GSE Portfolio Risk Reduction Act of 2011

GSE Portfolio Risk Reduction Act of 2011 - Amends the Housing and Community Development Act of 1992 to prohibit the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises or GSEs) from owning mortgage assets in excess of: (1) $700 billion one year after enactment of this Act; (2) $600 billion two years after enactment of this Act; (3) $475 billion three years after enactment of this Act; (4) $350 billion four years after enactment of this Act; and (5) $250 billion five years after enactment of this Act.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1224 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1224

To increase the rate of the required annual reductions of the retained 
               portfolios of Fannie Mae and Freddie Mac.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2011

 Mr. Hensarling (for himself, Mr. Bachus, Mr. Garrett, and Mr. Pearce) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
To increase the rate of the required annual reductions of the retained 
               portfolios of Fannie Mae and Freddie Mac.

    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 Portfolio Risk Reduction Act of 
2011''.

SEC. 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. 1369F. 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 Portfolio Risk Reduction Act of 
        2011 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).''.
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