Partnership to Strengthen Homeownership Act of 2014 - Amends the National Housing Act to remove the Government National Mortgage Association (Ginnie Mae) from the Department of Housing and Urban Development (HUD) and establish it as an independent entity, with a Director in place of the Secretary of Housing and Urban Development.
Transfers to Ginnie Mae the powers, duties, personnel, and property of Federal Housing Finance Agency (FHFA), which is hereby abolished.
Establishes within Ginnie Mae the Issuing Platform, available for use only by eligible originators and aggregators of mortgages, to issue standardized mortgage-backed securities.
Requires Ginnie Mae to establish: (1) a method of assessing a national average single-family house price for use in calculating the loan limits for single-family mortgage loans, and (2) an insurance fund and insure 100% of each security issued by the Platform.
Prescribes requirements for: (1) a participating mortgage originator or aggregator to deliver to the Platform a pool of eligible mortgage loans; and (2) the Platform, upon receiving a pool of eligible mortgages, to create standardized mortgage-backed securities collateralized by such mortgages and transfer them to the mortgage originator or aggregator.
Exempts standardized mortgage-backed securities issued by the Platform from federal securities laws.
Outlines requirements for: (1) servicing rights, representations, and warranties; (2) insurance for securities issued by the Platform, (3) capital and related solvency standards, and (4) Fund reserve balance.
Prescribes requirements for Ginnie Mae's actions if unusual and exigent circumstances have created or threaten to create an anomalous lack of mortgage credit availability within the housing market that could materially and severely disrupt the functioning of the housing finance system of the United States. Prohibits Ginnie Mae, in exercising such authority, from: (1) bailing out approved entities or affiliates, or (2) assisting companies to avoid bankruptcy.
Amends the Federal Home Loan Bank Act to make any lender of home mortgage loans eligible to become a member of a Federal Home Loan Bank. Requires each such Bank to provide pooling services to both members and non-members who wish to pool eligible mortgages for purposes of securitizing them through the Issuing Platform.
Directs the Director of Ginnie Mae to: (1) prohibit the government-sponsored enterprises (GSEs) (Federal National Mortgage Association [Fannie Mae] and the Federal Home Loan Mortgage Corporation [Freddie Mac]) after a specified certification date from issuing, guaranteeing, or purchasing any security backed by mortgages on 1- to 4-family residences except as specifically authorized by this Act; (2) permit a GSE to act until a certain time as a participating aggregator of eligible mortgages for securitization if the business volume of their originators is insufficient to allow them to aggregate and securitize such mortgages; and (3) allow a GSE to act as a reinsurer for a mortgage-backed security until the GSE goes into receivership under this Act.
Requires each GSE to establish a risk-sharing pilot program to develop private sector first-loss positions on mortgage-backed securities.
Continues the current conservatorships of the GSEs until the commencement of mandatory receivership under this Act.
Requires the Director to appoint Ginnie Mae as receiver of the GSEs by a certain date. Prescribes requirements for winding down the GSEs.
Directs the Director to direct Fannie Mae and Freddie Mac to develop a plan to establish a multifamily subsidiary for purposes of providing sufficient multifamily housing financing and establishing a competitive multifamily housing market for multifamily housing guarantors engaging in multifamily covered securities. Makes necessary transfers of Fannie Mae and Freddie Mac functions to the multifamily subsidiary.
Directs the Director to develop, adopt, publish, and enforce standards for the approval of multifamily guarantors to: (1) issue securities collateralized by eligible multifamily mortgage loans, and (2) guarantee the timely payment of principal and interest on such securities collateralized by eligible multifamily mortgage loans and insured by Ginnie Mae.
Amends the Housing and Community Development Act of 1992 to allow Ginnie Mae to securitize multifamily loans insured or reinsured under such Act under certain circumstances.
Requires the Platform in each fiscal year to: (1) charge and collect a certain fee for the outstanding principal balance of all eligible mortgage loans that collateralize securities insured under this Act and all other mortgage loans collateralizing securities on which Ginnie Mae guarantees the timely payment of principal and interest; and (2) allocate or otherwise transfer on an annual basis specified percentages of such fee amounts to fund the Housing Trust Fund, the Capital Magnet Fund, and the Market Access Fund (which Ginnie Mae is directed to establish).
