Underwriting shall 
ensure, through oversight, analysis, and examination, that eligible 
mortgages that collateralize a covered security insured under this Act 
comply with the requirements of this Act, including with respect to--
</DELETED>
        <DELETED>    (1) the submission of complete and accurate loan 
        data on eligible mortgages;</DELETED>
        <DELETED>    (2) the identification of ineligible mortgage 
        loans;</DELETED>
        <DELETED>    (3) assisting lenders with originating high-
        quality, lower-risk eligible mortgages; and</DELETED>
        <DELETED>    (4) any other activity that the Director 
        determines appropriate.</DELETED>

<DELETED>SEC. 232. OFFICE OF SECURITIZATION.</DELETED>

<DELETED>    (a) Establishment.--There is established within the 
Federal Mortgage Insurance Corporation an Office of Securitization 
which shall be headed by the Deputy Director of Securitization, who 
shall be appointed by the Board of Directors.</DELETED>
<DELETED>    (b) Responsibilities.--</DELETED>
        <DELETED>    (1) In general.--The Office of Securitization 
        shall--</DELETED>
                <DELETED>    (A) oversee and supervise the common 
                securitization platform developed by the business 
                entity announced by the Federal Housing Finance Agency 
                and established by the enterprises, including by 
                requiring that the platform have system capabilities to 
                permit the issuance of multi-lender covered 
                securities;</DELETED>
                <DELETED>    (B) ensure that credit unions, community 
                and mid-size banks, and small non-depository lenders 
                have equitable access to any such platform, including 
                through the development and facilitation of options for 
                multi-lender pools of eligible mortgages to be 
                securitized and issued as covered securities through 
                such platform; and</DELETED>
                <DELETED>    (C) coordinate and consult with the 
                Federal Home Loan Bank System to establish a 
                securitization platform that addresses the needs of its 
                members.</DELETED>
        <DELETED>    (2) Rules for use of common securitization 
        platform.--</DELETED>
                <DELETED>    (A) In general.--The Corporation, acting 
                through the Office of Securitization, may promulgate 
                rules--</DELETED>
                        <DELETED>    (i) regarding the use of the 
                        common securitization platform described under 
                        paragraph (1)(A); and</DELETED>
                        <DELETED>    (ii) to permit securities other 
                        than covered securities to be issued through 
                        such platform for reasonable 
                        compensation.</DELETED>
                <DELETED>    (B) Content of rules.--Any rule that may 
                be promulgated under subparagraph (A) may include a 
                requirement that any security to be issued through the 
                common securitization platform be subject to a uniform 
                securitization agreement developed under section 
                223.</DELETED>
<DELETED>    (c) Establishment of Database To Provide Notice to 
Different Classes of Lien Holders.--The Office of Securitization shall 
establish, operate, and maintain a database that--</DELETED>
        <DELETED>    (1) can be accessed by any holder of a lien on an 
        eligible mortgage;</DELETED>
        <DELETED>    (2) identifies and tracks if a junior lien or any 
        other subordinate lien has been issued on the property securing 
        an eligible mortgage;</DELETED>
        <DELETED>    (3) notifies, to the extent feasible, any senior 
        or first lien holder of the existence of such junior or 
        subordinate lien; and</DELETED>
        <DELETED>    (4) informs--</DELETED>
                <DELETED>    (A) the senior or first lien holder of the 
                monthly performance of the junior or subordinate lien; 
                and</DELETED>
                <DELETED>    (B) the junior or subordinate lien holder 
                of the monthly performance of the senior or first 
                lien.</DELETED>

<DELETED>SEC. 233. OFFICE OF FEDERAL HOME LOAN BANK 
              SUPERVISION.</DELETED>

<DELETED>    (a) Establishment.--There is established within the 
Federal Mortgage Insurance Corporation an Office of Federal Home Loan 
Bank Supervision which shall be headed by the Deputy Director of 
Federal Home Loan Bank Supervision, who shall be appointed by the Board 
of Directors.</DELETED>
<DELETED>    (b) Responsibilities.--The Office of Federal Home Loan 
Bank Supervision shall--</DELETED>
        <DELETED>    (1) oversee, coordinate, and supervise the Federal 
        Home Loan Banks and the Federal Home Loan Bank System, 
        including the transition of all activities transferred to the 
        Corporation pursuant to section 301; and</DELETED>
        <DELETED>    (2) supervise any authorized subsidiary of one or 
        more Federal Home Loan Banks that is approved as an approved 
        issuer pursuant to section 213(b)(2)(A)(ii), including with 
        respect to the initial capitalization of any such 
        subsidiary.</DELETED>

<DELETED>TITLE III--TRANSFER OF POWERS, PERSONNEL, AND PROPERTY TO FMIC 
                          FROM FHFA</DELETED>

<DELETED>SEC. 301. POWERS AND DUTIES TRANSFERRED.</DELETED>

<DELETED>    (a) Federal Home Loan Bank Functions Transferred.--
</DELETED>
        <DELETED>    (1) Transfer of functions.--There are transferred 
        to the Corporation all functions of the Federal Housing Finance 
        Agency and the Director of the Federal Housing Finance Agency 
        relating to--</DELETED>
                <DELETED>    (A) the supervision of the Federal Home 
                Loan Banks and the Federal Home Loan Bank System; 
                and</DELETED>
                <DELETED>    (B) all rulemaking authority of the 
                Federal Housing Finance Agency and the Director of the 
                Federal Housing Finance Agency relating to the Federal 
                Home Loan Banks and the Federal Home Loan Bank 
                System.</DELETED>
        <DELETED>    (2) Powers, authorities, rights, and duties.--The 
        Corporation shall succeed to all powers, authorities, rights, 
        and duties that were vested in the Federal Housing Finance 
        Agency and the Director of the Federal Housing Finance Agency, 
        including all conservatorship or receivership authorities, on 
        the day before the transfer date in connection with the 
        functions and authorities transferred under paragraph 
        (1).</DELETED>
        <DELETED>    (3) Effective date.--The transfer of functions 
        under this paragraph shall take effect on the transfer 
        date.</DELETED>
<DELETED>    (b) Continuation and Coordination of Certain Actions.--
</DELETED>
        <DELETED>    (1) In general.--All regulations, orders, 
        determinations, and resolutions described under paragraph (2) 
        shall remain in effect according to the terms of such 
        regulations, orders, determinations, and resolutions, and shall 
        be enforceable by or against the Corporation until modified, 
        terminated, set aside, or superseded in accordance with 
        applicable law by the Corporation, any court of competent 
        jurisdiction, or operation of law.</DELETED>
        <DELETED>    (2) Applicability.--A regulation, order, 
        determination, or resolution is described under this subsection 
        if it--</DELETED>
                <DELETED>    (A) was issued, made, prescribed, or 
                allowed to become effective by--</DELETED>
                        <DELETED>    (i) the Federal Housing Finance 
                        Agency; or</DELETED>
                        <DELETED>    (ii) a court of competent 
                        jurisdiction, and relates to functions 
                        transferred by this Act;</DELETED>
                <DELETED>    (B) relates to the performance of 
                functions that are transferred by this section; 
                and</DELETED>
                <DELETED>    (C) is in effect on the transfer 
                date.</DELETED>
<DELETED>    (c) Disposition of Affairs.--During the period preceding 
the transfer date, the Director of the Federal Housing Finance Agency, 
for the purpose of winding up the affairs of the Federal Housing 
Finance Agency in connection with the performance of functions that are 
transferred by this section--</DELETED>
        <DELETED>    (1) shall manage the employees of such Agency and 
        provide for the payment of the compensation and benefits of any 
        such employees which accrue before the transfer date; 
        and</DELETED>
        <DELETED>    (2) may take any other action necessary for the 
        purpose of winding up the affairs of the Office.</DELETED>
<DELETED>    (d) Use of Property and Services.--</DELETED>
        <DELETED>    (1) Property.--The Corporation may use the 
        property and services of the Federal Housing Finance Agency to 
        perform functions which have been transferred to the 
        Corporation until such time as the Agency is abolished under 
        section 303 to facilitate the orderly transfer of functions 
        transferred under this section, any other provision of this 
        Act, or any amendment made by this Act to any other provision 
        of law.</DELETED>
        <DELETED>    (2) Agency services.--Any agency, department, or 
        other instrumentality of the United States, and any successor 
        to any such agency, department, or instrumentality, that was 
        providing supporting services to the Agency before the transfer 
        date in connection with functions that are transferred to the 
        Corporation shall--</DELETED>
                <DELETED>    (A) continue to provide such services, on 
                a reimbursable basis, until the transfer of such 
                functions is complete; and</DELETED>
                <DELETED>    (B) consult with any such agency to 
                coordinate and facilitate a prompt and reasonable 
                transition.</DELETED>
<DELETED>    (e) Continuation of Services.--The Corporation may use the 
services of employees and other personnel of the Federal Housing 
Finance Agency, on a reimbursable basis, to perform functions which 
have been transferred to the Corporation for such time as is reasonable 
to facilitate the orderly transfer of functions pursuant to this 
section, any other provision of this Act, or any amendment made by this 
Act to any other provision of law.</DELETED>
<DELETED>    (f) Savings Provisions.--</DELETED>
        <DELETED>    (1) Existing rights, duties, and obligations not 
        affected.--Subsection (a) and section 303 shall not affect the 
        validity of any right, duty, or obligation of the United 
        States, the Director of the Federal Housing Finance Agency, the 
        Federal Housing Finance Agency, or any other person, that 
        existed on the day before transfer date.</DELETED>
        <DELETED>    (2) Continuation of suits.--No action or other 
        proceeding commenced by or against the Director of the Federal 
        Housing Finance Agency in connection with the functions that 
        are transferred to the Corporation under this section shall 
        abate by reason of the enactment of this Act, except that the 
        Corporation shall be substituted for the Director of the 
        Federal Housing Finance Agency as a party to any such action or 
        proceeding.</DELETED>
<DELETED>    (g) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Federal home loan bank act.--The Federal Home 
        Loan Bank Act (12 U.S.C. 1421 et seq.) is amended--</DELETED>
                <DELETED>    (A) by striking ``the Director'' and 
                inserting ``the Corporation'' each place that term 
                appears;</DELETED>
                <DELETED>    (B) by striking ``The Director'' and 
                inserting ``The Corporation'' each place that term 
                appears;</DELETED>
                <DELETED>    (C) by striking ``Chairman of the Director 
                of Governors'' and inserting ``Chairman of the Board of 
                Governors'' each place that term appears;</DELETED>
                <DELETED>    (D) by striking ``the Agency'' and 
                inserting ``the Corporation'' each place that term 
                appears;</DELETED>
                <DELETED>    (E) in section 2, by striking paragraphs 
                (11) and (12) and inserting the following:</DELETED>
        <DELETED>    ``(11) Corporation.--The term `Corporation' means 
        the Federal Mortgage Insurance Corporation established under 
        title I of the Housing Finance Reform and Taxpayer Protection 
        Act of 2013.''; and</DELETED>
                <DELETED>    (F) in section 11(l)(5), in the header to 
                such paragraph, by striking ``of the 
                director''.</DELETED>
        <DELETED>    (2) Federal housing enterprises financial safety 
        and soundness act.--Section 1316 of the Federal Housing 
        Enterprises Financial Safety and Soundness Act of 1992 (12 
        U.S.C. 4516) is amended--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) in the matter preceding 
                        paragraph (1), by striking ``the regulated 
                        entities'' and inserting ``each enterprise''; 
                        and</DELETED>
                        <DELETED>    (ii) in paragraph (1), by striking 
                        ``and under section 20 of the Federal Home Loan 
                        Bank Act'';</DELETED>
                <DELETED>    (B) in subsection (b), by striking 
                paragraph (2);</DELETED>
                <DELETED>    (C) in subsection (c)--</DELETED>
                        <DELETED>    (i) by striking ``any regulated 
                        entity'' and inserting ``any 
                        enterprise'';</DELETED>
                        <DELETED>    (ii) by striking ``the regulated 
                        entity'' and inserting ``the 
                        enterprise'';</DELETED>
                        <DELETED>    (iii) by striking ``a regulated 
                        entity'' and inserting ``an enterprise'' each 
                        place that term appears;</DELETED>
                        <DELETED>    (iv) by striking ``such regulated 
                        entity'' and inserting ``such enterprise'' each 
                        place that term appears; and</DELETED>
                        <DELETED>    (v) by striking ``such entity'' 
                        and inserting ``such enterprise''; 
                        and</DELETED>
                <DELETED>    (D) in subsection (e)--</DELETED>
                        <DELETED>    (i) by striking ``each regulated 
                        entity'' and inserting ``each enterprise''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking ``such regulated 
                        entity'' and inserting ``such 
                        enterprise''.</DELETED>
        <DELETED>    (3) Right to financial privacy act of 1978.--
        Section 1113(o) of the Right to Financial Privacy Act of 1978 
        (12 U.S.C. 3413(o)) is amended--</DELETED>
                <DELETED>    (A) in the heading to the subsection, by 
                ``Federal Housing Finance Agency'' and inserting 
                ``Federal Mortgage Insurance Corporation'';</DELETED>
                <DELETED>    (B) by striking ``Federal Housing Finance 
                Agency'' and inserting ``Federal Mortgage Insurance 
                Corporation''; and</DELETED>
                <DELETED>    (C) by striking ``Federal Housing Finance 
                Agency's'' and inserting ``Federal Mortgage Insurance 
                Corporation's''.</DELETED>
        <DELETED>    (4) Effective date.--The amendments made by this 
        subsection shall take effect on the transfer date.</DELETED>

<DELETED>SEC. 302. TRANSFER AND RIGHTS OF EMPLOYEES OF THE 
              FHFA.</DELETED>

<DELETED>    (a) Transfer.--Each employee of the Federal Housing 
Finance Agency that is employed in connection with functions that are 
transferred to the Corporation under section 301 shall be transferred 
to the Corporation for employment, not later than the transfer date, 
and such transfer shall be deemed a transfer of function for purposes 
of section 3503 of title 5, United States Code.</DELETED>
<DELETED>    (b) Status of Employees.--The transfer of functions under 
this title, and the abolishment of the Federal Housing Finance Agency 
under section 303, may not be construed to affect the status of any 
transferred employee as an employee of an agency of the United States 
for purposes of any other provision of law.</DELETED>
<DELETED>    (c) Guaranteed Positions.--Each employee transferred under 
subsection (a) shall be guaranteed a position with the same status, 
tenure, grade, and pay as that held on the day immediately preceding 
the transfer.</DELETED>
<DELETED>    (d) Appointment Authority for Excepted Employees.--
</DELETED>
        <DELETED>    (1) In general.--In the case of an employee 
        occupying a position in the excepted service, any appointment 
        authority established under law or by regulations of the Office 
        of Personnel Management for filling such position shall be 
        transferred, subject to paragraph (2).</DELETED>
        <DELETED>    (2) Decline of transfer.--The Corporation may 
        decline a transfer of authority under paragraph (1), to the 
        extent that such authority relates to a position excepted from 
        the competitive service because of its confidential, 
        policymaking, policy-determining, or policy-advocating 
        character.</DELETED>
<DELETED>    (e) Reorganization.--If the Corporation determines, after 
the end of the 1-year period beginning on the transfer date, that a 
reorganization of the combined workforce is required, that 
reorganization shall be deemed a major reorganization for purposes of 
affording affected employee retirement under section 8336(d)(2) or 
8414(b)(1)(B) of title 5, United States Code.</DELETED>
<DELETED>    (f) Employee Benefit Programs.--</DELETED>
        <DELETED>    (1) In general.--Any employee of the Federal 
        Housing Finance Agency accepting employment with the 
        Corporation as a result of a transfer under subsection (a) may 
        retain, for 12 months after the date on which such transfer 
        occurs, membership in any employee benefit program of the 
        Agency or the Corporation, as applicable, including insurance, 
        to which such employee belongs on the transfer date if--
        </DELETED>
                <DELETED>    (A) the employee does not elect to give up 
                the benefit or membership in the program; and</DELETED>
                <DELETED>    (B) the benefit or program is continued by 
                the Corporation.</DELETED>
        <DELETED>    (2) Cost differential.--</DELETED>
                <DELETED>    (A) In general.--The difference in the 
                costs between the benefits which would have been 
                provided by the Federal Housing Finance Agency and 
                those provided by this section shall be paid by the 
                Corporation.</DELETED>
                <DELETED>    (B) Health insurance.--If any employee 
                elects to give up membership in a health insurance 
                program or the health insurance program is not 
                continued by the Corporation, the employee shall be 
                permitted to select an alternate Federal health 
                insurance program not later than 30 days after the date 
                of such election or notice, without regard to any other 
                regularly scheduled open season.</DELETED>

<DELETED>SEC. 303. ABOLISHMENT OF FHFA.</DELETED>

<DELETED>    Effective upon the FMIC certification date, the Federal 
Housing Finance Agency and the position of the Director of the Federal 
Housing Finance Agency are abolished.</DELETED>

<DELETED>SEC. 304. TRANSFER OF PROPERTY AND FACILITIES.</DELETED>

<DELETED>    Effective upon the FMIC certification date all property of 
the Federal Housing Finance Agency shall transfer to the 
Corporation.</DELETED>

<DELETED>SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Effective Date.--The amendments made by this section 
shall take effect on the date of enactment of this Act.</DELETED>
<DELETED>    (b) References in Federal Law.--On and after the date of 
enactment of this Act, any reference in Federal law to the Director of 
the Federal Housing Finance Agency or the Federal Housing Finance 
Agency, in connection with any function of the Director of the Federal 
Housing Finance Agency or the Federal Housing Finance Agency 
transferred under section 301, shall be deemed a reference to the 
Chairperson of the Federal Mortgage Insurance Corporation or the 
Federal Mortgage Insurance Corporation, as appropriate and consistent 
with the amendments made by this Act.</DELETED>
<DELETED>    (c) Title 18, United States Code.--Title 18, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in section 1905, by inserting ``or the Federal 
        Mortgage Insurance Corporation'' after ``Federal Housing 
        Finance Agency'';</DELETED>
        <DELETED>    (2) in section 212(c)(2)--</DELETED>
                <DELETED>    (A) in subparagraph (F), by striking ``; 
                and'' and inserting a semicolon;</DELETED>
                <DELETED>    (B) in subparagraph (G), by striking the 
                period at the end and inserting ``; and''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(H) the Federal Mortgage Insurance 
                Corporation.'';</DELETED>
        <DELETED>    (3) in section 657, by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,'';</DELETED>
        <DELETED>    (4) in section 1006, by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,''; and</DELETED>
        <DELETED>    (5) in section 1014, by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,''.</DELETED>
<DELETED>    (d) Flood Disaster Protection Act of 1973.--Section 
102(b)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(b)(5)) is amended in subsection (b)(5), by inserting ``the 
Federal Mortgage Insurance Corporation,'' after ``Federal Housing 
Finance Agency,''.</DELETED>
<DELETED>    (e) Title 5, United States Code.--Title 5, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in section 5313, by inserting the following 
        new item after the item relating to the Director of the Federal 
        Housing Finance Agency:</DELETED>
        <DELETED>    ``Director of the Federal Mortgage Insurance 
        Corporation.''; and</DELETED>
        <DELETED>    (2) in section 3132(a)(1)(D), by inserting ``the 
        Federal Mortgage Insurance Corporation,'' after ``Federal 
        Housing Finance Agency,''.</DELETED>
<DELETED>    (f) Sarbanes-Oxley Act.--Section 105(b)(5)(B)(ii)(II) of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(B)(ii)(II)) is 
amended by inserting ``or the Chairperson of the Federal Mortgage 
Insurance Corporation'' after ``Director of the Federal Housing Finance 
Agency''.</DELETED>
<DELETED>    (g) Federal Deposit Insurance Act.--The Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 7(a)(2)(A), by inserting ``the 
        Federal Mortgage Insurance Corporation,'' after ``Federal 
        Housing Finance Agency,'' each place that term 
        appears;</DELETED>
        <DELETED>    (2) in section 8(e)(7)(A)(vi), by inserting ``, 
        the Federal Mortgage Insurance Corporation,'' after ``Federal 
        Housing Finance Agency'';</DELETED>
        <DELETED>    (3) in section 11(t)(2)(A), by adding at the end 
        the following:</DELETED>
                        <DELETED>    ``(viii) The Federal Mortgage 
                        Insurance Corporation.''; and</DELETED>
        <DELETED>    (4) in section 33(e), by inserting ``, the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency''.</DELETED>
<DELETED>    (h) Riegle Community Development and Regulatory 
Improvement Act of 1994.--Section 117(e) of the Riegle Community 
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4716(e)) 
is amended by inserting ``the Federal Mortgage Insurance Corporation,'' 
after ``Federal Housing Finance Agency,''.</DELETED>
<DELETED>    (i) MAHRA Act of 1997.--Section 517(b)(4) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended by inserting ``the Federal Mortgage 
Insurance Corporation,'' after ``Federal Housing Finance 
Agency,''.</DELETED>
<DELETED>    (j) Title 44, United States Code.--Section 3502(5) of 
title 44, United States Code, is amended by inserting ``the Federal 
Mortgage Insurance Corporation,'' after ``Federal Housing Finance 
Agency,''.</DELETED>
<DELETED>    (k) Access to Local TV Act of 2000.--Section 
1004(d)(2)(D)(iii) of the Launching Our Communities' Access to Local 
Television Act of 2000 (47 U.S.C. 1103(d)(2)(D)(iii)) is amended by 
inserting ``or the Federal Mortgage Insurance Corporation,'' after 
``Federal Housing Finance Agency''.</DELETED>
<DELETED>    (l) FIRREA.--The Financial Institutions Reform, Recovery, 
and Enhancement Act of 1989 is amended--</DELETED>
        <DELETED>    (1) in section 1216--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) in paragraph (2), by striking 
                        ``; and'' and inserting a semicolon;</DELETED>
                        <DELETED>    (ii) in paragraph (3), by striking 
                        the period and inserting ``; and''; 
                        and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
        <DELETED>    ``(4) the Federal Mortgage Insurance 
        Corporation.''; and</DELETED>
                <DELETED>    (B) in subsection (c), by inserting ``the 
                Federal Mortgage Insurance Corporation,'' before ``and 
                the Federal Housing Finance Agency,'';</DELETED>
        <DELETED>    (2) in section 402(e), by striking ``Federal 
        Housing Finance Agency'' each place that term appears and 
        inserting ``Federal Mortgage Insurance Corporation'';</DELETED>
        <DELETED>    (3) in section 1124, by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,'' each place that term appears; and</DELETED>
        <DELETED>    (4) in section 1125(b), by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,''.</DELETED>
<DELETED>    (m) EESA.--The Emergency Economic Stabilization Act of 
2008 (12 U.S.C. 5201 note) is amended--</DELETED>
        <DELETED>    (1) in section 104(b)--</DELETED>
                <DELETED>    (A) in paragraph (4), by striking ``; 
                and'' and inserting a semicolon;</DELETED>
                <DELETED>    (B) in paragraph (5), by striking the 
                period and inserting ``; and''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(6) the Federal Mortgage Insurance 
        Corporation.''; and</DELETED>
        <DELETED>    (2) in section 109(b), by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,''.</DELETED>
<DELETED>    (n) Dodd-Frank Act.--The Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Public Law 111-203) is amended--</DELETED>
        <DELETED>    (1) in section 342(g)(1)--</DELETED>
                <DELETED>    (A) in subparagraph (H), by striking ``; 
                and'' and inserting a semicolon;</DELETED>
                <DELETED>    (B) in subparagraph (I), by striking the 
                period and inserting ``; and''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(J) the Federal Mortgage Insurance 
                Corporation.'';</DELETED>
        <DELETED>    (2) in section 989E(a)(1), by adding at the end 
        the following:</DELETED>
                <DELETED>    ``(J) The Federal Mortgage Insurance 
                Corporation.''; and</DELETED>
        <DELETED>    (3) in section 1481(b), by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,''.</DELETED>
<DELETED>    (o) Housing and Urban-Rural Recovery Act.--Section 469 of 
the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701p-1) is 
amended, in the first sentence, by inserting ``the Federal Mortgage 
Insurance Corporation,'' after ``Federal Housing Finance 
Agency,''.</DELETED>
<DELETED>    (p) Neighborhood Reinvestment Corporation Act.--Section 
606(c)(3) of the Neighborhood Reinvestment Corporation Act (42 U.S.C. 
8105(c)(3)) is amended by inserting ``, the Federal Mortgage Insurance 
Corporation,'' after ``Federal Housing Finance Agency''.</DELETED>
<DELETED>    (q) Federal Insurance Office Act.--Section 313(r)(4) of 
title 31, United States Code, is amended by inserting ``the Federal 
Mortgage Insurance Corporation,'' after ``Federal Housing Finance 
Agency,''.</DELETED>
<DELETED>    (r) Commodity Exchange Act.--Section 1a(39)(E) of the 
Commodity Exchange Act (7 U.S.C. 1a(39)(E)) is amended--</DELETED>
        <DELETED>    (1) by striking ``a regulated entity'' and 
        inserting ``an enterprise''; and</DELETED>
        <DELETED>    (2) by inserting before the period at the end 
        ``the Federal Mortgage Insurance Corporation in the case of a 
        swap dealer, major swap participant, security-based swap 
        dealer, or major security-based swap participant that is a 
        Federal Home Loan Bank''.</DELETED>
<DELETED>    (s) Truth in Lending Act.--The Truth in Lending Act (15 
U.S.C. 1601 et seq.) is amended--</DELETED>
        <DELETED>    (1) section 129H(b)(4), by inserting ``the Federal 
        Mortgage Insurance Corporation,'' after ``Federal Housing 
        Finance Agency,''; and</DELETED>
        <DELETED>    (2) in section 129E--</DELETED>
                <DELETED>    (A) in subsection (g)(1), by inserting 
                ``the Federal Mortgage Insurance Corporation,'' after 
                ``Federal Housing Finance Agency,''; and</DELETED>
                <DELETED>    (B) in subsection (h), by inserting ``the 
                Federal Mortgage Insurance Corporation,'' after 
                ``Federal Housing Finance Agency,''.</DELETED>
<DELETED>    (t) FFIEC.--The first sentence of section 1011 of the 
Federal Financial Institutions Examination Council Act of 1978 (12 
U.S.C. 3310) is amended by inserting ``the Federal Mortgage Insurance 
Corporation,'' before ``and the Federal Housing Finance 
Agency''.</DELETED>

<DELETED>TITLE IV--IMPROVING TRANSPARENCY, ACCOUNTABILITY, AND EFFICACY 
                  WITHIN AFFORDABLE HOUSING</DELETED>

<DELETED>SEC. 401. AFFORDABLE HOUSING ALLOCATIONS.</DELETED>

<DELETED>    (a) Fee and Allocation of Amounts.--Subject to subsection 
(b), and in addition to any fees for the provision of insurance 
established in accordance with title II, in each fiscal year the 
Corporation shall--</DELETED>
        <DELETED>    (1) charge and collect a fee in an amount equal to 
        not less than 5 basis points and not more than 10 basis points 
        for each dollar of the outstanding principal balance of 
        eligible mortgages collateralizing covered securities for which 
        insurance is being provided under title II; and</DELETED>
        <DELETED>    (2) allocate or otherwise transfer--</DELETED>
                <DELETED>    (A) 80 percent of such fee amounts to the 
                Secretary of Housing and Urban Development to fund the 
                Housing Trust Fund established under section 1338 of 
                the Federal Housing Enterprises Financial Safety and 
                Soundness Act of 1992 (12 U.S.C. 4568); and</DELETED>
                <DELETED>    (B) 20 percent of such fee amounts to the 
                Secretary of the Treasury to fund 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).</DELETED>
<DELETED>    (b) Suspension of Contributions.--The Corporation may 
temporarily suspend allocations under subsection (a) upon a finding by 
the Corporation that such allocations are contributing, or would 
contribute, to the financial instability of the Mortgage Insurance Fund 
established under section 203.</DELETED>

<DELETED>SEC. 402. HOUSING TRUST FUND.</DELETED>

<DELETED>    Section 1338 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 4568) is amended--
</DELETED>
        <DELETED>    (1) in subsection (a), by striking ``by the 
        enterprises under section 1337'' and inserting ``pursuant to 
        section 401 of the Housing Finance Reform and Taxpayer 
        Protection Act of 2013'';</DELETED>
        <DELETED>    (2) by repealing subsection (b); and</DELETED>
        <DELETED>    (3) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``Except 
                as provided in subsection (b), the'' and inserting 
                ``The'';</DELETED>
                <DELETED>    (B) in paragraph (4)(B), by striking 
                ``other than fiscal year 2009'';</DELETED>
                <DELETED>    (C) in paragraph (7)--</DELETED>
                        <DELETED>    (i) in subparagraph (A), by 
                        striking ``; and'' and inserting a 
                        semicolon;</DELETED>
                        <DELETED>    (ii) in subparagraph (B)(iv)--
                        </DELETED>
                                <DELETED>    (I) by striking ``section 
                                132'' and inserting ``section 1132''; 
                                and</DELETED>
                                <DELETED>    (II) by striking the 
                                period at the end and inserting a 
                                semicolon; and</DELETED>
                        <DELETED>    (iii) by adding at the end the 
                        following:</DELETED>
                <DELETED>    ``(C) grants and loans, including through 
                the use of pilot programs of sufficient scale, to 
                support the research and development of sustainable 
                homeownership and affordable rental programs, provided 
                that such grant or loan amounts are used only for the 
                benefit of families whose income does not exceed 120 
                percent of the area median income as determined by the 
                Secretary, with adjustments for family size; 
                and</DELETED>
                <DELETED>    ``(D) provide limited credit enhancement, 
                and other forms of credit support, for product and 
                services that--</DELETED>
                        <DELETED>    ``(i) will increase the rate of 
                        sustainable homeownership and affordable rental 
                        by individuals or families whose income does 
                        not exceed 120 percent of the area median 
                        income as determined by the Secretary, with 
                        adjustments for family size; and</DELETED>
                        <DELETED>    ``(ii) might not otherwise be 
                        offered or supported by a pilot program of 
                        sufficient scale to determine the viability of 
                        such products and services in the private 
                        market.''; and</DELETED>
                <DELETED>    (D) in paragraph (10)--</DELETED>
                        <DELETED>    (i) by amending subparagraph (A) 
                        to read as follows:</DELETED>
                <DELETED>    ``(A) Ensuring efficient use of grant 
                amounts.--</DELETED>
                        <DELETED>    ``(i) Use for certain eligible 
                        activities.--In each fiscal year, of the 
                        aggregate amount allocated to a State or State 
                        designated entity under this subsection--
                        </DELETED>
                                <DELETED>    ``(I) 35 percent shall be 
                                used for activities under subparagraph 
                                (A) of paragraph (7);</DELETED>
                                <DELETED>    ``(II) 5 percent shall be 
                                used for activities under subparagraph 
                                (B) of paragraph (7); and</DELETED>
                                <DELETED>    ``(III) 60 percent shall 
                                be used for activities under 
                                subparagraphs (C) and (D) of paragraph 
                                (7).</DELETED>
                        <DELETED>    ``(ii) Ensuring benefits for rural 
                        communities.--</DELETED>
                                <DELETED>    ``(I) In general.--In each 
                                fiscal year, of the aggregate amount 
                                allocated to a State or State 
                                designated entity under this 
                                subsection, the State or State 
                                designated entity shall ensure that, at 
                                a minimum, such amounts are distributed 
                                for the benefit of nonentitlement areas 
                                in that State in the same proportion 
                                that the total amount of nonentitlement 
                                areas in that State bears to the total 
                                amount of all areas in that 
                                State.</DELETED>
                                <DELETED>    ``(II) Targeted outreach 
                                to smaller communities.--In carrying 
                                out the requirement under subclause 
                                (I), each State or State designated 
                                entity shall in distributing amounts 
                                allocated to that State or State 
                                designated entity give priority to 
                                nonentitlement areas with a population 
                                of less than 20,000.</DELETED>
                                <DELETED>    ``(III) Definition of 
                                nonentitlement area.--For purposes of 
                                this clause, the term `nonentitlement 
                                area' has the same meaning given that 
                                term under section 102(a)(7) of the 
                                Housing and Community Development Act 
                                of 1974 (42 U.S.C. 5302(a)(7)).''; 
                                and</DELETED>
                        <DELETED>    (ii) by striking subparagraph 
                        (E).</DELETED>

<DELETED>SEC. 403. CAPITAL MAGNET FUND.</DELETED>

<DELETED>    Section 1339 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 4569) is amended--
</DELETED>
        <DELETED>    (1) in subsection (b)(1), by striking ``pursuant 
        to section 1337'' and inserting ``pursuant to section 401 of 
        the Housing Finance Reform and Taxpayer Protection Act of 
        2013''; and</DELETED>
        <DELETED>    (2) in subsection (h), by striking paragraph 
        (7).</DELETED>

<DELETED>SEC. 404. ADDITIONAL TAXPAYER PROTECTIONS.</DELETED>

<DELETED>    (a) Ensuring Benefits Support Citizens and Lawful 
Permanent Residents.--The Secretary of Housing and Urban Development 
and the Secretary of the Treasury, respectively, shall ensure that 
grant amounts allocated to covered grantees, allocated by covered 
grantees to eligible recipients, or allocated to individuals by such 
eligible recipients are used for the benefit of only lawful permanent 
residents and citizens of the United States in carrying out the 
activities of--</DELETED>
        <DELETED>    (1) the Housing Trust Fund; and</DELETED>
        <DELETED>    (2) the Capital Magnet Fund.</DELETED>
<DELETED>    (b) Not To Be Used for Political Activities.--Consistent 
with the existing requirements under sections 1338(c)(10)(D) and 
section 1339(h)(5) of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992, the Secretary of Housing and Urban 
Development and the Secretary of the Treasury, respectively, shall 
ensure that grant amounts allocated by covered grantees to eligible 
recipients or allocated to individuals by such eligible recipients are 
not used for--</DELETED>
        <DELETED>    (1) political activities;</DELETED>
        <DELETED>    (2) advocacy;</DELETED>
        <DELETED>    (3) lobbying, whether directly or through other 
        parties;</DELETED>
        <DELETED>    (4) influencing the selection, nomination, 
        election, or appointment of one or more candidates to any 
        Federal, State or local office;</DELETED>
        <DELETED>    (5) personal counseling services;</DELETED>
        <DELETED>    (6) travel expenses; and</DELETED>
        <DELETED>    (7) preparing or providing advice on tax 
        returns.</DELETED>
<DELETED>    (c) Penalties.--</DELETED>
        <DELETED>    (1) Civil money penalty.--If an eligible recipient 
        or any other individual in receipt of grant amounts described 
        by this section violates any provision of subsection (a) or 
        (b), the Secretary of Housing and Urban Development or the 
        Secretary of the Treasury, as the case may be, may impose a 
        civil penalty on such recipient or individual, as the case may 
        be, of not more than $1,000,000 for each violation.</DELETED>
        <DELETED>    (2) Criminal penalties.--Whoever, being subject to 
        the provisions of subsection (a) or (b), knowingly 
        participates, directly or indirectly, in any manner in conduct 
        that results in a violation of such provisions shall, 
        notwithstanding section 3571 of title 18, United States Code, 
        be fined not more than $1,000,000 for each violation, 
        imprisoned for not more than 5 years, or both.</DELETED>
        <DELETED>    (3) Rule of construction.--The penalties imposed 
        under paragraphs (1) or (2) shall be in addition to any other 
        available civil remedy or any other available criminal penalty 
        and may be imposed whether or not the Secretary of Housing and 
        Urban Development or the Secretary of the Treasury, as the case 
        may be, imposes other administrative sanctions.</DELETED>
<DELETED>    (d) Definition.--As used in this section--</DELETED>
        <DELETED>    (1) the term ``covered grantee'' means--</DELETED>
                <DELETED>    (A) for purposes of the Housing Trust 
                Fund, a State or State designated entity; and</DELETED>
                <DELETED>    (B) for purposes of the Capital Magnet 
                Fund, an eligible grantee as described under section 
                1339(e) of the Federal Housing Enterprises Financial 
                Safety and Soundness Act of 1992;</DELETED>
        <DELETED>    (2) the term ``eligible recipient'' means--
        </DELETED>
                <DELETED>    (A) for purposes of the Housing Trust 
                Fund, a recipient as described under section 1338(c)(9) 
                of the Federal Housing Enterprises Financial Safety and 
                Soundness Act of 1992t; and</DELETED>
                <DELETED>    (B) for purposes of the Capital Magnet 
                Fund, a recipient of assistance from the Capital Magnet 
                Fund;</DELETED>
        <DELETED>    (3) the term ``Capital Magnet Fund'' means 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); and</DELETED>
        <DELETED>    (4) the term ``Housing Trust Fund'' means the 
        Housing Trust Fund established under section 1338 of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992 (12 U.S.C. 4568).</DELETED>

  <DELETED>TITLE V--WIND DOWN OF FANNIE MAE AND FREDDIE MAC</DELETED>

<DELETED>SEC. 501. REPEAL OF GSE CHARTERS.</DELETED>

<DELETED>    (a) Fannie Mae.--Effective on the FMIC certification date, 
the charter of the Federal National Mortgage Association 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--
</DELETED>
        <DELETED>    (1) outstanding debt obligations of the Federal 
        National Mortgage Association, including any--</DELETED>
                <DELETED>    (A) bonds, debentures, notes, or other 
                similar instruments;</DELETED>
                <DELETED>    (B) capital lease obligations; 
                or</DELETED>
                <DELETED>    (C) obligations in respect of letters of 
                credit, bankers' acceptances, or other similar 
                instruments; or</DELETED>
        <DELETED>    (2) mortgage-backed securities guaranteed by the 
        Federal National Mortgage Association.</DELETED>
<DELETED>    (b) Freddie Mac.--Effective on the FMIC certification 
date, the charter of the Federal Home Loan Mortgage Corporation 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--</DELETED>
        <DELETED>    (1) outstanding debt obligations of the Federal 
        Home Loan Mortgage Corporation, including any--</DELETED>
                <DELETED>    (A) bonds, debentures, notes, or other 
                similar instruments;</DELETED>
                <DELETED>    (B) capital lease obligations; 
                or</DELETED>
                <DELETED>    (C) obligations in respect of letters of 
                credit, bankers' acceptances, or other similar 
                instruments; or</DELETED>
        <DELETED>    (2) mortgage-backed securities guaranteed by the 
        Federal Home Loan Mortgage Corporation.</DELETED>
<DELETED>    (c) Existing Guarantee Obligations.--</DELETED>
        <DELETED>    (1) 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 subsections (a) and (b).</DELETED>
        <DELETED>    (2) Continued dividend payments.--Notwithstanding 
        section 502 or any other provision of law, and subject to 
        section 601, provision 2(a) (relating to Dividend Payment Dates 
        and Dividend Periods) and provision 2(c) (relating to Dividend 
        Rates and Dividend Amount) of the Senior Preferred Stock 
        Purchase Agreement, or any provision of any certificate in 
        connection with such Agreement creating or designating the 
        terms, powers, preferences, privileges, limitations, or any 
        other conditions of the Variable Liquidation Preference Senior 
        Preferred Stock of an enterprise issued pursuant to such 
        Agreement--</DELETED>
                <DELETED>    (A) shall not be amended, restated, or 
                otherwise changed to reduce the rate or amount of 
                dividends in effect pursuant to such Agreement as of 
                the Third Amendment to such Agreement dated August 17, 
                2012, except that any amendment to such Agreement to 
                facilitate the sale of assets of the enterprises to 
                facilitate compliance with the provisions of section 
                502(b) shall be permitted; and</DELETED>
                <DELETED>    (B) shall remain in effect until the 
                guarantee obligations described under subsections 
                (a)(2) and (b)(2) are fully extinguished.</DELETED>
        <DELETED>    (3) Applicability.--Notwithstanding section 502, 
        all guarantee fee amounts derived from the single-family 
        mortgage guarantee business of the enterprises in existence as 
        of the FMIC certification date shall be subject to the terms of 
        the Senior Preferred Stock Purchase Agreement.</DELETED>
<DELETED>    (d) Federal Safety and Soundness Act.--</DELETED>
        <DELETED>    (1) In general.--The Federal Housing Enterprises 
        Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et 
        seq.) is amended--</DELETED>
                <DELETED>    (A) in section 1303--</DELETED>
                        <DELETED>    (i) in paragraph (2), by striking 
                        ``'Federal Housing Finance Agency'' and 
                        inserting ``Federal Mortgage Insurance 
                        Corporation'';</DELETED>
                        <DELETED>    (ii) in paragraph (3), by striking 
                        ``means'' and all that follows through the 
                        period at the end, and inserting ``means the 
                        Federal Home Loan Bank Act.'';</DELETED>
                        <DELETED>    (iii) by repealing paragraph (4); 
                        and</DELETED>
                        <DELETED>    (iv) in paragraph (9), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Board of Directors of 
                        the Federal Mortgage Insurance 
                        Corporation'';</DELETED>
                <DELETED>    (B) by repealing section 1313A; 
                and</DELETED>
                <DELETED>    (C) by repealing section 
                1317(d).</DELETED>
        <DELETED>    (2) Effective date.--The amendments made by 
        paragraph (1) shall take effect on the FMIC certification 
        date.</DELETED>

<DELETED>SEC. 502. WIND DOWN.</DELETED>

<DELETED>    (a) Wind Down.--</DELETED>
        <DELETED>    (1) Authority of fhfa.--Beginning on the date of 
        enactment of this Act and ending on the FMIC certification 
        date, the Director of the Federal Housing Finance Agency, in 
        consultation with the Corporation and the Secretary of the 
        Treasury, shall take such action, and may prescribe such 
        regulations and procedures, as may be necessary 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.</DELETED>
        <DELETED>    (2) Limitation.--Notwithstanding any authority 
        granted to the Director of the Federal Housing Finance Agency 
        under paragraph (1), the sale, transfer, exchange, or other 
        disposition of any asset subject to the wind down required 
        under this section shall be prohibited, if the Corporation--
        </DELETED>
                <DELETED>    (A) in its discretion determines that such 
                sale, transfer, exchange, or disposition would 
                materially interfere with the ability of the 
                Corporation to carry out the requirements of this Act; 
                and</DELETED>
                <DELETED>    (B) notifies, in writing, the Director of 
                the Federal Housing Finance Agency within 14 days of 
                such determination.</DELETED>
        <DELETED>    (3) Rule of construction.--Notwithstanding any 
        authority granted to the Director of the Federal Housing 
        Finance Agency under paragraph (1), the Director of the Federal 
        Housing Finance Agency--</DELETED>
                <DELETED>    (A) shall have no authority to sell, 
                transfer, exchange, or otherwise dispose of any 
                guarantee obligations described under subsections 
                (a)(2) and (b)(2) of section 501; and</DELETED>
                <DELETED>    (B) shall have no rights, claims, or title 
                to, nor any authority to sell, transfer, exchange, or 
                otherwise dispose of, guarantee fee amounts derived 
                from the single-family mortgage guarantee business of 
                the enterprises in existence as of the FMIC 
                certification date.</DELETED>
<DELETED>    (b) Division of Assets and Liabilities; Authority To 
Establish Holding Corporation and Dissolution Trust Fund.--The action 
and procedures required under subsection (a)--</DELETED>
        <DELETED>    (1) shall include the establishment and execution 
        of plans to provide for an equitable division, distribution, 
        and liquidation of the assets and liabilities of an enterprise, 
        including any infrastructure, property, including intellectual 
        property, platforms, or any other thing or object of value, 
        provided such plan complies with the requirements of this Act 
        and any amendments made by this Act; and</DELETED>
        <DELETED>    (2) may provide for establishment of--</DELETED>
                <DELETED>    (A) 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</DELETED>
                <DELETED>    (B) one or more trusts to which to 
                transfer--</DELETED>
                        <DELETED>    (i) outstanding debt obligations 
                        of an enterprise; or</DELETED>
                        <DELETED>    (ii) outstanding mortgages held 
                        for the purpose of collateralizing mortgage-
                        backed securities guaranteed by an 
                        enterprise.</DELETED>
<DELETED>    (c) Recoupment by Senior Preferred Shareholders.--
</DELETED>
        <DELETED>    (1) In general.--Subject to the requirements of 
        this Act, any proceeds from the wind down of an enterprise 
        shall be paid first to the senior preferred shareholders of 
        each such enterprise, then to the preferred shareholders of 
        each such enterprise, and then to the common shareholders of 
        each such enterprise.</DELETED>
        <DELETED>    (2) Joint determination.--The amount of any 
        proceeds to be paid pursuant to paragraph (1) shall be jointly 
        determined by the Director of the Federal Housing Finance 
        Agency, the Corporation, and the Secretary of the 
        Treasury.</DELETED>
        <DELETED>    (3) Maximum return to shareholders.--The wind down 
        of each enterprise required under this section shall be managed 
        by the Director of the Federal Housing Finance Agency, in 
        consultation with the Corporation and the Secretary of the 
        Treasury, to obtain resolutions that maximize the return for 
        the senior preferred shareholders under paragraph (1), to the 
        extent that such resolutions--</DELETED>
                <DELETED>    (A) are consistent with the goal of 
                supporting a sound, stable, and liquid housing 
                market;</DELETED>
                <DELETED>    (B) are consistent with applicable Federal 
                and State law;</DELETED>
                <DELETED>    (C) comply with the requirements of this 
                Act and any amendments made by this Act; and</DELETED>
                <DELETED>    (D) protect the taxpayer.</DELETED>
        <DELETED>    (4) Sale of certain assets as a going concern.--
        Except as provided in section 601 or elsewhere as required in 
        this Act, if the Director of the Federal Housing Finance 
        Agency, in consultation with the Corporation and the Secretary 
        of the Treasury, determines that the sale of any line of 
        business, or any function, activity, or service of an 
        enterprise as a going concern will maximize the return for the 
        senior preferred shareholders as required under paragraph (3), 
        the Director may conduct such sale, provided that--</DELETED>
                <DELETED>    (A) under no circumstance, shall such sale 
                transfer, convey, or authorize, or be deemed to 
                transfer, convey, or authorize, any guarantee or 
                Federal support, assistance, or backing, implicit or 
                explicit, related to any such line of business, 
                function, activity, or service; and</DELETED>
                <DELETED>    (B) such sale does not impede or otherwise 
                interfere with the ability of the Federal Mortgage 
                Insurance Corporation to carry out the functions and 
                requirements of this Act.</DELETED>
        <DELETED>    (5) Rule of construction.--For purposes of this 
        subsection, the term ``proceeds'' does not include any 
        guarantee fee amounts derived from the single-family mortgage 
        guarantee business of the enterprises in existence as of the 
        FMIC certification date.</DELETED>

<DELETED>SEC. 503. ALIGNING PURPOSE OF CONSERVATORSHIP WITH 
              FMIC.</DELETED>

<DELETED>    (a) Power as Conservator.--Section 1367(b)(2)(D) of the 
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4617(b)(2)(D)) is amended to read as follows:</DELETED>
                <DELETED>    ``(D) Power as conservator.--After the 
                date of enactment of the Housing Finance Reform and 
                Taxpayer Protection Act of 2013 the Agency shall, as 
                conservator, take such actions as are necessary--
                </DELETED>
                        <DELETED>    ``(i) to ensure the efficient, 
                        effective, and expeditious wind down of the 
                        enterprises;</DELETED>
                        <DELETED>    ``(ii) to manage the affairs, 
                        assets, and obligations of the enterprises and 
                        to operate the enterprises in compliance with 
                        the requirements of the Housing Finance Reform 
                        and Taxpayer Protection Act of 2013;</DELETED>
                        <DELETED>    ``(iii) to assist the Federal 
                        Mortgage Insurance Corporation, in a 
                        consultative capacity, in carrying out the 
                        requirements under the Housing Finance Reform 
                        and Taxpayer Protection Act of 2013; 
                        and</DELETED>
                        <DELETED>    ``(iv) to maintain liquidity and 
                        stability in the secondary mortgage market 
                        until such as time as the charters of the 
                        enterprises are revoked pursuant to title V of 
                        such Act.''.</DELETED>
<DELETED>    (b) Rule of Construction.--Nothing in this Act, or any 
amendments made by this Act, except as may be explicitly provided for 
in this Act, or any amendment made by this Act, shall be deemed to 
alter the powers, authorities, rights, and duties that are vested in 
the Federal Housing Finance Agency and the Director of the Federal 
Housing Finance Agency with respect to its supervision and regulation 
of the enterprises.</DELETED>

<DELETED>SEC. 504. CONFORMING LOAN LIMITS.</DELETED>

<DELETED>    (a) In General.--Beginning on the date of enactment of 
this Act, the limitations governing the maximum original principal 
obligation of conventional mortgages that may be purchased by the 
Federal National Mortgage Association and the Federal Home Loan 
Mortgage Corporation, referred to in section 302(b)(2) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) and 
section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)), respectively, 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 date of enactment 
of this Act, subject to the limitations in this paragraph. Each 
adjustment shall be made by adding to each such amount (as it may have 
been previously adjusted) a percentage thereof equal to the percentage 
increase, during the most recent 12-month or 4-quarter period ending 
before the time of determining such annual adjustment, in the housing 
price index maintained pursuant to section 1322 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4542). If the change in such house price index during the most recent 
12-month or 4-quarter period ending before the time of determining such 
annual adjustment is a decrease, then no adjustment shall be made for 
the next year, and the next adjustment shall take into account prior 
declines in the house price index, so that any adjustment shall reflect 
the net change in the house price index since the last adjustment. 
Declines in the house price index shall be accumulated and then reduce 
increases until subsequent increases exceed prior declines.</DELETED>
<DELETED>    (b) Special Exception for Alaska, Hawaii, Guam, and 
USVI.--The limitations set forth under subsection (a) shall be 
increased by not to exceed 50 per centum with respect to properties 
located in Alaska, Guam, Hawaii, and the Virgin Islands.</DELETED>
<DELETED>    (c) High-Cost Area Limit.--The limitations set forth under 
subsection (a) shall also be increased, with respect to properties of a 
particular size located in any area for which 115 percent of the median 
house price for such size residence exceeds the limitation under 
subsection (a) for such size residence--</DELETED>
        <DELETED>    (1) for the first year following the date of 
        enactment of this Act, to the lesser of 150 percent of such 
        limitation for such size residence or the amount that is equal 
        to 115 percent of the median house price in such area for such 
        size residence;</DELETED>
        <DELETED>    (2) for the second year following the date of 
        enactment of this Act, to the lesser of 145 percent of such 
        limitation for such size residence or the amount that is equal 
        to 115 percent of the median house price in such area for such 
        size residence;</DELETED>
        <DELETED>    (3) for the third year following the date of 
        enactment of this Act, to the lesser of 135 percent of such 
        limitation for such size residence or the amount that is equal 
        to 115 percent of the median house price in such area for such 
        size residence;</DELETED>
        <DELETED>    (4) for the fourth year following the date of 
        enactment of this Act, to the lesser of 130 percent of such 
        limitation for such size residence or the amount that is equal 
        to 115 percent of the median house price in such area for such 
        size residence; and</DELETED>
        <DELETED>    (5) for the fifth year following the date of 
        enactment of this Act, and each year thereafter, to the lesser 
        of 125 percent of such limitation for such size residence or 
        the amount that is equal to 115 percent of the median house 
        price in such area for such size residence.</DELETED>

<DELETED>SEC. 505. PORTFOLIO REDUCTION.</DELETED>

<DELETED>    (a) Graduated Reduction.--</DELETED>
        <DELETED>    (1) In general.--Each enterprise shall not own, as 
        of any applicable date, mortgage assets in excess of--
        </DELETED>
                <DELETED>    (A) as of December 31, 2013, 
                $552,500,000,000; and</DELETED>
                <DELETED>    (B) on December 31 of each year thereafter 
                until the FMIC certification date, 85 percent of the 
                aggregate amount of the mortgage assets that the 
                enterprise was permitted to own as of December 31 of 
                the immediately preceding calendar year.</DELETED>
        <DELETED>    (2) Retained portfolio to facilitate orderly wind 
        down.--On December 31 of the year in which the FMIC 
        certification date occurs, the Corporation shall establish an 
        allowable amount of enterprise owned mortgage assets in an 
        amount equal to the amount necessary to facilitate--</DELETED>
                <DELETED>    (A) the orderly wind down of the 
                enterprises; and</DELETED>
                <DELETED>    (B) appropriate loss mitigation on any 
                legacy guarantees of the enterprises.</DELETED>
<DELETED>    (b) Mortgage Assets Defined.--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).</DELETED>

<DELETED>SEC. 506. REPEAL OF MANDATORY HOUSING GOALS.</DELETED>

<DELETED>    (a) Repeal of Housing Goals.--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).</DELETED>
<DELETED>    (b) Conforming Amendments.--The Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 
et seq.) is amended--</DELETED>
        <DELETED>    (1) in section 1303(28), by striking ``, and, for 
        the purposes'' and all that follows through ``designated 
        disaster areas'';</DELETED>
        <DELETED>    (2) in section 1324(b)(1)(A), by striking clauses 
        (i), (ii), and (iv);</DELETED>
        <DELETED>    (3) in section 1341--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) in paragraph (1), by inserting 
                        ``or'' after the semicolon at the 
                        end;</DELETED>
                        <DELETED>    (ii) in paragraph (2), by striking 
                        the semicolon at the end and inserting a 
                        period; and</DELETED>
                        <DELETED>    (iii) by striking paragraphs (3) 
                        and (4); and</DELETED>
                <DELETED>    (B) in subsection (b)(2)--</DELETED>
                        <DELETED>    (i) in subparagraph (A), by 
                        inserting ``or'' after the semicolon at the 
                        end;</DELETED>
                        <DELETED>    (ii) by striking subparagraphs (B) 
                        and (C); and</DELETED>
                        <DELETED>    (iii) by redesignating 
                        subparagraph (D) as subparagraph (B);</DELETED>
        <DELETED>    (4) in section 1345(a)--</DELETED>
                <DELETED>    (A) in paragraph (1), by inserting ``or'' 
                after the semicolon at the end;</DELETED>
                <DELETED>    (B) in paragraph (2), by striking the 
                semicolon at the end and inserting a period; 
                and</DELETED>
                <DELETED>    (C) by striking paragraphs (3) and (4); 
                and</DELETED>
        <DELETED>    (5) in section 1371(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,''.</DELETED>

       <DELETED>TITLE VI--IMPROVEMENTS TO FUNCTIONING OF HOUSING 
                            MARKET</DELETED>

<DELETED>SEC. 601. CONTINUATION OF MULTIFAMILY BUSINESS OF THE 
              ENTERPRISES.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any provision of title V, 
or any other provision of law, effective on the FMIC certification 
date, all functions, activities, infrastructure, property, including 
intellectual property, platforms, or any other object or service of an 
enterprise relating to the maintenance and operation of the multifamily 
guarantee business of an enterprise shall be transferred, without cost, 
to the Corporation.</DELETED>
<DELETED>    (b) Authority of Director.--The Corporation is authorized, 
upon such terms and conditions as it may deem appropriate, to guarantee 
the timely payment of principal of and interest, on any mortgage on 
multifamily housing purchased by the Corporation pursuant to the 
transfer of an enterprise's multifamily guarantee business under 
subsection (a).</DELETED>
<DELETED>    (c) Limitation on Ongoing Operation of Multifamily 
Business.--In carrying out the multifamily guarantee business of an 
enterprise transferred pursuant to subsection (a), the Corporation 
shall ensure that any such business continues to operate, as 
applicable, consistent with--</DELETED>
        <DELETED>    (1) the Delegated Underwriting and Servicing 
        Lender Program established by the Federal National Mortgage 
        Association; and</DELETED>
        <DELETED>    (2) the Program Plus Lender Program established by 
        the Federal Home Loan Mortgage Corporation, especially the 
        Series K Structured Pass-Through Certificates offered by the 
        enterprise.</DELETED>
<DELETED>    (d) 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 guaranty--</DELETED>
        <DELETED>    (1) issued by the Corporation pursuant to this 
        subsection; and</DELETED>
        <DELETED>    (2) obligation assumed by the Corporation pursuant 
        to the transfer of an enterprise's multifamily guarantee 
        business under subsection (a).</DELETED>
<DELETED>    (e) Guarantee Fee.--</DELETED>
        <DELETED>    (1) In general.--The Corporation shall collect a 
        reasonable fee for any guaranty under this subsection and shall 
        make such charges as it may determine to be reasonable for the 
        analysis of any trust or other security arrangement proposed by 
        an issuer of a security backed by multifamily mortgages 
        guaranteed under this section.</DELETED>
        <DELETED>    (2) Deposit into mortgage insurance fund.--Any 
        guarantee fee amounts collected under this subsection shall be 
        deposited in the Mortgage Insurance Fund.</DELETED>

<DELETED>SEC. 602. MULTIPLE LENDER ISSUES.</DELETED>

<DELETED>    With respect to the dwelling of a borrower that serves as 
security for an eligible mortgage, if the borrower enters into any 
credit transaction that would result in the creation of a new mortgage 
or other lien on such dwelling where the loan-to-value ratio of such 
credit transaction amount is 80 percent or more, the creditor of such 
new mortgage or other lien shall seek and obtain the approval of the 
creditor of the senior eligible mortgage loan before any such credit 
transaction becomes valid and enforceable.</DELETED>

<DELETED>SEC. 603. GAO REPORT ON FULL PRIVATIZATION OF SECONDARY 
              MORTGAGE MARKET.</DELETED>

<DELETED>    (a) GAO Report.--Not later than 8 years after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit a report to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services of the 
House of Representatives on the feasibility of maintaining a fully 
privatized secondary mortgage market, including recommendations on how 
to best carry out any displacement of the insurance model established 
under this Act.</DELETED>
<DELETED>    (b) Corporation Plan To Transition to a Fully Private 
Secondary Mortgage Market.--</DELETED>
        <DELETED>    (1) Required submission to congress.--Not later 
        than 6 months after the date on which the report required under 
        subsection (a) is submitted, the Corporation shall submit to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives a plan to transition to a fully privatized 
        secondary mortgage market.</DELETED>
        <DELETED>    (2) Required content of plan.--The plan required 
        to be submitted under paragraph (1) shall describe, chronicle, 
        and specify all the legislative, administrative, and regulatory 
        actions necessary to carry out a transition to a fully private 
        secondary mortgage market, including all actions necessary to 
        dissolve the Corporation and successfully displace the 
        insurance model established under this Act.</DELETED>

            <DELETED>TITLE VII--GENERAL PROVISIONS</DELETED>

<DELETED>SEC. 701. AUTHORITY TO ISSUE REGULATIONS.</DELETED>

<DELETED>    The Corporation may prescribe such regulations and issue 
such guidelines, orders, requirements, or standards as are necessary to 
carry out this Act, or any amendment made by this Act.</DELETED>

<DELETED>SEC. 702. FAIR VALUE ACCOUNTING.</DELETED>

<DELETED>    In any evaluation, oversight, audit, or analysis by the 
Corporation of the cost of the Mortgage Insurance Fund, the insurance 
or guarantee activities of the Corporation required under this Act, 
including any fee or charge in connection with the provision of such 
insurance or guarantee, or the financial transactions of the 
Corporation, the Corporation shall conduct any such evaluation, 
oversight, audit, or analysis based on the fair-value accrual 
accounting method.</DELETED>

<DELETED>SEC. 703. RULE OF CONSTRUCTION.</DELETED>

<DELETED>    Nothing in this Act shall be construed to prohibit or 
otherwise restrict the ability of a holder of any loss position in any 
covered security insured under this Act from restructuring, 
retranching, or resecuritizing such position.</DELETED>

<DELETED>SEC. 704. SEVERABILITY.</DELETED>

<DELETED>    If any provision of this Act or the application of any 
provision of this Act to any person or circumstance, is held invalid, 
the application of such provision to other persons or circumstances, 
and the remainder of this Act, shall not be affected thereby.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing Finance 
Reform and Taxpayer Protection Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

           TITLE I--ELIMINATION OF FANNIE MAE AND FREDDIE MAC

Sec. 101. Elimination of Fannie Mae and Freddie Mac.

            TITLE II--FEDERAL MORTGAGE INSURANCE CORPORATION

Sec. 201. Establishment.
Sec. 202. Management of Corporation.
Sec. 203. Advisory Committee.
Sec. 204. Office of the Inspector General.
Sec. 205. Staff, experts, and consultants.
Sec. 206. Reports; testimony; audits.
Sec. 207. Specific offices.
Sec. 208. Office of Consumer and Market Access.
Sec. 209. Office of Multifamily Housing.
Sec. 210. Equitable access for lenders and borrowers.
Sec. 211. Office of Taxpayer Protection.

           TITLE III--DUTIES AND RESPONSIBILITIES OF THE FMIC

                   Subtitle A--Duties and Authorities

Sec. 301. Duties and responsibilities.
Sec. 302. Standards for credit risk-sharing mechanisms.
Sec. 303. Insurance; Mortgage Insurance Fund.
Sec. 304. Loan limits; Housing Price Index.
Sec. 305. Authority to protect taxpayers in unusual and exigent market 
                            conditions.
Sec. 306. General powers.
Sec. 307. Exemptions.
Sec. 308. Regulatory consultation and coordination.
Sec. 309. Authority to issue regulations.
Sec. 310. Equivalency in protection of the Mortgage Insurance Fund.

 Subtitle B--Approval and Supervision of Approved Entities for Single-
                           family Activities

Sec. 311. Approval and supervision of guarantors.
Sec. 312. Approval and supervision of aggregators.
Sec. 313. Approval of private mortgage insurers.
Sec. 314. Approval of servicers.
Sec. 315. Authority to establish and approve small lender mutuals.
Sec. 316. Supervisory actions related to capital and solvency.
Sec. 317. Ownership, acquisitions, and operations of covered entities.

    Subtitle C--Securitization Platform and Transparency in Market 
                               Operations

                    PART I--Securitization Platform

Sec. 321. Establishment of the Securitization Platform.
Sec. 322. Management of the Platform.
Sec. 323. Membership in the Platform.
Sec. 324. Fees.
Sec. 325. Purposes and obligations of the Platform.
Sec. 326. Uniform securitization agreements for covered securities and 
                            required contractual terms for noncovered 
                            securities.
Sec. 327. Approval and standards for collateral risk managers.

               PART II--Transparency in Market Operations

Sec. 331. Review of loan documents; disclosures.
Sec. 332. National mortgage database.
Sec. 333. Working group on electronic registration of mortgage loans.
Sec. 334. Multiple lender issues.
Sec. 335. Required harmonization of standards within eligible mortgage 
                            criteria.

                   TITLE IV--FHFA AND FMIC TRANSITION

Sec. 401. Definitions.
Sec. 402. FHFA transition.
Sec. 403. Transfer and rights of employees of the FHFA.
Sec. 404. Transition Committee.
Sec. 405. Transition assessments.
Sec. 406. Transfer of powers and duties on the system certification 
                            date; continuation and coordination of 
                            certain actions.
Sec. 407. Technical and conforming amendments relating to abolishment 
                            of FHFA.
Sec. 408. Repeal of mandatory housing goals.

 TITLE V--IMPROVING TRANSPARENCY, ACCOUNTABILITY, AND EFFICACY WITHIN 
                           AFFORDABLE HOUSING

Sec. 501. Affordable housing allocations.
Sec. 502. Housing Trust Fund.
Sec. 503. Capital Magnet Fund.
Sec. 504. Market Access Fund.
Sec. 505. Additional taxpayer protections.
Sec. 506. Promoting affordable housing investment.

   TITLE VI--TRANSITION AND TERMINATION OF FANNIE MAE AND FREDDIE MAC

Sec. 601. Minimum housing finance system criteria to be met prior to 
                            system certification date.
Sec. 602. Transition of the housing finance system.
Sec. 603. Resolution authority; technical amendments.
Sec. 604. Wind down.
Sec. 605. Portfolio reduction.
Sec. 606. Oversight of transition of the housing finance system.
Sec. 607. Authority to establish provisional standards.
Sec. 608. Initial fund level for the Mortgage Insurance Fund.
Sec. 609. GAO report on full privatization of secondary mortgage 
                            market.

                         TITLE VII--MULTIFAMILY

Sec. 701. Establishment of multifamily subsidiaries.
Sec. 702. Disposition of multifamily businesses.
Sec. 703. Approval and supervision of multifamily guarantors.
Sec. 704. Multifamily housing requirement.
Sec. 705. Establishment of small multifamily property program.
Sec. 706. Multifamily housing study.
Sec. 707. Multifamily platform study.
Sec. 708. Short-term residential housing.

                     TITLE VIII--GENERAL PROVISIONS

Sec. 801. Rule of construction.
Sec. 802. Severability.
Sec. 803. Transfer notification under TILA.
Sec. 804. Investment authority to support rural infrastructure.
Sec. 805. Consolidation of similar housing assistance programs.
Sec. 806. Bureau of Consumer Financial Protection review; GAO report.
Sec. 807. Determination of budgetary effects.

SEC. 2. DEFINITIONS.

