GSE Bailout Elimination and Taxpayer Protection Act - Sets a deadline for the Director of the Federal Housing Finance Agency (FHFA) to terminate the conservatorship of either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) if the Director determines that it is financially viable. (Refers to both Fannie Mae and Freddie Mac as enterprises [government-sponsored enterprises, or GSEs].)
Requires the Director to appoint the FHFA immediately as receiver of either enterprise if it is found not to be financially viable.
Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (FHEFSSA) to repeal: (1) its housing goals, and (2) the housing trust fund.
Amends the Housing and Community Development Act of 1992 to restrict the authority of an enterprise to acquire mortgage assets following its emergence from conservatorship.
Repeals certain temporary, general, and permanent high-cost area increases to conforming loan limits.
Establishes new conforming loan limits.
Amends FHEFSSA to require the Director to require each enterprise to charge a guarantee fee, in connection with any mortrgage guaranteed after a specified three-year period, in an amount equivalent to that which the enterprise would charge if it were held to the same capital standards as private banks or financial institutions.
Amends the Federal National Mortgage Association Charter Act (FNMACA) and the Federal Home Loan Mortgage Corporation Act (FHLMCA) to prohibit reduction in the rate of dividends paid on each enterprise's Variable Liquidation Preference Senior Preferred Stock.
Amends FHEFSSA to require the Director to establish minimum levels of capital for the enterprises, including levels in excess of such minimums as necessary or appropriate in light of an enterprise's particular circumstances. Authorizes the Director to deem failure of an enterprise to maintain revised minimum capital levels to constitute an unsafe and unsound condition.
Amends FNMACA and FHLMCA to: (1) prohibit the enterprises from purchasing mortgages if the mortgagor has paid less than the specified minimum downpayment; and (2) require the enterprises to pay state and local taxes.
Repeals the exemption of mortgage-backed securities and subordinate obligations of Fannie Mae, as well as mortgage-backed securities of Freddie Mac, from regulation by the Securities and Exchange Commission (SEC), thus subjecting such securities and obligations to SEC regulation.
Prescribes a deadline and procedures for the wind down of operations and dissolution of an enterprise three years after enactment of this Act.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1182 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1182
To establish a term certain for the conservatorships of Fannie Mae and
Freddie Mac, to provide conditions for continued operation of such
enterprises, and to provide for the wind down of such operations and
the dissolution of such enterprises.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2011
Mr. Hensarling (for himself and Mr. Bachus) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To establish a term certain for the conservatorships of Fannie Mae and
Freddie Mac, to provide conditions for continued operation of such
enterprises, and to provide for the wind down of such operations and
the dissolution of such enterprises.
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 ``GSE Bailout Elimination and Taxpayer
Protection Act''.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Charter.--The term ``charter'' means--
(A) with respect to the Federal National Mortgage
Association, the Federal National Mortgage Association
Charter Act (12 U.S.C. 1716 et seq.); and
(B) with respect to the Federal Home Loan Mortgage
Corporation, the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1451 et seq.).
(2) Director.--The term ``Director'' means the Director of
the Federal Housing Finance Agency.
(3) Enterprise.--The term ``enterprise'' means--
(A) the Federal National Mortgage Association; and
(B) the Federal Home Loan Mortgage Corporation.
(4) Guarantee.--The term ``guarantee'' means, with respect
to an enterprise, the credit support of the enterprise that is
provided by the Federal Government through its charter as a
Government-sponsored enterprise.
SEC. 3. TERMINATION OF CURRENT CONSERVATORSHIP.
(a) In General.--Upon the expiration of the period referred to in
subsection (b), the Director of the Federal Housing Finance Agency
shall determine, with respect to each enterprise, if the enterprise is
financially viable at that time and--
(1) if the Director determines that the enterprise is
financially viable, immediately take all actions necessary to
terminate the conservatorship for the enterprise that is in
effect pursuant to section 1367 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4617); or
(2) if the Director determines that the enterprise is not
financially viable, immediately appoint the Federal Housing
Finance Agency as receiver under section 1367 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992
and carry out such receivership under the authority of such
section.
