[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1491 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1491

  To reform the housing finance system of the United States, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2015

 Mr. Delaney (for himself, Mr. Carney, Mr. Himes, Ms. Sinema, Mr. Heck 
    of Washington, Mr. Meeks, Mr. Murphy of Florida, Mr. Polis, Mr. 
  Quigley, Mr. David Scott of Georgia, and Mr. Welch) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To reform the housing finance system of the United States, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Partnership to 
Strengthen Homeownership Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions.
                          TITLE I--GINNIE MAE

Sec. 101. Removal from HUD; establishment as independent entity.
Sec. 102. Transfer to Ginnie Mae of powers, personnel, and property of 
                            FHFA.
Sec. 103. Regulation of market participants and aggregators.
Sec. 104. Regulatory consultation and coordination.
                 TITLE II--SECURITIZATION AND INSURANCE

Sec. 201. Issuing Platform.
Sec. 202. Insurance.
Sec. 203. Authority to protect taxpayers in unusual and exigent market 
                            conditions.
Sec. 204. Servicing rights; representations and warranties.
Sec. 205. Federal Home Loan Banks.
           TITLE III--WIND DOWN OF FANNIE MAE AND FREDDIE MAC

Sec. 301. Limitation on business.
Sec. 302. Risk-sharing pilot programs.
Sec. 303. Continued conservatorship.
Sec. 304. Mandatory receivership.
Sec. 305. Repeal of enterprise charters.
Sec. 306. Ginnie Mae authority regarding timing.
Sec. 307. Consultation.
                 TITLE IV--MULTIFAMILY HOUSING FINANCE

Sec. 401. Establishment of multifamily subsidiaries.
Sec. 402. Disposition of multifamily businesses.
Sec. 403. Guarantee of multifamily securities.
Sec. 404. Other forms of multifamily risk-sharing.
Sec. 405. Ginnie Mae securitization of FHA risk-sharing loans.
Sec. 406. Continuation of certain programs.
                      TITLE V--AFFORDABLE HOUSING

Sec. 501. Affordable housing allocations.
Sec. 502. Housing Trust Fund.
Sec. 503. Capital Magnet Fund.
Sec. 504. Market Access Fund.
                      TITLE VI--GENERAL PROVISIONS

Sec. 601. Rule of construction regarding Senior Preferred Stock 
                            Purchase Agreements.
Sec. 602. Treatment of community development financial institution.

SEC. 2. PURPOSE.

    The purpose of this Act is to facilitate a liquid, transparent, and 
resilient single-family and multifamily mortgage credit market by 
supporting a robust secondary mortgage market, including as currently 
exists in the ``to be announced'' or ``TBA'' market, and preserving the 
liquidity of all products (including structures such as 10-, 15-, 20-, 
and 30-year fixed-rate mortgages) that are presently eligible to trade 
in such TBA market, including during the transition to the new housing 
finance system.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Banking definitions.--The term ``bank'' and ``savings 
        association'' have the meaning given those terms, respectively, 
        under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813).
            (2) Certification date.--The term ``certification date'' 
        means the earlier of--
                    (A) the date on which Ginnie Mae makes the 
                certification described under section 201(h); and
                    (B) the date that is the end of the 2-year period 
                beginning on the date of the enactment of this Act.
            (3) Charter act.--The term ``charter Act'' 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.).
            (4) Credit union.--The term ``credit union'' means any 
        ``Federal credit union'' or ``State credit union'', as such 
        terms are defined under section 101 of the Federal Credit Union 
        Act (12 U.S.C. 1752).
            (5) Director.--The term ``Director'' means the Director of 
        Ginnie Mae, as such position is established pursuant to the 
        amendments made by section 101(c)(1).
            (6) Eligible mortgage.--The term ``eligible mortgage'' 
        means a residential mortgage loan secured by a property with 1 
        to 4 residential units that--
                    (A) is a ``qualified mortgage'', as such term is 
                defined under section 129C(b)(2)(A) of the Truth in 
                Lending Act (15 U.S.C. 1639c);
                    (B) satisfies standards related to establishing 
                title or marketability of title, as may be required by 
                Ginnie Mae, which standards may include the required 
                purchase of title insurance on the property securing 
                the loan; and
                    (C) satisfies such other minimum standards as may 
                be established by the Platform, to ensure the quality 
                of mortgages used to collateralize mortgage-backed 
                securities issued by the Platform.
            (7) Eligible multifamily mortgage loan.--The term 
        ``eligible multifamily mortgage loan'' means a commercial real 
        estate loan--
                    (A) secured by--
                            (i) multifamily housing; or
                            (ii) a property with 2 or more residential 
                        units, if the requirement under clause (i) is 
                        waived by the Director 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;
                    (D) that satisfies any additional underwriting 
                criteria established by the Director to balance 
                supporting access to capital with managing credit risk 
                to the 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 Director.
            (8) 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.
            (9) Fund.--The term ``Fund'' means the insurance fund 
        established under section 202(g).
            (10) Ginnie mae.--The term ``Ginnie Mae'' means the 
        Government National Mortgage Association.
            (11) Market participant.--The term ``market participant'' 
        means any insurance company, bank, saving association, credit 
        union, or real estate investment trust insuring or reinsuring 
        any part of a security issued by the Platform.
            (12) Multifamily covered security.--The term ``multifamily 
        covered security'' means a security that meets the requirements 
        for guarantee by Ginnie Mae pursuant to section 403.
            (13) Multifamily housing.--The term ``multifamily housing'' 
        means a property having 5 or more residential units.
            (14) Participating aggregator.--The term ``participating 
        aggregator'' means an aggregator of eligible mortgages that 
        collateralize mortgage-backed securities issued by the Platform 
        pursuant to title II.
            (15) Platform.--The term ``Platform'' means the Issuing 
        Platform established under section 201(a).
            (16) Real estate investment trust.--The term ``real estate 
        investment trust'' has the meaning given such term under 
        section 856(a) of the Internal Revenue Code of 1986.

                          TITLE I--GINNIE MAE

SEC. 101. REMOVAL FROM HUD; ESTABLISHMENT AS INDEPENDENT ENTITY.

    (a) In General.--Paragraph (2) of section 302(a) of the National 
Housing Act (12 U.S.C. 1717(a)(2)) is amended by striking ``in the 
Department of Housing and Urban Development'' and inserting 
``independent of any other agency or office in the Federal 
Government''.
    (b) Conforming Amendments.--Title III of the National Housing Act 
(12 U.S.C. 1716 et seq.) is amended--
            (1) in section 306(g)(3)(D) (12 U.S.C. 1721(g)(3)(D)), by 
        striking ``Secretary'' and inserting ``Association'';
            (2) in section 307 (12 U.S.C. 1722), by striking 
        ``Secretary of Housing and Urban Development'' and inserting 
        ``Association''; and
            (3) in section 317 (12 U.S.C. 1723i)--
                    (A) in subsection (a)(1), by striking ``Secretary 
                of Housing and Urban Development'' and inserting 
                ``Director of the Association'';
                    (B) in subsection (c)(4), by striking 
                ``Secretary's'' and inserting ``Director of the 
                Association's'';
                    (C) in subsection (d)(1), by striking 
                ``Secretary's'' and inserting ``Director of the 
                Association's'';
                    (D) in the heading for subsection (f), by striking 
                ``by Secretary''; and
                    (E) by striking ``Secretary'' each place such term 
                appears and inserting ``Director of the Association''.
    (c) Management; Board of Directors.--
            (1) In general.--Section 308 of the National Housing Act 
        (12 U.S.C. 1723(a)) is amended by striking subsection (a) and 
        inserting the following new subsection:
    ``(a) Management.--
            ``(1) Board of directors.--
                    ``(A) Number and appointment.--The Association 
                shall be governed by 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--
                            ``(i) are citizens of the United States, 
                        and
                            ``(ii) have demonstrated technical 
                        expertise in the mortgage market and one of 
                        whom has technical expertise in the secondary 
                        mortgage market.
                    ``(B) Political affiliation.--Not more than 3 
                members of the Board of Directors may be members of the 
                same political party.
                    ``(C) Terms.--
                            ``(i) In general.--Each member of the Board 
                        of Directors shall be appointed for a term of 5 
                        years.
                            ``(ii) Interim appointments.--Any 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.
                            ``(iii) Continuation of service.--The 
                        Director and each 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.
            ``(2) Director; chairperson.--
                    ``(A) Designation; term.--One of the members of the 
                Board of Directors shall be designated by the 
                President, at the time of appointment, to serve as 
                Chairperson of the Board of Directors and Director of 
                the Association for a term of 5 years, unless removed 
                before the end of such term pursuant to subparagraph 
                (C).
                    ``(B) Advice.--The Board of Directors shall advise 
                the Director regarding overall strategies and policies 
                to carry out the duties and purposes of this Act.
                    ``(C) Removal.--The President may remove the 
                Director for inefficiency, neglect of duty, or 
                malfeasance in office.
            ``(3) Operations.--
                    ``(A) Bylaws.--Within the limitations of law, the 
                Board of Directors shall determine the general policies 
                which shall govern the operations of the Association, 
                and shall have power to adopt, amend and repeal bylaws 
                governing the performance of the powers and duties 
                granted to or imposed upon it by law.
                    ``(B) Required votes.--At the first meeting of the 
                Board of Directors, the Board shall determine by 
                majority vote which actions of the Association shall 
                require a majority vote of the Board.
            ``(4) Officers.--The Director shall select and effect the 
        appointment of qualified persons to fill such offices of the 
        Association as may be provided for in the bylaws. Persons 
        appointed under the preceding sentence shall perform such 
        executive functions, powers, and duties as may be prescribed by 
        the bylaws or by the Board of Directors, and such persons shall 
        be executive officers of the Association and shall discharge 
        all such executive functions, powers, and duties.''.
            (2) Compensation.--
                    (A) Director.--Section 5314 of title 5, United 
                States Code, is amended by adding at the end the 
                following new item:
    ``Director, Government National Mortgage Association.''.
                    (B) Members of board of directors.--Section 5314 of 
                title 5, United States Code, is amended--
                            (i) by striking the item relating to the 
                        President of the Government National Mortgage 
                        Association, Department of Housing and Urban 
                        Development; and
                            (ii) by adding at the end the following new 
                        item:
    ``Members, Board of Directors of the Government National Mortgage 
Association.''.
    (d) Membership on FSOC.--The Dodd-Frank Wall Street Reform and 
Consumer Protection Act is amended--
            (1) in section 2, by amending paragraph (12)(E) to read as 
        follows:
                    ``(E) the Government National Mortgage Association, 
                with respect to--
                            ``(i) the Mortgage Insurance Fund 
                        established under section 202(g) of the 
                        Partnership to Strengthen Homeownership Act of 
                        2015; and
                            ``(ii) the Federal Home Loan Banks or the 
                        Federal Home Loan Bank System.''; and
            (2) in section 111(b)(1)(H), by striking ``Director of the 
        Federal Housing Finance Agency'' and inserting ``Director of 
        the Government National Mortgage Association''.
    (e) Personnel.--Subsection (d) of section 309 of the National 
Housing Act (12 U.S.C. 1723a(d)) is amended by striking ``(d)(1)'' and 
all that follows through the end of paragraph (1) and inserting the 
following:
    ``(d) Personnel.--
            ``(1) Ginnie mae.--
                    ``(A) In general.--The Director of the Association 
                may appoint and fix the compensation of such officers 
                and employees of the Association as the Director 
                considers necessary to carry out the functions of the 
                Association. Officers and employees may be paid without 
                regard to the provisions of chapter 51 and subchapter 
                III of chapter 53 of title 5, United States Code, 
                relating to classification and General Schedule pay 
                rates.
                    ``(B) Development of human resources.--In carrying 
                out this subsection, Ginnie Mae shall appoint and 
                develop human capital (which shall have such meaning as 
                determined by Ginnie Mae, in consultation with the 
                Board of Governors of the Federal Reserve, taking into 
                consideration differences between the banking and 
                insurance industries) necessary to ensure that it 
                possesses sufficient expertise regarding the insurance 
                industry and insurance issues.
                    ``(C) Comparability of compensation with federal 
                banking agencies.--In fixing and directing compensation 
                under subparagraph (A), the Director of the Association 
                shall consult with, and maintain comparability with, 
                compensation of officers and employees of the Office of 
                the Comptroller of the Currency, the Board of Governors 
                of the Federal Reserve System, and the Federal Deposit 
                Insurance Corporation.
                    ``(D) Personnel of other federal agencies.--In 
                carrying out the duties of the Association, the 
                Director of the Association may use information, 
                services, staff, and facilities of any executive 
                agency, independent agency, or department on a 
                reimbursable basis, with the consent of such agency or 
                department.
                    ``(E) Outside experts and consultants.--
                Notwithstanding any provision of law limiting pay or 
                compensation, the Director of the Association may 
                appoint and compensate such outside experts and 
                consultants as such Director determines necessary to 
                assist the work of the Association.''.
    (f) Transitional Provision.--Notwithstanding this section and the 
amendments made by this section, during the period beginning on the 
date of the enactment of this Act, and ending on the date on which the 
Director of the Government National Mortgage Association is appointed 
and confirmed pursuant to section 308 of the National Housing Act, as 
amended by this section, the person serving as the President of the 
Government National Mortgage Association on that effective date shall 
act for all purposes as, and with the full powers of, the Director of 
the Association.
    (g) References.--On and after the date of the enactment of this 
Act, any reference in Federal law to the President of the Government 
National Mortgage Association or to such Association shall be deemed to 
be a reference to such Director of such Association or to such 
Association, as appropriate, as organized pursuant to this subsection 
and the amendments made by this section.

