Let the GSEs Pay Us Back Act of 2013 - Directs the Secretary of the Treasury, the Federal National Mortgage Association (Fannie Mae) and any affiliate, and the Federal Home Loan Mortgage Corporation (Freddie Mac) and any affiliate (government sponsored enterprises or GSEs), with each GSE acting through an appointed conservator, to enter into an agreement that modifies the Preferred Stock Purchase Agreement for the GSE to provide that: (1) any Senior Preferred Stock purchased under the Agreement by the Treasury shall not accrue further dividends; and (2) any amounts received by the GSE, before or after the modification, during a single year as a draw upon the Treasury's commitment under the Agreement shall be treated as a loan by the Treasury to the GSE meeting specified criteria.
Specifies as such criteria that this loan be treated as though originated on the date of the last such draw during that year, with: (1) an original principal obligation equal to the aggregate amount of such draws, (2) a 30-year term, (3) an annual interest rate of 5%, and (4) requirements for full amortization of the loan over the 30-year term. Requires the GSE to repay the loan in accordance with the amortization schedule established.
Requires any dividends paid by the GSE to the Treasury under the Agreement before the modification to be treated as payments of principal and interest due under the loan, to be credited against payments due: (1) first to the loan with the earliest origination date that has not yet been fully repaid until it is repaid, and (2) then to the loan having the next earliest origination date until it is repaid.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2435 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2435
To provide for the repayment of amounts borrowed by Fannie Mae and
Freddie Mac from the Treasury of the United States, together with
interest, over a 30-year period, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2013
Mr. Capuano introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To provide for the repayment of amounts borrowed by Fannie Mae and
Freddie Mac from the Treasury of the United States, together with
interest, over a 30-year period, 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 ``Let the GSEs Pay Us Back Act of
2013''.
SEC. 2. REPAYMENT OF TREASURY BORROWING.
The Secretary of the Treasury and each enterprise (acting through
the conservator for the enterprise appointed pursuant to section 1367
of the Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4617)) shall enter into an agreement with that
modifies the Preferred Stock Purchase Agreement for such enterprise to
provide as follows:
(1) Termination of dividends.--That after such
modification, any Senior Preferred Stock purchased under such
Agreement by the Department of the Treasury shall not accrue
further dividends.
(2) Treatment of enterprise draws on treasury.--That any
amounts received, before or after such modification, during a
single year by the enterprise as a draw on the commitment made
by the Department of the Treasury under such an Agreement,
shall be treated as a loan made by the Treasury to the
enterprise that--
(A) was originated on the date of the last such
draw during such year;
(B) has an original principal obligation in an
amount equal to the aggregate amount of such draws;
(C) has a term to maturity of 30 years;
(D) has an annual interest rate of 5 percent for
the entire term of the loan;
(E) has terms that provide for full amortization of
the loan over such term to maturity; and
(F) shall be repaid by the enterprise in accordance
with the amortization schedule established for the loan
pursuant to subparagraph (E) of this paragraph, subject
to paragraph (3).
(3) Treatment of dividends paid.--That any dividends paid
by the enterprise to the Department of the Treasury under the
Senior Preferred Stock Agreement before such modification of
such Agreement shall be treated as payments of principal and
interest due under the loan referred to in paragraph (2), and
shall be credited against payments due under the terms of such
loan (in accordance with the amortization schedule established
for such loan pursuant to paragraph (2)(E)), first to such loan
have the earliest origination date that has not yet been fully
repaid until such loan is repaid, and then to the next such
loan having the next earliest origination date until such loan
is repaid.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Enterprise.--The term ``enterprise'' has the meaning
given such term in section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4502).
(2) Preferred stock purchase agreement.--The term
``Preferred Stock Purchase Agreement'' means, with respect to
an enterprise, the Amended and Restated Senior Preferred Stock
Purchase Agreements, dated September 26, 2008, amended May 6,
2009, further amended December 24, 2009, and further amended
December 24, 2009 (as such agreements may be further amended),
between the United States Department of the Treasury and such
enterprise.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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