(b) Timing.--The period referred to in this subsection is, with
respect to an enterprise, the 24-month period beginning upon the date
of the enactment of this Act.
(c) Financial Viability.--The Director may not determine that an
enterprise is financially viable for purposes of subsection (a) if the
Director determines that any of the conditions for receivership set
forth in paragraph (3) or (4) of section 1367(a) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4617(a)) exists at the time with respect to the enterprise.
SEC. 4. LIMITATIONS ON ENTERPRISE AUTHORITY.
(a) Limitations Effective Upon Enactment.--Upon the enactment of
this Act, the following provisions shall take effect:
(1) Repeal of mandatory housing activities.--
(A) Repeal of housing goals.--The Federal Housing
Enterprises Financial Safety and Soundness Act of 1992
is amended by striking sections 1331 through 1336 (12
U.S.C. 4561-6).
(B) Conforming amendments.--Federal Housing
Enterprises Financial Safety and Soundness Act of 1992
is amended--
(i) in section 1303(28) (12 U.S.C.
4502(28)), by striking ``, and, for the
purposes'' and all that follows through
``designated disaster areas'';
(ii) in section 1324(b)(1)(A) (12 U.S.C.
4544(b)(1)(A)), by striking clauses (i), (ii),
and (iv);
(iii) in section 1339(h) (12 U.S.C.
4569(h)), by striking paragraph (7);
(iv) in section 1341 (12 U.S.C. 4581)--
(I) in subsection (a)--
(aa) in paragraph (1), by
inserting ``or'' after the
semicolon at the end;
(bb) in paragraph (2), by
striking the semicolon at the
end and inserting a period; and
(cc) by striking paragraphs
(3) and (4); and
(II) in subsection (b)(2)--
(aa) in subparagraph (A),
by inserting ``or'' after the
semicolon at the end;
(bb) by striking
subparagraphs (B) and (C); and
(cc) by redesignating
subparagraph (D) as
subparagraph (B);
(v) in section 1345(a) (12 U.S.C.
4585(a))--
(I) in paragraph (1), by inserting
``or'' after the semicolon at the end;
(II) in paragraph (2), by striking
the semicolon at the end and inserting
a period; and
(III) by striking paragraphs (3)
and (4); and
(vi) in section 1371(a)(2) (12 U.S.C.
4631(a)(2)), by striking ``with any housing
goal established under subpart B of part 2 of
subtitle A of this title, with section 1336 or
1337 of this title,''.
(C) Repeal of housing trust fund.--
(i) Repeal.--The Federal Housing
Enterprises Financial Safety and Soundness Act
of 1992 is amended by striking sections 1337
and 1338 (12 U.S.C. 4567, 4568).
(ii) Conforming amendments.--The Federal
Housing Enterprises Financial Safety and
Soundness Act of 1992 is amended--
(I) in section 1303(24)(B) (12
U.S.C. 4502(24)(B)), by striking ``1338
and'';
(II) in section 1324(b)(1)(A) (12
U.S.C. 4544(b)(1)(A))--
(aa) by striking clause
(iii);
(bb) by striking the dash
after ``which'' and inserting
the text of clause (v) and a
period; and
(cc) by striking clause
(v);
(III) in section 1339(b)--
(aa) by striking paragraph
(1);
(bb) by striking the dash
after ``consist of'' and
inserting the text of paragraph
(2) and a period; and
(cc) by striking paragraph
(2); and
(IV) in section 1346 (12 U.S.C.
4585), by striking subsection (f).
(2) Portfolio limitations.--Subtitle B of title XIII of the
Housing and Community Development Act of 1992 (12 U.S.C. 4611
et seq.) is amended by adding at the end the following new
section:
``SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF ENTERPRISES.