SEC. 102. TRANSFER TO GINNIE MAE OF POWERS, PERSONNEL, AND PROPERTY OF 
              FHFA.

    (a) Powers and Duties Transferred.--
            (1) Federal home loan bank functions transferred.--
                    (A) Transfer of functions.--There are transferred 
                to Ginnie Mae and the Director of Ginnie Mae all 
                functions of the Federal Housing Finance Agency and the 
                Director of the Federal Housing Finance Agency, 
                respectively.
                    (B) Powers, authorities, rights, and duties.--
                Ginnie Mae and the Director of Ginnie Mae 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, 
                respectively, including all conservatorship or 
                receivership authorities, on the day before the 
                transfer date in connection with the functions and 
                authorities transferred under subparagraph (A).
                    (C) Transfer date.--The transfer of functions under 
                this paragraph shall take effect upon the expiration of 
                the 6-month period beginning on the date of the 
                enactment of this Act.
            (2) Continuation and coordination of certain actions.--
                    (A) In general.--All regulations, orders, 
                determinations, and resolutions described under 
                subparagraph (B) shall remain in effect according to 
                the terms of such regulations, orders, determinations, 
                and resolutions, and shall be enforceable by or against 
                Ginnie Mae until modified, terminated, set aside, or 
                superseded in accordance with applicable law by Ginnie 
                Mae, any court of competent jurisdiction, or operation 
                of law.
                    (B) Applicability.--A regulation, order, 
                determination, or resolution is described under this 
                subparagraph if it--
                            (i) was issued, made, prescribed, or 
                        allowed to become effective by--
                                    (I) the Federal Housing Finance 
                                Agency; or
                                    (II) a court of competent 
                                jurisdiction, and relates to functions 
                                transferred by this subsection;
                            (ii) relates to the performance of 
                        functions that are transferred by this 
                        subsection; and
                            (iii) is in effect on the transfer date 
                        under paragraph (1)(C).
            (3) Disposition of affairs.--During the period preceding 
        the transfer date under paragraph (1)(C), 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--
                    (A) shall manage the employees of such Agency and 
                provide for the payment of the compensation and 
                benefits of any such employees which accrue before such 
                transfer date; and
                    (B) may take any other action necessary for the 
                purpose of winding up the affairs of the Office.
            (4) Use of property and services.--
                    (A) Property.--Ginnie Mae may use the property and 
                services of the Federal Housing Finance Agency to 
                perform functions which have been transferred to Ginnie 
                Mae until such time as the Agency is abolished under 
                subsection (c) to facilitate the orderly transfer of 
                functions transferred under this subsection, any other 
                provision of this Act, or any amendment made by this 
                Act to any other provision of law.
                    (B) 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 Ginnie Mae 
                shall--
                            (i) continue to provide such services, on a 
                        reimbursable basis, until the transfer of such 
                        functions is complete; and
                            (ii) consult with any such agency to 
                        coordinate and facilitate a prompt and 
                        reasonable transition.
            (5) Continuation of services.--Ginnie Mae 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 Ginnie Mae for such 
        time as is reasonable to facilitate the orderly transfer of 
        functions pursuant to this subsection, any other provision of 
        this Act, or any amendment made by this Act to any other 
        provision of law.
            (6) Savings provisions.--
                    (A) Existing rights, duties, and obligations not 
                affected.--Paragraph (1) and subsection (c) 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 the transfer date under paragraph (1)(C).
                    (B) 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 Ginnie Mae under this 
                subsection shall abate by reason of the enactment of 
                this Act, except that Ginnie Mae shall be substituted 
                for the Director of the Federal Housing Finance Agency 
                as a party to any such action or proceeding.
    (b) Transfer and Rights of Employees of FHFA.--
            (1) Transfer.--Each employee of the Federal Housing Finance 
        Agency that is employed in connection with functions that are 
        transferred to Ginnie Mae under subsection (a) shall be 
        transferred to Ginnie Mae for employment, not later than the 
        transfer date under subsection (a)(1)(C), and such transfer 
        shall be deemed a transfer of function for purposes of section 
        3503 of title 5, United States Code.
            (2) Status of employees.--The transfer of functions under 
        this section, and the abolishment of the Federal Housing 
        Finance Agency under subsection (c), 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.
            (3) Guaranteed positions.--Each employee transferred under 
        paragraph (1) shall be guaranteed a position with the same 
        status, tenure, grade, and pay as that held on the day 
        immediately preceding the transfer.
            (4) Appointment authority for excepted employees.--
                    (A) 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 
                subparagraph (B).
                    (B) Decline of transfer.--Ginnie Mae may decline a 
                transfer of authority under subparagraph (A), 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.
            (5) Reorganization.--If Ginnie Mae determines, after the 
        end of the 1-year period beginning on the transfer date under 
        subsection (a)(1)(C), 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.
            (6) Employee benefit programs.--
                    (A) In general.--Any employee of the Federal 
                Housing Finance Agency accepting employment with Ginnie 
                Mae as a result of a transfer under paragraph (1) may 
                retain, for 12 months after the date on which such 
                transfer occurs, membership in any employee benefit 
                program of the Agency or Ginnie Mae, as applicable, 
                including insurance, to which such employee belongs on 
                the transfer date under subsection (a)(1)(C) if--
                            (i) the employee does not elect to give up 
                        the benefit or membership in the program; and
                            (ii) the benefit or program is continued by 
                        Ginnie Mae.
                    (B) Cost differential.--
                            (i) 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 subsection 
                        shall be paid by Ginnie Mae.
                            (ii) Health insurance.--If any employee 
                        elects to give up membership in a health 
                        insurance program or the health insurance 
                        program is not continued by Ginnie Mae, 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.
    (c) Abolishment of FHFA.--Effective upon the transfer date under 
subsection (a)(1)(C), the Federal Housing Finance Agency and the 
position of the Director of the Federal Housing Finance Agency are 
abolished.
    (d) Transfer of Property and Facilities.--Effective upon the 
transfer date under subsection (a)(1)(C), all property of the Federal 
Housing Finance Agency shall transfer to Ginnie Mae.
    (e) References in Federal Law.--On and after the transfer date 
under subsection (a)(1)(C), 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 subsection (a), shall be deemed a reference to the 
Director of the Government National Mortgage Association or the 
Government National Mortgage Association, as appropriate and consistent 
with the amendments made by this Act.

