,i #aac? ,,congress #a/ ,session ,h4 ,r4 #bgfg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #bb1 #bjac ,mr4 ,g>rett 7= himself1 ,mr4 ,h5s>l+1 ,mr4 ,neugebau]1 ,mrs4 ,capito1 & ,mr4 ,mc,henry7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices1 & 9 addition to ! ,committee on ,ways & ,means1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to protect ,am]ican taxpay]s & home[n]s by creat+ a su/a9able h\s+ f9ance sy/em = ! #ba/ c5tury4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac4 #b4 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title4 ,sec4 #b4 ,table ( cont5ts4 ,title ,i--,w9d-d[n ( ,fannie ,mae & ,fr$die ,mac ,sec4 #aja4 ,%ort title4 ,sec4 #ajb4 ,def9itions4 ,sec4 #ajc4 ,t]m9ation ( curr5t cons]vator%ip2 m&atory receiv]%ip4 ,sec4 #ajd4 ,limitations on ent]prise au?ority4 ,sec4 #aje4 ,modifications to increases 9 con=m+ loan limits4 ,sec4 #ajf4 ,m&atory risk-%>+4 ,sec4 #ajg4 ,limitation ( ent]prise mortgage pur*ases to qualifi$ mortgages4 ,sec4 #ajh4 ,prohibition relat+ to use ( p[] ( em95t doma94 ,sec4 #aji4 ,receiv]'s discretion>y au?ority to create receiv]%ip entity4 ,sec4 #aaj4 ,au?ority ( receiv] to repeal ent]prise *>t]4 ,title ,,ii--,,fha ,re=m ,sec4 #bja4 ,%ort title4 ,sec4 #bjb4 ,def9itions4 ,subtitle ,a--,organization ,sec4 #baa4 ,e/abli%m5t4 ,sec4 #bab4 ,purposes4 ,sec4 #bac4 ,g5]al p[]s4 ,sec4 #bad4 ,bo>d ( ,directors4 ,sec4 #bae4 ,(fic]s & p]sonnel4 ,sec4 #baf4 ,f9ancial1 und]writ+1 & op]ations sy/ems4 ,sec4 #bag4 ,procurem5t4 ,sec4 #bah4 ,applicability ( laws4 ,sec4 #bai4 ,evaluation4 ,sec4 #bbj4 ,fund+4 ,sec4 #bba4 ,effective date4 ,subtitle ,b--,bus9ess au?ority & requirem5ts ,sec4 #bca4 ,au?ority to c>ry out ,,fha & o!r bus9ess4 ,sec4 #bcb4 ,eligible s+le-family mortgages4 ,sec4 #bcc4 ,risk-%>+4 ,sec4 #bcd4 ,limitation on mortgage insurance cov]age4 ,sec4 #bce4 ,premiums4 ,sec4 #bcf4 ,default & =eclosure /atem5t4 ,sec4 #bcg4 ,occupancy & r5t limitations = multifamily mortgage insurance4 ,sec4 #bch4 ,effective date4 ,subtitle ,c--,f9ancial safety & s\ndness ,sec4 #bea4 ,au?ority ( ,director4 ,sec4 #beb4 ,budgets & bus9ess plans4 ,sec4 #bec4 ,annual bus9ess plan2 use ( ,,gaap4 ,sec4 #bed4 ,exam9ations1 reports1 & co/ e/imates4 ,sec4 #bee4 ,reimbursem5t ( co/s4 ,sec4 #bef4 ,mutual ,mortgage ,insurance ,fund capital res]ve4 ,sec4 #beg4 ,capital classifications & p]=mance measures = ,mutual ,mortgage ,insurance ,fund4 ,sec4 #beh4 ,en=cem5t4 ,sec4 #bei4 ,capital res]ve requirem5ts = o!r funds4 ,sec4 #bfj4 ,au?ority to e/abli% tempor>y capital ratios 9 cases ( nationwide c\nt]cyclical m>ket adju/m5t4 ,sec4 #bfa4 #g-ye> borr[] susp5sion = =eclosure4 ,sec4 #bfb4 ,borr[] ineligibility ^u second =eclosure4 ,sec4 #bfc4 ,limitation on sell] concessions4 ,sec4 #bfd4 ,l5d] repur*ase requirem5t4 ,sec4 #bfe4 ,indemnification by mortgagees4 ,sec4 #bff4 ,prohibitions relat+ to use ( p[] ( em95t doma94 ,sec4 #bfg4 ,residual income requirem5t4 ,sec4 #bfh4 ,effective date4 ,subtitle ,d--,transition ,sec4 #bha4 ,transition p]iod4 ,sec4 #bhb4 ,au?ority dur+ transition p]iod4 ,sec4 #bhc4 ,advisory ,bo>d4 ,sec4 #bhd4 ,transf] ( ,,hud au?ority4 ,sec4 #bhe4 ,w9d-up ( ,,hud affairs4 ,sec4 #bhf4 ,cont9uation & coord9ation ( c]ta9 actions4 ,sec4 #bhg4 ,transf] & rights ( ,,hud employees4 ,sec4 #bhh4 ,transf] ( prop]ty & facilities4 ,sec4 #bhi4 ,effective date4 ,subtitle ,e--,relat$ am5dm5ts & provisions ,sec4 #bia4 ,,gnma au?ority4 ,sec4 #bib4 ,repeal ( c]ta9 ,,fha programs4 ,sec4 #bic4 ,con=m+ am5dm5ts4 ,sec4 #bid4 ,rule ( con/ruction4 ,sec4 #bie4 ,effective date4 ,title ,,iii--,build+ a ,new ,m>ket ,/ructure ,subtitle ,a--,national ,mortgage ,m>ket ,utility ,sec4 #cja4 ,%ort title4 ,sec4 #cjb4 ,f9d+s & purposes4 ,sec4 #cjc4 ,def9itions4 ,"p #a--;,e/abli%m5t & au?ority ( ! ,utility ,sec4 #caa4 ,e/abli%m5t4 ,sec4 #cab4 ,g5]al p[]s2 au?oriz$ & prohibit$ activities4 ,sec4 #cac4 ,transf] ( own]%ip ( ,plat=m4 ,sec4 #cad4 ,fund+4 ,sec4 #cae4 ,regulation1 sup]vision1 & en=cem5t4 ,sec4 #caf4 ,civil & crim9al liability4 ,"p #b--,/&>ds = qualifi$ securities ,sec4 #cba4 ,qualifi$ securities4 ,sec4 #cbb4 ,/&>ds = qualifi$ securities4 ,sec4 #cbc4 ,liability = mislead+ /atem5ts4 ,sec4 #cbd4 ,unlawful repres5tations4 ,sec4 #cbe4 ,contr>y /ipulations void4 ,"p #c--,national ,mortgage ,data ,repository ,sec4 #cca4 ,organization & op]ation4 ,sec4 #ccb4 ,legal effect ( regi/ration ) ,repository4 ,sec4 #ccc4 ,grants to ,/ates2 repaym5t4 ,sec4 #ccd4 ,judicial review4 ,sec4 #cce4 ,transition provisions4 ,"p #d--;,con=m+ am5dm5ts ,sec4 #cda4 ,con=m+ am5dm5t to ,f$]al ,home ,loan ,bank ,act4 ,sec4 #cdb4 ,con=m+ am5dm5ts to ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act4 ,sec4 #cdc4 ,con=m+ am5dm5ts to ,securities ,act ( #aicc4 ,sec4 #cdd4 ,con=m+ am5dm5ts to title #ah1 ,unit$ ,/ates ,code4 ,subtitle ,b--,cov]$ ,bonds ,sec4 #cea4 ,%ort title4 ,sec4 #ceb4 ,def9itions4 ,sec4 #cec4 ,regulatory ov]sight ( cov]$ bond programs e/abli%$4 ,sec4 #ced4 ,resolution ^u default or insolv5cy4 ,sec4 #cee4 ,securities law provisions4 ,sec4 #cef4 ,miscellane\s provisions4 ,title ,,iv--,remov+ ,b>ri]s to ,new ,inve/m5t ,sec4 #dja4 ,basel ,,iii impact /udy4 ,sec4 #djb4 ,basel ,,iii ,liquidity ,cov]age ,ratio am5dm5ts4 ,sec4 #djc4 ,def9ition ( po9ts & fees4 ,sec4 #djd4 ,exclusion ( issu]s ( asset-back$ securities f cov]$ funds4 ,sec4 #dje4 ,susp5sion ( regulation ,,ab ,,ii rulemak+4 ,sec4 #djf4 ,effective date ( c]ta9 mortgage re=m regulations4 ,sec4 #djg4 ,repeal ( cr$it risk ret5tion regulations4 ,sec4 #djh4 ,mortgages 9 qualifi$ securities4 ,sec4 #dji4 ,mortgage loans held 9 portfolio4 ,sec4 #daj4 ,repeal ( c]ta9 mortgage-relat$ provisions4 ,sec4 #daa4 ,am5dm5ts to ! ,tru? 9 ,l5d+ ,act4 ,sec4 #dab4 ,f9ancial ,in/itutions ,exam9ation ,fairness & ,re=m4 ,sec4 #dac4 ,notice ( junior mortgage or li54 ,sec4 #dad4 ,limitation on mortgages held by loan s]vic]s4 ,title ,v--,miscellane\s ,provisions ,sec4 #eja4 ,pres]v+ access to manufactur$ h\s+4 ,sec4 #ejb4 ,common s5se economic recov]y4 ,sec4 #ejc4 ,te*nical ,am5dm5ts to ,f$]al ,home ,loan ,bank ,act4 ,sec4 #ejd4 ,pres]vation ( attorney-cli5t privilege = in=mation provid$ to ,,fhfa4 ,sec4 #eje4 ,,fhfa ,liaison ,memb]%ip 9 ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil4 ,sec4 #ejf4 ,recognition ( ,,fhfa en=cem5t au?ority ) reg>d to regulat$ entities4 ,sec4 #ejg4 ,exception f ,"r to ,f9ancial ,privacy ,act = ,,fhfa z cons]vator or receiv]4 ,sec4 #ejh4 ,te*nical am5dm5t to ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib4 ,sec4 #eji4 ,application ( presumption to ent]prise /reaml9$ ref9anc+s4 ,sec4 #eaj4 ,,fhfa au?ority to regulate & exam9e contractual c\nt]p>ties4 ,sec4 #eaa4 ,election ( directors ( a m]g$ ,f$]al ,home ,loan ,bank4 ,i ,w9d-d[n ( ,fannie ,mae & ,fr$die ,mac #aja4 ,%ort title ,?is title may be cit$ z ! ,,gse ,bail\t ,elim9ation & ,taxpay] ,protection ,act4 #ajb4 ,def9itions ,= purposes ( ?is title1 ! foll[+ def9itions %all apply3 7#a7 ,*>t] ,! t]m *>t] means-- 7,a7 ) respect to ! ,f$]al ,national ,mortgage ,association1 ! ,f$]al ,national ,mortgage ,association ,*>t] ,act 7#ab ,u4,s4,c4 #agaf et seq472 & 7,b7 ) respect to ! ,f$]al ,home ,loan ,mortgage ,corporation1 ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq474 7#b7 ,director ,! t]m ,director means ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy4 7#c7 ,ent]prise ,! t]m ent]prise means-- 7,a7 ! ,f$]al ,national ,mortgage ,association2 & 7,b7 ! ,f$]al ,home ,loan ,mortgage ,corporation4 #ajc4 ,t]m9ation ( curr5t cons]vator%ip2 m&atory receiv]%ip ,^u ! expiration ( ! #e-ye> p]iod beg9n+ ^u ! date ( ! enactm5t ( ?is ,act1 ! ,director %all1 ) respect to ea* ent]prise1 imm$iately appo9t ! ,f$]al ,h\s+ ,f9ance ,ag5cy z receiv] "u section #acfg ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib & c>ry out su* receiv]%ip "u ! au?ority ( su* section4 #ajd4 ,limitations on ent]prise au?ority 7a7 ,portfolio limitations ,subtitle ,b ( title ,,xiii ( ! ,h\s+ & ,community ,developm5t ,act ( #aiib 7#ab ,u4,s4,c4 #dfaa et seq47 is am5d$ by add+ at ! end ! foll[+ new section3 #acfi;,e4 ,re/riction on mortgage assets ( ent]prises 7a7 ,re/riction ,subject to subsection 7b71 no ent]prise %all own1 z ( any applicable date 9 ?is subsection or !reaft]1 mortgage assets 9 excess (-- 7#a7 z ( ,decemb] #ca1 #bjac1 #eej1jjj1jjj1jjj2 or 7#b7 z ( ,decemb] #ca ( ea* ye> !reaft]1 #he p]c5t ( ! aggregate am\nt ( mortgage assets t ! ent]prise 0 p]mitt$ to own pursuant to ?is section z ( ,decemb] #ca ( ! imm$iately prec$+ cal5d> ye>4 7b7 ,limitation ,9 no ev5t %all an ent]prise be requir$ "u ?is section to own less ?an #bej1jjj1jjj1jjj 9 mortgage assets4 7c7 ,def9ition ( mortgage assets ,= purposes ( ?is section1 ! t]m mortgage assets means1 ) respect to an ent]prise1 assets ( su* ent]prise consi/+ ( mortgages1 mortgage loans1 mortgage-relat$ securities1 p>ticipation c]tificates1 mortgage-back$ comm]cial pap]1 obligations ( real e/ate mortgage inve/m5t conduits & simil> assets1 9 ea* case to ! ext5t su* assets w\ld appe> on ! balance %eet ( su* ent]prise 9 accordance ) g5]ally accept$ acc\nt+ pr9ciples 9 effect 9 ! ,unit$ ,/ates z ( ,septemb] #g1 #bjjh 7z set =? 9 ! op9ions & pron\ncem5ts ( ! ,acc\nt+ ,pr9ciples ,bo>d & ! ,am]ican ,in/itute ( ,c]tifi$ ,public ,acc\ntants & /atem5ts & pron\ncem5ts ( ! ,f9ancial ,acc\nt+ ,/&>ds ,bo>d f "t to "t2 & )\t giv+ any effect to any *ange t may be made aft] ,septemb] #g1 #bjjh1 9 respect ( ,/atem5t ( ,f9ancial ,acc\nt+ ,/&>ds ,no4 #adj or any simil> acc\nt+ /&>d74 4 7b7 ,equitability 9 gu>antee fees ,section #acbg ( ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dedg7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,equitability 9 gu>antee fees 7#a7 ,requirem5t ,not)/&+ any o!r provision ( ?is section1 ! ,director %all ensure1 pursuant to ! annual review conduct$ "u p>agraph 7#b71 t ea* ent]prise *>ges a gu>antee fee1 9 connection ) any mortgage gu>ante$ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 9 an am\nt t ! ,director det]m9es is equival5t to ! am\nt t ! ent]prise w\ld *>ge if ! ent]prise 7 held to ! same capital /&>ds z private banks or f9ancial in/itutions4 7#b7 ,annual det]m9ation ,n less (t5 ?an annually1 ! ,director %all review ! gu>antee fees *>g$ by ea* ent]prise & det]m9e h[ su* fees comp>e to ! am\nt det]m9$ by ! ,director "u p>agraph 7#a74 ,if ! ,director det]m9es t su* fees *>g$ by an ent]prise are less ?an su* am\nt1 ! ,director %all1 by ord]1 require ! ent]prise to increase su* fees 9 su* am\nt z ! ,director det]m9es necess>y to comply ) p>agraph 7#a74 7#c7 ,flexibility 9 det]m9ation ( increase ,to det]m9e ! am\nt ( any increase "u ?is subsection1 ! ,director %all e/abli% a pric+ me*anism z ! ,director consid]s appropriate1 tak+ into consid]ation curr5t m>ket conditions1 includ+ ! curr5t m>ket %>e ( an ent]prise1 & any data collect$ pursuant to section #afja ( ! ,h\s+ & ,economic ,recov]y ,act ( #bjjh 7#ab ,u4,s4,c4 #dead;a74 4 7c7 ,repeal ( m&atory h\s+ activities 7#a7 ,repeal ( h\s+ goals ,! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib is am5d$ by /rik+ sections #acca ?r\gh #accf 7#ab ,u4,s4,c4 #defa-f74 7#b7 ,con=m+ am5dm5ts ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib is am5d$-- 7,a7 9 section #acjc7bh7 7#ab ,u4,s4,c4 #dejb7bh771 by /rik+ 1 &1 = ! purposes & all t foll[s ?r\gh designat$ disa/] areas2 7,b7 9 section #acbd7;b77#a77;,a7 7#ab ,u4,s4,c4 #dedd7;b77#a77;,a771 by /rik+ clauses 7i71 7ii71 & 7iv72 7,c7 9 section #acci7;h7 7#ab ,u4,s4,c4 #defi7;h771 by /rik+ p>agraph 7#g72 7,d7 9 section #acda 7#ab ,u4,s4,c4 #deha7-- 7i7 9 subsection 7a7-- 7,i7 9 p>agraph 7#a71 by ins]t+ or aft] ! semicolon at ! end2 7,,ii7 9 p>agraph 7#b71 by /rik+ ! semicolon at ! end & ins]t+ a p]iod2 & 7,,iii7 by /rik+ p>agraphs 7#c7 & 7#d72 & 7ii7 9 subsection 7b77#b7-- 7,i7 9 subp>agraph 7,a71 by ins]t+ or aft] ! semicolon at ! end2 7,,ii7 by /rik+ subp>agraphs 7,b7 & 7,c72 & 7,,iii7 by r$esignat+ subp>agraph 7,d7 z subp>agraph 7,b72 7,e7 9 section #acde7;a7 7#ab ,u4,s4,c4 #dehe7;a77-- 7i7 9 p>agraph 7#a71 by ins]t+ or aft] ! semicolon at ! end2 7ii7 9 p>agraph 7#b71 by /rik+ ! semicolon at ! end & ins]t+ a p]iod2 & 7iii7 by /rik+ p>agraphs 7#c7 & 7#d72 & 7,f7 9 section #acga7;a77#b7 7#ab ,u4,s4,c4 #dfca7;a77#b771 by /rik+ ) any h\s+ goal e/abli%$ "u subp>t ,b ( "p #b ( subtitle ,a ( ?is title1 ) section #accf or #accg ( ?is title14 7#c7 ,repeal ( ,h\s+ ,tru/ ,fund 7,a7 ,repeal ,! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib is am5d$ by /rik+ sections #accg & #acch 7#ab ,u4,s4,c4 #defg1 #defh74 7,b7 ,con=m+ am5dm5ts ,! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib is am5d$-- 7i7 9 section #acjc7bd77;,b7 7#ab ,u4,s4,c4 #dejb7bd77;,b771 by /rik+ #acch &2 7ii7 9 section #acbd7;b77#a77;,a7 7#ab ,u4,s4,c4 #dedd7;b77#a77;,a771 z am5d$ by ! prec$+ provisions ( ?is ,act-- 7,i7 by /rik+ clause 7iii72 7,,ii7 by /rik+ ! da% aft] :i* & ins]t+ ! text ( clause 7v7 & a p]iod2 & 7,,iii7 by /rik+ clause 7v72 7iii7 9 section #acci7;b7-- 7,i7 by /rik+ p>agraph 7#a72 7,,ii7 by /rik+ ! da% aft] consi/ ( & ins]t+ ! text ( p>agraph 7#b7 & a p]iod2 & 7,,iii7 by /rik+ p>agraph 7#b72 & 7iv7 9 section #acde 7#ab ,u4,s4,c4 #dehe71 by /rik+ subsection 7f74 #aje4 ,modifications to increases 9 con=m+ loan limits 7a7 ,fannie ,mae ,section #cjb7;b77#b7 ( ! ,f$]al ,national ,mortgage ,association ,*>t] ,act 7#ab ,u4,s4,c4 #agag7;b77#b77 is am5d$-- 7#a7 9 ! #h? s5t5ce-- 7,a7 9 ins]t+ or subtract+ f aft] add+ to2 & 7,b7 by ins]t+ or decrease1 respectively be=e ! fir/ comma2 7#b7 by /rik+ ! #i? & #aj? s5t5ces2 7#c7 by /rik+ ! la/ s5t5ce2 7#d7 by ins]t+ 7,a7 aft] ! p>agraph designation2 & 7#e7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,high-,co/ areas 7i7 ,maximum orig9al pr9cipal limitation ,subject to clause 7ii71 ! limitations e/abli%$ pursuant to subp>agraph 7,a7 %all also be increas$1 ) respect to prop]ties ( a p>ticul> size locat$ 9 any area = :i* #aae p]c5t ( ! m$ian h\se price = su* size resid5ce exce$s ! limitation "u subp>agraph 7,a7 = su* size resid5ce1 to ! less] (-- 7,i7 7aa7 = ! fir/ ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #bj1jjj 9 ! case ( a #a-;family resid5ce1 #be1fjd 9 ! case ( a #b-;family resid5ce1 #cj1iej 9 ! case ( a #c-;family resid5ce1 & #ch1dfc 9 ! case ( a #d-;family resid5ce2 7bb7 = ! second ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #dj1jjj 9 ! case ( a #a-;family resid5ce1 #ea1bjh 9 ! case ( a #b-;family resid5ce1 #fa1ijj 9 ! case ( a #c-;family resid5ce1 & #gf1ibf 9 ! case ( a #d-;family resid5ce2 7cc7 = ! ?ird ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #fj1jjj 9 ! case ( a #a-;family resid5ce1 #gf1hab 9 ! case ( a #b-;family resid5ce1 #ib1hej 9 ! case ( a #c-;family resid5ce1 & #ajc1chi 9 ! case ( a #d-;family resid5ce2 7dd7 = ! f\r? ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #hj1jjj 9 ! case ( a #a-;family resid5ce1 #ajb1daf 9 ! case ( a #b-;family resid5ce1 #abc1hjj 9 ! case ( a #c-;family resid5ce1 & #aec1heb 9 ! case ( a #d-;family resid5ce2 & 7ee7 = ! fif? ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #ajj1jjj 9 ! case ( a #a-;family resid5ce1 #abh1jbj 9 ! case ( a #b-;family resid5ce1 #aed1gej 9 ! case ( a #c-;family resid5ce1 & #aib1cae 9 ! case ( a #d-;family resid5ce2 7,,ii7 ! am\nt t is equal to #aae p]c5t ( ! m$ian h\se price 9 su* area = su* size resid5ce2 or 7,,iii7 ! limitation 9 effect = su* size resid5ce = su* area1 pursuant to ! la/ s5t5ce ( ?is p>agraph z 9 effect imm$iately be=e ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 z ( ! date ( su* enactm5t4 7ii7 ,prohibition on new high-co/ areas ,! limitations e/abli%$ pursuant to subp>agraph 7,a7 may n be increas$1 ) respect to prop]ties ( any size locat$ 9 a p>ticul> area unless1 z ( ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 su* =ego+ limitations 9 effect = su* area = any size resid5ce 7 det]m9$ "u ! au?ority provid$ 9 ! la/ s5t5ce ( ?is p>agraph1 z 9 effect imm$iately be=e su* enactm5t4 4 7b7 ,fr$die ,mac ,section #cje7;a77#b7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b77 is am5d$-- 7#a7 9 ! #g? s5t5ce-- 7,a7 9 ins]t+ or subtract+ f aft] add+ to2 & 7,b7 by ins]t+ or decrease1 respectively be=e ! fir/ comma2 & 7#b7 by /rik+ ! #h? & #i? s5t5ces2 7#c7 by /rik+ ! la/ s5t5ce2 7#d7 by ins]t+ 7,a7 aft] ! p>agraph designation2 & 7#e7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,high-,co/ areas 7i7 ,maximum orig9al pr9cipal limitation ,subject to clause 7ii71 ! limitations e/abli%$ pursuant to subp>agraph 7,a7 %all also be increas$1 ) respect to prop]ties ( a p>ticul> size locat$ 9 any area = :i* #aae p]c5t ( ! m$ian h\se price = su* size resid5ce exce$s ! limitation "u subp>agraph 7,a7 = su* size resid5ce1 to ! less] (-- 7,i7 7aa7 = ! fir/ ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #bj1jjj 9 ! case ( a #a-;family resid5ce1 #be1fjd 9 ! case ( a #b-;family resid5ce1 #cj1iej 9 ! case ( a #c-;family resid5ce1 & #ch1dfc 9 ! case ( a #d-;family resid5ce2 7bb7 = ! second ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #dj1jjj 9 ! case ( a #a-;family resid5ce1 #ea1bjh 9 ! case ( a #b-;family resid5ce1 #fa1ijj 9 ! case ( a #c-;family resid5ce1 & #gf1ibf 9 ! case ( a #d-;family resid5ce2 7cc7 = ! ?ird ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #fj1jjj 9 ! case ( a #a-;family resid5ce1 #gf1hab 9 ! case ( a #b-;family resid5ce1 #ib1hej 9 ! case ( a #c-;family resid5ce1 & #ajc1chi 9 ! case ( a #d-;family resid5ce2 7dd7 = ! f\r? ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #hj1jjj 9 ! case ( a #a-;family resid5ce1 #ajb1daf 9 ! case ( a #b-;family resid5ce1 #abc1hjj 9 ! case ( a #c-;family resid5ce1 & #aec1heb 9 ! case ( a #d-;family resid5ce2 & 7ee7 = ! fif? ye> beg9n+ aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! diff]5ce betwe5-- 7,,aa7 #aej p]c5t ( ! limitation "u subp>agraph 7,a7 = su* size resid5ce2 & 7,,bb7 #ajj1jjj 9 ! case ( a #a-;family resid5ce1 #abh1jbj 9 ! case ( a #b-;family resid5ce1 #aed1gej 9 ! case ( a #c-;family resid5ce1 & #aib1cae 9 ! case ( a #d-;family resid5ce2 7,,ii7 ! am\nt t is equal to #aae p]c5t ( ! m$ian h\se price 9 su* area = su* size resid5ce2 or 7,,iii7 ! limitation 9 effect = su* size resid5ce = su* area1 pursuant to ! la/ s5t5ce ( ?is p>agraph z 9 effect imm$iately be=e ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 z ( ! date ( su* enactm5t4 7ii7 ,prohibition on new high-co/ areas ,! limitations e/abli%$ pursuant to subp>agraph 7,a7 may n be increas$1 ) respect to prop]ties ( any size locat$ 9 a p>ticul> area unless1 z ( ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 su* =ego+ limitations 9 effect = su* area = any size resid5ce 7 det]m9$ "u ! au?ority provid$ 9 ! la/ s5t5ce ( ?is p>agraph1 z 9 effect imm$iately be=e su* enactm5t4 4 #ajf4 ,m&atory risk-%>+ ,subp>t ,a ( "p #b ( subtitle ,a ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib is am5d$ by add+ aft] section #acbg 7#ab ,u4,s4,c4 #dedg7 ! foll[+ new section3 #acbh4 ,m&atory risk-%>+ transactions 7a7 ,9 g5]al ,! ,director %all require ea* ent]prise to develop & und]take transactions involv+ ! gu>antee by ! ent]prises ( securities & obligations bas$ on or back$ by mortgages on resid5tial real prop]ties design$ pr9cipally = occupancy ( f #a to #d families t provide = private m>ket p>ticipants to %>e or assume cr$it risk associat$ ) su* mortgages1 z foll[s3 7#a7 ,requir$ p]c5tage ( bus9ess ,! ,director %all require t n less ?an #aj p]c5t ( ! annual bus9ess ( ea* ent]prise 7z measur$ 9 su* mann] z ! ,director %all det]m9e7 9 gu>antee+ su* securities & obligations involve su* transactions4 7#b7 ,multiple types ( transactions ,! ,director %all require t 9 comply+ ) p>agraph 7#a71 ea* ent]prise und]take multiple types ( ! v>i\s transactions & /ructures describ$ 9 subsection 7b74 7b7 ,types ( transactions ,! risk-%>+ transactions ref]r$ to 9 subsection 7a7 may include transactions involv+ increas$ mortgage insurance requirem5ts1 cr$it-l9k$ notes & securities1 s5ior & subord9at$ security /ructures1 & su* o!r /ructures & transactions z ! ,director consid]s appropriate to increase private m>ket assumption ( cr$it risk4 4 #ajg4 ,limitation ( ent]prise mortgage pur*ases to qualifi$ mortgages 7a7 ,fannie ,mae ,section #cjb7;b7 ( ! ,f$]al ,national ,mortgage ,association ,*>t] ,act 7#ab ,u4,s4,c4 #agag7;b77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,effective = mortgages ) application dates on or aft] ,janu>y #aj1 #bjad1 ! corporation may only pur*ase1 make commitm5ts to pur*ase1 s]vice1 sell1 l5d on ! security (1 or o!rwise deal 9 a mortgage t is a qualifi$ mortgage 7z su* t]m is def9$ 9 section #abi;,c7b7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afci;c7b72 z add$ by section #adab ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#abd ,/at4 #bade771 9 accordance ) ! regulations issu$ by ! ,bureau ( ,consum] ,f9ancial ,protection to c>ry out su* section4 4 7b7 ,fr$die ,mac ,section #cje7;a7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,effective = mortgages ) application dates on or aft] ,janu>y #aj1 #bjad1 ! ,corporation may only pur*ase1 make commitm5ts to pur*ase1 s]vice1 sell1 l5d on ! security (1 or o!rwise deal 9 a mortgage t is a qualifi$ mortgage 7z su* t]m is def9$ 9 section #abi;,c7b7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afci;c7b72 z add$ by section #adab ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#abd ,/at4 #bade771 9 accordance ) ! regulations issu$ by ! ,bureau ( ,consum] ,f9ancial ,protection to c>ry out su* section4 4 #ajh4 ,prohibition relat+ to use ( p[] ( em95t doma9 7a7 ,fannie ,mae ,subsection 7b7 ( section #cjb ( ! ,f$]al ,national ,mortgage ,association ,*>t] ,act 7#ab ,u4,s4,c4 #agag7;b77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 7,a7 ,not)/&+ any o!r provision ( law1 ! corporation may n pur*ase or gu>antee any mortgage t is secur$ by a /ructure or dwell+ unit t is locat$ )9 a c\nty t conta9s any /ructure or dwell+ unit t secures or secur$ a resid5tial mortgage loan :i* mortgage loan 0 obta9$ by ! ,/ate dur+ ! prec$+ #abj mon?s by ex]cise ( ! p[] ( em95t doma94 7,b7 ,= purposes ( ?is p>agraph1 ! foll[+ def9itions %all apply3 7i7 ,! t]m resid5tial mortgage loan means a mortgage loan t is evid5c$ by a promissory note & secur$ by a mortgage1 de$ ( tru/1 or o!r security in/rum5t on a resid5tial /ructure or a dwell+ unit 9 a resid5tial /ructure4 ,su* t]m includes a fir/ mortgage loan or any subord9ate mortgage loan4 7ii7 ,! t]m ,/ate includes ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 & any t]ritory or possession ( ! ,unit$ ,/ates1 & includes any ag5cy or political subdivision ( a ,/ate4 4 7b7 ,fr$die ,mac ,subsection 7a7 ( section #cje ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 7,a7 ,not)/&+ any o!r provision ( law1 ! ,corporation may n pur*ase or gu>antee any mortgage t is secur$ by a /ructure or dwell+ unit t is locat$ )9 a c\nty t conta9s any /ructure or dwell+ unit t secures or secur$ a resid5tial mortgage loan :i* mortgage loan 0 obta9$ by ! ,/ate dur+ ! prec$+ #abj mon?s by ex]cise ( ! p[] ( em95t doma94 7,b7 ,= purposes ( ?is p>agraph1 ! foll[+ def9itions %all apply3 7i7 ,! t]m resid5tial mortgage loan means a mortgage loan t is evid5c$ by a promissory note & secur$ by a mortgage1 de$ ( tru/1 or o!r security in/rum5t on a resid5tial /ructure or a dwell+ unit 9 a resid5tial /ructure4 ,su* t]m includes a fir/ mortgage or any subord9ate mortgage4 7ii7 ,! t]m ,/ate includes ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 & any t]ritory or possession ( ! ,unit$ ,/ates1 & includes any ag5cy or political subdivision ( a ,/ate4 4 #aji4 ,receiv]'s discretion>y au?ority to create receiv]%ip entity ,section #acfg ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dfag7 is am5d$ by /rik+ subsection 7i7 & ins]t+ ! foll[+3 7i7 ,receiv]%ip ,entity 7#a7 ,au?ority2 ,organization ,! ,ag5cy1 z receiv] appo9t$ pursuant to subsection 7a71 may e/abli% a receiv]%ip entity 9 su* =m or /ructure z ! ,ag5cy deems appropriate to meet ! purposes ( receiv]%ip & ?is section4 7#b7 ,p[]s ,^u creation ( su* receiv]%ip entity1 ! ,ag5cy may transf] to x any assets or liabilities ( ! regulat$ entity 9 default z ! ,ag5cy1 9 its discretion1 det]m9es to be appropriate1 & may au?orize ! receiv]%ip entity to p]=m any tempor>y function t ! ,ag5cy1 9 its discretion1 prescribes 9 accordance ) ?is section4 ,! transf] ( any assets or liabilities ( a regulat$ entity = :i* ! ,ag5cy has be5 appo9t$ receiv] %all be effective )\t any fur!r approval "u ,f$]al or ,/ate law1 assignm5t1 or cons5t ) respect !reto4 ,su* au?ority is 9 addition to any o!r p[] ! ,ag5cy may h z receiv] or may conf] on ! receiv]%ip entity4 7#c7 ,exemption f ,taxation ,not)/&+ any o!r provision ( ,f$]al or ,/ate law1 any receiv]%ip entity e/abli%$ by ! ,ag5cy pursuant to ?is section1 its fran*ise1 prop]ty & income1 %all be exempt f all taxation n[ or h]eaft] impos$ by ! ,unit$ ,/ates1 by any t]ritory1 dep5d5cy1 or possession !re(1 or by any ,/ate1 c\nty1 municipality1 or local tax+ au?ority4 7#d7 ,regulations ,! ,ag5cy may promulgate su* regulations z ! ,ag5cy det]m9es to be necess>y or appropriate to implem5t ?is subsection4 7#e7 ,no ,f$]al ,/atus ,a receiv]%ip entity e/abli%$ pursuant to ?is section %all n be an ag5cy1 e/abli%m5t1 or in/rum5tality ( ! ,unit$ ,/ates4 4 #aaj4 ,au?ority ( receiv] to repeal ent]prise *>t] ,section #acfg ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dfag7 is am5d$ by /rik+ subsection 7k7 & ins]t+ ! foll[+ new subsection3 7k7 ,repeal ( ent]prise *>t]s 7#a7 ,fannie ,mae ,effective five ye>s aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! *>t] ( ! ,f$]al ,national ,mortgage ,association is repeal$ & ! ,f$]al ,national ,mortgage ,association %all h no au?ority to conduct new bus9ess "u su* *>t]1 except t ! provisions ( su* *>t] 9 effect imm$iately be=e su* repeal %all cont9ue to apply ) respect to ! rights & obligations ( any hold]s (-- 7,a7 out/&+ debt obligations ( ! ,f$]al ,national ,mortgage ,association1 includ+ any-- 7i7 bonds1 deb5tures1 notes1 or o!r simil> in/rum5ts2 7ii7 capital lease obligations2 or 7iii7 obligations 9 respect ( lett]s ( cr$it1 bank]s' acceptances1 or o!r simil> in/rum5ts2 or 7,b7 mortgage-back$ securities gu>ante$ by ! ,f$]al ,national ,mortgage ,association4 7#b7 ,fr$die ,mac ,effective five ye>s aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac1 ! *>t] ( ! ,f$]al ,home ,loan ,mortgage ,corporation is repeal$ & ! ,f$]al ,home ,loan ,mortgage ,corporation %all h no au?ority to conduct new bus9ess "u su* *>t]1 except t ! provisions ( su* *>t] 9 effect imm$iately be=e su* repeal %all cont9ue to apply ) respect to ! rights & obligations ( any hold]s (-- 7,a7 out/&+ debt obligations ( ! ,f$]al ,home ,loan ,mortgage ,corporation1 includ+ any-- 7i7 bonds1 deb5tures1 notes1 or o!r simil> in/rum5ts2 7ii7 capital lease obligations2 or 7iii7 obligations 9 respect ( lett]s ( cr$it1 bank]s' acceptances1 or o!r simil> in/rum5ts2 or 7,b7 mortgage-back$ securities gu>ante$ by ! ,f$]al ,home ,loan ,mortgage ,corporation4 7#c7 ,exi/+ gu>antee obligations 7,a7 ,explicit gu>antee ,! full fai? & cr$it ( ! ,unit$ ,/ates is pl$g$ to ! paym5t ( all am\nts :i* may be requir$ to be paid "u any obligation describ$ 9 p>agraph 7#a7 or 7#b74 7,b7 ,cont9u$ divid5d paym5ts ,not)/&+ any o!r provision ( law1 provision #b7;a7 7relat+ to ,divid5d ,paym5t ,dates & ,divid5d ,p]iods7 & provision #b7;c7 7relat+ to ,divid5d ,rates & ,divid5d ,am\nt7 ( ! ,s5ior ,pref]r$ ,/ock ,pur*ase ,agreem5t1 or any provision ( any c]tificate 9 connection ) su* ,agreem5t creat+ or designat+ ! t]ms1 p[]s1 pref]5ces1 privileges1 limitations1 or any o!r conditions ( ! ,v>iable ,liquidation ,pref]5ce ,s5ior ,pref]r$ ,/ock ( an ent]prise issu$ pursuant to su* ,agreem5t-- 7i7 %all n be am5d$1 re/at$1 or o!rwise *ang$ to r$uce ! rate or am\nt ( divid5ds 9 effect pursuant to su* ,agreem5t z ( ! ,?ird ,am5dm5t to su* ,agreem5t dat$ ,augu/ #ag1 #bjab1 except t any am5dm5t to su* ,agreem5t to facilitate ! sale ( assets ( ! ent]prises %all be p]mitt$2 & 7ii7 %all rema9 9 effect until ! gu>antee obligations describ$ "u p>agraphs 7#a77;,b7 & 7#b77;,b7 ( ?is subsection are fully ext+ui%$4 7,c7 ,applicability ,all gu>antee fee am\nts d]iv$ f ! s+le-family mortgage gu>antee bus9ess ( ! ent]prises 9 exi/5ce z ( five ye>s aft] ! date ( ! enactm5t ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac %all be deposit$ into ! ,unit$ ,/ates ,treasury1 = purposes ( deficit r$uction4 7,d7 ,s5ior ,pref]r$ ,/ock ,pur*ase ,agreem5t def9$ ,= purposes ( ?is p>agraph1 ! t]m ,s5ior ,pref]r$ ,/ock ,pur*ase ,agreem5t means-- 7i7 ! ,am5d$ & ,re/at$ ,s5ior ,pref]r$ ,/ock ,pur*ase ,agreem5t1 dat$ ,septemb] #bf1 #bjjh1 z su* ,agreem5t has be5 am5d$ on ,may #f1 #bjji1 ,decemb] #bd1 #bjji1 & ,augu/ #ag1 #bjab1 respectively1 & z su* ,agreem5t may be fur!r am5d$ & re/at$1 ent]$ into betwe5 ! ,dep>tm5t ( ! ,treasury & ea* ent]prise1 z applicable2 & 7ii7 any provision ( any c]tificate 9 connection ) su* ,agreem5t creat+ or designat+ ! t]ms1 p[]s1 pref]5ces1 privileges1 limitations1 or any o!r conditions ( ! ,v>iable ,liquidation ,pref]5ce ,s5ior ,pref]r$ ,/ock ( an ent]prise issu$ or sold pursuant to su* ,agreem5t4 4 ,,ii ,,fha ,re=m #bja4 ,%ort title ,?is title may be cit$ z ! ,,fha ,re=m & ,mod]nization ,act ( #bjac4 #bjb4 ,def9itions ,= purposes ( ?is title1 ! foll[+ def9itions %all apply3 7#a7 ,bo>d ,! t]m ,bo>d means ! ,bo>d ( ,directors ( ! ,,fha e/abli%$ "u section #bad4 7#b7 ,director ,! t]m ,director means ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy4 7#c7 ,,fha ,! t]m ,,fha means ! ,f$]al ,h\s+ ,adm9i/ration e/abli%$ "u ?is title4 7#d7 ,fir/-"t homebuy] ,! t]m fir/-"t homebuy] means an individual :o meets any ( ! foll[+ crit]ia3 7,a7 ,an individual1 & 8 or h] sp\se1 :o has nev] _h own]%ip 9 a pr9cipal resid5ce4 7,b7 ,a s+le p>5t 7z su* t]m is def9$ 9 section #ief ( ! ,cran/on-,gonzalez ,national ,af=dable ,h\s+ ,act 7#db ,u4,s4,c4 #abgac77 :o has only own$ a pr9cipal resid5ce ) a =m] sp\se :ile m>ri$4 7,c7 ,an individual :o is a displac$ homemak] 7z su* t]m is def9$ 9 su* section #ief ( ! ,cran/on-,gonzalez ,national ,af=dable ,h\s+ ,act7 & has only own$ a pr9cipal resid5ce ) a sp\se4 7,d7 ,an individual :o has only own$ a pr9cipal resid5ce n p]man5tly affix$ to a p]man5t f\ndation 9 accordance ) applicable regulations4 7,e7 ,an individual :o has only own$ a prop]ty t 0 n 9 compliance ) /ate1 local or model build+ codes & :i* _c be br\ght into compliance = less ?an ! co/ ( con/ruct+ a p]man5t /ructure4 7#e7 ,native am]ican gov]nm5t ,! t]m ,native ,am]ican gov]nm5t means ! gov]nm5t ( any ,indian or ,alaska native tribe1 b&1 nation1 pueblo1 village or community t ! ,secret>y ( ! ,int]ior ackn[l$ges to exi/ z an ,indian ,tribe1 pursuant to ! ,f$]ally ,recogniz$ ,indian ,tribe ,li/ ,act ( #aiid4 7#f7 ,resid5tial heal? c>e facility ,! t]m resid5tial heal? c>e facility includes a nurs+ home1 a facility = long-t]m c>e1 an int]m$iate c>e facility1 a bo>d & c>e home1 an assi/$ liv+ facility1 a public heal? c5t]1 an outpati5t facility1 & a rehabilitation facility4 7#g7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,h\s+ & ,urban ,developm5t4 7#h7 ,unit$ ,/ates ,! t]m ,unit$ ,/ates includes ! ,/ates1 ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1 ,guam1 ! ,virg9 ,isl&s1 ,am]ican ,samoa1 & ,native ,am]ican gov]nm5ts4 ,a ,organization #baa4 ,e/abli%m5t 7a7 ,9 ,g5]al ,!re is h]eby e/abli%$ ! ,f$]al ,h\s+ ,adm9i/ration1 :i* %all be a body corporate )\t capital /ock & %all h succession until dissolv$ by ,act ( ,congress4 7b7 ,gov]nm5t ,corporation ,! ,,fha %all be e/abli%$ z a :olly own$ ,gov]nm5t corporation subject to *apt] #ia ( title #ca1 ,unit$ ,/ates ,code 7commonly ref]r$ to z ! ,gov]nm5t ,corporation ,control ,act71 except z o!rwise provid$ 9 ?is subtitle4 7c7 ,f$]al ,ag5cy 7#a7 ,9 g5]al ,! ,,fha %all be an ag5cy ( ! ,unit$ ,/ates1 except t ! ,,fha %all n be consid]$ an ag5cy = purposes ( hold+1 manag+1 & dispos+ ( assets acquir$ by ! ,,fha "u ! provisions ( ?is title or ! ,national ,h\s+ ,act4 7#b7 ,hold+1 managem5t1 & disposal au?ority ,= purposes ( ?is subsection1 ! t]m hold+1 manag+1 & dispos+ ( assets includes ! p[]s to-- 7,a7 deal )1 complete1 recon/ruct1 r5t1 r5ovate1 mod]nize1 insure1 make contracts = ! managem5t (1 e/abli% suitable ag5cies = ! managem5t (1 or ex]cise discretion to sell = ca% or cr$it or lease1 any acquir$ prop]ty2 7,b7 pursue collection by way ( compromise or o!rwise all assign$ & transf]r$ claims2 & 7,c7 at any "t1 ^u default1 =eclose on any prop]ty secur$ by any assign$ or transf]r$ mortgage4 7d7 ,self-,suffici5t ,entity ,! ,,fha %all op]ate & conduct its bus9ess z a self-suffici5t entity 9 accordance ) section #bce7;c74 7e7 ,corporate ,(fices & ,resid5cy ,! ,,fha %all ma9ta9 its pr9cipal (fice 9 ! ,di/rict ( ,columbia & %all be deem$1 = purposes ( v5ue 9 civil actions1 to be a resid5t ( ! ,di/rict ( ,columbia4 ,! ,,fha may e/abli% o!r (fices 9 su* o!r places z ! ,,fha consid]s appropriate 9 ! conduct ( its bus9ess4 7f7 ,tax ,/atus ,! ,,fha1 includ+ its fran*ise1 activities1 income1 & assets1 %all be exempt f all taxation n[ or h]eaft] impos$ by any tax+ au?ority 9 ! ,unit$ ,/ates1 except t any real prop]ty ( ! ,,fha 7o!r ?an real prop]ty t ! ,,fha uses z an (fice7 %all be subject to taxation to ! same ext5t accord+ to its value z any tax+ au?ority taxes o!r real prop]ty4 7g7 ,protection ( ,"n 7#a7 ,prohibition ,no p]son %all1 except ! body corporate e/abli%$ "u ?is section1 aft] ! date ( ! enactm5t ( ?is ,act1 use ! words ,f$]al ,h\s+ ,adm9i/ration or ! initials ,,fha z ! "n or "p !re( "u :i* su* p]son %all d bus9ess4 7#b7 ,en=cem5t ,violations ( p>agraph 7#a7 may be enjo9$ by any c\rt ( g5]al jurisdiction at ! suit ( ! ,,fha4 ,9 any su* suit1 ! ,,fha may recov] any actual damages result+ f su* violation1 &1 9 addition1 %all be entitl$ to punitive damages 7reg>dless ( ! exi/5ce or nonexi/5ce ( actual damages7 ( n m ?an #ajj = ea* day dur+ :i* su* violation is committ$ or repeat$4 #bab4 ,purposes ,! ,,fha is e/abli%$ = ! foll[+ purposes3 7#a7 ,to provide mortgage insurance & o!r cr$it enhancem5t & relat$ activities1 =-- 7,a7 s+le family home[n]%ip to fir/-"t homebuy]s1 l[- & mod]ate-income homebuy]s1 homebuy]s 9 areas subject to c\nt]-cyclical m>kets or ,presid5tially decl>$ disa/]s2 7,b7 ! provision ( af=dable r5tal h\s+2 & 7,c7 ! provision ( resid5tial heal? c>e facilities4 7#b7 ,to supplem5t private sector activity by s]v+ h>d-to-s]ve m>kets1 develop+ new mortgage products1 & fill+ gaps 9 ! provision & deliv]y ( mortgage cr$it4 7#c7 ,to deliv] h\s+ mortgage insurance & cr$it enhancem5t & provide o!r s]vices 9 a non-discrim9atory mann]4 7#d7 ,to promote liquidity & provide /ability to ! s+le family & multifamily h\s+ f9ance m>ket1 by cont9u+ to provide mortgage insurance & cr$it enhancem5t on a s\nd basis dur+ times ( regional & national economic d[nturn4 7#e7 ,to engage 9 rese>*1 developm5t1 & te/+ ( new products design$ to make s+le family & multifamily h\s+ & resid5tial heal? c>e facility cr$it available to h>d-to-s]ve m>kets4 7#f7 ,to e/abli% uni=mity 9 op]ations & risk managem5t & loss mitigation 9 h\s+ mortgage insurance & rural h\s+ loan programs4 #bac4 ,g5]al p[]s ,to fur!r ! purposes ( ?is subtitle1 9 accordance ) *apt] #ia ( title #ca ( ! ,unit$ ,/ates ,code 7relat+ to gov]nm5t corporations71 ! ,,fha-- 7#a7 may adopt1 am5d1 & repeal by-laws1 & o!r writt5 adm9i/rative guidance2 7#b7 may adopt1 alt]1 & use a corporate seal1 :i* %all be judicially not$2 7#c7 may insure1 & make commitm5ts to insure mortgages1 to ! ext5t au?oriz$ "u ?is title1 & enhance & make commitm5ts to o!rwise enhance cr$it1 & 9 provid+ su* insurance may re9sure1 advance1 incur liabilities1 pool loans1 & risk %>e2 7#d7 may acquire1 hold1 use1 improve1 deal 91 or dispose (1 by any means1 any int]e/s 9 any real prop]ty or any p]sonal prop]ty2 7#e7 may execute contracts1 & make o!r agreem5ts 9 its own "n1 ) any ag5cy1 public or private entity1 or o!r p]son1 & c>ry out any lawful requirem5t ( su* contracts1 grants1 or o!r agreem5ts2 7#f7 may take any actions1 includ+ ! re/ructur+ ( debt1 t ! ,,fha det]m9es are necess>y to manage any portfolio 7includ+ ! portfolio ( ! ,,fha7 ( prop]ty1 assets1 & obligations2 7#g7 may-- 7,a7 create & supply1 alone or 9 coop]ation ) public or private entities or p]sons1 any product or s]vice consi/5t ) its corporate purposes2 & 7,b7 assess fees & *>ges = su* products1 in=mation1 & s]vices 9 am\nts1 z det]m9$ by ! ,,fha1 t-- 7i7 d n exce$ _! value 9 ! m>ket2 7ii7 p]mit ! ,,fha to recov] its fully allocat$ long-t]m co/s2 & 7iii7 p]mit ! ,,fha to ma9ta9 ! level ( capital det]m9$ by ! ,,fha to be necess>y & suffici5t to c>ry out ! public purposes ( ! ,,fha & z requir$ "u subtitle ,c2 7#h7 may create di/9ct insurance funds or o!r devices to segregate or p]mit limitations on liability = bus9ess activities or acc\nts2 7#i7 may qualify any p]son or entity to engage 9 bus9ess ) ! ,,fha & may en=ce & impose p5alties = ! brea* ( any duties1 obligations1 & o!r commitm5ts made by su* p]sons or entities2 7#aj7 %all take actions necess>y to adm9i/] its bus9ess 9 a nondiscrim9atory mann]2 7#aa7 may use ! s]vices or obta9 ! goods ( any ,f$]al ag5cy1 includ+ ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t1 "u work+ or coop]ation agreem5ts or contracts ) su* ag5cies & make or receive paym5t = ! co/ ( su* activities2 7#ab7 %all h ! p[]1 9 its corporate "n1 to sue & be su$1 & to compla9 & def5d1 9 any c\rt ( compet5t jurisdiction1 ,/ate or ,f$]al1 b no atta*m5t1 g>ni%m5t1 injunction1 or o!r simil> process1 mesne or f9al1 %all be issu$ aga9/ ! prop]ty ( ! ,,fha or aga9/ ! ,,fha ) respect to its prop]ty1 & ! ,,fha %all n be liable = int]e/ prior to judgm5t1 = punitive or exempl>y damages1 = p5alties1 or = claims bas$ ^u unju/ enri*m5t1 quasi-contract1 or contracts impli$-9-law1 nor %all ! ,,fha be subject to trial by jury2 7#ac7 not)/&+ any o!r provision ( law-- 7,a7 %all be an ag5cy ( ! ,unit$ ,/ates ,gov]nm5t & ! (fic]s & employees ( ! ,,fha %all be (fic]s & employees ( ! ,unit$ ,/ates ,gov]nm5t = purposes ( "p ,,iv ( title #bh1 ,unit$ ,/ates ,code2 7,b7 %all h all civil actions to :i* ! ,,fha is a p>ty deem$ to arise "u ! laws ( ! ,unit$ ,/ates2 & 7,c7 may1 at any "t be=e trial & )\t bond or security1 remove any civil or crim9al action or proce$+ 9 a ,/ate c\rt to :i* ! ,,fha is a p>ty to ! ,unit$ ,/ates di/rict c\rt = ! ,di/rict ( ,columbia or to ! ,unit$ ,/ates di/rict c\rt ) jurisdiction ov] ! place :]e ! civil action or proce$+ is p5d+1 by foll[+ any proc$ure = removal ( actions 9 effect at ! "t ( su* removal2 7#ad7 may-- 7,a7 accept & use volunt>y & uncomp5sat$ s]vices & accept1 hold1 adm9i/]1 & use gifts & beque/s ( prop]ty1 bo? real & p]sonal1 = ! purpose ( aid+ or facilitat+ ! "w ( ! ,,fha1 & 7,b7 hold gifts & beque/s ( money & ! proce$s f sales ( o!r prop]ty receiv$ z gifts or beque/s 9 a sep>ate acc\nt1 & su* am\nts %all be disburs$ z provid$ by ! ,,fha2 except t prop]ty accept$ pursuant to ?is p>agraph1 & ! proce$s !re(1 %all be us$ z ne>ly z possible 9 accordance ) ! t]ms ( ! gift or beque/ &1 = ! purpose ( ,f$]al income1 e/ate1 & gift taxes1 prop]ty accept$ "u ?is p>agraph %all be consid]$ z a gift or beque/ to or = ! use ( ! ,unit$ ,/ates2 7#ae7 %all h any transaction 9 :i* x p>ticipates be exempt f ! t]ms ( any ,/ate or o!r law or prohibition aga9/ paym5t ( usuri\s int]e/2 7#af7 may act z a fiduci>y 9 connection ) any ( its und]tak+s2 7#ag7 may =eclose any s+le family mortgages held by ! ,,fha pursuant to ! same proc$ures & au?ority applicable to ! ,secret>y "u ! ,s+le ,family ,mortgage ,=eclosure ,act ( #aiid2 7#ah7 may =eclose any multifamily h\s+ mortgages held by ! ,,fha pursuant to ! same proc$ures & au?ority applicable to ! ,secret>y "u ! ,multifamily ,mortgage ,=eclosure ,act ( #aiha2 7#ai7 %all h ! priority ( ! ,unit$ ,/ates ) respect to ! paym5t ( debts out ( bankrupt1 insolv5t1 & dec$5ts' e/ates2 7#bj7 may inve/ 9 sy/ems1 te*nology1 or o!r capital res\rces1 to enhance its ability to c>ry out ! purposes ( ?is title2 & 7#ba7 %all h & ex]cise all p[]s necess>y or appropriate to effect any ( ! purposes ( ?is title1 includ+ ! p[] to c>ry out any au?ority delegat$ to ! ,,fha by ! ,secret>y4 #bad4 ,bo>d ( ,directors 7a7 ,9 ,g5]al ,! p[]s ( ! ,,fha %all be ve/$ 9 ! ,bo>d ( ,directors ( ! ,,fha4 7b7 ,memb]s & ,appo9tm5t ,! ,bo>d ( ,directors %all consi/ ( #i individuals appo9t$ by ! ,presid5t1 :o %all include ! foll[+ individuals3 7#a7 ,! ,secret>y ( ,h\s+ & ,urban ,developm5t4 7#b7 ,! ,secret>y ( ,agriculture4 7#c7 ,n less ?an #e individuals :o h exp]tise 9 mortgage f9ance4 7#d7 ,n less ?an #b individuals :o h exp]tise 9 af=dable h\s+ s]v+ l[- & mod]ate-income populations4 7c7 ,*airp]son ,! ,secret>y ( ,h\s+ & ,urban ,developm5t %all s]ve z ! *airp]son ( ! ,bo>d4 7d7 ,t]ms 7#a7 ,9 g5]al ,ea* memb] ( ! ,bo>d appo9t$ "u p>agraph 7#c7 or 7#d7 ( subsection 7b7 %all be appo9t$ = a t]m ( #c ye>s1 except z provid$ 9 p>agraphs 7#b7 & 7#c74 7#b7 ,t]ms ( initial appo9tees ,z designat$ by ! ,presid5t at ! "t ( appo9tm5t1 ( ! memb]s fir/ appo9t$ to ! ,bo>d pursuant to p>agraphs 7#c7 & 7#d7 ( subsection 7b7-- 7,a7 #c %all be appo9t$ = t]ms ( #a ye>2 & 7,b7 #d %all be appo9t$ = t]ms ( #b ye>s4 7#c7 ,vacancies ,any memb] appo9t$ to fill a vacancy on ! ,bo>d occurr+ be=e ! expiration ( ! t]m = :i* ! memb]'s pr$ecessor 0 appo9t$ %all be appo9t$ only = ! rema9d] ( t t]m4 ,a memb] may s]ve aft] ! expiration ( t memb]'s t]m until a successor has tak5 (fice4 ,a vacancy on ! ,bo>d %all be fill$ 9 ! mann] 9 :i* ! orig9al appo9tm5t 0 made4 7e7 ,meet+s & ,quorum ,! ,bo>d %all meet at any "t pursuant to ! call ( ! ,*airp]son or a majority ( its memb]s & z provid$ by ! bylaws ( ! ,,fha1 b n less ?an qu>t]ly4 ,a majority ( ! memb]s ( ! ,bo>d %all con/itute a quorum4 7f7 ,p[]s ,! ,bo>d %all be responsible = ! g5]al managem5t ( ! ,,fha & %all h ! same au?ority1 privileges1 & responsibilities z ! bo>d ( directors ( a private corporation incorporat$ "u ! ,di/rict ( ,columbia ,bus9ess ,corporation ,act4 7g7 ,duties ,9 p]=m+ its duties1 ! ,bo>d %all-- 7#a7 obta9 guidance f p>ticipants 9 ! mortgage m>kets s]v$ by ! ,,fha2 7#b7 assess ! h\s+ & mortgage insurance ne$s ( consum]s & provid]s ( s+le family & multifamily h\s+ & communities1 & ! mortgage insurance ne$s ( provid]s ( resid5tial heal? c>e facilities2 7#c7 obta9 in=mation conc]n+ h\s+ f9ance m>kets 9 ord] to bett] assess h[ ! ,,fha c complem5t ! roles ( public & private p>ticipants 9 su* m>kets2 & 7#d7 assi/ ! ,secret>y ( ,h\s+ & ,urban ,developm5t & ! ,secret>y ( ,agriculture 9 coord9at+ ! roles ( ,f$]al h\s+1 bank+1 & cr$it ag5cies g5]ally1 & p>ticul>ly 9 ! deliv]y ( h\s+ cr$it enhancem5t to families1 communities1 & h>d-to-s]ve m>kets4 7h7 ,comp5sation ,memb]s ( ! ,bo>d %all s]ve on a "p-"t basis & %all s]ve )\t pay4 7i7 ,travel ,exp5ses ,ea* memb] %all receive travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 accordance ) sections #egjb & #egjc ( title #e1 ,unit$ ,/ates ,code4 #bae4 ,(fic]s & p]sonnel 7a7 ,appo9tm5t ( ,(fic]s ,! ,bo>d %all appo9t a presid5t & vice presid5t ( ! ,,fha1 &1 except z provid$ 9 subsections 7b7 & 7c71 su* o!r (fic]s z are provid$ = 9 ! bylaws ( ! ,,fha4 7b7 ,*ief ,risk ,(fic] ,!re %all be 9 ! ,,fha a ,*ief ,risk ,(fic]1 :o-- 7#a7 %all be appo9t$ by ! ,bo>d ( ,directors ( ! ,,fha2 7#b7 %all be select$ f among individuals :o possess demon/rat$ ability 9 ! g5]al managem5t (1 & k ( & ext5sive practical exp]i5ce 91 risk evaluation practices 9 l>ge gov]nm5tal or bus9ess entities2 7#c7 %all be-- 7,a7 responsible = all matt]s relat+ to manag+ & mitigat+ risk to ! mortgage insurance programs ( ! ,,fha & ensur+ ! p]=mance ( mortgages insur$ by ! ,,fha2 & 7,b7 responsible = all matt]s relat+ to manag+ & mitigat+ risk to ! h\s+ loans made1 insur$1 or gu>ante$ "u title ,v ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga et seq47 & ensur+ ! p]=mance ( su* h\s+ loans2 7#d7 %all n be subject to ! review or approval ( ! ,bo>d ( ,directors ( ! ,,fha or ! ,secret>y ( ,agriculture ) respect to ! ex]cise ( ! responsibilities "u subp>agraph 7,a7 or 7,b71 respectively1 ( p>agraph 7#c72 & 7#e7 %all n be requir$ to obta9 ! prior approval1 comm5t1 or review ( any (fic] or ag5cy ( ! ,unit$ ,/ates be=e submitt+ to ! ,congress1 or any committee or subcommittee !re(1 any reports1 recomm5dations1 te/imony1 or comm5ts if su* submissions include a /atem5t indicat+ t ! views express$ !re9 are ^? ( ! ,*ief ,risk ,(fic] ( ! ,,fha & d n necess>ily repres5t ! views ( ! ,bo>d ( ,directors ( ! ,,fha or ! ,secret>y ( ,agriculture4 7c7 ,*ief ,te*nology ,(fic] ,!re %all be 9 ! ,,fha a ,*ief ,te*nology ,(fic]1 :o-- 7#a7 %all be appo9t$ by ! ,bo>d ( ,directors ( ! ,,fha2 7#b7 %all be select$ f among individuals :o possess demon/rat$ ability 9 ! g5]al managem5t (1 & k ( & ext5sive practical exp]i5ce 91 in=mation te*nology managem5t practices 91 l>ge gov]nm5tal or bus9ess entities2 7#c7 %all be-- 7,a7 responsible = all matt]s relat+ to in=mation te*nology managem5t relat+ to ! mortgage insurance programs ( ! ,,fha2 & 7,b7 responsible = all matt]s relat+ to in=mation te*nology managem5t relat+ to ! programs = mak+1 insur+1 & gu>antee+ h\s+ loans "u title ,v ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga et seq472 includ+ analysis & assessm5t ( ! in=mation te*nology infra/ructures1 in=mation te*nology /rategy1 & use ( in=mation te*nology1 ensur+ ! security & privacy ( in=mation te*nology infra/ructure & networks1 & promot+ te*nological innovation2 7#d7 %all n be subject to ! review or approval ( ! ,bo>d ( ,directors ( ! ,,fha or ! ,secret>y ( ,agriculture ) respect to ! ex]cise ( ! responsibilities "u subp>agraph 7,a7 or 7,b71 respectively ( p>agraph 7#c72 & 7#e7 %all n be requir$ to obta9 ! prior approval1 comm5t1 or review ( any (fic] or ag5cy ( ! ,unit$ ,/ates be=e submitt+ to ! ,congress1 or any committee or subcommittee !re(1 any reports1 recomm5dations1 te/imony1 or comm5ts if su* submissions include a /atem5t indicat+ t ! views express$ !re9 are ^? ( ! ,*ief ,te*nology ,(fic] ( ! ,,fha & d n necess>ily repres5t ! views ( ! ,bo>d ( ,directors ( ! ,,fha or ! ,secret>y ( ,agriculture4 7d7 ,appo9tm5t ( ,employees ,subject to subtitle ,d1 ! ,bo>d %all appo9t su* o!r employees ( ! ,,fha z ! ,bo>d consid]s necess>y = ! transaction ( ! ,,fha's bus9ess4 7e7 ,comp5sation1 ,duties1 & ,removal 7#a7 ,9 g5]al ,! ,bo>d %all fix ! comp5sation ( all (fic]s & employees ( ! ,,fha & def9e _! duties4 ,(fic]s & employees %all be appo9t$1 promot$1 assign$1 & remov$ on ! basis ( qualifications1 & any su* actions tak5 %all be consi/5t ) ! pr9ciples ( fairness1 nondiscrim9ation1 & due process4 7#b7 ,consid]ations 9 fix+ comp5sation ,9 fix+ & direct+ comp5sation = (fic]s & employees ( ! ,,fha1 ! ,bo>d %all consult & ma9ta9 comp>ability ) ! comp5sation provid$ by ! ,gov]nm5t ,national ,mortgage ,association1 ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ! ,comptroll] ( ,curr5cy1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 & ! ,f$]al ,deposit ,insurance ,corporation to (fic]s & employees ( su* entities4 7f7 ,applicability ( ,c]ta9 ,civil ,s]vice ,laws ,! (fic]s & employees ( ! ,,fha %all be appo9t$ )\t reg>d to ! provisions ( title #e1 ,unit$ ,/ates ,code1 gov]n+ appo9tm5ts 9 ! competitive s]vice1 & may be paid )\t reg>d to ! provisions ( *apt] #ea & sub*apt] ,,iii ( *apt] #ec ( t title relat+ to classification & ,g5]al ,s*$ule pay rates4 7g7 ,use ( ,f$]al ,ag5cies ,9 c>ry+ out its