``(a) Restriction.--No enterprise shall own, as of any applicable
date in this subsection or thereafter, mortgage assets in excess of--
``(1) upon the expiration of the 1-year period that begins
upon the enactment of the GSE Bailout Elimination and Taxpayer
Protection Act or thereafter, $700,000,000,000;
``(2) upon the expiration of the 2-year period that begins
upon the enactment of such Act or thereafter, $600,000,000,000;
``(3) upon the expiration of the 3-year period that begins
upon the enactment of such Act or thereafter, $475,000,000,000;
``(4) upon the expiration of the 4-year period that begins
upon the enactment of such Act or thereafter, $350,000,000,000;
and
``(5) upon the expiration of the 5-year period that begins
upon the enactment of such Act or thereafter, $250,000,000,000.
``(b) Definition of Mortgage Assets.--For purposes of this section,
the term `mortgage assets' means, with respect to an enterprise, assets
of such enterprise consisting of mortgages, mortgage loans, mortgage-
related securities, participation certificates, mortgage-backed
commercial paper, obligations of real estate mortgage investment
conduits and similar assets, in each case to the extent such assets
would appear on the balance sheet of such enterprise in accordance with
generally accepted accounting principles in effect in the United States
as of September 7, 2008 (as set forth in the opinions and
pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board from time to
time; and without giving any effect to any change that may be made
after September 7, 2008, in respect of Statement of Financial
Accounting Standards No. 140 or any similar accounting standard).''.
(3) Repeal of increases to conforming loan limits.--
(A) Repeal of temporary increases.--
(i) Continuing appropriations act, 2011.--
Section 146 of the Continuing Appropriations
Act, 2011 (Public Law 111-242; 124 Stat. 2615)
is hereby repealed.
(ii) Continuing appropriations resolution,
2010.--Section 167 of the Continuing
Appropriations Resolution, 2010 (division B of
Public Law 111-68 (as added by section 104 of
division B of Public Law 111-88; 123 Stat.
2973)) is hereby repealed.
(iii) American recovery and reinvestment
act of 2009.--Section 1203 of division A of the
American Recovery and Reinvestment Act of 2009
(Public Law 111-5; 123 Stat. 225) is hereby
repealed.
(iv) Economic stimulus act of 2008.--
Section 201 of the Economic Stimulus Act of
2008 (Public Law 110-185; 122 Stat. 619) is
hereby repealed.
(B) Repeal of general limit and permanent high-cost
area increase.--Paragraph (2) of section 302(b) of the
Federal National Mortgage Association Charter Act (12
U.S.C. 1717(b)(2)) and paragraph (2) of section 305(a)
of the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2)) are each amended to read as such
sections were in effect immediately before the
enactment of the Housing and Economic Recovery Act of
2008 (Public Law 110-289).
(C) Repeal of new housing price index.--Section
1322 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992, as added by section
1124(d) of the Housing and Economic Recovery Act of
2008 (Public Law 110-289), is hereby repealed.
(D) Repeal.--Section 1124 of the Housing and
Economic Recovery Act of 2008 (Public Law 110-289) is
hereby repealed.
(E) Establishment of conforming loan limit.--For
the first year beginning after the date of the
enactment of this Act, the limitations governing the
maximum original principal obligation of conventional
mortgages that may be purchased by the Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation, referred to in section 302(b)(2) of the
Federal National Mortgage Association Charter Act (12
U.S.C. 1717(b)(2)) and section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)), respectively, shall be considered to be--
(i) $417,000 for a mortgage secured by a
single-family residence,
(ii) $533,850 for a mortgage secured by a
2-family residence,
(iii) $645,300 for a mortgage secured by a
3-family residence, and
(iv) $801,950 for a mortgage secured by a
4-family residence,
and such limits shall be adjusted effective each
January 1 thereafter in accordance with such sections
302(b)(2) and 305(a)(2).