    As used in this Act, the following definitions shall apply:
            (1) Affiliate.--The term ``affiliate'' means any person 
        that controls, is controlled by, or is under common control 
        with another person.
            (2) Affordable rental housing.--The term ``affordable 
        rental housing'' means a rental housing unit that is considered 
        affordable for extremely low-, very low-, low-, and moderate-
        income families if the rent charged, including utilities or a 
        utility allowance, does not exceed 30 percent of the respective 
        income limit in that market area for extremely low-, very low-, 
        low-, or moderate-income families, respectively, of the size 
        appropriate for the number of bedrooms in the unit, as 
        established by the Secretary of Housing and Urban Development.
            (3) Agency transfer date.--The term ``agency transfer 
        date'' means the date that is 6 months after the date of 
        enactment of this Act.
            (4) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the same meaning as 
        in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(q)), and includes the National Credit Union Administration 
        in the case of any credit union.
            (5) Approved aggregator.--The term ``approved aggregator'' 
        means an entity that is approved by the Corporation pursuant to 
        section 312.
            (6) Approved entity.--The term ``approved entity'' means--
                    (A) an approved guarantor;
                    (B) an approved multifamily guarantor;
                    (C) an approved aggregator;
                    (D) an approved private mortgage insurer; and
                    (E) an approved servicer.
            (7) Approved guarantor.--The term ``approved guarantor'' 
        means an entity that is approved by the Corporation pursuant to 
        section 311.
            (8) Approved multifamily guarantor.--The term ``approved 
        multifamily guarantor'' means an entity that is approved by the 
        Corporation pursuant to section 703.
            (9) Approved private mortgage insurer.--The term ``approved 
        private mortgage insurer'' means an entity that is approved by 
        the Corporation pursuant to section 313.
            (10) Approved servicer.--The term ``approved servicer'' 
        means an entity that is approved by the Corporation pursuant to 
        section 314.
            (11) Area.--The term ``area'' means a metropolitan 
        statistical area, a micropolitan statistical area, and a 
        noncore area, as such areas may be established by the Office of 
        Management and Budget.
            (12) Board; board of directors.--The terms ``Board'' and 
        ``Board of Directors'' mean the Board of Directors of the 
        Federal Mortgage Insurance Corporation, unless the context 
        otherwise requires.
            (13) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of Board of Directors of the Federal Mortgage 
        Insurance Corporation, unless the context otherwise requires.
            (14) Charter.--The term ``charter'' means--
                    (A) with respect to the Federal National Mortgage 
                Association, the Federal National Mortgage Association 
                Charter Act (12 U.S.C. 1716 et seq.); and
                    (B) with respect to the Federal Home Loan Mortgage 
                Corporation, the Federal Home Loan Mortgage Corporation 
                Act (12 U.S.C. 1451 et seq.).
            (15) Community development financial institution.--The term 
        ``Community Development Financial Institution'' has the same 
        meaning as in section 103 of the Riegle Community Development 
        and Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
            (16) Community land trust.--The term ``community land 
        trust'' means a nonprofit organization or State or local 
        government that owns real property and leases the land through 
        homeownership programs that--
                    (A) use a ground lease to--
                            (i) make real property affordable to low- 
                        or moderate-income borrowers; and
                            (ii) stipulate a preemptive option to 
                        purchase the real property from the home owner 
                        at resale so that the affordability of the real 
                        property is preserved for successive low- and 
                        moderate-income borrowers;
                    (B) monitor properties to ensure affordability is 
                preserved over resales; and
                    (C) support homeowners to promote successful 
                homeownership and prevent foreclosure.
            (17) Corporation.--The term ``Corporation'' means the 
        Federal Mortgage Insurance Corporation established under title 
        II.
            (18) Covered entity.--The term ``covered entity'' means--
                    (A) an approved guarantor;
                    (B) an approved multifamily guarantor; and
                    (C) an approved aggregator that is neither an 
                insured depository institution nor an affiliate of an 
                insured depository institution.
            (19) Covered guarantee transaction.--
                    (A) Definition.--The term ``covered guarantee 
                transaction'' means a transaction, as that term shall 
                be defined by the Corporation by regulation, involving 
                the agreement to guarantee--
                            (i) any eligible mortgage loan;
                            (ii) any pool of such eligible mortgage 
                        loans; or
                            (iii) the payment of principal and interest 
                        on covered securities collateralized by 
                        eligible mortgage loans before payments insured 
                        by the Corporation are made.
                    (B) Rules of construction.--A covered guarantee 
                transaction--
                            (i) shall not be construed to be--
                                    (I) a contract for sale of a 
                                commodity for future delivery or a swap 
                                under the Commodity Exchange Act; or
                                    (II) a contract of insurance or 
                                reinsurance under any Federal or State 
                                law regulating the sale, underwriting, 
                                provision, or brokerage of insurance;
                            (ii) shall not be subject to any 
                        requirement of the Commodity Exchange Act; and
                            (iii) shall not be subject to any 
                        requirement imposed under State law pertaining 
                        to the sale, underwriting, provision, or 
                        brokerage of insurance or reinsurance.
            (20) Covered market-based risk-sharing transaction.--
                    (A) Definition.--The term ``covered market-based 
                risk-sharing transaction'' means any private market 
                transaction, as that term shall be defined by the 
                Corporation by regulation, involving a covered security 
                issued subject to a standard risk-sharing mechanism, 
                product, contract, or other security agreement approved 
                by the Corporation under section 302.
                    (B) Rules of construction.--A covered market-based 
                risk-sharing transaction--
                            (i) shall not be construed to be a contract 
                        of insurance or reinsurance under any Federal 
                        or State law regulating the sale, underwriting, 
                        provision, or brokerage of insurance; and
                            (ii) shall not be subject to any 
                        requirement imposed under State law pertaining 
                        to the sale, underwriting, provision, or 
                        brokerage of insurance or reinsurance.
            (21) Covered security.--The term ``covered security'' 
        means--
                    (A) a single-family covered security; and
                    (B) a multifamily covered security.
            (22) Credit risk-sharing mechanism.--The term ``credit 
        risk-sharing mechanism'' means any mechanism, product, 
        structure, contract, or security agreement by which a private 
        market holder assumes the first loss position, or any part of 
        such position, associated with the pool of eligible mortgage 
        loans collateralizing a covered security, or by which an 
        approved guarantor or approved multifamily guarantor manages 
        the credit risk related to guarantees provided for covered 
        securities.
            (23) CSP.--The term ``CSP'' means the securitization 
        infrastructure announced by the Federal Housing Finance Agency 
        on October 4, 2012, and developed by the enterprises while 
        under conservatorship, under the authority of the Federal 
        Housing Finance Agency pursuant to the Safety and Soundness 
        Act, and commonly referred to as the ``common securitization 
        platform''.
            (24) Days.--The term ``days'' means--
                    (A) with respect to any period of time less than or 
                equal to 10 days, business days; and
                    (B) with respect to any period of time greater than 
                10 days, calendar days.
            (25) Depository institution holding company.--The term 
        ``depository institution holding company'' has the same meaning 
        as section 3(w)(1) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(w)(1)).
            (26) Eligible borrower.--The term ``eligible borrower'' 
        means a borrower who--
                    (A) applies for an eligible mortgage loan; and
                    (B) meets the standards required of a borrower to 
                be approved for an eligible mortgage loan.
            (27) Eligible mortgage loan.--The term ``eligible mortgage 
        loan'' means--
                    (A) an eligible single-family mortgage loan; and
                    (B) an eligible multifamily mortgage loan.
            (28) Eligible multifamily mortgage loan.--The term 
        ``eligible multifamily mortgage loan'' means a commercial real 
        estate loan--
                    (A) secured by a property with--
                            (i) 5 or more residential units; or
                            (ii) 2 or more residential units, if the 
                        requirement under clause (i) is waived by the 
                        Corporation for purposes of carrying out a 
                        demonstration or pilot program;
                    (B) the primary source of repayment for which is 
                expected to be derived from rental income generated by 
                the property;
                    (C) the term of which may not be less than 5 years 
                but not more than 40 years, except that the term may be 
                less than 5 years subject to standards set by the 
                Corporation;
                    (D) that satisfies any additional underwriting 
                criteria established by the Corporation to balance 
                supporting access to capital with managing credit risk 
                to the Mortgage Insurance Fund, including--
                            (i) a maximum loan-to-value ratio;
                            (ii) a minimum debt service coverage ratio; 
                        and
                            (iii) considerations for restrictive or 
                        special uses of a property, including non-
                        residential uses, properties for seniors, 
                        manufactured housing, and affordability 
                        restrictions, and the impact of such uses on 
                        clauses (i) and (ii); and
                    (E) that satisfies any additional underwriting 
                criteria that may be established by the Corporation.
            (29) Eligible single-family mortgage loan.--The term 
        ``eligible single-family mortgage loan'' means--
                    (A) a loan that--
                            (i) has been originated in compliance with 
                        minimum standards issued by the Corporation by 
                        regulation, provided that such standards--
                                    (I) are uniform and equal in kind, 
                                nature, and application regardless of--
                                            (aa) the originator of the 
                                        mortgage loan; or
                                            (bb) the role performed by 
                                        an approved entity with respect 
                                        to the mortgage loan;
                                    (II) are, to the greatest extent 
                                possible, substantially similar to the 
                                regulations issued by the Bureau of 
                                Consumer Financial Protection under 
                                section 129C(b) of the Truth in Lending 
                                Act (15 U.S.C. 1639c); and
                                    (III) permit--
                                            (aa) residential real 
                                        estate loans secured by a 
                                        property with 1 to 4 single-
                                        family units, including units 
                                        that are not owner-occupied;
                                            (bb) loans secured by 
                                        manufactured homes, as defined 
                                        in section 603(6) of the 
                                        National Manufactured Housing 
                                        Construction and Safety 
                                        Standards Act of 1974 (42 
                                        U.S.C. 5402(6));
                                            (cc) residential real 
                                        estate loans secured by a 
                                        property with 1 to 4 single-
                                        family units that are 
                                        originated by a State housing 
                                        finance agency, as defined in 
                                        section 106 of the Housing and 
                                        Urban Development Act of 1968 
                                        (12 U.S.C. 1701x);
                                            (dd) loans originated by a 
                                        Community Development Financial 
                                        Institution;
                                            (ee) loans originated by a 
                                        mission-based nonprofit lender;
                                            (ff) loans secured by real 
                                        property in a permanently 
                                        affordable homeownership 
                                        program or community land 
                                        trust; and
                                            (gg) loans to entities that 
                                        provide non-owner occupied 
                                        rental housing with care 
                                        providers for individuals with 
                                        intellectual and developmental 
                                        disabilities;
                            (ii) has a maximum original principal 
                        obligation amount that does not exceed the 
                        applicable loan limitation established under 
                        section 304;
                            (iii) has an outstanding principal balance 
                        at the time of purchase of insurance available 
                        under title II that does not exceed 80 percent 
                        of the value of the property securing the loan, 
                        unless--
                                    (I) for such period and under such 
                                circumstances as the Corporation may 
                                require, the seller agrees to 
                                repurchase or replace the loan upon 
                                demand of the Corporation in the event 
                                the loan is in default;
                                    (II) an approved private mortgage 
                                insurer guarantees or insures--
                                            (aa) not less than 12 
                                        percent of the unpaid principal 
                                        balance of the loan, accounting 
                                        for any down payment required 
                                        under clause (iv), for loans in 
                                        which the unpaid principal 
                                        balance exceeds 80 percent but 
                                        not more than 85 percent of the 
                                        value of the property securing 
                                        the loan;
                                            (bb) not less than 25 
                                        percent of the unpaid principal 
                                        balance of the loan, accounting 
                                        for any down payment required 
                                        under clause (iv), for loans in 
                                        which the unpaid principal 
                                        balance exceeds 85 percent but 
                                        not more than 90 percent of the 
                                        value of the property securing 
                                        the loan;
                                            (cc) not less than 30 
                                        percent of the unpaid principal 
                                        balance of the loan, accounting 
                                        for any down payment required 
                                        under clause (iv), for loans in 
                                        which the unpaid principal 
                                        balance exceeds 90 percent but 
                                        not more than 95 percent of the 
                                        value of the property securing 
                                        the loan; and
                                            (dd) not less than 35 
                                        percent of the unpaid principal 
                                        balance of the loan, accounting 
                                        for any down payment required 
                                        under clause (iv), for loans in 
                                        which the unpaid principal 
                                        balance exceeds 95 percent of 
                                        the value of the property 
                                        securing the loan; or
                                    (III) that portion of the unpaid 
                                principal balance of the loan which 
                                exceeds 80 percent of the value of the 
                                property securing the loan is subject 
                                to other credit enhancement that--
                                            (aa) meets standards 
                                        comparable to the standards 
                                        required of private mortgage 
                                        insurers under subclause (II); 
                                        and
                                            (bb) is approved by the 
                                        Corporation;
                            (iv) has a down payment that is--
                                    (I) for a first-time homebuyer, as 
                                that term shall be defined by the 
                                Corporation by regulation, equal to not 
                                less than 3.5 percent of the purchase 
                                price of the property securing the 
                                loan; or
                                    (II) for non first-time homebuyers, 
                                equal to--
                                            (aa) not less than 3.5 
                                        percent of the purchase price 
                                        of the property securing the 
                                        loan, if such purchase occurs 
                                        prior to the system 
                                        certification date or less than 
                                        1 year after the system 
                                        certification date;
                                            (bb) not less than 4 
                                        percent of the purchase price 
                                        of the property securing the 
                                        loan, if such purchase occurs 
                                        during the period that begins 1 
                                        year after the system 
                                        certification date and ends 
                                        less than 2 years after the 
                                        system certification date;
                                            (cc) not less than 4.5 
                                        percent of the purchase price 
                                        of the property securing the 
                                        loan, if such purchase occurs 
                                        during the period that begins 2 
                                        years after the system 
                                        certification date and ends 
                                        less than 3 years after the 
                                        system certification date; or
                                            (dd) not less than 5 
                                        percent of the purchase price 
                                        of the property securing the 
                                        loan, if such purchase occurs 
                                        during any period after the 
                                        period set forth in item (cc);
                            (v) satisfies standards related to 
                        establishing title or marketability of title, 
                        as may be required by the Corporation, which 
                        standards may include the required purchase of 
                        title insurance on the property securing the 
                        loan;
                            (vi) contains such terms and provisions 
                        with respect to insurance, property 
                        maintenance, repairs, alterations, payment of 
                        taxes, default, reserves, delinquency charges, 
                        foreclosure proceedings, anticipation of 
                        maturity, additional and secondary liens, and 
                        other matters, including matters that set forth 
                        terms and provisions for establishing escrow 
                        accounts, performing financial assessments, or 
                        limiting the amount of any payment made 
                        available under the loan as the Corporation may 
                        prescribe; and
                            (vii) contains such other terms, 
                        characteristics, or underwriting criteria as 
                        the Corporation, in consultation with the 
                        Bureau of Consumer Financial Protection, may 
                        determine necessary or appropriate; or
                    (B) a loan refinanced pursuant to the authority 
                granted under section 305(i).
            (30) Enterprise.--The term ``enterprise'' means--
                    (A) the Federal National Mortgage Association and 
                any affiliate thereof; and
                    (B) the Federal Home Loan Mortgage Corporation and 
                any affiliate thereof.
            (31) Extremely low-income.--The term ``extremely low-
        income'' means--
                    (A) in the case of owner-occupied units, income not 
                in excess of 30 percent of the median income of the 
                area; and
                    (B) in the case of rental units, income not in 
                excess of 30 percent of the median income of the area, 
                with adjustments for smaller and larger families, as 
                determined by the Secretary of Housing and Urban 
                Development.
            (32) Federal home loan bank.--The term ``Federal Home Loan 
        Bank'' means a bank established under the authority of the 
        Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.).
            (33) Federal home loan bank system.--The term ``Federal 
        Home Loan Bank System'' means the Federal Home Loan Banks and 
        the Office of Finance and any authorized subsidiary of one or 
        more Federal Home Loan Banks.
            (34) FHFA related terms.--
                    (A) Federal housing finance agency.--The term 
                ``Federal Housing Finance Agency'' shall mean--
                            (i) prior to the agency transfer date, the 
                        Federal Housing Finance Agency established 
                        under section 1311 of the Safety and Soundness 
                        Act (12 U.S.C. 4511);
                            (ii) on and after the agency transfer date 
                        but prior to the system certification date, the 
                        Federal Housing Finance Agency established 
                        within the Corporation under title IV; and
                            (iii) on and after the system certification 
                        date, the Corporation.
                    (B) FHFA director.--The term ``FHFA Director'' has 
                the same meaning as the term ``Director'' in section 
                401(1).
            (35) Federal regulatory agencies.--The term--
                    (A) ``Federal regulatory agency'' means, 
                individually, the Board of Governors of the Federal 
                Reserve System, the Office of the Comptroller of the 
                Currency, the Federal Deposit Insurance Corporation, 
                the Bureau of Consumer Financial Protection, the 
                National Credit Union Administration, the Securities 
                and Exchange Commission, the Commodity Futures Trading 
                Commission, and the Federal Housing Finance Agency; and
                    (B) ``Federal regulatory agencies'' means all of 
                the agencies referred to in subparagraph (A), 
                collectively.
            (36) First loss position.--The term ``first loss position'' 
        means, with regard to a covered security--
                    (A) either--
                            (i) the fully-funded position to which any 
                        credit loss on such covered security resulting 
                        from the nonperformance of underlying mortgage 
                        loans will accrue and be absorbed, to the full 
                        extent of the holder's interest in such 
                        position; or
                            (ii) the guarantee provided by an approved 
                        guarantor or approved multifamily guarantor 
                        with respect to an eligible single-family 
                        mortgage loan, pool of eligible single-family 
                        mortgage loans, or a single-family covered 
                        security or eligible multifamily mortgage loan, 
                        pool of eligible multifamily mortgage loans, or 
                        a multifamily covered security, as applicable; 
                        and
                    (B) the position or guarantee described under 
                subparagraph (A), as applicable, which is required to 
                absorb any initial credit loss on a covered security 
                prior to the Corporation becoming obligated to make any 
                payment of insurance in accordance with this Act.
            (37) HUD-approved housing counseling agency.--The term 
        ``HUD-approved housing counseling agency'' means an agency 
        certified by the Secretary of Housing and Urban Development 
        under section 106(e) of the Housing and Urban Development Act 
        of 1968 (12 U.S.C. 1701x(e)).
            (38) Insured depository institution.--The term ``insured 
        depository institution'' means--
                    (A) an insured depository institution, as defined 
                under section 3 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1813); and
                    (B) an insured credit union, as defined under 
                section 101 of the Federal Credit Union Act (12 U.S.C. 
                1752).
            (39) Issuer.--For a noncovered security, the term 
        ``issuer'' shall have the same meaning as under the Securities 
        Act of 1933 (15 U.S.C. 77b) and the rules and regulations 
        promulgated thereunder. The Platform shall not be deemed to be 
        an issuer of noncovered securities for purposes of the 
        Securities Act of 1933.
            (40) Low-income.--The term ``low-income'' means--
                    (A) in the case of owner-occupied units, income not 
                in excess of 80 percent of median income of the area; 
                and
                    (B) in the case of rental units, income not in 
                excess of 80 percent of median income of the area, with 
                adjustments for smaller and larger families, as 
                determined by the Secretary of Housing and Urban 
                Development.
            (41) Market participant.--The term ``market participant'' 
        means any--
                    (A) approved entity;
                    (B) private market holder; and
                    (C) member of the Securitization Platform.
            (42) Median income.--The term ``median income'' means, with 
        respect to an area, the unadjusted median family income for the 
        area, as determined and published annually by the Secretary of 
        Housing and Urban Development.
            (43) Mission-based nonprofit lender.--The term ``mission-
        based nonprofit lender'' means an organization that--
                    (A) is exempt from taxation pursuant to section 
                501(c)(3) of the Internal Revenue Code of 1986;
                    (B) makes--
                            (i) residential real estate loans for the 
                        purpose of promoting or facilitating 
                        homeownership for poor or low- or moderate-
                        income, disabled, or other disadvantaged 
                        persons or families; or
                            (ii) real estate loans for the purpose of 
                        promoting or facilitating affordable rental 
                        housing for low-income persons or families and 
                        subject to any other additional criteria 
                        established by the Corporation;
                    (C) sets interest rates on such loans that--
                            (i) are lower than the bank prime loan 
                        rate, as determined under the Federal Reserve 
                        Statistical Release of selected interest rates 
                        (commonly referred to as the ``H.15'') by the 
                        Board of Governors of the Federal Reserve 
                        System, for the last day of the most recent 
                        weekly release of such rates; or
                            (ii) are, after adjusting for inflation, 
                        no-interest loans or loans with interest rates 
                        at or below the interest rates for mortgage 
                        loans generally available in the market;
                    (D) except as described under subparagraph (B), 
                does not engage in the business of a mortgage 
                originator or mortgage broker;
                    (E) conducts its activities in a manner that serves 
                public or charitable purposes;
                    (F) receives funding and revenue and charges fees 
                in a manner that does not incentivize the organization 
                or its employees to act other than in the best 
                interests of its clients;
                    (G) compensates employees in a manner that does not 
                incentivize employees to act other than in the best 
                interests of its clients; and
                    (H) meets such other requirements as the 
                Corporation determines appropriate.
            (44) Moderate-income.--The term ``moderate-income'' means
                    (A) in the case of owner-occupied units, income not 
                in excess of median income of the area; and
                    (B) in the case of rental units, income not in 
                excess of median income of the area, with adjustments 
                for smaller and larger families, as determined by the 
                Secretary of Housing and Urban Development.
            (45) Mortgage aggregator.--The term ``mortgage aggregator'' 
        means a person that--
                    (A) arranges, in connection with a single-family 
                covered security, a credit-risk sharing mechanism that 
                is approved by the Corporation pursuant to section 302;
                    (B) issues such single-family covered security 
                through the Securitization Platform;
                    (C) does not originate eligible single-family 
                mortgage loans; and
                    (D) is not affiliated with a person that actively 
                engages in the business of originating eligible single-
                family mortgage loans.
            (46) Mortgage-backed security.--The term ``mortgage-backed 
        security'' means an asset-backed security, as defined in 
        section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c(a)), that is collateralized by--
                    (A) a mortgage loan, including any residential real 
                estate loan or commercial real estate loan; or
                    (B) a collateralized mortgage obligation of 
                mortgage-backed securities.
            (47) Mortgage originator.--The term ``mortgage originator'' 
        has the same meaning as in section 103(cc)(2) of the Truth in 
        Lending Act (15 U.S.C. 1602(cc)(2)).
            (48) Multifamily business.--The term ``multifamily 
        business'' means the activities and processes of the 
        enterprises of--
                    (A) purchasing, selling, lending on the security 
                of, or otherwise dealing in multifamily mortgage loans;
                    (B) securitizing a pool of multifamily mortgage 
                loans; and
                    (C) issuing multifamily securities.
            (49) Multifamily covered security.--The term ``multifamily 
        covered security'' means a multifamily mortgage-backed 
        security--
                    (A) collateralized by eligible multifamily mortgage 
                loans; and
                    (B) that is insured by the Corporation pursuant to 
                section 303.
            (50) Multifamily mortgage-backed security.--The term 
        ``multifamily mortgage-backed security'' means a mortgage-
        backed security collateralized by commercial real estate loans 
        secured by properties with 5 or more residential units in 
        accordance with the requirements of this Act.
            (51) Noncovered security.--The term ``noncovered security'' 
        means any mortgage-backed security other than a covered 
        security.
            (52) Noneligible mortgage loan.--The term ``noneligible 
        mortgage loan'' means any mortgage loan other than an eligible 
        mortgage loan.
            (53) Office of finance.--The term ``Office of Finance'' 
        means the Office of Finance in the Federal Home Loan Bank 
        System.
            (54) Permanently affordable homeownership program.--The 
        term ``permanently affordable homeownership program'' includes 
        programs administered by community land trusts, nonprofit 
        organizations, or State or local governments that--
                    (A) use a ground lease, deed restriction, 
                subordinate loan, or similar legal mechanism to--
                            (i) make real property affordable to low- 
                        or moderate-income borrowers; and
                            (ii) stipulate a preemptive option to 
                        purchase the real property from the homeowner 
                        at resale to preserve the affordability of the 
                        real property for successive low- and moderate-
                        income borrowers;
                    (B) monitor properties to ensure affordability is 
                preserved over resales; and
                    (C) support homeowners to promote successful 
                homeownership and prevent foreclosure.
            (55) Person.--The term ``person'' means an individual, 
        corporation, company (including a limited liability company or 
        joint stock company), association (incorporated or 
        unincorporated), mutual or cooperative organization, 
        partnership, trust, estate, society, or any other legal entity.
            (56) Platform; securitization platform.--The terms 
        ``Platform'' and ``Securitization Platform'' mean the 
        securitization infrastructure established under part I of 
        subtitle C of title III.
            (57) Platform directors.--The term ``Platform Directors'' 
        means the board of directors of the Securitization Platform.
            (58) Platform security.--The term ``Platform security'' 
        means a mortgage-backed security issued through the 
        Securitization Platform.
            (59) Private label mortgage-backed securities market.--The 
        term ``private label mortgage-backed securities market'' means 
        the market in which noncovered securities are issued, bought, 
        and sold.
            (60) Private market holder.--The term ``private market 
        holder'' means the holder or holders, other than an approved 
        guarantor or an approved multifamily guarantor, of the first 
        loss position with respect to eligible mortgage loans 
        collateralizing any covered security insured in accordance with 
        this Act.
            (61) Regulated entity.--The term ``regulated entity'' 
        means--
                    (A) the Federal National Mortgage Association and 
                any affiliate thereof;
                    (B) the Federal Home Loan Mortgage Corporation and 
                any affiliate thereof;
                    (C) any Federal Home Loan Bank; and
                    (D) the Securitization Platform.
            (62) Residential real estate loan.--The term ``residential 
        real estate loan'' includes any--
                    (A) real estate mortgage loan;
                    (B) personal property loan secured solely by the 
                home itself;
                    (C) hybrid land-home loan for a manufactured home, 
                as defined in section 603(6) of the National 
                Manufactured Housing Construction and Safety Standards 
                Act of 1974 (42 U.S.C. 5402(6)), to which the 
                requirements of paragraph (29)(A)(v) shall not apply; 
                and
                    (D) mortgage loan secured by real property in a 
                community land trust or permanently affordable 
                homeownership program.
            (63) Safety and soundness act.--The term ``Safety and 
        Soundness Act'' means the Federal Housing Enterprises Financial 
        Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.).
            (64) Senior preferred stock purchase agreement.--The term 
        ``Senior Preferred Stock Purchase Agreement'' means--
                    (A) the Amended and Restated Senior Preferred Stock 
                Purchase Agreement, dated September 26, 2008, as such 
                Agreement has been amended on May 6, 2009, December 24, 
                2009, and August 17, 2012, respectively, and as such 
                Agreement may be further amended and restated, entered 
                into between the Department of the Treasury and each 
                enterprise, as applicable; and
                    (B) any provision of any certificate in connection 
                with such Agreement creating or designating the terms, 
                powers, preferences, privileges, limitations, or any 
                other conditions of the Variable Liquidation Preference 
                Senior Preferred Stock of an enterprise issued or sold 
                pursuant to such Agreement.
            (65) Single-family activities.--The term ``single-family 
        activities'' means the activities and processes of the 
        Corporation in providing insurance for single-family covered 
        securities as provided in this Act.
            (66) Single-family covered security.--The term ``single-
        family covered security'' means a single-family mortgage-backed 
        security--
                    (A) collateralized by eligible single-family 
                mortgage loans; and
                    (B) that is insured by the Corporation pursuant to 
                section 303.
            (67) Small mortgage lender.--The term ``small mortgage 
        lender'' means a community bank, credit union, mid-sized bank, 
        non-depository institution, Community Development Financial 
        Institution, mission-based nonprofit lender, or housing finance 
        agency that originates residential real estate loans or 
        commercial real estate loans.
            (68) Standardized covered security; standardized security 
        for single-family covered securities.--The terms ``standardized 
        covered security'' and ``standardized single-family covered 
        security'' mean a single-family covered security that is--
                    (A) issued through the Platform; and
                    (B) in a form, and includes the standardized and 
                uniform terms for the security and transaction that 
                have been, developed by the Platform Directors and 
                approved by the Corporation for use across various 
                issuances.
            (69) Standardized noncovered security; standardized 
        security for single-family noncovered securities.--The terms 
        ``standardized noncovered security'' and ``standardized single-
        family noncovered security'' mean a single-family noncovered 
        security that is--
                    (A) issued through the Platform; and
                    (B) in a form, and includes the standardized and 
                uniform terms for the security and transaction that 
                have been, developed by the Platform Directors for use 
                across various issuances.
            (70) State.--The term ``State'' means any State, territory, 
        or possession of the United States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, Guam, American Samoa, or the United 
        States Virgin Islands or any Federally recognized Indian tribe, 
        as defined by the Secretary of the Interior under section 
        104(a) of the Federally Recognized Indian Tribe List Act of 
        1994 (25 U.S.C. 479a-1(a)).
            (71) System certification date.--The term ``system 
        certification date'' means the date on which the Board of 
        Directors certifies that the requirements of section 601 have 
        been met.
            (72) Very low-income.--
                    (A) In general.--The term ``very low-income'' 
                means--
                            (i) in the case of owner-occupied units, 
                        families having incomes not greater than 50 
                        percent of the median income of the area; and
                            (ii) in the case of rental units, families 
                        having incomes not greater than 50 percent of 
                        the median income of the area, with adjustments 
                        for smaller and larger families, as determined 
                        by the Secretary of Housing and Urban 
                        Development.
                    (B) Rule of construction.--For purposes of the 
                Housing Trust Fund established under section 1338 of 
                the Safety and Soundness Act (12 U.S.C. 4568), the 
                Capital Magnet Fund established under section 1339 of 
                the Safety and Soundness Act (12 U.S.C. 4569), and the 
                Market Access Fund established under section 504, the 
                term ``very low-income'' means--
                            (i) in the case of owner-occupied units, 
                        income in excess of 30 percent but not greater 
                        than 50 percent of the median income of the 
                        area; and
                            (ii) in the case of rental units, income in 
                        excess of 30 percent but not greater than 50 
                        percent of the median income of the area, with 
                        adjustments for smaller and larger families, as 
                        determined by the Secretary of Housing and 
                        Urban Development.

           TITLE I--ELIMINATION OF FANNIE MAE AND FREDDIE MAC

SEC. 101. ELIMINATION OF FANNIE MAE AND FREDDIE MAC.

    (a) Fannie Mae.--Effective on the agency transfer date, the 
Corporation shall take all steps necessary to dissolve and eliminate 
the Federal National Mortgage Association pursuant to the provisions of 
this Act. The charter for the Federal National Mortgage Association 
shall be repealed pursuant to title VI.
    (b) Freddie Mac.--Effective on the agency transfer date, the 
Corporation shall take all steps necessary to dissolve and eliminate 
the Federal Home Loan Mortgage Corporation pursuant to the provisions 
of this Act. The charter for the Federal Home Loan Mortgage Corporation 
shall be repealed pursuant to title VI.

            TITLE II--FEDERAL MORTGAGE INSURANCE CORPORATION

SEC. 201. ESTABLISHMENT.

    (a) Establishment.--Effective on the agency transfer date, there is 
established the Federal Mortgage Insurance Corporation, which is 
charged with ensuring the safety and soundness of, and compliance with 
laws and regulations, fair access to financial services, and fair 
treatment of customers by the institutions and other persons subject to 
its jurisdiction and which shall have the powers hereinafter granted.
    (b) Purpose.--The purpose of the Corporation shall be to--
            (1) facilitate a liquid, transparent, and resilient single-
        family and multifamily mortgage credit market by supporting a 
        robust secondary mortgage market, including during the 
        transition to the new housing finance system;
            (2) provide insurance on any mortgage-backed security that 
        satisfies the requirements under this Act to become a covered 
        security;
            (3) monitor and supervise approved entities to the extent 
        provided in this Act;
            (4) supervise the regulated entities;
            (5) facilitate the broad availability of mortgage credit 
        and secondary mortgage market financing through fluctuations in 
        the business cycle for eligible single-family and multifamily 
        lending across all--
                    (A) regions;
                    (B) localities;
                    (C) institutions;
                    (D) property types, including housing serving 
                renters; and
                    (E) eligible borrowers;
            (6) ensure continued, widespread availability of an 
        affordable, long-term, fixed rate, prepayable mortgage, such as 
        a 30-year fixed rate mortgage; and
            (7) preserve and maintain a liquid forward execution market 
        for eligible single-family mortgage loans and single-family 
        covered securities, such as the To-Be-Announced market.
    (c) General Supervisory and Regulatory Authority.--
            (1) In general.--Each approved entity shall, to the extent 
        provided in this Act, be subject to the supervision and 
        regulation of the Corporation.
            (2) Regulated entities; office of finance.--The Corporation 
        shall have general regulatory authority over each regulated 
        entity and the Office of Finance, and shall exercise such 
        general regulatory authority to ensure that the purposes of 
        this Act, any amendments made by this Act, and any other 
        applicable law as to which the Corporation has responsibility 
        under this Act are carried out.
    (d) Federal Status.--The Corporation shall be an independent agency 
and an instrumentality of the Federal Government.
    (e) Succession.--The Corporation shall have succession until 
dissolved by an Act of Congress.
    (f) Principal Office.--The Corporation shall maintain its principal 
office in the District of Columbia and shall be deemed, for purposes of 
venue in civil actions, to be a resident thereof.
    (g) Authority to Establish Other Offices.--The Corporation may 
establish such other offices in such other place or places as the 
Corporation may deem necessary or appropriate in the conduct of its 
business.
    (h) Prohibition.--The Corporation shall not engage in mortgage loan 
origination.

SEC. 202. MANAGEMENT OF CORPORATION.

    (a) Board of Directors.--
            (1) Members.--The management of the Corporation shall be 
        vested in a Board of Directors consisting of 5 members who 
        shall be appointed by the President, by and with the advice and 
        consent of the Senate, from among individuals who--
                    (A) are citizens of the United States; and
                    (B) have demonstrated technical, academic, or 
                professional understanding of, and practical, 
                disciplinary, vocational, or regulatory experience 
                working in, housing and housing finance.
            (2) Political affiliation.--Not more than 3 of the members 
        of the Board of Directors may be members of the same political 
        party.
            (3) Duties.--The Board of Directors shall advise the 
        Chairperson regarding overall strategies and policies to carry 
        out the duties and purposes of this Act.
    (b) Chairperson and Vice Chairperson.--
            (1) Chairperson.--
                    (A) Designation.--1 of the members appointed 
                pursuant to subsection (a)(1) shall be designated by 
                the President to serve as Chairperson of the Board of 
                Directors.
                    (B) Term.--Except as provided in subsection 
                (c)(1)(A), the Chairperson shall be appointed for a 
                term of 5 years, unless removed before the end of such 
                term by the President under subparagraph (C).
                    (C) Removal for cause.--The President may remove 
                the Chairperson for inefficiency, neglect of duty, or 
                malfeasance in office.
                    (D) Duties and authorities.--
                            (i) In general.--The Chairperson--
                                    (I) shall--
                                            (aa) be the active 
                                        executive officer of the 
                                        Corporation, subject to 
                                        supervision by the Board of 
                                        Directors;
                                            (bb) oversee the prudential 
                                        operations of each regulated 
                                        entity; and
                                            (cc) ensure that each 
                                        approved entity and regulated 
                                        entity operates in a safe and 
                                        sound manner, including--

                                                    (AA) through the 
                                                maintenance of adequate 
                                                capital, standards, and 
                                                internal controls; and

                                                    (BB) by ensuring 
                                                compliance with the 
                                                rules, regulations, 
                                                guidelines, and orders 
                                                issued pursuant to this 
                                                Act; and

                                    (II) may exercise such incidental 
                                powers as may be necessary or 
                                appropriate to assist the Corporation 
                                in fulfilling the duties and 
                                responsibilities of the Corporation in 
                                the supervision and regulation of each 
                                approved entity and regulated entity.
                            (ii) Delegation.--The Chairperson may 
                        delegate to officers and employees of the 
                        Corporation any of the functions, powers, or 
                        duties of the Chairperson, as the Chairperson 
                        considers appropriate.
            (2) Vice chairperson.--
                    (A) Designation.--1 of the members appointed 
                pursuant to subsection (a)(1) shall be designated by 
                the President to serve as Vice Chairperson of the Board 
                of Directors.
                    (B) Term.--Except as provided in subsection 
                (c)(1)(B), the Vice Chairperson shall be appointed for 
                a term of 5 years, unless removed before the end of 
                such term by the President under subparagraph (C).
                    (C) Removal for cause.--The President may remove 
                the Vice Chairperson for inefficiency, neglect of duty, 
                or malfeasance in office.
            (3) Acting chairperson.--
                    (A) During vacancy in the position of 
                chairperson.--Except as provided in section 402, in the 
                event of a vacancy in the position of Chairperson of 
                the Board of Directors or during the absence or 
                disability of the Chairperson, the Vice Chairperson 
                shall act as Chairperson.
                    (B) During vacancies in the position of chairperson 
                and vice chairperson.--Except as provided in section 
                402, in the event of vacancies in the positions of 
                Chairperson and Vice Chairperson, or during the absence 
                or disability of both the Chairperson and the Vice 
                Chairperson, the President shall designate 1 of the 
                other members appointed pursuant to subsection (a)(1) 
                as Acting Chairperson.
                    (C) Retention of authority.--Any person confirmed 
                to serve as Chairperson, or acting as Chairperson, 
                whether designated to act as such by the President 
                under this paragraph or acting in such capacity by 
                operation of this paragraph or section 402, shall for 
                the period that such person is serving as Chairperson 
                or acting as Chairperson--
                            (i) act for all purposes as the 
                        Chairperson; and
                            (ii) have all the rights, duties, powers, 
                        and responsibilities of the Chairperson.
    (c) Staggered Terms; Term Continuation.--
            (1) Terms.--
                    (A) Term of initial chairperson.--The initial 
                member of the Board of Directors appointed pursuant to 
                subsection (a)(1) and designated as Chairperson under 
                subsection (b)(1) shall serve a term of 30 months.
                    (B) Term of initial vice chairperson.--The initial 
                member of the Board of Directors appointed pursuant to 
                subsection (a)(1) and designated as Vice Chairperson 
                under subsection (b)(2) shall serve a term of 30 
                months.
                    (C) Term of other appointed members.--1 of the 
                other initial members of the Board of Directors 
                appointed pursuant to subsection (a)(1) and not 
                designated as Chairperson or Vice Chairperson under 
                subsection (b) shall serve a term of 30 months and the 
                other 2 initial members shall serve a term of 4 years.
                    (D) All other terms.--After the expiration of the 
                initial terms under subparagraphs (A) through (C), all 
                subsequent members of the Board of Directors appointed 
                pursuant to subsection (a)(1) shall serve for a term of 
                5 years.
            (2) Continuation of service.--Each member of the Board of 
        Directors appointed pursuant to subsection (a)(1), including 
        any member appointed to serve as Chairperson or Vice 
        Chairperson, may continue to serve after the expiration of the 
        term of office to which such member was appointed until the 
        expiration of the next session of Congress subsequent to the 
        expiration of said fixed term of office.
    (d) Vacancy; Manner of Fulfillment.--Any vacancy on the Board of 
Directors shall be filled in the manner in which the original 
appointment was made, and the person appointed to fill such vacancy 
shall be appointed only for the remainder of such term.
    (e) Compensation of Members.--
            (1) Chairperson.--The Chairperson shall receive 
        compensation at the rate prescribed for Level II of the 
        Executive Schedule under section 5313 of title 5, United States 
        Code.
            (2) Other appointed members.--All members of the Board of 
        Directors not described in paragraph (1) shall receive 
        compensation at the rate prescribed for Level III of the 
        Executive Schedule under section 5314 of title 5, United States 
        Code.
    (f) Ineligibility for Other Offices During Service; Postservice 
Restriction.--
            (1) Restrictions during service.--No member of the Board of 
        Directors may, during the time such member is serving in such 
        capacity and for the 2-year period beginning on the date such 
        member ceases to serve as a member of the Board of Directors--
                    (A) be an officer, employee, or director of any--
                            (i) insured depository institution;
                            (ii) insured depository institution holding 
                        company;
                            (iii) Federal Reserve bank;
                            (iv) regulated entity;
                            (v) approved entity; or
                            (vi) non-bank financial institution or 
                        company that originates eligible mortgage 
                        loans; or
                    (B) hold stock or have beneficial ownership in 
                any--
                            (i) insured depository institution;
                            (ii) insured depository institution holding 
                        company;
                            (iii) regulated entity;
                            (iv) approved entity; or
                            (v) non-bank financial institution or 
                        company that originates eligible mortgage 
                        loans.
            (2) Certification.--Upon taking office, each member of the 
        Board of Directors shall certify under oath that such member 
        has complied, and will comply, with this subsection and such 
        certification shall be filed with the secretary of the Board of 
        Directors.
    (g) Status of Directors, Officers, and Employees.--
            (1) In general.--A member of the Board of Directors, 
        officer, or employee of the Corporation has no liability under 
        the Securities Act of 1933 (15 U.S.C. 77b et seq.) with respect 
        to any claim arising out of or resulting from any act or 
        omission by such person within the scope of such person's 
        employment in connection with any transaction involving the 
        disposition of assets (or any interests in any assets or any 
        obligations backed by any assets) by the Corporation. This 
        subsection shall not be construed to limit personal liability 
        for criminal acts or omissions, willful or malicious 
        misconduct, acts or omissions for private gain, or any other 
        acts or omissions outside the scope of such person's 
        employment.
            (2) Effect on other law.--This subsection does not affect--
                    (A) any other immunities and protections that may 
                be available to such person under applicable law with 
                respect to such transactions; or
                    (B) any other right or remedy against the 
                Corporation, against the United States under applicable 
                law, or against any person other than a person 
                described in paragraph (1) participating in such 
                transactions.
            (3) Rule of construction.--This subsection shall not be 
        construed to limit or alter in any way the immunities that are 
        available under applicable law for Federal officials and 
        employees not described in this subsection.
    (h) Independence.--
            (1) In general.--Each member of the Board of Directors 
        shall be independent in performing his or her duties.
            (2) Independence determination.--In order to be considered 
        independent for purposes of this subsection, a member of the 
        Board of Directors--
                    (A) may not, other than in his or her capacity as a 
                member of the Board of Directors or any committee 
                thereof--
                            (i) accept any consulting, advisory, or 
                        other compensatory fee from the Corporation; or
                            (ii) be a person associated with the 
                        Corporation or with any affiliate of the 
                        Corporation; and
                    (B) shall be disqualified from any deliberation 
                involving any transaction of the Corporation in which 
                the member has a financial interest in the outcome of 
                the transaction.
    (i) Administration.--Except as may be otherwise provided in this 
Act, the Board of Directors shall administer the affairs of the 
Corporation fairly and impartially and without discrimination.
    (j) Voting.--A majority vote of all members of the Board of 
Directors is necessary to resolve all voting issues of the Corporation.
    (k) Meetings.--The Board of Directors shall meet in accordance with 
the bylaws of the Corporation--
            (1) at the call of the Chairperson; and
            (2) not less frequently than once each quarter.
    (l) Quorum.--3 members of the Board of Directors then in office 
shall constitute a quorum.
    (m) Bylaws.--A majority of the members of the Board of Directors 
may amend the bylaws of the Corporation.

SEC. 203. ADVISORY COMMITTEE.

    (a) Establishment.--
            (1) In general.--The Corporation shall establish an 
        Advisory Committee for the purpose of advising the Office of 
        Consumer and Market Access and the Board of Directors on 
        developments in the primary and secondary mortgage markets that 
        have material effects on the ongoing mission of the 
        Corporation.
            (2) Duties.--The Advisory Committee shall provide advice 
        and recommendations to the Office of Consumer and Market Access 
        and the Board of Directors as to material developments in the 
        following areas:
                    (A) Housing prices and affordability.
                    (B) The effectiveness of consumer protections in 
                the housing market.
                    (C) Volume and characteristics of eligible mortgage 
                loan originations.
                    (D) The condition of the rental housing market.
                    (E) Small lender participation in the secondary 
                mortgage market.
                    (F) Access to credit in rural and underserved 
                communities.
                    (G) Competition among approved entities.
                    (H) Fair, equitable, and nondiscriminatory access 
                to mortgage credit for individuals and communities.
    (b) Composition and Qualifications.--
            (1) In general.--The Advisory Committee shall be composed 
        of 14 members as follows:
                    (A) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience working with, non-depository mortgage 
                originators having less than $10,000,000,000 in total 
                assets.
                    (B) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience working with, credit unions having less than 
                $10,000,000,000 in total assets.
                    (C) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience working with, banks having less than 
                $10,000,000,000 in total assets.
                    (D) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience working with, banks having more than 
                $500,000,000,000 in total assets.
                    (E) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocation, or regulatory 
                experience working with, regional banks having more 
                than $10,000,000,000 and less than $500,000,000,000 in 
                total assets.
                    (F) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience with private mortgage insurance.
                    (G) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience with securitization.
                    (H) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                and practical, disciplinary, vocational, or regulatory 
                experience with investor protection and institutional 
                investors.
                    (I) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                or practical, disciplinary, or vocational experience 
                with consumer protection.
                    (J) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                or practical, disciplinary, or vocational experience 
                with policies and programs to support sustainable 
                homeownership.
                    (K) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                or practical, disciplinary, or vocational experience 
                with multifamily housing development.
                    (L) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                or practical, disciplinary, or vocational experience 
                with affordable rental housing.
                    (M) 1 member who shall have a demonstrated 
                technical, academic, or professional understanding of, 
                or practical, disciplinary, or vocational experience 
                with asset management.
                    (N) 1 member who shall have a demonstrated 
                professional understanding of and vocational experience 
                with State bank, non-bank, or insurance regulation.
            (2) Experience with rural housing.--Of the members of the 
        Advisory Committee identified under subparagraphs (B) and (C) 
        of paragraph (1), at least 1 shall be required to have 
        practical, disciplinary, or vocational experience working in 
        rural areas and with rural borrowers.
            (3) Experience with fair lending.--Of the members of the 
        Advisory Committee identified under paragraph (1), at least 1 
        shall be required to have demonstrated practical, academic, 
        disciplinary, or vocational experience with fair lending 
        practices and policies and programs that promote fair, 
        equitable, and nondiscriminatory access to credit in 
        underserved markets.
    (c) Member Selection.--Members of the Advisory Committee shall be 
appointed to the Committee by the Chairperson, subject to approval by a 
majority of the Board of Directors.
    (d) Meetings.--The Advisory Committee shall meet no less frequently 
than once during each calendar quarter.

SEC. 204. OFFICE OF THE INSPECTOR GENERAL.

    (a) Office of Inspector General.--
            (1) Establishment.--On the agency transfer date, there is 
        established the Office of the Inspector General of the Federal 
        Mortgage Insurance Corporation.
            (2) Head of office.--
                    (A) In general.--The head of the Office of the 
                Inspector General of the Federal Mortgage Insurance 
                Corporation shall be the Inspector General of the 
                Federal Mortgage Insurance Corporation, who shall be 
                appointed by the President, by and with the advice and 
                consent of the Senate, in accordance with section 3(a) 
                of the Inspector General Act of 1978 (5 U.S.C. App.).
                    (B) Transitional provision.--Notwithstanding 
                subparagraph (A), during the period beginning on the 
                agency transfer date and ending on the date on which 
                the Inspector General of the Federal Mortgage Insurance 
                Corporation is confirmed, the person serving as the 
                Inspector General or the Acting Inspector General for 
                the Office of the Inspector General within the Federal 
                Housing Finance Agency on the date that is 1 day prior 
                to the agency transfer date shall act for all purposes 
                as, and with the full powers of, the Inspector General 
                of the Federal Mortgage Insurance Corporation.
            (3) Office of the inspector general authorities.--Beginning 
        on the agency transfer date, the authority of the Office of the 
        Inspector General of the Federal Mortgage Insurance Corporation 
        shall include all rights and responsibilities of the Office of 
        the Inspector General of the Federal Housing Finance Agency as 
        such rights and responsibilities existed on the date that is 1 
        day prior to the agency transfer date.
    (b) Provision of Property and Facilities.--The Chairperson shall 
provide the Office of the Inspector General of the Federal Mortgage 
Insurance Corporation with--
            (1) appropriate and adequate office space at each central 
        and field office location established by the Corporation, 
        together with such equipment, office supplies, and 
        communications facilities and services as may be necessary for 
        the Inspector General of the Federal Mortgage Insurance 
        Corporation to operate such offices; and
            (2) the necessary maintenance services for--
                    (A) any office provided under paragraph (1); and
                    (B) the equipment and facilities located in any 
                such office.
    (c) Hiring of Employees, Experts, and Consultants.--Notwithstanding 
paragraphs (7) and (8) of section 6(a) of the Inspector General Act of 
1978 (5 U.S.C. App.), the Inspector General of the Federal Mortgage 
Insurance Corporation may select, appoint, and employ such officers and 
employees as may be necessary--
            (1) for carrying out the functions, powers, and duties of 
        the Office of the Inspector General; and
            (2) to obtain the temporary or intermittent services of 
        experts or consultants or an organization of experts or 
        consultants, subject to the applicable laws and regulations 
        that govern such selections, appointments, and employment, and 
        the obtaining of such services, within the Corporation.
    (d) Submission of Budget.--
            (1) In general.--For each fiscal year, the Inspector 
        General of the Federal Mortgage Insurance Corporation shall 
        transmit a budget estimate and request for funds to the 
        Chairperson.
            (2) Required content.--The budget request required under 
        paragraph (1) shall--
                    (A) specify--
                            (i) the aggregate amount of funds requested 
                        for such fiscal year for the operations of the 
                        Office of the Inspector General of the Federal 
                        Mortgage Insurance Corporation; and
                            (ii) the amount requested for all training 
                        needs, including a certification from the 
                        Inspector General that the amount requested 
                        satisfies all training requirements for the 
                        Office of the Inspector General of the Federal 
                        Mortgage Insurance Corporation for that fiscal 
                        year; and
                    (B) specifically--
                            (i) identify and specify any resources 
                        necessary to support the Council of the 
                        Inspectors General on Integrity and Efficiency; 
                        and
                            (ii) justify the need for any resources 
                        identified and specified under clause (i).
    (e) Amendments to Inspector General Act of 1978.--The Inspector 
General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in section 6(e)(3), by inserting ``Federal Mortgage 
        Insurance Corporation'' after ``Federal Emergency Management 
        Agency'';
            (2) in section 8G(a)(2), by striking ``the Federal Housing 
        Finance Board''; and
            (3) in section 12--
                    (A) in paragraph (1), by striking ``Director of the 
                Federal Housing Finance Agency'' and inserting 
                ``Chairperson of the Federal Mortgage Insurance 
                Corporation''; and
                    (B) in paragraph (2), by striking ``Federal Housing 
                Finance Agency'' and inserting ``Federal Mortgage 
                Insurance Corporation''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the agency transfer date.

SEC. 205. STAFF, EXPERTS, AND CONSULTANTS.

    (a) Compensation.--
            (1) In general.--The Board of Directors may appoint and fix 
        the compensation of such officers, attorneys, economists, 
        examiners, and other employees as may be necessary for carrying 
        out the functions of the Corporation.
            (2) Rates of pay.--Rates of basic pay and the total amount 
        of compensation and benefits for all employees of the 
        Corporation may be--
                    (A) set and adjusted by the Board of Directors 
                without regard to the provisions of chapter 51 or 
                subchapter III of chapter 53 of title 5, United States 
                Code; and
                    (B) reasonably increased, notwithstanding any 
                limitation set forth in paragraph (3), if the Board of 
                Directors determines such increases are necessary to 
                attract and hire qualified employees.
            (3) Parity.--The Board of Directors may provide additional 
        compensation and benefits to employees of the Corporation, of 
        the same type of compensation or benefits that are then being 
        provided by any agency referred to under section 1206 of the 
        Financial Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 1833b) or, if not then being provided, could be 
        provided by such an agency under applicable provisions of law, 
        rule, or regulation. In setting and adjusting the total amount 
        of compensation and benefits for employees, the Board of 
        Directors shall consult with and seek to maintain comparability 
        with the agencies referred to under section 1206 of the 
        Financial Institutions Reform, Recovery, and Enforcement Act of 
        1989 (12 U.S.C. 1833b).
    (b) Detail of Government Employees.--Upon the request of the Board 
of Directors, any Federal Government employee may be detailed to the 
Corporation without reimbursement from the Corporation, and such detail 
shall be without interruption or loss of civil service status or 
privilege.
    (c) Experts and Consultants.--The Corporation may procure the 
services of experts and consultants as the Corporation considers 
necessary or appropriate.
    (d) Technical and Professional Advisory Committees.--The Board of 
Directors may appoint such special advisory, technical, or professional 
committees as may be useful in carrying out the functions of the 
Corporation.

SEC. 206. REPORTS; TESTIMONY; AUDITS.

    (a) Reports.--
            (1) In general.--After the system certification date, the 
        Corporation shall submit, on an annual basis, to the Committee 
        on Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        a written report of its operations, activities, budget, 
        receipts, and expenditures for the preceding 12-month period.
            (2) Contents of report.--The report required under 
        subsection (a) shall include--
                    (A) an analysis of--
                            (i) with respect to the Mortgage Insurance 
                        Fund established under section 303(e)--
                                    (I) the current financial condition 
                                of the Mortgage Insurance Fund;
                                    (II) the exposure of the Mortgage 
                                Insurance Fund to economic conditions 
                                and an analysis of any stress tests 
                                conducted with respect to the Fund;
                                    (III) an estimate of the resources 
                                needed for the Mortgage Insurance Fund 
                                to achieve the purposes of this Act; 
                                and
                                    (IV) any findings, conclusions, and 
                                recommendations for legislative and 
                                administrative actions considered 
                                appropriate to the future activities of 
                                the Corporation;
                            (ii) whether or not the actual reserve 
                        ratio of the Mortgage Insurance Fund met--
                                    (I) the reserve ratio set for the 
                                preceding 12-month period; or
                                    (II) the reserve ratio goals 
                                established in section 303(e)(7);
                            (iii) the detailed plan of the Corporation 
                        to ensure that the goals set for the reserve 
                        ratio for the Mortgage Insurance Fund are met 
                        and maintained for the next 12-month period;
                            (iv) the state of the private label 
                        mortgage-backed securities market, including 
                        the submission of a reasonable set of 
                        administrative, regulatory, and legislative 
                        proposals on how to limit the Federal 
                        Government's footprint in the secondary 
                        mortgage market;
                            (v) how and the extent to which the 
                        Corporation and the Small Lender Mutual 
                        established under section 315(a)(1) has 
                        fulfilled its obligations to ensure that 
                        community and mid-size banks, credit unions, 
                        and other small lenders have equitable and 
                        meaningful access to the secondary mortgage 
                        market; and
                            (vi) the report required under section 
                        208(b)(2)(B);
                    (B) a discussion of the significant problems faced 
                by consumers in shopping for or obtaining mortgage 
                credit or services;
                    (C) a justification of the Corporation's budget for 
                the preceding 12-month period;
                    (D) a list of the significant rules and orders 
                adopted by the Corporation, as well as other 
                significant initiatives conducted by the Corporation, 
                during the preceding 12-month period and the plan of 
                the Corporation for rules, orders, or other initiatives 
                to be undertaken during the next 12-month period;
                    (E) a list, with a brief statement of the issues, 
                of the public supervisory and enforcement actions to 
                which the Corporation was a party during the preceding 
                12-month period;
                    (F) the actions of the Corporation taken regarding 
                rules, orders, and supervisory actions with respect to 
                covered entities; and
                    (G) an assessment of significant actions by State 
                attorneys general or State regulators relating to 
                Federal law within the Corporation's jurisdiction.
    (b) Testimony.--After the system certification date, the 
Chairperson shall appear annually before the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives to provide testimony on the 
report submitted under subsection (a).
    (c) Reports to the Office of Management and Budget.--
            (1) Financial operating plans and forecasts.--The 
        Corporation shall provide to the Director of the Office of 
        Management and Budget copies of the--
                    (A) Corporation's financial operating plans and 
                forecasts as prepared by the Corporation in the 
                ordinary course of its operations; and
                    (B) quarterly reports of the Corporation's 
                financial condition and results of operations as 
                prepared by the Corporation in the ordinary course of 
                its operations.
            (2) Rule of construction.--This subsection shall not be 
        construed to--
                    (A) require any obligation on the part of the 
                Corporation to consult with, or obtain the consent or 
                approval of, the Director of the Office of Management 
                and Budget with respect to any reports, plans, 
                forecasts, or other information referred to in 
                paragraph (1); or
                    (B) authorize any jurisdiction or oversight by the 
                Director of the Office of Management and Budget over 
                the affairs or operations of the Corporation.
    (d) Audit.--
            (1) Annual audit.--The Comptroller General of the United 
        States shall annually audit--
                    (A) the financial transactions of the Corporation; 
                and
                    (B) the Mortgage Insurance Fund.
            (2) Auditing standards.--The audit required under this 
        subsection shall be completed in accordance with the United 
        States generally accepted government auditing standards as may 
        be prescribed by the Comptroller General.
            (3) Place of audit.--The audit required under this 
        subsection shall be conducted at the place or places where 
        accounts of the Corporation are normally kept.
            (4) Access.--Notwithstanding any other provision of law, 
        upon request and in such reasonable form as the Comptroller 
        General may request, the Comptroller General shall have access 
        to--
                    (A) any records, books, accounts, documents, 
                reports, files, papers, property, or other information 
                under the control of or used by the Corporation;
                    (B) any records or other information under the 
                control of a person or entity acting on behalf of or 
                under the authority of the Corporation, to the extent 
                that such records or other information are relevant to 
                an audit required under this subsection; and
                    (C) the officers, directors, employees, financial 
                advisors, staff, working groups, and agents and 
                representatives of the Corporation (relating to the 
                activities on behalf of the Corporation of such agent 
                or representative).
            (5) Rule of construction.--All records, books, accounts, 
        documents, reports, files, papers, property, or other 
        information referred to in paragraph (4) shall remain in the 
        possession and custody of the Corporation.
            (6) Copies.--The Comptroller General may, as the 
        Comptroller General considers appropriate, make and retain 
        copies of the records, books, accounts, documents, reports, 
        files, papers, property, or other information to which the 
        Comptroller General is granted access under paragraph (3).
            (7) Report.--
                    (A) Submission to congress.--The Comptroller 
                General shall submit to Congress a report of each 
                annual audit conducted under this subsection not later 
                than six and one-half months following the close of the 
                year covered by such audit.
                    (B) Required content.--The report required under 
                subparagraph (A) shall--
                            (i) set forth the scope of the audit; and
                            (ii) include--
                                    (I) the statement of assets and 
                                liabilities, as well as any surplus or 
                                deficit;
                                    (II) the statement of income and 
                                expenses;
                                    (III) the statement of sources and 
                                application of funds;
                                    (IV) such comments and information 
                                as the Comptroller General may deem 
                                necessary to inform Congress of the 
                                financial operations and condition of 
                                the Corporation and the Mortgage 
                                Insurance Fund, together with such 
                                recommendations with respect thereto as 
                                the Comptroller General may deem 
                                advisable; and
                                    (V) a description of any program, 
                                expenditure, or other financial 
                                transaction or undertaking observed in 
                                the course of the audit, which, in the 
                                opinion of the Comptroller General, has 
                                been carried on or made without 
                                authority of law.
                    (C) Copies.--A copy of each report required under 
                subparagraph (A) shall be furnished to the President 
                and to the Chairperson at the time such report is 
                submitted to Congress.
            (8) Assistance and costs.--
                    (A) Permitted use of outside assistance.--For the 
                purpose of conducting an audit under this subsection, 
                the Comptroller General may employ by contract, without 
                regard to section 3709 of the Revised Statutes of the 
                United States (41 U.S.C. 6101), professional services 
                of firms and organizations of certified public 
                accountants for temporary periods or for special 
                purposes.
                    (B) Cost of audit covered by corporation.--
                            (i) In general.--Upon the request of the 
                        Comptroller General, the Chairperson shall 
                        transfer to the Comptroller General from funds 
                        available the amount requested by the 
                        Comptroller General to cover the reasonable 
                        costs of any audit and report conducted by the 
                        Comptroller General pursuant to this 
                        subsection.
                            (ii) Credit of funds.--The Comptroller 
                        General shall credit funds transferred under 
                        clause (i) to the account at the United States 
                        Treasury established for salaries and expenses 
                        of the Government Accountability Office, and 
                        such amounts shall be available upon receipt 
                        and without fiscal year limitation to cover the 
                        full costs of the audit and report.

SEC. 207. SPECIFIC OFFICES.

    (a) Establishment.--
            (1) General authority.--The Corporation--
                    (A) shall establish within the Corporation any 
                office required to be established by this Act;
                    (B) may establish such other offices or suboffices 
                as are necessary and proper for the functioning of the 
                Corporation; and
                    (C) may eliminate or consolidate any office or 
                suboffice established under subparagraph (B).
            (2) Appointments.--Except as may otherwise be specifically 
        provided, the head of any office established pursuant to 
        paragraph (1) shall be appointed by the Board of Directors.
    (b) Underwriting.--The Corporation shall establish an Office of 
Underwriting in the Corporation, whose functions shall include ensuring 
that eligible single-family mortgage loans that collateralize single-
family covered securities insured under this Act comply with the 
requirements of this Act and minimize risk to the Mortgage Insurance 
Fund.
    (c) Securitization.--The Corporation shall establish an Office of 
Securitization in the Corporation, whose functions shall include--
            (1) overseeing and supervising the Securitization Platform 
        established under part I of subtitle C of title III; and
            (2) ensuring that small mortgage lenders have equitable 
        access to--
                    (A) the Securitization Platform, including through 
                the development and facilitation of options such as 
                multi-guarantor pools and multi-lender pools of 
                eligible single-family mortgage loans to be securitized 
                and issued as single-family covered securities through 
                such Platform; and
                    (B) any small lender mutual established or approved 
                under section 315.
    (d) Federal Home Loan Banks.--
            (1) In general.--Upon the system certification date, the 
        Corporation shall establish an Office of Federal Home Loan Bank 
        Supervision in the Corporation, whose functions shall include--
                    (A) overseeing, coordinating, and supervising the 
                Federal Home Loan Banks and the Federal Home Loan Bank 
                System;
                    (B) supervising any authorized subsidiary of 1 or 
                more Federal Home Loan Banks that is an approved 
                aggregator pursuant to section 312(m), including with 
                respect to the capitalization of any such subsidiary;
                    (C) serving as the central point of coordination 
                within the Corporation with respect to any regulations 
                or regulatory actions relating to the role of a Federal 
                Home Loan Bank, or subsidiary or joint office thereof, 
                as a covered entity; and
                    (D) monitoring whether any regulation or regulatory 
                action taken with respect to a Federal Home Loan Bank, 
                or subsidiary or joint office thereof, approved under 
                section 312 in its role as a covered entity does not 
                adversely impact the traditional liquidity and advance 
                mission of the Federal Home Loan Banks and Federal Home 
                Loan Bank System.
            (2) Transfer of functions.--Effective on the system 
        certification date, there are transferred to the Office of 
        Federal Home Loan Bank Supervision in the Corporation all 
        functions of the Federal Housing Finance Agency of the 
        Corporation relating to--
                    (A) the supervision of the Federal Home Loan Banks 
                and the Federal Home Loan Bank System; and
                    (B) all rulemaking authority of the Federal Housing 
                Finance Agency of the Corporation relating to the 
                Federal Home Loan Banks and the Federal Home Loan Bank 
                System.

SEC. 208. OFFICE OF CONSUMER AND MARKET ACCESS.

    (a) Establishment.--The Corporation shall establish an Office of 
Consumer and Market Access in the Corporation, whose functions shall 
include the responsibilities set forth under subsection (b).
    (b) Responsibilities.--
            (1) Administering the market access fund.--The Office of 
        Consumer and Market Access shall administer the Market Access 
        Fund established under section 504.
            (2) Monitoring, coordinating, and facilitating the needs of 
        underserved markets.--
                    (A) In general.--The Office of Consumer and Market 
                Access shall--
                            (i) monitor, on a macro level, the 
                        national, regional, and area single-family and 
                        multifamily housing finance markets to identify 
                        underserved markets, communities, and consumers 
                        in accordance with the market segments 
                        identified and defined under section 210;
                            (ii) coordinate with Federal and State 
                        agencies regarding existing policies and 
                        initiatives that address--
                                    (I) the housing needs of 
                                underserved markets, communities, and 
                                consumers; and
                                    (II) the affordable housing needs 
                                of markets, communities, and consumers; 
                                and
                            (iii) provide information on business 
                        practices and technical assistance to market 
                        participants regarding communities identified 
                        as underserved with regards to addressing the 
                        housing needs of consumers in that community.
                    (B) Annual state of covered securities market 
                report.--
                            (i) In general.--The Office of Consumer and 
                        Market Access shall, on an annual basis, submit 
                        a report to Congress on the state of the 
                        covered securities market, and make such report 
                        available to the public.
                            (ii) Required content.--The report required 
                        under clause (i) shall include--
                                    (I) an assessment of the extent to 
                                which the covered securities market is 
                                providing liquidity to eligible 
                                borrowers in all segments of the 
                                mortgage origination primary market, 
                                including underserved segments 
                                identified and defined by the 
                                Corporation under section 210; and
                                    (II) recommendations for such 
                                legislative, regulatory, or 
                                administrative actions as may be 
                                necessary to address any deficiencies 
                                in the availability of mortgage credit 
                                in any market or region identified 
                                pursuant to clause (i) via existing 
                                Federal programs or the covered 
                                securities market.
                            (iii) Reliance on public data.--In 
                        preparing each report required under this 
                        subparagraph, the Office of Consumer and Market 
                        Access--
                                    (I) shall use, to the maximum 
                                extent practicable, publicly available 
                                data and data otherwise collected under 
                                this Act; and
                                    (II) shall not include or review 
                                any confidential information or 
                                information collected by the 
                                Corporation as part of its supervisory 
                                or examination authorities that is 
                                confidential.
                    (C) Incentive study.--The Office of Consumer and 
                Market Access shall, on a biennial basis, conduct a 
                study on incentives to encourage mortgage lenders and 
                mortgage originators to address the housing needs of 
                underserved markets and communities.
                    (D) Inclusion in annual report.--The Corporation 
                shall include the report required in subparagraph (B) 
                and the study required in subparagraph (C) in the 
                annual report required under section 206.
                    (E) Consultation.--The Office of Consumer and 
                Market Access shall consult with the Federal Home Loan 
                Banks and any small lender mutual established or 
                approved under section 315 on approaches, methods, and 
                practices designed to address the housing needs of 
                underserved markets and communities.