SEC. 103. REGULATION OF MARKET PARTICIPANTS AND AGGREGATORS.

    (a) Approval Authority.--The Platform shall be available for use 
only by originators and aggregators of mortgages who meet standards for 
eligibility for such use, as shall be established by the Director of 
Ginnie Mae (in this section referred to as the ``Director'').
    (b) General Supervisory and Regulatory Authority.--Pursuant to the 
authority under subsection (a):
            (1) In general.--All market participants and participating 
        aggregators shall, to the extent provided in this section, be 
        subject to the supervision and regulation of the Director.
            (2) Authority over market participants and participating 
        aggregators.--Ginnie Mae shall have general regulatory 
        authority over each market participant and participating 
        aggregator and shall exercise such general regulatory authority 
        to ensure that the purposes of this section are carried out.
    (c) Principal Duties.--Among the principal duties of the Director 
pursuant to subsection (b) shall be--
            (1) to oversee the prudential operations of each market 
        participant and participating aggregator; and
            (2) to ensure that--
                    (A) each market participant and participating 
                aggregator operates in a safe and sound manner, 
                including maintenance of adequate capital and internal 
                controls; and
                    (B) each market participant and participating 
                aggregator complies with this section and the rules, 
                regulations, guidelines, and orders issued under this 
                section.
    (d) Prudential Management and Operations Standards.--
            (1) Establishment.--The Director shall establish prudential 
        standards, by regulation or guideline, for market participants 
        and participating aggregators to--
                    (A) ensure--
                            (i) the safety and soundness of market 
                        participants and participating aggregators; and
                            (ii) the maintenance of approval standards 
                        by market participants and participating 
                        aggregators; and
                    (B) minimize the risk presented to the Fund.
            (2) Recognition of distinctions.--In carrying out the 
        requirement under paragraph (1), the Director shall distinguish 
        between prudential standards for market participants and such 
        standards for participating aggregators.
    (e) Authority To Require Reports.--
            (1) Regular reports.--The Director may require, by general 
        or specific orders, a market participant or participating 
        aggregator to submit regular reports, including financial 
        statements determined on a fair value basis, on the condition 
        (including financial condition), management, activities, or 
        operations of the market participant or participating 
        aggregator, as the Director considers appropriate.
            (2) Special reports.--The Director may require, by general 
        or specific orders, a market participant or participating 
        aggregator to submit special reports on any of the topics 
        specified in paragraph (1) or any other relevant topics, if, in 
        the judgment of the Director, such reports are necessary to 
        carry out the purposes of this Act.
    (f) Examinations and Audits.--The Director may conduct such 
examinations and audits, including on-site examinations and audits, of 
market participants and participating aggregators as the Director 
considers appropriate to ensure compliance with this Act, to determine 
the condition of market participants and participating aggregators for 
the purpose of determining and ensuring their financial safety and 
soundness, and otherwise in any case that the Director determines an 
examination is necessary or appropriate.
    (g) Conflict of Interest Standards.--The Director shall establish 
standards, by regulation or guideline, for market participants and 
participating aggregators as the Director considers appropriate to 
avoid any conflicts of interest among market participants.
    (h) Stress Tests for Sufficient Capital; Capital Standards.--
            (1) In general.--The Director, in consultation with the 
        Board of Governors of the Federal Reserve, shall--
                    (A) establish and carry out such risk-based capital 
                tests as appropriate to evaluate whether each market 
                participant and participating aggregator is maintaining 
                a level of capital sufficient to absorb losses and 
                support operations during adverse economic conditions 
                so that they do not pose undue risks to their 
                communities, other institutions, or the broader 
                economy; and
                    (B) establish capital standards for market 
                participants and participating aggregators based on 
                such tests, which shall include the following 
                classifications: well capitalized, adequately 
                capitalized, undercapitalized, significantly 
                undercapitalized, and critically undercapitalized.
            (2) Capital standard requirements.--In establishing capital 
        standards under paragraph (1)(B), the Director shall--
                    (A) ensure that such standards are tailored to each 
                type of entity; and
                    (B) provide that any securities insured by Ginnie 
                Mae under this Act should be given a risk-weight of 
                zero.
    (i) Enforcement.--The Corporation shall have the authority to 
enforce the provisions of this Act with respect to market participants 
and participating aggregators, 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).
    (j) Requirement To Maintain Approved Status.--
            (1) Authority to issue order.--If the Director determines 
        that a market participant or a participating aggregator under 
        this section no longer meets the standards for such approval or 
        violates the requirements under this Act, including any 
        standards, regulations, or orders promulgated in accordance 
        with this Act, the Director may--
                    (A) suspend or revoke the status of the market 
                participant or participating aggregator as approved to 
                utilize the Platform; or
                    (B) take any other action with respect to such 
                market participant or a participating aggregator as may 
                be authorized under this Act.
            (2) Rule of construction.--The suspension or revocation of 
        the approved status of a market participant or a participating 
        aggregator under this section shall have no effect on the 
        status as an insured security of any security collateralized by 
        eligible mortgages and insured prior to the suspension or 
        revocation.
            (3) Publication.--The Director shall--
                    (A) promptly publish a notice in the Federal 
                Register upon suspension or revocation of the approval 
                of any market participant or a participating 
                aggregator; and
                    (B) maintain an updated list of such approved 
                market participants and participating aggregators on 
                the website of Ginnie Mae.
            (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.
    (k) Resolution Authority.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Director shall--
                    (A) have the authority to act, in the same manner 
                and to the same extent, with respect to a market 
                participant or participating aggregator that the 
                Director determines pursuant to is classified as 
                critically undercapitalized pursuant to subsection 
                (h)(2), as the Federal Deposit Insurance Corporation 
                has with respect to insured depository institutions 
                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 market participant 
                or participating aggregator, as the case may be, 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 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); and
                    (C) consistent with the authorities provided in 
                subparagraph (A), immediately place an insolvent market 
                participant or participating aggregator into 
                receivership.
            (2) Rule of construction.--Notwithstanding paragraph (1), 
        if an insolvent participating aggregator is an insured 
        depository institution or an affiliate of an insured depository 
        institution, the Director shall recommend, in writing, to such 
        participating aggregator's appropriate Federal banking agency 
        or State banking regulator to resolve such participating 
        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 Director may not 
        exercise any authority under paragraph (1) with respect to any 
        market participant or any participating aggregator that is not 
        an insured depository institution or an affiliate of an insured 
        depository institution, unless--
                    (A) the Director determines that the exercise of 
                such authority is necessary to ensure proper and 
                continued functioning of the secondary mortgage market; 
                and
                    (B) the total amount of the expenditures by the 
                Director and obligations incurred by the Director in 
                connection with the exercise of any such authority with 
                respect to such market participant or participating 
                aggregator is the least costly to the 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 Ginnie Mae's obligations 
                under this Act and expeditiously concluding its 
                resolution activities.
            (4) Taxpayer protection.--The Director, in carrying out any 
        authority provided in this subsection, shall 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 a market participant or participating 
        aggregator, or the receiver therefor, that are proven to the 
        satisfaction of the receiver.

SEC. 104. REGULATORY CONSULTATION AND COORDINATION.

    (a) Consultation Permitted.--The Director 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, any State banking 
regulator, any State insurance regulator, and any other State agency, 
as the Director necessary and appropriate.
    (b) Coordination Required.--
            (1) Requirement.--The Director shall, as appropriate, 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, any State banking regulator, any 
        State insurance regulator, any other State agency.
            (2) Mediation with federal agencies.--To the extent that 
        the head of any Federal agency determines that any rule, 
        directive, or guidance of Ginnie Mae conflicts with a rule, 
        directive, or guidance of such agency and notifies the Director 
        of such conflict, the Director shall enter into consultation 
        with such agency to ensure coordination required under 
        paragraph (1) of this subsection and compliance with subsection 
        (c)(1)(C).
    (c) Avoidance of Duplication.--
            (1) In general.--To the fullest extent possible, the 
        Director shall--
                    (A) avoid duplication of examination activities, 
                reporting requirements, and requests for information;
                    (B) rely on examination reports made by other 
                Federal or State regulatory agencies relating to an 
                approved entity and its subsidiaries, if any; and
                    (C) ensure that market participants and 
                participating aggregators are not subject to 
                conflicting supervisory demands by Ginnie Mae and other 
                Federal regulatory agencies.
            (2) Limitation.--The authority of Ginnie Mae under this Act 
        and the amendments made by this Act to operate the Platform, 
        issue securities, regulate market participants and 
        participating aggregators (including with respect to safety and 
        soundness as provided in section 103), and ensure the 
        functioning and liquidity of the mortgage market may not be 
        construed to authorize Ginnie Mae to generally regulate with 
        respect to consumer protection.
    (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 Director may share information with the 
        Federal regulatory agencies, any individual Federal regulatory 
        agency, the Secretary of the Treasury, 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 Director, 
        regarding the capital assets and liabilities, financial 
        condition, risk management practices, or any other practice of 
        any market participant or participating aggregator.
            (2) Privilege preserved.--Information shared by the 
        Director pursuant to paragraph (1) shall not be construed as 
        waiving, destroying, or otherwise affecting any privilege or 
        confidential status that any market participant, participating 
        aggregator, 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 Agency 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.
    (f) Federal Regulatory Agency.--For purposes of this section, the 
term ``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.

                 TITLE II--SECURITIZATION AND INSURANCE

SEC. 201. ISSUING PLATFORM.