(4) Increase in guarantee fees.--Subpart A of part 2 of
subtitle A of Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 is amended by adding after section 1326
(12 U.S.C. 4546) the following new section:
``SEC. 1327. ENTERPRISE GUARANTEE FEES.
``(a) Increase.--Subject to subsection (b), the Director shall, by
regulation or order, require that each enterprise charge a guarantee
fee, in connection with any mortgage guaranteed after the expiration of
the 3-year period beginning on the date of the enactment of the GSE
Bailout Elimination and Taxpayer Protection Act, in an amount that the
Director determines is equivalent to the amount that the enterprise
would charge for such a fee if the enterprise were held to the same
capital standards as private banks or financial institutions.
``(b) Option to Phase-In Over 3 Years.--The Director may, at the
discretion of the Director, by regulation or order, provide for
compliance with subsection (a) by requiring each enterprise to increase
the guarantee fee charged by the enterprise incrementally during the 3-
year period specified in subsection (a) in a manner sufficient to
comply with subsection (a) upon the expiration of the period specified
in subsection (a).
``(c) Flexibility in Determination of Increase.--To determine the
amount of the increase under subsection (a), the Director shall
establish a pricing mechanism as the Director considers appropriate,
taking into consideration current market conditions and any data
collected pursuant to section 1601 of the Housing and Economic Recovery
Act of 2008 (12 U.S.C. 4514a).
``(d) Definition of Guarantee Fee.--For purposes of this section,
the term `guarantee fee' means a fee charged by an enterprise in
connection with any guarantee, issued by the enterprise, of the timely
payment of principal and interest on securities, notes, and other
obligations based on or backed by mortgages on residential real
properties. Such term includes--
``(1) the guaranty fee charged by the Federal National
Mortgage Association with respect to mortgage-backed
securities; and
``(2) the management and guarantee fee charged by the
Federal Home Loan Mortgage Corporation with respect to
participation certificates.''.
(5) Prohibition of reduction in rate of dividends.--
(A) Fannie mae.--Section 304 of the Federal
National Mortgage Association Charter Act (12 U.S.C.
1719) is amended by adding at the end the following new
subsection:
``(h) Prohibition of Reduction in Rate of Dividends on Senior
Preferred Stock.--Notwithstanding any other provision of law, any
provision of the Senior Preferred Stock Purchase Agreement entered into
between the Department of the Treasury and the corporation in September
2008 (as such Agreement may be amended and restated), 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 the corporation issued pursuant to such Agreement,
the rate of dividends paid on the Variable Liquidation Preference
Senior Preferred Stock of the corporation issued pursuant to such
Agreement shall not be reduced from the rate in effect pursuant to such
Agreement as of March 1, 2011.''.
(B) Freddie mac.--Section 306 of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1455) is
amended by adding at the end the following new
subsection:
``(m) Prohibition of Reduction in Rate of Dividends on Senior
Preferred Stock.--Notwithstanding any other provision of law, any
provision of the Senior Preferred Stock Purchase Agreement entered into
between the Department of the Treasury and the Corporation in September
2008 (as such Agreement may be amended and restated), 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 the Corporation issued pursuant to such Agreement,
the rate of dividends paid on the Variable Liquidation Preference
Senior Preferred Stock of the Corporation issued pursuant to such
Agreement shall not be reduced from the rate in effect pursuant to such
Agreement as of March 1, 2011.''.