purposes1 ! ,,fha may use in=mation1 s]vices1 /aff1 & facilities ( any executive ag5cy1 indep5d5t ag5cy1 or dep>tm5t 7includ+ ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t71 ) ! cons5t ( ! ag5cy or dep>tm5t1 & %all reimburse ! ag5cy or dep>tm5t = ! co/ ( su* in=mation1 s]vices1 /aff1 & facilities4 7h7 ,indemnification ,! ,,fha may provide = ! indemnification ( any (fic]1 employee1 contractor1 or ag5t ( ! ,,fha on su* t]ms z ! ,,fha det]m9es prop]1 except t1 to ! ext5t t ! ,,fha self-insures = any indemnification-- 7#a7 ! aggregate maximum am\nt ( indemnification out/&+ at any "t %all n exce$ #e p]c5t ( ! am\nt ( capital requir$ "u section #bef to be ma9ta9$ by ! ,mutual ,mortgage ,insurance ,fund2 & 7#b7 n m ?an #a1jjj1jjj may be paid z an indemnity = any s+le ev5t4 7i7 ,am5dm5ts to ,h\s+ ,act ( #aidi ,section #eja ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga7 is am5d$ by add+ at ! end ! foll[+ new subsections3 7k7 ,au?ority ( ,*ief ,risk ,(fic] ( ,,fha ,! ,*ief ,risk ,(fic] ( ! ,,fha appo9t$ pursuant to section #bae7;b7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac %all be solely responsible = all matt]s relat+ to evaluat+1 manag+1 & mitigat+ risk to ! programs "u ?is title = mak+1 insur+1 & gu>antee+ h\s+ loans & ensur+ ! p]=mance ( su* h\s+ loans1 & su* au?ority %all n be subject to ! review or approval ( ! ,secret>y4 7l7 ,au?ority ( ,*ief ,te*nology ,(fic] ( ,,fha ,! ,*ief ,te*nology ,(fic] ( ! ,,fha appo9t$ pursuant to section #bae7;c7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac %all be solely responsible = all matt]s relat+ to in=mation te*nology managem5t relat+ to ! programs "u ?is title = mak+1 insur+1 & gu>antee+ h\s+ loans1 & su* au?ority %all n be subject to ! review or approval ( ! ,secret>y4 4 #baf4 ,f9ancial1 und]writ+1 & op]ations sy/ems 7a7 ,9 g5]al ,! ,,fha %all develop & ma9ta9 su* f9ancial1 und]writ+1 & op]ations sy/ems z may be necess>y to c>ry out ! responsibilities ( ! ,,fha4 ,su* sy/ems %all be design$ & develop$ 9 a mann] s t su* sy/ems %all also be us$ = ! f9ancial1 und]writ+1 & op]ations sy/ems1 respectively1 ( ! programs "u title ,v ( ! ,h\s+ ,act ( #aidi = mak+1 gu>antee+1 & insur+ rural h\s+ loan programs4 7b7 ,use by ,rural ,h\s+ ,s]vice programs 7#a7 ,availability ,all f9ancial1 und]writ+1 & op]ations sy/ems ( ! ,,fha %all be available to ! ,secret>y ( ,agriculture to ! ext5t necess>y to ensure compliance ) section #eja7m7 ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga7l774 7#b7 ,use ,section #eja ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga71 z am5d$ by ! prec$+ provisions ( ?is title1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7m7 ,use ( ,,fha sy/ems ,! ,secret>y1 ! ,*ief ,risk ,(fic] ( ! ,,fha1 & ! ,*ief ,te*nology ,(fic] ( ! ,,fha %all utilize ! f9ancial1 und]writ+1 & op]ations sy/ems ( ! ,,fha 9 c>ry+ out all f9ancial1 und]writ+1 & op]ations functions ) respect to ! programs "u ?is title = mak+1 insur+1 or gu>antee+ h\s+ loans4 4 #bag4 ,procurem5t 7a7 ,9 ,g5]al ,! ,,fha %all e/abli% an economical & results-ori5t$ sy/em = ! procurem5t1 supply1 & disposition by ! ,,fha ( p]sonal prop]ty & s]vices1 :i* %all include p]=mance measures & /&>ds = det]m9+ ! ext5t to :i* ! ,,fha's procurem5t ( prop]ty & s]vices satisfies ! objective = :i* ! procurem5t 0 und]tak54 ,! sy/em %all be consi/5t ) ! pr9ciples ( imp>tiality & competitiv5ess4 7b7 ,exemption f ,f$]al ,prop]ty & ,adm9i/rative ,s]vice ,act ,requirem5ts ,section #aac7;e7 ( title #dj1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#ai71 by /rik+ or at ! end2 7#b7 9 p>agraph 7#bj71 by /rik+ ! p]iod at ! end & ins]t+ 2 or 2 & 7#c7 by add+ at ! end ! foll[+ new p>agraph3 7#ba7 ,! ,f$]al ,h\s+ ,adm9i/ration2 & 4 7c7 ,exemption f ,procurem5t ,prote/ ,sy/em ,sub*apt] ,v ( *apt] #ce ( title #ca1 ,unit$ ,/ates ,code1 relat+ to ! procurem5t prote/ sy/em1 %all n apply to ! ,,fha4 #bah4 ,applicability ( laws 7a7 ,exemption f notice & comm5t rulemak+ ,any matt] relat+ to cr$it enhancem5t or o!r bus9ess activities ( ! ,,fha au?oriz$ "u ?is title %all be consid]$ a matt] relat+ to ag5cy managem5t or p]sonnel or to public prop]ty1 loans1 grants1 b5efits1 or contracts1 = purposes ( section #eec7;a7 ( title #e1 ,unit$ ,/ates ,code4 7b7 ,subsidy lay]+ ,= purposes ( section #ajb7;d7 ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t ,re=m ,act ( #aihi1 mortgage insurance & o!r cr$it enhancem5t provid$ "u ?is title %all n be consid]$ assi/ance )9 ! jurisdiction ( ! ,dep>tm5t4 7c7 ,gov]nm5t ,corporation ,control ,act ,section #iaja7c7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,s7 ! ,f$]al ,h\s+ ,adm9i/ration4 4 7d7 ,tax ,exempt ,/atus ( ,,fha ,section #eja7l7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7#bf ,u4,s4,c4 #eja7l77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#e7 ,! ,f$]al ,h\s+ ,adm9i/ration e/abli%$ "u ! ,,fha ,re=m & ,mod]nization ,act ( #bjac4 4 #bai4 ,evaluation 7a7 ,9 ,g5]al ,! ,director %all conduct a /udy & submit a report to ! ,presid5t & ! ,congress on-- 7#a7 :e!r ?is title provides suffici5t au?ority to p]mit ! ,,fha to accompli% its public purposes effici5tly & effectively1 & 9 a safe & s\nd mann]2 7#b7 ! impact ( ! limitations on bus9ess activities z to mortgage am\nts & aggregate commitm5ts1 & any o!r /atutory limitations1 on ! curr5t & anticipat$ bus9ess activity ( ! ,,fha2 & 7#c7 :e!r ! provisions ( subtitle ,c appropriately provide t ! ,,fha w be op]at$ 9 a safe & s\nd mann] & w fulfill ! public purposes ( its e/abli%m5t4 7b7 ,tim+ ,! report requir$ by ?is section %all be submitt$ on ! ?ird ,janu>y #a/ occurr+ aft] ! conclusion ( ! transition p]iod "u section #bha4 #bbj4 ,fund+ 7a7 ,fund+ ( sal>ies & exp5ses ,!re is au?oriz$ to be appropriat$ = ea* fiscal ye> to ! ,,fha1 = sal>ies1 exp5ses1 & te*nology = ! managem5t & op]ations ( ! ,,fha an am\nt n exce$+ ! am\nt ( ! negative subsidy cr$it$ to ! negative subsidy receipt acc\nt n ne$$ = res]ves ( ! funds ( ! ,,fha pursuant to sections #bef & #bei4 7b7 ,fund+ ( ,claims 7#a7 ,availability ( funds ,am\nts cr$it$ to ! f9anc+ acc\nt ( ! ,,fha1 e/abli%$ pursuant to title ,v ( ! ,congressional ,budget ,act ( #aigd1 %all be p]man5tly & indef9itely available = paym5t ( any claim t ! ,,fha approves "u a contract ( insurance or o!r cr$it enhancem5t in/rum5t pursuant to ?is title4 7#b7 ,borr[+ au?ority 7,a7 ,9 g5]al ,to ! ext5t t su* am\nts are insuffici5t = su* purpose1 ! ,,fha may borr[ f ! ,treasury pursuant to title ,v ( ! ,congressional ,budget ,act ( #aigd4 7,b7 ,notice to ,congress ,^u ex]cis+ ! au?ority ref]r$ to 9 subp>agraph 7,a71 ! ,,fha %all submit to ! ,congress-- 7i7 notice ( su* ex]cise ( au?ority & ! ext5t ( ! borr[+ und]tak52 7ii7 a plan = repaym5t to ! ,treasury ( ! am\nts borr[$1 specify+ ! "t & am\nts ( su* paym5ts2 & 7iii7 if su* borr[+ is = ! ,mutual ,mortgage ,insurance ,fund1 h[ ! ,,fha w comply ) ! capital re/oration plan requir$ "u section #beg7;c74 #bba4 ,effective date ,?is subtitle %all take effect on ! date ( ! enactm5t ( ?is ,act4 ,b ,bus9ess au?ority & requirem5ts #bca4 ,au?ority to c>ry out ,,fha & o!r bus9ess 7a7 ,9 ,g5]al ,aft] ! expiration ( ! transition p]iod "u section #bha-- 7#a7 ! ,,fha may ex]cise 79 addition to p[]s set =? 9 section #bhb7 any au?ority & und]take any responsibilities ( ! ,secret>y ( ,h\s+ & ,urban ,developm5t "u ! ,national ,h\s+ ,act 7z am5d$ by ?is title7 relat+ to mortgage insurance1 except z o!rwise provid$ 9 ?is title & except t any au?ority t requires an appropriation may be conduct$ only to ! ext5t t am\nts are s appropriat$2 7#b7 any am\nts 9 ! ,mutual ,mortgage ,insurance ,fund "u section #bjb7;a7 ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agjh7;a771 any am\nts 9 ! ,g5]al ,insurance ,fund & ,special ,risk ,insurance ,fund "u sections #eai & #bch7;b71 respectively1 ( su* ,act 7#ab ,u4,s4,c4 #agce;c1 #agaez-#c7;b771 & any am\nts 9 ! ,coop]ative ,managem5t ,h\s+ ,insurance ,fund "u section #bac7k7 ( su* ,act 7#ab ,u4,s4,c4 #agae;e7k771 %all be us$ by ! ,,fha only-- 7,a7 = meet+ any obligations ( su* ,funds ent]$ into be=e su* transition date2 & 7,b7 = c>ry+ out ! mortgage insurance obligations ( ! ,,fha pursuant to section #bhb7a7 ( ?is title & p>agraph 7#a7 ( ?is section2 & 7#c7 ! ,,fha may ex]cise any au?ority ( ! ,,fha "u ?is title4 7b7 ,t]m9ation ( ,secret>y's ,,fha ,au?ority ,aft] ! expiration ( ! transition p]iod "u section #bha1 ! ,secret>y may n ex]cise any au?ority "u ! ,national ,h\s+ ,act relat+ to mortgage insurance4 ,?is subsection may n be con/ru$ to limit or o!rwise affect ! ,secret>y's au?ority "u title ,i ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agjb et seq474 7c7 ,cont9uation ( ,obligations ,?is section & section #bhb7a7 may n be con/ru$ to affect ! validity ( any "r1 duty1 or obligation ( ! ,unit$ ,/ates or o!r p]son aris+ "u or pursuant to any commitm5t or agreem5t lawfully ent]$ into ) ! ,secret>y ( ,h\s+ & ,urban ,developm5t "u ! ,national ,h\s+ ,act4 #bcb4 ,eligible s+le-family mortgages 7a7 ,9 ,g5]al ,not)/&+ section #bjc ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agji7 or any o!r provision ( law1 ! ,,fha may insure1 & make commitm5ts to insure1 a mortgage on a #a- to #d-;family resid5tial prop]ty only if ! mortgage complies ) ! foll[+ requirem5ts3 7#a7 ,mortgage am\nt ,! mortgage %all involve a pr9cipal obligation 7includ+ su* initial s]vice *>ges1 appraisal1 inspection1 & o!r fees z ! ,,fha %all approve7 9 an am\nt n to exce$ ! foll[+ am\nts3 7,a7 ,apprais$ value #ajj p]c5t ( ! apprais$ value ( ! prop]ty4 7,b7 ,area limitation 7i7 ,maximum limit ,! less] ( ! foll[+ am\nts3 7,i7 ,9 ! case (-- 7aa7 a #a-;family resid5ce1 #aae p]c5t ( ! m$ian #a-;family h\se price 9 ! area 9 :i* su* resid5ce is locat$1 z det]m9$ by ! ,,fha2 & 7bb7 9 ! case ( a #b-1 #c-1 or #d-;family resid5ce1 ! p]c5tage ( su* m$ian price t be>s ! same ratio to su* m$ian price z ! doll> am\nt limitation det]m9$ "u ! six? s5t5ce ( section #cje7;a77#b7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b77 = a #b-1 #c-1 or #d-;family resid5ce1 respectively1 be>s to ! doll> am\nt limitation det]m9$ "u su* section = a #a-;family resid5ce2 or 7,,ii7 #aej p]c5t ( ! doll> am\nt limitation det]m9$ "u ! six? s5t5ce ( su* section #cje7;a77#b7 = a resid5ce ( ! applicable size4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m area means a metropolitan /ati/ical area z e/abli%$ by ! ,(fice ( ,managem5t & ,budget2 & ! m$ian #a-;family h\se price = an area %all be equal to ! m$ian #a-;family h\se price ( ! c\nty )9 ! area t has ! highe/ su* m$ian price4 7ii7 ,m9imum limit ,not)/&+ clause 7i71 ! pr9cipal obligation limitation 9 effect = any area "u ?is subp>agraph may n be less ?an ! great] (-- 7,i7 #cge p]c5t ( ! m$ian income = ! area1 z det]m9$ by ! ,,fha2 or 7,,ii7 #bjj1jjj4 7#b7 ,d[npaym5t ,! mortgage %all be execut$ by a mortgagor :o %all h paid on acc\nt ( ! prop]ty subject to ! mortgage an am\nt1 9 ca% or its equival5t1 equal to or exce$+-- 7,a7 #e p]c5t ( ! co/ ( acquisition ( ! prop]ty1 z det]m9$ by ! ,,fha2 or 7,b7 9 ! case ( a mortgage "u :i* ! mortgagor is a fir/-"t homebuy] & = :i* su* cr$it enhancem5t z ! ,,fha %all det]m9e has be5 provid$1 #c4e p]c5t ( ! co/ ( acquisition ( ! prop]ty1 z det]m9$ by ! ,,fha4 7#c7 ,public purpose requirem5t ,! mortgage %all meet ! requirem5ts ( any "o ( ! foll[+ subp>agraphs3 7,a7 ,fir/-"t homebuy] ,! mortgagor "u ! mortgage is a fir/-"t homebuy] 7z su* t]m is def9$ 9 section #bjb7 ( ! prop]ty subject to ! mortgage & ! prop]ty is us$ z ! pr9cipal resid5ce ( ! mortgagor4 7,b7 ,l[- or mod]ate-income mortgagor ,! mortgagor "u ! mortgage is a memb] ( a family z foll[s3 7i7 ,9 g5]al ,a family hav+ an income t is less ?an #aae p]c5t ( ! m$ian income1 z det]m9$ by ! ,,fha1 = ! area 9 :i* ! prop]ty subject to ! mortgage is locat$1 except t ! ,,fha may e/abli% income ceil+s high] or l[] ?an #aae p]c5t ( ! m$ian = ! area to take into consid]ation v>i\s sizes ( families4 7ii7 ,high-co/ areas ,a family t-- 7,i7 resides 9 any area = :i* ! m$ian #a-;family h\se price exce$s ! maximum doll> am\nt limitation 9 effect = t ye> on ! orig9al pr9cipal obligation ( a mortgage on a #a-;family resid5ce t may be pur*as$ by ! ,f$]al ,home ,loan ,mortgage ,corporation1 z det]m9$ "u section #cje7;a77#b7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b772 & 7,,ii7 has an income t is less ?an #aej p]c5t ( ! m$ian income1 z det]m9$ by ! ,,fha1 = ! area 9 :i* ! prop]ty subject to ! mortgage is locat$1 except t ! ,,fha may e/abli% income ceil+s high] or l[] ?an #aej p]c5t ( ! m$ian = ! area to take into consid]ation v>i\s sizes ( families4 ,= purposes ( ?is subp>agraph1 ! t]m area has ! mean+ giv5 su* t]m 9 ! la/ s5t5ce ( p>agraph 7#a77;,b77i74 7,c7 ,c\nt]-cyclical m>ket adju/m5t ,! prop]ty subject to ! mortgage is locat$ 9 a c\nty or c\nties = :i* a det]m9ation "u ?is subp>agraph has be5 made1 z foll[s3 7i7 ,det]m9ation ,a mortgage may be insur$ pursuant to ?is subp>agraph only ^u a jo9t det]m9ation by ! ,director & ! ,*ief ,risk ,(fic] t-- 7,i7 available cr$it = ! pur*ase ( #a- to #d-;family homes locat$ 9 su* c\nty or c\nties has contract$ significantly1 z measur$ by ! cr$it availability measure ( ! ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7,,ii7 h\s+ prices 9 su* c\nty or c\nties h decl9$ significantly1 z measur$ by ! applicable h\s+ price index ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy2 or 7,,iii7 available cr$it = ! pur*ase ( h\s+ or su* o!r economic conditions exi/ suffici5t to evid5ce a significant contraction ( capital 9 su* c\nty or c\nties1 z measur$ by a metric id5tifi$ by ! ,director & ! ,*ief ,risk ,(fic] 9 a writt5 notice made publicly available1 & provid$ to ! ,congress1 9 advance ( su* det]m9ation4 7ii7 ,conditions ( t]m9ation ,^u mak+ a det]m9ation "u clause 7i71 ! ,director & ! ,*ief ,risk ,(fic] %all also id5tify measurable crit]ia = det]m9+ t ! conditions det]m9$ "u clause 7i7 = su* c\nty or c\nties h ceas$ to exi/4 7iii7 ,notice to ,congress ,^u mak+ a det]m9ation "u clause 7i71 ! ,director & ! ,*ief ,risk ,(fic] %all provide writt5 notice to ! ,congress ( su* det]m9ation & ! specific measurable crit]ia id5tifi$ pursuant to clause 7ii74 7iv7 ,t]m9ation ,! au?ority to insure mortgages pursuant to ?is subp>agraph on prop]ties locat$ 9 a c\nty or c\nties %all t]m9ate ^u ! e>li] (-- 7,i7 ! expiration ( ! #ah-mon? p]iod beg9n+ ^u ! date t notification "u clause 7iii7 is provid$ to ! ,congress ( ! det]m9ation "u clause 7i7 ) respect to su* c\nty or c\nties2 or 7,,ii7 ! occurr5ce ( ! conditions id5tifi$ pursuant to clause 7ii7 ) respect to su* c\nty or c\nties4 7v7 ,multiple det]m9ations ,no?+ 9 ?is subp>agraph may be con/ru$ to prev5t multiple or consecutive p]iods = a c\nty or c\nties dur+ :i* mortgages on prop]ties locat$ 9 su* c\nty or c\nties may be insur$ pursuant to ?is subp>agraph4 7,d7 ,disa/] area ,! ,bo>d ( ,directors ex]cises ! au?ority to insure mortgages "u ?is subp>agraph1 subject to ! foll[+ requirem5ts3 7i7 ,implem5tation ,! ,bo>d ( ,directors may implem5t au?ority to insure mortgages "u ?is subp>agraph only if ! ,bo>d-- 7,i7 by a vote ( ! majority ( its memb]s1 approves su* implem5tation = a specific disa/] area "u clause 7iii7 & a specific disa/] p]iod "u clause 7iv72 & 7,,ii7 notifies ! ,congress & ! ,presid5t 9 writ+ ( su* approval1 su* disa/] p]iod1 & su* disa/] area n less ?an #cj days be=e ! comm5cem5t ( ! disa/] p]iod4 7ii7 ,eligible mortgages ,! ,,fha may insure1 or make a commitm5t to insure1 a mortgage "u au?ority "u ?is subp>agraph only if-- 7,i7 ! mortgage is made = ! pur*ase ( a pr9cipal resid5ce by a mortgagor ^: home 7t ! mortgagor occupi$ z an own] or t5ant7 0 locat$ 9 a disa/] area describ$ "u clause 7iii7 & 0 de/roy$ or damag$ to su* an ext5t t recon/ruction is requir$1 z a result ( a major disa/] decl>$ by ! ,presid5t "u ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act2 & 7,,ii7 ! commitm5t = mortgage insurance is made dur+ ! disa/] p]iod e/abli%$ "u clause 7iv7 = su* disa/] area4 7iii7 ,disa/] area ,a disa/] area may be e/abli%$ = purposes ( ?is subp>agraph only = ! area affect$ by a major disa/]1 z decl>$ by ! ,presid5t "u ! ,rob]t ,t4 ,/af=d ,disa/] ,relief & ,em]g5cy ,assi/ance ,act1 or a portion ( su* area1 z det]m9$ by ! ,,fha4 7iv7 ,disa/] p]iod ,a disa/] p]iod e/abli%$ = purposes ( ?is subp>agraph %all-- 7,i7 comm5ce ^u or aft] ! decl>ation ( ! major disa/] ref]r$ to 9 clause 7iii72 & 7,,ii7 t]m9ate on ! date c]ta9 approv$ by ! ,bo>d ( ,directors "u clause 7i77,i7 & conta9$ 9 ! notice "u clause 7i77,,ii71 :i* %all n be lat] ?an #ah mon?s aft] ! comm5cem5t ( ! p]iod4 7b7 ,con=m+ am5dm5ts ,section #bjc7;b7 ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agji7;b77 is am5d$-- 7#a7 by /rik+ p>agraph 7#b72 & 7#b7 9 p>agraph 7#i7-- 7,a7 by /rik+ subp>agraph 7,a72 & 7,b7 9 subp>agraph 7,b71 by /rik+ ?is p>agraph & ins]t+ section #bjb7;a77#b7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac4 #bcc4 ,risk-%>+ 7a7 ,developm5t ( demon/ration model ,n lat] ?an ! expiration ( ! #b-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,,fha %all develop & implem5t a model & /&>ds = ent]+ into risk-%>+ agreem5ts ) respect to mortgages insur$ by ! ,,fha1 "u :i* ! ,,fha %all insure a portion ( ! am\nt ( ! mortgage & p]sons or entities det]m9$ "u ! guidel9es e/abli%$ pursuant to subsection 7b7 to be qualifi$ to p>ticipate 9 su* an agreem5t %all insure ! rema9d] 7or ano!r7 portion ( ! am\nt ( ! eligible mortgage4 7b7 ,qualifications ( ,risk-,%>+ ,p>tn]s 7#a7 ,e/abli%m5t ,! model & /&>ds e/abli%$ "u ?is section %all include guidel9es = ! qualification ( p]sons or entities to p>ticipate 9 risk-%>+ & o!r cr$it enhancem5t activities ) ! ,,fha4 7#b7 ,proc$ures ,9 e/abli%+ su* guidel9es1 ! ,,fha %all review ! guidel9es e/abli%$ by ! ,director = qualification ( p]sons or entities to p>ticipate 9 risk-%>+ & o!r cr$it enhancem5t activities ) ! ,f$]al ,national ,mortgage ,association or ! ,f$]al ,home ,loan ,mortgage ,corporation4 ,! ,,fha %all det]m9e :e!r su* guidel9es = su* ent]prises are suffici5t = purposes ( ! ,,fha1 includ+ :e!r su* guidel9es meet ! requirem5ts "u p>agraph 7#c71 &-- 7,a7 if ! ,,fha det]m9es t su* guidel9es are s suffici5t1 ! ,,fha %all adopt su* guidel9es = purposes ( ?is section1 to ! ext5t appropriate1 ) any *anges necess>y to acc\nt = diff]5ces betwe5 ! mortgages insur$ "u ?is title & ! ,national ,h\s+ ,act & ! bus9ess "u su* provisions & ! bus9ess ( su* ent]prises2 or 7,b7 if ! ,,fha det]m9es t su* guidel9es are n s suffici5t1 ! ,,fha %all adopt su* guidel9es = purposes ( ?is section1 to ! ext5t appropriate & ) *anges ref]r$ to 9 subp>agraph 7,a71 toge!r ) additional crit]ia suffici5t to address any su* insuffici5cy4 7#c7 ,cont5t ,su* guidel9es %all ensure t-- 7,a7 p]sons or entities p>ticipat+ 9 risk-%>+ & o!r cr$it enhancem5t activities pursuant to ?is section h suffici5t capital1 cr$it wor?9ess1 & liquidity1 & are o!rwise capable ( fulfill+ _! obligations to ! ,,fha2 7,b7 su* p]sons or entities & _! pr9cipals or (fic]s are n engag$ 9 a bus9ess ! goals ( :i* w\ld conflict ) ! purposes ( ! ,,fha or ! ,national ,h\s+ ,act2 & 7,c7 product or s]vice deliv]y w be conduct$ 9 a mann] t is effici5t & effective1 & t w comply ) ! requirem5t "u section #baa7;d74 7c7 ,risk-,%>+ requirem5t 7#a7 ,requirem5t ,aft] ! expiration ( ! #b-ye> p]iod ref]r$ to 9 subsection 7a71 ! ,,fha %all ensure t1 9 ea* fiscal ye>1 n less ?an #aj p]c5t ( any new bus9ess 9 mortgages on #a- to #d-;family resid5tial prop]ty is insur$ pursuant to a risk-%>+ agreem5t ) respect to su* mortgage t complies ) ! /&>ds e/abli%$ pursuant to subsection 7a74 7#b7 ,limitation ,9 any fiscal ye>1 ! ,,fha may n comply ) p>agraph 7#a7 by ent]+ into risk-%>+ agreem5ts ) respect only to "o or a limit$ numb] ( types or categories ( mortgages1 or mortgages hav+ only p>ticul>1 or a p>ticul> range (1 orig9al pr9cipal obligation am\nts1 b %all ent] into risk-%>+ agreem5ts = all types & am\nts ( mortgages insur$ by ! ,,fha1 to ! ext5t requir$ "u p>agraph 7#a74 7#c7 ,new bus9ess ,= purposes ( ?is subsection1 ) respect to a fiscal ye>1 ! t]m new bus9ess means ! aggregate doll> am\nt ( ! pr9cipal obligations ( mortgages = :i* a commitm5t to insure is made pursuant to ! ,national ,h\s+ ,act or ?is title1 z applicable1 dur+ su* fiscal ye>4 7d7 ,reports to ,congress ,^u ! expiration ( ea* ( ! #c- & #e-ye> p]iods beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,,fha %all submit a report to ! ,congress on ! f9d+s & results ( risk-%>+ activities "u ?is section4 ,su* reports %all describe ! model & /&>ds = ent]+ into risk-%>+ agreem5ts1 analyze appropriate doll> am\nt limits = ! orig9al pr9cipal obligations ( mortgages t %\ld be subject to a risk-%>+ requirem5t1 id5tify ! effects ( su* risk-%>+ activities on ! ,mutual ,mortgage ,insurance ,fund1 & make recomm5dations reg>d+ exp&+ ! risk-%>+ requirem5t "u subsection 7c74 7e7 ,effective date ,?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 ,dur+ ! transition p]iod "u section #bha1 any ref]5ce 9 ?is section to ! ,,fha %all be con/ru$ to ref] to ! ,secret>y to ! ext5t ! ,secret>y has n delegat$ au?ority "u ?is section to ! ,,fha pursuant to section #bhb7a74 #bcd4 ,limitation on mortgage insurance cov]age 7a7 ,limitation ,not)/&+ any o!r provision ( ?is title or ! ,national ,h\s+ ,act1 ! ,,fha may n insure1 or make any commitm5t to insure1 any portion ( any mortgage on a #a- to #d-;family resid5tial prop]ty 9 excess ( ! am\nt equal to ! foll[+ p]c5tage ( ! orig9al pr9cipal obligation ( ! mortgage3 7#a7 ,9 ! case ( any su* mortgage insur$ aft] ! expiration ( ! #a-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 #ij p]c5t ( su* orig9al pr9cipal obligation1 subject to p>agraphs 7#b7 ?r\gh 7#e74 7#b7 ,9 ! case ( any su* mortgage insur$ aft] ! expiration ( ! #b-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 #hj p]c5t ( su* orig9al pr9cipal obligation1 subject to p>agraphs 7#c7 ?r\gh 7#e74 7#c7 ,9 ! case ( any su* mortgage insur$ aft] ! expiration ( ! #c-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 #gj p]c5t ( su* orig9al pr9cipal obligation1 subject to p>agraphs 7#d7 & 7#e74 7#d7 ,9 ! case ( any su* mortgage insur$ aft] ! expiration ( ! #d-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 #fj p]c5t ( su* orig9al pr9cipal obligation1 subject to p>agraph 7#e74 7#e7 ,9 ! case ( any su* mortgage insur$ aft] ! expiration ( ! #e-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 #ej p]c5t ( su* orig9al pr9cipal obligation4 7b7 ,effective date ,?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 ,dur+ ! transition p]iod "u section #bha1 any ref]5ce 9 ?is section to ! ,,fha %all be con/ru$ to ref] to ! ,secret>y to ! ext5t ! ,secret>y has n delegat$ au?ority "u ?is section to ! ,,fha pursuant to section #bhb7a74 #bce4 ,premiums 7a7 ,e/abli%m5t ,! ,,fha %all e/abli% & collect premium paym5ts = mortgage insurance provid$ pursuant to ?is title & ! am5dm5ts made by ?is title1 & %all provide = %>+ ( premiums ) entities ent]+ into risk-%>+ agreem5ts ) ! ,,fha pursuant to section #bcc bas$ on ! relative portion ( ! mortgage insur$ & ! risk ( loss borne4 7b7 ,m9imum premiums ,9 ! case ( mortgages on #a- to #d-;family resid5tial prop]ties insur$ by ! ,,fha1 ! premiums e/abli%$ & collect$ by ! ,,fha %all include an annual premium paym5t 9 an am\nt n less ?an #j4ee p]c5t ( ! rema9+ insur$ pr9cipal balance 7exclud+ ! portion ( ! rema9+ balance attributable to any premium collect$ at ! "t ( insurance & )\t tak+ into acc\nt del9qu5t paym5ts or prepaym5ts7 = ! entire t]m ( ! mortgage4 7c7 ,self-,suffici5t op]ations ,not)/&+ section #bjc7;c7 ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agji7;c77 or any o!r provision ( law1 premium rates e/abli%$ "u ?is section %all be e/abli%$ 9 am\nts suffici5t to cov]-- 7#a7 co/s ( provid+ mortgage insurance cov]age "u ?is title2 7#b7 co/s = adm9i/ration1 op]ations1 managem5t1 & te*nology sy/ems = ! ,,fha = c>ry+ out ?is title2 7#c7 ! capital ratio requir$ = ! ,mutual ,mortgage ,insurance ,fund "u section #bef7;b7 & "u section #bei ) respect to mortgage insurance = mortgages on multifamily prop]ties2 & 7#d7 sal>ies & exp5ses = (fic]s & p]sonnel ( ! ,,fha4 7d7 ,risk-,bas$ premiums ,! ,,fha may1 ) respect to mortgages on #a- to #d-;family resid5tial prop]ties insur$ by ! ,,fha1 e/abli% a mortgage insurance premium /ructure involv+ a s+le premium paym5t collect$ prior to ! insurance ( ! mortgage or annual paym5ts 7:i* may be collect$ on a p]iodic basis71 or bo?4 ,"u su* /ructure1 ! rate ( premiums = su* a mortgage may v>y accord+ to ! cr$it risk associat$ ) ! mortgage & ! rate ( any annual premium = su* a mortgage may v>y dur+ ! mortgage t]m1 except t ! basis = det]m9+ ! v>iable rate %all be e/abli%$ be=e ! execution ( ! mortgage4 ,! ,,fha may *ange a premium /ructure e/abli%$ "u ?is subsection1 b only to ! ext5t t su* *ange is n appli$ to any mortgage already execut$4 7e7 ,sav+s provision ,no?