    (a) Establishment.--
            (1) In general.--There is established within Ginnie Mae an 
        entity to be known as the Issuing Platform (the ``Platform''), 
        which shall issue standardized mortgage-backed securities to 
        increase homogeneity in the eligible securities market.
            (2) Authorities.--The Platform may--
                    (A) make contracts, incur liabilities, and borrow 
                money;
                    (B) purchase, sell, receive, hold, and use real and 
                personal property;
                    (C) create, execute, and administer trusts; and
                    (D) take such actions as the Platform determines 
                are necessary or incidental to carry out the Platform's 
                duties under this Act.
    (b) Delivery of Pool to the Platform.--A mortgage originator or 
aggregator that wishes to make use of the Platform and have Ginnie Mae 
insure the securities issued by the Platform shall deliver to the 
Platform a pool of eligible mortgage loans.
    (c) Securitization.--The Platform shall, upon receiving a pool of 
eligible mortgages--
            (1) create standardized mortgage-backed securities 
        collateralized by such mortgages; and
            (2) transfer the standardized mortgage-backed securities to 
        the mortgage originator or aggregator from which the Platform 
        received the pool of eligible mortgages that are 
        collateralizing the securities or the designee of such 
        originator or aggregator.
    (d) Standardized Criteria for Securities.--In issuing securities 
under this section, the Platform shall establish standardized criteria 
for such securities, including--
            (1) uniform loan delivery, servicing, and pooling 
        requirements;
            (2) remittance requirements;
            (3) underwriting guidelines and refinance programs;
            (4) the credit quality of the guarantee provided to each 
        security;
            (5) servicing standards and loan repurchase policies;
            (6) disclosure policies;
            (7) security terms and features; and
            (8) standards for the appropriate minimum level of 
        diversification for the mortgage loans that collateralize such 
        securities, in order to reduce the credit risk such securities 
        could pose to the Fund.
    (e) Securitization Fee.--The Platform shall charge a fee for 
securitization services provided under this section. Such fee shall be 
set by the Director and shall be in an amount sufficient to offset the 
costs to the Platform of carrying out this section.
    (f) Loan Limits; Housing Price Index.--
            (1) Establishment.--Ginnie Mae shall establish limitations 
        governing the maximum original principal obligation of eligible 
        mortgage loans that may collateralize a security issued under 
        this Act.
            (2) Calculation of amount.--The limitation set forth under 
        paragraph (1) shall be calculated with respect to the total 
        original principal obligation of the eligible mortgage loan and 
        not merely with respect to the amount insured by Ginnie Mae.
            (3) Maximum limits.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the maximum limitation amount under this paragraph 
                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 subsection. 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 Director of the Federal 
                Housing Finance Agency 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 housing 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.
                    (B) High-cost area limits.--The limitations set 
                forth in subparagraph (A) may be increased by not more 
                than 50 percent with respect to properties located in 
                Alaska, Guam, Hawaii, and the Virgin Islands.
    (g) Authority for Loan-Level Enhancement.--With respect to an 
eligible mortgage loan that is or will be contained in a pool of 
mortgages delivered to the Platform, the mortgage originator of such 
mortgage loan may enter into agreements with market participants to 
provide loan-level enhancement of such mortgage loan.
    (h) Certification.--Ginnie Mae shall, upon a determination that the 
Platform is able to efficiently carry out the issuance of standardized 
mortgage-backed securities, that there exists a sufficient number of 
market participants to serve as insurers and reinsurers under section 
202, and that the secondary mortgage market has sufficient liquidity to 
implement the provisions of this Act (and the amendments made by this 
Act) that will take effect upon this determination, certify to the 
Congress that such determination has been made.
    (i) Duty To Serve All Markets.--
            (1) In general.--In carrying out its responsibilities under 
        this title, Ginnie Mae shall facilitate the broad availability 
        of mortgage credit and secondary mortgage market financing 
        through fluctuations in the business cycle for single-family 
        and multifamily lending across all--
                    (A) regions;
                    (B) localities;
                    (C) institutions;
                    (D) property types, including housing serving 
                renters; and
                    (E) borrowers.
            (2) Report to congress.--Ginnie Mae shall, quarterly during 
        the 5-year period following the certification date and 
        semiannually thereafter, issue a report to the Congress on--
                    (A) how Ginnie Mae is carrying out the duties 
                required under paragraph (1); and
                    (B) the extent to which the provisions of this 
                title and the programs carried out pursuant to this 
                title are benefitting underserved communities.
    (j) Exemption From SEC Laws and Regulations.--Standardized 
mortgage-backed securities issued by the Platform shall be exempt from 
the Federal securities laws (as defined under section 3(a) of the 
Securities Exchange Act of 1934) and all regulations issued pursuant to 
such laws.
    (k) Authority to Use Other Entities in Case of Problems.--During 
and after the establishment of the Platform, if Ginnie Mae 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 this section, Ginnie Mae 
shall have the authority to permit the Platform to use other entities 
other than the Platform, including the infrastructure of Fannie Mae and 
Freddie Mac, to perform issuance functions required to be performed by 
the Platform and that are necessary for the proper functioning of the 
secondary mortgage market, until Ginnie Mae deems the Platform fully 
operational.

SEC. 202. INSURANCE.