(b) Revised Authority.--Upon the expiration of the period referred
to in section 3(b), if the Director makes the determination under
section 3(a)(1), the following provisions shall take effect:
(1) Increase in minimum capital requirement.--Section 1362
of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4612) is amended--
(A) in subsection (a), by striking ``For purposes
of this subtitle, the minimum capital level for each
enterprise shall be'' and inserting ``The minimum
capital level established under subsection (g) for each
enterprise may not be lower than'';
(B) in subsection (c)--
(i) by striking ``subsections (a) and'' and
inserting ``subsection'';
(ii) by striking ``regulated entities'' the
first place such term appears and inserting
``Federal Home Loan Banks'';
(iii) by striking ``for the enterprises,'';
(iv) by striking ``, or for both the
enterprises and the banks,'';
(v) by striking ``the level specified in
subsection (a) for the enterprises or''; and
(vi) by striking ``the regulated entities
operate'' and inserting ``such banks operate'';
(C) in subsection (d)(1)--
(i) by striking ``subsections (a) and'' and
inserting ``subsection''; and
(ii) by striking ``regulated entity'' each
place such term appears and inserting ``Federal
home loan bank'';
(D) in subsection (e), by striking ``regulated
entity'' each place such term appears and inserting
``Federal home loan bank'';
(E) in subsection (f)--
(i) by striking ``the amount of core
capital maintained by the enterprises,''; and
(ii) by striking ``regulated entities'' and
inserting ``banks''; and
(F) by adding at the end the following new
subsection:
``(g) Establishment of Revised Minimum Capital Levels.--
``(1) In general.--The Director shall cause the enterprises
to achieve and maintain adequate capital by establishing
minimum levels of capital for such the enterprises and by using
such other methods as the Director deems appropriate.
``(2) Authority.--The Director shall have the authority to
establish such minimum level of capital for an enterprise in
excess of the level specified under subsection (a) as the
Director, in the Director's discretion, deems to be necessary
or appropriate in light of the particular circumstances of the
enterprise.
``(h) Failure To Maintain Revised Minimum Capital Levels.--
``(1) Unsafe and unsound practice or condition.--Failure of
a enterprise to maintain capital at or above its minimum level
as established pursuant to subsection (g) of this section may
be deemed by the Director, in his discretion, to constitute an
unsafe and unsound practice or condition within the meaning of
this title.
``(2) Directive to achieve capital level.--
``(A) Authority.--In addition to, or in lieu of,
any other action authorized by law, including paragraph
(1), the Director may issue a directive to an
enterprise that fails to maintain capital at or above
its required level as established pursuant to
subsection (g) of this section.
``(B) Plan.--Such directive may require the
enterprise to submit and adhere to a plan acceptable to
the Director describing the means and timing by which
the enterprise shall achieve its required capital
level.
``(C) Enforcement.--Any such directive issued
pursuant to this paragraph, including plans submitted
pursuant thereto, shall be enforceable under the
provisions of subtitle C of this title to the same
extent as an effective and outstanding order issued
pursuant to subtitle C of this title which has become
final.
``(3) Adherence to plan.--
``(A) Consideration.--The Director may consider
such enterprise's progress in adhering to any plan
required under this subsection whenever such enterprise
seeks the requisite approval of the Director for any
proposal which would divert earnings, diminish capital,
or otherwise impede such enterprise's progress in
achieving its minimum capital level.
``(B) Denial.--The Director may deny such approval
where it determines that such proposal would adversely
affect the ability of the enterprise to comply with
such plan.''.
(2) Requirement of minimum downpayment for mortgages
purchased.--
(A) Fannie mae.--Subsection (b) of section 302 of
the Federal National Mortgage Association Charter Act
(12 U.S.C. 1717(b)) is amended by adding at the end the
following new paragraph:
``(7) Notwithstanding any other provision of this Act, the
corporation may not newly purchase any mortgage unless the mortgagor
has paid, in cash or its equivalent on account of the property securing
repayment such mortgage, in accordance with regulations issued by the
Director of the Federal Housing Finance Agency, not less than--
``(A) for any mortgage purchased during the 12-month period
beginning upon the expiration of the period referred to in
section 3(b) of the GSE Bailout Elimination and Taxpayer
Protection Act, 5 percent of the appraised value of the
property;
``(B) for any mortgage purchased during the 12-month period
beginning upon the expiration of the 12-month period referred
to in subparagraph (A) of this paragraph, 7.5 percent of the
appraised value of the property; and
``(C) for any mortgage purchased during the 12-month period
beginning upon the expiration of the 12-month period referred
to in subparagraph (B) of this paragraph, 10 percent of the
appraised value of the property.''.