SEC. 209. OFFICE OF MULTIFAMILY HOUSING.

    The Corporation shall establish an Office of Multifamily Housing in 
the Corporation, whose functions shall include--
            (1) developing, adopting, and publishing specific 
        eligibility criteria to ensure that eligible multifamily 
        mortgage loans that collateralize multifamily covered 
        securities insured under this Act comply with the requirements 
        of this Act; and
            (2) performing any other activity relating to the 
        multifamily housing finance system that the Corporation may 
        determine appropriate to fulfill the requirements of this Act.

SEC. 210. EQUITABLE ACCESS FOR LENDERS AND BORROWERS.

    (a) Equitable Access in Underserved Market Segments.--
            (1) In general.--Subject to subsection (b), the Corporation 
        shall seek to support the primary mortgage market for eligible 
        mortgage loans on an equitable, nondiscriminatory, and non-
        exclusionary basis to help ensure that all eligible borrowers 
        have access to mortgage credit, including underserved segments 
        of the primary mortgage market as identified and defined by the 
        Corporation under paragraph (2).
            (2) Underserved market segments.--The Corporation shall, by 
        regulation, identify and define not more than 8 segments of the 
        primary mortgage market in which lenders and eligible borrowers 
        have been determined to lack equitable access to the housing 
        finance system facilitated by the Corporation. The regulation 
        required under this paragraph shall set forth the criteria by 
        which the Corporation identified such underserved market 
        segments. The identified underserved market segments required 
        to be identified and defined under this paragraph may include 
        the following:
                    (A) Historically underserved communities, including 
                rural and urban areas.
                    (B) Manufactured housing.
                    (C) Small balance loans.
                    (D) Low- and moderate-income creditworthy 
                borrowers.
                    (E) Preservation of existing housing stock created 
                by State or Federal laws.
                    (F) Affordable rental housing.
            (3) Reports on serving underserved market segments.--
                    (A) Annual reports.--The Corporation shall require 
                that each approved guarantor and approved aggregator 
                engaged in a covered guarantee transaction or in a 
                covered market-based risk-sharing transaction submit on 
                annual basis a public report describing the actions 
                taken by such approved guarantor or approved aggregator 
                during the year, consistent with its business judgment, 
                to provide credit to the underserved market segments 
                identified and defined by the Corporation pursuant to 
                this subsection, including corporate practices designed 
                to serve such identified market segments. The annual 
                report required under this subparagraph shall be 
                approved by the board of directors and signed by the 
                chief executive officer of the approved guarantor or 
                approved aggregator submitting the report.
                    (B) Report template.--The Corporation may establish 
                an optional template for the annual report required 
                under subparagraph (A).
                    (C) Report not subject to prior review or 
                approval.--An annual report required under subparagraph 
                (A) shall not be subject to prior review or approval by 
                the Corporation.
                    (D) Coordination with other federal and state 
                agencies.--The Corporation shall, in establishing the 
                requirements for the annual report required under 
                subparagraph (A), coordinate with other Federal and 
                State agencies, as necessary, to reduce duplicative 
                reporting requirements.
    (b) Limitations.--
            (1) Limitation on use of authorities and information.--In 
        carrying out this title, the Corporation shall not interfere 
        with the exercise of business judgment of an approved 
        aggregator or approved guarantor in determining which specific 
        mortgage loans to include in a covered guarantee transaction or 
        a covered market-based risk-sharing transaction, including 
        through the Corporation's use of--
                    (A) the approval process for a guarantor or an 
                aggregator established under subtitle B of title III;
                    (B) its general supervisory and examination 
                authorities under subtitle B of title III; or
                    (C) information collected under this section, 
                section 501, or section 208.
            (2) Rule of construction.--Nothing in this subsection shall 
        prevent the imposition of the variable incentive-based fees 
        authorized in section 501 nor shall it exempt covered entities 
        from compliance with the Fair Housing Act (42 U.S.C. 3601 et 
        seq.) and the Equal Credit Opportunity Act (15 U.S.C. 1691 et 
        seq.) as required in section 408(d).
            (3) Consistency with safety and soundness.--The Corporation 
        shall take appropriate measures designed to ensure that the 
        requirements under this section are implemented in a manner 
        consistent with safety and soundness principles.

SEC. 211. OFFICE OF TAXPAYER PROTECTION.

    (a) Establishment.--The Corporation shall establish an Office of 
Taxpayer Protection whose functions shall include the responsibilities 
set forth under subsection (b).
    (b) Responsibilities.--
            (1) Study on market concentration and the impact of the 
        fmic guarantee.--The Office of Taxpayer Protection shall, on a 
        semi-annual basis, conduct a study and submit to the Committee 
        on Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        a report on--
                    (A) market concentration in the secondary mortgage 
                markets, including the exposure of the Mortgage 
                Insurance Fund to the top 10 largest approved 
                aggregators and approved guarantors, as measured by the 
                total outstanding principal balance at origination of 
                eligible single-family mortgage loans collateralizing 
                single-family covered securities for which such 
                aggregator or guarantor has obtained insurance provided 
                under this Act in the previous 6 months;
                    (B) the general state of underwriting standards in 
                the origination of eligible single-family mortgage 
                loans and the effect of insurance provided under this 
                Act on such underwriting standards;
                    (C) whether the insurance provided under this Act 
                produces a subsidy to any approved entity or approved 
                entities;
                    (D) a comparison of the treatment in the secondary 
                mortgage markets of mortgage-backed securities 
                guaranteed by the Government National Mortgage 
                Association and single-family covered securities 
                insured under this Act, which shall include--
                            (i) a discussion of the characteristics 
                        of--
                                    (I) mortgage loans collateralizing 
                                mortgage-backed securities guaranteed 
                                by the Government National Mortgage 
                                Association; and
                                    (II) eligible single-family 
                                mortgage loans collateralizing single-
                                family covered securities insured under 
                                this Act; and
                            (ii) an analysis of any actions taken in 
                        the secondary mortgage markets to manipulate 
                        the guarantee provided by the Government 
                        National Mortgage Association and the insurance 
                        provided under this Act to the advantage of the 
                        secondary mortgage markets; and
                    (E) what steps the Corporation has taken to 
                minimize any potential long-term costs to the taxpayers 
                and the Mortgage Insurance Fund relating to risks 
                identified in subparagraphs (A) through (D).
            (2) Annual report on taxpayer protection and the exposure 
        of the mortgage insurance fund.--
                    (A) In general.--The Office of Taxpayer Protection 
                shall, on an annual basis, submit a report to the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services of the 
                House of Representatives containing the information 
                required under subparagraph (B).
                    (B) Required content.--The report required under 
                subparagraph (A) shall--
                            (i) include an analysis of the adequacy 
                        of--
                                    (I) the first loss position 
                                required under this Act, including the 
                                sufficiency of any permissible risk-
                                sharing or risk mitigation permitted as 
                                a substitute for equity capital 
                                intended to cover the initial credit 
                                losses on a covered security prior to 
                                use of any amounts in the Mortgage 
                                Insurance Fund, the ability of the 
                                first loss position to absorb credit 
                                loss on covered securities, and to 
                                protect taxpayers; and
                                    (II) the performance of eligible 
                                single-family mortgage loans 
                                collateralizing single-family covered 
                                securities insured under this Act based 
                                upon current underwriting standards and 
                                how that performance differs from the 
                                performance of noneligible mortgage 
                                loans based upon the underwriting 
                                standards for such noneligible mortgage 
                                loans, including with respect to--
                                            (aa) debt to income ratio;
                                            (bb) loan to value ratios;
                                            (cc) credit history;
                                            (dd) loan documentation;
                                            (ee) occupancy status;
                                            (ff) credit enhancements;
                                            (gg) housing counseling by 
                                        a HUD-approved housing 
                                        counseling agency;
                                            (hh) loan payments;
                                            (ii) the purpose of the 
                                        loan, such as to refinance or 
                                        purchase a home;
                                            (jj) the type of loan 
                                        product, such as a 30-year 
                                        fixed interest rate mortgage 
                                        loan, a 15-year fixed interest 
                                        rate mortgage loan, or an 
                                        adjustable interest rate 
                                        mortgage loan;
                                            (kk) the mortgage loan 
                                        origination channel; and
                                            (ll) such other 
                                        underwriting criteria that 
                                        would be useful to the Director 
                                        of Taxpayer Protection; and
                            (ii) provide recommendations for such 
                        legislative, regulatory, or administrative 
                        actions to--
                                    (I) address any need to further 
                                limit overexposure of the Mortgage 
                                Insurance Fund to any 1 approved entity 
                                or business practice;
                                    (II) foster and encourage a robust 
                                private secondary mortgage market for 
                                noneligible mortgage loans and 
                                mortgage-backed securities that are not 
                                guaranteed by the Government National 
                                Mortgage Association; and
                                    (III) assist the Corporation in 
                                protecting taxpayers, including a 
                                recommendation as to whether a counter-
                                cyclical increase of the reserve ratio 
                                of the Mortgage Insurance Fund or of 
                                the capital standards required of 
                                individual approved guarantors is 
                                necessary to protect taxpayers.
            (3) Annual report on system-wide leverage.--The Office of 
        Taxpayer Protection shall, on an annual basis, submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report on system-wide leverage in the 
        secondary mortgage market.
            (4) Annual report on early payment defaults.--The Office of 
        Taxpayer Protection shall, on an annual basis, submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives a report on early payment defaults on eligible 
        single-family mortgage loans for the preceding year, which 
        shall include any eligible single-family mortgage loan that 
        becomes delinquent or that is in default within 24 months of 
        the origination of the loan.
            (5) Inclusion in annual report.--The Corporation shall 
        include the reports required under paragraphs (2) and (3) in 
        the annual report required under section 206.
            (6) Reliance on public data.--In preparing each report 
        required under this section, the Office of Taxpayer 
        Protection--
                    (A) shall use, to the maximum extent practicable, 
                publicly available data and data otherwise collected 
                under this Act; and
                    (B) shall not include or review any confidential 
                information or information collected by the Corporation 
                as part of its supervisory or examination authorities 
                that is confidential.

           TITLE III--DUTIES AND RESPONSIBILITIES OF THE FMIC

                   Subtitle A--Duties and Authorities

SEC. 301. DUTIES AND RESPONSIBILITIES.

    (a) Duties.--The principal duties of the Corporation shall be to--
            (1) carry out this Act in a manner that fulfills the 
        purposes of the Corporation as described in section 201(b);
            (2) minimize any potential long-term cost to the taxpayer, 
        including through the use of the Mortgage Insurance Fund, the 
        assessment of insurance fees, and the approval of approved 
        entities and credit risk-sharing mechanisms;
            (3) facilitate fair access to the secondary mortgage market 
        for small mortgage lenders originating eligible single-family 
        and multifamily mortgage loans, including through the 
        establishment, approval, and oversight of small lender mutuals;
            (4) ensure integrity and discipline in the mortgage market, 
        particularly by monitoring the safety and soundness of 
        regulated entities and approved entities;
            (5) ensure that approved entities maintain the capacity to 
        further the requirements of the Corporation pursuant to section 
        201(b)(5) and that approved guarantors, approved multifamily 
        guarantors, and approved aggregators are in compliance with 
        section 210(a)(3);
            (6) promote the standardization of the secondary mortgage 
        market through the use of uniform securitization agreements, 
        servicing agreements, and the Securitization Platform;
            (7) increase transparency in single-family and multifamily 
        mortgage markets, including through the National Mortgage 
        Database; and
            (8) ensure continued, widespread availability of an 
        affordable, long-term, fixed rate, prepayable mortgage, such as 
        a 30-year fixed rate mortgage.
    (b) Scope of Authority.--The authority of the Corporation shall 
include the authority to exercise such incidental powers as may be 
necessary or appropriate to fulfill the duties and responsibilities of 
the Corporation set forth in this Act.
    (c) Delegation of Authority.--The Board of Directors may delegate 
to any duly authorized employee or representative any power vested in 
the Corporation by law.

SEC. 302. STANDARDS FOR CREDIT RISK-SHARING MECHANISMS.

    (a) Approval.--
            (1) Authority.--The Corporation shall develop, adopt, and 
        publish, after notice and comment, standards for the 
        consideration and, as appropriate, the approval of credit risk-
        sharing mechanisms that shall require that the first loss 
        position of private market holders on single-family covered 
        securities is--
                    (A) adequate to cover losses that might be incurred 
                in a period of economic stress, including national and 
                regional home price declines, such as those observed 
                during moderate to severe recessions in the United 
                States; and
                    (B) not less than 10 percent of the principal or 
                face value of the single-family covered security at the 
                time of issuance.
            (2) Fraud prohibition.--
                    (A) Prohibition.--It shall be unlawful for any 
                person to intentionally create and issue any instrument 
                or security as a first loss position on a single-family 
                covered security that such person knows or in the 
                exercise of reasonable care should have known does not 
                satisfy the requirements of this section.
                    (B) Penalty.--Violations of subparagraph (A) shall 
                be punishable in accordance with section 1343 of title 
                18, United States Code.
    (b) Approval of Credit Risk-sharing Mechanisms.--
            (1) Considerations for approval of various mechanisms.--In 
        approving credit risk-sharing mechanisms under subsection (a), 
        the Corporation shall--
                    (A) consider proposals that include credit-linked 
                structures or other instruments that are designed to 
                absorb credit losses on single-family covered 
                securities;
                    (B) consider any credit risk-sharing mechanisms 
                undertaken by the enterprises;
                    (C) ensure that the first loss position is fully 
                funded to meet the requirements of subsection 
                (a)(1)(B);
                    (D) ensure that each type of proposed mechanism--
                            (i) enables the Corporation to verify that 
                        the first loss position is fully funded;
                            (ii) minimizes any potential long-term cost 
                        to the taxpayer;
                            (iii) accommodates the availability of 
                        mortgage credit on equal and transparent terms 
                        in the secondary mortgage market for--
                                    (I) small mortgage lenders; and
                                    (II) lenders from all geographic 
                                locations, including rural locations;
                            (iv) allows for broad availability of 
                        mortgage credit and secondary mortgage market 
                        financing through fluctuations in the business 
                        cycle for eligible single-family lending across 
                        all--
                                    (I) regions;
                                    (II) localities;
                                    (III) institutions;
                                    (IV) property types, including 
                                housing serving renters; and
                                    (V) eligible borrowers;
                            (v) fulfills the requirements under section 
                        314 with respect to loan modifications and 
                        foreclosure prevention;
                            (vi) does not prevent the securitization of 
                        refinanced or modified eligible single-family 
                        mortgage loans within single-family covered 
                        securities during a period when the authority 
                        under section 305(i) is exercised;
                            (vii) does not diminish market liquidity 
                        and resiliency;
                            (viii) does not prevent the refinancing of 
                        underwater eligible single-family mortgage 
                        loans; and
                            (ix) does not present an unnecessary risk 
                        to the Mortgage Insurance Fund;
                    (E) consider whether the approval of any credit 
                risk-sharing mechanism will impair the operation and 
                liquidity of forward market executions for eligible 
                single-family mortgage loans and single-family covered 
                securities, such as the To-Be-Announced market, taking 
                into consideration other risk-sharing options available 
                to market participants; and
                    (F) take necessary steps to prevent abuse and 
                deceptive practices in the use of the credit risk-
                sharing mechanisms, including by--
                            (i) creating appropriate standards relating 
                        to--
                                    (I) the vintages or categories of 
                                covered securities that are referenced 
                                by a credit risk-sharing mechanism;
                                    (II) standardization of the terms 
                                and features of credit risk-sharing 
                                structures; and
                                    (III) measures that prevent the 
                                duplicative sale by a guarantor of the 
                                same mortgage credit risk in the same 
                                pool of eligible single-family mortgage 
                                loans; and
                            (ii) requiring additional disclosures and 
                        affirmative representations that must be made 
                        by entities that create and issue credit risk-
                        sharing mechanisms.
            (2) Notice and publication.--The Corporation shall--
                    (A) provide prompt notice to any person seeking 
                approval for a credit risk-sharing mechanism of the 
                approval or denial of that credit risk-sharing 
                mechanism; and
                    (B) make available detailed information regarding 
                approved mechanisms on the website of the Corporation.
            (3) Review of approved credit risk-sharing mechanisms.--
                    (A) Authority to suspend.--The Corporation may, 
                from time to time and in its discretion--
                            (i) conduct reviews of approved credit 
                        risk-sharing mechanisms to determine whether 
                        such credit risk-sharing mechanisms continue to 
                        satisfy the considerations for approval under 
                        paragraph (1);
                            (ii) assess the functioning of the forward 
                        market for eligible single-family mortgage 
                        loans and single-family covered securities, 
                        including the To-Be-Announced market, to 
                        determine whether any approved credit risk-
                        sharing mechanism has adversely affected the 
                        liquidity or resiliency of such market; and
                            (iii) suspend the approval of--
                                    (I) any credit risk-sharing 
                                mechanism that it determines does not 
                                satisfy the considerations for approval 
                                under paragraph (1); or
                                    (II) any credit risk-sharing 
                                mechanism that it determines has 
                                adversely affected the liquidity or 
                                resiliency of the forward market for 
                                eligible single-family mortgage loans 
                                and single-family covered securities, 
                                including the To-Be-Announced market.
                    (B) Reconsideration.--
                            (i) Development of expedited process.--The 
                        Corporation shall develop an expedited process 
                        for the reinstatement of the approval of any 
                        credit risk-sharing mechanism that is suspended 
                        under subparagraph (A)(iii).
                            (ii) Revision of mechanism.--If a credit 
                        risk-sharing mechanism is suspended under 
                        subparagraph (A)(iii), the credit risk-sharing 
                        mechanism may be adapted or revised, as 
                        necessary, for reconsideration for 
                        reinstatement of the approval of the credit 
                        risk-sharing mechanism under the expedited 
                        process developed under clause (i).
                    (C) No effect on existing mechanisms.--The 
                suspension of the approval of any credit risk-sharing 
                mechanism under subparagraph (A)(iii) shall have no 
                effect on the status of single-family covered 
                securities and related instruments using the credit 
                risk-sharing mechanism that were issued prior to the 
                suspension.
            (4) Additional credit risk-sharing mechanisms.--
                    (A) Approval.--In addition to credit risk-sharing 
                mechanisms approved by the Corporation under subsection 
                (a), the Corporation shall consider and may approve 
                additional fully-funded credit risk-sharing mechanisms 
                that--
                            (i) may be employed by an approved 
                        guarantor to manage the credit risk relating to 
                        guarantees provided for single-family covered 
                        securities; and
                            (ii) do not represent the first loss 
                        position with respect to single-family covered 
                        securities.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to limit an approved 
                guarantor from engaging in other forms of risk-sharing 
                or risk mitigation using mechanisms that have not been 
                considered or approved by the Corporation.
            (5) Reports.--
                    (A) In general.--Not later than 1 year after the 
                agency transfer date, and annually thereafter until the 
                system certification date, the Corporation shall submit 
                a report to the Committee on Banking, Housing, and 
                Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives 
                that--
                            (i) discusses each credit risk-sharing 
                        mechanism that the Chairperson considered in 
                        carrying out the requirements of this section;
                            (ii) describes how the operation and 
                        execution of each approved credit risk-sharing 
                        mechanism fulfills the requirements of this 
                        section; and
                            (iii) explains how the Corporation arrived 
                        at the determinations made under clause (ii), 
                        including a discussion of the data considered.
                    (B) Subsequent reports.--On the system 
                certification date and annually thereafter, the 
                Corporation shall publish in the Federal Register a 
                list of the credit risk-sharing mechanisms that the 
                Corporation approved or suspended, addressing the 
                identical concerns set forth under clauses (i) through 
                (iii) of subparagraph (A) and, with respect to any 
                suspension, the considerations under paragraph (1) that 
                are no longer satisfied.
                    (C) Multifamily reports.--The Corporation shall 
                include in the reports prepared under subparagraphs (A) 
                and (B) a description of the credit risk-sharing 
                mechanisms approved by the Corporation for multifamily 
                guarantors pursuant to section 703.
    (c) Collateral Diversification Standards.--The Corporation shall 
establish standards, after notice and comment, for the appropriate 
minimum level of diversification for eligible single-family mortgage 
loans that collateralize single-family covered securities that are 
issued subject to an approved credit risk-sharing mechanism in order to 
reduce the credit risk such single-family covered securities could pose 
to the Mortgage Insurance Fund.
    (d) Rule of Construction.--Nothing in this section shall be 
construed to require the Corporation to approve any credit risk-sharing 
mechanism.
    (e) Applicability of the Commodity Exchange Act and Securities Act 
of 1933.--
            (1) Exemption from the commodity exchange act; prior 
        consultation required.--
                    (A) Exemption.--No counterparty that enters into a 
                swap, as that term is defined in section 1a of the 
                Commodity Exchange Act (7 U.S.C. 1a), for purposes of 
                structuring any credit risk-sharing mechanism that is 
                approved by the Corporation pursuant to this section, 
                which credit risk-sharing mechanism is designed to be 
                used or is used by a private market holder to assume 
                losses and to reduce the specific risks arising from 
                losses realized under such credit risk-sharing 
                mechanism associated with any single-family covered 
                security insured in accordance with section 303 or 
                section 305, shall be deemed, by reason of such swap 
                transaction, to be a commodity pool, as that term is 
                defined in section 1a of the Commodity Exchange Act (7 
                U.S.C. 1a).
                    (B) Prior consultation required.--Before approving 
                any credit risk-sharing mechanism that would be exempt 
                from the Commodity Exchange Act pursuant to 
                subparagraph (A), the Corporation shall consult with 
                the Commodity Futures Trading Commission.
            (2) Exemption from section 27b of the securities act of 
        1933; prior consultation required.--
                    (A) Exemption.--Any credit risk-sharing mechanism 
                that is approved by the Corporation pursuant to this 
                section, which credit risk-sharing mechanism is 
                designed to be used or is used by a private market 
                holder to assume losses and to reduce the specific 
                risks arising from losses realized under such credit 
                risk-sharing mechanism associated with any single-
                family covered security insured in accordance with 
                section 303 or section 305, shall be exempt from 
                section 27B of the Securities Act of 1933 (15 U.S.C. 
                77z-2a).
                    (B) Prior consultation required.--Before approving 
                any credit risk-sharing mechanism that would be exempt 
                from section 27B of the Securities Act of 1933 pursuant 
                to subparagraph (A), the Corporation shall consult with 
                the Securities and Exchange Commission.

SEC. 303. INSURANCE; MORTGAGE INSURANCE FUND.

    (a) Authority.--The Corporation shall, in exchange for a fee in 
accordance with subsection (e)(8), insure the payment of principal and 
interest on a covered security with respect to any failure to pay on 
such covered security subject to the requirements of this section.
    (b) Terms and Conditions.--
            (1) In general.--The Corporation shall, by regulation, 
        establish terms and conditions for the provision of insurance 
        under this Act.
            (2) Single-family.--The terms and conditions required to be 
        established under paragraph (1) shall, for single-family 
        covered securities, include terms and conditions that ensure--
                    (A) eligible single-family mortgage loans 
                collateralizing single-family covered securities have 
                been delivered to the Platform; and
                    (B) with respect to each single-family covered 
                security, either--
                            (i) private market holders have taken a 
                        first loss position that satisfies the 
                        requirements of section 302; or
                            (ii) an approved guarantor has provided a 
                        guarantee in satisfaction of the requirements 
                        of section 311.
            (3) Multifamily.--The terms and conditions required to be 
        established under paragraph (1) shall, for multifamily covered 
        securities, include terms and conditions that ensure, with 
        respect to each multifamily covered security, that an approved 
        multifamily guarantor has provided a guarantee in satisfaction 
        of the requirements of section 703.
    (c) Cash Payments; Continued Operations.--The Corporation shall 
facilitate the timely and unconditional payment of principal and 
interest on covered securities insured under this Act by paying, in 
cash when due, any shortfalls in principal and interest due on the 
covered security, and continuing to charge and collect any fees for the 
provision of insurance (in accordance with subsection (e)(8)) relating 
to the covered security in the event of any losses that may be incurred 
(1) in excess of a payment default on the covered security that exceeds 
the first loss position assumed by a private market holder, (2) in the 
case of a covered security that is guaranteed by an approved guarantor 
or approved multifamily guarantor as a result of the insolvency of the 
guarantor, or (3) upon the failure of the servicer or guarantor to 
transfer to the bond administrator for the covered security funds in 
amounts necessary to make timely payment of principal and interest due 
on the covered security.
    (d) Cost Recovery.--In the event the Corporation makes a payment on 
a covered security based on subsection (c)(3), the Corporation shall 
recover such amount paid, and reasonable costs and expenses, from the 
servicer or guarantor.
    (e) Mortgage Insurance Fund.--
            (1) Establishment.--On the agency transfer date, there 
        shall be established the Mortgage Insurance Fund, which the 
        Corporation shall--
                    (A) maintain and administer;
                    (B) use to carry out the insurance functions 
                authorized under this Act, including any function or 
                action authorized under section 305; and
                    (C) invest in accordance with the requirements of 
                paragraph (10).
            (2) Deposits.--The Mortgage Insurance Fund shall be 
        credited with any--
                    (A) fee amounts required to be deposited in the 
                Fund under this section;
                    (B) amounts earned on investments pursuant to 
                paragraph (10);
                    (C) assessment amounts authorized to be deposited 
                into the Fund under section 405(b); and
                    (D) assessment amounts required to be deposited 
                into the Fund under section 608(c).
            (3) Fees for single-family and multifamily covered 
        securities.--In determining the amount of any fee to be charged 
        by the Corporation under this section, the Corporation shall 
        charge a separate fee for single-family covered securities and 
        multifamily covered securities, as appropriate for each asset 
        class.
            (4) Separate accounting required.--The Corporation shall 
        keep and maintain separate accounting for deposits in the 
        Mortgage Insurance Fund related to fee amounts charged and 
        collected for the insurance of single-family covered securities 
        and multifamily covered securities.
            (5) Fiduciary responsibility.--The Corporation has the 
        responsibility to ensure that the Mortgage Insurance Fund 
        remains financially sound.
            (6) Use and treatment of amounts in the fund.--
                    (A) In general.--The Mortgage Insurance Fund shall 
                be solely available to the Corporation for use by the 
                Corporation to carry out the functions authorized by 
                this Act, for the expenses of the Corporation, and 
                for--
                            (i) compensation of the employees of the 
                        Corporation;
                            (ii) purposes of--
                                    (I) funding the CSP; and
                                    (II) establishing the 
                                Securitization Platform under section 
                                321, multifamily subsidiaries under 
                                section 701, the initial Small Lender 
                                Mutual under section 315, and any other 
                                entity authorized by this Act that 
                                facilitates an orderly transition to 
                                the new housing finance system; and
                            (iii) covering all other expenses of the 
                        Corporation.
                    (B) Prohibition.--The Mortgage Insurance Fund may 
                not be used or otherwise diverted to cover any other 
                expense of the Federal Government.
                    (C) Exemption from apportionment.--Notwithstanding 
                any other provision of law, amounts in the Mortgage 
                Insurance Fund shall not be subject to apportionment 
                for the purposes of chapter 15 of title 31, United 
                States Code, or under any other authority.
                    (D) Not government funds.--Amounts in the Mortgage 
                Insurance Fund shall not be construed to be Government 
                or public funds or appropriated money.
            (7) Reserve ratio goals for mortgage insurance fund.--The 
        Corporation shall--
                    (A) endeavor to ensure that the Mortgage Insurance 
                Fund attains a reserve ratio--
                            (i) of 1.25 percent of the sum of the 
                        outstanding principal balance of the covered 
                        securities for which insurance is being 
                        provided under this title within 5 years of the 
                        system certification date; and
                            (ii) of 2.50 percent of the sum of the 
                        outstanding principal balance of the covered 
                        securities for which insurance is being 
                        provided under this title within 10 years of 
                        the system certification date; and
                    (B) after the expiration of the period referred to 
                in subparagraph (A)(ii), endeavor to ensure that the 
                Mortgage Insurance Fund maintains a reserve ratio of 
                not less than 2.50 percent of the sum of the 
                outstanding principal balance of the covered securities 
                for which insurance is being provided under this title.
            (8) Maintenance of reserve ratio; establishment of fees.--
                    (A) Establishment of fees.--The Corporation shall 
                charge and collect a fee, and may in its discretion 
                increase or decrease such fee, in connection with any 
                insurance provided under this title to--
                            (i) achieve and maintain the reserve ratio 
                        goals established under paragraph (7); and
                            (ii) fund the operations of the 
                        Corporation.
                    (B) Fee considerations.--In establishing fees under 
                subparagraph (A), the Corporation shall consider--
                            (i) the expected operating expenses of the 
                        Mortgage Insurance Fund;
                            (ii) the risk of loss to the Mortgage 
                        Insurance Fund in carrying out the requirements 
                        under this Act;
                            (iii) the risk presented by, and the loss 
                        absorption capacity of, the credit risk-sharing 
                        mechanism or guarantee that is provided on the 
                        pool of eligible mortgage loans collateralizing 
                        the covered security to be insured under this 
                        title;
                            (iv) economic conditions generally 
                        affecting the mortgage markets;
                            (v) the extent to which the reserve ratio 
                        of the Mortgage Insurance Fund met--
                                    (I) the reserve ratio set for the 
                                preceding 12-month period; or
                                    (II) the reserve ratio goals 
                                established in paragraph (7); and
                            (vi) any other factors that the Corporation 
                        determines appropriate.
                    (C) Fee uniformity.--The fee required under 
                subparagraph (A)--
                            (i) except as provided in subparagraph (D), 
                        shall be set at a uniform amount applicable to 
                        all institutions purchasing insurance under 
                        this title;
                            (ii) may not vary--
                                    (I) by geographic location; or
                                    (II) by the size of the institution 
                                to which the fee is charged; and
                            (iii) may not be based on the volume of 
                        insurance to be purchased.
                    (D) Separate and distinct fees based on credit 
                risk-sharing mechanisms.--Nothing in subparagraph (C) 
                shall prohibit or be construed to prohibit the 
                Corporation from charging separate and distinct fees 
                under this paragraph based on the type or form of 
                credit risk-sharing mechanism applicable to the covered 
                security to be insured under this title.
                    (E) Deposit into mortgage insurance fund.--Any fee 
                amounts collected under this paragraph shall be 
                deposited in the Mortgage Insurance Fund.
            (9) Full faith and credit.--The full faith and credit of 
        the United States is pledged to the payment of all amounts from 
        the Mortgage Insurance Fund which may be required to be paid 
        under any insurance provided under this title.
            (10) Investments.--
                    (A) In general.--The Board of Directors may request 
                the Secretary of the Treasury to invest such portion of 
                amounts in the Mortgage Insurance Fund that, in the 
                judgment of the Board, is not required to meet the 
                current needs of the Corporation.
                    (B) Eligible investments.--Pursuant to a request 
                under subparagraph (A), the Secretary of the Treasury 
                shall invest such portions in obligations of the United 
                States with maturities suitable to the needs of the 
                Corporation, as determined by the Board, and bearing 
                interest at a rate determined by the Secretary of the 
                Treasury, taking into consideration, at the time of the 
                investment, market yields on outstanding marketable 
                obligations of the United States of comparable 
                maturity.
                    (C) Prohibited investments.--Amounts in the 
                Mortgage Insurance Fund may not be invested in any--
                            (i) covered security insured under this 
                        title; or
                            (ii) mortgage-backed security issued by the 
                        enterprises.
    (f) Mandatory Loss Review by the Inspector General of the Federal 
Mortgage Insurance Corporation.--
            (1) In general.--If the Mortgage Insurance Fund is required 
        to make any payment of principal or interest, or both, on a 
        covered security with respect to losses incurred on such 
        covered security to any holder of such covered security, the 
        Inspector General of the Federal Mortgage Insurance Corporation 
        shall--
                    (A) review and make a written report to the 
                Corporation regarding the decision of the Corporation 
                to insure such covered security and the supervision by 
                the Corporation of all market participants involved in 
                the creation, issuance, servicing, guarantee of, or 
                insurance of such covered security, which shall--
                            (i) ascertain why the covered security 
                        resulted in a loss to the Mortgage Insurance 
                        Fund; and
                            (ii) make recommendations for preventing 
                        any such loss in the future; and
                    (B) provide a copy of the report required under 
                subparagraph (A) to--
                            (i) the Comptroller General of the United 
                        States;
                            (ii) the appropriate Federal banking agency 
                        or State regulatory authority, as appropriate, 
                        of any market participant involved in the 
                        creation, issuance, servicing, guarantee of, or 
                        insurance of such covered security; and
                            (iii) the Committee on Banking, Housing, 
                        and Urban Affairs of the Senate and the 
                        Committee on Financial Services of the House of 
                        Representatives.
            (2) Deadline for report.--The Inspector General of the 
        Federal Mortgage Insurance Corporation shall comply with 
        paragraph (1) as expeditiously as possible, but in no event 
        shall the report required under paragraph (1) be submitted 
        later than 6 months after the date on which the loss was 
        incurred.
            (3) Public disclosure required.--
                    (A) In general.--The Corporation shall disclose any 
                report on losses required under this subsection, upon 
                request under section 552 of title 5, United States 
                Code, without excising--
                            (i) any portion under section 552(b)(5) of 
                        that title; or
                            (ii) any information under paragraph (4) 
                        (other than trade secrets) or paragraph (8) of 
                        section 552(b) of that title.
                    (B) Exception.--Subparagraph (A) does not require 
                the Corporation to disclose the name of any holder of 
                the covered security, or information from which the 
                identity of such a person could reasonably be 
                ascertained.
            (4) Review by comptroller general.--The Comptroller General 
        of the United States shall, under such conditions as the 
        Comptroller General determines to be appropriate, review any 
        report made under paragraph (1) and recommend to the 
        Corporation improvements in the supervision of market 
        participants.

SEC. 304. LOAN LIMITS; HOUSING PRICE INDEX.

    (a) Establishment.--The Corporation shall establish limitations 
governing the maximum original principal obligation of eligible single-
family mortgage loans that may collateralize a covered security to be 
insured by the Corporation under this title.
    (b) Calculation of Amount.--The limitation set forth under 
subsection (a) shall be calculated with respect to the total original 
principal obligation of the eligible single-family mortgage loan and 
not merely with respect to the amount insured by the Corporation.
    (c) Maximum Limits.--
            (1) In general.--Except as provided in paragraph (2), the 
        maximum limitation amount under this subsection shall not 
        exceed $417,000 for a mortgage loan secured by a 1-family 
        residence, for a mortgage loan secured by a 2-family residence 
        the limit shall equal 128 percent of the limit for a mortgage 
        loan secured by a 1-family residence, for a mortgage loan 
        secured by a 3-family residence the limit shall equal 155 
        percent of the limit for a mortgage loan secured by a 1-family 
        residence, and for a mortgage loan secured by a 4-family 
        residence the limit shall equal 192 percent of the limit for a 
        mortgage loan secured by a 1-family residence, except that such 
        maximum limitations shall be adjusted effective January 1 of 
        each year beginning after the effective date of this Act, 
        subject to the limitations in this paragraph. Each adjustment 
        shall be made by adding to each such amount (as it may have 
        been previously adjusted) a percentage thereof equal to the 
        percentage increase, during the most recent 12-month or 4-
        quarter period ending before the time of determining such 
        annual adjustment, in the housing price index maintained by the 
        Chairperson pursuant to subsection (d). If the change in such 
        house price index during the most recent 12-month or 4-quarter 
        period ending before the time of determining such annual 
        adjustment is a decrease, then no adjustment shall be made for 
        the next year, and the next upward adjustment shall take into 
        account prior declines in the house price index, so that any 
        adjustment shall reflect the net change in the house price 
        index since the last adjustment. Declines in the house price 
        index shall be accumulated and then reduce increases until 
        subsequent increases exceed prior declines.
            (2) High-cost area limits.--The limitations set forth in 
        paragraph (1) may be increased by not more than 50 percent with 
        respect to properties located in Alaska, Guam, Hawaii, and the 
        Virgin Islands. Such foregoing limitations shall also be 
        increased, with respect to properties of a particular size 
        located in any area for which 115 percent of the median house 
        price for such size residence exceeds the limitation for such 
        size residence set forth under paragraph (1), to the lesser of 
        150 percent of such limitation for such size residence or the 
        amount that is equal to 115 percent of the median house price 
        in such area for such size residence.
    (d) Housing Price Index.--
            (1) National index.--The Corporation shall establish and 
        maintain a method of assessing a national average single-family 
        house price for use in calculating the loan limits for eligible 
        single-family mortgage loans under subsection (c), and other 
        averages as the Corporation considers appropriate, including--
                    (A) averages based on different geographic regions; 
                and
                    (B) an average for houses whose mortgage 
                collateralized single-family covered securities.
            (2) Considerations.--In establishing the method described 
        under subsection (a), the Corporation may take into 
        consideration the data collected in carrying out the functions 
        described under section 332, and such other data, existing 
        house price indexes, and other measures as the Corporation 
        considers appropriate.

SEC. 305. AUTHORITY TO PROTECT TAXPAYERS IN UNUSUAL AND EXIGENT MARKET 
              CONDITIONS.

    (a) In General.--If the Corporation, upon the written agreement of 
the Chairman of the Board of Governors of the Federal Reserve System 
and the Secretary of the Treasury, and in consultation with the 
Secretary of Housing and Urban Development, determines that unusual and 
exigent circumstances have created or threaten to create an anomalous 
lack of mortgage credit availability within the single-family housing 
market, multifamily housing market, or entire United States housing 
market that could materially and severely disrupt the functioning of 
the housing finance system of the United States, the Corporation may, 
for a period of 6 months--
            (1) provide insurance in accordance with section 303 to any 
        single-family covered security regardless of whether such 
        security has satisfied the requirements of section 302; and
            (2) establish provisional standards for approved entities, 
        notwithstanding any standard required under subtitle B or 
        section 703, pursuant to section 607.
    (b) Considerations.--In exercising the authority granted under 
subsection (a), the Corporation shall consider the severity of the 
conditions present in the housing markets and the risks presented to 
the Mortgage Insurance Fund in exercising such authority.
    (c) Terms and Conditions.--Insurance provided under subsection (a) 
shall be subject to such additional or different limitations, 
restrictions, and regulations as the Corporation may prescribe.
    (d) Bailout Strictly Prohibited.--In exercising the authority 
granted under subsection (a), the Corporation may not--
            (1) provide aid to an approved entity or an affiliate of 
        the approved entity, if such approved entity is in bankruptcy 
        or any other Federal or State insolvency proceeding; or
            (2) provide aid for the purpose of assisting a single and 
        specific company to avoid bankruptcy or any other Federal or 
        State insolvency proceeding.
    (e) Notice.--Not later than 7 days after authorizing insurance or 
establishing provisional standards under subsection (a), the 
Corporation shall submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representatives a report that includes--
            (1) the justification for the exercise of authority to 
        provide such insurance or establish such provisional standards;
            (2) evidence that unusual and exigent circumstances have 
        created or threatened to create an anomalous lack of mortgage 
        credit availability within the single-family housing market, 
        multifamily housing market, or entire United States housing 
        market that could materially and severely disrupt the 
        functioning of the housing finance system of the United States; 
        and
            (3) evidence that failure to exercise such authority would 
        have undermined the safety and soundness of the housing finance 
        system.
    (f) Additional Exercise of Authority.--
            (1) In general.--Subject to the limitation under subsection 
        (g), the authority granted to the Corporation under subsection 
        (a) may be exercised for 2 additional 9-month periods within 
        any given 3-year period, provided that the Corporation, upon 
        the written agreement of the Chairman of the Board of Governors 
        of the Federal Reserve System and the Secretary of the 
        Treasury, and in consultation with the Secretary of Housing and 
        Urban Development--
                    (A) determines--
                            (i) for a second exercise of authority 
                        under subsection (a), by an affirmative vote of 
                        \2/3\ or more of the Board of Directors then 
                        serving, that a second exercise of authority 
                        under subsection (a) is necessary; or
                            (ii) for a third exercise of authority 
                        under subsection (a), by an affirmative vote of 
                        \2/3\ or more of the Board of Directors then 
                        serving, and an affirmative vote of \2/3\ or 
                        more of the Board of Governors of the Federal 
                        Reserve System then serving, that a third 
                        exercise of authority under this section is 
                        necessary; and
                    (B) provides notice to Congress, as provided under 
                subsection (e).
            (2) Order of exercise of authority.--Any additional 
        exercise of authority under this subsection may occur 
        consecutively or non-consecutively.
    (g) Limitation.--The authority granted to the Corporation under 
this section may not be exercised more than 3 times in any given 3-year 
period, which 3-year period shall commence upon the initial exercise of 
authority under subsection (a).
    (h) Normalization and Reduction of Risk.--Following any exercise of 
authority under this section, the Corporation shall--
            (1) establish a timeline for approved entities to meet the 
        approval standards set forth in this Act; and
            (2) in a manner and pursuant to a timeline that will 
        minimize losses to the Mortgage Insurance Fund, establish a 
        program to either--
                    (A) sell, in whole or in part, the first loss 
                position on covered securities issued pursuant to this 
                section to private market holders; or
                    (B) transfer for value to approved entities, or 
                work with approved entities to sell, in whole or in 
                part, the first lost position on covered securities 
                issued pursuant to this section.
    (i) Authority to Respond to Sustained National Home Price 
Decline.--
            (1) Authority.--In the event of a significant decline of 
        national home prices, in at least 2 consecutive calendar 
        quarters, the Corporation, by an affirmative vote of \2/3\ or 
        more of the Board of Directors then serving, may for a period 
        of 6 months permit the transfer of guarantees of eligible 
        mortgage loans that secure covered securities if such eligible 
        mortgage loans are refinanced, regardless of the value of the 
        underlying collateral securing such eligible mortgage loans.
            (2) Additional exercise of authority.--The authority 
        granted to the Corporation under paragraph (1) may be exercised 
        for additional 6-month periods, if upon each additional 
        extension of such authority there is an affirmative vote of \2/
        3\ or more of the Board of Directors then serving.
            (3) Limitation.--The Corporation shall not provide 
        insurance under this section to any covered security that 
        includes mortgage loans that do not meet the definition of an 
        eligible mortgage loan, as defined in this Act, except for 
        mortgage loans refinanced from eligible mortgage loans in 
        covered securities.
            (4) Rule of construction.--No provision in this section 
        shall be construed as permitting the Corporation to lower any 
        other requirement related to the requirements set forth under 
        the definition of an eligible mortgage loan.

SEC. 306. GENERAL POWERS.

    (a) Corporate Powers.--The Federal Mortgage Insurance Corporation 
shall have the power--
            (1) to adopt, alter, and use a corporate seal, which shall 
        be judicially noticed;
            (2) to enter into, execute, and perform contracts, leases, 
        cooperative agreements, or other transactions, on such terms as 
        it may deem appropriate, with any agency or instrumentality of 
        the United States, or with any political subdivision thereof, 
        or with any person, firm, association, or corporation;
            (3) to execute, in accordance with its bylaws, all 
        instruments necessary or appropriate in the exercise of any of 
        its powers;
            (4) in its corporate name, to sue and to be sued, and to 
        complain and to defend, in any court or tribunal of competent 
        jurisdiction, Federal or State, but no attachment, injunction, 
        or other similar process, mesne or final, shall be issued 
        against the property of the Corporation;
            (5) to conduct its business without regard to any 
        qualification or similar statute in any State of the United 
        States;
            (6) to lease, purchase, or acquire any property, real, 
        personal, or mixed, or any interest therein, to hold, rent, 
        maintain, modernize, renovate, improve, use, and operate such 
        property, and to sell, for cash or credit, lease, or otherwise 
        dispose of the same, at such time and in such manner as and to 
        the extent that it may deem necessary or appropriate;
            (7) to prescribe, repeal, and amend or modify, rules, 
        regulations, or requirements governing the manner in which its 
        general business may be conducted;
            (8) to accept gifts or donations of services, or of 
        property, real, personal, or mixed, tangible, or intangible, in 
        aid of any of its purposes;
            (9) to appoint and supervise personnel employed by the 
        Corporation;
            (10) to establish and maintain divisions, units, or other 
        offices within the Corporation, including those established in 
        sections 207, 208, 209, and 211 in order to carry out the 
        responsibilities of this Act, and to satisfy the requirements 
        of other applicable law; and
            (11) to manage the affairs of the Corporation and conduct 
        the business of the Corporation, as necessary.
    (b) Litigation Authority.--
            (1) In general.--In enforcing any provision of this Act, 
        any regulation or order prescribed under this Act, or any other 
        provision of law, rule, regulation, or order, or in any other 
        action, suit, or proceeding to which the Corporation is a party 
        or in which the Corporation is interested, and in the 
        administration of conservatorships and receiverships, the 
        Corporation may act in the Corporation's own name and through 
        attorneys or other agents acting on behalf of the Corporation.
            (2) Subject to suit.--Except as otherwise provided by law, 
        the Corporation shall be subject to suit (other than suits for 
        claims for money damages) by a regulated entity or market 
        participant with respect to any matter under this Act or any 
        other applicable provision of law, rule, order, or regulation 
        under this Act, in the United States district court for the 
        judicial district in which the regulated entity or market 
        participant has its principal place of business, or in the 
        United States District Court for the District of Columbia, and 
        the Corporation may be served with process in the manner 
        prescribed by the Federal Rules of Civil Procedure.
    (c) Expenditures.--Except as may be otherwise provided in this 
title, the Corporation shall determine the necessity for, and the 
character and amount of its obligations and expenditures, and the 
manner in which they shall be incurred, allowed, paid, and accounted 
for.
    (d) Exemption From Certain Taxes.--The Corporation, including its 
franchise, capital, reserves, surplus, mortgage loans or other security 
holdings, and income shall be exempt from all taxation now or hereafter 
imposed by the United States, by any territory, dependency, or 
possession thereof, or by any State, county, municipality, or local 
taxing authority, except that any real property of the Corporation 
shall be subject to State, county, municipal, or local taxation to the 
same extent according to its value as other real property is taxed.
    (e) Exclusive Use of Name.--No individual, association, 
partnership, or corporation, except the body corporate named under 
section 201, shall hereafter use the words ``Federal Mortgage Insurance 
Corporation'' or any combination of such words, as the name or a part 
thereof under which such individual, association, partnership, or 
corporation shall do business. Violations of the foregoing sentence may 
be enjoined by any court of general jurisdiction at the suit of the 
proper body corporate named under section 201. In any such suit, the 
plaintiff may recover any actual damages flowing from such violation, 
and, in addition, shall be entitled to punitive damages (regardless of 
the existence or nonexistence of actual damages) of not exceeding 
$1,000 for each day during which such violation is committed or 
repeated.
    (f) Fiscal Agents.--The Federal Reserve banks are authorized and 
directed to act as depositories, custodians, and fiscal agents for the 
Corporation, for its own account or as fiduciary, and such banks shall 
be reimbursed for such services in such manner as may be agreed upon, 
and the Corporation may itself act in such capacities, for its own 
account or as fiduciary, and for the account of others.
    (g) Other Powers.--The Corporation is authorized to assess and 
collect fees on regulated entities and approved entities, including for 
applications, examinations, and other purposes, as authorized by this 
Act.
    (h) Federal Home Loan Bank Assessment.--The Corporation shall have 
the authority to assess a fee on the Federal Home Loan Banks to cover 
the necessary costs related to supervising the Federal Home Loan Banks. 
The costs associated with the secondary market activities of the 
Federal Home Loan Banks pursuant to section 312 shall be covered by the 
fee charged pursuant to this subsection.
    (i) Rule of Construction Related to Fair Housing.--Nothing in this 
Act shall be construed as authorizing the Corporation to waive, repeal, 
amend, or modify requirements relating to fair housing law, including 
those requirements under the Fair Housing Act (42 U.S.C. 3601 et seq.) 
and the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).

SEC. 307. EXEMPTIONS.

    (a) Securities Exempt From Securities and Exchange Commission 
Regulation.--
            (1) Covered securities.--
                    (A) In general.--All securities insured or 
                guaranteed by the Corporation shall, to the same extent 
                as securities that are direct obligations of or 
                obligations guaranteed as to principal or interest by 
                the United States, be deemed to be exempt securities 
                within the meaning of the laws administered by the 
                Securities and Exchange Commission.
                    (B) Conforming amendment.--The first sentence of 
                section 3(a)(2) of the Securities Act of 1933 (15 
                U.S.C. 77c(a)(2)) is amended by inserting ``or any 
                security insured or guaranteed by the Federal Mortgage 
                Insurance Corporation;'' after ``Federal Reserve 
                bank;''.
            (2) Credit risk-sharing mechanisms.--Section 27B(c) of the 
        Securities Act of 1933 (15 U.S.C. 77z-2a(c)) is amended--
                    (A) in paragraph (1), by striking ``or'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(3) purchases or sales of any asset-backed security that 
        is a credit risk-sharing mechanism approved by the Federal 
        Mortgage Insurance Corporation in accordance with section 302 
        or section 703(c) of the Housing Finance Reform and Taxpayer 
        Protection Act of 2014, which credit risk-sharing mechanism is 
        designed to be used or is used, as determined by the Federal 
        Mortgage Insurance Corporation, by a private market holder to 
        assume losses and to reduce the specific risks arising from 
        losses realized under such credit risk-sharing mechanism 
        associated with any pool of eligible mortgage loans that 
        collateralizes a covered security insured in accordance with 
        section 303 or 305 of that Act.''.
    (b) QRM Exemption.--Section 15G(e) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78o-11(e)) is amended--
            (1) in paragraph (3)(B)--
                    (A) by striking ``Association, the'' and inserting 
                ``Association and the''; and
                    (B) by striking ``and the Federal home loan 
                banks''; and
            (2) by adding at the end the following:
            ``(7) Covered securities insured by the federal mortgage 
        insurance corporation.--Notwithstanding any other provision of 
        this section, the requirements of this section shall not apply 
        to any covered security, as such term is defined under section 
        2 of the Housing Finance Reform and Taxpayer Protection Act of 
        2014, insured or guaranteed by the Federal Mortgage Insurance 
        Corporation or any institution that is subject to the 
        supervision of the Federal Mortgage Insurance Corporation.''.
    (c) Counterparties Exempt From the Commodity Exchange Act.--Section 
1a(10) of the Commodity Exchange Act (7 U.S.C. 1a(10)) is amended by 
adding at the end the following:
                    ``(C) Exemption.--Solely as it relates to the 
                specific role of a counterparty in connection with the 
                swap transaction described in this paragraph, the term 
                `commodity pool' does not include any counterparty that 
                enters into any swap for purposes of structuring a 
                credit risk-sharing mechanism that is approved by the 
                Federal Mortgage Insurance Corporation in accordance 
                with section 302 or section 703(c) of the Housing 
                Finance Reform and Taxpayer Protection Act of 2014, 
                which credit risk-sharing mechanism is designed to be 
                used or is used, as determined by the Federal Mortgage 
                Insurance Corporation, by a private market holder to 
                assume losses and to reduce the specific risks arising 
                from losses realized under such credit risk-sharing 
                mechanism associated with any pool of eligible mortgage 
                loans that collateralizes a covered security insured in 
                accordance with section 303 or 305 of that Act.''.

SEC. 308. REGULATORY CONSULTATION AND COORDINATION.

    (a) Consultation Permitted.--The Corporation may, in carrying out 
any duty, responsibility, requirement, or action authorized under this 
Act, consult with the Federal regulatory agencies, any individual 
Federal regulatory agency, the Secretary of the Treasury, the Secretary 
of Housing and Urban Development, any State banking regulator, any 
State insurance regulator, and any other State agency, as the 
Corporation determines necessary and appropriate.
    (b) Coordination Required.--The Corporation shall, as required by 
this Act, in carrying out any duty, responsibility, requirement, or 
action authorized under this Act, coordinate with the Federal 
regulatory agencies, any individual Federal regulatory agency, the 
Secretary of the Treasury, the Secretary of Housing and Urban 
Development, any State banking regulator, any State insurance 
regulator, and any other State agency.
    (c) Avoidance of Duplication.--To the fullest extent possible, the 
Corporation shall--
            (1) avoid duplication of examination activities, reporting 
        requirements, and requests for information;
            (2) rely on examination reports made by other Federal or 
        State regulatory agencies relating to an approved entity and 
        its subsidiaries, if any; and
            (3) ensure that approved entities are not subject to 
        conflicting supervisory demands by the Corporation and other 
        Federal regulatory agencies.
    (d) Protection of Privileges.--
            (1) In general.--Pursuant to the authorities provided under 
        subsections (a) and (b), to facilitate the consultative process 
        and coordination, the Corporation may share information with 
        the Federal regulatory agencies, any individual Federal 
        regulatory agency, the Secretary of the Treasury, the Secretary 
        of Housing and Urban Development, any State bank supervisor, 
        any State insurance regulator, any other State agency, or any 
        foreign banking authority, on a one-time, regular, or periodic 
        basis, as determined by the Corporation, regarding the capital 
        assets and liabilities, financial condition, risk management 
        practices, or any other practice of any market participant.
            (2) Privilege preserved.--Information shared by the 
        Corporation pursuant to paragraph (1) shall not be construed as 
        waiving, destroying, or otherwise affecting any privilege or 
        confidential status that any market participant or any other 
        person may claim with respect to such information under Federal 
        or State law as to any person or entity other than such 
        agencies, agency, supervisor, or authority.
            (3) Rule of construction.--No provision of this subsection 
        may be construed as implying or establishing that--
                    (A) any person waives any privilege applicable to 
                information that is shared or transferred under any 
                circumstance to which this subsection does not apply; 
                or
                    (B) any person would waive any privilege applicable 
                to any information by submitting the information 
                directly to the Federal regulatory agencies, any 
                individual Federal regulatory agency, any State bank 
                supervisor, any State insurance regulator, any other 
                State agency, or any foreign banking authority, but for 
                this subsection.
    (e) Federal and State Authority Preserved.--Unless otherwise 
expressly provided by this section, no provision of this section shall 
limit or be construed to limit, in any way, the existing authority of 
any Federal agency or State regulatory authority.

SEC. 309. AUTHORITY TO ISSUE REGULATIONS.

    (a) General Authority.--The Corporation may prescribe such 
regulations and issue such guidelines, orders, requirements, or 
standards as are necessary to--
            (1) carry out this Act, or any amendment made by this Act; 
        and
            (2) ensure--
                    (A) competition among approved entities in the 
                secondary mortgage market;
                    (B) liquidity in the secondary mortgage market and 
                the forward execution market for eligible single-family 
                mortgage loans and single-family covered securities, 
                such as the To-Be-Announced market; and
                    (C) mitigation of systemic risk in the secondary 
                mortgage market.
    (b) Capital Standards.--
            (1) In general.--For each type of covered entity the 
        Corporation shall establish, by regulation, capital standards 
        and related solvency standards necessary to implement the 
        provisions of this Act.
            (2) Definitions.--
                    (A) In general.--The regulations required under 
                this subsection shall define all such terms as are 
                necessary to carry out the purposes of this subsection.
                    (B) Considerations in defining instruments and 
                contracts that qualify as capital.--In defining 
                instruments and contracts that qualify as capital 
                pursuant to subparagraph (A), the Corporation--
                            (i) shall include such instruments and 
                        contracts that will absorb losses before the 
                        Mortgage Insurance Fund; and
                            (ii) may assign significance to those 
                        instruments and contracts based on the nature 
                        and risks of such instruments and contracts.
                    (C) Considerations in defining capital ratios.--
                Solely for the purposes of calculating a capital ratio 
                appropriate to the business model of the applicable 
                entity pursuant to subparagraph (A), the Corporation 
                shall consider for the denominator--
                            (i) total assets;
                            (ii) total liabilities;
                            (iii) risk in force; or
                            (iv) unpaid principal balance.
            (3) Designed to ensure safety and soundness.--The capital 
        and related solvency standards established under this 
        subsection shall be designed to--
                    (A) ensure the safety and soundness of a covered 
                entity;
                    (B) minimize the risk of loss to the Mortgage 
                Insurance Fund;
                    (C) in consultation and coordination with the Board 
                of Governors of the Federal Reserve System, the Federal 
                Deposit Insurance Corporation, the Office of the 
                Comptroller of the Currency, and the National Credit 
                Union Administration, reduce the potential for 
                regulatory arbitrage between capital standards for 
                covered entities and capital standards promulgated by 
                Federal regulatory agencies for insured depository 
                institutions and their affiliates; and
                    (D) be specifically tailored to accommodate a 
                diverse range of business models that may be employed 
                by covered entities.
            (4) Supplemental capital requirements.--In order to prevent 
        or mitigate risks to the secondary mortgage market of the 
        United States that could arise from the material financial 
        distress or failure, or ongoing activities, of covered entities 
        that are large approved aggregators or large approved 
        guarantors that engage in covered guarantee transactions, the 
        Corporation, by regulation--
                    (A) shall establish supplemental capital 
                requirements for covered entities that are large 
                approved aggregators or large approved guarantors; and
                    (B) may establish such other standards for covered 
                entities that are large approved aggregators or large 
                approved guarantors that the Corporation determines 
                necessary or appropriate.
    (c) Market Share Limitation for Certain Large Entities.--The 
Corporation shall establish, by regulation, market share limitations 
for large approved aggregators and large approved guarantors that would 
take effect only in the event the Corporation has reason to believe the 
supplemental standards established under subsection (b)(4) are 
insufficient to prevent or mitigate risks to the secondary mortgage 
market of the United States that could arise from the material 
financial distress or failure, or ongoing activities, of such approved 
aggregators and approved guarantors.
    (d) Recognition of Distinctions Between the Approved Entities and 
the Federal Home Loan Banks.--
            (1) In general.--Prior to promulgating any regulation or 
        taking any other formal or informal action of general 
        applicability and future effect relating to the Federal Home 
        Loan Banks, including the issuance of an advisory document or 
        examination guidance, the Chairperson, in consultation with the 
        Office of Federal Home Loan Bank Supervision, shall consider 
        the differences between the Federal Home Loan Banks and 
        approved entities with respect to--
                    (A) the Banks'--
                            (i) cooperative ownership structure;
                            (ii) mission of providing liquidity to its 
                        members;
                            (iii) affordable housing and community 
                        development mission;
                            (iv) capital structure; and
                            (v) joint and several liability; and
                    (B) any other differences that the Corporation 
                considers appropriate.
            (2) Capital considerations.--The Corporation, in 
        coordination with the Office of Federal Home Loan Bank 
        Supervision, shall establish capital standards, as required 
        under section 309(b), with respect to a Federal Home Loan Bank, 
        or subsidiary or joint office thereof, that is approved as an 
        aggregator under section 312, that--
                    (A) are adequate to support the role of a Federal 
                Home Loan Bank as a covered entity, consistent with the 
                safe and sound operations of the Bank or Banks 
                involved; and
                    (B) do not adversely impact the traditional 
                liquidity and advance business of the Federal Home Loan 
                Bank System or the marketability or creditworthiness of 
                Federal Home Loan Bank consolidated obligations.
    (e) Regulations Relating to Force-placed Insurance.--
            (1) In general.--The Corporation shall, by regulation, set 
        standards for the purchase of force-placed insurance by market 
        participants.
            (2) Limitation.--No standards developed, adopted, or 
        published under paragraph (1) shall concern the regulation of 
        the business of insurance or preempt any State law, regulation, 
        or procedure concerning the regulation of the business of 
        insurance.
    (f) Use and Protection of Personally Identifiable Information.--
            (1) Privacy considerations.--In collecting information from 
        any person, in publicly releasing information held by the 
        Corporation, or in requiring approved entities to publicly 
        report information, the Corporation shall take steps to ensure 
        that proprietary, personal, or confidential consumer 
        information that is protected from public disclosure under 
        section 552(b) or 552a of title 5, United States Code, or any 
        other provision of law, is not made public.
            (2) Treatment of approved entities.--With respect to the 
        application of any provision of the Right to Financial Privacy 
        Act of 1978 to a disclosure by an approved entity subject to 
        this subsection, the approved entity shall be treated as if it 
        were a ``financial institution'' as defined in section 1101 of 
        that Act (12 U.S.C. 3401).
            (3) Non disclosure.--
                    (A) In general.--Unless otherwise specified by this 
                Act, any personally identifiable information obtained 
                or maintained by the Corporation in connection with any 
                supervision or enforcement authority or function, 
                including the Office of General Counsel and Office of 
                the Inspector General of the Federal Mortgage Insurance 
                Corporation, may not be disclosed to any non 
                supervisory or non enforcement office, division, or 
                employee of the Corporation, or to any other Federal or 
                State agency unless--
                            (i) the information is necessary and 
                        appropriate for such office, division, or 
                        employee of the Corporation to comply with this 
                        Act, and the office, division, or employee 
                        cannot reasonably obtain the information 
                        through the normal course of business of such 
                        office, division, or employee;
                            (ii) the other Federal or State agency has 
                        satisfied any conditions of information sharing 
                        that the Corporation may establish, including 
                        treatment of personally identifiable 
                        information and sharing of information that 
                        shall conform to the standards for protection 
                        of the confidentiality of personally 
                        identifiable information and for data integrity 
                        and security that are applicable to Federal 
                        agencies; or
                            (iii) the records are relevant to a 
                        legitimate law enforcement inquiry, or 
                        intelligence or counterintelligence activity, 
                        investigation, or analysis related to 
                        international terrorism within the jurisdiction 
                        of the receiving entity.
                    (B) Protection of personally identifiable 
                information by specific offices.--Any office created 
                under section 207(a)(1)(B) shall--
                            (i) develop standards regarding treatment 
                        and confidentiality of personally identifiable 
                        information and the collection and sharing of 
                        information that are tailored to the purpose or 
                        mission of the office; and
                            (ii) obtain approval from the Chairperson 
                        of the standards developed under clause (i) 
                        prior to the operation of the office.
    (g) Consumer Privacy.--The Corporation shall not obtain from an 
approved entity any personally identifiable financial information about 
a consumer from the financial records of the approved entity, except--
            (1) if the financial records are reasonably described in a 
        request by the Corporation and the consumer provides written 
        permission for the disclosure of such information by an 
        approved entity to the Corporation; or
            (2) as may be specifically permitted or required under 
        other applicable provisions of law and in accordance with the 
        Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et 
        seq.).
    (h) Option for Approved Guarantors and Approved Aggregators.--
            (1) Establishment of process for approval.--The Corporation 
        may, if it determines necessary or appropriate, establish a 
        process and criteria for approved guarantors and approved 
        aggregators to apply to the Corporation for approval to operate 
        a cash window for the purchase of individual eligible single-
        family mortgage loans.
            (2) Requirements.--If the Corporation establishes a process 
        and criteria under paragraph (1), the Corporation--
                    (A) may grant approval to an approved guarantor or 
                an approved aggregator that applies to operate a cash 
                window for the purchase of individual eligible single-
                family mortgage loans only if the Corporation 
                determines that--
                            (i) the approved guarantor or approved 
                        aggregator meets the criteria established under 
                        paragraph (1); and
                            (ii) the operation of the cash window would 
                        not pose a risk to the Mortgage Insurance Fund; 
                        and
                    (B) to ensure the safety and soundness of each 
                approved guarantor and approved aggregator, shall 
                establish standards for the regulation, supervision, 
                and operation of each cash window that an approved 
                guarantor or approved aggregator is approved to operate 
                under this paragraph.

SEC. 310. EQUIVALENCY IN PROTECTION OF THE MORTGAGE INSURANCE FUND.

    In order to protect the Mortgage Insurance Fund and promote 
multiple sources of first loss positions, the Corporation shall seek to 
ensure equivalent loss absorption capacity between approved credit 
risk-sharing mechanisms pursuant to section 302 and capital standards 
for approved guarantors pursuant to section 311.

 Subtitle B--Approval and Supervision of Approved Entities for Single-
                           family Activities

SEC. 311. APPROVAL AND SUPERVISION OF GUARANTORS.