+ 9 ?is section may be con/ru$ to affect premiums *>g$ = mortgage insurance provid$ = mortgages insur$ be=e ! date ( ! enactm5t ( ?is ,act4 #bcf4 ,default & =eclosure /atem5t 7a7 ,writt5 /atem5t ,! ,,fha %all ensure t ea* mortgagor "u a mortgage on a #a- to #d-;family resid5tial prop]ty insur$ by ! ,,fha is provid$1 by ! mortgagee at ! "t t su* mortgage is orig9at$1 ) a writt5 /atem5t conta9+ ! in=mation requir$ "u subsection 7b74 7b7 ,default & =eclosure in=mation ,! in=mation requir$ "u ?is subsection ) respect to a mortgage is in=mation id5tify+ ! p]c5tage 7z det]m9$ accord+ to hi/orical rates ( default & =eclosure7 ( mortgages on #a- to #d-;family resid5tial prop]ties t 7 insur$ pursuant to ?is title & ! ,national ,h\s+ ,act & t _h mortgagors :o h ! same risk pr(ile & mortgage product z ! mortgagor receiv+ ! writt5 /atem5t pursuant to ?is section 7z det]m9$ 9 accordance ) guidel9es e/abli%$ by ! ,,fha7 t-- 7#a7 dur+ ! t]ms ( su* mortgages1 exp]i5c$ a default on paym5ts due "u su* mortgages2 & 7#b7 7 =eclos$ ^u dur+ ! t]ms ( su* mortgages4 #bcg4 ,occupancy & r5t limitations = multifamily mortgage insurance 7a7 ,9 g5]al ,not)/&+ any provision ( ! ,national ,h\s+ ,act or any o!r provision ( law1 ! ,,fha may n insure any mortgage on a resid5tial prop]ty hav+ #e or m dwell+ units unless ! prop]ty is subject to su* b9d+ t]ms & conditions1 includ+ su* occupancy & r5t re/rictions1 z are satisfactory to ! ,,fha to ensure t ! prop]ty includes dwell+ units1 to ! ext5t det]m9$ by ! ,,fha to be appropriate1 = :i* occupancy is re/rict$ dur+ ! entire t]m ( ! mortgage to only ! foll[+ families3 7#a7 ,9 g5]al ,a family hav+ an income t is less ?an #aae p]c5t ( ! m$ian income1 z det]m9$ by ! ,,fha1 = ! area 9 :i* ! prop]ty subject to ! mortgage is locat$1 except t ! ,,fha may e/abli% income ceil+s high] or l[] ?an #aae p]c5t ( ! m$ian = ! area to take into consid]ation v>i\s sizes ( families4 7#b7 ,high-co/ areas ,a family t-- 7,a7 resides 9 any area 9 :i* ! m$ian #a-;family h\se price exce$s ! maximum doll> am\nt limitation 9 effect = t ye> on ! orig9al pr9cipal obligation ( a mortgage on a #a-;family resid5ce t may be pur*as$ by ! ,f$]al ,home ,loan ,mortgage ,corporation1 z det]m9$ "u section #cje7;a77#b7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b772 & 7,b7 has an income t is less ?an #aej p]c5t ( ! m$ian income1 z det]m9$ by ! ,,fha1 = ! area 9 :i* ! prop]ty subject to ! mortgage is locat$1 except t ! ,,fha may e/abli% income ceil+s high] or l[] ?an #aej p]c5t ( ! m$ian = ! area to take into consid]ation v>i\s sizes ( families4 7b7 ,l[] incomes ,subsection 7a7 may n be con/ru$ to prev5t ! ,,fha f e/abli%+ occupancy1 income1 & r5t re/rictions t e/abli% limits on incomes = families occupy+ income-re/rict$ units 9 a prop]ty t are l[] ?an ! incomes specifi$ 9 subsection 7a74 7c7 ,area ,= purposes ( ?is section1 ! t]m area has ! mean+ giv5 su* t]m 9 ! la/ s5t5ce ( section #bcb7;a77#a77;b77i74 #bch4 ,effective date ,?is subtitle & ! am5dm5ts made by ?is subtitle1 except = sections #bcc & #bcd1 %all take effect ^u ! expiration ( ! transition p]iod "u section #bha4 ,c ,f9ancial safety & s\ndness #bea4 ,au?ority ( ,director 7a7 ,duty ,! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy %all sup]vise & regulate ! safety & s\ndness ( ! ,,fha & ! programs ( ! ,rural ,h\s+ ,s]vice ( ! ,dep>tm5t ( ,agriculture = h\s+ loans made1 insur$1 or gu>ante$ "u title ,v ( ! ,h\s+ ,act ( #aidi1 & x %all be ! duty ( ! ,director to ensure t ! ,,fha & su* ,rural ,h\s+ ,s]vice programs are adequately capitaliz$ & op]at+ safely4 7b7 ,au?ority ,! ,director may make su* det]m9ations1 take su* actions1 & p]=m su* functions z ! ,director det]m9es necess>y to meet ! responsibilities ( ! ,director "u ?is subtitle4 #beb4 ,budgets & bus9ess plans 7a7 ,submission ( bus9ess-,type budget ,9 ea* ye>1 ! ,,fha %all prep>e & submit an annual budget z requir$ "u section #iajc ( title #ca1 ,unit$ ,/ates ,code1 & %all submit su* budget to ! ,director by a date suffici5t to enable ! ,director to produce1 pursuant to section #bee7;c7 ( ?is title1 ! cr$it subsidy co/ e/imates t are requir$ = ! budget ( ! ,unit$ ,/ates ,gov]nm5t "u section #aaje7;a7 ( title #ca1 ,unit$ ,/ates ,code4 7b7 ,submission ( ,budget & ,cr$it ,co/ ,e/imates to ,,omb ,= purposes ( inclusion 9 ! budget ( ! ,unit$ ,/ates ,gov]nm5t1 ! ,,fha %all submit ! annual budget ( ! ,,fha & ! annual cr$it subsidy co/ e/imates produc$ pursuant to section #bee7;c7 ( ?is title to ! ,director ( ! ,(fice ( ,managem5t & ,budget4 7c7 ,res]ves 7#a7 ,e/abli%m5t ,subject to sections #bef & #bei1 ! ,,fha may e/abli% any res]ve t ! ,,fha det]m9es is necess>y = ! bus9ess op]ations ( ! ,,fha4 7#b7 ,am\nts ,! ,,fha may hold z a res]ve 9 any f9anc+ acc\nt1 z def9$ 9 section #ejb ( ! ,congressional ,budget ,act ( #aigd 7#b ,u4,s4,c4 #ffa;a71 su* am\nts z ! ,,fha consid]s necess>y to comply ) ! capital requirem5ts e/abli%$ = ! ,,fha "u sections #bef & #bei ( ?is title & to fulfill ! purposes ( ?is title4 #bec4 ,annual bus9ess plan2 use ( ,,gaap 7a7 ,annual bus9ess plan ,! ,,fha %all e/abli% a bus9ess plan on an annual basis & %all make su* plan available = review by ! ,director4 ,su* plan %all specify ! products & op]ational /rategy ( ! ,,fha1 includ+ plans to address compliance ) ! safety & s\ndness requirem5ts applicable to ! ,,fha4 7b7 ,use ( ,,gaap ,any f9ancial report+ ( ! ,,fha1 includ+ ! prep>ation ( ! annual bus9ess plan requir$ by subsection 7a71 ! annual budget requir$ 9 accordance ) section #beb7;a71 & any f9ancial /atem5ts ( ! ,,fha1 %all be conduct$ 9 accordance ) g5]ally accept$ acc\nt+ pr9ciples applicable to ! private sector4 #bed4 ,exam9ations1 reports1 & co/ e/imates 7a7 ,exam9ations ,! ,director %all conduct su* exam9ations ( ! ,,fha & ! ,rural ,h\s+ ,s]vice programs ref]r$ to 9 section #bea7;a7 z ! ,director det]m9es necess>y to evaluate ! safety & s\ndness ( ! ,,fha & su* programs4 ,su* exam9ations %all be subject to & gov]n$ by subsections 7c7 ?r\gh 7h7 ( section #acag ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #deag71 except t ! la/ s5t5ce ( subsection 7c7 %all n apply & any reimbursem5ts ref]r$ to 9 su* s5t5ce %all be made f am\nts collect$ "u section #bee ( ?is title4 7b7 ,reports ,! ,director may require ! ,,fha & ! ,rural ,h\s+ ,s]vice to submit1 )9 a reasonable p]iod ( "t1 any regul> or special report1 data1 or o!r in=mation :5ev]1 9 ! judgm5t ( ! ,director1 su* report1 data1 or in=mation is necess>y to c>ry out ! ,director's responsibilities "u ?is title4 7c7 ,cr$it ,subsidy ,co/ ,e/imates 7#a7 ,9 g5]al ,! ,director %all produce & submit to ! ,director ( ! ,(fice ( ,managem5t & ,budget ! annual cr$it subsidy co/ e/imates = ! ,,fha & ! ,rural ,h\s+ ,s]vice programs ref]r$ to 9 section #bea7;a7 requir$ = ! ,presid5t's budget4 ,su* e/imates %all be consi/5t ) ! e/imates ( p]=mance g5]at$ by ! risk-bas$ capital model develop$ 9 accordance ) section #beg7;b71 & ) ! ,presid5t's economic =eca/4 7#b7 ,unifi$ e/imates ,! annual cr$it subsidy co/ e/imates produc$ "u ?is subsection by ! ,director %all be report$ on a unifi$ basis1 :i* %all be bas$ ^u ! bus9ess ( ! ,,fha1 & ! ,rural ,h\s+ ,s]vice programs ref]r$ to 9 section #bea7;a71 z a :ole4 7d7 ,annual ,report on ,safety & ,s\ndness ,! ,director %all submit an annual report to ,congress & ! ,director ( ! ,(fice ( ,managem5t & ,budget on ! f9ancial safety & s\ndness ( ! ,,fha & ! ,rural ,h\s+ ,s]vice programs ref]r$ to 9 section #bea7;a71 z measur$ pursuant to ?is subtitle4 #bee4 ,reimbursem5t ( co/s 7a7 ,assessm5t & ,collection ,! ,director %all assess & collect f ! ,,fha & ! ,secret>y ( ,agriculture annual assessm5ts 9 su* am\nts det]m9$ by ! ,director z necess>y to reimburse ! ,f$]al ,h\s+ ,f9ance ,ag5cy = ! reasonable co/s & exp5ses ( ! activities und]tak5 by su* ,ag5cy to c>ry out ! duties ( ! ,director "u ?is subtitle1 includ+ ! co/s ( exam9ation1 en=cem5t1 & ov]sight exp5ses4 7b7 ,requirem5ts ,annual assessm5ts impos$ by ! ,director %all be-- 7#a7 impos$ prior to ,octob] #a ( ea* ye>2 7#b7 allocat$ among ! ,,fha & ! ,secret>y ( ,agriculture proportionally bas$ on ! co/s & exp5ses ( ! ,ag5cy ( c>ry+ out ! duties "u ?is subtitle ) respect to ,,fha & ! ,rural ,h\s+ ,s]vice program ref]r$ to 9 section #bea7;a71 respectively2 7#c7 collect$ at su* "t or times dur+ ea* assessm5t ye> z det]m9$ necess>y or appropriate by ! ,director2 & 7#d7 treat$ 9 ! same mann] z provid$ "u section #acaf7;f7 ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #deaf7;f77 ) respect to am\nts receiv$ by ! ,director f assessm5ts "u section #acaf ( su* ,act1 except t am\nts f assessm5ts "u ?is section may be us$ only = exp5ses ( ! ,director & ! ,ag5cy relat+ to ! functions & responsibilities "u ?is subtitle4 #bef4 ,mutual ,mortgage ,insurance ,fund capital res]ve 7a7 ,segregation ( books ,to ensure accurate det]m9ations ( ! capital ratio "u subsection 7b7 ( ?is section & su* ratio "u section #bje7;f7 ( ! ,national ,h\s+ ,act1 z am5d$ by subsection 7d7 ( ?is section1 ! ,,fha %all e/abli% sep>ate acc\nts 9 ! ,mutual ,mortgage ,insurance ,fund & take su* o!r actions z may be necess>y to segregate ! foll[+ am\nts3 7#a7 ,capital attributable to new bus9ess4 7#b7 ,capital attributable to mortgages t become insur$ be=e ! expiration ( ! transition p]iod "u section #bha4 7b7 ,capital ratio = new bus9ess ,! ,,fha %all ensure t ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund t is e/abli%$ pursuant to subsection 7a77#a7 ( ?is section at all times ma9ta9s a capital ratio ( n less ?an #d4j p]c5t4 7c7 ,def9itions ,= purposes ( ?is section1 ! foll[+ def9itions %all apply3 7#a7 ,capital ,! t]m capital means ! economic net wor? ( ! acc\nt ( ! ,fund t is e/abli%$ pursuant to subsection 7a77#a7 ( ?is section1 z det]m9$ by ! ,,fha "u ! annual audit requir$ "u section #ech ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agce;f-#af74 7#b7 ,capital ratio ,! t]m capital ratio means ! ratio ( capital to unamortiz$ insurance-9-=ce4 7#c7 ,economic net wor? ,! t]m economic net wor? means ! curr5t ca% available to ! acc\nt ( ! ,fund t is e/abli%$ pursuant to subsection 7a77#a7 ( ?is section1 plus ! net pres5t value ( all future ca% infl[s & outfl[s expect$ to result f out/&+ new bus9ess4 7#d7 ,fund ,! t]m ,fund means ! ,mutual ,mortgage ,insurance ,fund e/abli%$ "u section #bje ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agaa74 7#e7 ,new bus9ess ,! t]m new bus9ess means mortgages t are obligations ( ! ,mutual ,mortgage ,insurance ,fund t become insur$ by ! ,,fha aft] ! expiration ( ! transition p]iod "u section #bha4 7#f7 ,unamortiz$ insurance 9 =ce ,! t]m unamortiz$ insurance-9-=ce means ! rema9+ obligation on out/&+ new bus9ess1 z e/imat$ by ! ,,fha4 7d7 ,treatm5t ( exi/+ capital ratio ,p>agraph 7#d7 ( section #bje7;f7 ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agaa7;f77#d77 is am5d$-- 7#a7 9 subp>agraph 7,a71 by /rik+ ,mutual ,mortgage ,insurance ,fund & ins]t+ acc\nt ( ! ,mutual ,mortgage ,insurance ,fund t is e/abli%$ pursuant to subsection 7a77#b7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac2 7#b7 9 subp>agraph 7,c7-- 7,a7 by /rik+ ,fund ! fir/ place su* t]m appe>s & ins]t+ acc\nt ( ! ,mutual ,mortgage ,insurance ,fund t is e/abli%$ pursuant to subsection 7a77#b7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac2 & 7,b7 by /rik+ ! ,fund4 & ins]t+ ! foll[+3 su* acc\nt t become insur$ by ! ,secret>y ( ,h\s+ & ,urban ,developm5t 7or ! ,,fha1 pursuant to subtitle ,d ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac7 be=e ! expiration ( ! transition p]iod "u section #bha ( su* ,act42 & 7#c7 9 subp>agraph 7,d71 by ins]t+ be=e ! comma ! foll[+3 & become insur$ be=e ! expiration ( ! transition p]iod "u section #bha ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac4 #beg4 ,capital classifications & p]=mance measures = ,mutual ,mortgage ,insurance ,fund 7a7 ,capital classification2 effect on insurance au?ority 7#a7 ,adequately capitaliz$ ,at any "t t ! capital ratio 7z su* t]m is def9$ 9 section #bef7;c77#b7 ( ?is title7 is great] ?an #d4j p]c5t1 ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 %all be classifi$ z adequately capitaliz$ = purposes ( ?is subtitle4 7#b7 ,und]capitaliz$ ,at any "t t ! capital ratio is less ?an #d4j p]c5t-- 7,a7 ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 %all be classifi$ z und]capitaliz$ = purposes ( ?is subtitle2 & 7,b7 if su* capital ratio is-- 7i7 equal to or great] ?an #b4j p]c5t1 ! ,,fha may n ent] into any new commitm5t to insure any mortgage on a #a- to #d-;family resid5tial prop]ty t involves a pr9cipal obligation 7includ+ su* initial s]vice *>ges1 appraisal1 inspection1 & o!r fees z ! ,,fha %all approve7 9 an am\nt exce$+ #ij p]c5t ( ! apprais$ value ( ! prop]ty2 & 7ii7 less ?an #b4j p]c5t b equal to or great] ?an #j4j p]c5t1 ! ,,fha may n ent] into any new commitm5t to insure any mortgage on a #a- to #d-;family resid5tial prop]ty t involves a pr9cipal obligation 7includ+ su* initial s]vice *>ges1 appraisal1 inspection1 & o!r fees z ! ,,fha %all approve7 9 an am\nt exce$+ #hj p]c5t ( ! apprais$ value ( ! prop]ty4 7#c7 ,significantly und]capitaliz$ ,at any "t t ! capital ratio is less ?an #j4j p]c5t-- 7,a7 ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 %all be classifi$ z significantly und]capitaliz$ = purposes ( ?is subtitle2 & 7,b7 ! ,director may1 pursuant to section #beh7;a77#a71 take actions "u section #beh7;b74 7#d7 ,qu>t]ly det]m9ation ( capital ratio ,! ,director %all det]m9e ! capital ratio & ! capital classification ( ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 = purposes ( ?is subtitle n less frequ5tly ?an ea* cal5d> qu>t]4 7b7 ,/ress te/ 7#a7 ,9 g5]al ,! ,director %all develop a risk-bas$ capital model to det]m9e ! am\nt ( capital t is suffici5t = ! ,,fha to ma9ta9 positive capital dur+ a p]iod ( economic /ress4 ,! model %all incorporate ! assumptions "u p>agraphs 7#b7 & 7#c74 7#b7 ,cr$it risk ,= purposes ( p>agraph 7#a71 ! ,director %all assume t1 dur+ ! p]iod ( economic /ress ref]r$ to 9 p>agraph 7#a71 cr$it losses occur at a rate consi/5t ) a nationwide economic recession ( av]age sev]ity bas$ on nationwide economic recessions s9ce #aiej4 7#c7 ,o!r risks ,= purposes ( p>agraph 7#a71 ! ,director %all make assumptions ab\t su* o!r aspects ( ! p]iod ( economic /ress z ! ,director det]m9es are appropriate & consi/5t4 7c7 ,capital re/oration plan requirem5t ,if ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 is classifi$ z und]capitaliz$ or significantly und]capitaliz$1 ! ,,fha %all-- 7#a7 submit to ! ,director a capital re/oration plan meet+ ! requirem5ts ( section #beh7;d7 = rais+ or re/or+ ! capital ( su* acc\nt to an am\nt n less ?an ! am\nt requir$ = su* acc\nt to be classifi$ z adequately capitaliz$2 & 7#b7 ^u approval by ! ,director1 c>ry out su* plan4 ,if ! ,director disapproves a capital re/oration plan submitt$ "u ?is subsection1 ! ,director %all convey 9 writ+ reasons = su* disapproval & %all provide = ! ,,fha to resubmit a revis$ plan = approval by ! ,director4 #beh4 ,en=cem5t 7a7 ,gr\nds ,! ,director may take actions "u subsection 7b7 only if-- 7#a7 ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 is classifi$ "u section #beg7;a7 z significantly und]capitaliz$2 7#b7 ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a7 is classifi$ "u section #beg7;a7 z und]capitaliz$ &-- 7,a7 ! ,,fha does n submit a capital re/oration plan t is sub/antially 9 compliance ) section #beg7;c7 )9 ! applicable p]iod1 or ! ,director disapproves ! capital re/oration plan submitt$ by ! ,,fha2 or 7,b7 ! ,,fha has fail$ to make1 9 good fai?1 reasonable ef=ts necess>y to comply ) ! capital re/oration plan2 or 7#c7 ! ,,fha is engag+ or has engag$1 or ! ,director has reasonable cause to believe t ! ,,fha is ab\t to engage 9-- 7,a7 any conduct t is likely to ?reat5 ! adequacy ( ! capital ( ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a72 7,b7 any failure to comply ) any writt5 agreem5t ent]$ into by ! ,,fha ) ! ,director2 or 7,c7 any failure to comply ) any reque/ by ! ,director = a report1 data1 or in=mation "u section #bed7;b74 7b7 ,actions ,! ,director may1 "u ?is subsection1 require ! ,,fha-- 7#a7 to cease & desi/ f any conduct or activity t-- 7,a7 ) respect to ! acc\nt = ! ,mutual ,mortgage ,insurance ,fund e/abli%$ pursuant to section #bef7;a77#a71 is describ$ 9 p>agraph 7#b7 or 7#c7 ( subsection 7a71 or t contributes to ! condition describ$ 9 subsection 7a77#a72 & 7,b7 ) respect to any o!r ,fund1 contributes to a failure to meet a capital res]ve requirem5t e/abli%$ pursuant to section #bei7;a7 or is likely to ?reat5 ! adequacy ( ! capital ( su* ,fund2 & 7#b7 to take corrective or rem$ial action1 includ+-- 7,a7 re/rict+ ! gr[? (1 or contract+1 any category ( assets or liabilities2 7,b7 r$uc+1 modify+1 or t]m9at+ any activity t ! ,director det]m9es creates excessive risk to ! ,,fha2 7,c7 t]m9at+ agreem5ts or contracts2 7,d7 engag+ or employ+ qualifi$ employees 7:o may be subject to approval by ! ,director at ! direction ( ! ,director72 or 7,e7 submitt+ to ! ,director = review & approval a detail$ & complete op]at+ plan4 7c7 ,reports ,if ! ,director is au?oriz$ "u subsection 7a7 ( ?is section or section #bei7;b7 to take action "u subsection 7b7 ( ?is section & det]m9es n to take any su* action1 ! ,director %all prep>e a report detail+ ! basis ( ! ,director's decision n to take su* action & %all1 )9 #cj days ( ! decision1 submit ! report to ! ,presid5t1 ! ,director ( ! ,(fice ( ,managem5t & ,budget1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates1 ! ,committee on ,bank+ & ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate4 7d7 ,capital re/oration plans ,a capital re/oration plan submitt$ pursuant to section #beg7;c71 #bei7;b71 or #bfj7;d77#c7 %all-- 7#a7 set =? a feasible plan = rais+ or re/or+ ! capital ( ! ,fund = :i* x is prep>$2 7#b7 specify ! level ( capital to be a*iev$ & ma9ta9$2 7#c7 be submitt$ to ! ,director )9 #de days f ! date ( notification1 or if ! ,director det]m9es t an ext5sion is necess>y1 )9 su* additional "t z ! ,director s det]m9es2 7#d7 describe ! actions t ! ,,fha %all take = su* ,fund to become classifi$ z adequately capitaliz$2 7#e7 e/abli% a s*$ule = complet+ ! actions set =? 9 ! plan2 & 7#f7 specify ! types & levels ( activities 7includ+ exi/+ & new bus9ess activities7 9 :i* ! ,,fha %all engage dur+ ! t]m ( ! plan4 #bei4 ,capital res]ve requirem5ts = o!r funds 7a7 ,requirem5ts ,! ,director %all e/abli% capital res]ve requirem5ts =-- 7#a7 ! ,g5]al ,insurance ,fund e/abli%$ "u section #eai ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agce;c72 7#b7 ! ,special ,risk ,insurance ,fund e/abli%$ "u section #bch7;b7 ( su* ,act 7#ab ,u4,s4,c4 #agaez-#c7;b772 7#c7 ! ,coop]ative ,managem5t ,h\s+ ,insurance ,fund e/abli%$ "u section #bac7k7 ( su* ,act 7#ab ,u4,s4,c4 #agae;e7k772 & 7#d7 ! ,rural ,h\s+ ,insurance ,fund e/abli%$ "u title ,v ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga71 or ! v>i\s acc\nts ( su* ,fund4 7b7 ,en=cem5t ,! ,director may en=ce compliance ) ! requirem5ts "u subsection 7a7 ( ?is section ) respect to a ,fund by tak+ action "u section #beh7;b7 or by requir+ submission ( a capital re/oration plan = su* ,fund meet+ ! requirem5ts ( section #beh7;d74 #bfj4 ,au?ority to e/abli% tempor>y capital ratios 9 cases ( nationwide c\nt]cyclical m>ket adju/m5t 7a7 ,au?ority2 det]m9ation ,! ,director may susp5d ! applicability ( ! capital ratio "u section #bef7;b7 = ! ,mutual ,mortgage ,insurance ,fund or any capital res]ve requirem5t e/abli%$ pursuant to section #bei = any ,fund specifi$ "u su* section & e/abli% a tempor>y alt]native capital ratio ) respect to su* ,fund = a specifi$ p]iod ( "t1 b only ^u a jo9t det]m9ation by ! ,director & ! ,*ief ,risk ,(fic] t-- 7#a7 available cr$it ?r\gh\t ! ,unit$ ,/ates or a significant portion ( ! ,unit$ ,/ates = ! pur*ase ( ! types ( resid5ces = :i* mortgages t obligations ( su* ,fund are made has contract$ significantly1 z measur$ by ! cr$it availability measure ( ! ,(fice ( ! ,comptroll] ( ! ,curr5cy2 7#b7 h\s+ prices ?r\gh\t ! ,unit$ ,/ates or a significant portion ( ! ,unit$ ,/ates h decl9$ significantly1 z measur$ by ! applicable h\s+ price index ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy2 or 7#c7 available cr$it = ! pur*ase ( h\s+ or su* o!r economic conditions exi/ suffici5t to evid5ce a significant contraction ( capital ?r\gh\t ! ,unit$ ,/ates or a significant portion ( ! ,unit$ ,/ates1 z measur$ by a metric id5tifi$ by ! ,director & ! ,*ief ,risk ,(fic] 9 a writt5 notice made publicly available1 & provid$ to ! ,congress1 9 advance ( su* det]m9ation4 7b7 ,conditions ( t]m9ation ,^u mak+ a det]m9ation "u subsection 7a71 ! ,director & ! ,*ief ,risk ,(fic] %all also id5tify measurable crit]ia = det]m9+ t ! conditions det]m9$ "u subsection 7a7 h ceas$ to exi/4 7c7 ,notice to ,congress ,^u mak+ a det]m9ation "u subsection 7a71 ! ,director & ! ,*ief ,risk ,(fic] %all provide writt5 notice to ! ,congress ( su* det]m9ation & ! specific measurable crit]ia id5tifi$ pursuant to subsection 7b74 7d7 ,effect ( tempor>y alt]native capital ratio ,dur+ any p]iod t a tempor>y alt]native capital ratio is 9 effect pursuant to subsection 7a7 ) respect to any ,fund-- 7#a7 9 ! case ( a tempor>y capital ratio = ! ,mutual ,mortgage ,insurance ,fund1 subsections 7a7 & 7c7 ( section #beg & section #beh %all n apply2 7#b7 su* tempor>y & alt]native capital classifications z ! ,director %all e/abli% %all be 9 effect ) respect to su* ,fund2 & 7#c7 ! ,director %all require ! ,,fha or ! ,secret>y ( ,agriculture 7z appropriate7 to submit & c>ry out a capital re/oration plan = su* ,fund meet+ ! requirem5ts "u section #beh7;d7 & may take actions "u section #beh7;b7 ) respect to su* ,fund only 9 accordance ) su* /&>ds relat+ to su* tempor>y & alt]native capital classifications = su* ,fund z ! ,director %all e/abli%4 7e7 ,t]m9ation ,any tempor>y alt]native capital ratio e/abli%$ pursuant to subsection 7a7 %all t]m9ate ^u ! e>li] (-- 7#a7 ! expiration ( ! #ah-mon? p]iod beg9n+ ^u ! date t notification "u subsection 7c7 is provid$ to ! ,congress ( ! det]m9ation "u subsection 7a72 or 7#b7 ! occurr5ce ( ! conditions id5tifi$ pursuant to subsection 7b74 7f7 ,multiple det]m9ations ,no?