    (a) In General.--Ginnie Mae shall insure 100 percent of each 
security issued by the Platform, as provided in this section.
    (b) Private Reinsurance.--Ginnie Mae shall establish one or both of 
the programs described under paragraphs (1) and (2). In selecting which 
program to establish, or whether both should be established, Ginnie Mae 
shall determine whether a program is an efficient way to operate the 
insurance requirements under this Act by incorporating private sector 
pricing, would optimize risk pricing, and would maximize capital 
positions based upon the state of the economy.
            (1) Reinsurance bid program.--A Reinsurance Bid Program, 
        which shall include the following:
                    (A) Forward contract for first 5 percent loss.--
                Prior to any particular quarter (or such other time 
                period determined by Ginnie Mae), Ginnie Mae shall 
                enter into contracts with market participants to 
                reinsure the first 5 percent of loss on all securities 
                issued by the Platform in such quarter (or other time 
                period).
                    (B) Forward contract for last 95 percent loss.--
                Prior to any particular quarter (or such other time 
                period determined by Ginnie Mae), Ginnie Mae shall 
                sign--
                            (i) contracts with market participants to 
                        reinsure the last 95 percent of loss on all 
                        securities issued by the Platform in such 
                        quarter (or other time period); and
                            (ii) a retrocession contract with each such 
                        market participant under which Ginnie Mae will 
                        agree to offer retrocessional reinsurance to 
                        reinsure up to 90 percent of the 95 percent 
                        described under clause (i) on a pari passu 
                        basis.
            (2) Guarantor program.--A Guarantor Program, which shall 
        include the following:
                    (A) First loss requirement.--The mortgage 
                originator or aggregator that wishes to deliver a pool 
                of eligible mortgage loans to the Platform for 
                securitization shall, prior to delivering such pool, 
                contract directly with a market participant to insure 
                the first 5 percent of loss on all securities issued by 
                the Platform that are securitized by such pool of 
                eligible mortgage loans.
                    (B) Coverage for last 95 percent loss.--For each 
                security described under subparagraph (A) Ginnie Mae 
                shall sign--
                            (i) contracts with market participants to 
                        reinsure the last 95 percent of loss on the 
                        security; and
                            (ii) a retrocession contract with each such 
                        market participant under which Ginnie Mae will 
                        agree to offer retrocessional reinsurance to 
                        reinsure up to 90 percent of the 95 percent 
                        described under clause (i) on a pari passu 
                        basis.
                    (C) Ability to select market participants.--
                            (i) In general.--If Ginnie Mae determines 
                        that it would be an efficient way to operate 
                        the insurance requirements under this Act and 
                        would encourage the incorporation of private 
                        sector pricing, Ginnie Mae may allow mortgage 
                        originators and aggregators described under 
                        subparagraph (A) to select the market 
                        participant described under subparagraph (B).
                            (ii) Handling of pre-selected market 
                        participants.--If a market participant is 
                        selected by a mortgage originator or 
                        aggregator, as described under clause (i)--
                                    (I) such market participants shall 
                                be required to meet the same standards 
                                as a market participant selected by 
                                Ginnie Mae; and
                                    (II) for purposes of determining 
                                the insurance fee described under 
                                subsection (d), Ginnie Mae shall 
                                contract with a private sector insurer 
                                to estimate the risk that the market 
                                participant may default.
    (c) Additional Program Requirements.--
            (1) Competitive bidding process.--Ginnie Mae shall use a 
        competitive bidding process to determine which market 
        participants should be granted contracts under subsection 
        (b)(1) and, except as provided under subsection (b)(2)(C), 
        under subsection (b)(2)(B).
            (2) Use of insurance broker.--With respect to any market 
        participant that Ginnie Mae selects under a risk sharing 
        program, Ginnie Mae shall select an insurance broker, through a 
        competitive bidding process, that will solicit bids, on behalf 
        of Ginnie Mae, for the reinsurance contracts under such 
        program.
            (3) Ceding commission.--As part of a retrocession contract 
        under subsection (b)(1)(B)(ii) or subsection (b)(2)(B)(ii), the 
        market participants shall be paid a competitively determined 
        ceding commission for the underwriting and administrative costs 
        of providing such reinsurance.
            (4) Phase-in.--Ginnie Mae may, if it determines it 
        appropriate--
                    (A) phase-in the 5 percent requirements under 
                subsections (b)(1)(A) and (b)(2)(A), by originally 
                requiring a lower percentage; and
                    (B) phase-in the 90 percent requirement under 
                subsections (b)(1)(B)(ii) and (b)(2)(B)(ii), by 
                originally requiring a higher percentage.
    (d) Insurance Fee and Terms.--
            (1) Pre-pricing of insurance fee.--Ginnie Mae shall set the 
        insurance fee applicable to securities issued by the Platform 
        in advance on a quarter-by-quarter basis, through forward 
        contracts established with market participants based on the 
        volume and type of securities Ginnie Mae anticipates the 
        Platform issuing during such quarter.
            (2) Components of insurance fee.--
                    (A) In general.--The insurance fee charged by 
                Ginnie Mae for providing insurance shall reflect 
                expected losses and the market risk premium necessary 
                to obtain reinsurance and in the absence of such market 
                shall reflect the default risk associated with the 
                mortgage collateral underlying Ginnie Mae's insurance.
                    (B) Adjustment for performance.--Ginnie Mae may 
                adjust the fee computed under subparagraph (A) after 
                periodic review subject to its credit analysis, but 
                such adjustment may not be based on volume. Such credit 
                analysis shall be based on forecasting models assuming 
                current economic data and shall be back-tested against 
                historical adverse economic scenarios.
            (3) Rate adjustment period.--The rate charged by a private 
        market participant that contracts with Ginnie Mae pursuant to 
        subsection (b)--
                    (A) may not change during the first 100-day period 
                for which such reinsurance is effective; and
                    (B) shall be adjusted based on market conditions, 
                on a period to be determined by the Director.
            (4) Expertise.--Ginnie Mae shall retain personnel with 
        expertise in pricing conventional mortgages prior to charging 
        insurance fees under this section. Such expertise shall include 
        credit risk analysis of mortgages, default management, and loss 
        mitigation.
    (e) Standards for Market Participants.--
            (1) In general.--Ginnie Mae shall issue such general 
        standards for market participants described under subsection 
        (b) as Ginnie Mae determines appropriate.
            (2) Capital standards for market participants.--
                    (A) In general.--For market participants described 
                under subsection (b), Ginnie Mae shall establish, by 
                regulation, capital standards and related solvency 
                standards necessary to implement the provisions of this 
                Act.
                    (B) Definitions.--
                            (i) In general.--The regulations required 
                        under this paragraph shall define all such 
                        terms as are necessary to carry out the 
                        purposes of this paragraph.
                            (ii) Considerations in defining instruments 
                        and contracts that qualify as capital.--In 
                        defining instruments and contracts that qualify 
                        as capital pursuant to subparagraph (A), Ginnie 
                        Mae--
                                    (I) shall include such instruments 
                                and contracts that will absorb losses 
                                before the Fund; and
                                    (II) may assign significance to 
                                those instruments and contracts based 
                                on the nature and risks of such 
                                instruments and contracts.
                            (iii) Considerations in defining capital 
                        ratios.--Solely for the purposes of calculating 
                        a capital ratio appropriate to the business 
                        model of a market participant pursuant to 
                        subparagraph (A), Ginnie Mae shall consider for 
                        the denominator--
                                    (I) total assets;
                                    (II) total liabilities;
                                    (III) risk in force; or
                                    (IV) unpaid principal balance.
                    (C) Designed to ensure safety and soundness.--The 
                capital and related solvency standards established 
                under this paragraph shall be designed to--
                            (i) ensure the safety and soundness of a 
                        market participant;
                            (ii) minimize the risk of loss to the Fund;
                            (iii) in consultation and coordination with 
                        the Board of Governors of the Federal Reserve 
                        System, the Federal Deposit Insurance 
                        Corporation, and the Office of the Comptroller 
                        of the Currency, reduce the potential for 
                        regulatory arbitrage between capital standards 
                        for market participants and capital standards 
                        promulgated by Federal regulatory agencies for 
                        insured depository institutions and their 
                        affiliates; and
                            (iv) be specifically tailored to 
                        accommodate a diverse range of business models 
                        that may be employed by market participants.
                    (D) Supplemental capital requirements.--
                            (i) In general.--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 large market 
                        participants that insure securities under this 
                        Act, Ginnie Mae, by regulation--
                                    (I) shall establish supplemental 
                                capital requirements for such large 
                                market participants; and
                                    (II) may establish such other 
                                standards that Ginnie Mae determines 
                                necessary or appropriate.
                            (ii) Large market participant defined.--For 
                        purposes of this subparagraph, Ginnie Mae shall 
                        define the term ``large market participant''.
                    (E) Use of certain capital markets transactions.--
                Ginnie Mae shall allow market participants to prudently 
                reduce the required capital requirements through the 
                use of capital markets transactions that pre-fund the 
                risk (such as credit-linked notes). Any funds derived 
                from such transactions may only be used for the purpose 
                of loss protection.
            (3) Non-originator requirement.--A market participant may 
        not originate eligible mortgages and may not be affiliated with 
        a person that actively engages in the business of originating 
        eligible mortgages.
            (4) Limitations on reinsurance.--A market participant may 
        reinsure any transaction entered into under subsection (b), but 
        may not contract for reinsurance with another market 
        participant.
    (f) Conflict of Interests.--Ginnie Mae shall issue regulations to 
prevent conflicts of interest by market participants contracting with 
Ginnie Mae under this section.
    (g) Insurance Fund.--
            (1) Establishment.--There is established an insurance fund 
        (the ``Fund''), which Ginnie Mae shall--
                    (A) maintain and administer; and
                    (B) use to cover losses incurred under this section 
                with respect to mortgage-backed securities and for such 
                other housing-related purposes as Ginnie Mae determines 
                appropriate.
            (2) Fund goal.--
                    (A) In general.--Ginnie Mae shall endeavor to 
                ensure that the Fund attains a reserve balance--
                            (i) of 1.25 percent of the sum of the 
                        outstanding principal balance of the securities 
                        for which insurance is being provided under 
                        this Act within 5 years of the date on which 
                        the Director determines that the Platform is 
                        fully functioning, and to strive to maintain 
                        such ratio thereafter, subject to clause (ii); 
                        and
                            (ii) of 2.50 percent of the sum of the 
                        outstanding principal balance of the securities 
                        for which insurance is being provided under 
                        this Act within 10 years of the date on which 
                        the Director determines that the Platform is 
                        fully functioning, and to strive to maintain 
                        such ratio at all times thereafter.
                    (B) Adjustment of fees.--Notwithstanding subsection 
                (d), Ginnie Mae may raise or lower the fee charged for 
                insurance under this section in order to maintain the 
                reserve balance described under subparagraph (A).
            (3) Deposits.--The Fund shall be credited with any fees 
        received by Ginnie Mae in exchange for insurance made available 
        under this section.
            (4) Prohibited investments.--Amounts in the Fund may not be 
        invested in any--
                    (A) standardized mortgage-backed security insured 
                under this Act; or
                    (B) mortgage-backed security issued by the 
                enterprises.
            (5) 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.
            (6) Prohibitions and exemptions.--
                    (A) Exemption from apportionment.--Notwithstanding 
                any other provision of law, amounts in the Fund shall 
                not be subject to apportionment for the purposes of 
                chapter 15 of title 31, United States Code, or under 
                any other authority.
                    (B) Not government funds.--Amounts in the Fund 
                shall not be construed to be Government or public funds 
                or appropriated money.

SEC. 203. AUTHORITY TO PROTECT TAXPAYERS IN UNUSUAL AND EXIGENT MARKET 
              CONDITIONS.

    (a) In General.--If Ginnie Mae, by a majority vote of its Board of 
Directors, or the Financial Stability Oversight Council (``FSOC''), by 
a majority vote of its voting members, 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, Ginnie Mae or the FSOC 
may, for as such time as either deems necessary--
            (1) modify or waive the reinsurance requirements under 
        section 202(b);
            (2) establish provisional standards for approved entities; 
        and
            (3) temporarily increase loan limits under section 201(f).
    (b) Considerations.--In exercising the authority granted under 
subsection (a), Ginnie Mae and the FSOC shall consider the severity of 
the conditions present in the housing markets and the risks presented 
to the 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 Ginnie Mae or the FSOC may prescribe.
    (d) Bailout Strictly Prohibited.--In exercising the authority 
granted under subsection (a), Ginnie Mae and the FSOC 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;
            (2) provide aid for the purpose of assisting a single and 
        specific company avoid bankruptcy or any other Federal or State 
        insolvency proceeding; or
            (3) rescind any contracts entered into by Ginnie Mae or the 
        FSOC.
    (e) Notice.--Not later than 7 days after authorizing insurance or 
establishing provisional standards under subsection (a), Ginnie Mae or 
the FSOC, as appropriate, 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) Limitation.--The authority granted to Ginnie Mae and the FSOC 
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).
    (g) Normalization and Reduction of Risk.--Following any exercise of 
authority under this section, Ginnie Mae and the FSOC 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 Fund, establish a program to either--
                    (A) sell, in whole or in part, the first loss 
                position on securities described in 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 securities described 
                in this section.
    (h) 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, Ginnie Mae or the FSOC may for a period of 6 months 
        permit the transfer of guarantees of eligible mortgage loans 
        that secure securities issued under this Act 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 Ginnie Mae and the FSOC under paragraph (1) may be 
        exercised for additional 6-month periods.
            (3) Limitation.--Ginnie Mae and the FSOC shall not provide 
        insurance under this Act to any security issued under this Act 
        that includes mortgage loans that do not meet the definition of 
        an eligible mortgage loan, except for mortgage loans refinanced 
        from eligible mortgage loans in securities issued under this 
        Act.
            (4) Rule of construction.--No provision in this section 
        shall be construed as permitting Ginnie Mae or the FSOC to 
        lower any other requirement related to the requirements set 
        forth under the definition of an eligible mortgage loan.

SEC. 204. SERVICING RIGHTS; REPRESENTATIONS AND WARRANTIES.