    (a) Standards for Approval of Guarantors.--
            (1) In general.--The Corporation shall develop, adopt, and 
        publish standards for the approval by the Corporation of 
        guarantors to guarantee the timely payment of principal and 
        interest on securities collateralized by eligible single-family 
        mortgage loans and insured by the Corporation.
            (2) Required standards.--The standards required under 
        paragraph (1) shall include--
                    (A) the financial history and condition of the 
                guarantor;
                    (B) a requirement that the guarantor maintain 
                capital levels as defined by the Corporation, pursuant 
                to subsection (g);
                    (C) the capability of the management of the 
                guarantor;
                    (D) the general character and fitness of the 
                officers and directors of the guarantor, including the 
                compliance history of the guarantor's officers and 
                directors with Federal and State laws and the rules and 
                regulations promulgated by self-regulatory 
                organizations (as defined in section 3(a)(26) of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), 
                as applicable;
                    (E) the risk presented by the guarantor to the 
                Mortgage Insurance Fund;
                    (F) the adequacy of insurance and fidelity coverage 
                of the guarantor;
                    (G) the ability of the guarantor to--
                            (i) at the discretion of the guarantor, 
                        transfer investment risk and credit risk to 
                        private market holders in the single-family 
                        market in accordance with the credit risk-
                        sharing mechanisms approved by the Corporation 
                        under section 302;
                            (ii) create mechanisms to guarantee multi-
                        lender pools; and
                            (iii) ensure that eligible single-family 
                        mortgage loans that collateralize a single-
                        family covered security insured under this 
                        title are originated in compliance with the 
                        requirements of this Act;
                    (H) the capacity of the guarantor to take the first 
                loss position;
                    (I) that the guarantor has the capacity to 
                guarantee eligible single-family mortgage loans in a 
                manner that furthers the purposes of the Corporation 
                described in section 201(b)(5);
                    (J) a requirement that the guarantor timely issue 
                publicly available audited financial statements on an 
                annual basis prepared in accordance with generally 
                accepted accounting principles used in the industry;
                    (K) that the guarantor is in compliance with 
                section 210(a)(3);
                    (L) that the guarantor has substantial analytical 
                capabilities to effectively manage credit risk;
                    (M) that the guarantor does not originate eligible 
                single-family mortgage loans and is not an affiliate of 
                a person that actively engages in the business of 
                originating eligible single-family mortgage loans; and
                    (N) any other standard the Corporation determines 
                necessary to protect the Mortgage Insurance Fund.
            (3) Rule of construction.--Nothing in subparagraph (I) of 
        paragraph (2) shall be construed to prevent the Corporation 
        from approving a small or specialty guarantor, provided that 
        the guarantor has the capacity to adequately diversify its risk 
        to meet appropriate safety and soundness concerns.
            (4) Consultation and coordination.--To promote consistency 
        and minimize regulatory conflict, the Corporation shall consult 
        and coordinate with appropriate Federal and State regulators 
        and officials when developing standards pursuant to this 
        subsection.
    (b) Application and Approval.--
            (1) Application process.--
                    (A) In general.--The Corporation shall establish an 
                application process, in such form and manner and 
                requiring such information as the Corporation may 
                require, for the approval of a guarantor under this 
                section.
                    (B) Application review.--The Corporation shall 
                establish internal timelines for its processing of an 
                application under this section, including timelines for 
                any action to approve or to deny an application under 
                this section.
                    (C) Prohibition on control by insured depository 
                institutions or affiliates of insured depository 
                institutions.--
                            (i) In general.--It shall be unlawful for 
                        an insured depository institution or an 
                        affiliate of an insured depository institution 
                        to control an approved guarantor.
                            (ii) Rule of construction regarding 
                        control.--For purposes of this subparagraph, 
                        any insured depository institution or affiliate 
                        of an insured depository institution has 
                        control over an approved guarantor if the 
                        company directly or indirectly or acting 
                        through 1 or more other persons owns, controls, 
                        or has power to vote 10 percent or more of any 
                        class of voting shares of the approved 
                        guarantor.
            (2) Approval.--The Corporation may approve any application 
        made pursuant to paragraph (1), provided the guarantor meets 
        the standards established under subsection (a).
            (3) Denial.--The Corporation shall have the authority to 
        deny any application made pursuant to paragraph (1) if an 
        officer or director of the guarantor has, at any time prior to 
        the date of the approval of such application, been--
                    (A) subject to a statutory disqualification 
                pursuant to section 3(a)(39) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(39)); or
                    (B) suspended, removed, or prohibited from 
                participation pursuant to section 8(g) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited 
                from certain action pursuant to paragraphs (6) or (7) 
                of section 8(e) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(e)), subject to an action resulting in 
                a written agreement or other written statement under 
                section 8(u)(1) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(u)(1)), for which a violation may be 
                enforced by an appropriate Federal banking agency, or 
                subject to any final order issued with respect to any 
                administrative enforcement proceeding initiated by such 
                agency under section 8 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818).
            (4) Notice and publication.--The Corporation shall--
                    (A) provide prompt notice to a guarantor of the 
                approval or denial of any application of the guarantor 
                to become an approved guarantor under this section;
                    (B) publish a notice in the Federal Register upon 
                approval of any guarantor; and
                    (C) maintain an updated list of approved guarantors 
                on the website of the Corporation.
    (c) Requirement to Maintain Approval Status.--
            (1) Authority to issue order.--If the Corporation 
        determines that an approved guarantor no longer meets the 
        standards for such approval or violates a requirement under 
        this Act, including any standard, regulation, or order 
        promulgated in accordance with this Act, the Corporation may--
                    (A) suspend or revoke the approved status of the 
                approved guarantor; or
                    (B) take any other action with respect to such 
                approved guarantor as may be authorized under this Act.
            (2) Rule of construction.--The suspension or revocation of 
        the approved status of an approved guarantor under this section 
        shall have no effect on the status as a covered security of any 
        covered security collateralized by eligible mortgage loans with 
        which the approved guarantor contracted prior to the suspension 
        or revocation.
            (3) Publication.--The Corporation shall--
                    (A) promptly publish a notice in the Federal 
                Register upon suspension or revocation of the approval 
                of any approved guarantor; and
                    (B) maintain an updated list of such approved 
                guarantors on the website of the Corporation.
            (4) Definition.--In this subsection, the term ``violate'' 
        includes any action, taken alone or with others, for or toward 
        causing, bringing about, participating in, counseling, or 
        aiding or abetting, a violation of the requirements under this 
        Act.
    (d) Prudential Standards for Supervision.--The Corporation shall 
prescribe prudential standards for approved guarantors in order to--
            (1) ensure--
                    (A) the safety and soundness of approved 
                guarantors; and
                    (B) the maintenance of approval standards by 
                approved guarantors; and
            (2) minimize the risk presented to the Mortgage Insurance 
        Fund.
    (e) Reports and Examinations.--For purposes of determining whether 
an approved guarantor is fulfilling the requirements under this Act, 
the Corporation shall have the authority to require reports from and 
examine an approved guarantor, in the same manner and to the same 
extent as the Federal Deposit Insurance Corporation has with respect to 
an insured depository institution under the provisions of subsection 
(a) of section 9 of the Federal Deposit Insurance Act (12 U.S.C. 1819).
    (f) Enforcement.--The Corporation shall have the authority to 
enforce the provisions of this Act with respect to an approved 
guarantor, in the same manner and to the same extent as the Federal 
Deposit Insurance Corporation has with respect to an insured depository 
institution under the provisions of subsections (b) through (n) of 
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818).
    (g) Capital Standards.--
            (1) In general.--Pursuant to the requirement to establish 
        capital and related solvency standards under section 309(b), 
        the Corporation shall establish standards for approved 
        guarantors that require an approved guarantor to--
                    (A) hold 10 percent capital; and
                    (B) maintain solvency levels adequate for the 
                approved guarantor to withstand losses that might be 
                incurred by the approved guarantor in a period of 
                economic stress, including national and regional home 
                price declines, such as those observed during moderate 
                to severe recessions in the United States.
            (2) Risk-sharing considerations.--For purposes of paragraph 
        (1), the Corporation shall consider the extent, amount, and 
        form of risk-sharing and risk mitigation through the use by 
        approved guarantors of credit risk-sharing mechanisms approved 
        pursuant to section 302(b)(4). The Corporation shall allow such 
        risk-sharing and risk mitigation to fulfill required amounts of 
        capital to be held under paragraph (1)(A) such that it ensures 
        an equivalent amount of loss absorption capacity as required 
        under section 302(a)(1)(B) while maintaining an appropriate 
        structure of capital as determined by the Corporation.
            (3) Stress tests.--The Corporation shall conduct 
        appropriate stress tests of each approved guarantor that has 
        total assets of more than $10,000,000,000, provided that such 
        stress tests shall be--
                    (A) specifically tailored to the business model of 
                the approved guarantor; and
                    (B) utilized to--
                            (i) ensure the safety and soundness of the 
                        approved guarantor; and
                            (ii) minimize the risk the approved 
                        guarantor may present to the Mortgage Insurance 
                        Fund.
    (h) Resolution Authority for Failing Guarantors.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Corporation shall--
                    (A) have the authority to act, in the same manner 
                and to the same extent, with respect to an approved 
                guarantor as the Federal Deposit Insurance Corporation 
                has with respect to an insured depository institution 
                under subsections (c) through (s) of section 11 of the 
                Federal Deposit Insurance Act (12 U.S.C. 1821), section 
                12 of the Federal Deposit Insurance Act (12 U.S.C. 
                1822), and section 13 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1823), while tailoring such actions to 
                the specific business model of the approved guarantor, 
                as may be necessary to properly exercise such authority 
                under this subsection;
                    (B) in carrying out any authority provided in 
                subparagraph (A), act, in the same manner and to the 
                same extent, with respect to the Mortgage Insurance 
                Fund as the Federal Deposit Insurance Corporation may 
                act with respect to the Deposit Insurance Fund under 
                the provisions of the Federal Deposit Insurance Act set 
                forth in subparagraph (A);
                    (C) prescribe regulations governing the applicable 
                rights, duties, and obligations of an approved 
                guarantor placed into resolution under this subsection, 
                its creditors, counterparties, and other persons, as 
                the Corporation deems necessary to properly exercise 
                the authority provided in subparagraph (A);
                    (D) consistent with the authorities provided in 
                subparagraph (A), immediately place an insolvent 
                approved guarantor into receivership; and
                    (E) upon placing an approved guarantor into 
                receivership, treat single-family covered securities 
                insured by the Corporation under section 303 in the 
                same manner as the Federal Deposit Insurance 
                Corporation treats deposit liabilities under section 
                11(d)(11)(A)(ii) of the Federal Deposit Insurance Act 
                and insured deposits under section 11(f) of the Federal 
                Deposit Insurance Act, where the Corporation shall have 
                the same right of subrogation as the Federal Deposit 
                Insurance Corporation has under section 11(g) of the 
                Federal Deposit Insurance Act.
            (2) Least-cost resolution required.--The Corporation may 
        not exercise any authority under paragraph (1) with respect to 
        any approved guarantor unless the total amount of the 
        expenditures by the Corporation and obligations incurred by the 
        Corporation in connection with the exercise of any such 
        authority with respect to such approved guarantor is the least 
        costly to the Mortgage Insurance Fund, consistent with the 
        least cost approach specified in the Federal Deposit Insurance 
        Act (12 U.S.C. 1811 et seq.), of all possible methods for 
        meeting the Corporation's obligations under this Act and 
        expeditiously concluding its resolution activities, subject to 
        section 13 of the Federal Deposit Insurance Act where the 
        Corporation and the Board of Directors shall have the same 
        authority as the Federal Deposit Insurance Corporation and the 
        Federal Deposit Insurance Corporation's board of directors.
            (3) Taxpayer protection.--The Corporation, in carrying out 
        any authority provided in this subsection, shall prescribe 
        regulations to ensure that any amounts owed to the United 
        States, unless the United States agrees or consents otherwise, 
        shall have priority following administrative expenses of the 
        receiver when satisfying unsecured claims against an approved 
        guarantor, or the receiver therefor, that are proven to the 
        satisfaction of the receiver.
    (i) Hearing.--Upon notice of denial of an application for approval 
under subsection (b) or upon a notice of suspension or revocation of 
the approved status of an approved guarantor under subsection (c), the 
applicant or approved guarantor shall be afforded a hearing under 
subsection (h) of section 8 of the Federal Deposit Insurance Act (12 
U.S.C. 1818(h)), in the same manner and to the same extent as if the 
Corporation were the appropriate Federal banking agency, provided that 
the approved guarantor submits a request to the Corporation for a 
hearing not later than 10 days after the date on which the notice is 
published under subsection (b)(3) or (c)(3).
    (j) Other Activities.--An approved guarantor shall be prohibited 
from being an approved aggregator.
    (k) Provision of Pool Level Insurance.--Subject to such standards 
as the Corporation may provide, an approved guarantor may provide 
insurance or other credit enhancement on a pool of eligible single-
family mortgage loans collateralizing a single-family covered security 
insured under this title.
    (l) Prohibited Activity.--An approved guarantor may not--
            (1) originate eligible single-family mortgage loans; or
            (2) be an affiliate of a person that actively engages in 
        the business of originating eligible single-family mortgage 
        loans.
    (m) Guarantors Required to Pay Claims.--Subject to such standards 
as the Corporation may provide, an approved guarantor may not for any 
reason withhold payment of funds that would ensure holders of single-
family covered securities receive timely payment of principal and 
interest on single-family covered securities. The Corporation shall by 
regulation develop a process for the mediation and resolution of 
disputed payment amounts.

SEC. 312. APPROVAL AND SUPERVISION OF AGGREGATORS.

    (a) Standards for Approval of Mortgage Aggregators.--
            (1) In general.--The Corporation shall develop, adopt, and 
        publish standards for the approval by the Corporation of 
        mortgage aggregators to deliver eligible single-family mortgage 
        loans to the Securitization Platform for securitization by such 
        aggregator as a single-family covered security.
            (2) Required standards.--The standards required under 
        paragraph (1) shall include standards with respect to the 
        ability of mortgage aggregator to--
                    (A) aggregate eligible single-family mortgage loans 
                into pools, including multi-lender pools, as 
                appropriate;
                    (B) transfer investment risk and credit risk to 
                private market participants in accordance with the 
                credit risk-sharing mechanisms approved by the 
                Corporation under section 302;
                    (C) ensure equitable access to the secondary 
                mortgage market for single-family covered securities 
                for all institutions regardless of size or geographic 
                location; and
                    (D) ensure that eligible single-family mortgage 
                loans that collateralize a single-family covered 
                security insured under this title are originated in 
                compliance with the requirements of this Act.
            (3) Additional required standards.--The standards required 
        under paragraph (1) shall also include--
                    (A) the financial history and condition of the 
                mortgage aggregator;
                    (B) the adequacy of the capital structure of the 
                mortgage aggregator;
                    (C) the capability of the management of the 
                mortgage aggregator;
                    (D) the general character and fitness of the 
                officers and directors of the mortgage aggregator, 
                including the compliance history of the mortgage 
                aggregator's officers and directors with Federal and 
                State laws and the rules and regulations promulgated by 
                self-regulatory organizations (as defined in section 
                3(a)(26) of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c(a)(26)), as applicable;
                    (E) the risk presented by the mortgage aggregator 
                to the Mortgage Insurance Fund;
                    (F) the adequacy of insurance and fidelity coverage 
                of the mortgage aggregator;
                    (G) a requirement that the mortgage aggregator 
                submit audited financial statements to the Corporation;
                    (H) that the mortgage aggregator has the capacity 
                to aggregate mortgage loans in a manner that furthers 
                purposes of the Corporation described in section 
                201(b)(5);
                    (I) that the mortgage aggregator is in compliance 
                with section 210(a)(3); and
                    (J) any other standard the Corporation determines 
                necessary to protect the Mortgage Insurance Fund.
            (4) Rule of construction.--Nothing in subparagraph (H) of 
        paragraph (3) shall be construed to prevent the Corporation 
        from approving a small or specialty mortgage aggregator, 
        provided that the mortgage aggregator has the capacity to 
        adequately diversify its risk to meet appropriate safety and 
        soundness concerns of the Corporation.
            (5) Consultation and coordination.--To promote consistency 
        and minimize regulatory conflict, the Corporation shall consult 
        and coordinate with appropriate Federal and State regulators 
        and officials when developing standards pursuant to this 
        subsection.
    (b) Application and Approval.--
            (1) Application process.--
                    (A) In general.--The Corporation shall establish an 
                application process, in such form and manner and 
                requiring such information as the Corporation may 
                require, for the approval of a mortgage aggregator 
                under this section.
                    (B) Application review.--The Corporation shall 
                establish internal timelines for its processing of an 
                application under this section, including timelines for 
                any action to approve or to deny an application under 
                this section.
            (2) Approval.--The Corporation may approve any application 
        made pursuant to paragraph (1), provided the mortgage 
        aggregator meets the standards established under subsection 
        (a).
            (3) Denial.--The Corporation shall have the authority to 
        deny any application made pursuant to paragraph (1) if an 
        officer or director of the mortgage aggregator has, at any time 
        prior to the date of the approval of such application, been--
                    (A) subject to a statutory disqualification 
                pursuant to section 3(a)(39) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(39)); or
                    (B) suspended, removed, or prohibited from 
                participation pursuant to section 8(g) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited 
                from certain action pursuant to paragraphs (6) or (7) 
                of section 8(e) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(e)), subject to an action resulting in 
                a written agreement or other written statement under 
                section 8(u)(1) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(u)(1)), for which a violation may be 
                enforced by an appropriate Federal banking agency, or 
                subject to any final order issued with respect to any 
                administrative enforcement proceeding initiated by such 
                agency under section 8 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818).
            (4) Notice and publication.--The Corporation shall--
                    (A) provide prompt notice to a mortgage aggregator 
                of the approval or denial of any application of the 
                mortgage aggregator to become an approved aggregator 
                under this section;
                    (B) publish a notice in the Federal Register upon 
                approval of any mortgage aggregator; and
                    (C) maintain an updated list of approved 
                aggregators on the website of the Corporation.
    (c) Requirement to Maintain Approval Status.--
            (1) Authority to issue order.--If the Corporation 
        determines that an approved aggregator no longer meets the 
        standards for such approval or violates a requirement under 
        this Act, including any standard, regulation, or order 
        promulgated in accordance with this Act, the Corporation may--
                    (A) suspend or revoke the approved status of the 
                approved aggregator; or
                    (B) take any other action with respect to such 
                approved aggregator as may be authorized under this 
                Act.
            (2) Rule of construction.--The suspension or revocation of 
        the approved status of an approved aggregator under this 
        section shall have no effect on the status as a covered 
        security of any covered security collateralized by eligible 
        mortgage loans with which the approved aggregator contracted 
        prior to the suspension or revocation.
            (3) Publication.--The Corporation shall--
                    (A) promptly publish a notice in the Federal 
                Register upon suspension or revocation of the approval 
                of any approved aggregator; and
                    (B) maintain an updated list of such approved 
                aggregators on the website of the Corporation.
            (4) Definition.--In this subsection, the term ``violate'' 
        includes any action, taken alone or with others, for or toward 
        causing, bringing about, participating in, counseling, or 
        aiding or abetting, a violation of the requirements under this 
        Act.
    (d) Prudential Standards for Supervision.--
            (1) In general.--Subject to subsection (k)(1), the 
        Corporation shall prescribe prudential standards for approved 
        aggregators in order to--
                    (A) ensure--
                            (i) the safety and soundness of approved 
                        aggregators; and
                            (ii) the maintenance of approval standards 
                        by approved aggregators; and
                    (B) minimize the risk presented to the Mortgage 
                Insurance Fund.
            (2) Recognition of distinctions between aggregators that 
        are insured depository institutions, affiliates of insured 
        depository institutions, and those that are not.--In carrying 
        out the requirements under paragraph (1), the Corporation 
        shall--
                    (A) distinguish between prudential standards for 
                approved aggregators that are insured depository 
                institutions, approved aggregators that are affiliates 
                of insured depository institutions, and approved 
                aggregators that are neither insured depository 
                institutions nor affiliates of insured depository 
                institutions; and
                    (B) consult and coordinate with Federal and State 
                banking agencies when establishing prudential standards 
                for approved aggregators that are insured depository 
                institutions and approved aggregators that are 
                affiliates of insured depository institutions, in order 
                to minimize duplication of and conflicts with the 
                prudential standards set by the appropriate Federal or 
                State banking agencies of insured depository 
                institutions or the affiliates of insured depository 
                institutions.
            (3) Rule of construction.--Nothing in this section shall 
        supersede the prudential standards established by the 
        appropriate Federal banking agencies.
    (e) Reports and Examinations.--For purposes of gathering 
information to determine whether an approved aggregator is fulfilling 
the requirements under this Act, the Corporation shall have the 
authority to require reports from and examine an approved aggregator as 
follows:
            (1) Not insured depository institutions or affiliates.--For 
        an approved aggregator that is neither an insured depository 
        institution nor an affiliate of an insured depository 
        institution, the Corporation shall have the authority to 
        require reports from and examine an approved aggregator, in the 
        same manner and to the same extent as the Federal Deposit 
        Insurance Corporation has with respect to an insured depository 
        institution under the provisions of subsection (a) of section 9 
        of the Federal Deposit Insurance Act (12 U.S.C. 1819).
            (2) Insured depository institutions and affiliates.--For an 
        approved aggregator that is an insured depository institution 
        or an affiliate of an insured depository institutions:
                    (A) Use of existing reports to reduce 
                examinations.--To the fullest extent possible, the 
                Corporation shall--
                            (i) rely on the examinations, inspections, 
                        and reports of the appropriate Federal or State 
                        banking agencies;
                            (ii) avoid duplication of examination 
                        activities, reporting requirements, and 
                        requests for information; and
                            (iii) ensure that the depository 
                        institution holding company and the 
                        subsidiaries of the depository institution 
                        holding company are not subject to conflicting 
                        supervisory demands by the Corporation and 
                        appropriate Federal and State banking agencies.
                    (B) Examination authority.--If the Corporation 
                determines that the examinations, inspections, and 
                reports obtained pursuant to subparagraph (A) are 
                insufficient for the Corporation to adequately 
                supervise an approved aggregator for compliance with 
                this Act, the Corporation shall have the authority to 
                require reports from and examine the approved 
                aggregator for compliance with this Act, in the same 
                manner and to the same extent as the Board of Governors 
                of the Federal Reserve System has with respect to a 
                subsidiary of a bank holding companyunder the 
                provisions of paragraphs (1) and (2) of subsection (c) 
                of section 5 of the Bank Holding Company Act (12 U.S.C. 
                1844).
                    (C) Regulatory notice.--
                            (i) Regulatory notice.--Before commencing 
                        an examination of an approved aggregator under 
                        this paragraph, the Corporation shall provide 
                        reasonable notice to, and coordinate with, the 
                        appropriate Federal or State banking agency or 
                        State regulatory agency.
                            (ii) Rule of construction.--Nothing in this 
                        Act shall limit the authority of the 
                        Corporation to require reports of and examine 
                        an approved aggregator--
                                    (I) to verify the sale of, and 
                                funds received from, the first loss 
                                position; and
                                    (II) when the Corporation becomes 
                                aware--
                                            (aa) of a material threat 
                                        to the safety and soundness of 
                                        the approved aggregator;
                                            (bb) that the approved 
                                        aggregator is in material 
                                        violation of this Act or the 
                                        rules promulgated by the 
                                        Corporation pursuant to this 
                                        Act; or
                                            (cc) that the activities of 
                                        the approved aggregator 
                                        threaten the financial 
                                        stability of the housing 
                                        finance system or the Mortgage 
                                        Insurance Fund.
    (f) Enforcement.--The Corporation shall have the authority to 
enforce the provisions of this Act with respect to an approved 
aggregator, in the same manner and to the same extent as the Federal 
Deposit Insurance Corporation has with respect to an insured depository 
institution under the provisions of subsections (b) through (n) of 
section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818), 
provided that to the extent that the Corporation and an appropriate 
Federal banking agency are each authorized to enforce prudential 
standards with respect to an approved aggregator that is an insured 
depository institution or an affiliate of an insured depository 
institution, the appropriate Federal banking agency shall have primary 
authority to enforce such standards.
    (g) Capital Standards.--For approved aggregators that are neither 
an insured depository institution nor an affiliate of an insured 
depository institution the following shall apply:
            (1) In general.--Pursuant to the requirement to establish 
        capital and related solvency standards under section 309(b), 
        the Corporation shall establish standards for approved 
        aggregators that require an approved aggregator--
                    (A) to hold capital in an amount comparable to that 
                which is required to be held by insured depository 
                institutions and their affiliates with respect to their 
                applicable aggregating activities; and
                    (B) to maintain solvency levels adequate for the 
                approved aggregator to withstand losses that might be 
                incurred by the approved aggregator in a period of 
                economic stress, including national and regional home 
                price declines, such as those observed during moderate 
                to severe recessions in the United States.
            (2) Stress tests.--The Corporation shall conduct 
        appropriate stress tests of each approved aggregator that has 
        total assets of more than $10,000,000,000, provided that such 
        stress tests shall be--
                    (A) specifically tailored to the business model of 
                the approved aggregator;
                    (B) utilized to--
                            (i) ensure the safety and soundness of the 
                        approved aggregator; and
                            (ii) minimize the risk the approved 
                        aggregator may present to the Mortgage 
                        Insurance Fund; and
                    (C) coordinated with the Board of Governors of the 
                Federal Reserve System, if the approved aggregator is 
                an affiliate of an insured depository institution.
    (h) Resolution Authority for Failing Aggregators.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Corporation shall--
                    (A) have the authority to act, in the same manner 
                and to the same extent, with respect to an approved 
                aggregator that is not an insured depository 
                institution as the Federal Deposit Insurance 
                Corporation has with respect to an insured depository 
                institution under subsections (c) through (s) of 
                section 11 of the Federal Deposit Insurance Act (12 
                U.S.C. 1821), section 12 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1822), and section 13 of the 
                Federal Deposit Insurance Act (12 U.S.C. 1823), while 
                tailoring such actions to the specific business model 
                of the approved aggregator, as may be necessary to 
                properly exercise such authority under this subsection;
                    (B) in carrying out any authority provided under 
                subparagraph (A), act, in the same manner and to the 
                same extent, with respect to the Mortgage Insurance 
                Fund as the Federal Deposit Insurance Corporation may 
                act with respect to the Deposit Insurance Fund under 
                the provisions of the Federal Deposit Insurance Act set 
                forth in subparagraph (A);
                    (C) prescribe regulations governing the applicable 
                rights, duties, and obligations of an approved 
                aggregator that is not an insured depository 
                institution placed into resolution under this 
                subsection, its creditors, counterparties, and other 
                persons, as the Corporation deems necessary to properly 
                exercise the authority provided in subparagraph (A); 
                and
                    (D) consistent with the authorities provided in 
                subparagraph (A), immediately place an insolvent 
                approved aggregator that is not an insured depository 
                institution into receivership.
            (2) Rule of construction.--If an insolvent approved 
        aggregator is an insured depository institution, the 
        Corporation shall recommend, in writing, to such approved 
        aggregator's appropriate Federal banking agency or State 
        banking regulator to resolve such approved aggregator, which 
        agency shall have sole authority to resolve such aggregator 
        pursuant to section 11(c) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1821(c)) and other appropriate sections of the 
        Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) or 
        appropriate Federal or State law, as applicable.
            (3) Least-cost resolution required.--The Corporation may 
        not exercise any authority under paragraph (1) with respect to 
        any approved aggregator that is not an insured depository 
        institution unless the total amount of the expenditures by the 
        Corporation and obligations incurred by the Corporation in 
        connection with the exercise of any such authority with respect 
        to such approved aggregator is the least costly to the Mortgage 
        Insurance Fund, consistent with the least cost approach 
        specified in the Federal Deposit Insurance Act (12 U.S.C. 1811 
        et seq.), of all possible methods for meeting the Corporation's 
        obligations under this Act and expeditiously concluding its 
        resolution activities, subject to section 13 of the Federal 
        Deposit Insurance Act where the Corporation and the Board of 
        Directors shall have the same authority as the Federal Deposit 
        Insurance Corporation and the Federal Deposit Insurance 
        Corporation's board of directors.
            (4) Taxpayer protection.--The Corporation, in carrying out 
        any authority provided in this subsection, shall prescribe 
        regulations to ensure that any amounts owed to the United 
        States, unless the United States agrees or consents otherwise, 
        shall have priority following administrative expenses of the 
        receiver when satisfying unsecured claims against an approved 
        aggregator, or the receiver therefor, that are proven to the 
        satisfaction of the receiver.
    (i) Hearing.--Upon notice of denial of an application for approval 
under subsection (b) or upon a notice of suspension or revocation of 
the approved status of an approved aggregator under subsection (c), the 
applicant or approved aggregator shall be afforded a hearing under 
subsection (h) of section 8 of the Federal Deposit Insurance Act (12 
U.S.C. 1818(h)), in the same manner and to the same extent as if the 
Corporation were the appropriate Federal banking agency, provided that 
the approved aggregator submits a request to the Corporation for a 
hearing not later than 10 days after the date on which the notice is 
published under subsection (b)(3) or (c)(3).
    (j) Other Activities.--An approved aggregator shall be prohibited 
from being an approved guarantor.
    (k) Information Sharing Regarding Insured Depository Institutions 
and Affiliates of Insured Depository Institutions.--
            (1) By the corporation.--To the extent the Corporation has 
        relevant information indicating that an approved aggregator 
        that is an insured depository institution or an affiliate of an 
        insured depository institution (A) faces a material threat to 
        its safety and soundness, including insufficient capital, (B) 
        may be in material violation of Federal banking law, or (C) may 
        threaten the financial stability of the housing finance system 
        or the Mortgage Insurance Fund, the Corporation shall notify, 
        in writing, such appropriate Federal banking agency that such 
        conditions exist. The Corporation shall have no authority to 
        enforce prudential standards established by an appropriate 
        Federal banking agency pursuant to the appropriate Federal 
        banking agency's authority.
            (2) By federal and state banking agencies.--To the extent 
        an appropriate Federal banking agency or State banking agency 
        has relevant information indicating that an approved aggregator 
        that is an insured depository institution or an affiliate of an 
        insured depository institution (A) faces a material threat to 
        its safety and soundness, including insufficient capital, (B) 
        may be in material violation of this Act or the rules 
        promulgated by the Corporation pursuant to this Act, or (C) may 
        threaten the financial stability of the housing finance system 
        or the Mortgage Insurance Fund, such appropriate Federal 
        banking agency or State banking agency shall notify, in 
        writing, the Corporation that such conditions exist.
    (l) Rule of Construction Regarding Preservation of Corporation 
Authority.--Nothing in this section limits, or shall be construed to 
limit, the authority of the Corporation to provide exemptions to, or 
adjustments for, the provisions of this section based on the asset size 
of an approved aggregator, or other criteria, as the Corporation deems 
appropriate, in order to reduce regulatory burdens while appropriately 
balancing protection of the Mortgage Insurance Fund.
    (m) Federal Home Loan Banks, Joint Offices, and Bank Subsidiaries 
as Aggregators.--
            (1) Federal home loan bank act.--
                    (A) Establishment of joint offices and 
                subsidiaries.--
                            (i) Amendment.--Section 12 of the Federal 
                        Home Loan Bank Act (12 U.S.C. 1432) is amended 
                        by adding at the end the following:
    ``(c) Subject to such regulations as may be prescribed by the 
Agency, in coordination with the Federal Mortgage Insurance 
Corporation, 1 or more Federal Home Loan Banks may establish a 
subsidiary or joint office in any form under the laws of any State, 
subject to the approval of the Corporation. Any subsidiary or joint 
office established under this subsection shall be restricted to 
engaging in activities related to being an approved aggregator, as that 
term is defined under section 2 of Housing Finance Reform and Taxpayer 
Protection Act of 2014.
    ``(d) Subject to such regulations as may be prescribed by the 
Agency, in coordination with the Federal Mortgage Insurance 
Corporation, 1 or more Federal Home Loan Banks or any subsidiary or 
joint office of a Federal Home Loan Bank established under subsection 
(c) may apply to become, and may become, an approved aggregator, as 
that term is defined under section 2 of the Housing Finance Reform and 
Taxpayer Protection Act of 2014.''.
                            (ii) Effective date.--The amendments made 
                        by clause (i) shall take effect on the system 
                        certification date.
                    (B) Cdfis.--
                            (i) Amendment.--Section 10(a) of the 
                        Federal Home Loan Bank Act (12 U.S.C. 1430(a)) 
                        is amended--
                                    (I) in paragraph (2)(B), by 
                                inserting ``or community development 
                                financial institution (as defined in 
                                section 103 of the Riegle Community 
                                Development and Regulatory Improvement 
                                Act of 1994 (12 U.S.C. 4702))'' after 
                                ``community financial institution''; 
                                and
                                    (II) in paragraph (3)(E), by 
                                inserting ``or community development 
                                financial institution (as defined in 
                                section 103 of the Riegle Community 
                                Development and Regulatory Improvement 
                                Act of 1994 (12 U.S.C. 4702))'' after 
                                ``community financial institution''.
                            (ii) Effective date.--The amendment made by 
                        clause (i) shall take effect on the agency 
                        transfer date.
            (2) Not consolidated debt.--Notwithstanding section 11 of 
        the Federal Home Loan Bank Act (12 U.S.C. 1431), any covered 
        security secured by eligible mortgage loans transferred to the 
        Platform by a Federal Home Loan Bank or subsidiary or joint 
        office thereof, acting as an approved aggregator, shall not be 
        designated as, or considered to be the joint and several 
        obligations of the Federal Home Loan Banks.

SEC. 313. APPROVAL OF PRIVATE MORTGAGE INSURERS.

    (a) Standards for Approval of Private Mortgage Insurers.--
            (1) In general.--The Corporation shall develop, adopt, and 
        publish standards for the approval by the Corporation of 
        private mortgage insurers to provide private mortgage loan 
        insurance on eligible single-family mortgage loans that 
        collateralize single-family covered securities.
            (2) Required standards.--The standards required under 
        paragraph (1) shall include--
                    (A) the financial history and current financial 
                condition, including capital and loss reserves to 
                comply with any applicable State law or regulation, of 
                the private mortgage insurer;
                    (B) the capability of the management of the private 
                mortgage insurer;
                    (C) the general character and fitness of the 
                officers and directors of the private mortgage insurer, 
                including the compliance history of the private 
                mortgage insurer's officers and directors with Federal 
                and State laws and the rules and regulations 
                promulgated by self-regulatory organizations (as 
                defined in section 3(a)(26) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(26)), as applicable;
                    (D) that the private mortgage insurer has the 
                capacity to insure eligible single-family mortgage 
                loans in a manner to comply with any applicable State 
                law or regulation and that furthers the purposes of the 
                Corporation as described in section 201(b)(5);
                    (E) the risk presented by the private mortgage 
                insurer to the Mortgage Insurance Fund;
                    (F) the adequacy of insurance and fidelity coverage 
                of the private mortgage insurer;
                    (G) a requirement that the private mortgage insurer 
                submit audited financial statements to the Corporation; 
                and
                    (H) any other standard the Corporation, after 
                notice and public comment, determines necessary to 
                avoid significant risk to the Mortgage Insurance Fund, 
                provided the standard does not materially conflict with 
                State law.
            (3) Rule of construction.--Nothing in subparagraph (D) of 
        paragraph (2) shall be construed to prevent the Corporation 
        from approving a small or specialty private mortgage insurer, 
        provided that the private mortgage insurer has the capacity to 
        adequately diversify its risk to meet solvency standards 
        required by any applicable State law or regulation.
            (4) Consultation and coordination.--To promote consistency 
        and minimize regulatory conflict, the Corporation shall consult 
        and coordinate with appropriate Federal regulators and State 
        regulators and officials when developing standards pursuant to 
        this subsection.
    (b) Application and Approval.--
            (1) Application process.--
                    (A) In general.--The Corporation shall establish an 
                application process, in such form and manner and 
                requiring such information as the Corporation may 
                require, for the approval of a private mortgage insurer 
                under this section.
                    (B) Application review.--The Corporation shall 
                establish internal timelines for its processing of an 
                application under this section, including timelines for 
                any action to approve or to deny an application under 
                this section.
                    (C) Notification.--The Corporation shall notify the 
                appropriate State insurance regulator upon receipt of 
                any application by a private mortgage insurer to become 
                an approved private mortgage insurer under this 
                section.
            (2) Approval.--The Corporation may approve any application 
        made pursuant to paragraph (1), provided the private mortgage 
        insurer meets the standards established under subsection (a).
            (3) Denial.--The Corporation shall have the authority to 
        deny any application made pursuant to paragraph (1) if an 
        officer or director of the private mortgage insurer has, at any 
        time prior to the date of the approval of such application, 
        been--
                    (A) subject to a statutory disqualification 
                pursuant to section 3(a)(39) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(39)); or
                    (B) suspended, removed, or prohibited from 
                participation pursuant to section 8(g) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited 
                from certain action pursuant to paragraphs (6) or (7) 
                of section 8(e) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(e)), subject to an action resulting in 
                a written agreement or other written statement under 
                section 8(u)(1) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(u)(1)), for which a violation may be 
                enforced by an appropriate Federal banking agency, or 
                subject to any final order issued with respect to any 
                administrative enforcement proceeding initiated by such 
                agency under section 8 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818).
            (4) Notice and publication.--The Corporation shall--
                    (A) provide prompt notice to a private mortgage 
                insurer of the approval or denial of any application of 
                the private mortgage insurer to become an approved 
                private mortgage insurer under this section;
                    (B) publish a notice in the Federal Register upon 
                approval of any private mortgage insurer;
                    (C) maintain an updated list of approved private 
                mortgage insurers on the website of the Corporation; 
                and
                    (D) provide prompt notice to the appropriate State 
                insurance regulator upon the approval or denial of any 
                application of a private mortgage insurer to become an 
                approved private mortgage insurer under this section.
            (5) Grandfathered insurers of the enterprises.--Any private 
        mortgage insurer who was approved to insure mortgage loans for 
        an enterprise on the date that is 1 day before the date the 
        Corporation publishes the provisional standards for the 
        approval of private mortgage insurers required under section 
        607(a)(2), and was in good standing as of such date--
                    (A) shall be deemed conditionally approved for a 
                period of 1 year from the date on which the Corporation 
                publishes the provisional standards for the approval of 
                private mortgage insurers required under section 
                607(a)(2);
                    (B) shall, not later than the date which is 6 
                months after date on which the Corporation publishes 
                the standards required under subsection (a), apply for 
                approved status via the application process described 
                in this subsection to be eligible for approved status; 
                and
                    (C) shall, provided the private mortgage insurer 
                has complied with subparagraph (B), receive a 
                determination from the Corporation as to the approval 
                or denial of its application to become an approved 
                private mortgage insurer prior to the expiration of the 
                1-year period described under subparagraph (A).
    (c) Requirement to Maintain Approval Status.--
            (1) Authority to issue order.--If the Corporation 
        determines that an approved private mortgage insurer no longer 
        meets the standards for such approval or violates a requirement 
        under this section, including any standard, regulation, or 
        order promulgated in accordance with this Act, the Corporation 
        may--
                    (A) provide prompt notice to the appropriate State 
                insurance regulator that the Corporation determines 
                that an approved private mortgage insurer no longer 
                meets the standard for such approval;
                    (B) suspend or revoke the approved status of the 
                approved private mortgage insurer; or
                    (C) take any other action with respect to such 
                approved private mortgage insurer as may be authorized 
                under this Act.
            (2) Rule of construction.--The suspension or revocation of 
        the approved status of an approved private mortgage insurer 
        under this section shall have no effect on the status as a 
        covered security of any covered security collateralized by 
        eligible mortgage loans with which the approved private 
        mortgage insurer contracted prior to the suspension or 
        revocation.
            (3) Publication.--The Corporation shall--
                    (A) promptly publish a notice in the Federal 
                Register upon suspension or revocation of the approval 
                of any approved private mortgage insurer; and
                    (B) maintain an updated list of such approved 
                private mortgage insurers on the website of the 
                Corporation.
            (4) Definition.--In this subsection, the term ``violate'' 
        includes any action, taken alone or with others, for or toward 
        causing, bringing about, participating in, counseling, or 
        aiding or abetting, a violation of the requirements under this 
        Act.
    (d) State Regulation.--The appropriate State insurance regulator of 
an approved private mortgage insurer has primary authority to examine 
and supervise the approved private mortgage insurer.
    (e) Reports and Examinations.--
            (1) In general.--For purposes of determining whether an 
        approved private mortgage insurer is fulfilling the 
        requirements under this Act, the Corporation may, in 
        coordination with the appropriate State insurance regulator of 
        the approved private mortgage insurer, including providing the 
        appropriate State insurance regulator the opportunity to join 
        the Corporation in an on-site examination, examine or review 
        any approved private mortgage insurer if the Corporation has 
        substantial reason to believe--
                    (A) that an approved private mortgage insurer has 
                engaged in a material violation or pattern of 
                violations of this Act or the rules promulgated 
                pursuant to this Act; or
                    (B) that the activities of an approved private 
                mortgage insurer may threaten the financial stability 
                of the housing finance system or the Mortgage Insurance 
                Fund.
            (2) 3-year compliance examination.--In addition to the 
        authority under paragraph (1), the Corporation shall conduct an 
        examination of an approved private mortgage insurer once, but 
        not more than once, every 3 years, provided the approved 
        private mortgage insurer has not been examined on-site by an 
        appropriate State insurance regulator.
            (3) Coordination.--In conducting an exam or review 
        authorized pursuant to paragraph (1) or paragraph (2), the 
        Corporation shall--
                    (A) provide reasonable notice to, and coordinate 
                with, the appropriate State insurance regulator for an 
                approved private mortgage insurer before commencing an 
                examination of the approved private mortgage insurer 
                under this section;
                    (B) to the fullest extent possible, avoid 
                duplication of examination activities, reporting 
                requirements, and requests for information, including 
                by relying on existing examinations, inspections, and 
                reports of the appropriate State insurance regulator; 
                and
                    (C) ensure that the approved private mortgage 
                insurer is not subject to conflicting supervisory 
                demands by the Corporation and State insurance 
                regulators, as appropriate.
            (4) Notice of determination.--The State insurance regulator 
        of an approved private mortgage insurer shall notify the 
        Corporation if there has been a final determination that the 
        approved private mortgage insurer is in a hazardous financial 
        condition provided that the Corporation agrees to maintain the 
        confidentiality or privileged status of the document, material, 
        or other information received from the State insurance 
        regulator of the approved private mortgage insurer.
    (f) Enforcement.--
            (1) In general.--The Corporation shall have the authority 
        to enforce the provisions of this section with respect to a 
        private mortgage insurer, in the same manner and to the same 
        extent as the Federal Deposit Insurance Corporation has with 
        respect to an insured depository institution under the 
        provisions of subsections (b) through (n) of section 8 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1818), provided the 
        Corporation demonstrates that such enforcement action is 
        necessary to avoid significant risk to the Mortgage Insurance 
        Fund.
            (2) Notification.--Prior to taking any enforcement action 
        against an approved private mortgage insurer, the Corporation 
        shall promptly notify, consult, and coordinate with the 
        appropriate State insurance regulator.
    (g) Resolution Authority.--
            (1) In general.--For any approved private mortgage insurer 
        that the Corporation has substantial reason to believe is 
        insolvent, as defined by applicable State law, and would 
        otherwise be subject to receivership proceedings under such 
        applicable State law, the Corporation shall recommend, in 
        writing, that the State insurance regulator for such approved 
        private mortgage insurer take such actions as are necessary and 
        authorized under applicable State law to resolve such approved 
        private mortgage insurer.
            (2) Backup authority.--Notwithstanding the requirement 
        under paragraph (1), if, after the end of the 60-day period 
        beginning on the date on which the Corporation provides its 
        written recommendation pursuant to paragraph (1), the 
        appropriate State insurance regulator has not filed the 
        appropriate judicial action in the appropriate State court to 
        place such approved private mortgage insurer into receivership 
        under the laws and requirements of the State, the Corporation 
        shall have the authority to stand in the place of the 
        appropriate regulatory agency and file the appropriate judicial 
        action in the appropriate State court to place such approved 
        private mortgage insurer into receivership under the laws and 
        requirements of the State.
    (h) Hearing.--Upon notice of denial of an application for approval 
under subsection (b) or upon a notice of suspension or revocation of 
the approved status of an approved private mortgage insurer under 
subsection (c), the applicant or approved private mortgage insurer 
shall be afforded a hearing under subsection (h) of section 8 of the 
Federal Deposit Insurance Act (12 U.S.C. 1818(h)), in the same manner 
and to the same extent as if the Corporation were the appropriate 
Federal banking agency, provided that the approved private mortgage 
insurer submits a request to the Corporation for a hearing not later 
than 10 days after the date on which the notice is published under 
subsection (b)(3) or (c)(3).
    (i) Rule of Construction Regarding Preservation of Corporation 
Authority.--Nothing in this section limits, or shall be construed to 
limit, the authority of the Corporation to provide exemptions to, or 
adjustments for, the provisions of this section based on the asset size 
of approved private mortgage insurers, or other criteria, as the 
Corporation deems appropriate, in order to reduce regulatory burdens 
while appropriately balancing the protection of the Mortgage Insurance 
Fund.

SEC. 314. APPROVAL OF SERVICERS.

    (a) Standards for Approval of Servicers.--
            (1) In general.--The Corporation shall, by regulation, 
        establish standards for the approval by the Corporation of 
        servicers to administer eligible single-family mortgage loans, 
        including standards with respect to--
                    (A) the collection and forwarding of principal and 
                interest payments;
                    (B) the maintenance of escrow accounts;
                    (C) the collection and payment of taxes and bona 
                fide insurance premiums;
                    (D) the maintenance of records on eligible single-
                family mortgage loans;
                    (E) the establishment of loss mitigation options 
                that seek to enhance value and prevent, to greatest 
                extent possible, the need to trigger a claim on 
                insurance offered by the Corporation pursuant to this 
                title, including by--
                            (i) establishing, by rule, a consistent 
                        process through which borrowers, who have 
                        submitted an initial loan modification request, 
                        will be evaluated by servicers and the 
                        securitization trust for an affordable loan 
                        modification; and
                            (ii) providing clear guidance regarding the 
                        treatment of second lien holders, taking into 
                        consideration the priority and subordination of 
                        liens under Federal and State laws;
                    (F) the advancement of principal and interest 
                payments to investors in the case of a delinquency by a 
                borrower until such time as the borrower has made all 
                payments in arrears, the borrower has entered into a 
                repayment plan or modification, an approved entity or 
                regulated entity has purchased the loan, or the 
                property securing the eligible single-family mortgage 
                loan has been liquidated, including specification that 
                the servicer shall recover advances upon permanent 
                modification of a borrower's mortgage loan;
                    (G) the establishment of procedures under which the 
                servicer may initiate or continue a foreclosure, in 
                accordance with applicable Federal and State laws and 
                regulations that--
                            (i) take into account--
                                    (I) the servicer's evaluation of, 
                                and agreements with, borrowers for loss 
                                mitigation options pursuant to 
                                subparagraph (E);
                                    (II) potential losses caused by 
                                delays in collateral recovery; and
                                    (III) the need to minimize risks to 
                                the Mortgage Insurance Fund; and
                            (ii) provide the borrower, upon request, 
                        documentation establishing the right of the 
                        mortgagee to foreclose;
                    (H) the provision of eligible single-family 
                mortgage loan information to borrowers, upon request, 
                including a copy of the pooling and servicing agreement 
                and securitization trust requirements that address the 
                ability of the servicer to offer loss mitigation 
                options; and
                    (I) implementing the terms of any loss mitigation 
                and foreclosure prevention as required by any uniform 
                securitization agreement developed under section 326.
            (2) Additional required standards.--The standards required 
        under paragraph (1) shall also include--
                    (A) the financial history and condition of the 
                servicer;
                    (B) the capability of the management of the 
                servicer;
                    (C) the general character and fitness of the 
                officers and directors of the servicer, including the 
                compliance history of the servicer's officers and 
                directors with Federal and State laws and the rules and 
                regulations promulgated by self-regulatory 
                organizations (as defined in section 3(a)(26) of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), 
                as applicable;
                    (D) the risk presented by such servicer to the 
                Mortgage Insurance Fund; and
                    (E) minimum operational and management standards 
                for the servicer, including with respect to--
                            (i) internal controls;
                            (ii) recordkeeping;
                            (iii) internal audit systems;
                            (iv) the maintenance of adequate liquidity 
                        and reserves; and
                            (v) reporting standards to the Corporation 
                        and investors, including audited financial 
                        statements.
            (3) Coordination, consistency, and comparability.--To 
        promote consistency and minimize regulatory conflict, the 
        Comptroller of the Currency, the Board of Governors of the 
        Federal Reserve System, the Federal Deposit Insurance 
        Corporation, the Bureau of Consumer Financial Protection, the 
        National Credit Union Administration, and the Corporation 
        shall--
                    (A) consult and coordinate with each other in 
                developing and issuing regulations with respect to the 
                rules and standards for the servicing of eligible 
                single-family mortgage loans; and
                    (B) review existing regulations with respect to 
                mortgage loan servicing rules and standards.
            (4) Consultation and coordination with state regulators.--
        To promote consistency and minimize regulatory conflict, the 
        Corporation shall consult and coordinate with appropriate State 
        regulators in developing and issuing regulations with respect 
        to the rules and standards for the servicing of eligible 
        single-family mortgage loans.
    (b) Application and Approval.--
            (1) Application process.--The Corporation shall establish 
        an application process--
                    (A) in such form and manner and requiring such 
                information as the Corporation may require, for the 
                approval of a servicer under this section; and
                    (B) that does not discriminate against or otherwise 
                disadvantage small servicers.
            (2) Approval.--
                    (A) In general.--The Corporation may approve any 
                application made pursuant to paragraph (1) provided the 
                servicer meets the standards adopted under subsection 
                (a).
                    (B) Prompt notice.--The Corporation shall notify 
                any applicant seeking to become an approved servicer 
                under this section of the decision of the Corporation 
                with respect to such approval as promptly as 
                practicable.
            (3) Denial.--The Corporation shall have the authority to 
        deny any application made pursuant to paragraph (1) if an 
        officer or director of the servicer has, at any time prior to 
        the date of the approval of such application, been--
                    (A) subject to a statutory disqualification 
                pursuant to section 3(a)(39) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(39)); or
                    (B) suspended, removed, or prohibited from 
                participation pursuant to section 8(g) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited 
                from certain action pursuant to paragraphs (6) or (7) 
                of section 8(e) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(e)), subject to an action resulting in 
                a written agreement or other written statement under 
                section 8(u)(1) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(u)(1)), for which a violation may be 
                enforced by an appropriate Federal banking agency, or 
                subject to any final order issued with respect to any 
                administrative enforcement proceeding initiated by such 
                agency under section 8 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818).
            (4) Grandfathered servicers of the enterprises.--Any 
        servicer who was approved to service mortgage loans for an 
        enterprise on the date that is 1 day before the date of 
        enactment of this Act, and was in good standing as of such 
        date, shall be deemed to be an approved servicer for purposes 
        of initial servicer approval by the Corporation and thereafter 
        subject to the requirements of this section as an approved 
        servicer.
            (5) Small servicer exemption.--
                    (A) In general.--The Corporation shall, by 
                regulation, provide exemptions to, or adjustments for, 
                the provisions of this section for approved servicers 
                that service 7,500 or fewer eligible single-family 
                mortgage loans, in order to reduce regulatory burdens 
                while appropriately balancing protection of the 
                Mortgage Insurance Fund.
                    (B) Limitation of exemption eligibility.--An 
                approved servicer and its subsidiaries and affiliates 
                shall be considered a single entity for purposes of the 
                exemption under subparagraph (A).
            (6) RESPA amendment.--Section 6 of the Real Estate 
        Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended 
        by adding at the end the following:
    ``(n) Small Servicer Exemption.--
            ``(1) In general.--The Bureau shall, by regulation, provide 
        exemptions to, or adjustments for, the provisions of this 
        section for servicers that service 7,500 or fewer mortgage 
        loans, in order to reduce regulatory burdens while 
        appropriately balancing consumer protections.
            ``(2) Limitation of exemption eligibility.--An approved 
        servicer and its subsidiaries and affiliates shall be 
        considered a single entity for purposes of the exemption under 
        paragraph (1).''.
            (7) Publication.--The Corporation shall--
                    (A) publish a notice in the Federal Register upon 
                approving any servicer under this section; and
                    (B) maintain an updated list of approved servicers 
                on the website of the Corporation.
    (c) Review, Suspension, and Revocation of Approved Status.--
            (1) Review.--
                    (A) In general.--The Corporation may examine or 
                review any approved servicer if the Corporation has 
                substantial reason to believe that a servicer has 
                engaged in a material violation or pattern of 
                violations of this Act or the rules promulgated 
                pursuant to this Act, including--
                            (i) any failure by an approved servicer to 
                        comply with terms set forth in any uniform 
                        securitization agreement developed under 
                        section 326; or
                            (ii) through the identification of any 
                        information indicating abnormal eligible 
                        single-family mortgage loan performance within 
                        the loan portfolio of the approved servicer.
                    (B) 2-year compliance examination.--In addition to 
                the authority under subparagraph (A), the Corporation 
                shall conduct an examination or review of an approved 
                servicer once, but not more than once, every 2 years, 
                provided however that such examination or review shall 
                be limited to compliance with this Act or regulations 
                promulgated under this Act.
                    (C) Coordination.--In conducting an exam or review 
                authorized pursuant to subparagraph (A) or subparagraph 
                (B), the Corporation shall--
                            (i) provide reasonable notice to, and 
                        coordinate with, the appropriate Federal 
                        banking agency, the Bureau of Consumer 
                        Financial Protection, or State regulatory 
                        agency, as appropriate, for an approved 
                        servicer that is regulated by such Federal 
                        banking agency, the Bureau of Consumer 
                        Financial Protection, or State regulatory 
                        agency before commencing an examination of the 
                        approved servicer under this section; and
                            (ii) to the fullest extent possible--
                                    (I) rely on the examinations, 
                                inspections, and reports of the 
                                appropriate Federal banking agency, the 
                                Bureau of Consumer Financial 
                                Protection, or State regulatory agency, 
                                as appropriate, for an approved 
                                servicer that is regulated by such 
                                Federal banking agency, the Bureau of 
                                Consumer Financial Protection, or State 
                                regulatory agency;
                                    (II) avoid duplication of 
                                examination activities, reporting 
                                requirements, and requests for 
                                information; and
                                    (III) ensure that approved 
                                servicers are not subject to 
                                conflicting supervisory demands by the 
                                Corporation, appropriate Federal 
                                banking agencies, the Bureau of 
                                Consumer Financial Protection, or State 
                                regulatory agencies, as appropriate.
                    (D) Self certification.--
                            (i) In general.--To facilitate any exam or 
                        review authorized pursuant to subparagraph (A) 
                        or subparagraph (B), each approved servicer 
                        shall, on an annual basis and in accordance 
                        with such requirements as the Corporation may 
                        establish, certify in writing to the 
                        Corporation that the approved servicer is in 
                        compliance with the standards identified under 
                        paragraphs (1) and (2) of subsection (a), all 
                        other requirements of this Act, and any rules 
                        promulgated pursuant to this Act.
                            (ii) Penalty for false or misleading 
                        certifications.--
                                    (I) Enforcement.--The Corporation 
                                shall have the authority to impose 
                                enforcement penalties with respect to 
                                an approved servicer who submits a 
                                certification under clause (i) that 
                                contains false or misleading 
                                information, in the same manner and to 
                                the same extent as the Federal Deposit 
                                Insurance Corporation has with respect 
                                to insured depository institutions 
                                under the provisions of subsections (b) 
                                through (n) of section 8 of the Federal 
                                Deposit Insurance Act (12 U.S.C. 1818), 
                                except that the penalties under 
                                subsection (j) of such section 8 shall 
                                not apply.
                                    (II) Notification.--If the 
                                Corporation takes any enforcement 
                                action against an approved servicer, 
                                the Corporation shall notify the 
                                approved servicer's appropriate Federal 
                                banking agency, the Bureau of Consumer 
                                Financial Protection, or State 
                                regulator, if applicable.
            (2) Suspension or revocation.--
                    (A) Corporation authority.--If the Corporation 
                determines, in any exam or review authorized pursuant 
                to paragraph (1), that an approved servicer no longer 
                meets the standards for approval, the Corporation may 
                suspend or revoke the approved status of such servicer.
                    (B) Rule of construction.--The suspension or 
                revocation of an approved servicer's approved status 
                under this paragraph shall have no effect on the status 
                of any covered security.
            (3) Publication.--The Corporation shall--
                    (A) publish in the Federal Register a list of any 
                approved servicers who have their approved status 
                suspended or revoked; and
                    (B) maintain an updated list of such servicers on 
                the website of the Corporation.
    (d) Appeals.--
            (1) In general.--
                    (A) Appeals of denials of application.--A servicer 
                who submits an application under subsection (b)(1) to 
                become an approved servicer may appeal a decision of 
                the Corporation denying such application.
                    (B) Appeals of denials of benefits or suspensions 
                of participation.--An approved servicer may appeal a 
                decision of the Corporation suspending or revoking the 
                approved status of such servicer.
            (2) Filing of appeal.--Any servicer who files an appeal 
        under paragraph (1) shall file the appeal with the Corporation 
        not later than 90 days after the date on which the person 
        receives notice of the decision of the Corporation being 
        appealed.
            (3) Final determination.--The Corporation shall make a 
        final determination with respect to an appeal under paragraph 
        (1) not later than 180 days after the date on which the appeal 
        is filed under paragraph (2).
    (e) Transfer of Mortgage Servicing Duties.--
            (1) In general.--For any eligible single-family mortgage 
        loan or pool of eligible single-family mortgage loans 
        collateralizing a single-family covered security insured by the 
        Corporation under this title and in accordance with rules 
        promulgated by the Corporation, the Corporation may require the 
        approved servicer of any such eligible single-family mortgage 
        loan or pool of eligible single-family mortgage loans to enter 
        into a subservicing arrangement with any independent specialty 
        servicer approved by the Corporation.
            (2) Rules.--The rules required under paragraph (1) shall--
                    (A) set forth with clarity the performance 
                conditions of an approved servicer that would warrant 
                or necessitate the use of the authority granted to the 
                Corporation under this subsection;
                    (B) require that the performance condition 
                warranting or necessitating the use of such authority 
                be of such type or character so as to materially and 
                adversely affect the ability of the Corporation to 
                recover any amounts owed to the Corporation;
                    (C) for purposes of subparagraph (B), define the 
                term ``materially and adversely affect'';
                    (D) require that any approved servicer whose 
                servicing duties are subject to this subsection be 
                provided a reasonable amount of time, provided that 
                such time does not present a risk to the Mortgage 
                Insurance Fund, to rebut, address, or correct any 
                determination of the Corporation regarding a 
                performance condition described under subparagraph (A);
                    (E) only permit the Corporation to carry out the 
                authority granted under this subsection upon expiration 
                of the time-period allowed under subparagraph (D);
                    (F) limit the scope of any such authority to 
                eligible single-family mortgage loans that share 
                similar underwriting, borrower, and performance 
                characteristics;
                    (G) ensure that the scope of any such authority is 
                not applied broadly and without further limitation; and
                    (H) notwithstanding subparagraphs (B) through (G), 
                provide that an approved servicer may be subject to 
                more extensive programmatic discipline or correction 
                measures, as determined by the Corporation, if, during 
                any 5-year period--
                            (i) the servicing duties that are the 
                        subject of the current use of the Corporation's 
                        authority under this subsection marks the third 
                        instance of the use of such authority with 
                        respect to the same approved servicer; and
                            (ii) with respect to the prior 2 separate 
                        and individual instances of the use of such 
                        authority, the same approved servicer failed to 
                        cure any identified performance conditions or 
                        implement corrective measures as determined by 
                        the Corporation pursuant to subparagraph (D).
            (3) Cessation of compensation.--If a transfer of servicing 
        duties occurs under paragraph (1), the approved servicer from 
        whom such servicing duties are extinguished shall cease to 
        receive compensation for any such servicing activities related 
        to those duties.
            (4) Servicer succession plans.--
                    (A) In general.--The Corporation may establish a 
                succession plan for each approved servicer, including 
                provisions for--
                            (i) a specialized servicer to replace the 
                        approved servicer if the performance of the 
                        eligible single-family mortgage loan pool 
                        serviced by such approved servicer deteriorates 
                        to specified levels; and
                            (ii) a plan to achieve continuity of 
                        contact for borrowers upon the replacement of 
                        the approved servicer.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed as authorizing the 
                Corporation to circumvent, evade, or otherwise 
                disregard the rules established in paragraphs (1) and 
                (2) when facilitating a transfer of servicing rights.
    (f) Petitions for Change of Servicer by Private Market Holders.--
            (1) Development of process.--The Corporation shall develop 
        a process by which private market holders of the first loss 
        position in a single-family covered security may petition the 
        Corporation for a change in approved servicers, including 
        specialized servicers for individual eligible single-family 
        mortgage loans, if the private market holders can demonstrate 
        that its investment was not appropriately protected by the 
        current approved servicer, including by failing to meet any 
        standard or requirement identified under paragraphs (1) and (2) 
        of subsection (a).
            (2) Cessation of compensation.--If a change in approved 
        servicers is approved under paragraph (1)--
                    (A) the change must occur within 30 days after the 
                petition is approved by the Corporation; and
                    (B) once the change required under subparagraph (A) 
                has occurred, the approved servicer from whom such 
                servicing rights are extinguished shall cease to 
                receive compensation for any such servicing activities 
                related to those rights.
    (g) Notice of Transfer of Servicing Rights by Current Servicer.--
            (1) Notice to fmic.--The Corporation shall develop a 
        process by which an approved servicer shall provide notice to 
        the Corporation of any transfer of any servicing rights of such 
        approved servicer to another approved servicer.
            (2) Authority of fmic to prevent, halt, or rescind a 
        transfer.--The process required to be developed under paragraph 
        (1) shall include the development of procedures to permit the 
        Corporation to prevent, halt, or rescind any transfer of 
        servicing rights from an approved servicer to a servicer that 
        is not approved to service eligible single-family mortgage 
        loans under this section or to any servicer whose approved 
        status has been suspended or revoked pursuant to subsection 
        (c)(2).
    (h) General Authority With Respect to the Transfer of Servicing 
Rights.--The Corporation may develop such other standards with respect 
to the transfer of servicing rights by approved servicers as the 
Corporation determines necessary and appropriate to facilitate an 
orderly transfer of servicing rights after the suspension or revocation 
of the approved status of a servicer pursuant to subsection (c)(2).
    (i) Study of Servicer Compensation Related to Non-performing 
Single-family Mortgage Loans.--
            (1) In general.--The Corporation shall carry out a study of 
        servicing compensation for non-performing single-family 
        mortgage loans, including alternatives to existing servicing 
        compensation structures.
            (2) Recommendations.--The study required under paragraph 
        (1) shall include recommendations for the optimal structure of 
        servicer compensation, in order to--
                    (A) improve service for borrowers;
                    (B) reduce financial risk to servicers; and
                    (C) provide flexibility for guarantors to better 
                manage non-performing single-family mortgage loans.
            (3) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Chairperson shall issue a report to 
        the Congress containing any findings and determinations made in 
        carrying out the study required under paragraph (1).
    (j) Rule of Construction.--Nothing in this section shall prohibit a 
mortgage originator from retaining rights to service the eligible 
single-family mortgage loans it originated, provided that the mortgage 
originator--
            (1) meets the standards to be an approved servicer under 
        subsection (a); or
            (2) qualifies for an exemption under subsection (b)(5).

SEC. 315. AUTHORITY TO ESTABLISH AND APPROVE SMALL LENDER MUTUALS.