+ 9 ?is section may be con/ru$ to prev5t multiple or consecutive p]iods dur+ :i* tempor>y alt]native capital ratios are 9 effect pursuant to ?is section4 #bfa4 #g-ye> borr[] susp5sion = =eclosure 7a7 ,,fha 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ) respect to any mortgage on a #a- to #d-;family resid5tial prop]ty t is =eclos$ ^u1 dur+ ! #g-ye> p]iod beg9n+ ^u ! date ( su* =eclosure1 ! ,,fha may n newly insure1 "u any provision ( ?is title1 ! ,national ,h\s+ ,act1 or any ,,fha program1 any o!r mortgage "u :i* ! mortgagor is ! individual :o 0 ! mortgagor "u ! mortgage t 0 =eclos$ ^u4 7#b7 ,waiv] ,! ,,fha %all provide1 by regulation1 = ! ,,fha to waive ! applicability ( p>agraph 7#a7 ) respect to a mortgagor 9 cases 9 :i* h>d%ip circum/ances mat]ially contribut$ to ! default & =eclosure ( ! mortgage4 ,= purposes ( ?is subsection1 su* h>d%ip circum/ances may include divorce1 job or o!r income loss1 heal? problems1 dea? 9 ! family1 & su* o!r situations z ! ,,fha may prescribe4 7b7 ,rural h\s+ ,section #eje ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adge7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7c7 #g-,ye> borr[] susp5sion = =eclosure 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ) respect to any mortgage on a #a- to #d-;family resid5tial prop]ty t is =eclos$ ^u1 dur+ ! #g-ye> p]iod beg9n+ ^u ! date ( su* =eclosure1 ! ,secret>y may n newly make1 insure1 or gu>antee1 "u any provision ( ?is title1 any o!r loan "u :i* ! borr[] is individual :o 0 ! mortgagor "u ! mortgage t 0 =eclos$ ^u4 7#b7 ,waiv] ,! ,secret>y %all provide1 by regulation1 = waiv] ( ! applicability ( p>agraph 7#a7 ) respect to a borr[] 9 cases 9 :i* h>d%ip circum/ances mat]ially contribut$ to ! default & =eclosure ( ! mortgage4 ,= purposes ( ?is subsection1 su* h>d%ip circum/ances may include divorce1 job or o!r income loss1 heal? problems1 dea? 9 ! family1 & su* o!r situations z ! ,secret>y may prescribe4 4 7c7 ,regulations ,! ,,fha & ! ,secret>y ( ,agriculture %all jo9tly issue regulations requir$ "u subsection 7a7 ( ?is section & section #eje7;c7 ( ! ,h\s+ ,act ( #aidi1 z add$ by subsection 7b7 ( ?is section4 #bfb4 ,borr[] ineligibility ^u second =eclosure 7a7 ,,fha ,if any individual is ! mortgagor "u any two mortgages on #a- to #d-;family resid5tial prop]ties t h be5 =eclos$ ^u1 ! ,,fha may n newly insure1 "u any provision ( ?is title1 ! ,national ,h\s+ ,act1 or any ,,fha program1 any o!r mortgage "u :i* su* individual is ! mortgagor4 7b7 ,rural h\s+ ,section #eje ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adge71 z am5d$ by ! prec$+ provisions ( ?is title1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7d7 ,borr[] ineligibility ^u second =eclosure ,if any individual is ! mortgagor "u any two mortgages = #a- to #d-;family resid5tial prop]ties t h be5 =eclos$ ^u1 ! ,secret>y may n newly make1 insure1 or gu>antee1 "u any provision ( ?is title1 any o!r loan "u :i* su* individual is ! borr[]4 4 #bfc4 ,limitation on sell] concessions 7a7 ,,fha ,! ,,fha may n newly insure1 "u any provision ( ?is title1 ! ,national ,h\s+ ,act1 or any ,,fha program1 any mortgage on a #a- to #d-;family resid5tial prop]ty ) respect to :i* ! sell] ( ! prop]ty subject to su* mortgage 7or any ?ird p>ty or entity t is reimburs$ directly or indirectly by ! sell]7 contributes t[>d ! acquisition ( ! prop]ty by ! mortgagor any am\nt 9 excess ( #c p]c5t ( ! total clos+ co/s 7z det]m9$ by ! ,,fha7 9 connection ) su* acquisition4 7b7 ,rural h\s+ ,section #eja ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga71 z am5d$ by ! prec$+ provisions ( ?is title1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7n7 ,limitation on sell] concessions ,! ,secret>y may n newly make1 insure1 or gu>antee1 "u any provision ( ?is title1 any loan = a #a- to #d-;family resid5tial prop]ty ) respect to :i* ! sell] ( ! prop]ty = :i* ! loan is made 7or any ?ird p>ty or entity t is reimburs$ directly or indirectly by ! sell]7 contributes t[>d ! acquisition ( ! prop]ty by ! borr[] any am\nt 9 excess ( #c p]c5t ( ! total clos+ co/s 7z det]m9$ by ! ,secret>y7 9 connection ) su* acquisition4 4 #bfd4 ,l5d] repur*ase requirem5t 7a7 ,requirem5t ,! ,,fha may n newly insure1 "u any provision ( ?is title1 ! ,national ,h\s+ ,act1 or any ,,fha program1 any mortgage on a #a- to #d-;family resid5tial prop]ty unless ! mortgagee "u su* mortgage ent]s into su* b9d+ agreem5ts z ! ,,fha consid]s necess>y to ensure t1 if ! mortgagor is 9 default ) respect to ! mortgagor's obligation to make paym5ts "u ! mortgage = #fj or m consecutive days dur+ ! #bd-mon? p]iod beg9n+ ^u orig9ation ( ! mortgage1 ! mortgagee w1 ^u notice by ! ,,fha1 repur*ase su* mortgage 9 an am\nt equal to ! rema9+ pr9cipal obligation "u ! mortgage1 z det]m9$ 9 accordance ) guidel9es issu$ by ! ,,fha4 7b7 ,effective date ,?is section %all take effect ^u ! date ( ! enactm5t ( ?is ,act4 #bfe4 ,indemnification by mortgagees 7a7 ,9 g5]al ,if ! ,,fha det]m9es t at or be=e ! "t ( loan clos+ ! mortgagee knew1 or %\ld h kn[n bas$ on ! in=mation !n reasonably available to ! mortgagee1 ( a s]i\s & mat]ial violation ( ! requirem5ts e/abli%$ by ! ,,fha ) respect to a mortgage execut$ aft] ! date ( ! enactm5t ( ?is ,act by su* mortgagee approv$ by ! ,,fha "u ! direct endorsem5t program or insur$ by a mortgagee pursuant to ! delegation ( au?ority "u section #bef ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agaez-#ba7 su* t ! mortgage loan %\ld n h be5 approv$ & endors$ = insurance1 & ! ,,fha pays an insurance claim ) respect to ! mortgage )9 a reasonable p]iod specifi$ by ! ,,fha1 ! ,,fha may require ! mortgagee approv$ by ! ,,fha "u ! direct endorsem5t program or ! mortgagee delegat$ au?ority "u su* section #bef to indemnify ! ,,fha = ! loss1 or any portion !re(1 if ! violation 0 a mat]ially contribut+ factor to ! cause ( ! mortgage default4 7b7 ,fraud or mat]ial misrepres5tation ,if fraud or mat]ial misrepres5tation 0 involv$ 9 connection ) ! orig9ation or und]writ+ ( a mortgage execut$ aft] enactm5t by ! mortgagee & ! ,,fha det]m9es t at or be=e ! "t ( loan clos+ su* mortgagee knew or %\ld h kn[n1 bas$ on ! in=mation !n reasonably available to su* mortgagee1 ( ! fraud or mat]ial misrepres5tation su* t ! mortgage loan %\ld n h be5 approv$ & endors$ = insurance1 ! ,,fha %all require ! mortgagee approv$ by ! ,,fha "u ! direct endorsem5t program or ! mortgagee delegat$ au?ority "u su* section #bef to indemnify ! ,,fha = ! loss1 or any portion !re(1 if ! fraud or mat]ial misrepres5tation 0 a mat]ially contribut+ factor to ! cause ( ! mortgage default4 7c7 ,appeals process ,! ,,fha %all1 by regulation1 e/abli% an appeals process = mortgagees to appeal indemnification det]m9ations made pursuant to subsection 7a7 or 7b74 7d7 ,requirem5ts & proc$ures ,! ,,fha %all issue regulations e/abli%+ appropriate requirem5ts & proc$ures gov]n+ ! indemnification ( ! ,,fha by ! mortgagee1 includ+ public report+ on-- 7#a7 ! numb] ( loans t-- 7,a7 7 n orig9at$ or und]writt5 9 accordance ) ! requirem5ts e/abli%$ by ! ,,fha2 7,b7 involv$ fraud or mat]ial misrepres5tation 9 connection ) ! orig9ation or und]writ+ t 0 a mat]ial contribut+ factor to ! cause ( ! mortgage default2 & 7,c7 ! f9ancial impact on ! ,mutual ,mortgage ,insurance ,fund :5 indemnification is requir$4 7e7 ,quality control & assurance 7#a7 ,manual ,! ,,fha %all1 pursuant to its exi/+ regulatory au?ority1 issue & update annually a manual1 h&book1 or guide t collects all ( ! orig9ation & und]writ+ requirem5ts t a mortgagee mu/ foll[ to make resid5tial mortgage loans eligible = insurance by ! ,,fha :i* %all-- 7,a7 provide cle> & concise directions s t a mortgagee c reasonably "k :at is expect$ ( x2 7,b7 id5tify examples ( specific s]i\s & mat]ial violations t c\ld be ! basis = an indemnification dem& "u ?is section2 7,c7 apply nationally & be int]pret$ by ! ,,fha uni=mly ) respect to all mortgages endors$ = insurance2 & 7,d7 p]mit prospective *anges ) reasonable advance notice to mortgagees1 :i* su* *anges mu/ be incorporat$ into ! foll[+ ye>'s revis$ v]sion ( ! manual1 h&book1 or guide & may n provide = retroactive *anges to mortgages previ\sly endors$ = insurance4 7#b7 ,requirem5ts ,! ,,fha %all-- 7,a7 make prompt initial det]m9ations ( a mortgagee's pot5tial liability = ei!r indemnification "u ?is section or o!r adm9i/rative rem$ies or sanctions t may be available "u ! ,national ,h\s+ ,act or o!r applicable laws1 bas$ on ei!r self-reports by ! mortgagee or o!r f9d+s by ! ,,fha ?r\gh its exam9ation processes ( pot5tial s]i\s & mat]ial violations ( su* orig9ation & und]writ+ requirem5ts e/abli%$ "u p>agraph 7#a7 or o!r fraud & mat]ial misrepres5tations2 7,b7 promptly notify ! mortgagee ( su* initial det]m9ation & af=d ! l5d] ! opportunity to provide additional in=mation & analysis be=e a f9al det]m9ation is made2 & 7,c7 n pursue indemnification "u subsections 7a7 & 7b7 ) respect to ^? mortgages review$ "u ?is subsection unless an initial det]m9ation ( mortgagee liability is made & communicat$ to ! mortgagee )9 six mon?s ( ! ,,fha's receipt ( in=mation t is reasonably suffici5t to enable ! ,,fha to det]m9e initially t a s]i\s & mat]ial violation or fraud or mat]ial misrepres5tation may h occurr$4 7f7 ,effective date ,?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 ,dur+ ! transition p]iod "u section #bha1 any ref]5ce 9 ?is section to ! ,,fha %all be con/ru$ to ref] to ! ,secret>y to ! ext5t ! ,secret>y has n delegat$ au?ority "u ?is section to ! ,,fha pursuant to section #bhb7a74 #bff4 ,prohibitions relat+ to use ( p[] ( em95t doma9 7a7 ,,fha 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 nei!r ! ,secret>y nor ! ,,fha may newly insure1 "u any provision ( ?is title1 ! ,national ,h\s+ ,act1 or any ,,fha program1 any mortgage t is secur$ by a /ructure or dwell+ unit t is locat$ )9 a c\nty t conta9s any /ructure or dwell+ unit t secures or secur$ a resid5tial mortgage loan :i* mortgage loan 0 obta9$ by ! ,/ate dur+ ! prec$+ #abj mon?s by ex]cise ( ! p[] ( em95t doma94 7#b7 ,def9itions ,= purposes ( ?is p>agraph1 ! foll[+ def9itions %all apply3 7,a7 ,resid5tial mortgage loan ,! t]m resid5tial mortgage loan means a mortgage loan t is evid5c$ by a promissory note & secur$ by a mortgage1 de$ ( tru/1 or o!r security in/rum5t on a resid5tial /ructure or a dwell+ unit 9 a resid5tial /ructure4 ,su* t]m includes a fir/ mortgage or any subord9ate mortgage4 7,b7 ,/ate ,! t]m ,/ate includes ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 & any t]ritory or possession ( ! ,unit$ ,/ates1 & includes any ag5cy or political subdivision ( a ,/ate4 7b7 ,rural h\s+ ,section #eja ( ! ,h\s+ ,act ( #aidi 7#db ,u4,s4,c4 #adga71 z am5d$ by ! prec$+ provisions ( ?is title1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7o7 ,prohibition relat+ to use ( p[] ( em95t doma9 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 ! ,secret>y may n newly gu>antee1 make1 or insure "u ?is title any mortgage t is secur$ by a /ructure or dwell+ unit t is locat$ )9 a c\nty t conta9s any /ructure or dwell+ unit t secures or secur$ a resid5tial mortgage loan :i* mortgage loan 0 obta9$ by ! ,/ate dur+ ! prec$+ #abj mon?s by ex]cise ( ! p[] ( em95t doma94 7#b7 ,def9itions ,= purposes ( ?is subsection1 ! foll[+ def9itions %all apply3 7,a7 ,resid5tial mortgage loan ,! t]m resid5tial mortgage loan means a mortgage loan t is evid5c$ by a promissory note & secur$ by a mortgage1 de$ ( tru/1 or o!r security in/rum5t on a resid5tial /ructure or a dwell+ unit 9 a resid5tial /ructure4 ,su* t]m includes a fir/ mortgage or any subord9ate mortgage4 7,b7 ,/ate ,! t]m ,/ate has ! mean+ giv5 su* t]m 9 section #ejb7;h77#ab71 & includes any ag5cy or political subdivision ( a ,/ate4 4 7c7 ,effective date ,?is section & ! am5dm5t made by ?is section %all take effect ^u ! date ( ! enactm5t ( ?is ,act4 #bfg4 ,residual income requirem5t 7a7 ,9 g5]al ,! ,,fha may n newly insure1 "u any provision ( ?is title1 ! ,national ,h\s+ ,act1 or any ,,fha program1 any mortgage on a #a- to #d-;family resid5tial prop]ty unless ! mortgagor "u su* mortgage meets su* requirem5ts z ! ,,fha %all1 by regulation1 e/abli% to ensure t ! mortgagor has suffici5t residual income4 7b7 ,residual income ,= purposes ( ?is section1 ! t]m residual income means1 ) respect to a mortgagor1 ! net mon?ly income ( ! mortgagor1 z provid$ by regulation by ! ,,fha1 aft] tak+ into consid]ation-- 7#a7 any assets ( ! mortgagor o!r ?an ! prop]ty subject to su* mortgage2 & 7#b7 any mon?ly obligations ( ! mortgagor ) respect to mortgage paym5ts1 insurance paym5t1 & taxes = ! prop]ty subject to ! mortgage1 income & o!r taxes1 ma9t5ance1 & utility exp5ses = ! prop]ty1 *ild c>e exp5ses1 auto1 consum]1 & any o!r debt obligations1 alimony & *ild support exp5ses1 & su* o!r exp5ses z ! ,,fha may provide4 7c7 ,effective date ,?is section & ! am5dm5t made by ?is section %all take effect ^u ! date ( ! enactm5t ( ?is ,act4 #bfh4 ,effective date ,?is subtitle & ! am5dm5ts made by ?is subtitle 7except = sections #bfd1 #bfe1 #bff1 & #bfg1 & any am5dm5ts made by su* sections7 %all take effect ^u ! expiration ( ! transition p]iod "u section #bha4 ,d ,transition #bha4 ,transition p]iod 7a7 ,9 ,g5]al ,= purposes ( ?is subtitle1 ! t]m transition p]iod means ! p]iod t-- 7#a7 beg9s on ! date ( ! enactm5t ( ?is ,act2 & 7#b7 ends ^u ! e>li] (-- 7,a7 ! date t ! ,director publi%es notice 9 ! ,f$]al ,regi/] t ! ,director has det]m9$ t all ( ! requirem5ts "u subsection 7b7 h be5 complet$2 or 7,b7 ! expiration ( ! #e-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 7b7 ,requirem5ts = ,end+ ,transition ,p]iod ,! requirem5ts "u ?is subsection are ! foll[+3 7#a7 ,approval ( initial annual budget & bus9ess plan ,! ,,fha has submitt$ to ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy an initial annual budget & bus9ess plan & ! ,director has approv$ ! budget & plan4 7#b7 ,det]m9ation ( corporate capacity ,! ,director ( ! ,(fice ( ,managem5t & ,budget has det]m9$1 & notifi$ ! ,director1 t ! /aff1 sy/ems1 & adm9i/rative infra/ructure ( ! ,,fha are suffici5t to p]mit ! ,,fha to fully conduct ! op]ation ( its bus9ess4 #bhb4 ,au?ority dur+ transition p]iod ,dur+ ! transition p]iod ! ,,fha may-- 7#a7 c>ry out any p[] or responsibility ( ! ,secret>y relat+ to mortgage insurance programs "u ! ,national ,h\s+ ,act t ! ,secret>y delegates to ! ,,fha1 us+ ! /aff1 sy/ems1 & adm9i/rative infra/ructure t ! ,,fha engages or acquires dur+ ! transition p]iod1 or ! p]sonnel & o!r res\rces ( ! ,secret>y2 7#b7 incur any obligation consi/5t )-- 7,a7 ! c>ry+ out ( a p[] or responsibility delegat$ "u p>agraph 7#a72 or 7,b7 ! acquisition1 engagem5t1 or developm5t ( /aff1 sy/ems 7includ+ te*nology to enhance ! ability ( ! ,,fha to engage 9 ! bus9ess au?oriz$ by ! title71 & adm9i/rative /ructure2 & 7#c7 engage 9 any activity or und]take any responsibility 7n includ+ ent]+ into1 or mak+ any commitm5t to ent] into1 any contract ( insurance "u ?is title7 t ! ,,fha det]m9es to be consi/5t ) ! e/abli%m5t ( ! ,,fha4 #bhc4 ,advisory ,bo>d 7a7 ,e/abli%m5t ,! ,secret>y ( ,h\s+ & ,urban ,developm5t %all e/abli% an advisory bo>d to provide advice to ! ,bo>d ( ,directors ( ! ,,fha reg>d+ e/abli%+ & organiz+ ! ,,fha & creat+ ! bus9ess plan1 premium /ructure1 & product l9es ( ! ,,fha4 7b7 ,functions ,9 c>ry+ out its responsibilities "u subsection 7a7 ! advisory bo>d may-- 7#a7 obta9 guidance f p>ticipants 9 ! mortgage m>kets to be s]v$ by ! ,,fha2 7#b7 assess ! h\s+ & mortgage cr$it ne$s2 7#c7 obta9 in=mation conc]n+ s+le family h\s+ f9ance m>kets to assess h[ ! ,,fha c complem5t ! roles ( public & private p>ticipants 9 su* m>kets2 & 7#d7 consult ) ! relevant ,f$]al ag5cies g5]ally reg>d+ h[ ! ,,fha c improve ! deliv]y ( s+le family h\s+ cr$it enhancem5t to families1 communities1 & h>d-to-s]ve m>kets4 7c7 ,memb]%ip ,! advisory bo>d %all consi/ (-- 7#a7 ! ,assi/ant ,secret>y ( ,h\s+ & ,urban ,developm5t :o is ! ,f$]al ,h\s+ ,commission]2 7#b7 ! ,adm9i/rator ( ! ,rural ,h\s+ ,s]vice ( ! ,dep>tm5t ( ,agriculture2 7#c7 n less ?an #e individuals appo9t$ by ! ,secret>y :o are repres5tatives ( ! mortgage f9ance indu/ry2 & 7#d7 n less ?an #b individuals :o h exp]tise 9 af=dable h\s+ s]v+ l[- & mod]ate-income populations4 ,memb]s ( ! advisory bo>d %all s]ve at ! pleasure ( ! ,secret>y4 7d7 ,t]m9ation ,! advisory bo>d %all t]m9ate ^u ! expiration ( ! transition p]iod "u section #bha4 #bhd4 ,transf] ( ,,hud au?ority 7a7 ,transf] ,except z provid$ 9 subsections 7c7 & 7d71 effective ^u ! expiration ( ! transition p]iod1 ! functions (1 au?ority provid$ to1 & ! responsibilities ( ! ,secret>y ( ,h\s+ & ,urban ,developm5t & ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t "u ! foll[+ provisions ( law are transf]r$ to ! ,,fha3 7#a7 ,titles ,,ii & ,v ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agjg et seq41 #agce;a et seq474 7#b7 ,section #c ( ,public ,law #ii-bhi 7#ab ,u4,s4,c4 #agba note2 relat+ to e/imates ( use ( insur+ au?ority71 except t ?is p>agraph %all n t]m9ate or transf] any au?ority ( ! ,secret>y "u su* section relat+ to section #cjf7;g7 ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agba7;g774 7#c7 ,section #hja ( ! ,h\s+ ,act ( #aied 7#ab ,u4,s4,c4 #agja;j-#a2 relat+ to build]s w>ranties74 7#d7 ,section #dbd ( ! ,h\s+ & ,community ,developm5t ,act ( #aihg 7#ab ,u4,s4,c4 #agaez-#a;c2 relat+ to resid5tial wat] treatm5t74 7#e7 ,section #cbh ( ! ,cran/on-,gonzalez ,national ,af=dable ,h\s+ ,act 7#ab ,u4,s4,c4 #agac note2 relat+ to delegation ( process+74 7#f7 ,section #ajf ( ! ,en]gy ,policy ,act ( #aiib 7#ab ,u4,s4,c4 #agjaz-#af2 relat+ to en]gy effici5t mortgages pilot program74 7#g7 ,section #edb ( ! ,h\s+ & ,community ,developm5t ,act ( #aiib 7#ab ,u4,s4,c4 #agaez-#bb2 relat+ to multifamily mortgage cr$it programs74 7#h7 ,section #ajc7;h7 ( ! ,multifamily ,h\s+ ,prop]ty ,disposition ,re=m ,act ( #aiid 7#ab ,u4,s4,c4 #agaez-#a;a note2 relat+ to alt]native uses ( multifamily projects to prev5t default74 7b7 ,repeal ( ,assignm5t ,provisions ,effective ^u ! date ( ! enactm5t ( ?is ,act1 section #bjd7;a77#a77;,b7 ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agaj7;a77 is am5d$ by /rik+ ! la/ s5t5ce4 7c7 ,applicability ,! repeals "u subsections 7a7 & 7b7 %all n affect any legally b9d+ obligations ent]$ into pursuant to ! provisions repeal$ be=e ! applicable effective date "u su* subsections4 ,any mortgage insurance1 funds1 or activities subject1 be=e repeal1 to a provision ( law repeal$ by su* subsections %all cont9ue to be gov]n$ by ! provision z x exi/$ imm$iately be=e repeal1 except t ! ,,fha may ex]cise any au?ority "u su* provision o!rwise transf]r$ to ! ,,fha by ?is title4 7d7 ,ref]5ces ,aft] ! expiration ( ! transition p]iod1 any ref]5ce 9 ,f$]al law to ! ,secret>y ( ,h\s+ & ,urban ,developm5t1 9 connection ) any function ( ! ,secret>y transf]r$ "u subsection 7a7 or any o!r provision ( ?is subtitle1 %all be deem$ to be a ref]5ce to ! ,,fha4 #bhe4 ,w9d-up ( ,,hud affairs 7a7 ,aboli%m5t ( positions ,effective ^u ! expiration ( ! transition p]iod1 any (fices ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t responsible = functions transf]r$ pursuant to section #bhd7;a71 to ! ext5t ( su* functions1 & ! position ( ! ,f$]al ,h\s+ ,commission] 9 ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t1 are aboli%$4 7b7 ,disposition ( ,affairs ,dur+ ! transition p]iod1 ! ,secret>y1 solely = ! purpose ( w9d+ up ! affairs ( ! ,dep>tm5t relat+ to ! functions transf]r$ "u section #bhd-- 7#a7 %all manage ! employees ( ! ,dep>tm5t responsible = su* functions & provide = ! paym5t ( ! comp5sation & b5efits ( any su* employee :i* accrue be=e ! effective date ( ! transf] ( su* employee "u section #bhg2 & 7#b7 may take any o!r action necess>y = ! purpose ( w9d+ up ! affairs ( ! ,dep>tm5t relat+ to su* functions4 7c7 ,/atus ( ,employees ,be=e ,transf] ,! provisions ( & am5dm5ts made by ?is title & ! aboli%m5ts "u subsection 7a7 ( ?is section may n be con/ru$ to affect ! /atus ( any employee ( ! ,dep>tm5t z an employee ( an ag5cy ( ! ,unit$ ,/ates = purposes ( any o!r provision ( law be=e ! effective date ( ! transf] ( any su* employee "u section #bhg4 7d7 ,use ( ,prop]ty & ,s]vices 7#a7 ,prop]ty ,! ,,fha may use ! prop]ty ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t to p]=m functions :i* h be5 transf]r$ to ! ,,fha = su* "t z is reasonable to facilitate ! ord]ly transf] ( functions transf]r$ "u any o!r provision ( ?is title or any am5dm5t made by ?is title to any o!r provision ( law4 7#b7 ,ag5cy s]vices ,any ag5cy1 dep>tm5t1 or o!r in/rum5tality ( ! ,unit$ ,/ates1 & any successor to any su* ag5cy1 dep>tm5t1 or in/rum5tality1 :i* 0 provid+ support+ s]vices to ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t be=e ! expiration ( ! transition p]iod "u subsection 7a7 9 connection ) functions t are transf]r$ "u section #bhd to ! ,,fha %all-- 7,a7 cont9ue to provide su* s]vices1 on a reimbursable basis1 until ! transf] ( su* functions is complete2 & 7,b7 consult ) ! ,,fha to coord9ate & facilitate a prompt & reasonable transition4 7e7 ,cont9uation ( ,s]vices ,! ,,fha may use ! s]vices ( employees & o!r p]sonnel ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t relat+ to ! functions transf]r$ "u section #bhd1 on a reimbursable basis1 to p]=m functions :i* h be5 transf]r$ to ! ,,fha = su* "t z is reasonable to facilitate ! ord]ly transf] ( functions pursuant to any o!r provision ( ?is title or any am5dm5t made by ?is title to any o!r provision ( law4 7f7 ,sav+s ,provisions 7#a7 ,exi/+ rights1 duties1 & obligations n affect$ ,subsection 7a7 %all n affect ! validity ( any "r1 duty1 or obligation ( ! ,unit$ ,/ates1 ! ,secret>y ( ,h\s+ & ,urban ,developm5t1 or any o!r p]son1 :i*-- 7,a7 arises "u-- 7i7 ! ,national ,h\s+ ,act2 or 7ii7 any o!r provision ( law applicable ) respect to ! functions ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t transf]r$ "u section #bhd2 & 7,b7 exi/$ on ! day be=e ! date ( aboli%m5t "u subsection 7a74 7#b7 ,cont9uation ( suits ,no action or o!r proce$+ comm5c$ by or aga9/ ! ,secret>y ( ,h\s+ & ,urban ,developm5t 9 connection ) functions transf]r$ to ! ,,fha "u section #bhd %all abate by reason ( ! enactm5t ( ?is title1 except t ! ,,fha %all be sub/itut$ = ! ,secret>y z a p>ty to any su* action or proce$+4 #bhf4 ,cont9uation & coord9ation ( c]ta9 actions 7a7 ,9 g5]al ,all regulations1 ord]s1 & det]m9ations describ$ 9 subsection 7b7 %all rema9 9 effect accord+ to ! t]ms ( su* regulations1 ord]s1 & det]m9ations1 & %all be en=ceable by or aga9/ ! ,,fha1 until modifi$1 t]m9at$1 set aside1 or sup]s$$ 9 accordance ) applicable law by ! ,,fha1 z ! case may be1 any c\rt ( compet5t jurisdiction1 or op]ation ( law4 7b7 ,applicability ,a regulation1 ord]1 or det]m9ation is describ$ 9 ?is subsection if x-- 7#a7 0 issu$1 made1 prescrib$1 or all[$ to become effective by-- 7,a7 ! ,secret>y ( ,h\s+ & ,urban ,developm5t & relates to a function ( ! ,secret>y transf]r$ "u section #bhd2 or 7,b7 a c\rt ( compet5t jurisdiction1 & relates to functions transf]r$ "u section #bhd2 & 7#b7 is 9 effect ^u ! expiration ( ! transition p]iod4 #bhg4 ,transf] & rights ( ,,hud employees 7a7 ,transf] ,ea* employee ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t :o p]=ms functions transf]r$ "u section #bhd %all be transf]r$ to ! ,,fha = employm5t1 n lat] ?an ! date ( ! expiration ( ! transition p]iod1 & su* transf] %all be deem$ a transf] ( function = purposes ( section #cejc ( title #e1 ,unit$ ,/ates ,code4 7b7 ,gu>ante$ ,positions 7#a7 ,9 g5]al ,ea* employee transf]r$ "u subsection 7a7 %all be gu>ante$ a position ) ! same /atus1 t5ure1 grade1 & pay z ! position held by su* employee on ! day imm$iately prec$+ ! transf]4 7#b7 ,no involunt>y sep>ation or r$uction ,an employee transf]r$ "u subsection 7a7 hold+ a p]man5t position on ! day imm$iately prec$+ ! transf] may n be involunt>ily sep>at$ or r$uc$ 9 grade or comp5sation dur+ ! #ab-mon? p]iod beg9n+ on ! date ( transf]1 except = cause1 or1 9 ! case ( a tempor>y employee1 sep>at$ 9 accordance ) ! t]ms ( ! appo9tm5t ( ! employee4 