[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1673 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 1673

To amend the Federal Housing Enterprises Financial Safety and Soundness 
    Act of 1992 to establish a secondary reserve fund for a housing 
 enterprise under conservatorship to protect taxpayers against loss in 
        the event of a housing downturn, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2015

Mrs. Blackburn introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Housing Enterprises Financial Safety and Soundness 
    Act of 1992 to establish a secondary reserve fund for a housing 
 enterprise under conservatorship to protect taxpayers against loss in 
        the event of a housing downturn, 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.

    This Act may be cited as the ``Enterprise Secondary Reserve 
Taxpayer Protection and Government Accountability Act of 2015''.

SEC. 2. SECONDARY RESERVE.

    Section 1362 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4612) is amended--
            (1) by striking the section designation and heading and 
        inserting the following:

``SEC. 1362. MINIMUM CAPITAL LEVELS AND SECONDARY RESERVE.'';

            (2) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (3) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Secondary Reserve.--
            ``(1) Establishment.--Notwithstanding any other provision 
        of law, rule, regulation, order, or agreement, the Director 
        shall, by regulation, establish for any enterprise operating in 
        conservatorship pursuant to section 1367 a secondary reserve 
        fund and shall deposit in such fund from any revenues of the 
        enterprise an amount equal to the amounts enumerated under 
        subsection (a) for the enterprise.
            ``(2) Maintenance.--Amounts in the secondary reserve fund 
        shall be held in escrow by the enterprise until--
                    ``(A) the Director uses such amounts pursuant to 
                paragraph (3); or
                    ``(B) the Director abolishes the secondary reserve 
                fund pursuant to paragraph (4).
            ``(3) Availability of amounts.--If the Director determines, 
        in accordance with regulations issued under paragraph (5), that 
        losses of an enterprise operating in conservatorship pursuant 
        to section 1367 will exceed amounts available for the 
        enterprise under subsection (a), (c), (d), or (f), the Director 
        shall make a determination, in accordance with such regulation, 
        whether to use funds held in the secondary reserve for the 
        enterprise.
            ``(4) Abolishment.--Upon the dissolution of the 
        conservatorship of an enterprise, the Director shall abolish 
        any secondary reserve established under paragraph (1) for the 
        enterprise and amounts remaining in such reserve upon such 
        abolishment shall revert to meet capital requirements under 
        subsections (a), (c), (d), and (f) and then to earnings of the 
        enterprise.
            ``(5) Regulations.--The Director shall issue regulations 
        establishing--
                    ``(A) standards and procedures for the 
                establishment of a secondary reserve under paragraph 
                (1);
                    ``(B) standards and procedures that the Director 
                will use to make the determinations under paragraph 
                (3); and
                    ``(C) procedures for abolishment of a secondary 
                reserve under paragraph (4).
            ``(6) Treatment of secondary reserve.--Any secondary 
        reserve established under this Act for an enterprise shall not 
        be considered capital, a capital reserve, or otherwise an asset 
        of the enterprise, other than as part of a capital restoration 
        plan for the enterprise approved under section 1369C, during 
        the pendency of a conservatorship for the enterprise.''.

SEC. 3. EFFECTIVE DATE.

    The amendments made by section 2 of this Act shall take effect upon 
the expiration of the 90-day period beginning on the date of the 
enactment of this Act and the Director of the Federal Housing Finance 
Agency shall issue the regulations required under section 1362(e)(5) of 
the Federal Housing Enterprises Financial Safety and Soundness Act of 
1992, added by the amendment made by such section 2, before the 
expiration of such period.
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