    (a) Servicing Rights.--The servicing rights for mortgage-backed 
securities issued by the Issuing Platform shall be controlled by--
            (1) the reinsurance company reinsuring the first 5 percent 
        loss position on such securities; or
            (2) in the case of securities that do not have a 
        reinsurance company reinsuring the first 5 percent loss 
        position or with respect to which the such reinsurance company 
        is insolvent, Ginnie Mae.
    (b) Advancing of Payments.--The party controlling the servicing 
rights described under subsection (a) shall also control the advancing 
of payments.
    (c) Representations and Warranties.--
            (1) Collateral manager.--With respect to each pool 
        securitized by the Issuing Platform, there shall be a 
        collateral manager who shall--
                    (A) oversee representations and warranties;
                    (B) act for the benefit of investors; and
                    (C) in the case of a mortgage loan that is in 
                breach of the representations and warranties, 
                facilitate the repurchase or replacement of such 
                mortgage loan with a mortgage loan that is in 
                compliance with representations and warranties.
            (2) Fiduciary duty study.--
                    (A) In general.--Ginnie Mae and the Secretary of 
                the Treasury shall, jointly, conduct a study to 
                determine--
                            (i) the proper roles and responsibilities 
                        with respect to fiduciary duty for each 
                        participant in a private label security;
                            (ii) the appropriate compensation for such 
                        a fiduciary duty; and
                            (iii) the proper placement for such a 
                        fiduciary duty role.
                    (B) Stakeholder efforts.--In carrying out the study 
                required under subparagraph (A), Ginnie Mae and the 
                Secretary shall take into account stakeholder efforts 
                to conclude which party (if any) should have a 
                fiduciary duty attached to it.
                    (C) Report.--Upon completion of the study required 
                under subparagraph (A), Ginnie Mae and the Secretary 
                shall issue a report to the Congress containing all 
                findings and determinations made in carrying out such 
                study.
    (d) Mandatory Arbitration.--Disputes between parties to a security 
issued by the Issuing Platform shall be subject to mandatory 
arbitration.

SEC. 205. FEDERAL HOME LOAN BANKS.

    (a) Membership of Lenders.--Section 4 of the Federal Home Loan Bank 
Act (12 U.S.C. 1424) is amended by adding at the end the following:
    ``(d) Lenders.--
            ``(1) In general.--Any lender that satisfies the 
        requirements of subparagraphs (A) and (C) of subsection (a)(1) 
        shall be eligible to become a member of a Federal Home Loan 
        Bank.
            ``(2) Stock requirement.--Ginnie Mae shall issue 
        regulations specifying that a separate class of stock shall be 
        issued by Federal Home Loan Banks to lenders who become a 
        member of a Federal Home Loan Bank pursuant to this subsection, 
        and Ginnie Mae shall determine the applicable restrictions and 
        requirements for such stock.''.
    (b) Pooling Services for Eligible Mortgages.--Section 11 of the 
Federal Home Loan Bank Act (12 U.S.C. 1431) is amended by adding at the 
end the following:
    ``(m) Pooling Services for Eligible Mortgages.--
            ``(1) Pooling services.--
                    ``(A) In general.--Each Federal Home Loan Bank 
                shall provide pooling services to both members and non-
                members who wish to pool eligible mortgages for 
                purposes of securitizing such mortgages through the 
                Issuing Platform established by title II of the 
                Partnership to Strengthen Homeownership Act of 2015.
                    ``(B) Multi-lender requirement.--Pooling services 
                described under subparagraph (A) may only be offered 
                for a pool of eligible mortgages if the eligible 
                mortgages in the pool were made by more than one 
                lender.
            ``(2) Eligible mortgages defined.--For purposes of this 
        subsection, the term `eligible mortgage' has the meaning given 
        that term under section 2 of the Partnership to Strengthen 
        Homeownership Act of 2015.''.

           TITLE III--WIND DOWN OF FANNIE MAE AND FREDDIE MAC

SEC. 301. LIMITATION ON BUSINESS.

    The Director of the Government National Mortgage Association shall 
provide that, after the certification date--
            (1) the enterprises may not issue, guarantee, or purchase 
        any security backed by mortgages on 1- to 4-family residences 
        except as specifically authorized by this Act;
            (2) an enterprise may act as a participating aggregator of 
        eligible mortgages for securitization pursuant to section 201 
        if such eligible mortgages are originated by originators whose 
        volume of such business is insufficient to allow for such 
        originators to aggregate and securitize such mortgages, until 
        the earlier of--
                    (A) such time as the Director determines that any 
                other qualified entity or entities provide sufficient 
                market access to such originators under competitive 
                rates and terms and requires the enterprises to cease 
                such business; or
                    (B) the commencement of the receivership under 
                section 304(a); and
            (3) an enterprise may act as a reinsurer for a mortgage-
        backed security in accordance with the requirements under 
        section 202(b) until the commencement of the receivership under 
        section 304(a).

SEC. 302. RISK-SHARING PILOT PROGRAMS.

    Not later than the expiration of the 12-month period beginning on 
the date of the enactment of this Act, each enterprise shall establish 
a risk-sharing pilot program to develop private sector first-loss 
positions on mortgage-backed securities. Such first-loss positions 
shall be a percentage of the principal or face value of a mortgage-
backed security, as determined from time-to-time by the Director, 
taking into consideration market conditions and the capability of the 
private sector to assume credit risk.

SEC. 303. CONTINUED CONSERVATORSHIP.

    (a) Timing.--The conservatorships of the enterprises in effect upon 
the enactment of this Act shall continue in effect until the 
commencement of the receivership of the enterprises pursuant to 
subsection (d), subject to the transfer under section 102(a)(1)(B).
    (b) Aligning Purposes of Conservatorship.--Notwithstanding 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)), after the date of the 
enactment of this Act, the Director shall, as conservator of each 
enterprise, take such actions as are necessary to manage the affairs, 
assets, and obligations of each enterprise, and to operate each 
enterprise, in compliance with this section.
    (c) Return of Enterprises to Private Market.--During the term of 
the conservatorships of the enterprises, the Director shall--
            (1) carry out the conservatorship in a manner that furthers 
        achievement of the goals and terms of the mandatory 
        receiverships under subsection (d)(2);
            (2) identify any assets of the enterprises necessary for 
        Ginnie Mae to carry out its functions and responsibilities 
        under sections 201, 202, and 401 of this Act; and
            (3) prepare for the transfer of the multifamily housing 
        finance businesses of the enterprises in accordance with 
        section 401 of this Act.

SEC. 304. MANDATORY RECEIVERSHIP.

    (a) Commencement.--The Director shall, with respect to each 
enterprise, immediately appoint the Ginnie Mae as receiver under 
section 1367 of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4617) upon the later of the following:
            (1) 5-year period.--The expiration of the 60-month period 
        beginning on the date of the enactment of this Act, as the 
        duration of such period may be adjusted pursuant to subsection 
        (c).
            (2) Platform certified as functional; competitive access 
        for small lenders; fhlb capacity.--The certification date has 
        occurred and the Director has determined--
                    (A) that a competitive private housing finance 
                market has been established;
                    (B) that competitive and equitable access to the 
                Platform for smaller mortgage lenders is available;
                    (C) in consultation with relevant participants and 
                stakeholders in the housing finance market, that the 
                Platform and the procedures and structures established 
                by title II have been thoroughly and sufficiently 
                tested and such tests indicate that they will 
                facilitate the continued functioning of the market for 
                ``to be announced'' mortgage-backed securities;
                    (D) the pooling services offered by Federal Home 
                Loan Banks pursuant to section 11(m) of the Federal 
                Home Loan Bank Act are competitive with services made 
                available by the enterprises before the certification 
                date; and
                    (E) the Federal Home Loan Banks are capable of 
                meeting the cash window needs of credit unions, 
                community and mid-sized depository institutions, and 
                non-depository mortgage originators with competitive 
                rates and terms.
    (b) Goals and Terms.--Ginnie Mae shall carry out the receivership 
referred to in subsection (a) for the enterprise under the authority of 
such section 1367, subject to the following requirements:
            (1) Goals.--In carrying out the receivership of each 
        enterprise, Ginnie Mae shall strive to achieve both of the 
        following goals:
                    (A) Return to taxpayers.--Obtaining an adequate 
                return of taxpayer investment in the enterprise, taking 
                into consideration the total cost to the taxpayers, the 
                value provided to the enterprise, and the risk and 
                exposure to the Federal Government involved, together 
                with interest on such investment at a rate determined 
                by the Director, in consultation with the Board of 
                Governors of the Federal Reserve System and the 
                Secretary of the Treasury.
                    (B) Competitive private housing finance market.--
                Removing barriers to private sector competition in the 
                housing finance market by providing for the transfer of 
                the assets of the enterprise into the private sector to 
                compete in a functioning housing finance market.
            (2) Full privatization.--Any entities emerging from such 
        receivership shall be fully private and any obligations and 
        securities of such entities shall not constitute a debt or 
        obligation of the United States nor or any agency or 
        instrumentality thereof.
            (3) Multifamily housing businesses.--The receivership shall 
        provide, notwithstanding any other provision of this Act, for 
        the transfer of the multifamily housing mortgage guarantee 
        businesses of the enterprises in accordance with section 401 of 
        this Act.
            (4) Availability of assets.--The receivership shall provide 
        for--
                    (A) the identification of any assets of the 
                enterprise that are not necessary for the operation of 
                the limited-life entities established pursuant to 
                paragraph (6); and
                    (B) making such assets available at auction for 
                acquisition at competitive rates by any private 
                entities, which shall include the private entities 
                established pursuant to paragraph (6)(C).
            (5) Restructuring of spspa.--The receivership shall provide 
        for the restructuring of the Senior Preferred Stock Purchase 
        Agreements entered into between the Department of the Treasury 
        and the enterprise on September 26, 2008, as amended and 
        restated thereafter, to--
                    (A) permit the redemption of senior preferred 
                shares of the Department of the Treasury;
                    (B) provide for the cancellation of the warrants 
                for the purchase of common stock of the enterprises 
                issued to the Department of the Treasury; and
                    (C) provide for the appropriate level of 
                compensation to the Federal Government for the 
                financial support and commitment provided to the 
                enterprise.
            (6) Wind-down; limited-life enterprises; restructuring.--
        Under the receivership--
                    (A) the receiver shall organize a limited-life 
                regulated entity for the enterprise in accordance with 
                section 1367(i) of the Federal Housing Enterprises 
                Financial Safety and Soundness Act of 1992 (12 U.S.C. 
                4617(i)), except that--
                            (i) any assets and liabilities of the 
                        enterprise that the receiver determines are 
                        necessary to allow the limited-life regulated 
                        entity to operate independent from the 
                        resolution of the enterprise shall be 
                        transferred to the limited-life regulated 
                        entity; and
                            (ii) in winding up the affairs of the 
                        limited-life regulated entity, the remaining 
                        assets of the limited-life regulated entity 
                        shall be made available to the successor 
                        entities established pursuant to subparagraph 
                        (C) of this paragraph and to other private 
                        guarantors engaged in providing insurance for 
                        eligible mortgage-backed securities in 
                        accordance with section 202;
                    (B) the charter of the enterprise shall be repealed 
                pursuant to section 1367(k) of the Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                (12 U.S.C. 4617(k)), as amended by section 305; and
                    (C) the receiver shall provide for reorganization 
                and chartering of the successor entity to the limited 
                life regulated entity for the enterprise as an entity 
                established to operate as an insurer under section 
                202(b)(2)(A) of this Act or a participating aggregator 
                of eligible mortgages for securitization pursuant to 
                section 201 if such eligible mortgages are originated 
                by originators whose volume of such business is 
                insufficient to allow for such originators to aggregate 
                and securitize such mortgages.
    (c) Adjustment of Timing.--Ginnie Mae may adjust the duration of 
the period referred to in subsection (a)(1) by establishing 
requirements to be met by market participants before such period may be 
considered to be concluded. Such requirements may include requirements 
regarding--
            (1) ensuring that there is an adequate level of private 
        capital available for efficient financing of single-family and 
        multifamily housing mortgages through--
                    (A) the market for initial public offerings; and
                    (B) retained earnings of market participants; and
            (2) ensuring that any anticompetitive liquidity advantages 
        in mortgage-backed securities are adequately protected against.