    (a) Establishment of Small Lender Mutuals.--
            (1) In general.--The Corporation shall establish 1 entity 
        known as the ``Small Lender Mutual'', which shall be an 
        approved small lender mutual, owned by and operated for the 
        benefit of its members, for the purposes of subsection (b).
            (2) Approval of other small lender mutuals.--The 
        Corporation shall, by regulation, establish standards for the 
        approval by the Corporation of such other small lender mutuals 
        as may be necessary to facilitate the purposes described in 
        subsection (b).
    (b) Purposes.--The purpose of the Small Lender Mutual established 
under subsection (a)(1) and any small lender mutual approved under 
subsection (a)(2) (in this section collectively referred to as a 
``small lender mutual'') shall be as follows:
            (1) To address the needs of small mortgage lenders with 
        respect to covered securities.
            (2) To purchase eligible mortgage loans to securitize a 
        covered security from its member participants--
                    (A) for cash, on a single loan basis; or
                    (B) through the sale of a portion of a multi-lender 
                pool or multi-guarantor pool collateralized by eligible 
                mortgage loans securitized in a covered security.
            (3) To obtain all necessary and appropriate credit 
        enhancements for covered securities to support the lending 
        activities of small mortgage lenders.
            (4) To implement policies and procedures that ensure that 
        the access rules and fees of any small lender mutual are not 
        prohibitive and do not discriminate against originators of 
        eligible mortgage loans or any entity that aggregates eligible 
        mortgage loans on the basis of size, composition, business 
        line, or loan volume.
            (5) To appropriately manage the risk of the Small Lender 
        Mutual to ensure the continued safety and soundness of such 
        mutual.
    (c) Provisions to Ensure the Effective Operations of Small Lender 
Mutuals.--
            (1) Requirement to assess needs of small lender mutual.--
        Not later than 1 year after the date of enactment of this Act, 
        the Federal Housing Finance Agency shall conduct an assessment 
        of the intellectual property, technology, infrastructure, and 
        processes of the enterprises relating to the operation and 
        maintenance of the systems needed to ensure small mortgage 
        lender access to the secondary mortgage market to determine the 
        needs of the Small Lender Mutual established under subsection 
        (a)(1). The assessment required under this paragraph shall be 
        submitted to the Transition Committee established under section 
        404, or the Board if confirmed pursuant to section 404(d), and 
        included in the transition plan required under section 602.
            (2) Authority to manage disposition of enterprise 
        infrastructure.--After the agency transfer date and before the 
        system certification date, the Federal Housing Finance Agency, 
        consistent with title VI--
                    (A) shall dispose of the intellectual property, 
                technology, infrastructure, and processes of the 
                enterprises relating to the operation and maintenance 
                of the systems needed for small mortgage lenders to 
                access the secondary mortgage market; and
                    (B) may manage such disposition through the sale, 
                transfer, licensing, or leasing of such intellectual 
                property, technology, infrastructure, and processes of 
                an enterprise to the Small Lender Mutual established 
                under subsection (a)(1) to ensure that the Small Lender 
                Mutual can access the secondary mortgage market and 
                fulfill the purposes of the section.
            (3) Transfer of necessary technology.--After the agency 
        transfer date and before the system certification date, the 
        Federal Housing Finance Agency, consistent with section 604(h), 
        may transfer to a subsidiary or subsidiaries of the enterprises 
        any function, activity, infrastructure, property, including 
        intellectual property, technology, or any other object or 
        service of an enterprise that the Corporation determines is 
        necessary and available for the Small Lender Mutual established 
        under subsection (a)(1) to carry out its activities and 
        operations.
            (4) Initial capitalization.--
                    (A) In general.--The initial capital necessary for 
                the Small Lender Mutual to be established under 
                subsection (a)(1) to purchase a subsidiary established 
                under paragraph (3) or to purchase, lease, or license 
                the systems under paragraph (2)(B), and to perform all 
                other activities and functions of the Small Lender 
                Mutual, including the ability of the Small Lender 
                Mutual to operate a cash window for the purchase of 
                individual eligible mortgage loans, shall be provided 
                by the enterprises.
                    (B) Determination of amount.--The amount of any 
                initial capital required to be provided by the 
                enterprises under subparagraph (A) shall be determined 
                by the Corporation based on the needs of the Small 
                Lender Mutual to carry out its activities and 
                functions, as well as by the current volume of business 
                from the enterprise-approved sellers that are eligible 
                to participate, pursuant to subsection (e), as a member 
                of the Small Lender Mutual.
                    (C) Repayment.--
                            (i) In general.--The amount of any initial 
                        capital required to be provided by the 
                        enterprises under subparagraph (A) shall be 
                        repaid by the Small Lender Mutual established 
                        under subsection (a)(1) on a schedule jointly 
                        agreed to by the Small Lender Mutual and the 
                        Corporation.
                            (ii) Repayment period.--
                                    (I) In general.--The repayment of 
                                any amounts required under clause (i) 
                                shall be completed within 7 years from 
                                the system certification date.
                                    (II) Authority to extend repayment 
                                period.--The Corporation, after 
                                consultation with the mutual board of 
                                the Small Lender Mutual established 
                                under subsection (a)(1), may extend the 
                                repayment period set forth under 
                                subclause (I) for an additional 3 
                                years, if, in the sole discretion of 
                                the Corporation, the Corporation deems 
                                such extension necessary.
    (d) Ensuring Fair Competition.--The Federal Housing Finance Agency 
may, consistent with the public interest, for the maintenance of fair 
competition among all small lender mutuals, and for the purposes set 
forth in this section, provide, through a licensing agreement or other 
agreement, access to any technology or platform transferred pursuant to 
subsection (c)(3).
    (e) Eligibility.--
            (1) In general.--Eligibility to participate as a member in 
        any small lender mutual shall be limited to any--
                    (A) insured depository institution having less than 
                $500,000,000,000 in total consolidated assets at the 
                time of the initial participation of the institution in 
                the small lender mutual;
                    (B) non-depository mortgage originator that--
                            (i) has a minimum net worth of $2,500,000;
                            (ii) has annual eligible mortgage loan 
                        production of less than $100,000,000,000; and
                            (iii)(I) prior to the system certification 
                        date, was approved to sell mortgage loans to an 
                        enterprise on the date that is 1 day prior to 
                        the establishment or approval of the small 
                        lender mutual, provided that such originator 
                        was in good standing as of such date; or
                            (II) meets the standards established by the 
                        small lender mutual pursuant to subsection (l);
                    (C) Community Development Financial Institution 
                that meets the standards established by the small 
                lender mutual pursuant to subsection (l);
                    (D) mission-based nonprofit lender that meets the 
                standards established by the small lender mutual 
                pursuant to subsection (l);
                    (E) housing finance agency that meets the standards 
                established by the small lender mutual pursuant to 
                subsection (l); and
                    (F) Federal Home Loan Bank.
            (2) Access of originators.--An entity eligible to 
        participate as a member of a small lender mutual may not be 
        required to become an approved entity under this Act to access 
        any function or operation of a small lender mutual.
            (3) Rule of construction.--Each entity eligible to 
        participate as a member of a small lender mutual under this 
        section shall meet all applicable standards and requirements 
        under this Act.
    (f) Report.--Not later than 2 years after the date on which the 
Small Lender Mutual is established under subsection (a)(1), the 
Corporation shall--
            (1) conduct and complete a study evaluating the criteria 
        for eligibility as a member of the Small Lender Mutual under 
        subparagraphs (A) and (B) of subsection (e)(1); and
            (2) submit a report to Congress, which shall include an 
        evaluation of--
                    (A) whether the participation levels of members of 
                the Small Lender Mutual under subparagraphs (A) and (B) 
                of subsection (e)(1) are sufficient to create the 
                economies of scale and liquidity necessary for 
                competitive pricing in the secondary mortgage market;
                    (B) the ability of the Small Lender Mutual to 
                ensure access for small mortgage lenders to the 
                secondary mortgage market;
                    (C) the impact of the asset and net worth 
                eligibility criteria established in subparagraphs (A) 
                and (B) of subsection (e)(1) on the size, 
                competitiveness, and membership of the Small Lender 
                Mutual;
                    (D) whether the eligibility thresholds established 
                in subparagraphs (A) and (B) of subsection (e)(1) are 
                facilitating or impeding the creation of a robust 
                market for approved guarantors;
                    (E) whether the establishment of other eligibility 
                criteria in subparagraphs (A) and (B) of subsection 
                (e)(1) would better serve members of the Small Lender 
                Mutual, including such other criteria as--
                            (i) a different asset threshold;
                            (ii) an annual mortgage loan origination 
                        threshold; or
                            (iii) a mortgage loan production cap;
                    (F) whether the Small Lender Mutual is fully 
                meeting the cash window needs of small mortgage 
                lenders; and
                    (G) whether the Small Lender Mutual is adequately 
                capitalized to meet the needs of members of the Small 
                Lender Mutual and protect the Mortgage Insurance Fund.
    (g) Eligibility Thresholds.--Beginning on the date on which the 
Corporation submits the report required under subsection (f), the 
Corporation may adjust the eligibility thresholds established in 
subparagraphs (A) and (B) of subsection (e)(1) if the Corporation, in 
consultation with the mutual board of a small lender mutual, determines 
that--
            (1) the thresholds do not facilitate the purposes of the 
        small lender mutual as described in subsection (b);
            (2) the thresholds restrict small multifamily lenders' 
        participation in the small lender mutual;
            (3) the thresholds do not foster competition in the 
        secondary mortgage market; or
            (4) the thresholds pose a risk to the Mortgage Insurance 
        Fund.
    (h) Reassessment.--Beginning on the date on which the Corporation 
submits the report required under subsection (f), the Corporation 
shall, on an annual basis, reassess the Small Lender Mutual's 
eligibility thresholds.
    (i) Platform Membership.--Each small lender mutual shall be a 
member of the Securitization Platform.
    (j) Funding Authority.--
            (1) Authority to establish membership fees.--The mutual 
        board of each small lender mutual shall charge and collect fees 
        from its member participants--
                    (A) for membership in the small lender mutual; and
                    (B) to cover the costs of--
                            (i) in the case of the Small Lender Mutual 
                        established under subsection (a)(1)--
                                    (I) the purchase of any function, 
                                activity, infrastructure, property, 
                                including intellectual property, 
                                technology, or any other object or 
                                service from an enterprise pursuant to 
                                subsection (c);
                                    (II) any initial capital for the 
                                establishment of a cash window; and
                                    (III) the repayment of amounts 
                                required under subsection (c)(4)(C), 
                                provided that any fee charged to cover 
                                such repayment amounts is applicable 
                                only to those member participants 
                                identified and approved after the 
                                establishment date of the Small Lender 
                                Mutual and before the repayment date 
                                established under subsection 
                                (c)(4)(C)(ii); and
                            (ii) the continued operation of the small 
                        lender mutual, including to build capital 
                        reserves and to manage risks.
            (2) Equitable compensation of certain member participants 
        of small lender mutual.--The mutual board of the Small Lender 
        Mutual established under subsection (a)(1) may, in addition to 
        any fee required under paragraph (1), charge and collect a fee 
        from member participants identified and approved after the 
        repayment date established under subsection (c)(4)(C)(ii) to 
        compensate member participants identified and approved prior to 
        such repayment date for the share of the fees paid by such 
        member participants to cover the cost of repayment amounts 
        pursuant to paragraph (1)(B)(i)(III).
            (3) Authority to increase or decrease fees.--The mutual 
        board of each small lender mutual may, in its discretion and 
        upon consultation with the Corporation, increase or decrease 
        any fee authorized under paragraph (1).
            (4) Provision of fee schedule to fmic.--The mutual board of 
        each small lender mutual shall, on an annual basis and upon any 
        increase or decrease of any fee authorized under paragraph (1), 
        provide the Corporation with a schedule of the fees charged by 
        the small lender mutual to its member participants.
            (5) Limitation.--The fees authorized under paragraph (1)--
                    (A) shall be equitably assessed; and
                    (B) shall not discriminate against originators of 
                eligible mortgage loans or any entity that aggregates 
                eligible mortgage loans on the basis of size, 
                composition, business line, or loan volume.
            (6) Authority to reduce fees.--
                    (A) In general.--If a small lender mutual, in 
                consultation with the Corporation, determines that any 
                fee or fees authorized under this subsection are 
                prohibitive or discriminatory, the small lender mutual 
                may, in the interest of building the membership of the 
                small lender mutual, lower any such fee or fees.
                    (B) Reasonableness and considerations.--Each small 
                lender mutual shall, in consultation with the 
                Corporation, set reasonable criteria for any 
                determination authorized under subparagraph (A). The 
                criteria required to be set forth under this 
                subparagraph shall consider the potential impact on the 
                financial safety and soundness of the small lender 
                mutual.
    (k) Governance.--
            (1) Recognition of important role of smaller 
        institutions.--The mutual board of each small lender mutual, in 
        consultation with the Corporation, shall take all reasonable 
        steps necessary to establish governance provisions that reflect 
        the important role in the mortgage market played by the member 
        participants of small lender mutuals.
            (2) Mutual board.--
                    (A) In general.--The management of each small 
                lender mutual shall be vested in a board of 15 
                directors (in this section referred to as the ``mutual 
                board''), which shall include representatives of 
                approved member participants of the small lender 
                mutual.
                    (B) Appointment of mutual board of small lender 
                mutual.--
                            (i) Initial appointment.--The Corporation 
                        shall make initial appointments of the members 
                        of the mutual board for the Small Lender Mutual 
                        established under subsection (a)(1). Each such 
                        initial appointment shall be for a term of 1 
                        year.
                            (ii) Appointments.--Upon expiration of the 
                        1-year period set forth under clause (i), the 
                        member participants of the Small Lender Mutual 
                        established under subsection (a)(1) shall elect 
                        the members of the mutual board of the Small 
                        Lender Mutual from within the membership of the 
                        Small Lender Mutual.
                    (C) Independent directors.--The mutual board of 
                each small lender mutual shall have at least 1 
                independent director to serve the public interest. The 
                independent director required under this subparagraph 
                shall have a history of representing consumer or 
                community interests on banking services, credit needs, 
                housing, or financial consumer protections.
                    (D) Representation on board.--No more than \1/3\ of 
                the directors of the mutual board of the Small Lender 
                Mutual may be held by a single category of member 
                participants, which shall be defined for purposes of 
                this subsection as community banks, credit unions, non-
                depository mortgage originators, Federal Home Loan 
                Banks, housing finance agencies, Community Development 
                Financial Institutions, and mission-based nonprofit 
                lenders.
            (3) Representation to the platform.--The mutual board of 
        the Small Lender Mutual shall select, on a rotating basis from 
        representative of its directors, an individual to serve as a 
        Platform Director under section 322.
            (4) Representation of multiple small lender mutuals.--If 
        more than 1 small lender mutual is approved under this section, 
        each small lender mutual shall rotate the representation 
        position under section 322.
            (5) No preferences for size.--Member participants of each 
        small lender mutual shall have equal voting rights on any 
        matters before the small lender mutual of which it is a member, 
        regardless of the size of the individual member participant.
            (6) Rule of construction.--For purposes of this subsection, 
        a member participant and its subsidiaries, joint offices, and 
        affiliates shall be treated as a single entity and shall be 
        entitled to cast a single vote on any matters before the small 
        lender mutual of which it is a member.
    (l) Approval of Member Participants.--
            (1) In general.--Each mutual board established under 
        subsection (k) shall develop standards and procedures to 
        approve the application of member participants in the small 
        lender mutual.
            (2) Content of standards.--The standards required under 
        paragraph (1) shall include standards relating to the--
                    (A) prospective members' compliance history with 
                Federal and State law;
                    (B) safety and soundness of prospective member 
                participants; and
                    (C) mortgage underwriting practices of the 
                prospective member.
            (3) Coordination with other regulators.--
                    (A) Consultation.--In approving any prospective 
                member to become a member participant in a small lender 
                mutual, the mutual board of that small lender mutual 
                may consult and share information with--
                            (i) the appropriate Federal banking agency 
                        and State regulator of the prospective member; 
                        or
                            (ii) the Bureau of Consumer Financial 
                        Protection, if the Bureau of Consumer Financial 
                        Protection has supervisory authority over the 
                        prospective member.
                    (B) Privilege preserved.--Information shared 
                pursuant to subparagraph (A) shall not be construed as 
                waiving, destroying, or otherwise affecting any 
                privilege or confidential status that a prospective 
                member may claim with respect to such information under 
                Federal or State law as to any person or entity other 
                than the board of directors or its appropriate Federal 
                banking agency.
                    (C) Rule of construction.--No provision of this 
                subsection may be construed as implying or establishing 
                that--
                            (i) any prospective member waives any 
                        privilege applicable to information that is 
                        shared or transferred under any circumstance to 
                        which this subsection does not apply; or
                            (ii) any prospective would waive any 
                        privilege applicable to any information by 
                        submitting the information directly to its 
                        primary Federal or State regulator, but for 
                        this subsection.
            (4) Streamlining for existing lenders approved by the 
        enterprises.--Each mutual board established under subsection 
        (k) shall develop streamlined membership standards and 
        procedures for any lender who was approved to sell mortgage 
        loans to an enterprise on the date that is 1 day before the 
        date of enactment of this Act, and was in good standing as of 
        such date.
    (m) Cash Window.--
            (1) Requirement for small lender mutuals.--Each small 
        lender mutual shall have the ability to operate a cash window 
        for the purchase of individual eligible single-family mortgage 
        loans.
            (2) Standards to ensure safety and soundness.--To ensure 
        the safety and soundness of each small lender mutual, the 
        Corporation shall establish standards for the regulation, 
        supervision, and operation of each cash window required under 
        paragraph (1).
            (3) Licensing of cash window technology.--The Federal 
        Housing Finance Agency may, consistent with the public interest 
        and for the maintenance of fair competition among entities 
        providing cash window services, provide, through a licensing 
        agreement or other agreement, access to any technology or 
        platform relating to a cash window transferred under paragraph 
        (3) of subsection (c).
    (n) Recognition of Distinction Between Small Lender Mutual 
Companies and Other Aggregators.--Prior to promulgating any regulation 
or taking any other formal or informal action of general applicability, 
including the issuance of an advisory document or examination guidance, 
the Corporation shall consider the differences between small lender 
mutuals and other approved aggregators with respect to--
            (1) the cooperative ownership structure of small lender 
        mutuals;
            (2) the purposes of small lender mutuals as set forth in 
        subsection (b);
            (3) the capital structure of small lender mutuals; and
            (4) any other differences that the Corporation considers 
        appropriate.
    (o) Coordination of Servicer Approval.--Each mutual board 
established under subsection (k) may coordinate with the Corporation to 
facilitate the application process for its member participants to 
become approved servicers of the Corporation pursuant to section 314.
    (p) Multifamily Study.--Not later than 1 year after the agency 
transfer date, the Corporation shall conduct and complete a study to 
determine--
            (1) the access needs of small multifamily mortgage lenders 
        to the secondary multifamily mortgage market; and
            (2) whether the Small Lender Mutual established under 
        subsection (a)(1) can meet the access needs of small 
        multifamily mortgage lenders.
    (q) Prohibited Activities.--A small lender mutual may not guarantee 
any mortgage loans or mortgage-backed securities.

SEC. 316. SUPERVISORY ACTIONS RELATED TO CAPITAL AND SOLVENCY.

    (a) Capital Classifications.--
            (1) Establishment.--The Corporation shall establish, by 
        regulation, capital classifications regarding the levels of 
        capital maintained by each type of covered entity.
            (2) Classes.--In carrying out the requirement under 
        paragraph (1), the Corporation shall classify covered entities 
        according to the following capital classifications:
                    (A) Well capitalized.--A covered entity shall be 
                classified as well capitalized if the entity meets or 
                exceeds all of the capital and solvency standards 
                required under section 309(b).
                    (B) Adequately capitalized.--A covered entity shall 
                be classified as adequately capitalized if the entity 
                meets or exceeds some, but not all, of the capital and 
                solvency standards required under section 309(b).
                    (C) Undercapitalized.--A covered entity shall be 
                classified as undercapitalized if the entity fails to 
                meet any of the capital and solvency standards required 
                under section 309(b).
                    (D) Significantly undercapitalized.--A covered 
                entity shall be classified as significantly 
                undercapitalized if the entity is significantly below 
                any of the capital and solvency standards required 
                under section 309(b).
                    (E) Critically undercapitalized.--A covered entity 
                shall be classified as critically undercapitalized if 
                the entity is critically below any of the capital and 
                solvency standards required under section 309(b).
            (3) Discretionary classification.--
                    (A) Grounds for reclassification.--The Corporation 
                may reclassify the capital classification of a covered 
                entity if--
                            (i) at any time, the Corporation 
                        determines, in writing, that the covered entity 
                        is engaging in conduct that could result in a 
                        rapid depletion of capital held by the covered 
                        entity;
                            (ii) after notice and an opportunity for 
                        hearing, the Corporation determines that the 
                        covered entity is in an unsafe or unsound 
                        condition;
                            (iii) pursuant to the requirements of this 
                        title, the Corporation deems the covered entity 
                        to be engaging in an unsafe or unsound 
                        practice;
                            (iv) the covered entity does not submit a 
                        capital restoration plan within the applicable 
                        time period that is substantially in compliance 
                        with regulations for such plans adopted by the 
                        Corporation;
                            (v) the Corporation does not approve the 
                        capital restoration plan submitted by the 
                        covered entity; or
                            (vi) the Corporation determines that the 
                        covered entity has failed to comply with the 
                        capital restoration plan and fulfill the 
                        schedule for the plan approved by the 
                        Corporation in any material respect.
                    (B) Reclassification.--In addition to any other 
                action authorized under this title, including the 
                reclassification of a covered entity for any reason not 
                specified in this subsection, if the Corporation takes 
                any action described in subparagraph (A), the 
                Corporation may classify a covered entity as 
                appropriate.
            (4) Restriction on capital distributions.--
                    (A) In general.--A covered entity shall make no 
                capital distribution if, after making the distribution, 
                the covered entity would be classified as anything 
                other than well capitalized or adequately capitalized.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                the Corporation may permit a covered entity, to the 
                extent appropriate or applicable, to repurchase, 
                redeem, retire, or otherwise acquire shares or 
                ownership interests if the repurchase, redemption, 
                retirement, or other acquisition--
                            (i) is made in connection with the issuance 
                        of additional shares or obligations of the 
                        covered entity in at least an equivalent 
                        amount;
                            (ii) will reduce the financial obligations 
                        of the covered entity or otherwise improve the 
                        financial condition of the covered entity;
                            (iii) will enhance the ability of the 
                        covered entity to promptly meet the minimum 
                        capital level for the covered entity;
                            (iv) contributes to the long-term financial 
                        safety and soundness of the covered entity; or
                            (v) furthers the public interest.
    (b) Adequately Capitalized.--If a covered entity is classified as 
adequately capitalized:
            (1) Mandatory capital restoration plan.--The Corporation 
        shall require the covered entity to--
                    (A) submit to the Corporation a capital restoration 
                plan; and
                    (B) implement the plan after approval.
            (2) Discretionary safeguards.--The Corporation may take, 
        with respect to an adequately capitalized covered entity, any 
        of the actions authorized to be taken under subsection (c) with 
        respect to an undercapitalized covered entity, if the 
        Corporation determines that such actions are necessary to carry 
        out the purposes of this subtitle.
    (c) Undercapitalized.--If a covered entity is classified as 
undercapitalized:
            (1) Mandatory capital restoration plan.--The Corporation 
        shall require the covered entity to--
                    (A) submit to the Corporation a capital restoration 
                plan; and
                    (B) implement the plan after approval.
            (2) Restriction on asset growth.--An undercapitalized 
        covered entity shall not permit its average total assets during 
        any calendar quarter to exceed its average total assets during 
        the preceding calendar quarter, unless--
                    (A) the Corporation has accepted the capital 
                restoration plan of the covered entity;
                    (B) any increase in total assets is consistent with 
                the capital restoration plan; and
                    (C) the ratio of capital to total assets of the 
                covered entity increases during the calendar quarter at 
                a rate sufficient to enable the covered entity to 
                become adequately capitalized within a reasonable time.
            (3) Prior approval of acquisitions and new activities.--An 
        undercapitalized covered entity shall not, directly or 
        indirectly, acquire any interest in any entity or engage in a 
        new activity, unless--
                    (A) the Corporation has accepted the capital 
                restoration plan of the covered entity, the covered 
                entity is implementing the plan, and the Corporation 
                determines that the proposed action is consistent with 
                and will further the achievement of the plan; or
                    (B) the Corporation determines that the proposed 
                action will further the purpose of this section.
            (4) Required monitoring.--The Corporation shall--
                    (A) closely monitor the condition of any 
                undercapitalized covered entity;
                    (B) closely monitor compliance with the capital 
                restoration plan, restrictions, and requirements 
                imposed on an undercapitalized covered entity under 
                this section; and
                    (C) periodically review the capital restoration 
                plan, restrictions, and requirements applicable to an 
                undercapitalized covered entity to determine whether 
                the plan, restrictions, and requirements are achieving 
                the purpose of this section.
            (5) Discretionary safeguards.--The Corporation may take, 
        with respect to an undercapitalized covered entity, any of the 
        actions authorized to be taken under subsection (d) with 
        respect to a significantly undercapitalized covered entity, if 
        the Corporation determines that such actions are necessary to 
        carry out the purpose of this subtitle.
    (d) Significantly Undercapitalized.--If a covered entity is 
classified as significantly undercapitalized:
            (1) Mandatory capital restoration plan.--The Corporation 
        shall require the covered entity to--
                    (A) submit to the Corporation a capital restoration 
                plan; and
                    (B) implement the plan after approval.
            (2) Discretionary supervisory actions for significantly 
        undercapitalized covered entities.--In addition to any other 
        actions taken by the Corporation, the Corporation may, at any 
        time, take any of the following actions with respect to a 
        covered entity that is classified as significantly 
        undercapitalized:
                    (A) Limitation on obligations.--Limit any increase 
                in, or order the reduction of, any obligations of the 
                covered entity, including off-balance sheet 
                obligations.
                    (B) Limitation on growth.--Limit or prohibit the 
                growth of the assets of the covered entity, or require 
                reduction of the assets of the covered entity.
                    (C) Acquisition of new capital.--Require the 
                covered entity to raise new capital in a form and 
                amount determined by the Corporation.
                    (D) Restriction on activities.--Require the covered 
                entity to terminate, reduce, or modify any activity 
                that creates excessive risk to the covered entity, as 
                determined by the Corporation.
                    (E) Improvement of management.--Take 1 or more of 
                the following actions:
                            (i) New election of board.--Order or hold a 
                        new election for the board of directors of the 
                        covered entity.
                            (ii) Dismissal of directors or executive 
                        officers.--Require the covered entity to 
                        dismiss from office any director or executive 
                        officer who had held office for more than 180 
                        days immediately before the date on which the 
                        covered entity became undercapitalized.
                            (iii) Employ qualified executive 
                        officers.--Require the covered entity to employ 
                        qualified executive officers (who, if the 
                        Corporation so specifies, shall be subject to 
                        approval by the Corporation).
    (e) Critically Undercapitalized.--
            (1) Regulated entity.--The Corporation shall have the 
        authority to resolve a critically undercapitalized regulated 
        entity pursuant to section 1367 of the Safety and Soundness Act 
        (12 U.S.C. 4617), as amended by this Act.
            (2) Covered entity.--The Corporation shall have the 
        authority to resolve a covered entity that is classified as 
        failing or critically undercapitalized pursuant to the 
        resolution authority granted to the Corporation under section 
        311(h), section 312(h), section 313(g), and section 703(i), as 
        applicable.

SEC. 317. OWNERSHIP, ACQUISITIONS, AND OPERATIONS OF COVERED ENTITIES.

    (a) Ownership and Acquisitions of Covered Entities.--It shall be 
unlawful, except with the prior approval of the Corporation, for any 
person to--
            (1) directly or indirectly own, control, or have power to 
        vote 10 percent of any class of voting shares of any covered 
        entity (except to the extent that voting stock is required to 
        be purchased by Federal statute as a condition to participate 
        in the programs of the covered entity);
            (2) control in any manner the election of a majority of the 
        directors or trustees of any covered entity;
            (3) exercise a controlling influence over the management or 
        policies of any covered entity;
            (4) merge or consolidate with any covered entity; or
            (5) divest a covered entity, or any substantial line of 
        business of a covered entity, into any surviving entity.
    (b) Application and Approval Process.--
            (1) In general.--The Corporation shall establish, by 
        regulation, an application, in such form and manner and 
        requiring such information as the Corporation may require, for 
        the approval of acquisitions, mergers, consolidations, or 
        divestitures under subsection (a).
            (2) Application review.--The Corporation shall--
                    (A) establish internal timelines for its processing 
                of applications under this section, including timelines 
                for any action to approve or to deny an application 
                under this section; and
                    (B) notify any applicant seeking to undertake an 
                action described under subsection (a) of the decision 
                of the Corporation to approve or to deny their 
                application as promptly as practicable.
    (c) Standards for Approval of Application.--The Corporation shall 
establish, by regulation, standards for the approval by the Corporation 
of acquisitions, mergers, consolidations, or divestitures under 
subsection (a). The standards required under this subsection shall, at 
a minimum, be based on--
            (1) the application process established by the Corporation 
        under subsection (b)(1);
            (2) the financial history and condition of the applicant;
            (3) the capability of the management of the applicant;
            (4) the general character and fitness of the officers and 
        directors of the applicant, including the compliance history of 
        the applicant's officers and directors with Federal and State 
        laws and the rules and regulations promulgated by self-
        regulatory organizations (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as 
        applicable;
            (5) the risk presented by such acquisition, merger, 
        consolidation, or divestiture to the Mortgage Insurance Fund;
            (6) any other standard the Corporation determines necessary 
        to promote competition and mitigate market dislocations among 
        covered entities in the secondary mortgage market; and
            (7) any other standard the Corporation determines necessary 
        or appropriate.
    (d) Approval.--The Corporation--
            (1) may approve any application made pursuant to this 
        section if the applicant meets the standards established under 
        subsection (c);
            (2) may not approve--
                    (A) any application under this section which would 
                result in a monopoly; or
                    (B) any other proposed acquisition or merger or 
                consolidation under this section whose effect in any 
                area of the United States may be substantially to 
                lessen competition, or to tend to create a monopoly, or 
                which in any other manner would be in restraint of 
                trade, unless the Corporation finds that the 
                anticompetitive effects of the proposed transaction are 
                clearly outweighed in the public interest by the 
                probable effect of the transaction in meeting the needs 
                of consumers and the communities served; and
            (3) shall have the authority to deny any application made 
        pursuant to paragraph (1) if an officer or director of the 
        applicant has, at any time prior to the date of the approval of 
        such application, been--
                    (A) subject to a statutory disqualification 
                pursuant to section 3(a)(39) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(39)); or
                    (B) suspended, removed, or prohibited from 
                participation pursuant to section 8(g) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited 
                from certain action pursuant to paragraphs (6) or (7) 
                of section 8(e) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(e)), subject to an action resulting in 
                a written agreement or other written statement under 
                section 8(u)(1) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(u)(1)), for which a violation may be 
                enforced by an appropriate Federal banking agency, or 
                subject to any final order issued with respect to any 
                administrative enforcement proceeding initiated by such 
                agency under section 8 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818).
    (e) Restrictions on Engaging in Other Lines of Business.--
            (1) For approved guarantors and approved multifamily 
        guarantors.--An approved guarantor or approved multifamily 
        guarantor may not engage in any activity relating to the 
        business of insurance, other than any activity carried out by 
        an approved guarantor or approved multifamily guarantor and 
        approved by the Corporation pursuant to sections 311 or 703.
            (2) Other activities.--An approved guarantor or approved 
        multifamily guarantor may engage in any business activity 
        unrelated to the business of insurance, subject to--
                    (A) the prior approval of the Corporation; and
                    (B) any terms and conditions set forth by the 
                Corporation.
            (3) Rule of construction.--Nothing in paragraph (1) or (2) 
        shall be construed to prevent an approved guarantor from being 
        an affiliate of a private mortgage insurer if approved by the 
        Corporation.
    (f) Limits on Support or Guarantee Arrangement.--
            (1) In general.--An approved guarantor or approved 
        multifamily guarantor may not enter into any agreement, 
        covenant, or other arrangement (including any credit risk-
        sharing arrangement) with an affiliate or other person to 
        support, guarantee, or finance any operation or activity of 
        that affiliate.
            (2) Support.--Subject to any terms and conditions 
        established by the Corporation, by regulation or order, an 
        approved guarantor or approved multifamily guarantor may enter 
        into an agreement, covenant, or other arrangement with an 
        affiliate solely for the purpose of supporting, guaranteeing, 
        or financing an operation or activity of the approved guarantor 
        or approved multifamily guarantor.
            (3) Rule of construction.--Nothing in this section shall 
        supersede the requirements under sections 23A and 23B of the 
        Federal Reserve Act (12 U.S.C. 371c, 371c-1).
    (g) Anti-steering Requirement.--
            (1) In general.--The Corporation shall, by regulation, 
        prohibit discounts made by an approved guarantor for any 
        mortgage originator that is an investor, or an affiliate of an 
        investor, in the approved guarantor that are not otherwise 
        available to other similar mortgage originators.
            (2) Report.--The Office of the Inspector General of the 
        Federal Mortgage Insurance Corporation shall, on an annual 
        basis, submit a report to the Corporation and to Congress on 
        the practices and internal controls of approved guarantors with 
        respect to steering or preferential treatment for their 
        investors prohibited by this section.

    Subtitle C--Securitization Platform and Transparency in Market 
                               Operations

                    PART I--SECURITIZATION PLATFORM

SEC. 321. ESTABLISHMENT OF THE SECURITIZATION PLATFORM.

    (a) In General.--The Corporation shall establish an entity known as 
the ``Securitization Platform'' (in this part referred to as the 
``Platform'') that shall be a utility owned by and operated for the 
benefit of its members as--
            (1) a nonprofit cooperative; or
            (2) a cooperative entity other than as described under 
        paragraph (1) that--
                    (A) best achieves the purposes and obligations of 
                the Platform under section 325; and
                    (B) serves the public interest.
    (b) Regulated by the Corporation.--The Platform shall be regulated 
and supervised by the Corporation.
    (c) Incorporation.--
            (1) Non federal status.--The Platform shall not be an 
        agency or instrumentality of the Federal Government.
            (2) Discretion as to legal form.--The Corporation shall 
        determine the legal form of incorporation of the Platform.
            (3) Situs of incorporation.--The Corporation shall--
                    (A) determine in which of the several States to 
                incorporate the Platform; and
                    (B) have the authority to amend the State of 
                incorporation to best effectuate the purposes and 
                obligations of this part and other provisions of this 
                Act.
            (4) Timing of incorporation.--Not later than 1 year after 
        the agency transfer date, the Corporation shall file and submit 
        the necessary documents to incorporate the Platform in the 
        State determined under paragraph (3)(A).
    (d) Funding by the Corporation and Transfer of Property.--
            (1) Transfer of funds from the corporation.--At a time 
        established by the Corporation, the Corporation shall transfer 
        to the Platform such funds as the Corporation, in consultation 
        with the Platform Directors, determines may be reasonably 
        necessary for the Platform to begin carrying out the activities 
        and operations of the Platform.
            (2) Transfer of property.--
                    (A) In general.--Consistent with title VI, the 
                Federal Housing Finance Agency, in consultation with 
                the Corporation and, as appropriate, the enterprises, 
                may direct the enterprises to transfer or sell to the 
                Platform any property, including but not limited to, 
                intellectual property, technology, systems, and 
                infrastructure (including technology, systems, and 
                infrastructure developed by the enterprises for the 
                CSP), as well as any other legacy systems, 
                infrastructure, and processes that may be necessary for 
                the Platform to carry out the functions and operations 
                of the Platform.
                    (B) Contractual and other legal obligations.--As 
                may be necessary for the Corporation, the Federal 
                Housing Finance Agency, and the enterprises to comply 
                with legal, contractual, or other obligations, the 
                Federal Housing Finance Agency shall have the authority 
                to require that any transfer authorized pursuant to 
                subparagraph (A) occurs as an exchange for value, 
                including through the provision of appropriate 
                compensation to the enterprises (including as provided 
                in subparagraphs (C) and (D)), or other entities 
                responsible for creating, or contracting with, the CSP.
                    (C) Maximum return to senior preferred shareholders 
                of the enterprises.--The transfer or sale of property 
                to the Platform under this paragraph shall, as 
                appropriate, be managed by the Federal Housing Finance 
                Agency to obtain resolutions that maximize the return 
                for the senior preferred shareholders of the 
                enterprises to the extent that such resolutions--
                            (i) are consistent with facilitating--
                                    (I) a deep, liquid, and resilient 
                                secondary mortgage market for single-
                                family and multifamily mortgage-backed 
                                securities to support access to 
                                mortgage credit in the primary mortgage 
                                market; and
                                    (II) an orderly transition from 
                                housing finance markets facilitated by 
                                the enterprises to housing finance 
                                markets facilitated by the Corporation 
                                with minimum disruption in the 
                                availability of loan credit;
                            (ii) are consistent with applicable Federal 
                        and State law;
                            (iii) comply with the requirements of this 
                        Act and the amendments made by this Act; and
                            (iv) protect the taxpayer from having to 
                        absorb losses incurred in the secondary 
                        mortgage market.
                    (D) Required determinations for sale of assets to 
                the platform.--The Federal Housing Finance Agency may 
                not require the enterprises to make a sale to the 
                Platform under subparagraph (A) that involves the 
                disposition of the property or assets of the 
                enterprises unless the Federal Housing Finance Agency 
                determines that the sale--
                            (i) is consistent with an orderly 
                        transition from housing finance markets 
                        facilitated by the enterprises to efficient 
                        housing finance markets facilitated by the 
                        Corporation with minimum disruption in the 
                        availability of loan credit;
                            (ii) does not impede or otherwise interfere 
                        with the ability of the Federal Housing Finance 
                        Agency or the Corporation to carry out the 
                        functions and requirements of this Act;
                            (iii) does not transfer, convey, or 
                        authorize any guarantee or Federal support, 
                        assistance, or backing, implicit or explicit, 
                        related to any such property or assets being 
                        sold; and
                            (iv) will maximize the return for the 
                        senior preferred shareholders as required under 
                        subparagraph (C).
    (e) Platform Operability.--The Corporation shall establish 
sufficient redundancies in the Platform so that in the event of 
operational disruption of the Platform, there is sufficient back-up 
capacity to--
            (1) process payments on existing securities issued through 
        the Platform; and
            (2) structure, form, and issue new securities through the 
        Platform.
    (f) Use by Other Entities in Exigent Circumstance.--
            (1) In general.--On and after the system certification 
        date, if the Corporation determines that operational or other 
        problems with the Platform do not permit the Platform to 
        operate in a manner that allows the Platform to achieve the 
        purposes and obligations of the Platform under section 325, the 
        Corporation shall have the authority to permit the Platform 
        Directors to use entities other than the Platform to perform 
        the issuance functions required to be performed through the 
        Platform and that are necessary for the proper functioning of 
        the secondary mortgage market.
            (2) Rule of construction.--Any entity permitted to perform 
        issuance functions that would ordinarily be expected to be 
        performed by the Platform under paragraph (1) shall be 
        regulated and supervised, as appropriate, by the Corporation as 
        if such entity were the Platform itself.

SEC. 322. MANAGEMENT OF THE PLATFORM.

    (a) Platform Directors.--
            (1) Authority of the board.--
                    (A) In general.--The Platform Directors shall have 
                all the powers necessary to carry out the purposes, 
                powers, and functions of the Platform, and in the 
                exercise of such purposes, powers, and functions, and 
                upon approval of the Corporation, shall adopt such 
                rules and guidance and issue such orders as the 
                Platform Directors deem necessary and appropriate.
                    (B) Conflicts of interest.--The Platform Directors 
                shall develop policies and procedures to monitor and 
                mitigate potential conflicts of interest in carrying 
                out the purposes, powers, and functions of the 
                Platform.
            (2) Initial board.--
                    (A) Composition.--The initial Platform Directors 
                shall be comprised of 5 directors, each of whom shall 
                be appointed by the Board of Directors but none of whom 
                shall be a member of the Board of Directors.
                    (B) Timing of appointment of initial platform 
                directors.--The initial Platform Directors shall be 
                appointed pursuant to subparagraph (A) not later than 
                180 days after the later of--
                            (i) the filing of the necessary documents 
                        to incorporate the Platform as required under 
                        section 321(c); or
                            (ii) the approval of the incorporation of 
                        the Platform by the relevant State.
                    (C) Term.--
                            (i) In general.--Each initial Platform 
                        Director appointed pursuant to subparagraph (A) 
                        shall serve for a term of 1 year.
                            (ii) Authority to extend term.--The Board 
                        of Directors may--
                                    (I) in its discretion, extend for 
                                an additional year the term of each 
                                initial Platform Director appointed 
                                pursuant to subparagraph (A); and
                                    (II) upon a determination by the 
                                Corporation that the Platform 
                                membership does not reflect the 
                                diversity or variety of market 
                                participants required to conduct the 
                                election of the Platform Directors 
                                under paragraph (3), extend for an 
                                additional 2 years the term of each 
                                initial Platform Director appointed 
                                pursuant to subparagraph (A).
                    (D) Purpose of the initial platform directors.--The 
                initial Platform Directors shall--
                            (i) draft and enact initial bylaws and 
                        other governance documents for the operation of 
                        the Platform, including policies and procedures 
                        pursuant to paragraph (1)(B);
                            (ii) establish criteria for membership in 
                        the Platform consistent with the requirements 
                        of section 323;
                            (iii) establish any necessary initial fee 
                        structures or usage fee structures under 
                        section 324; and
                            (iv) organize and conduct the election of 
                        the Platform Directors from the Platform 
                        members as required by paragraph (3).
            (3) Elected board.--
                    (A) Required election; timing of election.--Upon 
                the expiration of the term of the members of the 
                initial Platform Directors, the members of the Platform 
                shall, in accordance with subparagraphs (B) through 
                (F), elect new Platform Directors.
                    (B) Composition.--
                            (i) Diversity.--The Platform Directors 
                        elected pursuant to this paragraph shall 
                        reflect the diverse range of Platform members, 
                        including large, mid-size, and small business 
                        members.
                            (ii) Members.--
                                    (I) In general.--The Platform 
                                Directors elected pursuant to this 
                                paragraph shall be comprised of 9 
                                directors as follows:
                                            (aa) 8 member directors, 
                                        including--

                                                    (AA) 7 member 
                                                directors who shall be 
                                                elected from among 
                                                representatives of the 
                                                members in the 
                                                Platform, at least 1 of 
                                                whom shall represent 
                                                the interests of small 
                                                mortgage lenders; and

                                                    (BB) 1 member 
                                                director who shall be a 
                                                representative of a 
                                                small lender mutual, as 
                                                established under 
                                                section 315(k).

                                            (bb) 1 independent 
                                        director.
                                    (II) Independent director.--The 
                                independent director elected pursuant 
                                to this paragraph--
                                            (aa) shall not be an 
                                        affiliate of any member in the 
                                        Platform; and
                                            (bb) shall have 
                                        demonstrated knowledge of, or 
                                        experience in, financial 
                                        management, financial services, 
                                        risk management, information 
                                        technology, or housing finance, 
                                        which may include affordable 
                                        housing finance.
                    (C) Chairperson.--The Chairperson of the Platform 
                Directors shall be elected from among the Platform 
                Directors elected under this paragraph.
                    (D) Term.--
                            (i) In general.--Each Platform Director 
                        elected under this paragraph shall serve for a 
                        term of 2 years.
                            (ii) Staggered terms.--Notwithstanding 
                        clause (i)--
                                    (I) the first elected chairperson 
                                of the Platform Directors shall be 
                                elected to serve for a term of 2 years; 
                                and
                                    (II) of the first 8 other Platform 
                                Directors not elected to serve as 
                                chairperson:
                                            (aa) 4 shall be elected to 
                                        serve for a term of 2 years.
                                            (bb) 4 shall be elected to 
                                        serve an initial term of 1 
                                        year.
                    (E) Equal votes.--Platform Directors shall have 
                equal voting rights on any matters before the Platform 
                Directors.
                    (F) Nomination and election procedures.--Procedures 
                for the nomination and election of Platform Directors 
                shall be prescribed by the bylaws adopted by the 
                Platform Directors in a manner consistent with the 
                purposes and provisions of this part.
                    (G) Restructuring of platform directors.--The 
                Platform Directors elected under this paragraph, with 
                approval from the Corporation, may choose to 
                restructure or reorganize the Platform Directors in a 
                manner different than what is specified under this 
                paragraph following a determination by the Platform 
                Directors and the Corporation that a different Platform 
                board structure or Platform board composition would 
                better achieve the purposes and obligations of this 
                Act, or better serve the owners of the Platform in a 
                manner consistent with the public interest.
    (b) Executive Officers.--The Platform Directors shall appoint a 
chief executive officer, chief financial officer, comptroller, chief 
regulatory officer, and any other officers as the Platform Directors 
deem necessary to carry out the management and administration of the 
functions and operations of the Platform.

SEC. 323. MEMBERSHIP IN THE PLATFORM.

    (a) Application.--
            (1) In general.--A person seeking to become a member in the 
        Platform, or to be reinstated as a member in the Platform, 
        shall file an application with the Platform Directors.
            (2) Standards.--Consistent with achieving a broad 
        membership that includes small mortgage lenders, as well as 
        large, mid-size, and small business members, the Platform 
        Directors shall develop procedures and standards for--
                    (A) the application of persons seeking to become 
                members in the Platform; and
                    (B) the approval of applicants for membership in 
                the Platform.
            (3) Additional standards for approved entities.--The 
        standards for the approval by the Platform Directors of an 
        approved entity as a member in the Platform shall be consistent 
        with and supplement any standards, requirements, and 
        obligations applicable to the approved entity under subtitle B 
        of this title, or any other provision of this Act.
    (b) Members.--The Platform Directors may approve as a member of the 
Platform any person that applies for membership in the Platform 
pursuant to subsection (a) that is--
            (1) a mortgage aggregator;
            (2) a mortgage guarantor;
            (3) a mortgage originator;
            (4) a Federal Home Loan Bank or a subsidiary or joint 
        office approved under section 312 of one or more Federal Home 
        Loan Banks;
            (5) a small lender mutual established or approved under 
        section 315; or
            (6) any other market participant, provided that in the sole 
        determination of the Platform Directors, having such market 
        participant as a member of the Platform is necessary or helpful 
        to fulfilling the purposes and obligations of the Platform 
        under section 325.
    (c) Termination.--The Platform Directors may terminate membership 
in the Platform of any member for failure to adhere to any standards 
established by the Platform Directors.

SEC. 324. FEES.

    (a) In General.--The Platform Directors may assess and collect 
fees, and may, in their discretion, increase or decrease such fees, 
from the members in the Platform--
            (1) for initial membership in the Platform, consistent with 
        the requirements of subsection (b);
            (2) to maintain ongoing membership in the Platform;
            (3) for use of the Platform, consistent with the 
        requirements of subsection (c); and
            (4) to cover the ongoing costs of the functions and 
        operations of the Platform, including--
                    (A) the purchase of property, technology, and 
                systems developed by either enterprise or others;
                    (B) to develop and invest in new technology;
                    (C) to build a capital base that would be able to 
                offset, or otherwise mitigate, losses that might occur 
                due to the potential operational failure of the 
                Platform; and
                    (D) to conduct any other activities approved by the 
                Platform Directors.
    (b) Initial Fee.--Upon approval of its application to become a 
member in the Platform, each new approved member shall pay to the 
Platform a fee in an amount to be determined by the Platform Directors, 
provided that such fee amount is consistent with obtaining a broad 
membership in the Platform that includes small mortgage lenders, as 
well as large, mid-size, and small business members.
    (c) Usage Fees.--
            (1) Establishment.--Each member in the Platform shall pay 
        usage fees, as such fees are determined by the Platform 
        Directors.
            (2) Review of fees.--The Platform Directors shall, not less 
        than annually, review the fee structure established under this 
        subsection and submit any resulting recommendations to amend 
        the fee structure to the Corporation.
            (3) Assessment and measurement.--
                    (A) In general.--Except as otherwise provided under 
                subparagraphs (B) and (C), usage fees charged and 
                collected under this subsection shall be equitably 
                assessed and based upon the member's use of the 
                services offered by the Platform, as such use is to be 
                measured by the total principal balance of the mortgage 
                loans or mortgage-backed securities securitized for the 
                member through the Platform.
                    (B) Tiered fee options.--If the Platform Directors 
                determine that certain entities face a barrier to use 
                the Platform, the Platform Directors may adopt a tiered 
                usage fee structure to promote greater access and a 
                more competitive market for the Platform that may 
                include differential fee structures for usage fee 
                charges incurred by housing finance agencies, small 
                mortgage lenders, Community Development Financial 
                Institutions, mission-based nonprofit lenders, 
                community land trusts, permanently affordable 
                homeownership programs, or other organizations selected 
                by the Corporation.
                    (C) Tiered fee option for covered and noncovered 
                securities.--The Platform Directors may adopt a tiered 
                usage fee structure under this subsection that may 
                include differential fee structures for usage fee 
                charges for the issuance of noncovered securities that 
                differ from the usage fees charged for the issuance of 
                covered securities.
            (4) Payment.--Usage fees charged under this subsection 
        shall be paid by the member at the time the mortgage loans or 
        mortgage-backed securities are delivered by the member to the 
        Platform.
    (d) Corporation Review of Initial Fees and Usage Fees.--
            (1) In general.--The Platform Directors shall submit any 
        fee structure proposal for initial fees or usage fees under 
        subsection (b) or (c) to the Corporation. The Corporation shall 
        approve any initial fee or usage fee structure proposed by the 
        Platform Directors unless the Corporation determines that the 
        fee structure is not consistent with--
                    (A) facilitating, a deep, liquid, and resilient 
                secondary mortgage market for mortgage-backed 
                securities; and
                    (B) the purposes and obligations of the Platform 
                under section 325.
            (2) Automatic establishment of fees absent corporation 
        disapproval.--If the Corporation does not issue an order of 
        disapproval of an initial fee or usage fee structure proposed 
        by the Platform Directors within 60 days following the 
        submission of the proposed initial fee or usage fee structure 
        to the Corporation, the proposed initial fee or usage fee 
        structure shall automatically go into effect for the Platform 
        and its members.
            (3) Impact of corporation disapproval.--If the Corporation 
        disapproves an initial fee or usage fee structure proposed by 
        the Platform Directors pursuant to this subsection, the 
        Platform Directors may--
                    (A) submit to the Corporation a revised fee or 
                usage fee structure for approval; or
                    (B) if applicable, use the existing approved fee or 
                usage fee structure.

SEC. 325. PURPOSES AND OBLIGATIONS OF THE PLATFORM.

    (a) Purpose.--The purposes of the Platform established under 
section 321 are to--
            (1) purchase and receive from its members eligible mortgage 
        loans or securities collateralized by eligible mortgage loans 
        for securitization by issuers as covered securities;
            (2) issue through the Platform to its members standardized 
        covered securities, or other covered securities, insured by the 
        Corporation pursuant to this Act;
            (3) purchase and receive from its members noneligible 
        mortgage loans or securities not collateralized by eligible 
        mortgage loans for securitization as noncovered securities, to 
        the extent desired or requested by its members; and
            (4) issue to its members standardized noncovered 
        securities, or other noncovered securities, that are not 
        insured by the Corporation pursuant to this Act, to the extent 
        desired or requested by its members.
    (b) Powers and Functions.--The powers and functions of the Platform 
are to--
            (1) develop the ability to issue, and to issue, 
        standardized covered securities, insured by the Corporation 
        pursuant to this Act, in accordance with subsection (e);
            (2) develop, adopt, and publish standardized securitization 
        documents and agreements (including, but not limited to, 
        uniform pooling, trust, and custodial agreements)--
                    (A) required for all covered securities issued by 
                or through the Platform in accordance with section 
                326(a) (and which shall be made optional for all 
                noncovered securities issued through the Platform); and
                    (B) which--
                            (i) shall be drafted in consultation with 
                        the Corporation, the Bureau of Consumer 
                        Financial Protection, the Department of Housing 
                        and Urban Development, and such other Federal 
                        regulatory agencies as the Platform Directors 
                        determine appropriate;
                            (ii) may rely upon existing documentation 
                        and forms required by the enterprises or other 
                        Federal regulatory agencies, to the extent 
                        determined by the Platform Directors to be 
                        practical or appropriate; and
                            (iii) before being issued through the 
                        Platform, shall be approved by the Corporation 
                        as being consistent with--
                                    (I) the requirements under section 
                                326(a); and
                                    (II) facilitating a deep, liquid, 
                                and resilient secondary mortgage market 
                                for mortgage-backed securities;
            (3) develop standardized documents approved by the 
        Corporation for servicing and loss mitigation standards 
        pursuant to section 314 for eligible mortgage loans that 
        collateralize the covered securities issued through the 
        Platform to its members, which shall be based on standards set 
        by the Corporation and which may rely upon existing 
        documentation and forms required by the enterprises or other 
        Federal or State regulatory agencies, to the extent determined 
        by the Platform Directors to be practical or appropriate;
            (4) as expressly provided in section 326(b)(2)(F), develop, 
        adopt, and publish the required contractual terms for contracts 
        for noncovered securities issued through the Platform, which 
        shall be--
                    (A) developed in consultation with the Corporation, 
                the Bureau of Consumer Financial Protection, the 
                Department of Housing and Urban Development, and such 
                other Federal regulatory agencies as the Platform 
                Directors determine appropriate; and
                    (B) before being issued through the Platform, 
                approved by the Corporation as being consistent with--
                            (i) the requirements under section 326(b); 
                        and
                            (ii) facilitating a deep, liquid, and 
                        resilient secondary mortgage market for 
                        mortgage-backed securities;
            (5) develop, adopt, and publish optional standardized 
        securitization documents and agreements (including, but not 
        limited to, uniform pooling, trust, and custodial agreements) 
        tailored for noncovered securities issued through the Platform, 
        and which may be used as desired or requested by the members of 
        the Platform, in accordance with section 326(c), and which 
        standardized securitization documents and agreements--
                    (A) shall be drafted in consultation with the 
                Corporation, the Bureau of Consumer Financial 
                Protection, the Department of Housing and Urban 
                Development, and such other Federal regulatory agencies 
                as the Platform Directors determine appropriate;
                    (B) may rely upon existing documentation and forms 
                required by the enterprises or other Federal or State 
                regulatory agencies, to the extent determined by the 
                Platform Directors to be practical or appropriate; and
                    (C) before being issued through the Platform, shall 
                be approved by the Corporation as being consistent 
                with--
                            (i) the requirements under section 326(c); 
                        and
                            (ii) facilitating a deep, liquid, and 
                        resilient secondary mortgage market for 
                        mortgage-backed securities;
            (6) the extent not otherwise provided in paragraphs (2), 
        (3), and (5), to endeavor to use or rely upon existing 
        documentation and forms required by the enterprises or other 
        Federal or State regulatory agencies, to the extent determined 
        by the Platform Directors to be practical or appropriate;
            (7) establish a strong business continuity plan that meets 
        industry best practices and establish sufficient redundancies 
        so that in the event of an operational failure of the Platform 
        there is sufficient back-up capacity to process payments and 
        issue covered and noncovered securities;
            (8) verify that the eligible mortgage loans and securities 
        collateralized by eligible mortgage loans purchased and 
        received by the Platform, including from any small lender 
        mutual established or approved under section 315, for 
        securitization as covered securities, meet the requirements for 
        covered securities under this Act and any regulations adopted 
        by the Corporation pursuant thereto;
            (9) verify that the noneligible mortgage loans and 
        securities not collateralized by eligible mortgage loans 
        purchased and received by the Platform, including from any 
        small lender mutual established or approved under section 315, 
        for securitization as noncovered securities, meet the 
        requirements for noncovered securities under this Act and any 
        regulations adopted by the Corporation pursuant thereto;
            (10) for the purpose of securitization, purchase or receive 
        from members of the Platform--
                    (A) eligible mortgage loans, pools of eligible 
                mortgage loans, securities collateralized by eligible 
                mortgage loans, or outstanding mortgage-backed 
                securities issued by the enterprises for securitization 
                as covered securities; and
                    (B) noneligible mortgage loans, pools of 
                noneligible mortgage loans, or securities 
                collateralized by noneligible mortgage loans for 
                securitization as noncovered securities, to the extent 
                desired or requested by members of the Platform;
            (11) for the purpose of securitization, facilitate the 
        issuance of--
                    (A) all covered securities of members of the 
                Platform that are collateralized by eligible mortgage 
                loans, or outstanding mortgage-backed securities issued 
                by the enterprises;
                    (B) all covered securities of members of the 
                Platform that are pooled from--
                            (i) a single mortgage originator, mortgage 
                        aggregator, approved entity, or regulated 
                        entity; or
                            (ii) multiple mortgage originators, 
                        mortgage aggregators, approved entities, or 
                        regulated entities;
                    (C) noncovered securities collateralized by 
                noneligible mortgage loans received from members of the 
                Platform; and
                    (D) noncovered securities collateralized by 
                noneligible mortgage loans received from members of the 
                Platform that are pooled from--
                            (i) a single mortgage originator, mortgage 
                        aggregator, or regulated entity; or
                            (ii) multiple mortgage originators, 
                        mortgage aggregators, or regulated entities;
            (12) perform bond administration, data validation, and 
        reporting for all covered and noncovered securities issued 
        through the Platform, including those issued on behalf of any 
        small lender mutual established or approved under section 315;
            (13) facilitate systems to lower barriers to entry for new 
        mortgage originators and approved entities or access to 
        membership in the Platform;
            (14) provide essential functions necessary to issue 
        standardized securities which may be compatible with the To-Be-
        Announced market, for covered securities and, if appropriate, 
        noncovered securities;
            (15) manage operational and systems related risks 
        associated with delivering covered and noncovered securities 
        and receiving eligible and noneligible mortgage loans;
            (16) develop the capability to offer securitization 
        services to private label issuers;
            (17) require the servicing documentation used for mortgage 
        loans that collateralize securities issued through the Platform 
        to provide a standard method (which may include the use of a 
        single electronic verification system) for a mortgagor who has 
        been denied a loan modification to verify such denial at no 
        cost to the mortgagor;
            (18) facilitate the issuance of securitizations for 
        multifamily loans, establish common documentation, or develop 
        other requirements necessary to permit the Platform, or a 
        subsidiary or affiliate thereof, to be used for multifamily 
        loan securitizations if the Platform Directors issue a 
        determination that it would be desirable and practical for the 
        Platform, or a subsidiary or affiliate thereof, to be used to 
        issue or otherwise facilitate multifamily loan securitizations; 
        and
            (19) establish, not later than the system certification 
        date, a Collateral Valuation Advisory Committee--
                    (A) which shall be comprised of 9 members appointed 
                by the Platform Directors, including representatives of 
                appraisers, appraisal management companies, mortgage 
                originators (including small mortgage lenders), 
                investors, real estate professionals, homebuilding 
                professionals, consumer advocates, as well as Federal 
                and State appraisal regulatory organizations;
                    (B) the purpose of which shall be to--
                            (i) provide recommendations to the Platform 
                        and the Corporation regarding secondary 
                        mortgage market residential appraisal 
                        guidelines, standards, and reporting formats 
                        consistent with the Real Estate Settlement 
                        Procedures Act (12 U.S.C. 2603), the Truth in 
                        Lending Act (15 U.S.C. 1631 et seq.), and all 
                        other applicable Federal and State laws; and
                            (ii) make recommendations regarding the 
                        continuation of a repository for valuation 
                        reports, taking into account existing 
                        operational structures and contractual 
                        arrangements; and
                    (C) which, in fulfilling its purpose under this 
                paragraph, shall, as appropriate, consult and 
                coordinate with the Appraisal Subcommittee of the 
                Federal Financial Institutions Examinations Council 
                established under title XI of the Financial 
                Institutions Reform, Recovery, and Enforcement Act of 
                1989 (12 U.S.C. 3331 et seq.).
    (c) Prohibited Activities.--The Platform may not--
            (1) guarantee any mortgage loans or mortgage-backed 
        securities;
            (2) assume or hold mortgage loan credit risk;
            (3) purchase any mortgage loans for cash on a single loan 
        basis for the purpose of securitization;
            (4) undertake the issuance of any covered securities 
        through the Platform unless the first loss position is already 
        held by a private entity;
            (5) own or hold any mortgage loans or mortgage-backed 
        securities for investment purposes;
            (6) make or be a party to any representation and warranty 
        agreement on any mortgage loans; or
            (7) take lender representation and warranty risk.
    (d) Interoperability With Multifamily Loan Securitization 
Issuance.--The Platform shall be developed in a manner that may permit, 
and would not preclude, the Platform, or any subsidiary or affiliate 
thereof, to be used for the issuance of multifamily loan 
securitizations, provided that the development of this vehicle for 
multifamily loan securitizations does not delay the ability of the 
Platform to perform its obligations under this section with respect to 
single-family securities by the system certification date.
    (e) Timing of Platform Capacity to Develop and to Issue 
Standardized Securities for the Single-family Covered Securities.--Not 
later than 2 years following the election of the Platform Directors 
under section 322(a)(3), or as otherwise permitted under section 601, 
the Platform shall develop the Platform's ability to issue, and issue, 
standardized securities for single-family covered securities.
    (f) Discretion for Platform Directors to Issue Standardized 
Securities for Single-family Noncovered Securities.--The Platform 
Directors may develop an ability for the Platform to issue standardized 
securities for single-family noncovered securities, if the Platform 
Directors determine that sufficient demand exists among the Platform 
members for the Platform to issue such a product.

SEC. 326. UNIFORM SECURITIZATION AGREEMENTS FOR COVERED SECURITIES AND 
              REQUIRED CONTRACTUAL TERMS FOR NONCOVERED SECURITIES.

    (a) Required Uniform Securitization Agreements for Covered 
Securities Issued Through the Platform.--
            (1) In general.--The Platform Directors shall develop 
        standard uniform securitization agreements for all covered 
        securities to be issued through the Platform, as required 
        pursuant to section 325(b)(2).
            (2) Required terms.--The standard uniform securitization 
        agreements required to be developed under paragraph (1) shall 
        include terms relating to--
                    (A) pooling and servicing, including the 
                development of uniform standards and practices 
                consistent with the standards specified by the 
                Corporation pursuant to section 314;
                    (B) loss mitigation procedures consistent with 
                those specified by the Corporation pursuant to section 
                314;
                    (C) minimum representations and warranties;
                    (D) indemnification and remedies, including for the 
                restitution or indemnification of the Corporation with 
                respect to early term delinquencies of eligible 
                mortgage loans that collateralize a covered security;
                    (E) the requirements of the indenture for mortgage-
                backed securities that are exempt from the Trust 
                Indenture Act of 1939 (15 U.S.C. 77aaa et seq.) and the 
                requirements, responsibilities, and duties of trustees, 
                as set forth in the indenture or pooling and servicing 
                agreement;
                    (F) the qualification, responsibilities, and duties 
                of trustees; and
                    (G) any other terms or standards the Platform 
                Directors, with approval of the Corporation, determine 
                to be necessary or appropriate.
            (3) Defining representation and warranty violations.--In 
        developing the uniform securitization agreements required under 
        paragraph (1), the Platform Directors shall also develop, 
        adopt, and publish, upon approval by the Corporation, clear and 
        uniform standards that define and illustrate what actions, or 
        omissions to act, comprise a violation of the representations 
        and warranties clauses that are made a part of such agreements.
    (b) Required Contractual Terms for Contracts for All Noncovered 
Securities Issued Through the Platform.--
            (1) In general.--All contracts for noncovered securities 
        issued through the Platform shall include a set of required 
        contractual terms relating to the obligations of the parties to 
        each contract.
            (2) Required contractual terms.--The required contractual 
        terms for agreements for all noncovered securities issued 
        through the Platform shall provide the obligations of the 
        parties to a contract including the following considerations:
                    (A) Pooling and servicing.
                    (B) Loss mitigation procedures.
                    (C) Representations and warranties.
                    (D) Indemnification and remedies.
                    (E) The qualification, responsibilities, and duties 
                of trustees, including, but not limited to, 
                requirements set forth in the indenture or pooling and 
                servicing agreement, or any applicable provisions of 
                the Trust Indenture Act of 1939 (15 U.S.C. 77aaa et 
                seq.).
                    (F) Other terms or standards the Platform 
                Directors, with approval of the Corporation, determine 
                to be necessary or appropriate to protect or facilitate 
                the operation of the Platform.
            (3) Permissible adjustments.--Parties to contracts for 
        noncovered securities described under this subsection may 
        supplement the required contractual terms identified under 
        paragraph (2) with any additional contractual terms so desired 
        by the parties to contracts for noncovered securities issued 
        through the Platform.
    (c) Optional Uniform Securitization Agreements for Noncovered 
Securities Issued Through the Platform.--The Platform Directors may 
develop optional uniform securitization agreements for use by 
noncovered securities that are issued through the Platform that include 
standards and obligations that are different from those included in the 
uniform securitization agreements for covered securities as set forth 
in subsection (a), provided that--
            (1) the agreements include the required contractual terms 
        required for noncovered securities that are issued through the 
        Platform set forth in subsection (b); and
            (2) the Platform Directors determine that sufficient demand 
        exists among the members of the Platform for the Platform to 
        issue such optional uniform securitization agreements for use 
        by noncovered securities.
    (d) Agreements for Noncovered Securities Issued Off the Platform.--
Nothing in this section shall preclude, or require, noncovered 
securities that are not issued through the Platform from adopting the--
            (1) uniform securitization agreements for covered 
        securities issued through the Platform developed under 
        subsection (a);
            (2) optional uniform securitization agreements for 
        noncovered securities issued through the Platform developed 
        under subsection (c); or
            (3) required contractual terms for contracts for noncovered 
        securities issued through the Platform developed under 
        subsection (b).
    (e) Consultation Required.--The Platform Directors shall consult 
with market participants, including servicers, originators, issuers, 
and mortgage investors, and community stakeholders and representatives 
of homeowners in developing--
            (1) the uniform securitization agreements pursuant to 
        subsection (a);
            (2) the required contractual terms for contracts for 
        noncovered securities issued through the Platform pursuant to 
        subsection (b); and
            (3) the optional uniform securitization agreements for 
        noncovered securities issued through the Platform pursuant to 
        subsection (c).

SEC. 327. APPROVAL AND STANDARDS FOR COLLATERAL RISK MANAGERS.

    (a) Standards for Approval of Collateral Risk Managers.--The 
Corporation shall develop, adopt, and publish standards for the use of 
collateral risk managers who may work with the Platform, as well as 
trustees and servicers of mortgage-backed securities to manage mortgage 
loan collateral, including standards with respect to--
            (1) tracking mortgage loan repurchases;
            (2) compliance with obligations under any applicable 
        securitization documents; and
            (3) managing--
                    (A) any disputes; and
                    (B) the resolution process.
    (b) Additional Required Standards.--The standards required under 
subsection (a) shall include the review of foreclosure loss mitigation 
programs established under section 314 for approved servicers.