Amends the Safety and Soundness Act with respect to the Housing Trust Fund and housing for Indians.
Amends the Federal Home Loan Bank Act to authorize Federal Home Loan Banks to make long-term secured advances to their members to provide funds to community development financial institutions.
Requires a Federal Home Loan Bank, at the time of origination or renewal of a loan or advance, to obtain and maintain a security interest in collateral eligible pursuant to any secured loan for a community development financial institution.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5055 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5055
To reform the housing finance system of the United States, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2014
Mr. Delaney (for himself, Mr. Carney, Mr. Himes, Mr. Polis, Mr. David
Scott of Georgia, Mr. Murphy of Florida, Mr. Heck of Washington, Ms.
Sinema, Mr. Meeks, Mr. Foster, Mr. Welch, Mr. Owens, and Mr. Quigley)
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 2014''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. 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.
TITLE IV--MULTIFAMILY HOUSING FINANCE
Sec. 401. Establishment of multifamily subsidiaries.
Sec. 402. Disposition of multifamily businesses.
Sec. 403. Approval and supervision of multifamily guarantors.
Sec. 404. Other forms of multifamily risk-sharing.
Sec. 405. Ginnie Mae securitization of FHA risk-sharing loans.
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. 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''--
(A) has the meaning given the term ``qualified
mortgage'' under section 129C(b)(2)(A) of the Truth in
Lending Act (15 U.S.C. 1639c), as such meaning may be
adjusted by the Director if the Director determines
such adjustment is appropriate; and
(B) includes 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 a property with--
(i) 5 or more residential units; or
(ii) 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) 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.
(13) Platform.--The term ``Platform'' means the Issuing
Platform established under section 201(a).
(14) 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; Director.--
(1) Independence and term.--Subsection (a) of section 308
of the National Housing Act (12 U.S.C. 1723(a)) is amended--
(A) in the first sentence--
(i) by striking ``Secretary of Housing and
Urban Development'' and inserting ``Director of
the Association appointed pursuant to this
subsection''; and
(ii) by striking ``of the Secretary'' and
inserting ``of the Director'';
(B) in the second sentence, by striking
``Secretary'' and inserting ``Director'';
(C) in the third sentence--
(i) by striking ``in the Department of
Housing and Urban Development''; and
(ii) by inserting before the period at the
end the following: ``, and shall be appointed
for a term of 5 years, unless removed before
the end of such term for cause by the
President'';
(D) in the last sentence, by striking ``Secretary''
and inserting ``Director''; and
(E) by adding at the end the following undesignated
paragraph:
``A vacancy in the position of Director that occurs before the
expiration of the term for which a Director was appointed shall be
filled in the manner established under paragraph (1), and the Director
appointed to fill such vacancy shall be appointed only for the
remainder of such term. If the Senate has not confirmed a Director, the
President may designate either the individual nominated but not yet
confirmed for the position of Director or another individual, to serve
as the Acting Director, and such Acting Director shall have all the
rights, duties, powers, and responsibilities of the Director, until
such time as a Director is confirmed by the Senate. An individual may
serve as the Director after the expiration of the term for which
appointed until a successor has been appointed or confirmed.''.
(2) Conforming amendment.--Section 5315 of title 5, United
States Code, is amended, in the item relating to the President
of the Government National Mortgage Association, by striking
``. Department of Housing and Urban Development''.
(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
2014; 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.--The Director, in
consultation with the Board of Governors of the Federal Reserve,
shall--
(1) 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
(2) 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.
(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.--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.
(c) Avoidance of Duplication.--To the fullest extent possible, the
Director shall--
(1) avoid duplication of examination activities, reporting
requirements, and requests for information;
(2) rely on examination reports made by other Federal or
State regulatory agencies relating to an approved entity and
its subsidiaries, if any; and
(3) ensure that market participants and participating
aggregators are not subject to conflicting supervisory demands
by Ginnie Mae and other Federal regulatory agencies.
(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 Ginnie Mae pursuant to
paragraph (4). If the change in such house 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. Such
foregoing limitations shall also be increased, with
respect to properties of a particular size located in
any area for which 115 percent of the median house
price for such size residence exceeds the limitation
for such size residence set forth under subparagraph
(A), to the lesser of 150 percent of such limitation
for such size residence or the amount that is equal to
115 percent of the median house price in such area for
such size residence.