SEC. 305. REPEAL OF ENTERPRISE CHARTERS.

    Section 1367 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4617) is amended by striking 
subsection (k) and inserting the following new subsection:
    ``(k) Repeal of Enterprise Charters.--
            ``(1) Fannie mae.--Effective upon the certification date 
        (as such term is defined in section 2 of the Partnership to 
        Strengthen Homeownership Act of 2015), 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--
                    ``(A) outstanding debt obligations of the Federal 
                National Mortgage Association, including any--
                            ``(i) bonds, debentures, notes, or other 
                        similar instruments;
                            ``(ii) capital lease obligations; or
                            ``(iii) obligations in respect of letters 
                        of credit, bankers' acceptances, or other 
                        similar instruments; or
                    ``(B) mortgage-backed securities guaranteed by the 
                Federal National Mortgage Association that are not 
                eligible mortgage-backed securities insured by Ginnie 
                Mae pursuant to section 202 of the Partnership to 
                Strengthen Homeownership Act of 2015.
            ``(2) Freddie mac.--Effective upon the 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--
                    ``(A) outstanding debt obligations of the Federal 
                Home Loan Mortgage Corporation, including any--
                            ``(i) bonds, debentures, notes, or other 
                        similar instruments;
                            ``(ii) capital lease obligations; or
                            ``(iii) obligations in respect of letters 
                        of credit, bankers' acceptances, or other 
                        similar instruments; or
                    ``(B) mortgage-backed securities guaranteed by the 
                Federal Home Loan Mortgage Corporation that are not 
                eligible mortgage-backed securities insured by Ginnie 
                Mae pursuant to section 202 of the Partnership to 
                Strengthen Homeownership Act of 2015.
            ``(3) Existing guarantee obligations.--
                    ``(A) Explicit guarantee.--The full faith and 
                credit of the United States is pledged to the payment 
                of all amounts which may be required to be paid under 
                any obligation described in paragraph (1) or (2).
                    ``(B) Continued dividend payments.--Notwithstanding 
                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 to facilitate 
                        the sale of assets of the enterprises shall be 
                        permitted; and
                            ``(ii) shall remain in effect until the 
                        guarantee obligations described under 
                        paragraphs (1)(B) and (2)(B) of this subsection 
                        are fully extinguished.
                    ``(C) Applicability.--All guarantee fee amounts 
                derived from the single-family mortgage guarantee 
                business of the enterprises in existence as of the 
                certification date shall be subject to the Senior 
                Preferred Stock Purchase Agreement.
                    ``(D) Senior preferred stock purchase agreement.--
                For purposes of this paragraph, the term `Senior 
                Preferred Stock Purchase Agreement' means--
                            ``(i) 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
                            ``(ii) 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.
            ``(4) Swap option for new securities.--Notwithstanding any 
        other provision of this subsection, Ginnie Mae shall provide 
        that during the 30-year period beginning upon the certification 
        date, any securities described in paragraph (1)(B) or (2)(B) 
        may be exchanged, at the request of the holder of such 
        security, for securities insured under section 202 of the 
        Partnership to Strengthen Homeownership Act of 2015, and Ginnie 
        Mae shall ensure fungibility between such securities exchanged. 
        Ginnie Mae may establish such terms and conditions for such 
        exchanges as Ginnie Mae considers appropriate, except that 
        Ginnie Mae shall provide that in such exchanges such securities 
        described in paragraph (1)(B) or (2)(B) shall receive a risk 
        weight of zero.''.

SEC. 306. GINNIE MAE AUTHORITY REGARDING TIMING.

    (a) Authority.--The Director may extend any deadline referred to in 
section 301, 303(a), 304(a), or the provisions amended by section 305, 
as provided in such subsection (b) of this section, but only if the 
Director--
            (1) makes a determination, after consultation with the 
        Board of Governors of the Federal Reserve System, that such 
        deadline is posing significant risk to the housing market; and
            (2) causes notice of such determination to be published in 
        the Federal Register.
    (b) Extensions.--
            (1) First extension.--The first extension of any deadline 
        pursuant to subsection (a) shall be for a period of an 
        additional 2 years.
            (2) Second extension.--If, after the expiration of a first 
        extension of a deadline of 2 years, the Director makes a 
        determination as provided in subsection (a)(1), the Director 
        may extend the deadline an additional 2 years.
            (3) Additional extensions.--If, after the expiration of the 
        second extension of a deadline of 2 years, the Director makes a 
        determination as provided in subsection (a)(1), the Director 
        may, 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 the 
        Housing and Urban Development, extend the deadline an 
        additional year, and annually thereafter utilizing the same 
        process described in this paragraph until such time as the 
        Director makes a determination that such deadline does not pose 
        a significant risk to the housing market.
    (c) Reports.--If the Director extends any deadline period pursuant 
to the authority under subsection (a), the Director shall thereafter, 
until the expiration of the periods referred to in paragraphs (1) and 
(2) of section 1367(k) of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (as such period may be extended 
pursuant to this section), submit a report to the Congress on a monthly 
basis regarding the transition of the enterprises pursuant to this 
section, the status of the businesses of the enterprises, and the 
market share of the enterprises.

SEC. 307. CONSULTATION.

    Throughout the wind-down of the enterprises under this title, the 
Director shall consult with relevant participants in the housing 
finance industry regarding--
            (1) carrying out this title, including the appropriate 
        level of regulatory discretion to be exercised in carrying out 
        this title; and
            (2) maintaining consistency, to the extent feasible, among 
        mortgage-backed securities issued through the various available 
        platforms.

                 TITLE IV--MULTIFAMILY HOUSING FINANCE

SEC. 401. ESTABLISHMENT OF MULTIFAMILY SUBSIDIARIES.

    (a) Formation and Governance of Multifamily Subsidiaries.--
            (1) Federal national mortgage association.--
                    (A) Multifamily subsidiary plan.--The Director of 
                Ginnie Mae, 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--
                            (i) providing sufficient multifamily 
                        financing in the primary, secondary, and 
                        tertiary geographical markets, including in 
                        rural markets and through a diversity of 
                        experienced multifamily lenders; and
                            (ii) establishing a competitive multifamily 
                        market for multifamily housing guarantors 
                        engaging in multifamily covered securities.
                    (B) Establishment of multifamily subsidiary.--The 
                Director 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 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--
                            (i) providing sufficient multifamily 
                        financing in the primary, secondary, and 
                        tertiary geographical markets, including in 
                        rural markets and through a diversity of 
                        experienced multifamily lenders; and
                            (ii) establishing a competitive multifamily 
                        market for multifamily housing guarantors 
                        engaging in multifamily covered securities.
                    (B) Establishment of multifamily subsidiary.--The 
                Director 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 III 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 Director 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 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.--
                            (i) In general.--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 Capital Market Execution Program Series K 
                Structured 2Pass-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 Director 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 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.--
                            (i) In general.--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 Capital Market Execution 
                                Program Series K Structured 2Pass-
                                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 Director for the purpose of 
                facilitating the continuation of existing multifamily 
                activities.
            (2) Portfolio reduction applicability.--For purposes of 
        expeditiously meeting the criteria under clauses (i) and (ii) 
        of paragraphs (1)(A) and (2)(A) of subsection (a), the 
        multifamily subsidiaries established under subsection (a) shall 
        not be subject to any portfolio reduction required under title 
        III.

SEC. 402. DISPOSITION OF MULTIFAMILY BUSINESSES.

    (a) Authority To Manage Disposition of Multifamily Businesses.--
Except to the extent necessary to provide for guarantees under section 
403 and to carry out this title and the amendments made by this title 
and notwithstanding any provision of title III or any other law, the 
Director may, on or before the 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 
Director 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.
    (c) Continuation of Guarantee for Existing Multifamily 
Securities.--Nothing in this title may be construed to affect the 
guarantee for any security of enterprise backed my mortgages on 
multifamily housing that is provided pursuant to paragraph (1) or (2), 
and paragraph (3)(A) of section 1367(k) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (as added by 
section 305 of this Act).

SEC. 403. GUARANTEE OF MULTIFAMILY SECURITIES.