               PART II--TRANSPARENCY IN MARKET OPERATIONS

SEC. 331. REVIEW OF LOAN DOCUMENTS; DISCLOSURES.

    (a) In General.--The Corporation, in consultation and coordination 
with the Securities and Exchange Commission, shall, by rule--
            (1) require market participants, as appropriate, to make 
        available to private market investors in connection with the 
        first loss position on a covered security, including through 
        use of the Securitization Platform established under section 
        321, all--
                    (A) documents relating to eligible mortgage loans 
                collateralizing that covered security; and
                    (B) servicing reports of the approved servicer 
                relating to such eligible mortgage loans;
            (2) require market participants, as appropriate, to 
        disclose to investors information that is substantially 
        similar, to the extent practicable, to disclosures required of 
        issuers of asset-backed securities under section 13(a) or 15(d) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 
        78o(d)) until the covered security is fully paid, other than 
        information that the Corporation determines, in consultation 
        and coordination with the Securities and Exchange Commission, 
        is not applicable to a covered security, a particular type of 
        covered security, or eligible mortgage loans collateralizing a 
        covered security;
            (3) require that all disclosures must be made consistent 
        with the antifraud provisions of the Federal securities laws; 
        and
            (4) establish the timing, frequency, and manner in which 
        such access and disclosures are made.
    (b) Access and Disclosures.--In prescribing the rules required 
under subsection (a), the Corporation shall take into consideration--
            (1) the potential cost of such access and disclosures;
            (2) the effect of such access and disclosures on liquidity 
        in the housing finance market; and
            (3) the interests of investors.
    (c) Privacy Protections.--In prescribing the rules required under 
subsection (a), the Corporation shall take into consideration issues of 
consumer privacy and all statutes, rules, and regulations related to 
privacy of consumer credit information and personally identifiable 
information. Such rules shall expressly prohibit the identification of 
specific borrowers.

SEC. 332. NATIONAL MORTGAGE DATABASE.

    (a) Transfer.--Effective on the system certification date, there 
are transferred to the Corporation all functions of the Federal Housing 
Finance Agency of the Corporation relating to the rights, 
responsibilities, and obligations of the Federal Housing Finance Agency 
pursuant to the Inter-Agency Agreement (or any successor thereto) 
entered into by the Federal Housing Finance Agency and the Bureau of 
Consumer Financial Protection with respect to the development, 
construction, maintenance, operation, and funding of the National 
Mortgage Database.
    (b) Privacy.--In exercising authority under this section, the 
Corporation and the Bureau of Consumer Financial Protection shall--
            (1) take steps to ensure the privacy of consumers, 
        including prohibiting the identification of specific borrowers;
            (2) minimize the collection and storage of personally 
        identifiable information; and
            (3) consider all statutes, rules, and regulations relating 
        to the privacy of consumer credit information and personally 
        identifiable information.
    (c) Duplication.--The Chairperson and the Director of the Bureau of 
Consumer Financial Protection shall take all reasonable steps necessary 
to minimize conflicts and duplication of the data required under this 
section with data collected, published, or otherwise obtained by other 
Federal regulators, including the data disclosure system required under 
section 304(f) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
2803(f)).
    (d) Minimize Burden on Reporting Entities.--If 2 or more entities 
are required by this section to report the same mortgage data relating 
to the same mortgage loan, the entities may, by agreement that is 
clearly communicated to the Corporation and the Bureau, determine that 
only 1 of such entities will report the data. If 1 of such entities 
reports the required mortgage data, it shall not be a violation of this 
section for the other entities not to report the data.
    (e) Access to Data.--The Corporation and the Bureau of Consumer 
Financial Protection shall each establish, and cause to be published in 
the Federal Register, the initial date on which--
            (1) the public shall begin to have access to any data put 
        into the public domain, in accordance with this section and in 
        a manner that is easily accessible to the public; and
            (2) all mortgage data is required to be put into the public 
        domain, in accordance with this section.

SEC. 333. WORKING GROUP ON ELECTRONIC REGISTRATION OF MORTGAGE LOANS.

    (a) Establishment.--Not later than 180 days after the agency 
transfer date, the Corporation shall establish a working group to 
study--
            (1) whether the establishment of a national electronic 
        mortgage registry system is necessary; and
            (2) how to establish, operate, and maintain a national 
        electronic mortgage registry system for single-family mortgage 
        loans and multifamily mortgage loans.
    (b) Composition.--The working group established under subsection 
(a) shall be composed of the following:
            (1) The Chairperson or the Chairperson's designee.
            (2) The Director of the Bureau of Consumer Financial 
        Protection or the Director's designee.
            (3) The Chairman of the Federal Deposit Insurance 
        Corporation or the Chairman's designee.
            (4) The Chairman of the Securities and Exchange Commission 
        or the Chairman's designee.
            (5) The Chairman of the Federal Reserve Board or the 
        Chairman's designee.
            (6) The Comptroller of the Currency or the Comptroller's 
        designee.
            (7) A representative from the Federal Home Loan Bank 
        System.
            (8) A representative from a Federal Reserve Bank.
            (9) Individuals selected by the Chairperson from among the 
        following:
                    (A) State and local government agencies and 
                representatives, including housing finance agencies and 
                those with expertise in property records, electronic 
                recording, and the Uniform Commercial Code.
                    (B) The National Conference of Commissioners on 
                Uniform State Laws
                    (C) Industry groups, including single-family and 
                multifamily mortgage originators, title insurers, 
                servicers, issuers, and investors.
                    (D) Consumer groups, including representatives of 
                homeowners, community stakeholders, and housing 
                organizations.
                    (E) Individuals with technical expertise, including 
                those with expertise in designing, constructing and 
                maintaining mortgage databases.
    (c) Duties.--The duties of the working group established under 
subsection (a) are to assess and develop recommendations on the 
necessity for and feasibility of establishing, operating, and 
maintaining a national electronic mortgage registry system for single-
family mortgage loans and multifamily mortgage loans to document 
custody and registration of mortgage loans, notes, titles, liens, deeds 
of trust, and other security instruments, in order to automate, 
centralize, standardize, and improve the tracking of changes in--
            (1) the ownership of mortgage loans, deeds of trust, and 
        other security instruments;
            (2) the ownership of the beneficial interest in promissory 
        notes secured by any mortgage loan, deed of trust, or other 
        security instrument;
            (3) the servicing rights for any mortgage loan, deed of 
        trust, or other security instrument; and
            (4) such other information as the Corporation may require.
    (d) Considerations.--In carrying out the duties under this section, 
the working group established under subsection (a) shall consider--
            (1) the cost to States and localities, including any impact 
        on revenue generated by local recording of mortgage loan 
        documents;
            (2) the feasibility of allowing States and localities to 
        continue to collect fees and revenue;
            (3) the implications of data accuracy on judicial or non-
        judicial foreclosure;
            (4) the need to minimize conflicting mortgage loan registry 
        requirements;
            (5) the need to provide consumers with access to key 
        information about the ownership and servicing of their mortgage 
        loans;
            (6) the need to provide data accuracy, security, and 
        privacy;
            (7) existing State real property and commercial laws and 
        any such laws in development, including an electronic mortgage 
        registry law developed as a uniform State law proposal;
            (8) the costs and benefits of developing and maintaining a 
        national mortgage registry system, including any potential 
        impact on consumer mortgage credit and industry participants;
            (9) the feasibility of using existing industry standards 
        and capabilities in the operation of a national mortgage 
        registry system; and
            (10) any research, reports, or other work undertaken by 
        outside experts, including Federal and State entities.
    (e) Report.--Not later than 2 years after the date on which the 
working group is established under subsection (a), the working group 
shall issue a publicly available report, which shall--
            (1) include recommendations--
                    (A) as to whether the establishment of a national 
                electronic mortgage registry system is necessary or 
                appropriate in the public interest or for the 
                protection of the Mortgage Insurance Fund; and
                    (B) on how to establish, operate, and maintain a 
                national electronic mortgage registry system for 
                single-family mortgage loans and multifamily mortgage 
                loans; and
            (2) if the working group recommends that the establishment 
        of the national electronic mortgage registry system is 
        necessary or appropriate under paragraph (1), outline the 
        minimum requirements for such registry, which shall--
                    (A) include considerations for the development and 
                implementation of electronic mortgage registry systems 
                by State and local government agencies, including 
                requirements to ensure accurate reporting to such 
                systems; and
                    (B) satisfy the recommendations of this report.
    (f) Rulemaking.--
            (1) In general.--Beginning 5 years after publication of the 
        report under subsection (e), the Corporation may, by rule, 
        establish a national electronic mortgage registry system for 
        single-family mortgage loans and multifamily mortgage loans, 
        deeds of trust, or other security instruments in accordance 
        with the findings of the report if--
                    (A) the Corporation determines that electronic 
                mortgage registry systems have not been created by 
                State and local government agencies in accordance with 
                the minimum requirements established in the report; and
                    (B) the establishment of a national electronic 
                mortgage registry system for single-family mortgage 
                loans and multifamily mortgage loans remains necessary 
                or appropriate in the public interest or for the 
                protection of the Mortgage Insurance Fund.
            (2) Conflicting reports.--If the Corporation establishes a 
        national electronic mortgage registry system under paragraph 
        (1), the Corporation shall provide approved entities a 
        reasonable amount of time to correct a filing made in the 
        national electronic mortgage registry system established under 
        paragraph (1) that is in direct conflict with any filing in a 
        State or local real property recording system.
            (3) Authority to extend establishment of registries.--The 
        Corporation, in consultation with appropriate State and local 
        government agencies responsible for real property recordation, 
        may extend the period of time provided under paragraph (1) for 
        a single period of not more than 5 years if the Corporation 
        determines that the extension is necessary or appropriate.
            (4) Consultation and coordination with state and local 
        agencies.--To promote consistency in and minimize disruption to 
        the housing finance system and systems for the local recording 
        of mortgage loan documents, the Corporation shall consult and 
        coordinate with appropriate State and local government agencies 
        responsible for real property recordation when developing and 
        issuing rules under this subsection.
            (5) Requirements on rules.--The rules and standards 
        promulgated under this section shall recognize and protect 
        valid perfected security interests in registered mortgage-
        related documents.
    (g) Rules of Construction.--
            (1) Limitation on liability.--Nothing in this section shall 
        be construed as implying or establishing a private right of 
        action against an approved entity for filings made to a 
        national electronic mortgage registry system established under 
        subsection (f)(1) or other filing actions taken pursuant to 
        subsection (f).
            (2) Limitation on supervisory or enforcement authority.--
        Nothing in this section shall be construed as authorizing the 
        Corporation, before the establishment of a national electronic 
        mortgage registry system under subsection (f)(1), to exercise 
        supervisory or enforcement authority with respect to an 
        approved entity relating to a real property filing action in a 
        State or local real property recording system by the approved 
        entity.
            (3) Preemption.--Nothing in this section shall be construed 
        as preempting, altering, annulling, exempting, or affecting the 
        applicability of any State or local law, including those laws 
        relating to real property recording or foreclosure.

SEC. 334. MULTIPLE LENDER ISSUES.

    With respect to the dwelling of a borrower that serves as security 
for an eligible mortgage loan, if the borrower enters into any credit 
transaction that would result in the creation of a new mortgage loan or 
other credit lien on such dwelling where the loan-to-value ratio of 
such credit transaction amount is 80 percent or more, the creditor (as 
defined in section 1026.2(a)(17) of title 12 of the Code of Federal 
Regulations) shall notify the creditor of the senior eligible mortgage 
loan within 30 days after consummation of such transaction.

SEC. 335. REQUIRED HARMONIZATION OF STANDARDS WITHIN ELIGIBLE MORTGAGE 
              CRITERIA.

    (a) In General.--The Corporation shall consult and coordinate with 
the Bureau of Consumer Financial Protection to ensure that the minimum 
standards issued by the Corporation with respect to eligible single-
family mortgage loans pursuant to section 2(29) remain, to the greatest 
extent possible, substantially similar to rules promulgated by the 
Bureau pursuant to section 129C(b) of the Truth in Lending Act (15 
U.S.C. 1639c(b)) provided that any revisions to, or amendments of, such 
minimum standards issued by the Corporation--
            (1) conform to all of the other requirements set forth 
        under section 2(29); and
            (2) in the determination of the Corporation, do not 
        negatively impact the Mortgage Insurance Fund.
    (b) Annual Report on Any Changes or Differences in Rules.--The 
Corporation shall, on an annual basis, submit to the Chair and Ranking 
Member of the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Chair and Ranking Member of the Committee on Financial 
Services of the House of Representatives a report that--
            (1) describes any changes to the minimum standards 
        identified in subsection (a);
            (2) describes the economic analysis developed and used by 
        the Corporation for any changes described under paragraph (1) 
        in order to ensure such changes do not violate the duties of 
        the Corporation to protect the Mortgage Insurance Fund; and
            (3) identifies any changes that occurred and differences 
        that exist between the minimum standards developed, adopted, 
        and maintained by the Corporation and the rules promulgated by 
        the Bureau pursuant to section 129C(b) of the Truth in Lending 
        Act (15 U.S.C. 1639c(b)).

                   TITLE IV--FHFA AND FMIC TRANSITION

SEC. 401. DEFINITIONS.

    In this title--
            (1) the term ``Director'' means--
                    (A) during the period beginning on the date of 
                enactment of this Act and ending on the day before the 
                agency transfer date, the Director of the Existing 
                Agency; and
                    (B) on and after the agency transfer date, the 
                Director of the Federal Housing Finance Agency of the 
                Corporation appointed under section 402(a)(2);
            (2) the term ``Existing Agency'' means the Federal Housing 
        Finance Agency, as constituted on the day before the agency 
        transfer date;
            (3) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program;
            (4) the term ``regulated entity'' has the same meaning as 
        in section 1303(20) of the Safety and Soundness Act (12 U.S.C. 
        4502(20)); and
            (5) the term ``Transition Committee'' means the Federal 
        Mortgage Insurance Corporation Transition Committee established 
        under section 404(a)(1).

SEC. 402. FHFA TRANSITION.

    (a) Establishment.--
            (1) In general.--Effective on the agency transfer date, 
        there is established in the Corporation the Federal Housing 
        Finance Agency, which shall be maintained as a distinct entity 
        within the Corporation.
            (2) Director.--The Federal Housing Finance Agency shall be 
        headed by a Director, who shall be--
                    (A) appointed by the President, by and with the 
                advice and consent of the Senate; and
                    (B) a non-voting member of the Board of Directors.
    (b) Federal Housing Finance Agency Transfer.--
            (1) Transfer of property and functions.--Effective on the 
        agency transfer date and unless otherwise specified by this 
        Act, all property and functions of the Federal Housing Finance 
        Agency are transferred to the Federal Housing Finance Agency of 
        the Corporation.
            (2) Incumbent director.--The individual serving as the 
        Director of the Existing Agency on the day before the agency 
        transfer date may serve as the Director of the Federal Housing 
        Finance Agency of the Corporation until the end of the term of 
        such individual as Director of the Existing Agency under 
        section 1312(b)(2) of the Safety and Soundness Act (12 U.S.C. 
        4512(b)(2)), as in effect on the day before the agency transfer 
        date.
            (3) Transition chairperson.--
                    (A) In general.--During the period beginning on the 
                agency transfer date and ending on the date on which 
                the first individual is appointed as Chairperson under 
                section 202, the Director shall serve as the Transition 
                Chairperson of the Corporation and, except as provided 
                in subparagraph (B), shall exercise all authorities of 
                the Chairperson, unless stated otherwise.
                    (B) Limitation on authority.--In serving as the 
                Transition Chairperson of the Corporation pursuant to 
                subparagraph (A), the Director shall not have the 
                authority to establish any rule under section 2 or any 
                rule relating to approved entities under title III.
    (c) Powers and Duties.--
            (1) In general.--The Director of the Federal Housing 
        Finance Agency of the Corporation shall--
                    (A) retain and exercise all powers, including 
                conservatorship and receivership powers, as amended by 
                this Act, of the Director of the Existing Agency on the 
                day before the agency transfer date relating to the 
                Federal Home Loan Bank System, the Federal Home Loan 
                Banks, and the enterprises;
                    (B) manage and implement actions authorized by the 
                Corporation related to the transition to the new 
                housing finance system that impact the conservatorship 
                or receivership of regulated entities; and
                    (C) consult with other members of the Transition 
                Committee and the Board of Directors as may be 
                appropriate to fulfill the requirements of this Act.
            (2) Autonomy of fhfa.--Except as provided in section 
        604(a)(2), or as otherwise specifically provided in this Act, 
        the Chairperson and the Board of Directors may not--
                    (A) intervene in any matter or proceeding before 
                the Director, unless otherwise specifically provided by 
                law;
                    (B) appoint, direct, or remove any officer or 
                employee of the Federal Housing Finance Agency of the 
                Corporation; or
                    (C) merge or consolidate the Federal Housing 
                Finance Agency of the Corporation, or any of the 
                functions or responsibilities of the Federal Housing 
                Finance Agency of the Corporation, with any division, 
                office, or other component of the Corporation.
    (d) Agency Expenditures and Budget.--
            (1) In general.--After the agency transfer date, the 
        Director of the Federal Housing Finance Agency of the 
        Corporation--
                    (A) except as provided in paragraph (2), may 
                obligate and expend amounts available to the Federal 
                Housing Finance Agency; and
                    (B) shall submit regular updates to the Board of 
                Directors.
            (2) Limitation on amount.--
                    (A) Before chairperson appointed.--During the 
                period beginning on the agency transfer date and ending 
                on the date on which the first individual is appointed 
                as Chairperson under section 202, the Director shall 
                require approval from the Transition Committee for any 
                agency capital expenditure in excess of $5,000,000.
                    (B) Chairperson appointed.--On and after the date 
                on which the first individual is appointed as 
                Chairperson under section 202, the Director shall 
                require approval from the Board of Directors for any 
                agency capital expenditure in excess of $5,000,0000.
    (e) Cooperation.--During the period beginning on the date of 
enactment of this Act and ending on the system certification date, the 
Board of Directors and the Director shall cooperate and coordinate in 
the exercise of their respective authorities to facilitate and achieve 
an orderly transition from housing finance markets facilitated by the 
enterprises to housing finance markets facilitated by the Corporation 
with minimum disruption in the availability of mortgage credit.
    (f) Coordination and Continuation of Certain Actions.--
            (1) In general.--All regulations, orders, determinations, 
        and resolutions described in paragraph (2) shall remain in 
        effect according to the terms of such regulations, orders, 
        determinations, and resolutions, and shall be enforceable by or 
        against the Federal Housing Finance Agency of the Corporation 
        until modified, terminated, set aside, or superseded in 
        accordance with applicable law by the Federal Housing Finance 
        Agency of the Corporation, any court of competent jurisdiction, 
        or operation of law.
            (2) Applicability.--A regulation, order, determination, or 
        resolution is described in this paragraph if it--
                    (A) was issued, made, prescribed, or allowed to 
                become effective by--
                            (i) the Existing Agency;
                            (ii) the Federal Housing Finance Board; or
                            (iii) a court of competent jurisdiction, 
                        and relates to functions transferred by this 
                        section;
                    (B) relates to the performance of functions that 
                are transferred by this section; and
                    (C) is in effect on the agency transfer date.
    (g) Use of Agency Services.--Any agency, department, or other 
instrumentality of the United States, and any successor to any such 
agency, department, or instrumentality, which was providing supporting 
services to the Existing Agency before the agency transfer date in 
connection with functions that are transferred to the Federal Housing 
Finance Agency of the Corporation shall--
            (1) continue to provide such services, on a reimbursable 
        basis, until the transfer of such functions is complete; and
            (2) consult with any such agency to coordinate and 
        facilitate a prompt and reasonable transition.
    (h) Savings Provisions.--
            (1) Existing rights, duties, and obligations not 
        affected.--Subsection (a) shall not affect the validity of any 
        right, duty, or obligation of the United States, the Director 
        of the Existing Agency, or any other person, which--
                    (A) arises under--
                            (i) the Safety and Soundness Act;
                            (ii) the Federal National Mortgage 
                        Association Charter Act;
                            (iii) the Federal Home Loan Mortgage 
                        Corporation Act; or
                            (iv) any other provision of law applicable 
                        with respect to the Existing Agency; and
                    (B) existed on the day before the agency transfer 
                date.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Director of the Existing Agency in 
        connection with functions that are transferred to the Federal 
        Housing Finance Agency of the Corporation shall abate by reason 
        of the enactment of this Act, except that the Director of the 
        Federal Housing Finance Agency of the Corporation shall be 
        substituted for the Director of the Existing Agency as a party 
        to any such action or proceeding.
    (i) Technical and Conforming Amendments.--
            (1) Federal housing enterprises financial safety and 
        soundness act of 1992.--The Safety and Soundness Act (12 U.S.C. 
        4501 et seq.) is amended--
                    (A) in section 1303--
                            (i) in paragraph (2), by striking ``Federal 
                        Housing Finance Agency established under 
                        section 1311'' and inserting ``the Federal 
                        Housing Finance Agency within the Federal 
                        Mortgage Insurance Corporation established 
                        under section 402(a)(1) of the Housing Finance 
                        Reform and Taxpayer Protection Act of 2014''; 
                        and
                            (ii) in paragraph (9), by striking 
                        ``Federal Housing Finance Agency'' and 
                        inserting ``Agency'';
                    (B) in section 1311(a), by striking ``established'' 
                and all that follows through ``Government'' and 
                inserting ``established in the Federal Mortgage 
                Insurance Corporation, the Federal Housing Finance 
                Agency, which shall be maintained as a distinct entity 
                within the Federal Mortgage Insurance Corporation'';
                    (C) in section 1312--
                            (i) in subsection (a)--
                                    (I) in the heading, by striking 
                                ``Establishment of Position'' and 
                                inserting ``Director''; and
                                    (II) by striking, ``established the 
                                position of''; and
                            (ii) in subsection (b)(1), by striking ``by 
                        the President'' and all that follows through 
                        ``housing finance'' and inserting ``in 
                        accordance with section 402(a)(2) of the 
                        Housing Finance Reform and Taxpayer Protection 
                        Act of 2014''; and
                    (D) in section 1367--
                            (i) in subsection (a)(7), by striking 
                        ``When acting'' and inserting ``Except as may 
                        be provided in section 604(a)(2) of the Housing 
                        Finance Reform and Taxpayer Protection Act of 
                        2014, or as otherwise specifically provided for 
                        in such Act, when acting''; and
                            (ii) by amending subsection (b)(2)(D) to 
                        read as follows:
                    ``(D) Power as conservator.--
                            ``(i) Enterprises.--On and after the agency 
                        transfer date, as that term is defined in 
                        section 2 of the Housing Finance Reform and 
                        Taxpayer Protection Act of 2014, the Agency 
                        shall, as conservator, take such actions as are 
                        necessary--
                                    ``(I) to wind down the operations 
                                of the enterprises in an orderly manner 
                                that complies with the requirements of 
                                such Act;
                                    ``(II) to manage the affairs, 
                                assets, and obligations of the 
                                enterprises and to operate the 
                                enterprises in compliance with the 
                                requirements of such Act;
                                    ``(III) to undertake and carry out 
                                any sale, transfer, or disposition 
                                authorized in sections 315(c), 321(d), 
                                604(i)(2), 701(b), or 702 of such Act 
                                in order to facilitate the orderly 
                                transition to the new housing finance 
                                system authorized by such Act; and
                                    ``(IV) to maintain liquidity and 
                                stability in the secondary mortgage 
                                market until such time as the 
                                enterprises shall have no authority to 
                                conduct new business, pursuant to title 
                                VI of such Act.
                            ``(ii) Federal home loan banks.--The 
                        Corporation may, as conservator, take such 
                        actions as are--
                                    ``(I) necessary to put a Federal 
                                Home Loan Bank in a sound and solvent 
                                condition; and
                                    ``(II) appropriate to carry on the 
                                business of a Federal Home Loan Bank 
                                and preserve and conserve the assets 
                                and property of the Federal Home Loan 
                                Bank.''.
            (2) Federal home loan bank act.--The Federal Home Loan Bank 
        Act (12 U.S.C. 1421 et seq.) is amended--
                    (A) by striking ``Chairman of the Director of 
                Governors'' each place that term appears and inserting 
                ``Chairman of the Board of Governors''; and
                    (B) in section 2--
                            (i) in paragraph (11), by striking 
                        ``Federal Housing Finance Agency'' and 
                        inserting ``Agency''; and
                            (ii) in paragraph (12), by striking ``the 
                        Federal Housing Finance Agency'' and all that 
                        follows through the period at the end and 
                        inserting ``the Federal Housing Finance Agency 
                        within the Federal Mortgage Insurance 
                        Corporation established under section 402(a)(1) 
                        of the Housing Finance Reform and Taxpayer 
                        Protection Act of 2014''.
            (3) Federal deposit insurance act.--The Federal Deposit 
        Insurance Act (12 U.S.C. 1811 et seq.) is amended--
                    (A) in section 11(t)(2)(A), by inserting after 
                clause (vii) the following:
                            ``(viii) The Federal Mortgage Insurance 
                        Corporation.''; and
                    (B) in section 18(x)--
                            (i) by inserting ``the Federal Mortgage 
                        Insurance Corporation,'' before ``any Federal 
                        banking agency'' each place that term appears; 
                        and
                            (ii) by inserting ``Corporation,'' after 
                        ``such Bureau,'' each place that term appears.
            (4) Federal financial institutions examination council act 
        of 1978.--The Federal Financial Institutions Examination 
        Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended--
                    (A) in section 1004(a)--
                            (i) by redesignating paragraphs (5) and (6) 
                        as paragraphs (6) and (7), respectively; and
                            (ii) by inserting after paragraph (4) the 
                        following:
            ``(5) the Chairman of the Federal Mortgage Insurance 
        Corporation,'';
                    (B) in section 1011, in first sentence, by 
                inserting ``Federal Mortgage Insurance Corporation,'' 
                after ``Financial Protection,''; and
                    (C) by inserting at the end the following:

``SEC. 1012. ESTABLISHMENT OF THE SUBCOMMITTEE ON MORTGAGE SERVICING.

    ``There shall be within the Council a subcommittee to be known as 
the `Subcommittee on Mortgage Servicing', which shall consist of 
designees of heads of the Federal financial institution regulatory 
agencies, the Bureau of Consumer Financial Protection, the Federal 
Mortgage Insurance Corporation, the Federal Housing Finance Agency, and 
a representative of the State Liaison Committee established under 
section 1007.''.
            (5) FIRREA.--Section 1216 of the Financial Institutions 
        Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1833e) 
        is amended--
                    (A) in subsection (a), by striking ``Federal 
                Housing Finance Agency'' and inserting ``Federal 
                Mortgage Insurance Corporation''; and
                    (B) in subsection (c), by striking ``Federal 
                Housing Finance Agency'' and inserting ``Federal 
                Mortgage Insurance Corporation''.
            (6) Housing and urban-rural recovery act of 1983.--The 
        first sentence of section 469 of the Housing and Urban-Rural 
        Recovery Act of 1983 (12 U.S.C. 1701p-1) is amended by 
        inserting ``the Federal Mortgage Insurance Corporation,'' after 
        ``cooperation of''.
            (7) Paperwork reduction act.--Section 3502(5) of title 44, 
        United States Code (commonly known as the ``Paperwork Reduction 
        Act''), is amended by striking ``Federal Housing Finance 
        Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''.
            (8) Public law 93-495.--Section 111 of Public Law 93-495 
        (12 U.S.C. 250) is amended by inserting ``the Federal Mortgage 
        Insurance Corporation,'' after ``Federal Housing Finance 
        Agency,''.
            (9) Right to financial privacy act of 1978.--Section 
        1101(7) of the Right to Financial Privacy Act of 1978 (12 
        U.S.C. 3401(7)) is amended--
                    (A) in subparagraph (H), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in subparagraph (I), by striking ``; and'' and 
                inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(J) the Federal Mortgage Insurance Corporation; 
                and''.
            (10) Title 5, united states code.--Title 5, United States 
        Code, is amended--
                    (A) in section 5313, by inserting the following new 
                item:
            ``Chairperson of the Federal Mortgage Insurance 
        Corporation.''; and
                    (B) in section 3132(a)(1)(D)--
                            (i) by striking ``Supervision,,'' and 
                        inserting ``Supervision,''; and
                            (ii) by inserting the ``Federal Mortgage 
                        Insurance Corporation,'' after ``Federal 
                        Housing Finance Agency,''.
            (11) Title 18, united states code.--Title 18, United States 
        Code, is amended by striking ``Federal Housing Finance Agency'' 
        each place such term appears in each of sections 212, 657, 
        1006, 1014, and 1905 and inserting ``Federal Mortgage Insurance 
        Corporation''.
            (12) Federal credit union act.--Section 107(7)(E) of the 
        Federal Credit Union Act (12 U.S.C. 1757(7)(E)) is amended by 
        inserting ``the Federal Mortgage Insurance Corporation,'' 
        before ``the Federal National Mortgage Association''.
            (13) Bank holding company act.--Section 5(c)(5)(B) of the 
        Bank Holding Company Act (12 U.S.C. 1844(c)(5)(B)) is amended--
                    (A) in clause (iv), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in clause (v), by striking the period at the 
                end and insert ``; or''; and
                    (C) by adding at the end the following:
                            ``(vi) an approved guarantor approved under 
                        section 311 of the Housing Finance Reform and 
                        Taxpayer Protection Act of 2014.''.
            (14) Congressional budget act of 1974.--Section 504(c) of 
        the Congressional Budget Act of 1974 (2 U.S.C. 661c(c)) is 
        amended--
                    (A) in paragraph (1), by striking ``or'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following:
            ``(2) are credit programs of the Federal Mortgage Insurance 
        Corporation; or''.
            (15) Effective date.--The amendments made by this 
        subsection shall take effect on the agency transfer date.

SEC. 403. TRANSFER AND RIGHTS OF EMPLOYEES OF THE FHFA.

    (a) Transfer.--
            (1) In general.--Effective on the agency transfer date, 
        each employee of the Existing Agency, including each employee 
        of the Office of the Inspector General of the Existing Agency, 
        who is in good standing, shall be transferred to the 
        Corporation for employment, and such transfer shall be deemed a 
        transfer of function for purposes of section 3503 of title 5, 
        United States Code.
            (2) Assignment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an employee transferred under paragraph (1) shall 
                be appointed to a position in the Federal Housing 
                Finance Agency of the Corporation.
                    (B) Exception.--On and after the agency transfer 
                date, the Chairperson, in consultation with the 
                Director of the Federal Housing Finance Agency of the 
                Corporation, may reassign an employee transferred under 
                paragraph (1) to a component of the Corporation other 
                than the Federal Housing Finance Agency of the 
                Corporation, if the reassignment is in the best 
                interest of the Corporation.
    (b) Guaranteed Positions.--
            (1) In general.--Each employee transferred under subsection 
        (a) shall be guaranteed a position with the same status, 
        tenure, grade, and pay as that held on the day immediately 
        preceding the transfer.
            (2) No involuntary separation or reduction.--An employee 
        transferred under subsection (a) holding a permanent position 
        on the day immediately preceding the transfer may not be 
        involuntarily separated or reduced in grade or compensation 
        during the 12-month period beginning on the date of transfer, 
        except for cause, or, in the case of a temporary employee, 
        separated in accordance with the terms of the appointment of 
        the employee.
    (c) Appointment Authority for Excepted and Senior Executive Service 
Employees.--
            (1) In general.--In the case of an employee occupying a 
        position in the excepted service or the Senior Executive 
        Service, any appointment authority established under law or by 
        regulations of the Office of Personnel Management for filling 
        such position shall be transferred, subject to paragraph (2).
            (2) Decline of transfer.--The Corporation may decline a 
        transfer of authority under paragraph (1), to the extent that 
        such authority relates to--
                    (A) a position excepted from the competitive 
                service because of its confidential, policymaking, 
                policy-determining, or policy-advocating character; or
                    (B) a noncareer appointee in the Senior Executive 
                Service (within the meaning of section 3132(a)(7) of 
                title 5, United States Code).
    (d) Employee Benefit Programs.--
            (1) In general.--Any employee of the Existing Agency 
        accepting employment with the Corporation as a result of a 
        transfer under subsection (a) may retain, for 12 months after 
        the date on which such transfer occurs, membership in any 
        employee benefit program of the Existing Agency or the 
        Corporation, as applicable, including insurance, to which such 
        employee belongs on the date of the transfer under subsection 
        (a), if--
                    (A) the employee does not elect to give up the 
                benefit or membership in the program; and
                    (B) the benefit or program is continued by the 
                Corporation.
            (2) Cost differential.--
                    (A) In general.--The difference in the costs 
                between the benefits which would have been provided by 
                the Existing Agency and those provided by this section 
                shall be paid by the Corporation.
                    (B) Health insurance.--If any employee elects to 
                give up membership in a health insurance program or the 
                health insurance program is not continued by the 
                Corporation, the employee shall be permitted to select 
                an alternate Federal health insurance program not later 
                than 30 days after the date of such election or notice, 
                without regard to any other regularly scheduled open 
                season.
    (e) Enterprise Employees.--To ensure an orderly transition to the 
new housing finance system established under this Act and to facilitate 
the organization, formation, and competency of the Corporation, the 
Corporation may hire employees from the enterprises.
    (f) Reorganization.--If the Corporation determines that a 
reorganization of the workforce is required, the reorganization shall 
be deemed a major reorganization for purposes of affording affected 
employee retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 
5, United States Code.

SEC. 404. TRANSITION COMMITTEE.

    (a) Establishment and Purpose.--
            (1) In general.--Effective on the date of enactment of this 
        Act, there is established the Federal Mortgage Insurance 
        Corporation Transition Committee.
            (2) Purpose.--The purpose of the Transition Committee shall 
        be to--
                    (A) develop a plan to facilitate an orderly 
                transition to a new housing finance system in 
                accordance with this Act; and
                    (B) provide advice to the Transition Chairperson or 
                the Board when consulted.
    (b) Composition.--
            (1) Members.--The Transition Committee shall be comprised 
        of--
                    (A) the Director;
                    (B) the Chairman of the Federal Deposit Insurance 
                Corporation;
                    (C) the Comptroller of the Currency;
                    (D) the Chairperson; and
                    (E) any member of the Board of Directors.
            (2) Chairperson.--
                    (A) Before chairperson of corporation.--Until the 
                date on which the first individual is appointed as 
                Chairperson under section 202, the Director shall serve 
                as the Chairperson of the Transition Committee.
                    (B) Chairperson of corporation appointed.--On and 
                after the date on which the first individual is 
                appointed as Chairperson under section 202, the 
                Chairperson shall serve as the Chairperson of the 
                Transition Committee.
            (3) Acting officials may serve.--In the event of a vacancy 
        in the office of the head of a member agency, and pending the 
        appointment of a successor, or during the absence or disability 
        of the head of a member agency, the acting head of the member 
        agency shall serve as a member of the Transition Committee in 
        the place of that agency head.
            (4) Staff.--As necessary to carry out the duties of the 
        Transition Committee, the Chairperson of the Transition 
        Committee may--
                    (A) before the agency transfer date, use employees 
                of the Existing Agency; and
                    (B) on and after the agency transfer date, use 
                employees of the Corporation.
    (c) Transition Plan.--
            (1) Development.--The Transition Committee shall develop 
        the transition plan required by section 602.
            (2) Approval.--The transition plan may not be submitted to 
        Congress under section 602, unless it is approved by a majority 
        of the Transition Committee.
    (d) Dissolution.--The Transition Committee shall be dissolved upon 
the later of--
            (1) the date on which the first individual is appointed as 
        Chairperson under section 202; or
            (2) the date on which the transition plan is submitted to 
        Congress in accordance with subsection (c)(2) and section 602.

SEC. 405. TRANSITION ASSESSMENTS.

    (a) In General.--Section 1316 of the Safety and Soundness Act (12 
U.S.C. 4516) is amended by adding at the end the following:
    ``(i) Annual Assessments Relating to Initial Funding of the FMIC.--
Notwithstanding title VI of the Housing Finance Reform and Taxpayer 
Protection Act of 2014 or any other provision of law, for the period 
beginning on the date of enactment of this subsection and ending on the 
system certification date (as that date is set forth under title VI of 
the Housing Finance Reform and Taxpayer Protection Act of 2014), the 
Agency shall establish and collect from the enterprises annual 
assessments in addition to those required under subsection (a) in an 
amount not exceeding the amount sufficient to provide for the 
reasonable costs (including administrative costs) and expenses of the 
Federal Mortgage Insurance Corporation, including those purposes 
detailed in section 303(e)(6) of the Housing Finance Reform and 
Taxpayer Protection Act of 2014. All amounts collected under this 
subsection shall be transferred to the Federal Mortgage Insurance 
Corporation. The annual assessment shall be payable semiannually for 
each fiscal year, on October 1 and April 1.''.
    (b) Treatment of Assessments.--
            (1) Deposit.--
                    (A) Amounts received by the corporation.--Amounts 
                received by the Corporation from assessments imposed 
                under section 1316(i) of the Safety and Soundness Act 
                shall be deposited by the Corporation in the Mortgage 
                Insurance Fund.
                    (B) Amounts received by the existing agency.--
                Amounts received by the Existing Agency beginning on 
                the date of enactment of this Act until the agency 
                transfer date from assessments imposed under section 
                1316(i) of the Safety and Soundness Act shall be held 
                in an account of the Existing Agency and shall be 
                transferred to the Corporation on the agency transfer 
                date for deposit in the Mortgage Insurance Fund in 
                accordance with subparagraph (A).
                    (C) Exemption from apportionment.--Notwithstanding 
                any other provision of law, amounts received by the 
                Corporation from any assessment imposed under section 
                1316(i) of the Safety and Soundness Act shall not be 
                subject to apportionment for the purposes of chapter 15 
                of title 31, United States Code, or under any other 
                authority.
                    (D) Rule of construction.--Amounts received by the 
                Corporation from any assessment imposed under section 
                1316(i) of the Safety and Soundness Act shall not be 
                construed to be Government or public funds or 
                appropriated money.
            (2) Use of funds.--
                    (A) In general.--The Existing Agency shall use 
                amounts received from assessments imposed under section 
                1316(i) of the Safety and Soundness Act solely for the 
                purpose of funding the Mortgage Insurance Fund on the 
                agency transfer date.
                    (B) Treasury investments.--The Existing Agency may 
                request the Secretary of the Treasury to invest the 
                amounts received from assessments imposed under section 
                1316(i) of the Safety and Soundness Act.
                    (C) Government obligations.--Pursuant to a request 
                under subparagraph (B), the Secretary of the Treasury 
                shall invest such amounts in Federal Government 
                obligations--
                            (i) guaranteed as to principal and interest 
                        by the United States with maturities suitable 
                        to the needs of the Existing Agency; and
                            (ii) bearing interest at a rate determined 
                        by the Secretary of the Treasury, taking into 
                        consideration current market yields on 
                        outstanding marketable obligations of the 
                        United States of comparable maturity.

SEC. 406. TRANSFER OF POWERS AND DUTIES ON THE SYSTEM CERTIFICATION 
              DATE; CONTINUATION AND COORDINATION OF CERTAIN ACTIONS.

    (a) Transfer of Functions.--Effective on the system certification 
date and except as provided in section 332(a), there are transferred to 
the Corporation all functions of the Federal Housing Finance Agency of 
the Corporation and the Director thereof.
    (b) Coordination and Continuation of Certain Actions.--
            (1) In general.--All regulations, orders, determinations, 
        and resolutions described in paragraph (2) shall remain in 
        effect according to the terms of such regulations, orders, 
        determinations, and resolutions, and shall be enforceable by or 
        against the Corporation until modified, terminated, set aside, 
        or superseded in accordance with applicable law by the 
        Corporation, any court of competent jurisdiction, or operation 
        of law.
            (2) Applicability.--A regulation, order, determination, or 
        resolution is described in this paragraph if it--
                    (A) was issued, made, prescribed, or allowed to 
                become effective by--
                            (i) the Existing Agency;
                            (ii) the Federal Housing Finance Agency of 
                        the Corporation;
                            (iii) the Federal Housing Finance Board; or
                            (iv) a court of competent jurisdiction;
                    (B) relates to the performance of functions that 
                are transferred by subsection (a); and
                    (C) is in effect on the effective date of the 
                transfer under subsection (a).
    (c) Use of Agency Services.--Any agency, department, or other 
instrumentality of the United States, and any successor to any such 
agency, department, or instrumentality, which was providing supporting 
services to the Federal Housing Finance Agency of the Corporation 
before the system certification date in connection with functions that 
are transferred to the Corporation under subsection (a) shall--
            (1) continue to provide such services, on a reimbursable 
        basis, until the transfer of such functions is complete; and
            (2) consult with any such agency to coordinate and 
        facilitate a prompt and reasonable transition.
    (d) Savings Provisions.--
            (1) Existing rights, duties, and obligations not 
        affected.--Subsection (a) shall not affect the validity of any 
        right, duty, or obligation of the United States, the Director 
        of the Federal Housing Finance Agency of the Corporation, or 
        any other person, which--
                    (A) arises under--
                            (i) the Safety and Soundness Act;
                            (ii) the Federal National Mortgage 
                        Association Charter Act;
                            (iii) the Federal Home Loan Mortgage 
                        Corporation Act; or
                            (iv) any other provision of law applicable 
                        with respect to the Federal Housing Finance 
                        Agency; and
                    (B) existed on the day before the system 
                certification date.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Director of the Federal Housing 
        Finance Agency of the Corporation in connection with functions 
        that are transferred to the Corporation under subsection (a) 
        shall abate by reason of the enactment of this Act, except that 
        the Corporation shall be substituted for the Director of the 
        Federal Housing Finance Agency of the Corporation as a party to 
        any such action or proceeding.

SEC. 407. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO ABOLISHMENT 
              OF FHFA.

    (a) Effective Date.--The amendments made by this section shall take 
effect on the system certification date.
    (b) Access to Local TV Act of 2000.--Section 1004(d)(2)(D)(iii) of 
the Launching Our Communities' Access to Local Television Act of 2000 
(47 U.S.C. 1103(d)(2)(D)(iii)) is amended by striking ``Federal Housing 
Finance Agency'' and inserting ``Federal Mortgage Insurance 
Corporation''.
    (c) Commodity Exchange Act.--Section 1a(39)(E) of the Commodity 
Exchange Act (7 U.S.C. 1a(39)(E)) is amended by striking ``Federal 
Housing Finance Agency'' and inserting ``Federal Mortgage Insurance 
Corporation''.
    (d) Emergency Economic Stabilization Act of 2008.--The Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 5201 note) is amended--
            (1) in section 104(b)(3), by striking ``the Director of the 
        Federal Housing Finance Agency'' and inserting ``the 
        Chairperson of the Federal Mortgage Insurance Corporation'';
            (2) in section 109(b), by striking ``Federal Housing 
        Finance Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''; and
            (3) in section 110(a)(1)(A), by striking ``Federal Housing 
        Finance Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''.
    (e) Federal National Mortgage Association Charter Act.--The Federal 
National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.) is 
amended--
            (1) in section 303(c)(2), by striking ``Director of the 
        Federal Housing Finance Agency'' and inserting ``Chairperson of 
        the Federal Mortgage Insurance Corporation''; and
            (2) in section 309--
                    (A) in subsection (d)(3)(B)--
                            (i) by striking ``Federal Housing Finance 
                        Agency'' and inserting ``Federal Mortgage 
                        Insurance Corporation''; and
                            (ii) by striking ``Director'' each place 
                        that term appears and inserting 
                        ``Chairperson'';
                    (B) in subsection (k)(1), by striking ``Director of 
                the Federal Housing Finance Agency'' and inserting 
                ``Chairperson of the Federal Mortgage Insurance 
                Corporation'';
                    (C) in subsection (m)--
                            (i) in paragraph (1), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Chairperson of the 
                        Federal Mortgage Insurance Corporation''; and
                            (ii) in paragraph (2)--
                                    (I) by striking ``Federal Housing 
                                Finance Agency'' and inserting 
                                ``Federal Mortgage Insurance 
                                Corporation''; and
                                    (II) by striking ``Director'' each 
                                place that term appears and inserting 
                                ``Chairperson''; and
                    (D) in subsection (n)--
                            (i) in paragraph (1), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Chairperson of the 
                        Federal Mortgage Insurance Corporation'';
                            (ii) in paragraph (2)(L), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Chairperson of the 
                        Federal Mortgage Insurance Corporation''; and
                            (iii) in paragraph (3)(B), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Chairperson of the 
                        Federal Mortgage Insurance Corporation''.
    (f) Federal Deposit Insurance Act.--The Federal Deposit Insurance 
Act (12 U.S.C. 1811 et seq.) is amended--
            (1) in section 7(a)(2)(A), by striking ``Federal Housing 
        Finance Agency'' each place that term appears and inserting 
        ``Federal Mortgage Insurance Corporation'';
            (2) in section 8(e)(7)(A)(vi), by striking ``Federal 
        Housing Finance Agency'' each place that term appears and 
        inserting ``Federal Mortgage Insurance Corporation''; and
            (3) in section 33(e), by striking ``Federal Housing Finance 
        Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''.
    (g) Federal Financial Institutions Examination Council Act of 
1978.--The first sentence of section 1011 of the Federal Financial 
Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is 
amended by striking ``and the Federal Housing Finance Agency''.
    (h) Federal Home Loan Bank Act.--The Federal Home Loan Bank Act (12 
U.S.C. 1421 et seq.) is amended--
            (1) in section 2--
                    (A) in paragraph (11), as previously amended by 
                section 402(i), by striking ``Agency'' and inserting 
                ``Chairperson of the Federal Mortgage Insurance 
                Corporation''; and
                    (B) in paragraph (12), as previously amended by 
                section 402(i), by striking ``the Federal Housing 
                Finance Agency within the Federal Mortgage Insurance 
                Corporation established under section 402(a)(1) of the 
                Housing Finance Reform and Taxpayer Protection Act of 
                2014'' and inserting ``Federal Mortgage Insurance 
                Corporation established under section 201 of the 
                Housing Finance Reform and Taxpayer Protection Act of 
                2014'';
            (2) in section 10(a)(3)(B), by inserting ``, subject to 
        such regulations that the Federal Mortgage Insurance 
        Corporation may issue to ensure the safety and soundness of the 
        Federal Home Loan Banks, covered securities insured by the 
        Federal Mortgage Insurance Corporation under the Housing 
        Finance Reform and Taxpayer Protection Act of 2014'' after 
        ``Government National Mortgage Association''; and
            (3) in section 11(h), by inserting ``, subject to such 
        regulations that the Federal Mortgage Insurance Corporation may 
        issue to ensure the safety and soundness of the Federal Home 
        Loan Banks, covered securities insured by the Federal Mortgage 
        Insurance Corporation under the Housing Finance Reform and 
        Taxpayer Protection Act of 2014'' after ``Federal Home Loan 
        Mortgage Corporation pursuant to section 305 or section 306 of 
        the Federal Home Loan Mortgage Corporation Act''.
    (i) Federal Home Loan Mortgage Corporation Act.--The Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.) is amended--
            (1) in section 303--
                    (A) in subsection (b)(2), by striking ``Director of 
                the Federal Housing Finance Agency'' and inserting 
                ``Chairperson of the Federal Mortgage Insurance 
                Corporation''; and
                    (B) in subsection (h)--
                            (i) in paragraph (2)--
                                    (I) by striking ``Federal Housing 
                                Finance Agency'' and inserting 
                                ``Federal Mortgage Insurance 
                                Corporation''; and
                                    (II) by striking ``Director'' each 
                                place that term appears and inserting 
                                ``Chairperson;'' and
                            (ii) in paragraph (4), by striking 
                        ``Director'' and inserting ``Chairperson'';
            (2) in section 305(a)(2), by striking ``Director of the 
        Federal Housing Finance Agency'' and inserting ``Chairperson of 
        the Federal Mortgage Insurance Corporation''; and
            (3) in section 307--
                    (A) in subsection (c)(1), by striking ``Federal 
                Housing Finance Agency'' and inserting ``Federal 
                Mortgage Insurance Corporation'';
                    (B) in subsection (e)--
                            (i) in paragraph (1)--
                                    (I) by striking ``Federal Housing 
                                Finance Agency'' and inserting 
                                ``Federal Mortgage Insurance 
                                Corporation''; and
                                    (II) by striking ``Director'' each 
                                place that term appears and inserting 
                                ``Chairperson''; and
                            (ii) in paragraph (2)--
                                    (I) by striking ``Federal Housing 
                                Finance Agency'' and inserting 
                                ``Federal Mortgage Insurance 
                                Corporation''; and
                                    (II) by striking ``Director'' each 
                                place that term appears and inserting 
                                ``Chairperson''; and
                    (C) in subsection (f)--
                            (i) in paragraph (1), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Chairperson of the 
                        Federal Mortgage Insurance Corporation'';
                            (ii) in paragraph (2), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' each place that term appears and 
                        inserting ``Chairperson of the Federal Mortgage 
                        Insurance Corporation''; and
                            (iii) in paragraph (3)(B), by striking 
                        ``Director of the Federal Housing Finance 
                        Agency'' and inserting ``Chairperson of the 
                        Federal Mortgage Insurance Corporation''.
    (j) Federal Housing Enterprises Financial Safety and Soundness Act 
of 1992.--The Safety and Soundness Act (12 U.S.C. 4501 et seq.) is 
amended--
            (1) in section 1303--
                    (A) in paragraph (2), as previously amended by 
                section 402(i), by striking ``the Federal Housing 
                Finance Agency within the Federal Mortgage Insurance 
                Corporation established under section 402(a)(1) of the 
                Housing Finance Reform and Taxpayer Protection Act of 
                2014'' and inserting ``Federal Mortgage Insurance 
                Corporation established under section 201 of the 
                Housing Finance Reform and Taxpayer Protection Act of 
                2014'';
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) [Reserved.]''; and
                    (C) in paragraph (9), as previously amended by 
                section 402(i), by striking ``Agency'' and inserting 
                ``Chairperson of the Federal Mortgage Insurance 
                Corporation'';
            (2) by repealing section 1313A;
            (3) in section 1317--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) through (i) as 
                subsections (d) through (h), respectively; and
            (4) in section 1367--
                    (A) in subsection (a), in the heading, by striking 
                ``Agency'' and inserting ``Corporation''; and
                    (B) in subsection (b), in the heading to paragraph 
                (9)(B), as so redesignated, by striking ``Agency'' and 
                inserting ``Corporation''.
    (k) Financial Institutions Reform, Recovery, and Enhancement Act of 
1989.--The Financial Institutions Reform, Recovery, and Enhancement Act 
of 1989 (Public Law 101-73; 103 Stat. 183) is amended--
            (1) in section 402(e), by striking ``Federal Housing 
        Finance Agency'' each place that term appears and inserting 
        ``Federal Mortgage Insurance Corporation'';
            (2) in section 1124, by striking ``Federal Housing Finance 
        Agency'' each place that term appears and inserting ``Federal 
        Mortgage Insurance Corporation''; and
            (3) in section 1125(b), by striking ``Federal Housing 
        Finance Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''.
    (l) Flood Disaster Protection Act of 1973.--Section 102(f)(3)(A) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(3)(A)) is 
amended by striking ``Director of the Federal Housing Finance Agency'' 
and inserting ``Chairperson of the Federal Mortgage Insurance 
Corporation''.
    (m) Housing Economic Recovery Act of 2008.--Section 1002(b) of the 
Housing and Economic Recovery Act of 2008 (Public Law 110-289; 122 
Stat. 2661) is amended--
            (1) in paragraph (1), by striking ``Federal Housing Finance 
        Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''; and
            (2) in paragraph (2), by striking ``Director of the 
        Agency'' and inserting ``Chairperson of the Federal Mortgage 
        Insurance Corporation''.
    (n) Housing and Urban-Rural Recovery Act of 1983.--The first 
sentence of section 469 of the Housing and Urban-Rural Recovery Act of 
1983 (12 U.S.C. 1701p-1) is amended by striking ``Federal Housing 
Finance Agency,''.
    (o) Multifamily Assisted Housing Reform and Affordability Act of 
1997.--Section 517(b)(4) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking 
``Federal Housing Finance Agency'' and inserting ``Federal Mortgage 
Insurance Corporation''.
    (p) Public Law 93-495.--Section 111 of Public Law 93-495 (12 U.S.C. 
250) is amended by striking ``the Director of the Federal Housing 
Finance Agency,''.
    (q) Neighborhood Reinvestment Corporation Act.--Section 606(c)(3) 
of the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8105(c)(3)) 
is amended by striking ``Federal Housing Finance Agency'' and inserting 
``Federal Mortgage Insurance Corporation''.
    (r) Riegle Community Development and Regulatory Improvement Act of 
1994.--Section 117(e) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (12 U.S.C. 4716(e)) is amended by 
striking ``Federal Housing Finance Agency'' and inserting ``Federal 
Mortgage Insurance Corporation''.
    (s) Right to Financial Privacy Act of 1978.--Section 1113(o) of the 
Right to Financial Privacy Act of 1978 (12 U.S.C. 3413(o)) is amended--
            (1) in the heading to the subsection, by striking ``Federal 
        Housing Finance Agency'' and inserting ``Federal Mortgage 
        Insurance Corporation'';
            (2) by striking ``Federal Housing Finance Agency'' and 
        inserting ``Federal Mortgage Insurance Corporation''; and
            (3) by striking ``Federal Housing Finance Agency's'' and 
        inserting ``Federal Mortgage Insurance Corporation's''.
    (t) Sarbanes-Oxley Act of 2002.--Section 105(b)(5)(B)(ii)(II) of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(B)(ii)(II)) is 
amended by striking ``Director of the Federal Housing Finance Agency'' 
and inserting ``Chairperson of the Federal Mortgage Insurance 
Corporation''.
    (u) Securities Exchange Act.--Section 15G of the Securities 
Exchange Act (15 U.S.C. 78o-11) is amended--
            (1) in subsection (b)(2), by striking ``Federal Housing 
        Finance Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''; and
            (2) in subsection (e)(4), by striking ``Director of the 
        Federal Housing Finance Agency'' each place that term appears 
        and inserting ``Chairperson of the Federal Mortgage Insurance 
        Corporation''.
    (v) Truth in Lending Act.--The Truth in Lending Act (15 U.S.C. 1601 
et seq.) is amended--
            (1) section 129H(b)(4), by striking ``Federal Housing 
        Finance Agency'' and inserting ``Federal Mortgage Insurance 
        Corporation''; and
            (2) in section 129E--
                    (A) in subsection (g)(1), by striking ``Federal 
                Housing Finance Agency'' and inserting ``Federal 
                Mortgage Insurance Corporation''; and
                    (B) in subsection (h), by striking ``Federal 
                Housing Finance Agency'' and inserting ``Federal 
                Mortgage Insurance Corporation''.
    (w) Other References in Federal Law.--On and after the system 
certification date, any reference to the Federal Housing Finance Agency 
or the Director thereof in any law, rule, regulation, certificate, 
directive, instruction, or other official paper in force on the system 
certification date shall be considered to refer and apply to the 
Federal Mortgage Insurance Corporation and the Chairperson thereof, 
respectively.

SEC. 408. REPEAL OF MANDATORY HOUSING GOALS.

    (a) Repeal of Housing Goals.--The Safety and Soundness Act is 
amended by striking sections 1331 through 1336 (12 U.S.C. 4561-6).
    (b) Conforming Amendments.--The Safety and Soundness Act (12 U.S.C. 
4501 et seq.) is amended--
            (1) in section 1303(28), by striking ``, and, for the 
        purposes'' and all that follows through ``designated disaster 
        areas'';
            (2) in section 1324(b)(1)(A), by striking clauses (i), 
        (ii), and (iv);
            (3) in section 1341--
                    (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);
            (4) in section 1345(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
            (5) in section 1371(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) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act.
    (d) Required Compliance With Nondiscrimination Laws.--
            (1) Approved entities; platform.--Notwithstanding any other 
        provision of this Act, approved entities and the Securitization 
        Platform shall comply with Federal and State nondiscrimination 
        laws, including the Fair Housing Act (42 U.S.C. 3601 et seq.) 
        and the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).
            (2) Corporation.--
                    (A) In general.--In carrying out this Act, the 
                Corporation shall comply with Federal and State 
                nondiscrimination laws.
                    (B) Periodic review.--The Corporation shall 
                periodically review its policies, standards, and 
                guidelines with respect to eligible mortgage loans, 
                including, but not limited to, any automated 
                underwriting systems, to ensure that such policies, 
                standards, and guidelines are consistent with the 
                requirements of section 408(d).
            (3) Safety and soundness act.--Section 1325 of the Safety 
        and Soundness Act (12 U.S.C. 4545) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``The Secretary'' and inserting the following:
    ``(a) In General.--The Secretary'';
                    (B) in paragraph (1)--
                            (i) by inserting ``, approved guarantor, 
                        approved multifamily guarantor, approved 
                        aggregator, and the Securitization Platform'' 
                        after ``enterprise'';
                            (ii) by inserting ``or guarantee'' after 
                        ``purchase''; and
                            (iii) by inserting ``or mortgage-backed 
                        security'' after ``mortgage'';
                    (C) in paragraph (2)--
                            (i) by striking ``(2) by regulation'' and 
                        by inserting ``(2)(A) by regulation'';
                            (ii) by inserting ``and'' after the 
                        semicolon; and
                            (iii) by adding at the end the following:
            ``(B) with respect to the market for covered guarantee 
        transactions and covered market-based risk-sharing 
        transactions, by regulation, require each approved guarantor, 
        approved multifamily guarantor, and approved aggregator to 
        submit data to the Secretary to assist the Secretary in 
        investigating whether a mortgage lender with which the approved 
        guarantor, approved multifamily guarantor, or approved 
        aggregator does business has failed to comply with the Fair 
        Housing Act (42 U.S.C. 3601 et seq.);'';
                    (D) in paragraph (3)--
                            (i) by striking ``(3) by regulation'' and 
                        by inserting ``(3)(A) by regulation'';
                            (ii) by inserting ``and'' after the 
                        semicolon; and
                            (iii) by adding at the end the following:
            ``(B) with respect to the market for covered guarantee 
        transactions and covered market-based risk-sharing 
        transactions, by regulation, require each approved guarantor, 
        approved multifamily guarantor, and approved aggregator to 
        submit data to the Secretary to assist in investigating whether 
        a mortgage lender with which the approved guarantor, approved 
        multifamily guarantor, or approved aggregator does business has 
        failed to comply with the Equal Credit Opportunity Act (15 
        U.S.C. 1691 et seq.), and shall submit any such information 
        received to the appropriate Federal agencies, as provided in 
        section 704 of the Equal Credit Opportunity Act (15 U.S.C. 
        1691c), for appropriate action;'';
                    (E) in paragraph (4), by inserting ``and the 
                Federal Mortgage Insurance Corporation'' after 
                ``enterprises'';
                    (F) in paragraph (5)--
                            (i) by striking ``(5) direct the'' and by 
                        inserting ``(5)(A) direct the'';
                            (ii) by inserting ``and'' after the 
                        semicolon; and
                            (iii) by adding at the end the following:
            ``(B) with respect to the market for covered guarantee 
        transactions and covered market-based risk-sharing 
        transactions, apply various remedial actions, including 
        suspension, probation, reprimand, or settlement, against 
        lenders that have been found to have engaged in discriminatory 
        lending practices in violation of the Fair Housing Act or the 
        Equal Credit Opportunity Act, pursuant to a final adjudication 
        on the record, and after opportunity for an administrative 
        hearing, in accordance with subchapter II of chapter 5 of title 
        5, United States Code; and'';
                    (G) in paragraph (6)--
                            (i) by striking ``(6) periodically review'' 
                        and by inserting ``(6)(A) periodically 
                        review'';
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(B) with respect to the market for covered 
                guarantee transactions and covered market-based risk-
                sharing transactions, periodically review and comment 
                on the underwriting and appraisal guidelines of each 
                approved guarantor, approved multifamily guarantor, and 
                approved aggregator, and the policies, standards, and 
                guidelines of the Securitization Platform to ensure 
                that such guidelines are consistent with the Fair 
                Housing Act and this section.''; and
                    (H) by adding at the end the following:
    ``(b) Definitions.--In this section, the terms `approved 
guarantor', `approved multifamily guarantor', `approved aggregator', 
`covered guarantee transaction', `covered market-based risk-sharing 
transaction', and `Securitization Platform' have the meanings given 
such terms in section 2 of the Housing Finance Reform and Taxpayer 
Protection Act of 2014.''.

 TITLE V--IMPROVING TRANSPARENCY, ACCOUNTABILITY, AND EFFICACY WITHIN 
                           AFFORDABLE HOUSING

SEC. 501. AFFORDABLE HOUSING ALLOCATIONS.