(B) Freddie mac.--Subsection (a) of section 305 of
the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)) is amended by adding at the end the
following new paragraph:
``(6) Notwithstanding any other provision of this Act, the
Corporation may not newly purchase any mortgage unless the mortgagor
has paid, in cash or its equivalent on account of the property securing
repayment such mortgage, in accordance with regulations issued by the
Director of the Federal Housing Finance Agency, not less than--
``(A) for any mortgage purchased during the 12-month period
beginning upon the expiration of the period referred to in
section 3(b) of the GSE Bailout Elimination and Taxpayer
Protection Act, 5 percent of the appraised value of the
property;
``(B) for any mortgage purchased during the 12-month period
beginning upon the expiration of the 12-month period referred
to in subparagraph (A) of this paragraph, 7.5 percent of the
appraised value of the property; and
``(C) for any mortgage purchased during the 12-month period
beginning upon the expiration of the 12-month period referred
to in subparagraph (B) of this paragraph, 10 percent of the
appraised value of the property.''.
(3) Requirement to pay state and local taxes.--
(A) Fannie mae.--Paragraph (2) of section 309(c) of
the Federal National Mortgage Association Charter Act
(12 U.S.C. 1723a(c)(2)) is amended--
(i) by striking ``shall be exempt from''
and inserting ``shall be subject to''; and
(ii) by striking ``except that any'' and
inserting ``and any''.
(B) Freddie mac.--Section 303(e) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1452(e))
is amended--
(i) by striking ``shall be exempt from''
and inserting ``shall be subject to''; and
(ii) by striking ``except that any'' and
inserting ``and any''.
(4) Repeals relating to registration of securities.--
(A) Fannie mae.--
(i) Mortgage-backed securities.--Section
304(d) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1719(d)) is
amended by striking the fourth sentence.
(ii) Subordinate obligations.--Section
304(e) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1719(e)) is
amended by striking the fourth sentence.
(B) Freddie mac.--Section 306 of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1455) is
amended by striking subsection (g).
SEC. 5. REQUIRED WIND DOWN OF OPERATIONS AND DISSOLUTION OF ENTERPRISE.
(a) Applicability.--This section shall apply to an enterprise upon
the expiration of the 3-year period that begins upon the expiration of
the period referred to in section 3(b).
(b) Repeal of Charter.--Upon the applicability of this section to
an enterprise, the charter for the enterprise is repealed and the
enterprise 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 outstanding debt
obligations and mortgage-backed securities of the enterprise.
(c) Wind Down.--Upon the applicability of this section to an
enterprise, the Director and the Secretary of the Treasury shall
jointly take such action, and may prescribe such regulations and
procedures, as may be necessary to wind down the operations of an
enterprise as an entity chartered by the United States Government over
the duration of the 10-year period beginning upon the applicability of
this section to the enterprise (pursuant to subsection (a)) in an
orderly manner consistent with this Act and the ongoing obligations of
the enterprise.
(d) Division of Assets and Liabilities; Authority To Establish
Holding Corporation and Dissolution Trust Fund.--The action and
procedures required under subsection (c)--
(1) shall include the establishment and execution of plans
to provide for an equitable division and distribution of assets
and liabilities of the enterprise, including any liability of
the enterprise to the United States Government or a Federal
reserve bank that may continue after the end of the period
described in subsection (c); and
(2) may provide for establishment of--
(A) a holding corporation organized under the laws
of any State of the United States or the District of
Columbia for the purposes of the reorganization and
restructuring of the enterprise; and
(B) one or more trusts to which to transfer--
(i) remaining debt obligations of the
enterprise, for the benefit of holders of such
remaining obligations; or
(ii) remaining mortgages held for the
purpose of backing mortgage-backed securities,
for the benefit of holders of such remaining
securities.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
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