    (a) In General.--The Director shall develop, adopt, publish, and 
enforce standards for--
            (1) the approval by the Director of multifamily guarantors 
        to issue securities collateralized by eligible multifamily 
        mortgage loans; and
            (2) guarantee by Ginnie Mae of the timely payment of 
        principal and interest on such securities collateralized by 
        eligible multifamily mortgage loans and insured by Ginnie Mae.
    (b) Required Standards.--The standards required under paragraph (1) 
shall include standards sufficient to ensure that--
            (1) each multifamily guarantor is well-capitalized, except 
        that such standards regarding capitalization shall take into 
        consideration the unique characteristics of financing for 
        mortgages for multifamily housing;
            (2) guarantees provided pursuant to this section 
        accommodate various business models for such financing, which 
        shall include providing guarantees for entire securities and 
        for particular trances under such securities; and
            (3) credit risk-sharing levels under any such guarantees 
        are commensurate with such levels under the Delegated 
        Underwriting and Servicing Lender Program of the Federal 
        National Mortgage Association and the Capital Market Execution 
        Program Series K Structured 2Pass-Through Certificates 
        originated and offered under the Program Plus Lender Program of 
        the Federal Home Loan Mortgage Corporation.
    (c) Pricing.--Ginnie Mae shall charge a guarantee fee for 
guarantees provided pursuant to this section and such fee shall be 
determined by Ginnie Mae--
            (1) in the same manner and using the same procedures used 
        pursuant to title II to determine guarantee fees for securities 
        backed by single-family housing mortgages, with such changes as 
        Ginnie Mae determines to be necessary to account for the 
        differences between the single-family guarantee business and 
        the multifamily guarantee business; and
            (2) taking into account the differences between the 
        guarantee fees structures of the Federal National Mortgage 
        Association and the Federal Home Loan Mortgage Corporation.
    (d) Distinctions.--The Director shall take into account, in 
carrying out this section, in providing any issuing platform, and in 
establishing any requirements relating to the guarantee of securities 
collateralized by eligible multifamily mortgage loans, the particular 
nature and characteristics of such securities and loans, as 
distinguished from eligible mortgages and securities guaranteed 
pursuant to title II, and as may be necessary to accommodate the 
multifamily housing financing market.
    (e) 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 
paid under any insurance provided under this section.

SEC. 404. OTHER FORMS OF MULTIFAMILY RISK-SHARING.

    The Director may establish such other methods and manner of risk-
sharing and risk transfer relating eligible multifamily mortgage loans, 
in addition to the methods and manners authorized under this title, as 
may be appropriate taking into consideration the particular nature and 
characteristics of the multifamily housing finance market, which may 
include any risk-sharing activities of the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corporation relating to 
the multifamily housing business.

SEC. 405. GINNIE MAE SECURITIZATION OF FHA RISK-SHARING LOANS.

    (a) Qualified Participating Entities Risk-Sharing Program.--
Paragraph (8) of section 542(b) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-22(b)(8)) is amended to read 
as follows:
            ``(8) Ginnie mae securitization.--
                    ``(A) Prohibition.--The Government National 
                Mortgage Association shall not securitize any 
                multifamily loans insured or reinsured under this 
                subsection, except as provided in subparagraph (B).
                    ``(B) Authority.--The Government National Mortgage 
                Association may, at the discretion of the Director of 
                Ginnie Mae, securitize any multifamily loan, provided 
                that--
                            ``(i) the Federal Housing Administration 
                        provides mortgage insurance based on the unpaid 
                        principal balance of the loan, as shall be 
                        described in the risk-sharing agreement;
                            ``(ii) the Federal Housing Administration 
                        shall not require an assignment fee for 
                        mortgage insurance claims related to the 
                        securitized mortgages; and
                            ``(iii) any successors and assigns of the 
                        risk-sharing partner (including the holders of 
                        credit instruments issued under a trust 
                        mortgage or deed of trust pursuant to which 
                        such holders act by and through a trustee 
                        therein named) shall not assume any obligation 
                        under the risk-sharing agreement and may assign 
                        any defaulted loan to the Federal Housing 
                        Administration in exchange for payment of the 
                        mortgage insurance claim.
                The risk-sharing agreement shall provide for 
                reimbursement to Ginnie Mae by the risk-sharing partner 
                or partners for either all or a portion of the losses 
                incurred on the loans insured.''.
    (b) Authority.--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 Director of 
        Ginnie Mae, 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; and
                    ``(C) any successors and assigns of the risk-
                sharing partner (including the holders of credit 
                instruments issued under a trust mortgage or deed of 
                trust pursuant to which such holders act by and through 
                a trustee therein named) shall not assume any 
                obligation under the risk-sharing agreement and may 
                assign any defaulted loan to the Federal Housing 
                Administration in exchange for payment of the mortgage 
                insurance claim.
        The risk-sharing agreement shall provide for reimbursement to 
        Ginnie Mae by the risk-sharing partner or partners for either 
        all or a portion of the losses incurred on the loans 
        insured.''.
    (c) Amendment to Ginnie Mae Charter 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 (b) or (c) 
        of section 542 of the Housing and Community Development Act of 
        1992 (12 U.S.C. 1715z-22), subject to the terms of paragraph 
        (8) or (6), respectively, of such subsection''.
    (d) Implementation.--The amendments made by this section shall be 
implemented in a manner that--
            (1) ensures that participants in the programs under 
        subsections (b) and (c) of section 542 of the Housing and 
        Community Development Act of 1992 are subject to standards 
        consistent with those applicable to private sector lenders 
        approved by the Department of Housing and Urban Development, 
        and
            (2) does not restrict participation, and provides equal 
        opportunities for participation, in the programs under 
        subsections (b) and (c) of section 542 of the Housing and 
        Community Development Act of 1992, of private sector lenders 
        meeting the standards for such participation.

SEC. 406. CONTINUATION OF CERTAIN PROGRAMS.

    Nothing in this title may be construed to affect the authority of 
Ginnie Mae, as in effect on the date of the enactment of this Act, to 
guarantee securities under section 306 of the National Housing Act (12 
U.S.C. 1721), including securities based on or backed by mortgages for 
multifamily housing insured under title II of the National Housing Act 
or for hospitals, nursing homes, intermediate care facilities, board 
and care homes, or assisted living facilities, insured under such 
title.

                      TITLE V--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 II, in each 
fiscal year the Platform shall--
            (1) charge and collect a fee in an amount equal to 10 basis 
        points for each dollar of the outstanding principal balance 
        of--
                    (A) all eligible mortgage loans that collateralize 
                securities insured under this Act; and
                    (B) all other mortgage loans that collateralize 
                securities on which Ginnie Mae guarantees the timely 
                payment of principal and interest pursuant to title III 
                of the National Housing Act (12 U.S.C. 1716 et seq.); 
                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 
                Federal Housing Enterprises Financial Safety and 
                Soundness Act of 1992 (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 Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                (12 U.S.C. 4569); and
                    (C) 10 percent of such fee amounts to the Ginnie 
                Mae to fund the Market Access Fund established under 
                section 504 of this Act.
    (b) Continuing Obligation.--The fee required to be charged under 
subsection (a) shall be collected for the life of the security.
    (c) Suspension of Contributions.--The Director may temporarily 
suspend, for an initial period of one year, allocations under 
subsection (a)(2) upon the submission by the Director to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives of a written 
determination by the Director that such allocations are contributing, 
or would contribute, to the financial instability of the insurance Fund 
established under section 202(g). The Director may continue such 
suspension for additional periods, each up to one year in length, 
pursuant to the same submission and determination requirements.
    (d) 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 Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (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 Partnership to 
                Strengthen Homeownership Act of 2015'' 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, by inserting ``Indian 
                        tribes and'' before ``States'';
                            (ii) in subparagraph (A), by striking ``The 
                        Secretary shall'' and insert 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 one.

                                                    ``(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 
                                                affordable housing 
                                                programs, including 
                                                multifamily 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), if the formula amount determined 
                        under paragraph (3) for a fiscal year would 
                        allocate less than $10,000,000 to any of the 50 
                        States of the United States or the District of 
                        Columbia, the allocation for such State of the 
                        United States or the District of Columbia shall 
                        be the greater of $10,000,000, 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 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 Partnership to Strengthen Homeownership 
                        Act of 2015 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 to all other of the States (as 
                        such term is defined in section 1303).'';
                    (E) in paragraph (7)(B)(iv), by striking ``section 
                132'' and inserting ``section 1132''; and
                    (F) 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.''; and
            (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.''.

SEC. 503. CAPITAL MAGNET FUND.

    Section 1339 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4569) is amended--
            (1) in subsection (b)(1), by inserting ``or section 501 of 
        the Partnership to Strengthen Homeownership Act of 2015'' after 
        ``section 1337'';
            (2) in subsection (c)(2), by inserting ``and tribal'' after 
        ``rural''; and
            (3) in subsection (h)(2)(A), by inserting ``and tribal'' 
        after ``rural''.

SEC. 504. MARKET ACCESS FUND.

    (a) Establishment.--Ginnie Mae shall establish a fund, to be known 
as the ``Market Access Fund''.
    (b) Deposits.--The Market Access Fund shall be credited with--
            (1) the share of the fee charged and collected by the 
        Platform under section 501(a)(1)(B)(iii); 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 extremely low-, very low-, low-, and moderate-income and 
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 Ginnie Mae 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 Ginnie Mae, 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 Ginnie Mae, 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; and
            (6) providing incentives to achieve broader access to 
        credit.
    (d) Annual Report.--The Director of Ginnie Mae 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 an evaluation of how each 
grant, loan, or credit support program--
            (1) succeeded in meeting or failed to meet the needs of 
        certain populations, especially extremely low-, very low-, low-
        , and moderate-income and underserved or hard-to-serve 
        populations; and
            (2) succeeded in maximizing or failed to maximize the 
        leverage of public investment made for each such grant, loan, 
        or credit support program.

                      TITLE VI--GENERAL PROVISIONS

SEC. 601. RULE OF CONSTRUCTION REGARDING SENIOR PREFERRED STOCK 
              PURCHASE AGREEMENTS.

    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. 602. TREATMENT OF COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.

    (a) Amendment.--Section 10(a) of the Federal Home Loan Bank Act (12 
U.S.C. 1430(a)) is amended--
            (1) 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
            (2) 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''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the certification date.
                                 <all>