7c7 ,appo9tm5t ,au?ority = ,except$ & ,s5ior ,executive ,s]vice ,employees 7#a7 ,9 g5]al ,9 ! case ( an employee occupy+ a position 9 ! except$ s]vice or ! ,s5ior ,executive ,s]vice1 any appo9tm5t au?ority e/abli%$ "u law or by regulations ( ! ,(fice ( ,p]sonnel ,managem5t = fill+ su* position %all be transf]r$1 subject to p>agraph 7#b74 7#b7 ,decl9e ( transf] ,! ,,fha may decl9e a transf] ( au?ority "u p>agraph 7#a7 to ! ext5t t su* au?ority relates to-- 7,a7 a position except$ f ! competitive s]vice because ( its confid5tial1 policymak+1 policy-det]m9+1 or policy-advocat+ "*2 or 7,b7 a nonc>e] position 9 ! ,s5ior ,executive ,s]vice 7)9 ! mean+ ( section #cacb7;a77#g7 ( title #e1 ,unit$ ,/ates ,code74 7d7 ,reorganization ,if ! ,,fha det]m9es1 aft] ! end ( ! #a-ye> p]iod beg9n+ on ! expiration ( ! transition p]iod1 t a reorganization ( ! comb9$ work=ce is requir$1 t reorganization %all be deem$ a major reorganization = purposes ( af=d+ affect$ employee retirem5t "u section #hccf7;d77#b7 or #hdad7;b77#a77;,b7 ( title #e1 ,unit$ ,/ates ,code4 7e7 ,employee b5efit programs 7#a7 ,9 g5]al ,any employee ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t accept+ employm5t ) ! ,,fha z a result ( a transf] "u subsection 7a7 may reta91 = #ab mon?s aft] ! date on :i* su* transf] occurs1 memb]%ip 9 any employee b5efit program ( ! ,,fha or ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t1 z applicable1 includ+ insurance1 to :i* su* employee belongs on ! date ( ! expiration ( ! transition p]iod1 if-- 7,a7 ! employee does n elect to give up ! b5efit or memb]%ip 9 ! program2 & 7,b7 ! b5efit or program is cont9u$ by ! ,,fha4 7#b7 ,co/ diff]5tial 7,a7 ,9 g5]al ,! diff]5ce 9 ! co/s betwe5 ! b5efits :i* w\ld h be5 provid$ by ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t & ^? provid$ by ?is section %all be paid by ! ,,fha4 7,b7 ,heal? insurance -,if any employee elects to give up memb]%ip 9 a heal? insurance program or ! heal? insurance program is n cont9u$ by ! ,,fha1 ! employee %all be p]mitt$ to select an alt]nate ,f$]al heal? insurance program n lat] ?an #cj days aft] ! date ( su* election or notice1 )\t reg>d to any o!r regul>ly s*$ul$ op5 season4 #bhh4 ,transf] ( prop]ty & facilities ,^u ! expiration ( ! transition p]iod1 all prop]ty ( ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t relat+ to ! functions transf]r$ "u section #bhd %all transf] to ! ,,fha4 #bhi4 ,effective date ,?is subtitle %all take effect on ! date ( ! enactm5t ( ?is ,act4 ,e ,relat$ am5dm5ts & provisions #bia4 ,,gnma au?ority ,title ,,iii ( ! ,national ,h\s+ ,act is am5d$-- 7#a7 9 section #cja7e7 7#ab ,u4,s4,c4 #agaf7e771 by ins]t+ aft] f$]ally own$ mortgage portfolios ! foll[+3 7includ+ any own$ by ! ,f$]al ,h\s+ ,adm9i/ration72 7#b7 9 section #cjb 7#ab ,u4,s4,c4 #agag7-- 7,a7 9 subsection 7b77#a71 by ins]t+ 1 ! ,,fha ,re=m & ,mod]nization ,act ( #bjac1 aft] ,national ,h\s+ ,act ea* place su* t]m appe>s2 & 7,b7 9 subsection 7c77#b71 by ins]t+ aft] subp>agraph 7,f7 ! foll[+ new subp>agraph3 7,g7 ,! ,f$]al ,h\s+ ,adm9i/ration4 2 & 7#c7 9 section #cjf7;g7 7#ab ,u4,s4,c4 #agba7;g77-- 7,a7 9 ! clause 7ii7 ( ! fir/ s5t5ce ( p>agraph 7#a71 by ins]t+ or ! ,,fha ,re=m & ,mod]nization ,act ( #bjac be=e 1 or :i* are insur$2 & 7,b7 9 p>agraph 7#c77;,a71 by ins]t+ "u ! ,,fha ,re=m & ,mod]nization ,act ( #bjac or are insur$ aft] ,f$]al ,h\s+ ,adm9i/ration4 #bib4 ,repeal ( c]ta9 ,,fha programs 7a7 ,repeals ,effective ^u ! expiration ( ! #b-ye> p]iod t beg9s ^u ! date ( ! enactm5t ( ?is ,act1 ! foll[+ sections are repeal$3 7#a7 ,home equity conv]sion mortgage program ,section #bee ( ! ,national ,h\s+ ,act 7#ab ,u4,s4,c4 #agaez-#bj74 7#b7 ,mortgage insurance = hospitals ,section #bdb 7#ab ,u4,s4,c4 #agaez-#g74 7b7 ,con=m+ am5dm5ts 7#a7 ,! p5ultimate s5t5ce ( section #bab7;a7 7#ab ,u4,s4,c4 #agae;c7a77 is am5d$ by ins]t+ aft] section #bdb ea* place su* t]m appe>s ! foll[+3 7z su* section 0 9 effect imm$iately be=e ! effective date "u section #bib7;a7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac74 7#b7 ,section #bbc 7#ab ,u4,s4,c4 #agaen7 is am5d$-- 7,a7 9 subsection 7a77#g71 9 ! matt] prec$+ subp>agraph 7,a71 by ins]t+ be=e ! fir/ comma ! foll[+3 b n includ+ a mortgage insur$ "u section #bdb 7z su* section 0 9 effect imm$iately be=e ! effective date "u section #bib7;a7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac72 7,b7 9 subsection 7d77#b77;,a7-- 7i7 9 clause 7i7 by /rik+ & at ! end2 & 7ii7 by ins]t+ be=e ! semicolon at ! end ! foll[+3 & 7iii7 %all n be insur$ "u section #bdb 7z su* section 0 9 effect imm$iately be=e ! effective date "u section #bib7;a7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac72 & 7,c7 9 subsection 7f7-- 7i7 9 p>agraph 7#a7-- 7,i7 by /rik+ exi/+ hospital 7or2 & 7,,ii7 by /rik+ !re(7 & ins]t+ !re(2 & 7ii7 9 p>agraph 7#d7-- 7,i7 9 ! matt] prec$+ subp>agraph 7,a71 by /rik+ exi/+ hospital 7or2 7,,ii7 9 ! matt] prec$+ subp>agraph 7,a71 by /rik+ !re(7 & ins]t+ !re(12 7,,iii7 9 subp>agraphs 7,a71 7,b71 & 7,c7-- 7aa7 by /rik+ exi/+ hospital 7or ea* place su* t]m appe>s2 & 7bb7 by /rik+ !re(7 ea* place su* t]m appe>s & ins]t+ !re(2 & 7,,iv7 9 subp>agraph 7,d71 by /rik+ or ( section #bdb 7= ! exi/+ hospital propos$ to be ref9anc$74 7#c7 ,section #eda7;a7 7#ab ,u4,s4,c4 #agce;f-#ai7;a77 is am5d$ by ins]t+ aft] section #bdb ( ?is ,act ! foll[+3 1 z su* section 0 9 effect imm$iately be=e ! effective date "u section #bib7;a7 ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac4 7c7 ,sav+s ,provisions 7#a7 ,effect ( repeals ,! repeals "u subsection 7a7 %all n affect any legally b9d+ obligations ent]$ be=e ! effective date ( su* repeals4 7#b7 ,insurance au?ority ,not)/&+ ! repeals "u subsection 7a71 ! ,secret>y 7or ! ,,fha1 pursuant to subtitle ,d ( ?is title7 may insure any mortgage = :i* a commitm5t to insure "u section #bdb or #bee ( ! ,national ,h\s+ ,act 0 made be=e ! expiration ( ! p]iod ref]r$ to 9 subsection 7a74 ,any su* mortgage insur$ "u su* section #bdb or #bee %all be subject to ! t]ms ( su* section z 9 effect imm$iately be=e ! expiration ( su* p]iod4 7#c7 ,sav+s provision ,any funds or activities subject1 be=e ! effective date ( ! repeals "u subsection 7a7 ( ?is section1 to section #bdb or #bee ( ! ,national ,h\s+ ,act %all cont9ue to be gov]n$ by su* sections z 9 effect imm$iately be=e su* effective date4 #bic4 ,con=m+ am5dm5ts 7a7 ,p5alties = equity skimm+ ,p>agraph 7#a7 ( section #iab ( ! ,h\s+ & ,urban ,developm5t ,act ( #aigj 7#ab ,u4,s4,c4 #agji-b7a77 is am5d$ by ins]t+ or ,f$]al ,h\s+ ,adm9i/ration aft] ,h\s+ & ,urban ,developm5t4 7b7 ,fraudul5tly misappropriat$ mortgage proce$s ,section #hai ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#ab ,u4,s4,c4 #agjal-#a7 is am5d$-- 7#a7 by ins]t+ or ! ,f$]al ,h\s+ ,adm9i/ration aft] ,secret>y ( ,h\s+ & ,urban ,developm5t2 & 7#b7 by ins]t+ or su* ,adm9i/ration1 z appropriate1 be=e has reason4 7c7 ,unau?oriz$ use ( multifamily h\s+ assets & income ,section #dba ( ! ,h\s+ & ,community ,developm5t ,act ( #aihg 7#ab ,u4,s4,c4 #agaez-#d;a7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9 p>agraph 7#a7-- 7i7 by ins]t+ or ! ,,fha1 z applicable1 aft] ,secret>y'72 7ii7 by ins]t+ or by ! ,,fha pursuant to ! ,,fha ,re=m & ,mod]nization ,act ( #bjac aft] ,national ,h\s+ ,act2 & 7iii7 9 ! la/ s5t5ce1 by ins]t+ or ! ,,fha aft] ,secret>y ea* place su* t]m appe>s2 7,b7 9 p>agraph 7#b71 by ins]t+ or ! ,,fha ,re=m & ,mod]nization ,act ( #bjac be=e ! fir/ comma2 & 7#b7 9 subsections 7b7 ?r\gh 7e7-- 7,a7 by ins]t+ or ! ,,fha1 z applicable1 aft] ,secret>y1 ea* place su* t]m appe>s2 & 7,b7 by ins]t+ or ! ,,fha1 z applicable1 aft] ,secret>y ea* place su* t]m appe>s 7except ! p5ultimate occurr5ce 9 subsection 7c774 7d7 ,s+le family mortgage =eclosure ,! ,s+le ,family ,mortgage ,=eclosure ,act ( #aiid 7#ab ,u4,s4,c4 #cgea et seq47 is am5d$-- 7#a7 9 section #hjb7;b77#a7 7#ab ,u4,s4,c4 #cgea7;b77#a771 by ins]t+ or by ! ,,fha pursuant to ! ,,fha ,re=m & ,mod]nization ,act ( #bjac be=e ! semicolon2 7#b7 9 section #hjc7aj77;,a7 7#ab ,u4,s4,c4 #cgeb7aj77;,a77-- 7,a7 9 subp>agraph 7,a71 by /rik+ or at ! end2 7,b7 by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c72 & 7,c7 by ins]t+ aft] subp>agraph 7,a7 ! foll[+ new subp>agraph3 7,b7 is held by ! ,,fha pursuant to ! ,,fha ,re=m & ,mod]nization ,act ( #bjac2 or 2 & 7#c7 by add+ at ! end ! foll[+ new section3 #hbj4 ,au?ority ( ,,fha ,aft] ! expiration ( ! transition p]iod "u section #bha ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac1 any ref]5ce 9 sections #hjd ?r\gh #hai ( ?is ,act to ! ,secret>y %all be consid]$ to also ref] to ! ,,fha 7z e/abli%$ pursuant to subtitle ,a ( su* ,act71 b only ) respect to s+le family mortgages describ$ 9 section #hjc7aj77;,b74 4 7e7 ,multifamily mortgage =eclosure ,! ,multifamily ,mortgage ,=eclosure ,act ( #aiha 7#ab ,u4,s4,c4 #cgja et seq47 is am5d$-- 7#a7 9 section #cfc7b7 7#ab ,u4,s4,c4 #cgjb7b771 by add+ aft] & bel[ subp>agraph 7,e7 ! foll[+3 ,su* t]m includes a mortgage on a prop]ty consi/+ ( #e or m dwell+ units t is held by ! ,,fha pursuant to ! ,,fha ,re=m & ,mod]nization ,act ( #bjac4 4 7#b7 by add+ at ! end ! foll[+ new section3 #cfi;,j4 ,au?ority ( ,,fha ,aft] ! expiration ( ! transition p]iod "u section #bha ( ! ,,fha ,re=m & ,mod]nization ,act ( #bjac1 any ref]5ce 9 sections #cfd ?r\gh #cfi;,i ( ?is ,act to ! ,secret>y %all be consid]$ to also ref] to ! ,,fha 7z e/abli%$ pursuant to subtitle ,a ( su* ,act71 b only ) respect to multifamily mortgages describ$ 9 ! la/ s5t5ce ( section #cfc7b74 4 #bid4 ,rule ( con/ruction ,not)/&+ any o!r evid5ce ( ! int5t ( ! ,congress1 x is h]eby decl>$ to be ! int5t ( ,congress t ! provisions ( ?is title %all be con/ru$ broadly to a*ieve ! purposes ( ! title1 & ! provisions ( any o!r ,act t mu/ be con/ru$ ) any provision ( ?is title %all simil>ly be con/ru$ to a*ieve ! purposes ( ?is title to ! ext5t reasonably possible4 ,?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 #bie4 ,effective date ,! am5dm5ts made by ?is subtitle %all be made1 & %all apply beg9n+ on1 ! expiration ( ! transition p]iod "u section #bha4 ,,iii ,build+ a ,new ,m>ket ,/ructure ,a ,national ,mortgage ,m>ket ,utility #cja4 ,%ort title ,?is subtitle may be cit$ z ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac4 #cjb4 ,f9d+s & purposes 7a7 ,f9d+s ,! ,congress f9ds t-- 7#a7 ! liquidity & effici5cy ( ! national h\s+ f9ance m>ket is enhanc$ by a robu/ second>y m>ket = resid5tial mortgage loans1 includ+ securities back$ by resid5tial mortgage loans2 7#b7 ! f9ancial crisis t began 9 #bjjg reveal$ weaknesses 9 ! m>ket infra/ructure relat$ to resid5tial mortgage-back$ securities1 includ+-- 7,a7 weaknesses 9 /&>ds-- 7i7 = und]writ+ & s]vic+ resid5tial mortgage loans t may be collat]al = mortgage-back$ securities2 & 7ii7 = issu]s & tru/ees ( su* securities2 7,b7 weaknesses 9 ! mann] ( record+ & regi/]+ own]%ip & security int]e/s 9 resid5tial mortgage loans t back$ pools ( securities2 & 7,c7 weaknesses 9 ! availability ( in=mation to assess p]=mance ( pools2 7#c7 weaknesses reveal$ 9 ! f9ancial crisis creat$ unc]ta9ty & imp$$ timely & successful resolution ( tr\bl$ resid5tial mortgage loans1 & h imp$$ ! return ( private capital to ! m>ket = securities back$ by resid5tial mortgage loans 9 ! abs5ce ( a ,f$]al gu>antee ( timely paym5t ( pr9cipal & int]e/ to inve/ors2 & 7#d7 improv$ /&>ds & in=mation availability & a national sy/em = regi/]+ mortgage-relat$ docum5ts1 includ+ notes1 mortgages & de$s ( tru/1 & own]%ip & security int]e/s e/abli%$ !re91 ) /&>d proc$ures = demon/rat+ ! "r to act ) reg>d to su* notes or o!r regi/]$ data1 w\ld assi/ 9 address+ ^! weaknesses4 7b7 ,purposes ,! purposes ( ! national mortgage m>ket utility creat$ by ?is title are-- 7#a7 to enhance effici5cy1 liquidity1 & security 9 ! second>y m>ket = resid5tial mortgages1 includ+ mortgage-back$ securities2 7#b7 to e/abli% /&>ds relat$ to orig9at+ & s]vic+ eligible collat]al & = issu]s & tru/ees ( qualifi$ securities1 :i* w\ld be exempt f ! ,securities ,act ( #aicc2 7#c7 to improve uni=mity1 quality & accessibility ( in=mation relat$ to ! p]=mance ( resid5tial mortgage loans2 7#d7 to op]ate a common securitization plat=m t c\ld be available to issu]s ( resid5tial mortgage-back$ securities2 7#e7 to fo/] ! use & uni=mity ( electronic me?ods = ! creation1 au!ntication1 transmission1 /orage1 & availability ( mat]ials relat+ to mortgages2 7#f7 to provide a c5tral repository = notes1 mortgages1 & o!r mortgage-relat$ in=mation1 & address problems t c arise :5 pap] notes _c be produc$1 due to loss or de/ruction z a result ( natural disa/] or o!r causes2 & 7#g7 to provide a uni=m proc$ure = demon/rat+ ! "r to act ) reg>d to su* notes or o!r regi/]$ data = all actions 9 any ,/ate or ,f$]al proce$+1 judicial or nonjudicial1 involv+ su* notes or o!r data4 #cjc4 ,def9itions ,= purposes ( ?is subtitle1 ! foll[+ def9itions %all apply3 7#a7 ,affiliate ,) respect to ! ,utility1 ! t]m affiliate means any entity t controls1 is controll$ by1 or is "u common control )1 ! ,utility4 7#b7 ,ag5cy ,! t]m ,ag5cy means ! ,f$]al ,h\s+ ,f9ance ,ag5cy4 7#c7 ,depositor ,! t]m depositor means-- 7,a7 any p]son au?oriz$ to submit docum5ts or data = regi/ration ) ! ,repository2 & 7,b7 any p]son qualifi$ pursuant to section #cca 7relat+ to organization & op]ation ( ! ,repository7 to in=m ! ,repository (-- 7i7 newly id5tifi$ int]e/ hold]s1 :e!r ?r\gh creation1 assignm5t1 or transf]2 or 7ii7 *anges to int]e/s ( exi/+ hold]s1 includ+ ?r\gh modification1 am5dm5t1 or re/atem5t (1 or dis*>ge relat$ to1 any regi/]$ mortgage-relat$ docum5t4 7#d7 ,director ,! t]m ,director means ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy4 7#e7 ,eligible collat]al ,! t]m eligible collat]al means a resid5tial mortgage loan t meets any /&>d = mortgage classification e/abli%$ pursuant to section #cbb 7relat+ to /&>ds = qualifi$ securities74 7#f7 ,ent]prise ,! t]m ent]prise means-- 7,a7 ! ,f$]al ,national ,mortgage ,association & any affiliate !re(1 & 7,b7 ! ,f$]al ,home ,loan ,mortgage ,corporation & any affiliate !re(4 7#g7 ,mortgage-relat$ docum5t ,! t]m mortgage-relat$ docum5t means any docum5t or o!r in=mation or data relat$ to ! use ( resid5tial real e/ate z security = a loan1 includ+ docum5ts e/abli%+ an obligation to repay a loan secur$ by resid5tial real e/ate1 e/abli%+ a security int]e/ 9 real e/ate1 e/abli%+ ! value ( ! real e/ate at ! "t ! security int]e/ is creat$1 & insur+ cle> title to resid5tial real e/ate pl$g$ z security1 or z ! ,director by regulation may def9e4 ,su* docum5ts may include electronic docum5ts4 7#h7 ,organiz] ,! t]m organiz] means ! p]son or entity t e/abli%es ! ,utility4 7#i7 ,p>ticipant ,! t]m p>ticipant means any p]son au?oriz$ to use data ma9ta9$ or creat$ by ! ,repository t is n o!rwise available to ! public4 7#aj7 ,plat=m ,! t]m ,plat=m means ! securitization infra/ructure ann\nc$ by ! ,f$]al ,h\s+ ,f9ance ,ag5cy on ,octob] #d1 #bjab1 & z develop$ by an ent]prise or ! ent]prises 9 cons]vator%ip1 "u au?ority ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy pursuant to ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib4 7#aa7 ,repository ,! t]m ,repository means ! national mortgage data repository organiz$ "u section #cca4 7#ab7 ,utility ,! t]m ,utility means ! national mortgage m>ket utility e/abli%$ "u section #caa4 7#ac7 ,utility-affiliat$ p>ty ,! t]m utility-affiliat$ p>ty means-- 7,a7 any director1 (fic]1 employee or controll+ /ockhold] (1 or ag5t =1 ! ,utility2 7,b7 any %>ehold]1 affiliate1 consultant1 or jo9t v5ture p>tn] ( ! ,utility1 & any o!r p]son1 z det]m9$ by ! ,director 7by regulation or on a case-by-case basis7 t p>ticipates 9 ! conduct ( ! affairs ( ! ,utility2 7,c7 any indep5d5t contractor ( ! ,utility 7includ+ any attorney1 apprais] or acc\ntant7 if-- 7i7 ! indep5d5t contractor kn[+ly or recklessly p>ticipates 9 any violation ( law or regulation1 any brea* ( fiduci>y duty or any unsafe or uns\nd practice2 & 7ii7 su* violation1 brea* or practice caus$1 or is likely to cause1 m ?an a m9imal f9ancial loss to1 or a significant adv]se effect on1 ! ,utility4 #a ,e/abli%m5t & au?ority ( ! ,utility #caa4 ,e/abli%m5t 7a7 ,au?ority ( ,director ,"u su* regulations z ! ,director may prescribe1 ! ,director %all provide = ! organization1 incorporation1 exam9ation1 op]ation1 & regulation ( a national mortgage m>ket utility 7,utility71 & issuance ( a *>t] = su* ,utility4 ,! ,utility %all be organiz$1 op]at$1 & manag$ z a n-=-pr(it entity4 7b7 ,=mation ( ,utility2 application 7#a7 ,=mation ,subject to ! t]ms ( ?is subtitle & any regulations issu$ by ! ,director1 a p]son or entity may file an application ) ! ,director to e/abli% ! ,utility4 ,! ,utility may be *>t]$ z a corporation1 mutual association1 p>tn]%ip1 limit$ liability corporation1 coop]ative1 or any o!r organizational =m t ! applicant may deem appropriate4 7#b7 ,cont5ts ( application ,an application = e/abli%m5t ( ! ,utility %all include-- 7,a7 ! propos$ articles ( association2 7,b7 a /atem5t ( ! g5]al object & purpose ( ! ,utility1 consi/5t ) ! provisions ( ?is subtitle2 7,c7 ! propos$ capitalization & bus9ess plan = ! ,utility2 7,d7 ! propos$ ,/ate ^: law w\ld gov]n1 by election ( ! applicant1 ! op]ation ( ! ,utility to ! ext5t n o!rwise cov]$ by ?is subtitle2 7,e7 in=mation on ! f9ancial res\rces ( ! applicant2 7,f7 a /atem5t ( ! relevant h\s+ f9ance exp]i5ce ( ! applicant2 7,g7 id5tification ( ! propos$ s5ior manag]s ( ! ,utility1 & ! relevant exp]i5ce ( su* individuals2 & 7,h7 any o!r in=mation ! ,director det]m9es to be necess>y to evaluate ! backgr\nd1 exp]i5ce1 & integrity ( ! applicant & ! propos$ s5ior manag]s1 or in=mation o!rwise relevant to det]m9e ! likely success ( ! propos$ ,utility4 7c7 ,issuance ( *>t] & *>t]+ crit]ia 7#a7 ,*>t] ,n lat] ?an ! end ( ! #b-ye> p]iod foll[+ ! date ( ! enactm5t ( ?is ,act1 ! ,director %all issue a *>t] = ! ,utility to ! applicant t ! ,director det]m9es1 9 ! ,director's sole discretion1 has ! manag]ial1 f9ancial1 & op]ational res\rces to succe$1 consi/5t ) ! purposes ( ?is subtitle4 ,at ! discretion ( ! ,director1 ! *>t] may require ! ,utility to obta9 specific approval f ! ,director be=e comm5c+ any bus9ess op]ation1 includ+ op]ations relat$ to ! ,plat=m or ! ,repository1 :i* approval %all be provid$ :5 ! ,director det]m9es1 9 ! ,director's sole discretion1 t ! ,utility demon/rates appropriate op]ational1 manag]ial1 & gov]nance capability ) reg>d to su* op]ation1 includ+ successful completion ( te/+ & transition p]iods4 7#b7 ,*>t]+ crit]ia ,9 mak+ a det]m9ation "u p>agraph 7#a71 ! ,director %all consid] ! compet5ce1 exp]i5ce1 & integrity ( ! applicant & propos$ s5ior manag]s ( ! ,utility1 & ! f9ancial & op]ational res\rces & future prospects ( ! ,utility4 ,! ,director may n issue a *>t] if ! applicant fails to-- 7,a7 comply ) all applicable =mation requirem5ts2 7,b7 provide all in=mation reque/$ by ! ,director2 7,c7 demon/rate ! compet5ce1 exp]i5ce1 & integrity necess>y to op]ate ! ,utility 9 a safe & s\nd mann]2 7,d7 demon/rate suffici5t f9ancial res\rces necess>y to op]ate ! ,utility 9 a safe & s\nd mann]2 7,e7 provide ! ,director ) assurances t x w op]ate & ma9ta9 ! ,plat=m 9 an op5-access mann] t does n discrim9ate aga9/ eligible loan orig9ators1 aggregators1 or qualifi$ issu]s2 or 7,f7 provide ! ,director ) assurances t ! ,utility w make available to ! ,director1 on an on-go+ basis1 su* in=mation on ! op]ation & activities ( ! ,utility1 or any affiliate ( ! ,utility1 t ! ,director deems necess>y to ensure ! safe & s\nd op]ation ( ! ,utility & to en=ce compliance ) ?is subtitle4 7#c7 ,explanation ,= ,d5ial ,)9 #cj days ( d5y+ any application = ! issuance ( a *>t] "u ?is section1 ! ,director %all provide ! applicant ) a writt5 explanation ( ! basis = ! d5ial4 7d7 ,au?ority ,to ,susp5d 7#a7 ,9 g5]al ,! au?ority ( ! ,director %all include ! au?ority to susp5d ! *>t] ( ! ,utility1 if ! ,director det]m9es1 9 ! ,director's discretion1 t-- 7,a7 ! organiz]s h fail$ to make adequate progress 9 e/abli%+ ! ,utility or any bus9ess op]ation2 7,b7 ! organiz]s engag$ 9 wa/e ( appropriat$ funds made available = e/abli%m5t ( ! ,repository2 or 7,c7 su* susp5sion is necess>y = any o!r reason relat$ to safe & s\nd op]ation ( ! ,utility4 7#b7 ,rulemak+ ,! ,director %all issue regulations to address susp5sion ( ! *>t]1 includ+ a process = rem$iation4 7e7 ,/atus 7#a7 ,n a ,f$]al ,gov]nm5t in/rum5tality ,! ,utility is n1 & %all n be deem$ to be1 a dep>tm5t1 ag5cy1 or in/rum5tality ( ! ,unit$ ,/ates ,gov]nm5t & %all n be subject to title #e or #ca ( ! ,unit$ ,/ates ,code4 7#b7 ,sup]vision ,not)/&+ any o!r provision ( law1 ! ,utility %all be subject to ! exclusive sup]vision & regulation by ! ,ag5cy1 & %all n be subject to sup]vision or regulation by any o!r ,f$]al dep>tm5t or ag5cy or by any ,/ate4 ,! ,utility is au?oriz$ to conduct its bus9ess )\t reg>d to any qualification or simil> /atute 9 any ,/ate4 7#c7 ,exemption f taxation ,! ,utility %all be exempt f all taxation impos$ by ! ,unit$ ,/ates1 any t]ritory1 dep5d5cy1 or possession ( ! ,unit$ ,/ates or any ,/ate1 c\nty1 municipality1 or local tax+ au?ority1 except t any real prop]ty ( ! ,repository %all be subject to ,/ate1 t]ritorial1 c\nty1 municipal1 or local taxation to ! same ext5t accord+ to its value z o!r real prop]ty4 7f7 ,directors ,! ,utility %all be gov]n$ by a bo>d ( directors1 :i* %all consi/ ( a numb] ( directors det]m9$ by ! ,director to meet ! ne$s ( ! ,utility1 ( :i*-- 7#a7 n less ?an two memb]s %all be f l>g] f9ancial in/itutions2 7#b7 n less ?an two memb]s %all be f small] f9ancial in/itutions2 7#c7 n less ?an two memb]s %all h exp]tise 9 resid5tial mortgage securitizations1 7#d7 n less ?an two memb]s %all h exp]tise 9 legal & electronic docum5tation & sy/ems2 & 7#e7 su* o!r memb]s z ! ,director may provide1 :o %all h su* qualifications z ! ,director may e/abli% 9 ! *>t] or by regulation to meet ! requirem5ts = indep5d5ce & any provisions ( applicable ,/ate law4 7g7 ,reports to ,congress ,comm5c+ ) ! fir/ annual report ( ! ,director foll[+ ! date ( ! enactm5t ( ?is ,act1 ! annual report ( ! ,director "u section #acai;,b ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #deba7 %all include a description ( ! ,ag5cy's activities ) reg>d to organization1 incorporation1 exam9ation1 op]ation1 & regulation ( ! ,utility4 #cab4 ,g5]al p[]s2 au?oriz$ & prohibit$ activities 7a7 ,g5]al ,p[]s ,! ,utility may-- 7#a7 adopt & use a corporate seal2 7#b7 det]m9e a ,/ate ^: law w gov]n ! corporate bus9ess activities ( ! ,utility2 7#c7 adopt1 am5d1 & repeal by-laws2 7#d7 sue or be su$1 subject to section #ccd 7relat+ to judicial review72 7#e7 make contracts1 incur liabilities1 borr[ money1 & issue notes1 bonds1 or o!r obligations2 7#f7 pur*ase1 receive1 hold1 & use real & p]sonal prop]ty & o!r assets necess>y = ! conduct ( its op]ations2 7#g7 elect or appo9t directors1 (fic]s1 employees & ag5ts1 subject to section #caa7;f72 & 7#h7 ^u receipt ( ! ,director's prior writt5 approval1 e/abli% subsidi>ies or affiliates t %all be subject to ! same rights1 duties & responsibilities z ! ,utility4 7b7 ,au?oriz$ activities ,9 addition to ! g5]al p[]s "u subsection 7a71 ! ,utility %all-- 7#a7 develop /&>ds relat$ to orig9at+1 s]vic+1 pool+1 & securitiz+ resid5tial mortgage loans 9 accordance ) "p #b2 7#b7 op]ate & ma9ta9 ! ,plat=m & e/abli% fees = use ( ! ,plat=m2 7#c7 e/abli% ! ,repository & e/abli% fees = regi/ration ( mortgage-relat$ docum5ts & ma9t5ance & use ( data ( ! ,repository1 9 accordance ) "p #c2 7#d7 p]=m any o!r s]vice or engage 9 any o!r activity t ! ,director det]m9es1 by regulation or ord]1 to be incid5tal to ! activities enum]at$ 9 ?is subsection2 & 7#e7 e/abli% fees = ! provision ( o!r relat$ or incid5tal s]vices n