    (a) Fee and Allocation of Amounts.--In addition to any fees for the 
provision of insurance established in accordance with title III, in 
each fiscal year the Corporation shall--
            (1) charge and collect a fee determined as provided in 
        subsection (b) for each dollar of the outstanding principal 
        balance of all eligible mortgage loans that collateralize 
        covered securities insured under this Act; and
            (2) allocate or otherwise transfer, on an annual basis--
                    (A) 75 percent of such fee amounts to the Secretary 
                of Housing and Urban Development to fund the Housing 
                Trust Fund established under section 1338 of the Safety 
                and Soundness Act (12 U.S.C. 4568);
                    (B) 15 percent of such fee amounts to the Secretary 
                of the Treasury to fund the Capital Magnet Fund 
                established under section 1339 of the Safety and 
                Soundness Act (12 U.S.C. 4569); and
                    (C) 10 percent of such fee amounts to the 
                Corporation to fund the Market Access Fund established 
                under section 504.
    (b) Determination of Fee.--The fee required to be charged under 
subsection (a) shall be determined as follows:
            (1) Initial fee.--Beginning on the date of enactment of 
        this Act and ending upon the date set forth under paragraph 
        (2)(E), the fee shall be an amount equal to 10 basis points for 
        each dollar of the outstanding principal balance of eligible 
        mortgage loans collateralizing covered securities insured under 
        this Act.
            (2) Subsequent incentive-based fee.--Not later than 6 
        months after the date that the Corporation has approved at 
        least 2 approved guarantors, approved multifamily guarantors, 
        or approved aggregators, the Corporation shall, by regulation, 
        after notice and comment, establish a formula for determining 
        the fee that meets the following criteria:
                    (A) Average for all fees.--The average of fees 
                charged on the total outstanding principal balance of 
                all eligible mortgage loans collateralizing covered 
                securities insured under this Act shall be equal to 10 
                basis points.
                    (B) Permissible range.--The highest basis point fee 
                charged to an approved guarantor, approved multifamily 
                guarantor, or approved aggregator engaged in a covered 
                guarantee transaction or an approved aggregator engaged 
                in a covered market-based risk-sharing transaction 
                shall not exceed 2 times the lowest basis point fee 
                charged.
                    (C) Incentives to serve underserved market 
                segments.--
                            (i) In general.--The formula determined 
                        under this subsection shall provide that the 
                        amount by which any particular fee charged to 
                        an approved guarantor, approved multifamily 
                        guarantor, or approved aggregator engaged in a 
                        covered guarantee transaction or an approved 
                        aggregator engaged in a covered market-based 
                        risk-sharing transaction may be more or less 
                        than the average fee required under 
                        subparagraph (A) based upon consideration of 
                        the following factors:
                                    (I) Performance relative to 
                                peers.--The performance of each 
                                approved guarantor, approved 
                                multifamily guarantor, or approved 
                                aggregator engaged in a covered 
                                guarantee transaction and each approved 
                                aggregator engaged in a covered market-
                                based risk-sharing transaction in 
                                serving underserved market segments, as 
                                identified and defined under section 
                                210, relative to the performance of all 
                                other approved guarantors, approved 
                                multifamily guarantors, or approved 
                                aggregators engaged in covered 
                                guarantee transactions or approved 
                                aggregators engaged in covered market-
                                based risk-sharing transactions.
                                    (II) Performance relative to 
                                primary market loan origination data.--
                                The performance of each approved 
                                guarantor, approved multifamily 
                                guarantor, or approved aggregator 
                                engaged in a covered guarantee 
                                transaction and each approved 
                                aggregator engaged in a covered market-
                                based risk-sharing transaction in 
                                serving underserved market segments, as 
                                identified and defined under section 
                                210, relative to the level of primary 
                                market mortgage originations in each of 
                                the underserved market segments so 
                                identified and defined that were 
                                facilitated by the approved guarantor, 
                                approved multifamily guarantor, or 
                                approved aggregator's engagement in a 
                                covered guarantee transaction or the 
                                approved aggregator's engagement in a 
                                covered market-based risk-sharing 
                                transaction.
                                    (III) Relative extent to which 
                                individual market segments are 
                                underserved.--The relative extent to 
                                which each of the underserved market 
                                segments, as identified and defined 
                                under section 210, that have primary 
                                market mortgage originations 
                                facilitated by the approved guarantor, 
                                approved multifamily guarantor, or 
                                approved aggregator's engagement in a 
                                covered guarantee transaction or the 
                                approved aggregator's engagement in a 
                                covered market-based risk-sharing 
                                transaction is underserved.
                            (ii) Weighing factors.--The formula 
                        determined under this subsection shall assign 
                        such weights to each of the factors set forth 
                        under clause (i) as the Corporation determines 
                        necessary and appropriate.
                            (iii) Data for measuring factors.--To 
                        measure the performance in serving underserved 
                        market segments, as identified and defined 
                        under section 210, by approved guarantors, 
                        approved multifamily guarantors, or approved 
                        aggregators engaged in a covered guarantee 
                        transaction and approved aggregators engaged in 
                        a covered market-based risk-sharing transaction 
                        and the extent to which a market segment is 
                        underserved, the formula determined under this 
                        subsection shall provide for the use of--
                                    (I) the identifications and 
                                definitions of underserved market 
                                segments established by the Corporation 
                                under section 210;
                                    (II) data and other information in 
                                the annual report filed with the 
                                Corporation by each approved guarantor, 
                                approved multifamily guarantor, or 
                                approved aggregator engaged in a 
                                covered guarantee transaction and each 
                                approved aggregator engaged in a 
                                covered market-based risk-sharing 
                                transaction, as required under section 
                                210;
                                    (III) loan level data, to the 
                                extent possible in the manner required 
                                by the Home Mortgage Disclosure Act (12 
                                U.S.C. 2801 et seq.) on activities 
                                related to covered securities; and
                                    (IV) other publicly available data.
                    (D) Third-party entity to measure factors.--
                            (i) Selection.--The Corporation, through a 
                        competitive process, shall select an entity 
                        independent of the Corporation to gather, use, 
                        and provide to the Corporation the data 
                        required under subparagraph (C)(iii).
                            (ii) Ranking.--The entity selected under 
                        clause (i) shall--
                                    (I) analyze the data required under 
                                subparagraph (C)(iii); and
                                    (II) rank the approved guarantors, 
                                approved multifamily guarantors, or 
                                approved aggregators engaged in covered 
                                guarantee transactions and the approved 
                                aggregators engaged in covered market-
                                based risk-sharing transactions, 
                                applying the formula established by the 
                                Corporation.
                            (iii) Timing of ranking.--The entity 
                        selected under clause (i) shall, on an annual 
                        basis, provide the rankings required under 
                        clause (ii)(II). The annual rankings required 
                        under this clause shall begin at a time to be 
                        determined mutually by the entity selected 
                        under clause (i) and the Corporation, so that 
                        the Corporation will be positioned to 
                        determine, charge, and collect the first 
                        incentive-based fees beginning on the date that 
                        is 12 months after the date of approval of at 
                        least 2 approved guarantors, approved 
                        multifamily guarantors, or approved 
                        aggregators.
                    (E) Timing of charging and collecting incentive-
                based fees.--
                            (i) First incentive-based fees.--Subject to 
                        paragraph (3), the Corporation shall charge and 
                        collect the first incentive-based fees required 
                        under this subsection beginning on the date 
                        that is 12 months after the date of the 
                        approval of at least 2 approved guarantors, 
                        approved multifamily guarantors, or approved 
                        aggregators.
                            (ii) Subsequent annual incentive-based 
                        fees.--Subject to paragraph (3), the 
                        Corporation shall charge and collect incentive-
                        based fees annually on the first business day 
                        of each 12-month period that begins after the 
                        expiration of the initial 12-month period set 
                        forth in clause (i).
                            (iii) Collection.--
                                    (I) Procedures.--The Corporation 
                                shall, by regulation, establish 
                                procedures for collecting the 
                                incentive-based fee required under this 
                                paragraph on a periodic basis 
                                determined by the Corporation.
                                    (II) Compliance with procedures.--
                                The Corporation shall collect all 
                                incentive-based fees required under 
                                this paragraph consistent with the 
                                procedures established pursuant to 
                                subclause (I).
                            (iv) Adjustments to incentive-based fees 
                        paid.--
                                    (I) In general.--The Corporation 
                                shall make appropriate adjustments to 
                                the incentive-based fee charged to an 
                                approved guarantor, approved 
                                multifamily guarantor, or approved 
                                aggregator engaged in a covered 
                                guarantee transaction or an approved 
                                aggregator engaged in a covered market-
                                based risk-sharing transaction for any 
                                year based on the--
                                            (aa) application of the 
                                        formula established under this 
                                        paragraph to such approved 
                                        guarantor, approved multifamily 
                                        guarantor, or approved 
                                        aggregator; and
                                            (bb) measured performance 
                                        of such approved guarantor, 
                                        approved multifamily guarantor, 
                                        or approved aggregator in that 
                                        year.
                                    (II) Form of adjustments.--Any 
                                adjustments made pursuant to subclause 
                                (I) may take the form of--
                                            (aa) a credit against the 
                                        fee paid by an approved 
                                        guarantor, approved multifamily 
                                        guarantor, or approved 
                                        aggregator for the year; or
                                            (bb) an additional amount 
                                        owing on the fee for the year 
                                        by the approved guarantor, 
                                        approved multifamily guarantor, 
                                        or approved aggregator.
                            (v) Frequency of incentive-based fee 
                        collection.--In determining the appropriate 
                        periodic basis for collecting the incentive-
                        based fees required under clause (iii), the 
                        Corporation shall take into consideration the 
                        need to make appropriate adjustments to the 
                        fees under clause (iv) through credits or 
                        additional billings.
                            (vi) Rule of construction.--Nothing in this 
                        subparagraph shall be construed to waive, 
                        override, or in any manner supersede the 
                        requirement set forth under subparagraph (A).
                    (F) Additional incentives to serve underserved 
                market segments.--
                            (i) Fee credits from the market access 
                        fund.--Notwithstanding any provision of section 
                        504 or any other provision of law, the 
                        Corporation may use up to 50 percent of the 
                        amounts in the Market Access Fund, determined 
                        as of the date that an incentive-based fee 
                        under subparagraph (E) is to be charged in any 
                        year, to provide 1 or more approved guarantors, 
                        approved multifamily guarantors, or approved 
                        aggregators engaged in a covered guarantee 
                        transaction or approved aggregators engaged in 
                        a covered market-based risk-sharing transaction 
                        with additional incentives to serve underserved 
                        market segments, as identified and defined 
                        under section 210, through the award of a 
                        credit that may be applied to reduce the annual 
                        fee charged to the approved guarantor, approved 
                        multifamily guarantor, or approved aggregator 
                        if that person exceeds performance measures 
                        related to the service of such underserved 
                        market segments established by the Corporation.
                            (ii) Rule required.--The Corporation shall 
                        establish, by regulation, the terms, 
                        conditions, and performance measures for the 
                        awarding of credits under clause (i).
            (3) Opt-out from incentive-based fees.--
                    (A) Election and written agreement.--An approved 
                guarantor, approved multifamily guarantor, or approved 
                aggregator engaged in a covered guarantee transaction 
                or an approved aggregator engaged in a covered market-
                based risk-sharing transaction may elect to be excepted 
                from the incentive-based fee that is charged under 
                paragraph (2) by notifying the Corporation in writing 
                that the approved guarantor, approved multifamily 
                guarantor, or approved aggregator agrees to pay the fee 
                amount described in subparagraph (C).
                    (B) Timing for election.--For any 12-month period 
                for which an incentive-based fee will be charged under 
                paragraph (2), an approved guarantor, approved 
                multifamily guarantor, or approved aggregator engaged 
                in a covered guarantee transaction or an approved 
                aggregator engaged in a covered market-based risk-
                sharing transaction may make an election under 
                subparagraph (A) not later than 3 months prior to the 
                beginning of such 12-month period.
                    (C) Fee amount for opt-out.--If an approved 
                guarantor, approved multifamily guarantor, or approved 
                aggregator engaged in a covered guarantee transaction 
                or an approved aggregator engaged in a covered market-
                based risk-sharing transaction makes an election under 
                subparagraph (A), the Corporation shall charge to, and 
                collect from, the approved guarantor, approved 
                multifamily guarantor, or approved aggregator a fee in 
                an amount equal to the highest fee charged by 
                Corporation for the 12-month period under the ranking 
                made under paragraph (2)(D).
                    (D) Opt-out not to affect reporting requirements.--
                An election made under subparagraph (A) shall not 
                release, diminish, or otherwise affect any requirement 
                set forth by this Act that requires an approved 
                guarantor, approved multifamily guarantor, or approved 
                aggregator engaged in a covered guarantee transaction 
                or an approved aggregator engaged in a covered market-
                based risk-sharing transaction to furnish to the 
                Corporation such information as the Corporation is 
                authorized by this Act to obtain, including the annual 
                report required to be filed with the Corporation under 
                section 210.
    (c) Continuing Obligation.--The fee required to be charged under 
subsection (a) shall be collected for the life of the covered security.
    (d) Suspension of Contributions.--The Corporation may temporarily 
suspend allocations under subsection (a)(2) upon a finding by the 
Corporation that such allocations are contributing, or would 
contribute, to the financial instability of the Mortgage Insurance Fund 
established under section 303.
    (e) Rule of Construction.--The cost of the fee required to be 
charged under subsection (a) shall not be borne by eligible borrowers.

SEC. 502. HOUSING TRUST FUND.

    Section 1338 of the Safety and Soundness Act (12 U.S.C. 4568) is 
amended--
            (1) in subsection (a)(1)--
                    (A) in the first sentence, by inserting ``or 
                pursuant to section 501 of the Housing Finance Reform 
                and Taxpayer Protection Act of 2014'' after ``section 
                1337''; and
                    (B) in the second sentence, by inserting 
                ``federally-recognized tribes and'' after ``grants 
                to'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) [Reserved.]'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``Except as 
                provided in subsection (b), the'' and inserting 
                ``The'';
                    (B) in paragraph (2)--
                            (i) by striking ``(as such term is defined 
                        in section 4 of the Native American Housing 
                        Assistance and Self-Determination Act of 1997 
                        (25 U.S.C. 4103))''; and
                            (ii) by adding at the end the following: 
                        ``An Indian tribe receiving grant amounts under 
                        this subsection may designate a federally 
                        recognized tribe or a tribally designated 
                        housing entity to receive such grant amounts. 
                        Nothing in this subsection shall limit or be 
                        construed to limit the ability of an Indian 
                        tribe or a tribally designated housing entity 
                        from being a permissible designated recipient 
                        of grant amounts provided by a State under this 
                        section.'';
                    (C) in paragraph (3)--
                            (i) in the heading--
                                    (I) by inserting ``Indian tribes 
                                and'' before ``States''; and
                                    (II) by striking ``by needs-based 
                                formula'';
                            (ii) in subparagraph (A), by striking ``The 
                        Secretary shall'' and inserting the following:
                            ``(i) Minimum tribal distributions.--
                                    ``(I) In general.--The Secretary, 
                                acting through the Office of Native 
                                American Programs, shall distribute via 
                                competitive grants the amounts 
                                determined under subclause (II) and 
                                made available under this subsection to 
                                federally recognized tribes and 
                                tribally designated housing entities.
                                    ``(II) Amounts.--The total amount 
                                required to be distributed under this 
                                subclause for a fiscal year shall be 
                                the greater of $20,000,000, or 2 
                                percent of the total amount of amounts 
                                allocated for the Housing Trust Fund 
                                under this section.
                                    ``(III) Use of amounts.--
                                Competitive grant amounts received by a 
                                federally recognized tribe or a 
                                tribally designated housing entity 
                                under this clause may be used, or 
                                committed to use, only for those 
                                activities that are identified as 
                                eligible affordable housing activities 
                                under section 202 of the Native 
                                American Housing Assistance and Self-
                                Determination Act of 1996 (25 U.S.C. 
                                4132).
                                    ``(IV) Evaluation of 
                                applications.--
                                            ``(aa) In general.--In 
                                        evaluating any application for 
                                        the receipt of competitive 
                                        grant amounts authorized under 
                                        this clause, the Secretary, 
                                        acting through the Office of 
                                        Native American Programs, shall 
                                        consider with respect to the 
                                        federally recognized tribe 
                                        applicant or tribally 
                                        designated housing entity 
                                        applicant and to Indian 
                                        reservations and other Indian 
                                        areas associated with the 
                                        federally recognized tribe 
                                        applicant or served by the 
                                        tribally designated housing 
                                        entity applicant evaluation 
                                        criteria, including the 
                                        following:

                                                    ``(AA) Level of 
                                                poverty on the Indian 
                                                reservation or in the 
                                                Indian area.

                                                    ``(BB) Level of 
                                                unemployment on the 
                                                Indian reservation or 
                                                in the Indian area.

                                                    ``(CC) Condition of 
                                                housing stock on the 
                                                Indian reservation or 
                                                in the Indian area.

                                                    ``(DD) Level of 
                                                overcrowded housing on 
                                                the Indian reservation 
                                                or in the Indian area, 
                                                as measured by the 
                                                number of households in 
                                                which the number of 
                                                persons per room is 
                                                greater than 1.

                                                    ``(EE) Presence and 
                                                prevalence of black 
                                                mold on the Indian 
                                                reservation or in the 
                                                Indian area.

                                                    ``(FF) Demonstrated 
                                                experience, capacity, 
                                                and ability of the 
                                                applicant to manage the 
                                                development and 
                                                construction of 
                                                affordable housing, and 
                                                manage affordable 
                                                housing programs, 
                                                including rental 
                                                housing programs, 
                                                homeownership programs, 
                                                and programs to assist 
                                                purchasers with down 
                                                payments, closing 
                                                costs, or interest rate 
                                                buy-downs.

                                                    ``(GG) Demonstrated 
                                                ability of the 
                                                applicant to meet the 
                                                requirements under the 
                                                Native American Housing 
                                                Assistance and Self-
                                                Determination Act of 
                                                1996 (25 U.S.C. 4101 et 
                                                seq.), including the 
                                                timely and efficient 
                                                expenditure of funds.

                                                    ``(HH) Such other 
                                                criteria as may be 
                                                specified by the 
                                                Secretary in order to 
                                                evaluate the overall 
                                                quality of the proposed 
                                                project, the 
                                                feasibility of the 
                                                proposed project, and 
                                                whether the proposed 
                                                project will address 
                                                the housing needs on 
                                                the Indian reservation 
                                                or in the Indian area.

                                            ``(bb) Review of data.--In 
                                        evaluating any application for 
                                        the receipt of competitive 
                                        grant amounts authorized under 
                                        this clause, the Secretary, 
                                        acting through the Office of 
                                        Native American Programs, shall 
                                        permit a federally recognized 
                                        tribe applicant or a tribally 
                                        designated housing entity 
                                        applicant to supplement or 
                                        replace, in whole or in part, 
                                        any data compiled and produced 
                                        by the Bureau of the Census and 
                                        upon which the Secretary, 
                                        acting through the Office of 
                                        Native American Program, 
                                        relies, provided such tribally-
                                        collected data meets the 
                                        Department of Housing and Urban 
                                        Development's standards for 
                                        accuracy.
                                    ``(V) Treatment of funds.--
                                Notwithstanding any other provision of 
                                law, competitive grant amounts received 
                                under this clause shall not be 
                                considered Federal funds for purposes 
                                of matching other Federal sources of 
                                funds.
                                    ``(VI) Rule of construction.--The 
                                requirements under clause (ii), 
                                subparagraphs (B) and (C) of this 
                                paragraph, and paragraphs (4) through 
                                (8) and paragraph (10)(A) of this 
                                subsection shall not apply to any 
                                amounts distributed under this clause 
                                to a federally recognized tribe or a 
                                tribally designated housing entity.
                            ``(ii) State distributions.--From any 
                        amounts remaining in the Housing Trust Fund 
                        after the distribution of the amounts required 
                        under clause (i), the Secretary shall'';
                            (iii) in subparagraph (B), by striking 
                        ``subparagraph (A)'' and inserting 
                        ``subparagraph (A)(ii)''; and
                            (iv) in subparagraph (C), by striking 
                        ``subparagraph (A)'' and inserting 
                        ``subparagraph (A)(ii)'';
                    (D) in paragraph (4)--
                            (i) in subparagraph (B), by striking 
                        ``other than fiscal year 2009''; and
                            (ii) by striking subparagraph (C), and 
                        inserting the following:
                    ``(C) Minimum state allocations.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the minimum allocation, following 
                        the determination of the formula amount in 
                        paragraph (3), to any of the 50 States of the 
                        United States or the District of Columbia shall 
                        be $10,000,000 and the increase in any such 
                        allocation shall be deducted pro rata from the 
                        allocations made above such minimum to all 
                        other of the States (as such term is defined in 
                        section 1303).
                            ``(ii) Exception.--If the allocation to the 
                        Housing Trust Fund under section 501(a)(2)(A) 
                        of the Housing Finance Reform and Taxpayer 
                        Protection Act of 2014 for a fiscal year is 
                        less than $1,000,000,000, the minimum 
                        allocation to any of the 50 States of the 
                        United States or the District of Columbia shall 
                        be the greater of $5,000,000 or 1 percent of 
                        the total amount of amounts allocated for the 
                        Housing Trust Fund under this section and the 
                        increase in any such allocation shall be 
                        deducted pro rata from the allocations made 
                        above such minimum to all other of the States 
                        (as such term is defined in section 1303).'';
                    (E) in paragraph (5)(A)--
                            (i) in clause (iii), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (iv) as clause 
                        (v); and
                            (iii) by inserting after clause (iii) the 
                        following:
                            ``(iv) set forth a plan for achieving 
                        geographic diversity, including the 
                        distribution of grant amounts to rural areas in 
                        proportion to housing needs in those areas; 
                        and''.
                    (F) in paragraph (7)(A), by striking ``housing 
                under the programs identified in section 1335(a)(2)(B) 
                of this title'' and inserting ``housing subsidized 
                under Federal law or comparable State or local laws'';
                    (G) in paragraph (7)(B)(iv), by striking ``section 
                132'' and inserting ``section 1132'';
                    (H) in paragraph (9), by inserting ``(including a 
                public housing agency)'' after ``agency''; and
                    (I) by adding at the end the following:
            ``(11) Rule of construction.--Nothing in this subsection 
        shall be construed to limit the ability of a federally 
        recognized tribe or a tribally designated housing entity from 
        receiving grant amounts provided by a State under this 
        section.'';
            (4) in subsection (f), by adding at the end the following:
            ``(7) Tribal terms.--
                    ``(A) In general.--The terms `federally recognized 
                tribe', `Indian area', `Indian tribe', and `tribally 
                designated housing entity' have the same meaning as in 
                section 4 of the Native American Housing Assistance and 
                Self-Determination Act of 1996 (25 U.S.C. 4103).
                    ``(B) Indian reservation.--The term `Indian 
                reservation' means land subject to the jurisdiction of 
                an Indian tribe.
            ``(8) Rural area.--The term `rural area' means any 
        community eligible for assistance under section 520 of the 
        Housing Act of 1949 (42 U.S.C. 1490).''; and
            (5) in subsection (g)(2)(D)(i), by inserting ``, including 
        the distribution of grant amounts to rural areas in proportion 
        to housing needs in those areas'' after ``diversity''.

SEC. 503. CAPITAL MAGNET FUND.

    Section 1339 of the Safety and Soundness Act (12 U.S.C. 4569) is 
amended--
            (1) in subsection (b)(1), by inserting ``or section 501 of 
        the Housing Finance Reform and Taxpayer Protection Act of 
        2014'' after ``section 1337'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (2)--
                            (i) by inserting ``, activities designed to 
                        foster revitalization in areas experiencing 
                        severe economic distress and property 
                        disinvestment, including, but not limited to, 
                        demolition, property rehabilitation, and 
                        infrastructure configuration,'' after 
                        ``economic development activities''; and
                            (ii) by inserting ``and tribal'' after 
                        ``rural''; and
            (3) in subsection (h)(2)(A), by inserting ``or tribal'' 
        after ``rural''.

SEC. 504. MARKET ACCESS FUND.

    (a) Establishment.--The Corporation shall establish a fund, to be 
known as the ``Market Access Fund'', which shall be maintained and 
administered by the Office of Consumer and Market Access.
    (b) Deposits.--The Market Access Fund shall be credited with--
            (1) the share of the fee charged and collected by the 
        Corporation under section 501; and
            (2) such other amounts as may be appropriated or 
        transferred to the Market Access Fund.
    (c) Purpose.--Amounts in the Market Access Fund shall be eligible 
for use by grantees to address the homeownership and rental housing 
needs of underserved or hard-to-serve populations by--
            (1) providing grants and loans for research, development, 
        and pilot testing of innovations in consumer education, product 
        design, underwriting, and servicing;
            (2) offering additional credit support for certain eligible 
        mortgage loans or pools of eligible mortgage loans, such as by 
        covering a portion of any capital required to obtain insurance 
        from the Corporation under this Act, provided that amounts for 
        such additional credit support do not replace borrower funds 
        required of an eligible mortgage loan;
            (3) providing grants and loans, including through the use 
        of pilot programs of sufficient scale, to support the research 
        and development of sustainable homeownership and affordable 
        rental programs, which programs shall include manufactured 
        homes purchased through real estate and personal property loans 
        and manufactured homes used as rental housing, provided that 
        such grant or loan amounts are used only for the benefit of 
        families whose income does not exceed 120 percent of the median 
        income for the area as determined by the Corporation, with 
        adjustments for family size;
            (4) providing limited credit enhancement, and other forms 
        of credit support, for product and services that--
                    (A) will increase the rate of sustainable 
                homeownership and affordable rental housing, including 
                manufactured homes purchased through real estate and 
                personal property loans and manufactured homes used as 
                rental housing, by individuals or families whose income 
                does not exceed 120 percent of the area median income 
                as determined by the Corporation, with adjustments for 
                family size; and
                    (B) might not otherwise be offered or supported by 
                a pilot program of sufficient scale to determine the 
                viability of such products and services in the private 
                market;
            (5) providing housing counseling by a HUD-approved housing 
        counseling agency;
            (6) providing incentives to achieve broader access to 
        mortgage credit; and
            (7) providing grants and loans for activities designed to 
        foster revitalization in areas experiencing severe economic 
        distress and property disinvestment, including, but not limited 
        to, demolition, rehabilitation, infrastructure configuration, 
        and reuse of vacant land.
    (d) Annual Report.--
            (1) In general.--The Chairperson shall, on an annual basis, 
        report to Congress on the performance and outcome of grants, 
        loans, or credit support programs funded by the Market Access 
        Fund in accordance with subsection (c), including--
                    (A) an evaluation of how each grant, loan, or 
                credit support program--
                            (i) succeeded in meeting or failed to meet 
                        the need of certain populations, especially 
                        extremely low-, very low-, low-, and moderate-
                        income and underserved or hard-to-serve 
                        populations; and
                            (ii) succeeded in maximizing or failed to 
                        maximize the leverage of public investment made 
                        for each such grant, loan, or credit support 
                        program; and
                    (B) for each award of funds for a grant, loan, or 
                credit support program by the Market Access Fund--
                            (i) the recipient of the funds;
                            (ii) the purpose for which the recipient 
                        received the funds;
                            (iii) the amount of funds provided to the 
                        recipient; and
                            (iv) the amount of funds, excluding 
                        administrative costs, that are used to directly 
                        meet the purpose identified under clause (ii), 
                        including meeting the housing needs of 
                        extremely low-, very low-, low-, and moderate-
                        income and underserved or hard-to-serve 
                        populations.
            (2) Inclusion in annual report.--The Chairperson shall 
        include the report required under paragraph (1) in the annual 
        report required under section 206.

SEC. 505. ADDITIONAL TAXPAYER PROTECTIONS.

    (a) Not to Be Used for Political Activities.--Consistent with the 
existing requirements under sections 1338(c)(10)(D) and 1339(h)(5) of 
the Safety and Soundness Act (12 U.S.C. 4568(c)(10)(D) and 4569(h)(5)), 
the Secretary of Housing and Urban Development, the Secretary of the 
Treasury, and the Office of Community and Market Access, respectively, 
shall ensure that grant amounts allocated by covered grantees to 
eligible recipients or allocated to individuals by such eligible 
recipients are not used for--
            (1) political activities;
            (2) political advocacy;
            (3) lobbying, whether directly or through other parties;
            (4) influencing the selection, nomination, election, or 
        appointment of 1 or more candidates to any Federal, State or 
        local office;
            (5) personal counseling services;
            (6) travel expenses; and
            (7) preparing or providing advice on tax returns.
    (b) Penalties.--
            (1) Civil money penalty.--If an eligible recipient or any 
        other individual in receipt of grant amounts described by this 
        section violates any provision of subsection (a), the Secretary 
        of Housing and Urban Development, the Secretary of the 
        Treasury, or the Corporation, as the case may be, may impose a 
        civil penalty on such recipient or individual, as the case may 
        be, of not more than $1,000,000 for each violation.
            (2) Criminal penalties.--Whoever, being subject to the 
        provisions of subsection (a), knowingly participates, directly 
        or indirectly, in any manner in conduct that results in a 
        violation of such provisions shall, notwithstanding section 
        3571 of title 18, United States Code, be fined not more than 
        $1,000,000 for each violation, imprisoned for not more than 5 
        years, or both.
            (3) Rule of construction.--The penalties imposed under 
        paragraphs (1) or (2) shall be in addition to any other 
        available civil remedy or any other available criminal penalty 
        and may be imposed whether or not the Secretary of Housing and 
        Urban Development, the Secretary of the Treasury, or the 
        Corporation, as the case may be, imposes other administrative 
        sanctions.
    (c) Definitions.--As used in this section--
            (1) the term ``covered grantee'' means--
                    (A) for purposes of the Housing Trust Fund, a State 
                or State designated entity;
                    (B) for purposes of the Capital Magnet Fund, an 
                eligible grantee as described under section 1339(e) of 
                the Safety and Soundness Act (12 U.S.C. 4569(e)); and
                    (C) for purpose of the Market Access Fund, an 
                eligible grantee as described under section 504(c);
            (2) the term ``eligible recipient'' means--
                    (A) for purposes of the Housing Trust Fund, a 
                recipient as described under section 1338(c)(9) of the 
                Safety and Soundness Act (12 U.S.C. 4568(c)(9));
                    (B) for purposes of the Capital Magnet Fund, a 
                recipient of assistance from the Capital Magnet Fund; 
                and
                    (C) for purposes of the Market Access Fund, a 
                recipient of assistance from the Market Access Fund;
            (3) the term ``Capital Magnet Fund'' means the Capital 
        Magnet Fund established under section 1339 of the Safety and 
        Soundness Act (12 U.S.C. 4569); and
            (4) the term ``Housing Trust Fund'' means the Housing Trust 
        Fund established under section 1338 of the Safety and Soundness 
        Act (12 U.S.C. 4568).
    (d) Rule of Construction.--Nothing in subsection (a) shall be 
construed to prevent funds from being used for--
            (1) HUD-approved housing counseling services;
            (2) financial literacy education; or
            (3) application fees, permits, or other construction-
        related expenses, if funds are authorized for such 
        construction.

SEC. 506. PROMOTING AFFORDABLE HOUSING INVESTMENT.

    (a) Housing and Community Development Act of 1992.--Paragraph (6) 
of section 542(c) of the Housing and Community Development Act of 1992 
(12 U.S.C. 1715z-22(c)) is amended to read as follows:
            ``(6) Ginnie mae securitization.--The Government National 
        Mortgage Association may, at the discretion of the Secretary, 
        securitize any multifamily loan insured under this subsection, 
        provided that--
                    ``(A) the Federal Housing Administration provides 
                mortgage insurance based on the unpaid principal 
                balance of the loan, as shall be described by 
                regulation;
                    ``(B) the Federal Housing Administration shall not 
                require an assignment fee for mortgage insurance claims 
                related to the securitized mortgages;
                    ``(C) the risk-sharing agreement must provide for 
                reimbursement to the Secretary by the risk share 
                partner or partners for either all or a portion of the 
                losses incurred on the loans insured, regardless of 
                whether the servicing rights or other related mortgage 
                interest have been transferred to a different entity; 
                and
                    ``(D) any entity that subsequently acquires the 
                servicing rights or other related mortgage interest of 
                the risk share partner or partners shall not assume any 
                obligation under the risk-sharing agreement.''.
    (b) National Housing Act.--Clause (ii) of the first sentence of 
section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(g)(1)) is 
amended--
            (1) by striking the semicolon and inserting a comma; and
            (2) by inserting before the period at the end the 
        following: ``, or which are insured under subsection (c) of 
        section 542 of the Housing and Community Development Act of 
        1992 (12 U.S.C.1715z-22), subject to the terms of subsection 
        (c)(6) of such section''.
    (c) Effective Date; Sunset.--
            (1) Effective date.--The amendments made by this section 
        shall take effect beginning on October 1, 2014.
            (2) Sunset.--The amendments made by this section shall 
        expire on September 30, 2021. Effective October 1, 2021, the 
        provisions of paragraph (6) of section 542(c) of the Housing 
        and Community Development Act of 1992 (12 U.S.C. 1715z-22(c)) 
        and clause (ii) of the first sentence of section 306(g)(1) of 
        the National Housing Act (12 U.S.C. 1721(g)(1)), as in effect 
        on the day before the date of the enactment of this Act, are 
        hereby revived.

   TITLE VI--TRANSITION AND TERMINATION OF FANNIE MAE AND FREDDIE MAC

SEC. 601. MINIMUM HOUSING FINANCE SYSTEM CRITERIA TO BE MET PRIOR TO 
              SYSTEM CERTIFICATION DATE.

    (a) System Certification Date.--The system certification date shall 
be the date that the Board of Directors, in its sole discretion, 
certifies by a majority vote that--
            (1) the Corporation is able to undertake, in a manner found 
        satisfactory to the Board, the duties specified by this Act, 
        and any amendments made by this Act; and
            (2) all the minimum criteria set forth under subsection (b) 
        with respect to the new housing finance system have been fully 
        satisfied.
    (b) Minimum Housing Finance System Criteria.--The Board of 
Directors shall consider the following minimum criteria in determining 
whether to certify that the new housing finance system is ready:
            (1) Taxpayer protection.--The Department of the Treasury 
        advised the Board of Directors that laws and contracts are in 
        place to provide for compensation to the Department for its 
        support of the enterprises and the housing finance system.
            (2) Securitization platform and standardized securities.--
        The Securitization Platform is developed and able to issue 
        standardized securities for the single-family covered 
        securities market.
            (3) Small lender mutuals.--At least 1 small lender mutual 
        is fully operational and able to undertake the duties specified 
        in section 315.
            (4) Approved entities.--A sufficient number of approved 
        entities have been approved pursuant the provisions of subtitle 
        B of title III--
                    (A) to assume a reasonable level of first loss 
                position through approved guarantors or through 
                approved credit risk-sharing mechanisms established 
                under section 302; and
                    (B) to generate a substantial volume of secondary 
                mortgage market activity with respect to eligible 
                single-family mortgage loans collateralizing single-
                family covered securities insured in accordance with 
                this Act.
            (5) Multifamily market.--
                    (A) Well-functioning multifamily market.--The 
                Corporation has approved multiple multifamily 
                guarantors pursuant to title VII who are providing 
                sufficient multifamily financing in the primary, 
                secondary, and tertiary geographical markets, including 
                in rural markets and through a diversity of experienced 
                multifamily lenders.
                    (B) Requirements of the act.--Approved multifamily 
                guarantors are meeting the requirements of this Act.
                    (C) Competitive market.--There is a competitive 
                multifamily market for approved multifamily guarantors 
                engaging in multifamily covered securities.
                    (D) Rule of construction.--Noncompliance with the 
                requirements of this Act by any individual approved 
                multifamily guarantor shall not constitute grounds to 
                prevent system certification.
    (c) Rule of Construction.--The Corporation shall take all steps 
necessary to meet each minimum housing finance system criteria set 
forth under subsection (b) as expeditiously and efficiently as 
practicable. The Corporation may commence providing guarantees on 
single-family or multifamily covered securities prior to meeting all 
the minimum housing finance system criteria set forth under subsection 
(b).
    (d) Notification to Congress.--
            (1) In general.--The Chairperson shall promptly submit to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives a written notification that the Board of 
        Directors has certified that the criteria set forth under 
        subsection (b) have been met.
            (2) Timing.--The Corporation shall provide the notification 
        required under paragraph (1) not later than 5 years after the 
        date of enactment of this Act.
            (3) Deadline extensions.--
                    (A) First extension.--If the Board of Directors is 
                unable to make the certification required by this 
                section prior to the deadline required in paragraph 
                (2), the Board of Directors may, with an affirmative 
                vote of the majority of the Board, extend the deadline 
                an additional 2 years.
                    (B) Second extension.--If, after the expiration of 
                the first extension of 2 years, the Board of Directors 
                is unable to make the certification required by this 
                section, the Board of Directors may, with an 
                affirmative vote of at least \2/3\ of the Board, extend 
                the deadline an additional 2 years.
                    (C) Additional extensions.--If, after the 
                expiration of the second extension of 2 years, the 
                Board of Directors is unable to make the certification 
                required by this section, the Board of Directors may, 
                with a unanimous affirmative vote of the Board and upon 
                the written agreement of the Chairman of the Board of 
                Governors of the Federal Reserve System and the 
                Secretary of the Treasury, and in consultation with the 
                Secretary of Housing and Urban Development, extend the 
                deadline an additional year, and annually thereafter 
                utilizing the same process described in this 
                subparagraph until such time as the Board of Directors 
                makes the certification required by this section.

SEC. 602. TRANSITION OF THE HOUSING FINANCE SYSTEM.

    (a) Transition Plan.--The Transition Committee established under 
section 404 shall develop a transition plan not later than 12 months 
after the date of enactment of this Act to facilitate an orderly 
transition to the new housing finance system authorized by this Act.
    (b) Contents of Plan.--The transition plan required under 
subsection (a) shall include--
            (1) estimated timeframes by which to achieve the minimum 
        housing finance system criteria set forth under section 601(b) 
        within 5 years after the date of enactment of this Act;
            (2) detailed actions that the Corporation will take to 
        achieve such minimum criteria;
            (3) estimated timeframes and detailed actions that the 
        Corporation, including the Federal Housing Finance Agency, will 
        take to provide an orderly wind down of the Federal National 
        Mortgage Association and the Federal Home Loan Mortgage 
        Corporation;
            (4) a detailed inventory of all intellectual property 
        owned, held, or licensed by the enterprises, including patents, 
        trademarks, software, credit evaluation systems, and data and 
        information on mortgage performance and plans for utilizing any 
        such intellectual property, technology, infrastructure, or 
        processes of the enterprises in effecting the transition plan;
            (5) a description of and updates on the ongoing operations 
        of the Corporation, including the operations of the Federal 
        Housing Finance Agency;
            (6) detailed plans and timeframes for establishing, as soon 
        as practicable, a multifamily covered securities market;
            (7) detailed plans and timeframes for establishing, as soon 
        as practicable, a standardized security issued through the 
        Securitization Platform for the single-family covered 
        securities market; and
            (8) detailed plans for increasing the level of credit risk-
        sharing in the secondary mortgage market.
    (c) Considerations.--
            (1) In general.--For purposes of facilitating an orderly 
        transition to the new housing finance system authorized by this 
        Act, the Corporation shall consider in determining how to best 
        fulfill the requirements of this title the estimated impact of 
        various transition options with respect to the following:
                    (A) Housing prices and affordability.
                    (B) The effectiveness of consumer protections in 
                the housing market.
                    (C) Volume and characteristics of mortgage loan 
                originations.
                    (D) The condition of the rental housing market.
                    (E) Small lender participation in the secondary 
                mortgage market.
                    (F) Access to credit in rural and underserved 
                communities.
                    (G) Competition among market participants.
                    (H) The condition of the multifamily housing 
                market.
                    (I) Innovation among secondary mortgage market 
                participants.
                    (J) Taxpayer repayment.
                    (K) Private capital in the secondary mortgage 
                market.
            (2) Inclusion in annual report.--A description and analysis 
        of each consideration required under paragraph (1) shall be 
        included in the report required to be submitted to Congress 
        under subsection (d).
    (d) Report to Congress.--
            (1) In general.--Not later than 12 months after the date of 
        enactment of this Act and in accordance with section 404(c)(2), 
        the Transition Committee shall submit the transition plan 
        required under subsection (a) to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the Committee on 
        Financial Services of the House of Representatives.
            (2) Updates.--Not later than 1 year after the date on which 
        the transition plan is submitted under paragraph (1) and 
        annually thereafter until the system certification date, the 
        Chairperson shall--
                    (A) update the transition plan, subject to the 
                requirements of subsection (b); and
                    (B) submit such updated plan to the Committee on 
                Banking, Housing, and Urban Affairs of the Senate and 
                the Committee on Financial Services of the House of 
                Representatives.

SEC. 603. RESOLUTION AUTHORITY; TECHNICAL AMENDMENTS.

    (a) Effective Date.--The amendments made by this section shall take 
effect on the agency transfer date.
    (b) Federal Housing Enterprises Financial Safety and Soundness Act 
of 1992.--Section 1367 of the Safety and Soundness Act (12 U.S.C. 4617) 
is amended--
            (1) by striking ``stockholder'' and ``stockholders'' and 
        inserting ``shareholder, member,'' and ``shareholders, 
        members,'', respectively, each place those terms appear;
            (2) by striking ``wind up'' and ``winding up'' and 
        inserting ``wind down'' and ``winding down'', respectively, 
        each place those terms appear;
            (3) in subsection (a)--
                    (A) in paragraph (3)(G), by striking ``, and there 
                is no reasonable prospect for the regulated entity to 
                become adequately capitalized (as defined in section 
                1364(a)(1))'';
                    (B) by striking paragraph (3)(J) and inserting the 
                following:
                    ``(J) Insolvency.--The regulated entity is 
                insolvent or near-insolvent.'';
                    (C) by striking paragraph (3)(K);
                    (D) by redesignating paragraph (3)(L) as paragraph 
                (3)(K); and
                    (E) in paragraph (4)(B)--
                            (i) in the heading, by striking 
                        ``critically undercapitalized regulated 
                        entity'' and inserting ``insolvent or near-
                        insolvent regulated entities'';
                            (ii) in the matter preceding clause (i), by 
                        striking ``critically undercapitalized'' and 
                        inserting ``insolvent or near-insolvent''; and
                            (iii) in clause (i), by striking 
                        ``critically undercapitalized'' and inserting 
                        ``insolvent or near-insolvent'';
            (4) in subsection (b)--
                    (A) in paragraph (2)(B)--
                            (i) in clause (iii), by adding ``and'' 
                        after ``conservator or receiver;'';
                            (ii) by striking clause (iv); and
                            (iii) by redesignating clause (v) as clause 
                        (iv);
                    (B) in paragraph (2)(H), by striking ``of proceeds 
                realized from the performance of contracts or sale of 
                the assets of a regulated entity'' and inserting ``that 
                funds are available'';
                    (C) in paragraph (2)(I)(i)(I), by striking 
                ``section 1348'' and inserting ``part II of this 
                subtitle'';
                    (D) in paragraph (2)(I)(iii), by striking ``section 
                1317 or 1379B'' and inserting ``subtitle B of this 
                Act'';
                    (E) by striking paragraph (3)(A) and inserting the 
                following:
                    ``(A) In general.--The Agency--
                            ``(i) may, as receiver, determine claims in 
                        accordance with the requirements of this 
                        subsection and any regulations prescribed under 
                        paragraph (4); and
                            ``(ii) may define the term `creditor' and 
                        may distinguish between creditors, in order to 
                        facilitate the orderly administration of the 
                        regulated entity in conservatorship or 
                        receivership, in accordance with the 
                        requirements of this section.'';
                    (F) in paragraph (3)(B), by striking ``closed'';
                    (G) in paragraph (5)(D)(iii)(II), by inserting 
                ``legally enforceable and perfected'' before ``security 
                interest'';
                    (H) by striking paragraph (7);
                    (I) by redesignating paragraphs (8) through (19) as 
                paragraphs (7) through (18), respectively; and
                    (J) in paragraph (10)(E), as so redesignated--
                            (i) in clause (ii), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in clause (iii), by striking the 
                        period and inserting a semicolon; and
                            (iii) by adding at the end the following:
                            ``(iv) prohibits discrimination on the 
                        basis of race, sex, or ethnic group in the 
                        solicitation or consideration of offers; and
                            ``(v) mitigates the potential for serious 
                        adverse effects to the financial system.''; and
            (5) by striking subsection (c) and inserting the following:
    ``(c) Priority of Expenses and Unsecured Claims.--
            ``(1) In general.--Unsecured claims against a regulated 
        entity, or the receiver therefor, that are proven to the 
        satisfaction of the receiver shall have priority in the 
        following order:
                    ``(A) Claims of the receiver for administrative 
                expenses.
                    ``(B) Any amounts owed to the United States, unless 
                the United States agrees or consents otherwise.
                    ``(C) Wages, salaries, or commissions, including 
                vacation, severance, and sick leave pay earned by an 
                individual (other than an individual described in 
                subparagraph (F)), but only to the extent of $12,475 
                for each individual (as indexed for inflation, by 
                regulation of the Agency) earned not later than 180 
                days before the date of appointment of the Agency as 
                receiver.
                    ``(D) Contributions owed to employee benefit plans 
                arising from services rendered not later than 180 days 
                before the date of appointment of the Agency as 
                receiver, to the extent of the number of employees 
                covered by each such plan, multiplied by $12,475 (as 
                indexed for inflation, by regulation of the Agency), 
                less the aggregate amount paid to such employees under 
                subparagraph (C), plus the aggregate amount paid by the 
                receivership on behalf of such employees to any other 
                employee benefit plan.
                    ``(E) Any claim arising solely from a covered 
                guarantee transaction involving the regulated entity.
                    ``(F) Any other general or senior liability of the 
                regulated entity (which is not a liability described 
                under subparagraph (G), (H), or (I)).
                    ``(G) Any obligation subordinated to general 
                creditors (which is not an obligation described under 
                subparagraph (H) or (I)).
                    ``(H) Any wages, salaries, or commissions, 
                including any vacation, severance, and sick leave pay 
                earned, owed to senior executives and directors of the 
                regulated entity.
                    ``(I) Any obligation to shareholders or members 
                arising as a result of their status as shareholders or 
                members.
            ``(2) Claims of the united states.--Unsecured claims of the 
        United States shall, at a minimum, have a higher priority than 
        liabilities of the regulated entity that count as regulatory 
        capital.
            ``(3) Creditors similarly situated.--All creditors that are 
        similarly situated under paragraph (1) shall be treated in a 
        similar manner, except that the receiver may take any action 
        (including making payments) that does not comply with this 
        subsection, if--
                    ``(A) the Agency determines that such action is 
                necessary to--
                            ``(i) maximize the value of the assets of 
                        the regulated entity;
                            ``(ii) maximize the present value return 
                        from the sale or other disposition of the 
                        assets of the regulated entity;
                            ``(iii) initiate and continue operations 
                        essential to implementation of the receivership 
                        or any limited-life regulated entity;
                            ``(iv) minimize the amount of any loss 
                        realized upon the sale or other disposition of 
                        the assets of the regulated entity; or
                            ``(v) preserve the financial stability of 
                        the United States; and
                    ``(B) all creditors that are similarly situated 
                under paragraph (1) receive not less than the amount 
                provided in subsection (f)(2).
            ``(4) Definition.--As used in this subsection, the term 
        `administrative expenses of the receiver' includes--
                    ``(A) the actual, necessary costs and expenses 
                incurred by the receiver in preserving the assets of a 
                failed regulated entity or liquidating or otherwise 
                resolving the affairs of a failed regulated entity; and
                    ``(B) any obligations that the receiver determines 
                are necessary and appropriate to facilitate the smooth 
                and orderly liquidation or other resolution of the 
                regulated entity.'';
            (6) by redesignating subsections (d) through (j) as 
        subsections (e) and (k), respectively;
            (7) by inserting after section (c) the following:
    ``(d) Subrogation.--
            ``(1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Agency, upon the payment to any person as provided 
        in subsection (c) in connection with any covered guarantee 
        transaction (as that term is defined in section 2 of the 
        Housing Finance Reform and Taxpayer Protection Act of 2014), 
        shall be subrogated to all rights of the person against such 
        regulated entity to the extent of such payment or assumption.
            ``(2) Dividends on subrogated amounts.--The subrogation of 
        the Agency under paragraph (1) with respect to any regulated 
        entity shall include the right on the part of the Agency to 
        receive the same dividends, fees, or other amounts from the 
        proceeds of the assets of such regulated entity and recoveries 
        on account of stockholders' liability as would have been 
        payable to the person on a claim related to the covered 
        guarantee transaction.
            ``(3) Waiver of certain claims.--The Agency shall waive, in 
        favor only of any person against whom stockholders' individual 
        liability may be asserted, any claim on account of such 
        liability in excess of the liability, if any, to the regulated 
        entity or its creditors, for the amount unpaid upon such stock 
        in such regulated entity, but any such waiver shall be effected 
        in such manner and on such terms and conditions as will not 
        increase recoveries or dividends on account of claims to which 
        the Agency is not subrogated.'';
            (8) in subsection (e), as so redesignated--
                    (A) in paragraph (8), by adding at the end the 
                following:
                    ``(H) Recordkeeping.--The Agency may prescribe 
                regulations requiring that regulated entities maintain 
                such records with respect to qualified financial 
                contracts (including market valuations) that the Agency 
                determines to be necessary or appropriate in order to 
                assist the Agency as receiver for a regulated entity in 
                being able to exercise its rights and fulfill its 
                obligations under this paragraph or paragraph (9) or 
                (10).'';
                    (B) by striking paragraph (9) and inserting the 
                following:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer of assets 
                or liabilities of a regulated entity in default which 
                includes any qualified financial contract, the 
                conservator or receiver for such regulated entity shall 
                either--
                            ``(i) transfer to 1 person, other than a 
                        person for which a conservator, receiver, 
                        trustee in bankruptcy, or other legal custodian 
                        has been appointed or which is otherwise the 
                        subject of a bankruptcy or insolvency 
                        proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person (or any 
                                affiliate of such person) and the 
                                regulated entity in default;
                                    ``(II) all claims of such person 
                                (or any affiliate of such person) 
                                against such regulated entity under any 
                                such contract (other than any claim 
                                which, under the terms of any such 
                                contract, is subordinated to the claims 
                                of general unsecured creditors of such 
                                regulated entity);
                                    ``(III) all claims of such 
                                regulated entity against such person 
                                (or any affiliate of such person) under 
                                any such contract; and
                                    ``(IV) all property securing, or 
                                any other credit enhancement for any 
                                contract described in subclause (I), or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            ``(ii) transfer none of the financial 
                        contracts, claims, or property referred to 
                        under clause (i) (with respect to such person 
                        and any affiliate of such person).
                    ``(B) Transfer to foreign bank, financial 
                institution, or branch or agency thereof.--In 
                transferring any qualified financial contracts and 
                related claims and property under subparagraph (A)(i), 
                the Agency as receiver for a regulated entity shall not 
                make such transfer to a foreign person unless, under 
                the law applicable to such foreign person, to the 
                qualified financial contracts, and to any netting 
                contract, any security agreement or arrangement or 
                other credit enhancement related to 1 or more qualified 
                financial contracts, the contractual rights of the 
                parties to such qualified financial contracts, netting 
                contracts, security agreements or arrangements, or 
                other credit enhancements, are enforceable 
                substantially to the same extent as permitted under 
                this section.''; and
                    (C) in paragraph (13)(C)(ii)--
                            (i) by redesignating subclause (III) as 
                        subclause (IV);
                            (ii) by striking ``and'' at the end of 
                        subclause (II); and
                            (iii) by inserting after subclause (II) the 
                        following:
                                    ``(III) apply to the rights of 
                                parties to netting contracts pursuant 
                                to subtitle A of title IV of the 
                                Federal Deposit Insurance Corporation 
                                Improvement Act of 1991 (12 U.S.C. 4401 
                                et seq.); or'';
            (9) in subsection (g), as so redesignated--
                    (A) by striking ``section or at the request of the 
                Director'' and inserting ``title''; and
                    (B) by striking ``a conservator or a receiver'' and 
                inserting ``the conservator or receiver hereunder, and 
                any remedy against the Agency as conservator or 
                receiver shall be limited to money damages determined 
                in accordance with this title'';
            (10) in subsection (j), as so redesignated--
                    (A) in paragraph (1)(A)(ii), by striking ``shall'' 
                and inserting ``may'';
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``Charter 
                        and establishment'' and inserting 
                        ``Establishment of limited-life regulated 
                        entities''; and
                            (ii) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Transfer of registered status.--If the Agency 
                is appointed as receiver for an enterprise, the 
                limited-life regulated entity established under this 
                subsection with respect to such enterprise shall, by 
                operation of law and immediately upon its organization, 
                succeed to the registered status of the enterprise and 
                thereafter operate in accordance with, and subject to, 
                this Act and any other provision of law to which an 
                enterprise is subject, except as otherwise provided in 
                this subsection.'';
                    (C) in paragraph (3)--
                            (i) in the heading, by inserting ``and 
                        operating funds'' after ``Capital stock'';
                            (ii) by redesignating subparagraphs (A) and 
                        (B) as subparagraphs (B) and (C), respectively;
                            (iii) by inserting prior to subparagraph 
                        (B), as so redesignated, the following:
                    ``(A) Capital not required.--Notwithstanding any 
                other provision of Federal or State law, a limited-life 
                regulated entity may, if permitted by the Agency, 
                operate without any capital or surplus as the Agency 
                may in its discretion determine to be appropriate.'';
                            (iv) in subparagraph (B), as so 
                        redesignated, by striking ``No agency 
                        requirement'' and inserting ``No contribution 
                        by the agency required''; and
                            (v) by adding at the end the following:
                    ``(D) Operating funds.--Upon the organization of a 
                limited-life regulated entity, and thereafter, as the 
                Agency may, in its discretion, determine to be 
                necessary or advisable, the Agency may make available 
                to the limited-life regulated entity, upon such terms 
                and conditions and in such form and amounts as the 
                Agency may in its discretion determine, funds for the 
                operation of the limited-life regulated entity in lieu 
                of capital.'';
                    (D) in paragraph (6)--
                            (i) in the heading, by striking ``Winding 
                        up'' and inserting ``Winding down'';
                            (ii) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) In general.--Subject to subparagraph (B), the 
                Agency shall wind down the affairs of a limited-life 
                regulated entity established under this subsection--
                            ``(i) with respect to a Federal Home Loan 
                        Bank, not later than 2 years after the date of 
                        its organization; and
                            ``(ii) with respect to an enterprise, 
                        within such period of time as the Agency 
                        determines to be necessary and appropriate.''; 
                        and
                            (iii) in subparagraph (B), by inserting 
                        ``established under this subsection with 
                        respect to a Federal Home Loan Bank'' after 
                        ``limited-life regulated entity'';
                    (E) in paragraph (7)(A)(iv)--
                            (i) in the matter preceding subclause (I), 
                        by inserting ``the Agency determines that such 
                        actions are necessary to'' after ``that do not 
                        comply with this clause, if''; and
                            (ii) by striking subclauses (I) and (II) 
                        and inserting the following:
                                    ``(I) maximize the value of the 
                                assets of the regulated entity;
                                    ``(II) maximize the present value 
                                return from the sale or other 
                                disposition of the assets of the 
                                regulated entity;
                                    ``(III) initiate and continue 
                                operations essential to the 
                                implementation of the limited-life 
                                regulated entity;
                                    ``(IV) minimize the amount of any 
                                loss realized upon the sale or other 
                                disposition of the assets of the 
                                regulated entity;
                                    ``(V) preserve the financial 
                                stability of the United States; and
                                    ``(VI) ensure that all creditors 
                                that are similarly situated under 
                                subsection (c)(1) receive not less than 
                                the amount provided in subsection 
                                (f)(2).''; and
                    (F) in paragraph (11)(C)--
                            (i) in clause (i), in the matter preceding 
                        subclause (I), by striking ``(other than 
                        mortgages that collateralize the mortgage-
                        backed securities issued or guaranteed by an 
                        enterprise)''; and
                            (ii) by inserting at the end the following:
                            ``(ii) Hearing.--The hearing required 
                        pursuant to this subparagraph shall be before a 
                        court of the United States, which shall have 
                        jurisdiction to conduct such hearing and to 
                        authorize the limited-life regulated entity to 
                        obtain secured credit under clause (i).''; and
            (11) by striking subsection (k)(relating to charter 
        revocation), as so designated by Public Law 110-289.
    (c) Rule of Construction.--Nothing in this Act, or any amendments 
made by this Act, except as may be explicitly provided for in this Act, 
or any amendment made by this Act, shall be deemed to alter the powers, 
authorities, rights, or duties that are vested in the Federal Housing 
Finance Agency or the Director thereof with respect to supervision and 
regulation of the enterprises, until such time as the Federal Housing 
Finance Agency and the position of the Director are transferred in 
accordance with title IV of this Act.

SEC. 604. WIND DOWN.

    (a) Authority of FHFA Director.--
            (1) In general.--Beginning on the date of enactment of this 
        Act and ending on the system certification date, the FHFA 
        Director, in consultation with the Corporation, shall take such 
        action, and may prescribe such regulations and procedures, as 
        may be necessary 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.
            (2) Limitation.--Notwithstanding any authority granted to 
        the FHFA Director under paragraph (1)--
                    (A) the sale, exchange, license, or other 
                disposition of any asset for value subject to the wind 
                down required under this section shall be prohibited, 
                if the Corporation--
                            (i) in its discretion determines that such 
                        sale, exchange, license, or disposition would 
                        materially interfere with the ability of the 
                        Corporation to carry out the requirements of 
                        this Act; and
                            (ii) notifies, in writing, the FHFA 
                        Director within 14 days of such determination; 
                        and
                    (B) the Corporation may direct the conservator of 
                the enterprises to sell, exchange, license, or 
                otherwise dispose of any asset for value subject to the 
                wind down required under this section, if the Board of 
                Directors certifies by a majority vote that--
                            (i) not completing such sale, transfer, 
                        exchange, license, or other disposition for 
                        value would be inconsistent with the transition 
                        plan approved pursuant to section 602; and
                            (ii) such sale, transfer, exchange, 
                        license, or disposition for value would not 
                        violate the duties of the conservator.
    (b) Authority of Corporation.--Beginning on the system 
certification date, the Corporation shall take such action, and may 
prescribe such regulations and procedures, as may be necessary 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.
    (c) Resolution Plan.--
            (1) In general.--Each enterprise shall develop a resolution 
        plan in order to facilitate an orderly transition to the new 
        housing finance system authorized by this Act.
            (2) Timing.--Each resolution plan required to be developed 
        under paragraph (1) shall be submitted to the FHFA Director not 
        later than 90 days after the agency transfer date.
            (3) Contents of plans.--Each resolution plan required to be 
        developed under paragraph (1) shall include a full description 
        and valuation of the assets, liabilities, and contractual 
        obligations of the enterprise, and any other information that 
        the FHFA Director may require.
            (4) Retention of authority.--Notwithstanding any provision 
        of a resolution plan required to be developed under paragraph 
        (1), the Federal Housing Finance Agency and the Corporation 
        shall retain and exercise full discretion to the extent that 
        either the Agency or the Corporation utilizes or relies on such 
        a resolution plan, either in whole or in part, in fulfilling 
        any duty or responsibility required by this Act.
            (5) Public summary.--After reviewing each resolution plan 
        required to be developed under paragraph (1), the Corporation 
        shall make available to the public a summary of each such 
        resolution plan.
            (6) Valuation study.--After reviewing each resolution plan 
        required to be developed under paragraph (1), the Corporation 
        shall conduct a valuation study of each enterprise's business 
        segments, including any technology, business unit, legacy book, 
        and other assets and liabilities that may be sold for value in 
        a manner consistent with the purposes and requirements of this 
        Act.
    (d) Prohibition on New Business.--
            (1) Federal national mortgage association.--
                    (A) New business prohibited.--Effective on the 
                system certification date, the Federal National 
                Mortgage Association shall have no authority to conduct 
                new business under the Federal National Mortgage 
                Association Charter Act.
                    (B) New business defined.--For purposes of 
                subparagraph (A), the term ``new business'' means any 
                new--
                            (i) purchase of, servicing of, or dealing 
                        in any insured or conventional mortgages by the 
                        Federal National Mortgage Association under 
                        section 302(b) of the Federal National Mortgage 
                        Association Charter Act (12 U.S.C. 1717(b));
                            (ii) purchase of a mortgage by the Federal 
                        National Mortgage Association in its secondary 
                        mortgage market operations under section 304(a) 
                        of the Federal National Mortgage Association 
                        Charter Act (12 U.S.C. 1719(a));
                            (iii) issue of an obligation of the Federal 
                        National Mortgage Association under section 
                        304(b) of the Federal National Mortgage 
                        Association Charter Act (12 U.S.C. 1719(b)), 
                        including--
                                    (I) bonds, notes, debentures, and 
                                other similar instruments;
                                    (II) capital lease obligations;
                                    (III) obligations in respect of 
                                letters of credit, bankers acceptances, 
                                or other similar instruments;
                                    (IV) guarantees of new securities 
                                based on mortgages set aside; and
                                    (V) swap, security-based swap, 
                                derivative product, or other similar 
                                instrument;
                            (iv) setting aside of any mortgages held by 
                        the Federal National Mortgage Association and 
                        any new issue and sale of securities based on 
                        the mortgages so set aside under section 304(d) 
                        of the Federal National Mortgage Association 
                        Charter Act (12 U.S.C. 1719(d)); and
                            (v) issue of a subordinated obligation of 
                        the Federal National Mortgage Association under 
                        section 304(e) of the Federal National Mortgage 
                        Association Charter Act (12 U.S.C. 1719(e)).
                    (C) Exclusion from new business.--The term ``new 
                business'' shall not include any new--
                            (i) purchase by the Federal National 
                        Mortgage Association of a non-performing 
                        mortgage from a pool of mortgages previously 
                        set aside by the enterprise;
                            (ii) issue of an obligation of the Federal 
                        National Mortgage Association if, after giving 
                        effect to the issuance, the aggregate amount of 
                        such obligations does not exceed 120 percent of 
                        the amount of mortgage assets permitted to be 
                        owned by the enterprise under section 605;
                            (iii) setting aside of mortgages previously 
                        set aside by the Federal National Mortgage 
                        Association, or any new issue and sale of 
                        securities based on the mortgages so previously 
                        set aside, to refund or replace an outstanding 
                        issue of securities based on mortgages 
                        previously set aside, if the face amount of the 
                        refunding or replacing mortgage-backed 
                        securities does not exceed the face amount of 
                        the mortgage-backed securities being refunded 
                        or replaced;
                            (iv) transfer of guarantees of mortgage-
                        backed securities guaranteed by the Federal 
                        National Mortgage Association if the mortgage 
                        loans collateralizing such securities are 
                        refinanced, regardless of the value of the 
                        underlying collateral and the homeowner's 
                        current employment status and income; or
                            (v) entry into any swap, security-based 
                        swap, or other similar instrument, or purchase 
                        of sale of any derivative product, or other 
                        similar instrument, to facilitate the orderly 
                        wind down of the Federal National Mortgage 
                        Association and appropriate loss mitigation on 
                        any outstanding guarantees of the Federal 
                        National Mortgage Association under section 
                        605.
                    (D) New business prohibition not to affect 
                outstanding enterprise debt or guarantees.--Nothing in 
                subparagraph (A) shall adversely affect the rights and 
                obligations of any holders of--
                            (i) outstanding debt obligations of the 
                        Federal National Mortgage Association, 
                        including any--
                                    (I) bonds, notes, debentures, or 
                                other similar instruments;
                                    (II) capital lease obligations;
                                    (III) obligations in respect of 
                                letters of credit, bankers' 
                                acceptances, or other similar 
                                instruments; or
                                    (IV) swap, security-based swap, 
                                derivative product, or other similar 
                                instrument; or
                            (ii) mortgage-backed securities guaranteed 
                        by the Federal National Mortgage Association.
            (2) Federal home loan mortgage corporation.--
                    (A) New business prohibited.--Effective on the 
                system certification date, the Federal Home Loan 
                Mortgage Corporation shall have no authority to conduct 
                new business under the Federal Home Loan Mortgage 
                Corporation Act.
                    (B) New business defined.--For purposes of 
                subparagraph (A), the term ``new business'' means any 
                new--
                            (i) purchase of, servicing of, or dealing 
                        in any insured or conventional mortgages by the 
                        Federal Home Loan Mortgage Corporation under 
                        section 305(a) of the Federal Home Loan 
                        Mortgage Corporation Act (12 U.S.C. 1454(a));
                            (ii) issue of an obligation of the Federal 
                        Home Loan Mortgage Corporation under section 
                        306(a) of the Federal Home Loan Mortgage 
                        Corporation Act (12 U.S.C. 1455(a)), 
                        including--
                                    (I) bonds, notes, debentures, and 
                                other similar instruments;
                                    (II) capital lease obligations;
                                    (III) obligations in respect of 
                                letters of credit, bankers acceptances, 
                                or other similar instruments;
                                    (IV) guarantees of new securities 
                                based on mortgages set aside; and
                                    (V) swap, security-based swap, 
                                derivative product, or other similar 
                                instrument;
                            (iii) issue of mortgage-backed securities 
                        under the Federal Home Loan Mortgage 
                        Corporation Act; and
                            (iv) issue of a subordinated obligation of 
                        the Federal Home Loan Mortgage Corporation 
                        under the Federal Home Loan Mortgage 
                        Corporation Act.
                    (C) Exclusion from new business.--The term ``new 
                business'' shall not include any new--
                            (i) purchase by the Federal Home Loan 
                        Mortgage Corporation of a non-performing 
                        mortgage from a pool of mortgages previously 
                        set aside by the enterprise;
                            (ii) issue of an obligation of the Federal 
                        Home Loan Mortgage Corporation if, after giving 
                        effect to the issuance, the aggregate amount of 
                        such obligations does not exceed 120 percent of 
                        the amount of mortgage assets permitted to be 
                        owned by the enterprise under section 605;
                            (iii) issue of mortgage-backed securities, 
                        to refund or replace an outstanding issue of 
                        mortgage-backed securities, if the face amount 
                        of the refunding or replacing mortgage-backed 
                        securities does not exceed the face amount of 
                        the mortgage-backed securities being refunded 
                        or replaced;
                            (iv) transfer of guarantees of mortgage-
                        backed securities guaranteed by the Federal 
                        Home Loan Mortgage Corporation if the mortgage 
                        loans collateralizing such securities are 
                        refinanced, regardless of the value of the 
                        underlying collateral and the homeowner's 
                        current employment status and income; or
                            (v) entry into any swap, security-based 
                        swap, or other similar instrument, or purchase 
                        of sale of any derivative product, or other 
                        similar instrument, to facilitate the orderly 
                        wind down of the Federal Home Loan Mortgage 
                        Corporation and appropriate loss mitigation on 
                        any outstanding guarantees of the Federal Home 
                        Loan Mortgage Corporation under section 605.
                    (D) New business prohibition not to affect 
                outstanding enterprise debt or guarantees.--Nothing in 
                subparagraph (A) shall adversely affect the rights and 
                obligations of any holders of--
                            (i) outstanding debt obligations of the 
                        Federal Home Loan Mortgage Corporation, 
                        including any--
                                    (I) bonds, notes, debentures, or 
                                other similar instruments;
                                    (II) capital lease obligations;
                                    (III) obligations in respect of 
                                letters of credit, bankers' 
                                acceptances, or other similar 
                                instruments; or
                                    (IV) swap, security-based swap, 
                                derivative product, or other similar 
                                instrument; or
                            (ii) mortgage-backed securities guaranteed 
                        by the Federal Home Loan Mortgage Corporation.
            (3) Rule of construction.--The prohibition on new business 
        by the Federal National Mortgage Association and the Federal 
        Home Loan Mortgage Corporation set forth in paragraphs (1) and 
        (2) shall not prohibit, nor be construed to prohibit, the 
        Corporation from managing such entity.
            (4) 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), 
                including any obligation issued on or after the system 
                certification date to refund or replace an obligation 
                that was outstanding on the day before the system 
                certification date.
                    (B) Loan eligibility.--The enterprises shall 
                include as eligible loans for the purposes of 
                refinancing all current loans that qualify as eligible 
                mortgage loans and meet those underwriting requirements 
                for eligibility for same servicer refinancing, except 
                that the enterprises may not disqualify or impose 
                varying rules based on loan-to-value, combined loan-to-
                value, employment status, or income with regard to 
                refinancing mortgage loans that collateralize mortgage-
                backed securities issued by an enterprise prior to the 
                system certification date.
                    (C) Continued dividend payments.--Notwithstanding 
                the provisions of this section or any other provision 
                of law, provision 2(a) (relating to Dividend Payment 
                Dates and Dividend Periods) and provision 2(c) 
                (relating to Dividend Rates and Dividend Amount) of the 
                Senior Preferred Stock Purchase Agreement, or any 
                provision of any certificate in connection with such 
                Agreement creating or designating the terms, powers, 
                preferences, privileges, limitations, or any other 
                conditions of the Variable Liquidation Preference 
                Senior Preferred Stock of an enterprise issued pursuant 
                to such Agreement--
                            (i) shall not be amended, restated, or 
                        otherwise changed to reduce the rate or amount 
                        of dividends in effect pursuant to such 
                        Agreement as of the Third Amendment to such 
                        Agreement dated August 17, 2012, except that 
                        any amendment to such Agreement shall be 
                        permitted if it facilitates the sale of assets 
                        of the enterprises to facilitate compliance 
                        with this title; and
                            (ii) shall remain in effect until the 
                        guarantee obligations described under 
                        paragraphs (1) and (2) are fully extinguished.
                    (D) Applicability.--Notwithstanding the provisions 
                of this section, all guarantee fee amounts derived from 
                the mortgage guarantee business of the enterprises in 
                existence as of the system certification date, after 
                satisfying the fee amounts required to be collected by 
                section 1327 of the Safety and Soundness Act (12 U.S.C. 
                4547), shall be subject to the terms of the Senior 
                Preferred Stock Purchase Agreement.
    (e) Charters Revoked.--Effective upon the date the guarantee 
obligations under subsection (d)(4)(A) are fully extinguished:
            (1) The Federal National Mortgage Association Charter Act 
        is repealed, except as the provisions of such Act relate to the 
        establishment, purposes, powers, authorities, duties, 
        supervision, administration, and management of the Government 
        National Mortgage Association.
            (2) The Federal Home Loan Mortgage Corporation Act is 
        repealed.
    (f) Authority to Insure Outstanding Mortgage-backed Securities; 
Mortgage-backed Securities of the Enterprises.--
            (1) Authority to insure mortgage-backed securities; 
        authority to develop enterprise mortgage-backed securities.--
        After the agency transfer date, and subject to such procedures, 
        standards, terms, and conditions as may be adopted by the 
        Corporation under paragraph (2), the Corporation may--
                    (A) upon application and in exchange for a fee 
                determined by the Corporation, provide insurance on 
                outstanding mortgage-backed securities issued by the 
                enterprises; and
                    (B) facilitate, including through the operations of 
                the enterprises or the utilization of the Platform, 
                the--
                            (i) exchange of mortgage-backed securities 
                        issued by either enterprise for covered 
                        securities;
                            (ii) exchange of mortgage-backed securities 
                        issued by 1 enterprise for those of the other 
                        enterprise;
                            (iii) issuance of mortgage-backed 
                        securities by both enterprises through a single 
                        issuer; and
                            (iv) issuance of real estate mortgage 
                        investment conduit securities, consisting of 
                        mortgage-backed securities issued by the 
                        enterprises.
            (2) Development of procedures, standards, terms, and 
        conditions.--The Corporation shall develop and adopt 
        procedures, standards, terms, and conditions to enable the 
        Corporation and each of the enterprises, as applicable, to 
        implement each of the activities described in paragraph (1).
            (3) Required procedures, standards, terms, and 
        conditions.--In the development and adoption of the procedures, 
        standards, terms, and conditions required under paragraph (2), 
        the Corporation shall consider the effect of each activity with 
        respect to the following:
                    (A) Lender access to the secondary mortgage market.
                    (B) The liquidity and trading price of existing 
                enterprise mortgage-backed securities.
                    (C) The ability of market participants and the 
                enterprises to issue new mortgage-backed securities.
                    (D) The cost to the enterprises or the Corporation 
                to exchange, restructure, or insure mortgage-backed 
                securities.
    (g) Report to Congress.--
            (1) In general.--Prior to the agency transfer date, the 
        FHFA Director shall submit a study considering the feasibility 
        of activities described in subsection (f)(1) to--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (B) the Committee on Financial Services of the 
                House of Representatives; and
                    (C) the Corporation.
            (2) Updates.--Following the agency transfer date, the 
        Corporation shall provide updates on the activities described 
        in subsection (f)(1) in the transition plan (and in each annual 
        update thereof) required under section 602.
    (h) Division of Assets and Liabilities; Authority to Establish 
Holding Companies, Trusts, and Subsidiaries.--
            (1) In general.--The action and procedures required under 
        subsection (a)--
                    (A) shall include the establishment and execution 
                of plans to manage assets toward the liquidation of 
                liabilities and provide for an equitable division, 
                distribution, and liquidation of the assets and 
                liabilities of an enterprise, including any 
                infrastructure, property, including intellectual 
                property, historic data, platforms, or any other thing 
                or object of value, provided such plan complies with 
                the requirements of this Act and any amendments made by 
                this Act;
                    (B) may provide for the establishment of--
                            (i) 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 or both enterprises;
                            (ii) 1 or more trusts to which to 
                        transfer--
                                    (I) outstanding debt obligations of 
                                an enterprise or both enterprises; or
                                    (II) outstanding mortgages held for 
                                the purpose of collateralizing 
                                mortgage-backed securities guaranteed 
                                by an enterprise or both enterprises; 
                                and
                            (iii) 1 or more subsidiaries or joint 
                        ventures with private entities for the purposes 
                        of facilitating an orderly wind down of one 
                        enterprise or both enterprises and the 
                        transition to the new housing finance system;
                    (C) may include the sale as a going concern of any 
                holding company, trust, subsidiary, or joint venture 
                with a private entity established by an enterprise 
                under this subsection; and
                    (D) may provide that any holding company, trust, 
                subsidiary, or joint venture sold as a going concern 
                may be utilized to facilitate the formation of--
                            (i) a small lender mutual under section 
                        315;
                            (ii) an approved guarantor;
                            (iii) an approved multifamily guarantor;
                            (iv) an approved aggregator; or
                            (v) the Securitization Platform.
            (2) Rule of construction.--Any holding company, trust, 
        subsidiary, or joint venture established by an enterprise 
        before or after the agency transfer date is eligible to be sold 
        by the Federal Housing Finance Agency as a going concern for 
        the purposes described in this section.
    (i) Recoupment by Senior Preferred Shareholders.--
            (1) Maximum return to senior preferred shareholders.--The 
        wind down of each enterprise required under this section shall 
        be managed by the Corporation to obtain resolutions that 
        maximize the return for the senior preferred shareholders, to 
        the extent that such resolutions--
                    (A) are consistent with the goals of facilitating--
                            (i) a deep, liquid, and resilient secondary 
                        mortgage market for single-family and 
                        multifamily mortgage-backed securities in order 
                        to support access to mortgage credit in the 
                        primary mortgage market; and
                            (ii) an orderly transition from housing 
                        finance markets facilitated by the enterprises 
                        to housing finance markets facilitated by the 
                        Corporation with minimum disruption in the 
                        availability of mortgage credit;
                    (B) are consistent with applicable Federal and 
                State law;
                    (C) comply with the requirements of this Act and 
                the amendments made by this Act; and
                    (D) protect the taxpayer from having to absorb 
                losses incurred in the secondary mortgage market.
            (2) Sale of certain assets as a going concern.--
                    (A) Sale for value.--If the Federal Housing Finance 
                Agency makes the determinations in subparagraph (B), 
                the Federal Housing Finance Agency may conduct a sale, 
                exchange, license, or other disposition for value of 
                any line of business of an enterprise, or any function, 
                activity, asset, intellectual property, or service of 
                an enterprise, as a going concern.
                    (B) Required determinations.--A sale under 
                subparagraph (A) is permitted if the Federal Housing 
                Finance Agency determines that the sale, exchange, 
                license, or other disposition for value--
                            (i) is consistent with the goal of an 
                        orderly transition from housing finance markets 
                        facilitated by the enterprises to housing 
                        finance markets facilitated by the Corporation 
                        with minimum disruption in the availability of 
                        mortgage credit;
                            (ii) does not impede or otherwise interfere 
                        with the ability of the Federal Housing Finance 
                        Agency or the Corporation to carry out the 
                        functions and requirements of this Act;
                            (iii) does not transfer, convey, or 
                        authorize any guarantee or Federal support, 
                        assistance, or backing, implicit or explicit, 
                        related to any such business line, function, 
                        activity, or service;
                            (iv) will maximize the return for the 
                        senior preferred shareholders as required under 
                        paragraph (1); and
                            (v) would not result in an uncompetitive 
                        primary or secondary mortgage market or 
                        otherwise limit competitiveness in the primary 
                        or secondary mortgage markets.
                    (C) Sale of historic data.--The Federal Housing 
                Finance Agency shall conduct a sale for value of each 
                enterprise's historic data, including loan-level 
                historical performance data. In conducting such sale, 
                the Federal Housing Finance Agency may require that--
                            (i) the purchaser of the historic data is 
                        the Corporation or the Securitization Platform;
                            (ii) the purchaser of the historic data 
                        makes the historic data available to the public 
                        in a searchable and easily accessible format as 
                        promptly as practicable; and
                            (iii) the purchaser of the historic data 
                        takes appropriate steps to ensure the privacy 
                        of consumers, minimizes the collection and 
                        storage of personally identifiable financial 
                        information, and considers statutes, rules, and 
                        regulations relating to the privacy of consumer 
                        credit information and personally identifiable 
                        financial information.