(4) Housing price index.--
(A) National index.--Ginnie Mae shall establish and
maintain a method of assessing a national average
single-family house price for use in calculating the
loan limits for single-family mortgage loans under
paragraph (3), and other averages as Ginnie Mae
considers appropriate, including--
(i) averages based on different geographic
regions; and
(ii) an average for houses whose mortgage
collateralized single-family covered
securities.
(B) Considerations.--In establishing the method
described under subparagraph (A), Ginnie Mae may take
into consideration such data, including existing house
price indexes, and other measures as Ginnie Mae
considers appropriate.
(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 and that there exists a sufficient number of
market participants to serve as insurers and reinsurers under section
202, 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 issue a
semiannual 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.
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 of the two
programs described under paragraphs (1) and (2). In selecting which
program to establish, Ginnie Mae shall determine which program is the
most efficient way to operate the insurance requirements under this Act
by incorporating private sector pricing.
(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 shall reflect
the anticipated cost to Ginnie Mae of providing
insurance, including the cost of obtaining reinsurance
under subsection (b).
(B) Adjustment for performance.--Ginnie Mae may
adjust the fee computed under subparagraph (A) to
reflect the historic quality of deliveries and rating
of mortgage loans made by the mortgage originators or
aggregators that originated or aggregated the mortgage
loans included in the pool of eligible mortgage loans
backing the security being insured, but in making such
adjustments, Ginnie Mae shall ensure that the weighted
average of the entire book of business matches the
ultimate price determination.
(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.
(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) Credit rating requirements.--
(A) In general.--Notwithstanding any other
provision of law, Ginnie Mae shall require a market
participant described under subsection (b) to maintain
at least an A- credit rating and shall consult with
credit rating agencies and State insurance commissions,
where applicable, to verify such rating.
(B) Flexibility for new companies.--Ginnie Mae may
waive or modify the requirement under subparagraph (A)
with respect to a new market participant.
(3) 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''.
(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.
(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.
SEC. 203. AUTHORITY TO PROTECT TAXPAYERS IN UNUSUAL AND EXIGENT MARKET
CONDITIONS.
(a) In General.--If Ginnie Mae, 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 Housing and Urban Development, 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 may, for a period of 6
months--
(1) modify or waive the reinsurance requirements under
section 202(b); and
(2) establish provisional standards for approved entities.
(b) Considerations.--In exercising the authority granted under
subsection (a), Ginnie Mae 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 may prescribe.
(d) Bailout Strictly Prohibited.--In exercising the authority
granted under subsection (a), Ginnie Mae 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; or
(2) provide aid for the purpose of assisting a single and
specific company avoid bankruptcy or any other Federal or State
insolvency proceeding.
(e) Notice.--Not later than 7 days after authorizing insurance or
establishing provisional standards under subsection (a), Ginnie Mae
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) Additional Exercise of Authority.--
(1) In general.--Subject to the limitation under subsection
(g), the authority granted to Ginnie Mae under subsection (a)
may be exercised for 2 additional 9-month periods within any
given 3-year period, provided that Ginnie Mae, 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 Housing and Urban
Development--
(A) determines--
(i) for a second exercise of authority
under subsection (a), that a second exercise of
authority under subsection (a) is necessary; or
(ii) for a third exercise of authority
under subsection (a), by an affirmative vote of
the Director of Ginnie Mae and an affirmative
vote of \2/3\ or more of the Board of Governors
of the Federal Reserve System then serving,
that a third exercise of authority under this
section is necessary; and
(B) provides notice to Congress, as provided under
subsection (e).
(2) Order of exercise of authority.--Any additional
exercise of authority under this subsection may occur
consecutively or non-consecutively.
(g) Limitation.--The authority granted to Ginnie Mae 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).
(h) Normalization and Reduction of Risk.--Following any exercise of
authority under this section, Ginnie Mae 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.
(i) 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 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 under paragraph (1) may be exercised for
additional 6-month periods.
(3) Limitation.--Ginnie Mae 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 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 duties with respect to private label
securities.--
(A) In general.--All contracts for private label
securities issued after the date of the enactment of
this Act shall include the following provisions:
(i) The qualification, responsibilities,
and duties of trustees, including requirements
set forth in the indenture or pooling and
servicing agreement, or any applicable
provisions of the Trust Indenture Act of 1939
(15 U.S.C. 77aaa et seq.).
(ii) Trustees of private label securities
shall have a fiduciary duty to protect the
financial interests of investors of such
securities.
(B) Trustee's fiduciary duty defined.--For purposes
of this paragraph, a trustee's fiduciary duty means
that a trustee shall at all times oversee, monitor, and
manage the trust that owns the mortgage loans securing
the private label securities in the financial interests
of the trust and its investors, with the same degree of
care and skill that a prudent person would exercise or
use under the circumstances in the conduct of such
person's own affairs. ln determining financial
interests, the trustee's fiduciary duty shall consider
all investors in a securitization, rather than the
interests of any particular class of investors. A
trustee that is deemed to be acting in accordance with
its fiduciary duty to the trust shall not be liable to
any investor, and shall not be subject to any
injunction, stay, or other equitable relief sought by
such investor, based solely upon such actions.
(C) Inclusion of fiduciary duty.--The governing
documents of any private label securities issued after
the date of the enactment of this Act shall
automatically be deemed to include a trustee's
fiduciary duty. The trustee's fiduciary duty may not be
abrogated or altered by the parties to such documents
and may not be amended by parties to contracts for
private label securities.
(D) Rule of construction.--Nothing in this
paragraph shall be construed to relieve any party of
its duties to participants and beneficiaries of any
employee benefit plan under the Employee Retirement
Income Security Act (29 U.S.C. 1101 et seq.).
(E) Conflicts with the trust indenture act of
1939.--To the extent that the provisions of this
paragraph conflict with any provision of the Trust
Indenture Act of 1939, the provisions of the Trust
Indenture Act of 1939 shall apply, but only to the
extent of the conflict.
(F) Study.--Not later than 3 years after the date
of enactment of this Act, Ginnie Mae shall--
(i) conduct a study to evaluate--
(I) the structure of compensation
for trustees of private label
securities;
(II) any changes to such
compensation attributable io the
imposition of the fiduciary duty
required under this paragraph; and
(III) any effects of the imposition
of such fiduciary duty on liquidity in
the market for private label
securities;
(ii) not later than 1 year after the
commencement of the study required under clause
(i), submit a report to Congress describing any
findings and conclusions of such study;
(iii) conduct a study to evaluate any
effects of the imposition of the fiduciary duty
required under this paragraph upon borrowers,
including if the imposition of' such fiduciary
duty results in additional costs and expenses
to borrowers; and
(iv) not later than 1 year after the
commencement of the study required under clause
(iii), submit a report to Congress describing
any findings and conclusions of such study.
(G) Private label security defined.--For purposes
of this paragraph, the term ``private label security''
means a mortgage-backed security that is not issued by
the Platform.
(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.--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
2014.
``(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 2014.''.
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 business 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 that--
(A) a competitive private housing finance market
has been established;
(B) competitive and equitable access to the
Platform for smaller mortgage lenders is available;
(C) 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;
(D) 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; and
(E) the Federal Home Loan Banks have created a ``to
be announced'' market that is viable in all economic
cycles.
(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 business.--The receivership shall
provide, notwithstanding any other provision of this Act, for
the transfer of the multifamily housing mortgage guarantee
business 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 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 2014), 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 2014.
``(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 2014.
``(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 2014, 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 business of the enterprises, and the market
share of the enterprises.
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.--
Notwithstanding any provision of title III or any other provision of
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.
SEC. 403. APPROVAL AND SUPERVISION OF MULTIFAMILY GUARANTORS.
(a) In General.--The Director shall develop, adopt, publish, and
enforce standards for the approval by the Director of multifamily
guarantors to--
(1) issue securities collateralized by eligible multifamily
mortgage loans; and
(2) guarantee 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; and
(2) 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.
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''.
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 Safety
and Soundness Act (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 Safety and
Soundness Act (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 Safety and Soundness Act (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 2014'' 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 2014 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 Safety and Soundness Act (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 2014'' 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''.
``(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. 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>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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