SEC. 605. PORTFOLIO REDUCTION.

    (a) Graduated Reduction.--
            (1) In general.--On December 31 of the year after the date 
        of enactment of this Act, and on December 31 of each year 
        thereafter until each enterprise reaches the allowable size of 
        the retained single-family portfolio specified in paragraph 
        (2), each enterprise shall not own single-family mortgage loan 
        assets in excess of 85 percent of the aggregate amount of the 
        single-family mortgage loan assets that the enterprise was 
        permitted to own as of December 31 of the immediately preceding 
        calendar year.
            (2) Retained single-family portfolio to facilitate orderly 
        wind down.--Not later than the date on which the system 
        certification date occurs, the Corporation shall establish an 
        allowable amount of enterprise-owned single-family mortgage 
        loan assets in an amount equal to the amount necessary to 
        facilitate--
                    (A) the orderly wind down of the enterprises; and
                    (B) appropriate loss mitigation on any legacy 
                guarantees of the enterprises.
    (b) Mortgage Loan Assets Defined.--For purposes of this section, 
the term ``mortgage loan assets'' means, with respect to an enterprise, 
assets of such enterprise consisting of mortgage loans, mortgage-
related securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage loan investment 
conduits, and similar assets, in each case to the extent that 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).

SEC. 606. OVERSIGHT OF TRANSITION OF THE HOUSING FINANCE SYSTEM.

    (a) Testimony.--Beginning on the agency transfer date and ending on 
the system certification date, the Chairperson shall, on an annual 
basis, appear before the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services of the 
House of Representatives to provide testimony on the progress made in 
carrying out the requirements of this title.
    (b) Inspector General Report on Transition.--Beginning on the 
agency transfer date and ending on the system certification date, the 
Inspector General of the Federal Mortgage Insurance Corporation shall, 
on an annual basis--
            (1) submit a report to the Corporation and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives--
                    (A) on the status of the transition to the new 
                housing finance system authorized by this Act;
                    (B) that includes recommendations to facilitate an 
                orderly transition to the new housing finance system 
                authorized by this Act; and
                    (C) on the impact of various actions required by 
                this Act on borrowers and small mortgage lenders; and
            (2) appear before the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives to provide testimony 
        on the report required under paragraph (1).
    (c) GAO Report on Transition.--
            (1) In general.--Not later than 18 months after the system 
        certification date, the Comptroller General of the United 
        States shall conduct a study and submit a report to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives reviewing the transition required by this Act.
            (2) Contents of study.--In conducting the study required 
        under paragraph (1), the Comptroller General shall review--
                    (A) all property, including intellectual property, 
                of the enterprises that may have been sold, 
                transferred, or licensed for value pursuant to this 
                title or any amendment made by this title;
                    (B) the number and market share of each type of 
                approved entity; and
                    (C) the amount of any taxpayer repayment.

SEC. 607. AUTHORITY TO ESTABLISH PROVISIONAL STANDARDS.

    (a) Provisional Standards.--
            (1) In general.--Notwithstanding any standard required 
        under subtitle B of title III or section 703, the Corporation 
        may establish provisional standards for the approval of 
        approved entities in order to ensure the sufficient 
        participation of financially sound entities in the housing 
        finance system.
            (2) Period of effectiveness during transition.--The 
        Corporation is authorized to establish provisional standards 
        under paragraph (1) prior to the system certification date and 
        such provisional standards shall--
                    (A) be published in the Federal Register for notice 
                and comment; and
                    (B) remain in effect until the Corporation adopts 
                and publishes final standards for the approval of 
                approved entities pursuant to subtitle B of title III 
                or section 703.
            (3) Period of effectiveness during unusual and exigent 
        circumstances.--The Corporation is authorized to establish 
        provisional standards under paragraph (1) during periods when 
        the authority of the Corporation under section 305 is exercised 
        and such provisional standards shall--
                    (A) be published in the Federal Register; and
                    (B) remain in effect until the final date of the 
                timeline established by the Corporation pursuant to 
                section 305(h)(1).
            (4) Rule of construction.--Nothing in paragraph (2) shall 
        be construed to allow the Corporation to delay or otherwise not 
        implement subsection (c) in the required timeframe.
    (b) Oversight of Approved Entities.--During any period in which a 
provisional standard is in effect pursuant to subsection (a), the 
Corporation shall maintain all oversight and enforcement authorities 
with regard to approved entities in accordance with the requirements 
and authorities of subtitles B and C of title III and section 703.
    (c) Phase-in of Capital Standards for Approved Guarantors.--
            (1) In general.--The requirement under section 311(g)(1)(A) 
        shall take effect on the date that is 8 years after the date 
        that the Corporation approves the first approved guarantor 
        under this section.
            (2) Phase-in.--Beginning on the date that the Corporation 
        approves the first approved guarantor under this section and 
        ending on the date set forth under paragraph (1), the 
        Corporation shall--
                    (A) require an approved guarantor to maintain an 
                appropriate level of capital necessary to help ensure 
                an orderly transition pursuant to this title; and
                    (B) increase annually, in equal increments, the 
                required amount of capital to be held by the approved 
                guarantor.
            (3) Applicability.--Each capital level required to be held 
        by an approved guarantor under this section, including each 
        annual increase pursuant to paragraph (2)(B), shall only be 
        applicable with respect to new business being guaranteed by an 
        approved guarantor on and after the date each capital level 
        becomes effective.
    (d) Phase-in of Capital Standards for Multifamily Approved 
Guarantors.--
            (1) In general.--The requirement under section 703(h)(1)(A) 
        shall take effect on the date that is 8 years after the date 
        that the Corporation approves the first multifamily approved 
        guarantor under this section.
            (2) Phase-in.--Beginning on the date that the Corporation 
        approves the first approved multifamily guarantor under this 
        section and ending on the date set forth under paragraph (1), 
        the Corporation shall--
                    (A) require an approved multifamily guarantor to 
                maintain an appropriate level of capital necessary to 
                help ensure an orderly transition pursuant to this 
                title; and
                    (B) increase annually, in equal increments, the 
                required amount of capital to be held by the approved 
                multifamily guarantor.
            (3) Applicability.--Each capital level required to be held 
        by an approved multifamily guarantor under this section, 
        including each annual increase pursuant to paragraph (2)(B), 
        shall only be applicable with respect to new business being 
        guaranteed by an approved multifamily guarantor on and after 
        the date each capital level becomes effective.

SEC. 608. INITIAL FUND LEVEL FOR THE MORTGAGE INSURANCE FUND.

    (a) Fund Amount on System Certification Date.--The Corporation 
shall endeavor to ensure that the Mortgage Insurance Fund established 
under section 303 attains a reserve ratio of 0.75 percent of the sum of 
the outstanding principal balance of the covered securities for which 
insurance is projected to be provided under this Act for the 5-year 
period beginning on the system certification date.
    (b) Report to Congress on Projection.--The projection required 
under subsection (a) shall be--
            (1) determined by the Corporation; and
            (2) reported to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives.
    (c) Assessments.--Pursuant to the authorities granted to the 
Corporation under section 1316(i) of the Safety and Soundness Act, as 
added by section 405, the amount of funds required to be held by the 
Mortgage Insurance Fund under subsection (a) shall be acquired through 
assessments on the enterprises. The assessments required under this 
subsection shall be in effect for the period beginning on the date of 
enactment of this Act and ending on the system certification date. The 
assessments required under this subsection shall be deposited in the 
Mortgage Insurance Fund.

SEC. 609. GAO REPORT ON FULL PRIVATIZATION OF SECONDARY MORTGAGE 
              MARKET.

    (a) GAO Report.--Not later than 8 years after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
a report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House of 
Representatives on the feasibility of transitioning to and creating a 
fully privatized secondary mortgage market, including recommendations 
on how to best carry out any displacement of the insurance model 
established under this Act, and an assessment of the cost of mortgage 
credit and the impact on the economy if the secondary mortgage market 
is fully privatized.
    (b) Corporation Plan.--Not later than 6 months after the date on 
which the report required under subsection (a) is submitted, the 
Corporation shall submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representatives a description of the legislative, 
administrative, and regulatory actions necessary to implement the 
recommendations of the report.

                         TITLE VII--MULTIFAMILY

SEC. 701. ESTABLISHMENT OF MULTIFAMILY SUBSIDIARIES.

    (a) Formation and Governance of Multifamily Subsidiaries.--
            (1) Federal national mortgage association.--
                    (A) Multifamily subsidiary plan.--The FHFA 
                Director, in consultation with the Secretary of the 
                Treasury, shall direct the Federal National Mortgage 
                Association to develop a plan, not later than 180 days 
                after the date of enactment of this Act, to establish a 
                multifamily subsidiary for purposes of expeditiously 
                meeting the multifamily market minimum criteria 
                required under section 601.
                    (B) Establishment of multifamily subsidiary.--
                Pursuant to section 604, the Federal Housing Finance 
                Agency shall direct the Federal National Mortgage 
                Association to establish a multifamily subsidiary not 
                later than 1 year after the date of enactment of this 
                Act.
            (2) Federal home loan mortgage corporation.--
                    (A) Multifamily subsidiary plan.--The FHFA 
                Director, in consultation with the Secretary of the 
                Treasury, shall direct the Federal Home Loan Mortgage 
                Corporation to develop a plan, not later than 180 days 
                after the date of enactment of this Act, to establish a 
                multifamily subsidiary for purposes of expeditiously 
                meeting the multifamily market minimum criteria 
                required under section 601.
                    (B) Establishment of multifamily subsidiary.--
                Pursuant to section 604, the Federal Housing Finance 
                Agency shall direct the Federal Home Loan Mortgage 
                Corporation to establish a multifamily subsidiary not 
                later than 1 year after the date of enactment of this 
                Act.
    (b) Transfer of Functions.--
            (1) Fannie mae multifamily subsidiary.--
                    (A) In general.--Notwithstanding the provisions 
                under title VI or any other provision of law, effective 
                on the date on which the multifamily subsidiary is 
                established under subsection (a)(1)(B), all employees, 
                functions, activities, infrastructure, property, 
                including the Delegated Underwriting and Servicing 
                Lender Program and other intellectual property, 
                platforms, technology, or any other object or service 
                of the Federal National Mortgage Association necessary 
                to the support, maintenance, and operation of the 
                multifamily business of the Federal National Mortgage 
                Association shall be transferred and contributed, 
                without cost, to the multifamily subsidiary.
                    (B) Capital contribution.--In connection with the 
                transfer required under subparagraph (A), the Federal 
                National Mortgage Association shall contribute, in any 
                form or manner the Federal Housing Finance Agency may 
                determine, subject to the approval right of the 
                Secretary of the Treasury in the Senior Preferred Stock 
                Purchase Agreement, any capital necessary to ensure 
                that the multifamily subsidiary established under 
                subsection (a)(1)(B) has, in the determination of the 
                FHFA Director, sufficient capital to carry out its 
                multifamily business, including the ability to obtain 
                warehouse lines of credit.
                    (C) Ensuring continuation of ongoing operation of 
                multifamily business.--In carrying out the multifamily 
                business transferred pursuant to subparagraph (A), the 
                multifamily subsidiary established under subsection 
                (a)(1)(B) shall ensure that any such business continues 
                to operate, as applicable, consistent with--
                            (i) the Delegated Underwriting and 
                        Servicing Lender Program established by the 
                        Federal National Mortgage Association;
                            (ii) any other programs, activities, and 
                        contractual agreements of the enterprises that 
                        support the enterprises' provision of liquidity 
                        to the multifamily housing market; and
                            (iii) the provisions of this title.
            (2) Freddie mac multifamily subsidiary.--
                    (A) In general.--Notwithstanding the provisions 
                under title VI or any other provision of law, effective 
                on the date on which the multifamily subsidiary is 
                established under subsection (a)(2)(B), all employees, 
                functions, activities, infrastructure, property, 
                including the K Series Structured Pass-Through 
                Certificates originated and offered under the Program 
                Plus Lender Program and other intellectual property, 
                platforms, technology, or any other object or service 
                of the Federal Home Loan Mortgage Corporation necessary 
                to the support, maintenance, and operation of the 
                multifamily business of the Federal Home Loan Mortgage 
                Corporation shall be transferred and contributed, 
                without cost, to the multifamily subsidiary.
                    (B) Capital contribution.--In connection with the 
                transfer required under subparagraph (A), the Federal 
                Home Loan Mortgage Corporation shall contribute, in any 
                form or manner the Federal Housing Finance Agency may 
                determine, subject to the approval right of the 
                Secretary of the Treasury in the Senior Preferred Stock 
                Purchase Agreement, any capital necessary to ensure 
                that the multifamily subsidiary established under 
                subsection (a)(2)(B) has, in the determination of the 
                FHFA Director, sufficient capital to carry out its 
                multifamily business, including the ability to obtain 
                warehouse lines of credit.
                    (C) Ensuring continuation of ongoing operation of 
                multifamily business.--In carrying out the multifamily 
                business transferred pursuant to subparagraph (A), the 
                multifamily subsidiary established under subsection 
                (a)(2)(B) shall ensure that any such business continues 
                to operate, as applicable, consistent with--
                            (i) the K Series Structured Pass-Through 
                        Certificates originated and offered under the 
                        Program Plus Lender Program established by the 
                        Federal Home Loan Mortgage Corporation;
                            (ii) any other programs, activities, and 
                        contractual agreements of the enterprises that 
                        support the enterprises' provision of liquidity 
                        to the multifamily housing market; and
                            (iii) the provisions of this title.
    (c) Multifamily Subsidiaries.--
            (1) In general.--The multifamily subsidiaries established 
        by the Federal National Mortgage Association and the Federal 
        Home Loan Mortgage Corporation under subsection (a) may retain 
        a limited multifamily mortgage loan portfolio to--
                    (A) aggregate mortgage loans for pooled securities 
                executions;
                    (B) implement pilot mortgage loan programs and 
                other risk-sharing transactions and product 
                modification testing;
                    (C) engage in the financing of properties with 
                rent-regulatory restrictions, off-campus student 
                housing, and senior and assisted living developments; 
                and
                    (D) perform additional activities as may be 
                established by the Corporation for the purpose of 
                facilitating the continuation of existing multifamily 
                activities.
            (2) Portfolio reduction applicability.--For purposes of 
        expeditiously meeting the multifamily market minimum criteria 
        required under section 601, the multifamily subsidiaries 
        established under subsection (a) shall not be subject to the 
        portfolio reduction required under section 605.

SEC. 702. DISPOSITION OF MULTIFAMILY BUSINESSES.

    (a) Authority to Manage Disposition of Multifamily Businesses.--
Notwithstanding any provision of title VI or any other provision of 
law, the Federal Housing Finance Agency may, on or before the system 
certification date, manage the sale, transfer, or disposition for value 
of property, including intellectual property, technology, platforms, 
and legacy systems, infrastructure and processes of an enterprise 
relating to the operation and maintenance of the multifamily business 
of an enterprise.
    (b) Required Establishment of Well-functioning Multifamily Covered 
Security Market.--In exercising the authority in subsection (a), the 
Federal Housing Finance Agency shall manage any disposition of the 
multifamily business of an enterprise in a manner consistent with--
            (1) the establishment of a well-functioning multifamily 
        covered security market;
            (2) the provision of broad access to multifamily financing; 
        and
            (3) facilitating competition in the multifamily covered 
        security market by--
                    (A) providing open access to performance 
                information on the legacy multifamily business of an 
                enterprise;
                    (B) providing for reasonable licensing of the 
                multifamily proprietary systems of an enterprise; and
                    (C) setting market share limitations, fees, or 
                additional capital standards on multifamily business 
                assets that were sold, transferred, or disposed.

SEC. 703. APPROVAL AND SUPERVISION OF MULTIFAMILY GUARANTORS.

    (a) Standards for Approval of Multifamily Guarantors.--
            (1) In general.--The Corporation shall develop, adopt, and 
        publish standards for the approval by the Corporation of 
        multifamily guarantors to--
                    (A) issue multifamily covered securities; and
                    (B) guarantee the timely payment of principal and 
                interest on multifamily covered securities 
                collateralized by eligible multifamily mortgage loans 
                and insured by the Corporation.
            (2) Required standards.--The standards required under 
        paragraph (1) shall include--
                    (A) the financial history and condition of the 
                multifamily guarantor;
                    (B) a requirement that the multifamily guarantor 
                maintain capital levels as defined by the Corporation, 
                pursuant to subsection (h);
                    (C) the capability of the management of the 
                multifamily guarantor;
                    (D) the general character and fitness of the 
                officers and directors of the multifamily guarantor, 
                including the compliance history of the multifamily 
                guarantor's officers and directors with Federal and 
                State laws and the rules and regulations promulgated by 
                self-regulatory organizations (as defined in section 
                3(a)(26) of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c(a)(26)), as applicable;
                    (E) the risk presented by the multifamily guarantor 
                to the Mortgage Insurance Fund;
                    (F) the adequacy of insurance and fidelity coverage 
                of the multifamily guarantor;
                    (G) the ability of the multifamily guarantor to--
                            (i) ensure that eligible multifamily 
                        mortgage loans that collateralize a multifamily 
                        covered security insured under this Act are 
                        originated in compliance with the requirements 
                        of this Act;
                            (ii) oversee multifamily servicers and 
                        specialty servicers conducting servicing 
                        activities on eligible multifamily mortgage 
                        loans, which may be governed under the terms of 
                        seller-servicer guides in effect at either of 
                        the enterprises on the date of enactment of 
                        this Act; and
                            (iii) oversee counterparties in credit 
                        risk-sharing transactions;
                    (H) the capacity of the multifamily guarantor to 
                take the first loss position, pari passu position, or 
                transfer investment risk and credit risk to private 
                market holders;
                    (I) that the multifamily guarantor has the capacity 
                to guarantee eligible multifamily mortgage loans in a 
                manner that furthers the purposes of the Corporation as 
                described in section 201(b)(5);
                    (J) a requirement that the multifamily guarantor 
                submit audited financial statements to the Corporation;
                    (K) that the multifamily guarantor does not 
                originate eligible multifamily mortgage loans and is 
                not an affiliate of a person that actively engages in 
                the business of originating eligible multifamily 
                mortgage loans; and
                    (L) a requirement that the multifamily guarantor 
                has the capacity to meet the requirement of section 
                704.
            (3) Consultation and coordination.--To promote consistency 
        and minimize regulatory conflict, the Corporation shall consult 
        and coordinate with appropriate Federal and State regulators 
        and officials when developing standards pursuant to this 
        subsection.
    (b) Application and Approval.--
            (1) Application process.--
                    (A) In general.--The Corporation shall establish an 
                application process, in such form and manner and 
                requiring such information as the Corporation may 
                require, for the approval of a multifamily guarantor 
                under this section.
                    (B) Application review.--The Corporation shall 
                establish internal timelines for its processing of an 
                application under this section, including timelines for 
                any action to approve or to deny an application under 
                this section.
                    (C) Prohibition on control by insured depository 
                institutions or affiliates of insured depository 
                institutions.--
                            (i) In general.--It shall be unlawful for 
                        an insured depository institution or an 
                        affiliate of an insured depository institution 
                        to control an approved multifamily guarantor.
                            (ii) Rule of construction regarding 
                        control.--For purposes of this subparagraph, 
                        any insured depository institution or affiliate 
                        of an insured depository institution has 
                        control over an approved multifamily guarantor 
                        if the company directly or indirectly or acting 
                        through 1 or more other persons owns, controls, 
                        or has power to vote 10 percent or more of any 
                        class of voting shares of the approved 
                        multifamily guarantor.
                    (D) Expedited application process.--The Corporation 
                may establish an expedited application process for an 
                applicant applying to become an approved multifamily 
                guarantor, provided that any such applicant--
                            (i) proposes to use a credit risk-sharing 
                        mechanism approved under subsection (c); and
                            (ii) otherwise meets the requirements of 
                        this section.
            (2) Approval.--The Corporation may approve any application 
        made pursuant to paragraph (1), provided the multifamily 
        guarantor meets the standards established under subsection (a).
            (3) Denial.--The Corporation shall have the authority to 
        deny any application made pursuant to paragraph (1) if an 
        officer or director of the multifamily guarantor has, at any 
        time prior to the date of the approval of such application, 
        been--
                    (A) subject to a statutory disqualification 
                pursuant to section 3(a)(39) of the Securities Exchange 
                Act of 1934 (15 U.S.C. 78c(a)(39)); or
                    (B) suspended, removed, or prohibited from 
                participation pursuant to section 8(g) of the Federal 
                Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited 
                from certain action pursuant to paragraphs (6) or (7) 
                of section 8(e) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(e)), subject to an action resulting in 
                a written agreement or other written statement under 
                section 8(u)(1) of the Federal Deposit Insurance Act 
                (12 U.S.C. 1818(u)(1)), for which a violation may be 
                enforced by an appropriate Federal banking agency, or 
                subject to any final order issued with respect to any 
                administrative enforcement proceeding initiated by such 
                agency under section 8 of the Federal Deposit Insurance 
                Act (12 U.S.C. 1818).
            (4) Notice and publication.--The Corporation shall--
                    (A) provide prompt notice to a multifamily 
                guarantor of the approval or denial of any application 
                of the multifamily guarantor to become an approved 
                multifamily guarantor under this section;
                    (B) publish a notice in the Federal Register upon 
                approval of any multifamily guarantor; and
                    (C) maintain an updated list of approved 
                multifamily guarantors on the website of the 
                Corporation.
    (c) Credit Risk-sharing Mechanisms.--
            (1) Consideration and approval.--The Corporation shall--
                    (A) consider and approve credit risk-sharing 
                mechanisms that may be employed by an approved 
                multifamily guarantor to manage the credit risk related 
                to guarantees provided for multifamily covered 
                securities; and
                    (B) approve any credit risk-sharing mechanism 
                undertaken by an enterprise as of the date of enactment 
                of this Act, including--
                            (i) the Delegated Underwriting and 
                        Servicing Lender Program established by the 
                        Federal National Mortgage Association;
                            (ii) the K Series Structured Pass-Through 
                        Certificates originated and offered under the 
                        Program Plus Lender Program established by the 
                        Federal Home Loan Mortgage Corporation;
                            (iii) any other program, activity, or 
                        contractual agreement of an enterprise that 
                        supports the enterprise's provision of 
                        liquidity to the multifamily housing market; 
                        and
                            (iv) any credit risk-sharing mechanism 
                        based on the mechanisms described in clause 
                        (i), (ii), or (iii), with modifications 
                        approved by the Corporation.
            (2) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to--
                    (A) prevent private market holders from taking a 
                first loss position on multifamily covered securities 
                guaranteed by an approved multifamily guarantor; or
                    (B) limit an approved multifamily guarantor from 
                engaging in other forms of risk-sharing using 
                mechanisms that have not been considered or approved by 
                the Corporation.
            (3) Report.--Each report required by section 302(b)(5) 
        shall include a description of each credit risk-sharing 
        mechanism approved by the Corporation pursuant to this 
        subsection.
            (4) Notice and publication.--The Corporation shall--
                    (A) provide prompt notice to any person seeking 
                approval for a credit risk-sharing mechanism of the 
                approval or denial of that credit risk-sharing 
                mechanism under this subsection; and
                    (B) make available updated information regarding 
                approved credit risk-sharing mechanisms on the website 
                of the Corporation.
            (5) Applicability of the commodity exchange act and 
        securities act of 1933.--
                    (A) Exemption from the commodity exchange act; 
                prior consultation required.--
                            (i) Exemption.--No counterparty that enters 
                        into a swap, as that term is defined in section 
                        1a of the Commodity Exchange Act (7 U.S.C. 1a), 
                        for purposes of structuring any credit risk-
                        sharing mechanism that is approved by the 
                        Corporation pursuant to this section, which 
                        credit risk-sharing mechanism is designed to be 
                        used or is used by a private market holder to 
                        assume losses and to reduce the specific risks 
                        arising from losses realized under such credit 
                        risk-sharing mechanism associated with any 
                        multifamily covered security insured in 
                        accordance with section 303 or section 305, 
                        shall be deemed, by reason of such swap 
                        transaction, to be a commodity pool, as that 
                        term is defined in section 1a of the Commodity 
                        Exchange Act (7 U.S.C. 1a).
                            (ii) Prior consultation required.--Before 
                        approving any credit risk-sharing mechanism 
                        that would be exempt from the Commodity 
                        Exchange Act pursuant to subparagraph (A), the 
                        Corporation shall consult with the Commodity 
                        Futures Trading Commission.
                    (B) Exemption from section 27b of the securities 
                act of 1933; prior consultation required.--
                            (i) Exemption.--Any credit risk-sharing 
                        mechanism that is approved by the Corporation 
                        pursuant to this section, which credit risk-
                        sharing mechanism is designed to be used or is 
                        used by a private market holder to assume 
                        losses and to reduce the specific risks arising 
                        from losses realized under such credit risk-
                        sharing mechanism associated with any 
                        multifamily covered security insured in 
                        accordance with section 303 or section 305, 
                        shall be exempt from section 27B of the 
                        Securities Act of 1933 (15 U.S.C. 77z-2a).
                            (ii) Prior consultation required.--Before 
                        approving any credit risk-sharing mechanism 
                        that would be exempt from section 27B of the 
                        Securities Act of 1933 pursuant to subparagraph 
                        (A), the Corporation shall consult with the 
                        Securities and Exchange Commission.
    (d) Requirement to Maintain Approval Status.--
            (1) Authority to issue order.--If the Corporation 
        determines that an approved multifamily guarantor approved 
        under this section no longer meets the standards for such 
        approval or violates a requirement under this Act, including 
        any standard, regulation, or order promulgated in accordance 
        with this Act, the Corporation may--
                    (A) suspend or revoke the approved status of the 
                approved multifamily guarantor; or
                    (B) take any other action with respect to such 
                approved multifamily guarantor as may be authorized 
                under this Act.
            (2) Rule of construction.--The suspension or revocation of 
        the approved status of an approved multifamily guarantor under 
        this section shall have no effect on the status as a 
        multifamily covered security of any multifamily covered 
        security collateralized by eligible multifamily mortgage loans 
        with which the approved multifamily guarantor contracted prior 
        to the suspension or revocation.
            (3) Publication.--The Corporation shall--
                    (A) promptly publish a notice in the Federal 
                Register upon suspension or revocation of the approval 
                of any approved multifamily guarantor; and
                    (B) maintain an updated list of such approved 
                multifamily guarantors on the website of the 
                Corporation.
            (4) Definition.--In this subsection, the term ``violate'' 
        includes any action, taken alone or with others, for or toward 
        causing, bringing about, participating in, counseling, or 
        aiding or abetting, a violation of the requirements under this 
        Act.
    (e) Prudential Standards for Supervision.--The Corporation shall 
prescribe prudential standards for approved multifamily guarantors in 
order to--
            (1) ensure--
                    (A) the safety and soundness of approved 
                multifamily guarantors; and
                    (B) the maintenance of approval standards by 
                approved multifamily guarantors; and
            (2) minimize the risk presented to the Mortgage Insurance 
        Fund.
    (f) Reports and Examinations.--For purposes of determining whether 
an approved multifamily guarantor is fulfilling the requirements under 
this Act, the Corporation shall have the authority to require reports 
from and examine an approved multifamily guarantor, in the same manner 
and to the same extent as the Federal Deposit Insurance Corporation has 
with respect to an insured depository institution under the provisions 
of subsection (a) of section 9 of the Federal Deposit Insurance Act (12 
U.S.C. 1819).
    (g) Enforcement.--The Corporation shall have the authority to 
enforce the provisions of this Act with respect to an approved 
multifamily guarantor, in the same manner and to the same extent as the 
Federal Deposit Insurance Corporation has with respect to an insured 
depository institution under the provisions of subsections (b) through 
(n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818).
    (h) Capital Standards.--
            (1) In general.--Pursuant to the requirement to establish 
        capital and related solvency standards under section 309(b), 
        the Corporation shall establish standards for approved 
        multifamily guarantors as follows:
                    (A) Guarantor activities.--The capital standard for 
                eligible multifamily mortgage loans that collateralize 
                multifamily covered securities insured by the 
                Corporation shall require an approved multifamily 
                guarantor to hold 10 percent capital.
                    (B) Aggregation activities.--An approved 
                multifamily guarantor shall hold capital in an amount 
                comparable to that which is required to be held by 
                insured depository institutions and their affiliates 
                with respect to their applicable aggregating 
                activities.
                    (C) Solvency levels.--An approved multifamily 
                guarantor shall maintain solvency levels adequate for 
                the approved multifamily guarantor to withstand losses 
                that might be incurred by the approved multifamily 
                guarantor in a period of economic stress, including 
                national and regional multifamily housing price 
                declines, such as those observed during moderate to 
                severe recessions in the United States.
            (2) Risk-sharing considerations.--
                    (A) In general.--For purposes of paragraph (1)(A), 
                the Corporation shall consider the extent, amount, and 
                form of risk-sharing and risk mitigation through the 
                use by approved multifamily guarantors of credit risk-
                sharing mechanisms approved pursuant to subsection (c). 
                The Corporation shall allow such risk-sharing and risk 
                mitigation to fulfill required amounts of capital to be 
                held under paragraph (1)(A) while maintaining an 
                appropriate structure of capital as determined by the 
                Corporation.
                    (B) Equivalent treatment.--For purposes of 
                paragraph (2)(A), the Corporation shall seek to ensure 
                equivalent capital treatment between approved credit 
                risk-sharing mechanisms approved under subsection (c) 
                with similar performance histories.
            (3) Other consideration.--To reflect the differences 
        between single-family and multifamily businesses, the capital 
        standards established under paragraph (1)(A) may differ from 
        the capital standards established under section 311 for 
        approved guarantors.
            (4) Stress tests.--The Corporation shall conduct 
        appropriate stress tests of each approved multifamily guarantor 
        that has total assets of more than $10,000,000,000, provided 
        that such stress tests shall be--
                    (A) specifically tailored to the business model of 
                the approved multifamily guarantor; and
                    (B) utilized to--
                            (i) ensure the safety and soundness of the 
                        approved multifamily guarantor; and
                            (ii) minimize the risk the approved 
                        multifamily guarantor may present to the 
                        Mortgage Insurance Fund.
    (i) Resolution Authority for Failing Multifamily Guarantors.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Corporation shall--
                    (A) have the authority to act, in the same manner 
                and to the same extent, with respect to an approved 
                multifamily guarantor as the Federal Deposit Insurance 
                Corporation has with respect to an insured depository 
                institution under subsections (c) through (s) of 
                section 11 of the Federal Deposit Insurance Act (12 
                U.S.C. 1821), section 12 of the Federal Deposit 
                Insurance Act (12 U.S.C. 1822), and section 13 of the 
                Federal Deposit Insurance Act (12 U.S.C. 1823), while 
                tailoring such actions to the specific business model 
                of the approved multifamily guarantor, as may be 
                necessary to properly exercise such authority under 
                this subsection;
                    (B) in carrying out any authority provided in 
                subparagraph (A), act, in the same manner and to the 
                same extent, with respect to the Mortgage Insurance 
                Fund as the Federal Deposit Insurance Corporation may 
                act with respect to the Deposit Insurance Fund under 
                the provisions of the Federal Deposit Insurance Act set 
                forth in subparagraph (A);
                    (C) prescribe regulations governing the applicable 
                rights, duties, and obligations of an approved 
                multifamily guarantor placed into resolution under this 
                subsection, its creditors, counterparties, and other 
                persons, as the Corporation deems necessary to properly 
                exercise the authority provided in subparagraph (A);
                    (D) consistent with the authorities provided in 
                subparagraph (A), immediately place an insolvent 
                approved multifamily guarantor into receivership; and
                    (E) upon placing an approved multifamily guarantor 
                into receivership, treat multifamily covered securities 
                insured by the Corporation under section 303 in the 
                same manner as the Federal Deposit Insurance 
                Corporation treats deposit liabilities under section 
                11(d)(11)(A)(ii) of the Federal Deposit Insurance Act 
                and insured deposits under section 11(f) of the Federal 
                Deposit Insurance Act, where the Corporation shall have 
                the same right of subrogation as the Federal Deposit 
                Insurance Corporation has under section 11(g) of the 
                Federal Deposit Insurance Act.
            (2) Least-cost resolution required.--The Corporation may 
        not exercise any authority under paragraph (1) with respect to 
        any approved multifamily guarantor unless the total amount of 
        the expenditures by the Corporation and obligations incurred by 
        the Corporation in connection with the exercise of any such 
        authority with respect to such approved multifamily guarantor 
        is the least costly to the Mortgage Insurance Fund, consistent 
        with the least cost approach specified in the Federal Deposit 
        Insurance Act (12 U.S.C. 1811 et seq.), of all possible methods 
        for meeting the Corporation's obligations under this Act and 
        expeditiously concluding its resolution activities, subject to 
        section 13 of the Federal Deposit Insurance Act where the 
        Corporation and the Board of Directors shall have the same 
        authority as the Federal Deposit Insurance Corporation and the 
        Federal Deposit Insurance Corporation's board of directors.
            (3) Taxpayer protection.--The Corporation, in carrying out 
        any authority provided in this subsection, shall prescribe 
        regulations to ensure that any amounts owed to the United 
        States, unless the United States agrees or consents otherwise, 
        shall have priority following administrative expenses of the 
        receiver when satisfying unsecured claims against an approved 
        multifamily guarantor, or the receiver therefor, that are 
        proven to the satisfaction of the receiver.
    (j) Hearing.--Upon notice of denial of an application for approval 
under subsection (b) or upon a notice of suspension or revocation of 
the approved status of an approved multifamily guarantor under 
subsection (d), the applicant or approved multifamily guarantor shall 
be afforded a hearing under subsection (h) of section 8 of the Federal 
Deposit Insurance Act (12 U.S.C. 1818(h)), in the same manner and to 
the same extent as if the Corporation were the appropriate Federal 
banking agency, provided that the approved multifamily guarantor 
submits a request to the Corporation for a hearing not later than 10 
days after the date on which the notice is published under subsection 
(b)(3) or (d)(3).
    (k) Prohibited Activity.--An approved multifamily guarantor may 
not--
            (1) originate eligible multifamily mortgage loans; or
            (2) be an affiliate of a person that actively engages in 
        the business of originating eligible multifamily mortgage 
        loans.
    (l) Guarantors Required to Pay Claims.--Subject to such standards 
as the Corporation may provide, an approved multifamily guarantor may 
not for any reason withhold payment of funds that would ensure holders 
of multifamily covered securities receive timely payment of principal 
and interest on multifamily covered securities. The Corporation shall 
by regulation develop a process for the mediation and resolution of 
disputed payment amounts.

SEC. 704. MULTIFAMILY HOUSING REQUIREMENT.

    (a) In General.--Each approved multifamily guarantor shall ensure, 
during each calendar year, that at least 60 percent of the rental 
housing units which are contained in the eligible multifamily mortgage 
loans that collateralize all multifamily covered securities guaranteed 
by each such approved multifamily guarantor during the previous 24-
month period were, at the time of origination, affordable to low-income 
families.
    (b) Determination of Affordability of Rental Housing Units.--For 
purposes of subsection (a), the affordability of rental housing units 
contained in an eligible multifamily mortgage loan shall be determined 
at the time of loan commitment by using--
            (1) the most recent rent roll for an occupied property; or
            (2) in the case of rental housing units that are newly 
        constructed or substantially rehabilitated, a final pro-forma 
        rent roll.
    (c) Determination of Compliance.--The Corporation shall determine, 
during each calendar year, whether each approved multifamily guarantor 
has complied with the requirement under subsection (a).
    (d) Suspension or Adjustment.--
            (1) In general.--The Corporation may suspend or adjust the 
        requirement under subsection (a) for an approved multifamily 
        guarantor or guarantors--
                    (A) during a period of unusual and exigent market 
                conditions in the multifamily housing market as 
                determined pursuant to section 305; or
                    (B) either--
                            (i) pursuant to information available to 
                        the Corporation demonstrating adverse market 
                        conditions in the multifamily housing market; 
                        or
                            (ii) pursuant to a written request to 
                        suspend or adjust the requirement under 
                        subsection (a) made by an approved multifamily 
                        guarantor, which the Corporation may grant in 
                        whole or in part.
            (2) Criteria for suspension or adjustment.--The Corporation 
        may suspend or adjust the requirement under subsection (a) 
        pursuant to paragraph (1)(B) only if--
                    (A) market and economic conditions require such an 
                action; or
                    (B) efforts to meet the requirement under 
                subsection (a) would result in--
                            (i) the constraint of liquidity in certain 
                        market segments;
                            (ii) over-investment in certain market 
                        segments; or
                            (iii) other consequences contrary to the 
                        intent of this section.
            (3) Limitation on authority.--The Corporation shall 
        narrowly tailor any suspension or adjustment made under 
        paragraph (1)(B) to address the market conditions that prompted 
        the suspension or adjustment.
            (4) Determination.--
                    (A) Period for public comment.--The Corporation 
                shall, promptly upon a decision to pursue a suspension 
                or adjustment under paragraph (1)(B)(i) or upon receipt 
                of a request under paragraph (1)(B)(ii), seek public 
                comment on the suspension or adjustment for a period of 
                30 days.
                    (B) Period for determination.--The Corporation 
                shall make a determination regarding any proposed 
                suspension or adjustment within 30 days after the 
                expiration of the public comment period provided under 
                subparagraph (A).
                    (C) Extensions.--The Corporation may extend the 
                period for determination provided under subparagraph 
                (B) for a single additional 15-day period, but only if 
                the Corporation requests additional information from 
                the approved multifamily guarantor.
            (5) Review of suspension or adjustment.--
                    (A) Annual review.--The Corporation shall review 
                any suspension or adjustment made by the Corporation 
                under subparagraphs (A) or (B) of paragraph (1) at 
                least annually to determine whether the suspension or 
                adjustment satisfies the criteria established under 
                paragraph (2).
                    (B) Publication and comment.--The Corporation 
                shall--
                            (i) not less than annually, publish a list 
                        of all suspensions and adjustments in effect 
                        under this section; and
                            (ii) seek public comment as to the 
                        continued necessity of such suspensions or 
                        adjustments.
    (e) Mixed Income Liquidity Study and Review.--
            (1) Study.--Not later than 2 years after the date of 
        enactment of this Act, and periodically or as market conditions 
        warrant thereafter, the Corporation shall conduct a study of 
        liquidity in the market for financing the new construction or 
        substantial rehabilitation of mixed-income properties 
        containing multifamily units that--
                    (A) otherwise qualify under the requirement under 
                subsection (a); and
                    (B) are financed by tax-exempt bonds that are 
                issued by a State or local housing finance agency.
            (2) Adjustment to requirement.--The Corporation may adjust 
        the requirement under subsection (a), subject to the procedures 
        provided under paragraphs (2) through (5) of subsection (d), if 
        the Corporation finds based on a study conducted under 
        paragraph (1) that--
                    (A) liquidity is constrained in the market for 
                eligible multifamily mortgage loans for the mixed-
                income properties described in paragraph (1); and
                    (B) it is necessary to foster liquidity in that 
                market.
    (f) Rule of Construction.--Nothing in this section shall be 
construed to authorize the Corporation to require an approved 
multifamily guarantor to exceed the 60 percent requirement set forth 
under subsection (a).
    (g) Definitions; Applicability to Enterprises.--In this section--
            (1) the term ``approved multifamily guarantor'' includes an 
        enterprise or any multifamily subsidiary established pursuant 
        to section 701;
            (2) the term ``multifamily covered security'' includes a 
        multifamily mortgage-backed security guaranteed by an 
        enterprise or any multifamily subsidiary established pursuant 
        to section 701; and
            (3) the term ``eligible multifamily mortgage loan'' 
        includes a multifamily mortgage loan collateralizing a security 
        guaranteed by an enterprise or any multifamily subsidiary 
        established pursuant to section 701.

SEC. 705. ESTABLISHMENT OF SMALL MULTIFAMILY PROPERTY PROGRAM.

    (a) Pilot Program.--The Corporation shall establish at least 1 
pilot program, to be administered by the Office of Multifamily Housing, 
in consultation with the Office of Consumer and Market Access, to test 
and assess methods or products designed to increase secondary mortgage 
market access for multifamily properties comprised of not more than 50 
units or with mortgages not exceeding $3,000,000 (as adjusted for 
inflation).
    (b) Activities.--In administering the pilot program required under 
subsection (a), the Corporation shall--
            (1) review, and may approve, proposals from regulated 
        entities or approved multifamily guarantors, including 
        proposals focused on lending by small mortgage lenders, to 
        participate in the pilot program by carrying out activities to 
        decrease barriers to secondary mortgage market access for 
        multifamily properties comprised of not more than 50 units or 
        with mortgages not exceeding $3,000,000 (as adjusted for 
        inflation) through new risk-sharing, partnerships, or other 
        mechanisms or incentives; and
            (2) establish requirements governing the activities of the 
        pilot program, including requirements with respect to--
                    (A) any mid-course alterations of activities 
                permitted under the pilot program, information sharing, 
                reporting, and evaluation of the results of a pilot 
                program; and
                    (B) the tracking of any allocations of amounts that 
                may be distributed from the Market Access Fund.
    (c) Use of Market Access Fund.--A regulated entity or approved 
multifamily guarantor that submits a proposal under subsection (b) may 
request, as part of the proposal, allocations from the Market Access 
Fund as necessary to support its proposed activities.
    (d) Amendments to Pilot Program.--The Corporation may amend a pilot 
program established under subsection (a) as needed to accommodate the 
multifamily mortgage market.
    (e) Publication.--The Corporation shall make publicly available the 
results of a pilot program established under subsection (a).
    (f) Requirement.--The Corporation shall consider the results of a 
pilot program established under subsection (a) for purposes of 
expanding and implementing new mechanisms to decrease barriers to 
secondary mortgage market access for multifamily properties comprised 
of not more than 50 units or with mortgages not exceeding $3,000,000 
(as adjusted for inflation).
    (g) Limitation on Funding.--The Corporation may not use funds from 
the Mortgage Insurance Fund to fund any pilot program activities 
conducted by a regulated entity or approved multifamily guarantor under 
this section.

SEC. 706. MULTIFAMILY HOUSING STUDY.

    The Office of Multifamily Housing shall conduct a study on the 
expansion of the Federal Home Loan Banks' Acquired Member Assets 
(``AMA'') programs to eligible multifamily mortgage loans.

SEC. 707. MULTIFAMILY PLATFORM STUDY.

    (a) In General.--Not later than 18 months after the system 
certification date, the Corporation shall conduct a study on the need, 
feasibility, costs, and merits of creating a cooperatively-owned, 
nonprofit multifamily issuance platform to securitize eligible 
multifamily mortgage loans.
    (b) Content of Study.--The study required under subsection (a) 
shall address--
            (1) competition between existing approved multifamily 
        guarantors;
            (2) the barriers to entry for new multifamily guarantors;
            (3) the costs associated with developing a new platform;
            (4) the funding of smaller-balance multifamily mortgage 
        loans, including mortgage loans originated by credit unions and 
        community and mid-size banks and other small-volume lenders in 
        rural and other underserved communities;
            (5) standardized definitions and reporting and payment 
        requirements;
            (6) stability in the multifamily lending market in times of 
        stress; and
            (7) such other information as the Corporation determines 
        appropriate to further the purpose of the study.
    (c) Consideration.--In conducting the study required under 
subsection (a), the Corporation shall consider whether any identified 
need to establish a multifamily securitization platform can and will be 
met by the Platform established under section 321, or any subsidiary or 
affiliate thereof.
    (d) Report to Congress.--Not later than 18 months after the system 
certification date, the Corporation shall submit the study required 
under subsection (a) to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services of the 
House of Representatives.

SEC. 708. SHORT-TERM RESIDENTIAL HOUSING.

    (a) In General.--Section 513 of the National Housing Act (12 U.S.C. 
1731b) is amended--
            (1) in subsection (b)--
                    (A) in clause (1), by striking ``or'' at the end; 
                and
                    (B) by inserting before the period at the end the 
                following: ``, or (3) the project is a short-term 
                residential property (as such term is defined in 
                subsection (e) of this section) and is subject to a 
                mortgage insured under section 207, provided that the 
                Secretary has made a determination pursuant to the 
                study and report required under section 708(b) of the 
                Housing Finance Reform and Taxpayer Protection Act that 
                the provision of such insurance is appropriate''; and
            (2) in subsection (e)--
                    (A) in clause (1), by striking ``and'' at the end; 
                and
                    (B) by inserting before the period at the end the 
                following: ``, and (3) the term `short-term residential 
                property' means multifamily housing that (A) has more 
                than 50 dwelling units that each contain a kitchen, 
                including a full refrigerator and cooking surface, and 
                bathroom facilities, (B) provides mail boxes for each 
                unit, (C) rents such units for a minimum stay of 7 
                days, and (D) does not provide food or beverage 
                services, including in-room service, daily maid 
                services, furnishing and laundering of linen without 
                charge, or bellhop services''.
    (b) Study.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary of Housing and Urban 
        Development shall--
                    (A) conduct and complete a study evaluating the 
                risk of the provision of insurance under section 207 of 
                the National Housing Act (12 U.S.C. 1713) for short-
                term residential properties; and
                    (B) submit a report to the Committee on Banking, 
                Housing, and Urban Affairs of the Senate and the 
                Committee on Financial Services of the House of 
                Representatives, which shall include--
                            (i) the findings of the study required 
                        under subparagraph (A); and
                            (ii) a determination as to whether any 
                        additional risk presented to the General 
                        Insurance Fund resulting from the provision of 
                        insurance under section 207 of the National 
                        Housing Act (12 U.S.C. 1713) for short-term 
                        residential properties is appropriate.
            (2) Contents of study.--In conducting the study required 
        under paragraph (1)(A), the Secretary of Housing and Urban 
        Development shall--
                    (A) evaluate whether the provision of insurance 
                under section 207 of the National Housing Act (12 
                U.S.C. 1713) for short-term residential properties 
                presents additional risk to the General Insurance Fund; 
                and
                    (B) consider any additional operational and 
                logistical costs associated with providing such 
                insurance.
            (3) Definitions.--In this subsection--
                    (A) the term ``General Insurance Fund'' means the 
                fund established under section 519 of the National 
                Housing Act (12 U.S.C. 1735c); and
                    (B) the term ``short-term residential properties'' 
                has the meaning given the term under section 513(e)(3) 
                of the National Housing Act (12 U.S.C. 1731b(e)(3)).

                     TITLE VIII--GENERAL PROVISIONS

SEC. 801. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to alter, supersede, or 
interfere with the final ruling of a court of competent jurisdiction 
with respect to any provision of the Senior Preferred Stock Purchase 
Agreement or amendments thereof of an enterprise.

SEC. 802. SEVERABILITY.

    If any provision of this Act or the application of any provision of 
this Act to any person or circumstance, is held invalid, the 
application of such provision to other persons or circumstances, and 
the remainder of this Act, shall not be affected thereby.

SEC. 803. TRANSFER NOTIFICATION UNDER TILA.

    (a) In General.--Section 131(g) of the Truth in Lending Act (15 
U.S.C. 1641(g)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `mortgage loan' means any consumer 
                credit transaction that is secured by the principal 
                dwelling of a consumer;
                    ``(B) the term `securitized residential mortgage' 
                means any residential mortgage loan that serves as 
                collateral for a fixed-income or other security that 
                allows the holder of such security to receive payments 
                dependent on the cash flow from such residential 
                mortgage loan; and
                    ``(C) the term `servicer'--
                            ``(i) has the meaning provided in section 
                        129A, except that such term includes a person 
                        who receives any payments from a mortgagor, 
                        including any amounts for escrow accounts, and 
                        makes payments to the owner of the loan or 
                        other third parties, including payments made 
                        after default, pursuant to the terms of the 
                        relevant contracts; and
                            ``(ii) excludes State and local housing 
                        agencies.''.
    (b) Disclosure of Fees.--Section 5(c)(3) of the Real Estate 
Settlement Procedures Act (12 U.S.C. 2605(c)(3)) is amended--
            (1) by striking ``Any notice required'' and inserting the 
        following:
                    ``(A) In general.--Any notice required''; and
            (2) by adding at the end the following:
                    ``(B) Disclosure of fees requirement.--The 
                transferee servicer shall provide to the borrower, not 
                more than 15 days after the effective date of transfer 
                of the servicing of the mortgage loan, a statement 
                regarding the loan which shows the following:
                            ``(i) The application of all payments and 
                        charges, including the date received, as 
                        allocated to principal, interest, escrow, and 
                        other charges.
                            ``(ii) The status of the loan as of the 
                        date of the transfer including whether the loan 
                        is in default and whether any loss mitigation 
                        application submitted by the borrower is 
                        pending.
                            ``(iii) An itemization and explanation for 
                        all arrearages claimed to be due as of the date 
                        of the transfer.''.
    (c) Safe Harbor for Mistaken Payments; Fees.--Section 131 of the 
Truth in Lending Act (15 U.S.C. 1641) is amended--
            (1) by redesignating subsection (g) as subsection (i); and
            (2) by inserting after subsection (f) the following:
    ``(g) Treatment of Mistaken Loan Payments After Transfer.--During 
the 60-day period beginning on the effective date of transfer of the 
servicing of any securitized residential mortgage loan, a late fee may 
not be imposed on the consumer with respect to any payment on such 
loan, and no such payment may be treated as late for any other purpose, 
if the payment is received by the transferor servicer (rather than the 
transferee servicer who should properly receive payment) on or before 
the applicable due date, including any grace period allowed under the 
loan documents.
    ``(h) Fee Waive Upon Transfer.--
            ``(1) In general.--The creditor, new owner, or assignee of 
        the mortgage loan, by itself or through its servicer, may not 
        impose or collect--
                    ``(A) any fee that is not listed as having been 
                incurred in the notice to the consumer of the transfer 
                of servicing of a securitized residential mortgage 
                loan; or
                    ``(B) any fee incurred prior to the effective date 
                of servicing transfer that is not disclosed on a 
                periodic statement provided to the consumer prior to 
                the effective date of servicing transfer of a 
                securitized residential mortgage loan.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `securitized residential mortgage' 
                means any residential mortgage loan that serves as 
                collateral for a fixed-income or other security that 
                allows the holder of such security to receive payments 
                dependent on the cash flow from such residential 
                mortgage loan; and
                    ``(B) the term `servicer'--
                            ``(i) has the meaning provided in section 
                        129A, except that such term includes a person 
                        who receives any payments from a mortgagor, 
                        including any amounts for escrow accounts, and 
                        makes payments to the owner of the loan or 
                        other third parties, including payments made 
                        after default, pursuant to the terms of the 
                        relevant contracts; and
                            ``(ii) excludes State and local housing 
                        agencies.''.

SEC. 804. INVESTMENT AUTHORITY TO SUPPORT RURAL INFRASTRUCTURE.

    Section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431) is 
amended by adding at the end the following:
    ``(m) Mission Investments for Rural Infrastructure.--In furtherance 
of its mission under section 5, each Federal Home Loan Bank is 
authorized to purchase investment grade securities from nonmember 
cooperative lenders that have received financing from the Federal 
Financing Bank and that possess demonstrated experience in making loans 
to rural cooperatives. Such securities shall be secured investments 
collateralized by loans of the cooperative lender. The purchase of such 
securities shall be at the sole discretion of the Bank, consistent with 
such regulations, restrictions, and limitations as may be prescribed by 
the Board.''.

SEC. 805. CONSOLIDATION OF SIMILAR HOUSING ASSISTANCE PROGRAMS.

    (a) Report.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Corporation, the Secretary of 
        Housing and Urban Development, the Secretary of the Treasury, 
        the Secretary of Agriculture, the Secretary of Veterans 
        Affairs, the Secretary of Labor, and the Secretary of the 
        Interior shall jointly submit to Congress a report, which 
        shall--
                    (A) identify and evaluate, based on need and 
                appropriateness, specific opportunities to consolidate 
                similar housing assistance programs, which may include 
                the programs identified in the August 2012 Government 
                Accountability Office report to Congress entitled 
                ``Opportunities Exist to Increase Collaboration and 
                Consider Consolidation'' (GAO-12-554);
                    (B) provide recommendations to Congress for 
                legislative action to appropriately streamline, 
                consolidate, or eliminate similar housing assistance 
                programs identified and evaluated under subparagraph 
                (A); and
                    (C) identify opportunities for cross-agency 
                collaboration of housing assistance efforts.
            (2) Accessibility.--The report submitted under paragraph 
        (1) shall be made available on a publically accessible Internet 
        website.
    (b) Use of Administrative Authority.--
            (1) In general.--
                    (A) The Director of the Office of Management and 
                Budget shall coordinate with the Secretary of Housing 
                and Urban Development, the Secretary of the Treasury, 
                the Secretary of Agriculture, the Secretary of Veterans 
                Affairs, the Secretary of Labor, and the Secretary of 
                the Interior to consider and evaluate opportunities to 
                eliminate, consolidate, or streamline housing 
                assistance programs.
                    (B) The Director of the Office of Management and 
                Budget, in coordination with the Secretary of Housing 
                and Urban Development, the Secretary of the Treasury, 
                the Secretary of Agriculture, the Secretary of Veterans 
                Affairs, the Secretary of Labor, and the Secretary of 
                the Interior, shall eliminate, consolidate, or 
                streamline any programs identified under subparagraph 
                (A) which they find appropriate.
            (2) Cost savings.--Any administrative cost savings 
        resulting from the consolidation, elimination, or streamlining 
        of housing assistance programs under paragraph (1) shall be 
        transferred as follows:
                    (A) 50 percent to the Housing Trust Fund 
                established under section 1338 of the Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                (12 U.S.C. 4568).
                    (B) 50 percent to the General Fund of the Treasury 
                to be used for deficit reduction.
            (3) Report.--The Director of the Office of Management and 
        Budget shall submit to Congress a report on an annual basis of 
        any actions taken to streamline similar housing assistance 
        programs, and the cost savings resulting from such actions.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to grant the Director of the Office of Management and Budget, 
the Secretary of Housing and Urban Development, the Secretary of the 
Treasury, the Secretary of Agriculture, the Secretary of Veterans 
Affairs, the Secretary of Labor, or the Secretary of the Interior any 
additional authority to eliminate, consolidate, or streamline housing 
assistance programs that they did not have prior to the date of 
enactment of this Act.

SEC. 806. BUREAU OF CONSUMER FINANCIAL PROTECTION REVIEW; GAO REPORT.

    (a) Bureau of Consumer Financial Protection Review.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than 3 months after the date of enactment of this Act, 
        the Bureau of Consumer Financial Protection shall, after 
        reviewing relevant data and consulting with stakeholders, 
        including representatives of the manufactured housing industry 
        and representatives of consumers and homeowners, consider and 
        review the application of subsections (bb) and (cc) of section 
        103 of the Truth in Lending Act (15 U.S.C. 1602) to 
        manufactured housing loans, including--
                    (A) the annual percentage rate coverage test for 
                high-cost mortgages;
                    (B) the total points and fees coverage test for 
                high-cost mortgages; and
                    (C) the definition of the term ``mortgage 
                originator''.
            (2) Exception.--The Bureau of Consumer Financial Protection 
        shall not be required to conduct the review under paragraph (1) 
        if the Bureau does not receive relevant data relating to the 
        review that was not previously submitted to the Bureau on or 
        before January 31, 2013.
            (3) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to require the Bureau of Consumer Financial 
        Protection to engage in rulemaking, including rulemaking to 
        modify any rule relating to subsection (bb) or (cc) of section 
        103 of the Truth in Lending Act (15 U.S.C. 1602).
    (b) GAO Report.--Not later than 10 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study and issue a report to Congress on the 
manufactured housing loan market, which shall include an analysis of--
            (1) the loan products available in the manufactured housing 
        loan market and the performance of those products, which shall 
        include a review of the underwriting standards and portfolios 
        of creditors that originate manufactured housing loans, such as 
        depository institutions and finance companies;
            (2) the characteristics of borrowers that participate in 
        the manufactured housing loan market, including--
                    (A) the creditworthiness of the borrower;
                    (B) the usage pattern of the borrower; and
                    (C) the process for evaluating and comparing loan 
                products prior to purchase; and
            (3) the potential impact on access to mortgage credit for 
        manufactured housing loans if subsections (bb) and (cc) of 
        section 103 of the Truth in Lending Act (15 U.S.C. 1602) were 
        applied to manufactured housing loans, including--
                    (A) the annual percentage rate coverage test for 
                high-cost mortgages;
                    (B) the total points and fees coverage test for 
                high-cost mortgages;
                    (C) the definition of ``mortgage originator'';
                    (D) borrower delinquency and default in the 
                manufactured housing loan market; and
                    (E) competition in the manufactured housing loan 
                market.

SEC. 807. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
                                                       Calendar No. 579

113th CONGRESS

  2d Session

                                S. 1217

_______________________________________________________________________

                                 A BILL

  To provide secondary mortgage market reform, and for other purposes.

_______________________________________________________________________

                           September 18, 2014

                       Reported with an amendment