inconsi/5t ) ! purposes ( ?is subtitle4 7c7 ,prohibit$ activities ,! ,utility %all n-- 7#a7 orig9ate1 s]vice1 insure1 or gu>antee any resid5tial mortgage or o!r f9ancial in/rum5t t is associat$ ) a resid5tial mortgage2 7#b7 gu>antee timely paym5t ( pr9cipal or int]e/ on any mortgage-relat$ security2 7#c7 adopt access rules or fees = ! ,plat=m ! effect ( :i* is to discrim9ate aga9/ eligible loan orig9ators1 aggregators1 or qualifi$ issu]s bas$ on size1 composition1 bus9ess l9e1 or loan volume2 or 7#d7 p]=m any s]vice or engage 9 any activity o!r ?an ^? au?oriz$ "u ?is subtitle1 unless su* activity has be5 det]m9$ by ! ,director to be incid5tal to an au?oriz$ activity4 #cac4 ,transf] ( own]%ip ( ,plat=m 7a7 ,valuation ,n lat] ?an ! end ( ! #f-mon? p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,director %all det]m9e a me?od = recov]+ ! co/ to ea* ent]prise ( develop+ ! ,plat=m1 9 consultation ) ,treasury1 & agree on a valuation ( ! ,plat=m ^u transf] to ! ,utility4 7b7 ,transf] ,n lat] ?an ! end ( ! #a-ye> p]iod beg9n+ on ! date ( ! issuance ( ! *>t] ( ! ,utility by ! ,director1 ! ,director %all ov]see ! transf] to ! ,utility ( own]%ip ( ! ,plat=m4 ,at ! "t ( su* transf]1 ! value ( ! ,plat=m z e/abli%$ 9 accordance ) subsection 7a7 %all be deem$ transf]r$ to ! ,utility1 & %all be repaid to ! ,treasury ( ! ,unit$ ,/ates by ! ,utility )9 #aj ye>s aft] su* transf]4 7c7 ,availability to ,director ,aft] transf] ( ! ,plat=m to ! ,utility1 to ! ext5t feasible ! ,plat=m %all be made available to ! ,ag5cy on t]ms & conditions applicable to o!r us]s1 to assi/ ) manag+ ! w9d-d[n ( any ent]prise = :i* ! ,ag5cy has be5 appo9t$ cons]vator or receiv] pursuant to section #acfg ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dfag74 #cad4 ,fund+ 7a7 ,initial fund+ ,!re is au?oriz$ to be appropriat$ #aej1jjj1jjj = ! e/abli%m5t & initial ov]sight1 regulation1 & sup]vision ( ! ,utility & its op]ation4 7b7 ,repaym5t ( ,initial ,fund+ ,! ,utility %all repay to ! ,treasury ( ! ,unit$ ,/ates ! am\nt ( ! initial fund+ provid$ 9 subsection 7a7 )9 ! #aj-ye> p]iod beg9n+ on ! date t ! ,utility is *>t]$4 7c7 ,ongo+ fund+ 7#a7 ,collection ( ,fees ,aft] e/abli%m5t1 all exp5ses ( ! ,utility %all be paid = by fees collect$ bas$ on s]vices provid$ by & op]ations ( ! ,utility4 7#b7 ,e/abli%m5t ( fee s*$ule ,! ,utility %all-- 7,a7 e/abli%1 subject to ! approval ( ! ,director1 a fee s*$ule & may diff]5tiate fees bas$ on classes or types ( s]vices1 op]ations1 & us]s ( s]vices or op]ations1 & su* diff]5tiation %all n be deem$ discrim9atory2 & 7,b7 review & publi% ! fee s*$ule n less frequ5tly ?an annually1 b may review1 revise1 & publi% ! s*$ule m frequ5tly ?an annually4 #cae4 ,regulation1 sup]vision1 & en=cem5t 7a7 ,g5]al ov]sight ,! ,director %all ex]cise1 by rule1 ord]1 or guidance1 ov]sight ( ! ,utility1 :i* %all include ! au?ority to regulate1 sup]vise1 & exam9e ! ,utility & take en=cem5t actions aga9/ ! ,utility or any ,utility-affiliat$ p>ty1 consi/5t ) ! provisions ( ! ,f$]al ,h\s+ ,ent]prise ,f9ancial ,safety & ,s\ndness ,act ( #aiib4 7b7 ,scope ( ,au?ority ,! au?ority ( ! ,director "u ?is section %all include ! au?ority to ex]cise su* incid5tal p[]s z may be necess>y or appropriate to fulfill ! duties & responsibilities ( ! ,director 9 ! ov]sight1 sup]vision1 & regulation ( ! ,utility4 7c7 ,division ( ,utility regulation ,! ,director %all e/abli% )9 ! ,ag5cy a ,division ( ,utility ,regulation1 :i* %all-- 7#a7 be head$ by a ,deputy ,director designat$ by ! ,director f among individuals :o are citiz5s ( ! ,unit$ ,/ates :o h a demon/rat$ und]/&+ ( f9ancial managem5t or ov]sight & ( mortgage securities m>kets & h\s+ f9ance2 & 7#b7 z reque/$ by ! ,director1 conduct exam9ation & sup]vision activities1 ga!r any in=mation att5dant to su* activities1 & provide recomm5dations to ! ,director reg>d+ ! safe & s\nd op]ation ( ! ,utility & reg>d+ any reque/s to revise1 alt]1 or am5d exi/+ or propos$ activities4 7d7 ,consultation ) ,o!r ,ag5cies ,9 ex]cis+ au?ority to regulate & sup]vise ! ,utility1 ! ,director %all consult ) o!r ,f$]al dep>tm5ts & ag5cies t regulate or sup]vise entities1 in/itutions1 or companies t are or may become subject to /&>ds1 rules1 processes1 or proc$ures develop$ by ! ,utility 7includ+ issu]s ?r\gh ! ,plat=m & depositors or p>ticipants 9 ! ,repository71 includ+ ! ,bureau ( ,consum] ,f9ancial ,protection & any appropriate ,f$]al bank+ ag5cy 7z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act74 7e7 ,annual ,assessm5t ,! ,director %all e/abli% & collect f ! ,utility an annual assessm5t 9 an am\nt n exce$+ ! am\nt suffici5t to provide = reasonable co/s 7includ+ adm9i/rative co/s7 & exp5ses ( ! ,ag5cy relat$ to its ov]sight ( ! ,utility4 ,! am\nts receiv$ by ! ,director f assessm5ts "u ?is section %all n be con/ru$ to be ,gov]nm5t or public funds or appropriat$ money4 ,not)/&+ any o!r provision ( law1 ! am\nts receiv$ by ! ,director f assessm5ts "u ?is section %all n be subject to apportionm5t = ! purpose ( *apt] #ae ( title #ca1 ,unit$ ,/ates ,code1 or "u any o!r au?ority4 #caf4 ,civil & crim9al liability 7a7 ,use ( names 7#a7 ,9 g5]al ,except z expressly au?oriz$ by /atute ( ! ,unit$ ,/ates1 no p]son or organization 7except ! ,repository1 ,utility1 & ,plat=m7 %all use ! t]m ,national ,mortgage ,m>ket ,utility1 ,common ,securitization ,plat=m1 or ,national ,mortgage ,data ,repository1 or su* o!r "n z ! ,director may e/abli% 9 ! *>t] ( ! ,utility or any comb9ation ( words t appe>s to indicate t su* use ( ! t]m conflicts ) ! op]ation ( ! ,utility or any function creat$ h]e94 ,no individual or organization %all use or display-- 7,a7 any sign1 device1 or insignia prescrib$ or approv$ by ! ,utility = use ( display by ! ,utility2 7,b7 any copy1 reproduction or colorable imitation ( any su* sign1 device1 or insignia2 or 7,c7 any sign1 device or insignia reasonably calculat$ to convey ! impression t x is a sign1 device or insignia us$ by ! ,utility or prescrib$ by ! ,utility contr>y to policies or proc$ures ( ! ,utility prohibit+1 limit+ or re/rict+ su* use by any individual or organization4 7#b7 ,relief ,! ,ag5cy or ,utility may seek to enjo9 or recov] damages = any brea* ( ?is section & ref] to ! ,attorney ,g5]al any matt]s t may con/itute crim9al activity = a brea* ( ?is section4 7b7 ,exclusive op]ation ( ! ,repository ,except z expressly au?oriz$ by /atute ( ! ,unit$ ,/ates1 no p]son or organization 7except ! ,utility7 %all op]ate a national regi/ry or repository ( mortgage-relat$ docum5ts4 ,any ,/ate ( ! ,unit$ ,/ates may op]ate a ,/ate regi/ry or repository sy/em1 subject to ! laws ( t ,/ate1 provid$ t any su* ,/ate regi/ry or repository sy/em does n conflict ) ! ,repository or ! purposes ( ?is subtitle4 7c7 ,actions = brea* ,9 any action = brea* ( contract1 includ+ brea* ( repres5tation or w>ranty1 or brea* ( privacy relat$ to data collect$ & ma9ta9$ by ! ,repository1 no prevail+ p>ty may recov] m ?an an am\nt e/abli%$ by ! ,director1 by regulation4 ,:5 issu+ any su* regulation1 ! ,director %all take into consid]ation int5tional1 willful1 reckless1 or neglig5t actions or omissions4 ,su* regulations %all be review$ n less frequ5tly ?an annually1 & may be revis$ 9 ! ,director's discretion4 #b ,/&>ds = qualifi$ securities #cba4 ,qualifi$ securities ,= purposes ( ?is subtitle1 ! t]m qualifi$ security means a security t-- 7#a7 is collat]aliz$ by a class1 or multiple classes1 ( resid5tial mortgages e/abli%$ "u section #cbb7;a72 7#b7 is issu$ 9 accordance ) a /&>d =m securitization agreem5t "u section #cbb7;b72 7#c7 is issu$ by a qualifi$ issu] 9 accordance ) section #cbb7;g72 7#d7 is issu$ ?r\gh ! ,plat=m2 & 7#e7 is n gu>ante$1 9 :ole or 9 "p1 by ! ,unit$ ,/ates ,gov]nm5t4 #cbb4 ,/&>ds = qualifi$ securities 7a7 ,/&>d mortgage classifications 7#a7 ,e/abli%m5t ( mortgage classifications ,! ,utility %all prescribe classifications = resid5tial mortgages hav+ v>i\s degrees ( cr$it risk1 rang+ f a classification ( mortgages hav+ little to no cr$it risk to a classification ( mortgages hav+ high] cr$it risk4 ,9 prescrib+ su* classifications ! ,utility %all seek to all[ = ! pric+ ( cr$it risk1 all[ = ! trad+ ( securities collat]aliz$ by ea* classification ( mortgages e/abli%$ pursuant to ?is subsection 9 ! =w>d m>ket1 & ma9ta9 well-function+ liquid m>kets 9 securities collat]aliz$ by ea* ( ! classifications ( mortgages e/abli%$ pursuant to ?is subsection4 7#b7 ,und]writ+ ,crit]ia ,= ea* classification ( mortgages e/abli%$ "u p>agraph 7#a71 ! ,utility %all e/abli% /&>ds = ea* ( ! foll[+ und]writ+ crit]ia3 7,a7 ,debt-to-,income ,ratio ,! ratio ( ! am\nt ( ! total mon?ly debt ( ! mortgagor to ! am\nt ( ! mon?ly income ( ! mortgagor4 7,b7 ,loan-to-,value ,ratio ,! ratio ( ! pr9cipal obligation "u ! mortgage to ! value ( ! resid5ce subject to ! mortgage1 at ! "t ( mortgage orig9ation4 7,c7 ,cr$it ,hi/ory ,in=mation on ! cr$it hi/ory ( ! mortgagor1 includ+ cr$it scores ( ! mortgagor4 7,d7 ,loan ,docum5tation ,! ext5t ( loan docum5tation & v]ification ( ! f9ancial res\rces ( ! mortgagor us$ to qualify ! mortgagor = ! mortgage1 includ+ any appraisal4 7,e7 ,occupancy ,:e!r ! resid5ce subject to ! mortgage is occupi$ by ! mortgagor4 7,f7 ,cr$it ,enhancem5t ,:e!r any mortgage insurance or o!r type ( insurance or cr$it enhancem5t 0 obta9$ at ! "t ( orig9ation4 7,g7 ,loan ,paym5t ,t]ms 7i7 ,9 g5]al ,! t]ms ( ! mortgage t det]m9e ! magnitude & tim+ ( paym5ts due f ! mortgagor1 includ+ ! t]m to maturity ( ! mortgage1 ! frequ5cy ( paym5t1 ! type ( amortization1 any prepaym5t p5alties1 & :e!r ! int]e/ rate is fix$ or may v>y4 7ii7 ,inclusion ( #cj-,ye> ,fix$ ,int]e/ ,rate ,t]ms e/abli%$ "u clause 7i7 %all include a #cj-ye> fix$ int]e/ rate mortgage4 7,h7 ,o!r ,su* o!r und]writ+ crit]ia z ! ,utility may e/abli%1 consi/5t ) ! goals ( ?is subtitle4 7#c7 ,def9itions ,! ,utility %all1 = purposes ( ?is subsection1 prescribe def9itions = ea* ( ! foll[+ t]ms3 7,a7 ,mortgage ,! t]m mortgage1 :i* def9ition %all include only mortgages on resid5tial prop]ties4 7,b7 ,default ,! t]m default1 ) respect to a mortgage4 7,c7 ,del9qu5cy ,! t]m del9qu5cy1 ) respect to a mortgage4 7,d7 ,loan docum5tation ,! t]m loan docum5tation1 ) respect to a mortgage4 7,e7 ,additional ,t]ms ,su* o!r t]ms z ! ,utility may e/abli%4 7b7 ,/&>d ,=m ,securitization ,agreem5ts 7#a7 ,9 g5]al ,! ,utility %all develop1 adopt1 & publi% /&>d =m securitization agreem5ts = eligible collat]al4 7#b7 ,requir$ ,cont5t ,! /&>d =m securitization agreem5ts to be develop$ "u p>agraph 7#a7 %all include t]ms relat+ to-- 7,a7 pool+ & s]vic+2 7,b7 pur*ase & sale2 7,c7 repres5tations & w>ranties1 includ+ repres5tations & w>ranties z to compliance or con=mity ) /&>ds e/abli%$ by ! ,utility1 z appropriate2 7,d7 indemnification & rem$ies1 includ+ pr9ciples ( a repur*ase program t w ensure an appropriate am\nt ( risk ret5tion "u ! repres5tations & w>ranties set =? "u subp>agraph 7,c72 & 7,e7 ! qualification1 responsibilities1 & duties ( tru/ees4 7c7 ,regi/ration ) ! ,repository ,! ,utility %all require t any mortgage-relat$ docum5t associat$ ) eligible collat]al = qualifi$ securities be regi/]$ ) ! ,repository4 7d7 ,/&>ds = ,s]vic+ ,! ,utility %all develop1 adopt1 & publi%-- 7#a7 s]vic+ /&>ds1 includ+ = ! modification1 re/ructur+1 or "w-out ( any mortgage t s]ves z collat]al = a qualifi$ security2 & 7#b7 a s]vic] succession plan1 :i* may include provisions =-- 7,a7 a specialty s]vic] t c replace ! exi/+ s]vic] if ! p]=mance ( ! mortgage pool det]iorates to specifi$ levels2 & 7,b7 a plan to a*ieve consi/5cy 9 s]vic+ sy/ems relat$ to sy/ematic note-tak+1 consi/5t mail+ addresses1 & o!r po9ts ( contact = borr[]s to use1 among o!r items4 7e7 ,/&>ds = ,s]vic] ,report+ ,! ,utility %all develop1 adopt1 & publi% /&>ds = ! report+ obligations ( s]vic]s ( any mortgage t s]ves z collat]al = a qualifi$ security4 7f7 ,/&>ds = ,aggregators ,! ,utility may develop1 adopt1 & publi% /&>ds = aggregation ( eligible collat]al by entities1 in/itutions1 or companies o!r ?an an issu]4 ,not)/&+ any su* /&>ds develop$ by ! ,utility1 any ,f$]al ,home ,loan ,bank may act z an aggregator & (f] ! s]vice ( aggregation to any memb] ( su* ,bank1 subject to regulations prescrib$ by ! ,director4 7g7 ,/&>ds = ,qualifi$ ,issu]s 7#a7 ,9 ,g5]al ,! ,utility %all develop1 adopt1 & publi% /&>ds = an issu] to qualify z a qualifi$ issu]4 ,su* /&>ds %all only include-- 7,a7 ! exp]i5ce1 f9ancial res\rces1 & integrity ( ! issu] & its pr9cipals1 includ+ compliance hi/ory ) ,f$]al & ,/ate laws2 7,b7 ! adequacy ( insurance & fidelity cov]age ( ! issu] ) respect to errors & omissions2 & 7,c7 a requirem5t t ! issu] submit audit$ f9ancial /atem5ts to ! ,utility1 :o %all make su* /atem5ts publicly available ?r\gh ! ,utility's ,web site4 7#b7 ,application process 7,a7 ,9 g5]al ,! ,utility %all e/abli% an application process = ! qualification ( issu]s1 9 su* =m & mann] & requir+ su* in=mation z ! ,utility may prescribe1 9 accordance ) /&>ds adopt$ "u p>agraph 7#a74 7,b7 ,approval ,! ,utility %all approve any application made pursuant to subp>agraph 7,a7 unless ! issu] does n meet ! /&>ds adopt$ "u p>agraph 7#a74 7,c7 ,publication ,! ,ag5cy %all publi% a li/ ( newly qualifi$ issu]s 9 ! ,f$]al ,regi/] & ! ,utility %all ma9ta9 an updat$ li/ ( qualifi$ issu]s on ! ,utility's ,web site4 7#c7 ,review & revocation ( qualifi$ /atus 7,a7 ,9 ,g5]al ,! ,utility may review ! /atus ( a qualifi$ issu] if ! ,utility is notifi$ t a claim has be5 made aga9/ ! issu] by a tru/ee ) respect to a violation ( a contractual t]m 9 a securitization docum5t ( ! issu]4 7,b7 ,revocation 7i7 ,9 g5]al ,subject to subp>agraph 7,c71 if ! ,utility det]m9es1 subject to ! approval ( ! ,director1 9 a review pursuant to subp>agraph 7,a71 t an issu] no long] meets ! /&>ds = qualification1 ! ,utility %all revoke ! issu]'s qualifi$ /atus4 7ii7 ,con/ruction ,! revocation ( an issu]'s qualifi$ /atus "u ?is subp>agraph %all-- 7,i7 h no effect on ! qualifi$ /atus ( any security issu$ be=e su* revocation2 & 7,,ii7 n relieve ! issu] ( any obligation associat$ ) any repres5tation or w>ranty or any repur*ase obligations relat$ to any qualifi$ security issu$ be=e su* revocation4 7,c7 ,grace ,p]iod ,! ,utility %all e/abli% /&>ds by :i* a qualifi$ issu] :o no long] meets ! /&>ds = qualification may rem$iate & return to meet+ ! /&>ds1 )\t los+ ! issu]'s qualifi$ /atus4 7,d7 ,publication ,! ,ag5cy %all publi% a li/ ( issu]s :o are no long] qualifi$ 9 ! ,f$]al ,regi/] & ! ,utility %all ma9ta9 an updat$ li/ ( su* issu]s on ! ,utility's ,web site4 7h7 ,/&>ds = ,tru/ees 7#a7 ,9 ,g5]al ,!re %all at all times be "o or m tru/ee = ea* pool ( mortgages t acts z collat]al = a qualifi$ security4 7#b7 ,rulemak+ ,! ,director %all issue regulations reg>d+ ! qualifications ( tru/ees "u p>agraph 7#a7 t %all1 to ! ext5t practicable1 be consi/5t ) ! qualification provisions applicable to tru/ees "u section #caj7;a7 ( ! ,tru/ ,ind5ture ,act ( #aicd 7#ae ,u4,s4,c4 #gg;jjj7a774 7#c7 ,conflicts ( ,int]e/ ,! ,director %all issue conflict ( int]e/ regulations t apply to a qualifi$ tru/ee4 ,su* regulations %all1 to ! ext5t practicable1 be consi/5t ) ^? conflict ( int]e/ provisions applicable to an ind5ture tru/ee "u section #caj7;b7 ( ! ,tru/ ,ind5ture ,act ( #aicd 7#ae ,u4,s4,c4 #gg;jjj7b774 7#d7 ,report+ ( ,claims ,any "t a tru/ee br+s a claim aga9/ a qualifi$ issu] on behalf ( inve/ors ) respect to a /&>d =m securitization agreem5t1 ! tru/ee %all notify ! ,director ( su* claim4 7#e7 ,protection ( ,inve/or ,rights ,= ! purpose ( protect+ inve/or rights1 ea* tru/ee %all-- 7,a7 ma9ta9 a li/ ( all inve/ors 7b5eficial own]s7 9 a qualifi$ security2 7,b7 update su* li/ f "t to "t2 7,c7 n make su* li/ available to inve/ors 7b5eficial own]s72 & 7,d7 act z a means to communicate in=mation ab\t ! qualifi$ security to inve/ors 7b5eficial own]s7 & act z a means = inve/ors 7b5eficial own]s7 to communicate ) ea* o!r4 7#f7 ,no ,liability = ,c]ta9 ,communications ,a tru/ee %all n be liable = ! cont5t ( any in=mation provid$ to ! tru/ee by an inve/or 7b5eficial own]7 t ! tru/ee communicates to ano!r inve/or 7b5eficial own]74 7#g7 ,inve/or 7,b5eficial ,own]7 ,notification ( ,tru/ee ,a p]son :o becomes an inve/or 7b5eficial own]7 9 a qualifi$ security %all promptly notify ! tru/ee ( su* security ( ! *ange 9 own]%ip4 7i7 ,indep5d5t ,?ird ,p>ty ,if ! majority ( inve/ors 7b5eficial own]s7 9 a pool ( qualifi$ securities *ooses to hire an indep5d5t ?ird p>ty to act on behalf ( ! be/ int]e/s ( ! inve/ors 7b5eficial own]s71 su* p>ty %all-- 7#a7 be grant$ access to ! loan docum5ts = ! mortgage loans back+ su* security & all s]vic+ reports ! s]vic] provides to inve/ors 7b5eficial own]s7 or ! tru/ee2 7#b7 be grant$ access to ! li/ ( inve/ors 7b5eficial own]s7 ma9ta9$ by ! tru/ee1 on ! condition t ! indep5d5t ?ird p>ty w n make ! li/ available to ! inve/ors 7b5eficial own]s72 & 7#c7 h ! "r1 on behalf ( ! inve/ors 7b5eficial own]s71 to in=m ! tru/ee ( su* securities ( any brea* ( ! securitization agreem5t id5tifi$ by ! ?ird p>ty4 7j7 ,m&atory ,arbitration 7#a7 ,9 g5]al ,all disputes betwe5 an own] ( a qualifi$ security & ! qualifi$ issu] ( su* security relat+ to repres5tations & w>ranties %all be subject to m&atory arbitration proc$ures e/abli%$ by ! ,utility1 9 accordance ) curr5t m>ket practices4 7#b7 ,selection ( ,arbitrator ,inve/ors 7b5eficial own]s7 & issu]s subject to a dispute describ$ "u p>agraph 7#a7 %all h ! "r to agree on an indep5d5t arbitrator4 ,if ! p>ties _c agree on an indep5d5t arbitrator1 ! ,utility %all select an indep5d5t arbitrator = ! p>ties4 7#c7 ,report+ ,duty ( ,arbitrator 7,a7 ,^u ,comm5cem5t ,! arbitrator %all provide ! ,utility ) notice ^u comm5cem5t ( any arbitration "u ?is subsection4 7,b7 ,^u ,conclusion ,^u conclusion ( any arbitration "u ?is subsection1 ! arbitrator %all provide ! ,utility )-- 7i7 ! decision rea*$ by ! arbitrator2 & 7ii7 ! basis = ! arbitrator's decision1 includ+ any evid5ce or te/imony receiv$ dur+ ! arbitration process4 7k7 ,data ,/&>ds2 ,disclosure ,/&>ds 7#a7 ,data ,/&>ds ,! ,utility %all develop1 adopt1 & publi% /&>d data def9itions = all aspects ( loan orig9ation1 appraisals1 & s]vic+4 ,9 develop+ su* def9itions1 ! ,utility %all consid] ! data /&>d-sett+ "w und]tak5 by ! ,mortgage ,indu/ry ,/&>ds ,ma9t5ance ,organization ?r\gh ! ent]prises' ,uni=m ,mortgage ,data ,program ann\nc$ by ! ,ag5cy on ,may #bd1 #bjaj4 7#b7 ,disclosure ,/&>ds ,! ,utility %all develop1 adopt1 & publi% /&>ds = disclosure ( loan orig9ation1 appraisal1 & s]vic+ data1 includ+ data requir$ 9 subsection 7a77#b7 7relat+ to und]writ+ crit]ia7 = resid5tial mortgage loans t comprise qualifi$ securities1 & t all[ = trad+ ( qualifi$ securities "u ?is subtitle 9 a =w>d m>ket4 7#c7 ,coord9ation ,9 develop+ ! data & disclosure /&>ds requir$ by ?is subsection1 ! ,utility %all ensure t su* /&>ds are coord9at$4 7#d7 ,privacy ,protections ,9 prescrib+ ! def9itions & /&>ds requir$ "u ?is subsection1 ! ,utility %all take into consid]ation issues ( consum] privacy & all /atutes1 rules1 & regulations relat$ to privacy ( consum] cr$it in=mation & p]sonally id5tifiable in=mation4 ,su* /&>ds %all expressly prohibit ! id5tification ( specific borr[]s4 7#e7 ,consultation ,:5 review+ any disclosure /&>ds e/abli%$ "u ?is subsection1 ! ,director %all consult ) ! ,securities & ,ex*ange ,commission4 7l7 ,tim+ ( issuance2 ,ag5cy review2 au?ority ,to revise /&>ds 7#a7 ,tim+ ,! ,director %all issue any regulations requir$ by ?is section n lat] ?an ! end ( ! #ab-mon? p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 ,! ,utility %all issue any def9itions1 /&>ds1 rules1 processes1 or proc$ures requir$ by ?is section n lat] ?an ! end ( ! #ab-mon? p]iod beg9n+ on ! date ( issuance ( ! *>t] by ! ,director4 7#b7 ,ag5cy review ,any def9ition1 /&>d1 rule1 process or proc$ure e/abli%$ by ! ,utility %all be submitt$ to ! ,director = review & approval prior to its implem5tation if1 9 ! ,director's discretion1 ! ,director requires su* submission4 ,any def9ition1 /&>d1 rule1 process or proc$ure t ! ,director requires be submitt$ to ! ,ag5cy = review & approval %all be review$ )9 ?ree mon?s ( submission4 7#c7 ,au?ority to revise 7,a7 ,9 g5]al ,! ,utility may review1 revise1 &1 if revis$1 re-publi% any /&>d =m securitization agreem5t or o!r def9ition1 /&>d1 rule1 process1 or proc$ure requir$ to be develop$ by ?is subtitle if ! ,utility det]m9es review or revision to be necess>y or appropriate to satisfy ! goals ( ?is subtitle4 7,b7 ,application ( revisions ,any revisions made pursuant to subp>agraph 7,a7 %all apply only to securitizations made aft] ! date ( su* revision4 7m7 ,effect ( ,conflict ,9 ! ev5t a def9ition1 /&>d1 rule1 process1 or proc$ure e/abli%$ by ! ,utility is 9 conflict ) any def9ition1 /&>d1 rule1 process1 or proc$ure e/abli%$ by ano!r ,f$]al dep>tm5t or ag5cy1 ! ,director %all consult ) ! o!r ,f$]al dep>tm5t or ag5cy1 & provide prompt writt5 notification to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 ( ! conflict4 7n7 ,public ,involvem5t ,9 develop+ def9itions1 /&>ds1 rules1 processes1 & proc$ures requir$ by ?is subtitle1 ! ,utility %all "w ) m>ket p>ticipants1 includ+ s]vic]s1 orig9ators1 & mortgage inve/ors1 & develop me?ods = ga!r+ in=mation & comm5t f su* gr\ps4 #cbc4 ,liability = mislead+ /atem5ts 7a7 ,9 g5]al ,any p]son :o %all make or cause to be made any /atem5t 9 any application1 report1 or docum5t fil$ ) ! ,ag5cy or ,utility pursuant to any provisions ( ?is subtitle1 or any rule1 regulation1 or ord] !reund]1 :i* /atem5t 0 at ! "t & 9 light ( ! circum/ances "u :i* x 0 made false or mislead+ ) respect to any mat]ial fact1 or :o %all omit to /ate any mat]ial fact requir$ to be /at$ !re9 or necess>y to make ! /atem5ts !re9 n mislead+1 %all be liable to any p]son 7n kn[+ t su* /atem5t 0 false or mislead+ or ( su* omission7 :o1 9 reliance ^u su* /atem5t or omission1 %all h pur*as$ or sold a qualifi$ security issu$ "u ! ind5ture to :i* su* application1 report1 or docum5t relates1 = damages caus$ by su* reliance1 unless ! p]son su$ %all prove t su* p]son act$ 9 good fai? & _h no k t su* /atem5t 0 false or mislead+ or ( su* omission4 ,a p]son seek+ to en=ce su* liability may sue at law or 9 equity 9 any c\rt ( compet5t jurisdiction4 ,9 any su* suit ! c\rt may1 9 its discretion1 require an und]tak+ = ! paym5t ( ! co/s ( su* suit & assess reasonable co/s1 includ+ reasonable attorneys' fees1 aga9/ ei!r p>ty litigant1 hav+ due reg>d = ! m]its & good fai? ( ! suit or def5se4 ,no action %all be ma9ta9$ to en=ce any liability creat$ "u ?is section unless br\ght )9 "o ye> aft] ! discov]y ( ! facts con/itut+ ! cause ( action & )9 ?ree ye>s aft] su* cause ( action accru$4 7b7 ,rights & rem$ies "u o!r laws ,! rights & rem$ies provid$ by ?is "p %all be 9 addition to any & all o!r rights & rem$ies t may exi/ "u ! ,securities ,act ( #aicc or ! ,securities ,ex*ange ,act ( #aicd or o!rwise at law or 9 equity2 b no p]son p]mitt$ to ma9ta9 a suit = damages "u ! provisions ( ?is subtitle %all recov]1 ?r\gh satisfaction ( judgm5t 9 "o or m actions1 a total am\nt 9 excess ( ! p]son's actual damages on acc\nt ( ! act compla9$ (4 #cbd4 ,unlawful repres5tations ,x %all be unlawful = any p]son 9 (f]+1 sell+1 or issu+ any qualifi$ security pursuant to ?is subtitle to repres5t or imply 9 any mann] :atsoev] t any action or failure to act by ! ,ag5cy or ,utility 9 ! adm9i/ration ( ?is subtitle means t ! ,ag5cy or ,utility has 9 any way pass$ ^u ! m]its (1 or giv5 approval to1 any tru/ee1 ind5ture1 or security1 or any transaction or transactions !re91 or t any su* action or failure to act ) reg>d to any /atem5t or report files or exam9$ by ! ,ag5cy or ,utility pursuant to ?is subtitle or any rule1 regulation1 or ord] !reund]1 has ! effect ( a f9d+ by ! ,ag5cy or ,utility t su* /atem5t or report is true & accurate on its face or t x is n false or mislead+4 #cbe4 ,contr>y /ipulations void ,any condition1 /ipulation1 or provision b9d+ any p]son to waive compliance ) any provision ( ?is subtitle or ) any rule1 regulation1 or ord] !reund] %all be void4 #c ,national ,mortgage ,data ,repository #cca4 ,organization & op]ation 7a7 ,organization & op]ation ,"u su* regulations z ! ,director may prescribe1 ! ,utility %all organize & op]ate a national mortgage data repository 7,repository74 7b7 ,au?oriz$ activities ,9 addition to organiz+ & op]at+ ! ,repository1 ! ,utility %all-- 7#a7 e/abli% & op]ate a repository = mortgage-relat$ docum5ts2 7#b7 e/abli% /&>ds = qualification ( any depositor ( mortgage-relat$ docum5ts to ! ,repository2 7#c7 e/abli% /&>ds & proc$ures = submission ( mortgage-relat$ docum5ts to ! ,repository1 includ+ requir$ in=mation & ! type & =mat ( in=mation & data2 7#d7 e/abli% proc$ures = validation ( mortgage-relat$ docum5ts & ! data conta9$ 9 ! ,repository2 7#e7 e/abli% /&>ds & proc$ures = acceptance ( mortgage-relat$ docum5ts 7includ+ electronic copies71 & notice ( acceptance1 by ! ,repository2 7#f7 e/abli% /&>ds & proc$ures = regi/ration ( any mortgage-relat$ docum5t ) ! ,repository1 includ+ notice ( regi/ration & ! assignm5t ( a unique id5tifi]2 7#g7 e/abli% /&>ds & proc$ures = record+ ! creation1 assignm5t1 or transf] ( an int]e/ 9 any regi/]$ mortgage-relat$ docum5t2 7#h7 e/abli% /&>ds & proc$ures = qualification ( depositors & p>ticipants 9 ! ,repository2 7#i7 e/abli% proc$ures = prop] demon/ration ( regi/ration ( mortgage-relat$ docum5ts ) ! ,repository & recordation ( an int]e/ by ! hold] ( an int]e/ 9 any su* docum5t1 subject to regulations issu$ by ! ,director 9 accordance ) section #ccb 7relat+ to legal effect ( regi/ration ) ! ,repository72 7#aj7 e/abli% & ma9ta9 a catalog ( ! mortgage-relat$ docum5ts regi/]$ ) ! ,repository2 7#aa7 e/abli% /&>ds & proc$ures = disposition ( mortgage-relat$ docum5ts1 includ+ safekeep+1 long-t]m /orage1 or de/ruction ( pap] docum5ts2 7#ab7 e/abli% /&>ds & proc$ures = mak+ data publicly available2 7#ac7 ensure t data collect$ & ma9ta9$ by ! ,repository are kept secure & protect$ aga9/ unau?oriz$ disclosure1 includ+ disclosure ( p]sonally id5tifiable in=mation t is n o!rwise available z "p ( any public record2 7#ad7 e/abli% a process1 includ+ notification f ! public1 = id5tification & correction ( incorrect in=mation submitt$ to or ma9ta9$ by ! ,repository2 7#ae7 e/abli% fees = regi/ration ( mortgage-relat$ docum5ts & ma9t5ance & use ( data1 & = ! provision ( o!r relat$ s]vices n inconsi/5t ) ! purposes ( ?is subtitle2 & 7#af7 p]=m any o!r s]vice or engage 9 any o!r activity t ! ,director det]m9es1 by regulation or ord]1 to be incid5tal to ! activities enum]at$ 9 ?is subsection4 7c7 ,requirem5ts on p>ticipants ,ea* p>ticipant %all-- 7#a7 comply ) su* requirem5ts z may be set by ! ,repository = us+ data ma9ta9$ or creat$ by ! ,repository2 & 7#b7 use su* designation z ! ,repository may provide1 su* z a unique id5tifi]4 #ccb4 ,legal effect ( regi/ration ) ,repository ,not)/&+ any provision ( ,/ate or ,f$]al law to ! contr>y1 by prop] demon/ration ( regi/ration ) ! ,repository1 any hold] ( an int]e/ 9 any mortgage-relat$ note %all satisfy any requirem5t = demon/ration ( a "r to act reg>d+ su* note or o!r regi/]$ data t exi/s 9 ,/ate or ,f$]al law1 includ+ any obligation to produce or possess an orig9al note4 ,! ,director %all provide = ! e/abli%m5t ( proc$ures = prop] demon/ration ( regi/ration ( any mortgage-relat$ docum5t & ( an int]e/ by ! hold] ( an int]e/ 9 any su* docum5t ) ! ,repository4 ,once regi/]$ ) ! ,repository1 su* regi/ration %all be a legal "r en=ceable 9 any judicial or nonjudicial process4 #ccc4 ,grants to ,/ates2 repaym5t 7a7 ,grants to ,/ates ,!re is h]eby au?oriz$ to be appropriat$ #ej1jjj1jjj to ! ,director = ! e/abli%m5t ( a fund to be adm9i/]$ by ! ,ag5cy = provid+ grants to ,/ates1 on application to ! ,ag5cy1 to facilitate p>ticipation 9 ! ,repository by any depositor or p>ticipant or class ( depositors or p>ticipants1 or any o!r p]son ^u appropriate demon/ration to ! ,ag5cy t su* a grant w\ld assi/ 9 ! accompli%m5t ( ! purposes ( ?is subtitle4 ,any su* am\nts appropriat$ & n grant$ by ! ,ag5cy )9 five ye>s ( ! date ( ! enactm5t ( ?is ,act %all be return$ to ! ,treasury ( ! ,unit$ ,/ates4 7b7 ,repaym5t ,! ,director %all cause to be collect$ f ! ,utility & deposit 9 ! ,treasury ( ! ,unit$ ,/ates an am\nt equal to ! aggregate am\nt provid$ z grants to ,/ates pursuant to subsection 7a7 )9 ! #aj-ye> p]iod beg9n+ on ! date t ! fir/ grant is made pursuant to subsection 7a74 #ccd4 ,judicial review ,except z o!rwise expressly provid$ "u ?is "p1 no p]son o!r ?an ! ,director or ! ,attorney ,g5]al ( ! ,unit$ ,/ates1 or any duly au?oriz$ repres5tative ( ! ,director or ! ,attorney ,g5]al1 may proce$ aga9/ ! ,repository 9 any ,/ate or ,f$]al c\rt4 ,! prohibition 9 ! prec$+ s5t5ce %all n apply to a civil action aga9/ ! ,repository or any duly au?oriz$ ag5t !re( = brea* ( a contract1 includ+ brea* ( a repres5tation or w>ranty1 or brea* ( privacy relat$ to data collect$ & ma9ta9$ by ! ,repository or any duly au?oriz$ ag5t !re(4 #cce4 ,transition provisions 7a7 ,9 g5]al ,! ,ag5cy %all provide = a transition p]iod to p]mit ! effici5t implem5tation ( ! provisions ( ?is "p4 ,su* transition may include p]iods = te/+1 e>ly adoption1 & f9al m&atory adoption = all record$ mortgages4 7b7 ,electronic ,submissions ,! ,repository %all accept electronic submissions & pap]-bas$ docum5ts submitt$ electronically subject to rules ( ! ,repository4 ,aft] ! expiration ( ! #aj-ye> p]iod t beg9s ^u ! date ( ! enactm5t ( ?is ,act1 subject to an ext5sion ( su* p]iod = up to #e additional ye>s if ! ,director det]m9es appropriate1 ! ,repository %all require only electronic submission4 #d ,con=m+ am5dm5ts #cda4 ,con=m+ am5dm5t to ,f$]al ,home ,loan ,bank ,act ,section #aa ( ! ,f$]al ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adca7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7m7 ,aggregation ( loans orig9at$ by memb]s ,any ,f$]al ,home ,loan ,bank may aggregate = securitization ?r\gh ! common securitization plat=m 7z su* t]m is def9$ 9 section #cjc ( ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac7 resid5tial mortgage loans orig9at$ by any memb] ( su* ,bank1 pursuant to regulations issu$ by ! ,director4 4 #cdb4 ,con=m+ am5dm5ts to ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act ,section #hjc7h77;,a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #edfb7h77;,a77 is am5d$-- 7#a7 r$esignat+ clause 7iv7 z clause 7v72 & 7#b7 ins]t+ aft] clause 7iii7 ! foll[+ new clause3 7iv7 ,! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ) respect to a designat$ f9ancial m>ket utility t is subject to ! exclusive sup]vision ( t ,ag5cy pursuant to ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac4 4 #cdc4 ,con=m+ am5dm5ts to ,securities ,act ( #aicc 7a7 ,exempt$ securities ,section #c7;a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,any qualifi$ security1 z su* t]m is def9$ 9 section #cba ( ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac4 4 7b7 ,removal ( cr$it risk ret5tion ref]5ce ,section #bg;,b ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #ggz-#b;a7 is am5d$ by /rik+ subsection 7d74 #cdd4 ,con=m+ am5dm5ts to title #ah1 ,unit$ ,/ates ,code 7a7 ,false adv]tis+ ,section #gji ( title #ah1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ aft] a ,f$]al ,home ,loan ,bank2 or ! foll[+3 ,:oev] uses ! words ,national ,mortgage ,data ,repository or su* o!r "n z ! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy may e/abli% 9 ! *>t] ( ! repository or any comb9ation ( words t appe>s to indicate t su* use ( ! t]m conflicts ) ! exclusive op]ation ( ! repository creat$ by "p #c ( ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac z a bus9ess "n or any "p ( a bus9ess "n1 or falsely publi%es1 adv]tises1 or repres5ts by any device or symbol or o!r means reasonably calculat$ to convey ! impression t he or x is ! repository creat$ by su* "p2 or4 7b7 ,fraud & false /atem5ts ,*apt] #dg ( title #ah1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by add+ at ! end ! foll[+ new section3 #ajda4 ,in=mation security2 false /atem5ts & concealm5t ( facts relat$ to ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac ,:oev]1 ) reg>d to any mortgage-relat$ docum5t 7z su* t]m is def9$ 9 section #cjc ( ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac7 or ! regi/ration ( any docum5t or any int]e/ 9 any su* docum5t pursuant to t ,act1 makes any false /atem5t or repres5tation ( fact1 kn[+ x to be false1 or kn[+ly conceals1 cov]s up or fails to disclose any mat]ial fact ! disclosure ( :i* is requir$ by su* ,act or regulation1 %all be f9$ "u ?is title1 or imprison$ n m ?an five ye>s1 or bo?4 2 & 7#b7 9 ! table ( cont5ts = su* *apt]1 by ins]t+ aft] ! item relat+ to section #ajdj ! foll[+3 #ajda4 ,in=mation security2 false /atem5ts & concealm5t ( facts relat$ to ! ,national ,mortgage ,m>ket ,utility ,act ( #bjac4 4 ,b ,cov]$ ,bonds #cea4 ,%ort title ,?is subtitle may be cit$ z ! ,unit$ ,/ates ,cov]$ ,bond ,act ( #bjac4 #ceb4 ,def9itions ,= purposes ( ?is subtitle1 ! foll[+ def9itions %all apply3 7#a7 ,ancill>y asset ,! t]m ancill>y asset means-- 7,a7 any int]e/ rate or curr5cy swap associat$ ) #a or m eligible assets1 sub/itute assets1 or o!r assets 9 a cov] pool2 7,b7 any cr$it enhancem5t or liquidity arrangem5t associat$ ) #a or m eligible assets1 sub/itute assets1 or o!r assets 9 a cov] pool2 7,c7 any gu>antee1 lett]-(-cr$it "r1 or o!r second>y obligation t supports any paym5t or p]=mance ( #a or m eligible assets1 sub/itute assets1 or o!r assets 9 a cov] pool2 & 7,d7 any proce$s (1 or o!r prop]ty incid5t to1 #a or m eligible assets1 sub/itute assets1 or o!r assets 9 a cov] pool4 7#b7 ,corporation ,! t]m ,corporation means ! ,f$]al ,deposit ,insurance ,corporation4 7#c7 ,cov] pool ,! t]m cov] pool means a dynamic pool ( assets t is compris$ (-- 7,a7 9 ! case ( any eligible issu] describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 ( p>agraph 7#i7-- 7i7 #a or m eligible assets f a s+le eligible asset class2 & 7ii7 #a or m sub/itute assets or ancill>y assets2 & 7,b7 9 ! case ( any eligible issu] describ$ 9 p>agraph 7#i77;,d7-- 7i7 ! cov]$ bonds issu$ by ea* sponsor+ eligible issu]2 & 7ii7 #a or m sub/itute assets or ancill>y assets4 7#d7 ,cov]$ bond ,! t]m cov]$ bond means any rec\rse debt obligation ( an eligible issu] t-- 7,a7 has an orig9al t]m to maturity ( n less ?an #a ye>2 7,b7 is secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on a cov] pool t is own$ directly or indirectly by ! issu] ( ! obligation2 7,c7 is issu$ "u a cov]$ bond program t has be5 approv$ by ! applicable cov]$ bond regulator2 7,d7 is id5tifi$ 9 a regi/] ( cov]$ bonds t is ma9ta9$ by ! ,secret>y2 & 7,e7 is n a deposit 7z def9$ 9 section #c7l7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7l7774 7#e7 ,cov]$ bond program ,! t]m cov]$ bond program means any program ( an eligible issu] "u :i*1 on ! security ( a s+le cov] pool1 #a or m s]ies ( cov]$ bonds may be issu$4 7#f7 ,cov]$ bond regulator ,! t]m cov]$ bond regulator means-- 7,a7 = any eligible issu] t is subject to ! jurisdiction ( an appropriate ,f$]al bank+ ag5cy 7z def9$ 9 section #c7q7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7q7771 ! appropriate ,f$]al bank+ ag5cy2 7,b7 = any eligible issu] t is describ$ 9 p>agraph 7#i77;,d71 t is n subject to ! jurisdiction ( an appropriate ,f$]al bank+ ag5cy1 & t is sponsor$ by only #a eligible issu]1 ! cov]$ bond regulator = ! sponsor2 7,c7 = any eligible issu] t is describ$ 9 p>agraph 7#i77;,d71 t is n subject to ! jurisdiction ( an appropriate ,f$]al bank+ ag5cy1 & t is sponsor$ by m ?an #a eligible issu]1 ! cov]$ bond regulator = ! sponsor ^: cov]$ bonds con/itute ! l>ge/ %>e ( ! cov] pool ( ! issu]2 & 7,d7 = any o!r eligible issu] t is n subject to ! jurisdiction ( an appropriate ,f$]al bank+ ag5cy1 ! ,secret>y4 7#g7 ,eligible asset ,! t]m eligible asset means-- 7,a7 9 ! case ( ! resid5tial mortgage asset class1 any fir/-li5 mortgage loan t-- 7i7 is secur$ by #a- to #d-;family resid5tial prop]ty2 & 7ii7 is n made1 insur$1 or gu>ante$ by ! ,gov]nm5t2 7,b7 9 ! case ( ! comm]cial mortgage asset class1 any comm]cial mortgage loan 7includ+ any multifamily mortgage loan72 7,c7 9 ! case ( ! public sector asset class-- 7i7 any security issu$ by a ,/ate1 municipality1 or o!r gov]nm5tal au?ority2 7ii7 any loan made to a ,/ate1 municipality1 or o!r gov]nm5tal au?ority2 & 7iii7 any loan1 security1 or o!r obligation t is insur$ or gu>ante$1 9 full or sub/antially 9 full1 by ! full fai? & cr$it ( ! ,unit$ ,/ates ,gov]nm5t 7:e!r or n su* loan1 security1 or o!r obligation is also "p ( ano!r eligible asset class72 7,d7 9 ! case ( ! auto asset class1 any auto loan or lease2 7,e7 9 ! case ( ! /ud5t loan asset class1 any /ud5t loan 7:e!r gu>ante$ or nongu>ante$72 7,f7 9 ! case ( ! cr$it or *>ge c>d asset class1 any ext5sion ( cr$it to a p]son "u an op5-end cr$it plan2 7,g7 9 ! case ( ! small bus9ess asset class1 any loan t is made or gu>ante$ "u a program ( ! ,small ,bus9ess ,adm9i/ration2 & 7,h7 9 ! case ( any o!r eligible asset class1 any asset designat$ by ! ,secret>y1 by rule & 9 consultation ) ! cov]$ bond regulators1 z an eligible asset = purposes ( su* class4 7#h7 ,eligible asset class ,! t]m eligible asset class means-- 7,a7 a resid5tial mortgage asset class2 7,b7 a comm]cial mortgage asset class2 7,c7 a public sector asset class2 7,d7 an auto asset class2 7,e7 a /ud5t loan asset class2 7,f7 a cr$it or *>ge c>d asset class2 7,g7 a small bus9ess asset class2 & 7,h7 any o!r eligible asset class designat$ by ! ,secret>y1 by rule & 9 consultation ) ! cov]$ bond regulators4 7#i7 ,eligible issu] ,! t]m eligible issu] means-- 7,a7 any insur$ depository in/itution & any subsidi>y ( su* in/itution2 7,b7 any bank hold+ company1 any sav+s & loan hold+ company1 & any subsidi>y ( any ( su* companies2 7,c7 any nonbank f9ancial company 7z def9$ 9 section #ajb7;a77#d7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecaa7;a77#d777 t is sup]vis$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em "u section #aac ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecbc71 includ+ any int]m$iate hold+ company sup]vis$ z a nonbank f9ancial company1 & any subsidi>y ( su* a nonbank f9ancial company2 & 7,d7 any issu] t is sponsor$ by #a or m eligible issu]s = ! sole purpose ( issu+ cov]$ bonds on a pool$ basis4 7#aj7 ,ov]sight program ,! t]m ov]sight program means ! cov]$ bond regulatory ov]sight program e/abli%$ "u section #cec7;a74 7#aa7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,dep>tm5t ( ! ,treasury4 7#ab7 ,sub/itute asset ,! t]m sub/itute asset means-- 7,a7 ca%2 7,b7 any direct obligation ( ! ,unit$ ,/ates ,gov]nm5t1 & any security or o!r obligation ^: full pr9cipal & int]e/ are insur$ or gu>ante$ by ! full fai? & cr$it ( ! ,unit$ ,/ates ,gov]nm5t2 7,c7 any direct obligation ( a ,unit$ ,/ates ,gov]nm5t corporation or ,gov]nm5t-sponsor$ ent]prise ( ! highe/ cr$it quality1 & any o!r security or o!r obligation ( ! highe/ cr$it quality ^: full pr9cipal & int]e/ are insur$ or gu>ante$ by su* corporation or ent]prise1 except t ! out/&+ pr9cipal am\nt ( ^! obligations 9 any cov] pool may n exce$ an am\nt equal to #bj p]c5t ( ! out/&+ pr9cipal am\nt ( all assets 9 ! cov] pool )\t ! approval ( ! applicable cov]$ bond regulator2 7,d7 any ov]night inve/m5t 9 ,f$]al funds2 7,e7 any o!r sub/itute asset designat$ by ! ,secret>y1 by rule & 9 consultation ) ! cov]$ bond regulators2 & 7,f7 any deposit acc\nt or securities acc\nt into :i* only an asset describ$ 9 subp>agraph 7,a71 7,b71 7,c71 7,d71 or 7,e7 may be deposit$ or cr$it$4 #cec4 ,regulatory ov]sight ( cov]$ bond programs e/abli%$ 7a7 ,e/abli%m5t 7#a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y %all1 by rule & 9 consultation ) ! cov]$ bond regulators1 e/abli% a cov]$ bond regulatory ov]sight program t provides =-- 7,a7 cov]$ bond programs to be evaluat$ accord+ to reasonable & objective /&>ds 9 ord] to be approv$ "u p>agraph 7#b71 includ+ any additional eligibility /&>ds = eligible assets & any o!r crit]ia det]m9$ appropriate by ! ,secret>y to fur!r ! purposes ( ?is subtitle2 7,b7 cov]$ bond programs to be ma9ta9$ 9 a mann] t is consi/5t ) ?is subtitle & safe & s\nd asset-liability managem5t & o!r f9ancial practices2 & 7,c7 any e/ate creat$ "u section #ced to be adm9i/]$ 9 a mann] t is consi/5t ) maximiz+ ! value & ! proce$s ( ! relat$ cov] pool 9 a resolution "u ?is subtitle4 7#b7 ,approval ( ea* cov]$ bond program 7,a7 ,9 g5]al ,a cov]$ bond %all be subject to ?is subtitle only if ! cov]$ bond is issu$ by an eligible issu] "u a cov]$ bond program t is approv$ by ! applicable cov]$ bond regulator4 7,b7 ,approval process ,ea* cov]$ bond regulator %all apply ! /&>ds e/abli%$ by ! ,secret>y "u ! ov]sight program to evaluate a cov]$ bond program t has be5 submitt$ by an eligible issu] = approval4 ,ea* cov]$ bond regulator also %all take into acc\nt relevant sup]visory factors1 includ+ safety & s\ndness consid]ations1 9 evaluat+ a cov]$ bond program t has be5 submitt$ = approval4 ,ea* cov]$ bond regulator1 promptly aft] approv+ a cov]$ bond program1 %all provide ! ,secret>y ) ! "n ( ! cov]$ bond program1 ! "n ( ! eligible issu]1 & all o!r in=mation reasonably reque/$ by ! ,secret>y 9 ord] to update ! regi/ry "u p>agraph 7#c77;,a74 ,ea* eligible issu]1 promptly aft] issu+ a cov]$ bond "u an approv$ cov]$ bond program1 %all provide ! ,secret>y ) all in=mation reasonably reque/$ by ! ,secret>y 9 ord] to update ! regi/ry "u p>agraph 7#c77;,b74 7,c7 ,exi/+ cov]$ bond programs ,a cov]$ bond regulator may approve a cov]$ bond program t is 9 exi/5ce on ! date ( ! enactm5t ( ?is ,act4 ,^u su* approval1 ea* cov]$ bond "u ! cov]$ bond program %all be subject to ?is subtitle1 reg>dless ( :5 ! cov]$ bond 0 issu$4 7,d7 ,multiple cov]$ bond programs p]mitt$ ,an eligible issu] may h m ?an #a cov]$ bond program4 7,e7 ,cease & desi/ au?ority ,! applicable cov]$ bond regulator may direct an eligible issu] to cease issu+ cov]$ bonds "u an approv$ cov]$ bond program if ! cov]$ bond program is n ma9ta9$ 9 a mann] t is consi/5t ) ?is subtitle & ! ov]sight program & if1 aft] notice t is reasonable "u ! circum/ances1 ! issu] does n rem$y all defici5cies id5tifi$ by ! applicable cov]$ bond regulator4 7,f7 ,cap on ! am\nt ( out/&+ cov]$ bonds 7i7 ,9 g5]al ,) respect to ea* eligible issu] t submits a cov]$ bond program = approval1 ! applicable cov]$ bond regulator %all set1 consi/5t ) safety & s\ndness consid]ations & ! f9ancial condition ( ! eligible issu]1 ! maximum am\nt1 z a p]c5tage ( ! eligible issu]'s total assets1 ( out/&+ cov]$ bonds t ! eligible issu] may issue4 7ii7 ,review ( cap ,! applicable cov]$ bond regulator may1 n m frequ5tly ?an qu>t]ly1 review ! p]c5tage set "u clause 7i7 &1 if safety & s\ndness consid]ations or ! f9ancial condition ( ! eligible issu] has *ang$1 increase or decrease su* p]c5tage4 ,any decrease made pursuant to ?is clause %all h no effect on exi/+ cov]$ bonds issu$ by ! eligible issu]4 7#c7 ,regi/ry ,"u ! ov]sight program1 ! ,secret>y %all ma9ta9 a regi/ry t is publi%$ on a ,web site available to ! public & t1 = ea* cov]$ bond program approv$ by a cov]$ bond regulator1 conta9s-- 7,a7 ! "n ( ! cov]$ bond program1 ! "n ( ! eligible issu]1 & all o!r in=mation t ! ,secret>y consid]s necess>y to adequately id5tify ! cov]$ bond program & ! eligible issu]2 & 7,b7 all in=mation t ! ,secret>y consid]s necess>y to adequately id5tify all out/&+ cov]$ bonds issu$ "u ! cov]$ bond program 7includ+ ! reports describ$ 9 p>agraphs 7#c7 & 7#d7 ( subsection 7b774 7#d7 ,fees ,ea* cov]$ bond regulator may levy1 on ! issu]s ( cov]$ bonds "u ! prim>y sup]vision ( su* cov]$ bond regulator1 reasonably apportion$ fees t su* cov]$ bond regulator consid]s necess>y1 9 ! aggregate1 to defray ! co/s ( su* cov]$ bond regulator c>ry+ out ! provisions ( ?is subtitle4 ,su* funds %all n be con/ru$ to be ,gov]nm5t funds or appropriat$ monies & %all n be subject to apportionm5t = purposes ( *apt] #ae ( title #ca1 ,unit$ ,/ates ,code1 or any o!r provision ( law4 7b7 ,m9imum ov]-,collat]alization requirem5ts 7#a7 ,requirem5ts e/abli%$ ,! ,secret>y1 by rule & 9 consultation ) ! cov]$ bond regulators1 %all e/abli% m9imum ov]-collat]alization requirem5ts = cov]$ bonds back$ by ea* ( ! eligible asset classes4 ,! m9imum ov]-collat]alization requirem5ts %all be design$ to ensure t suffici5t eligible assets & sub/itute assets are ma9ta9$ 9 ! cov] pool to satisfy all pr9cipal & int]e/ paym5ts on ! cov]$ bonds :5 due ?r\gh maturity & %all be bas$ on ! cr$it1 collection1 & int]e/ rate risks 7exclud+ ! liquidity risks7 associat$ ) ! eligible asset class4 7#b7 ,asset cov]age te/ ,! eligible assets & ! sub/itute assets 9 any cov] pool %all be requir$1 9 ! aggregate1 to meet at all times ! applicable m9imum ov]-collat]alization requirem5ts4 7#c7 ,mon?ly report+ ,on a mon?ly basis1 ea* issu] ( cov]$ bonds %all submit a report on :e!r ! cov] pool t secures ! cov]$ bonds meets ! applicable m9imum ov]-collat]alization requirem5ts to-- 7,a7 ! ,secret>y2 7,b7 ! applicable cov]$ bond regulator2 7,c7 ! applicable ind5ture tru/ee2 7,d7 ! applicable cov]$ bondhold]s2 & 7,e7 ! applicable indep5d5t asset monitor4 7#d7 ,indep5d5t asset monitor 7,a7 ,appo9tm5t ,ea* issu] ( cov]$ bonds %all appo9t ! ind5ture tru/ee = ! cov]$ bonds1 or ano!r unaffiliat$ entity1 z an indep5d5t asset monitor = ! applicable cov] pool4 7,b7 ,duties ,an indep5d5t asset monitor appo9t$ "u subp>agraph 7,a7 %all1 on an annual or o!r m frequ5t p]iodic basis det]m9$ by ! ,secret>y "u ! ov]sight program-- 7i7 v]ify :e!r ! cov] pool meets ! applicable m9imum ov]-collateralization requirem5ts2 & 7ii7 report to ! ,secret>y1 ! applicable cov]$ bond regulator1 ! applicable ind5ture tru/ee1 & ! applicable cov]$ bondhold]s on :e!r ! cov] pool meets ! applicable m9imum ov]-collat]alization requirem5ts4 7#e7 ,no loss ( /atus ,cov]$ bonds %all rema9 subject to ?is subtitle reg>dless ( :e!r ! applicable cov] pool ceases to meet ! applicable m9imum ov]-collat]alization requirem5ts4 7#f7 ,failure to meet requirem5ts 7,a7 ,9 g5]al ,if a cov] pool fails to meet ! applicable m9imum ov]-collateralization requirem5ts1 & if ! failure is n cur$ )9 ! "t specifi$ 9 ! relat$ transaction docum5ts1 ! failure %all be an uncur$ default = purposes ( section #ced7;a74 7,b7 ,notice requir$ ,an issu] ( cov]$ bonds %all promptly give ! ,secret>y & ! applicable cov]$ bond regulator writt5 notice if ! cov] pool secur+ ! cov]$ bonds fails to meet ! applicable m9imum ov]-collat]alization requirem5ts1 if ! failure is cur$ )9 ! "t specifi$ 9 ! relat$ transaction docum5ts1 or if ! failure is n s cur$4 7c7 ,requirem5ts = eligible assets 7#a7 ,requirem5ts 7,a7 ,loans ,a loan %all n qualify z an eligible asset = s long z ! loan is del9qu5t = m ?an #fj consecutive days4 7,b7 ,securities ,a security %all n qualify z an eligible asset = s long z ! security does n meet any cr$it-quality requirem5t "u ?is subtitle4 7,c7 ,orig9ation ,an asset %all n qualify z an eligible asset if ! asset 0 n orig9at$ 9 compliance ) any rule or sup]visory guidance ( a ,f$]al ag5cy applicable to ! asset at ! "t ( orig9ation4 7,d7 ,no d\ble pl$ge ,an asset %all n qualify z an eligible asset = s long z ! asset is subject to a prior p]fect$ security int]e/ or o!r prior p]fect$ li5 t has be5 grant$ 9 an unrelat$ transaction4 ,no?+ 9 ?is subtitle %all affect su* a prior p]fect$ security int]e/ or o!r prior p]fect$ li51 & ! rights ( su* li5 hold]s4 7#b7 ,failure to meet requirem5ts ,subject to p>agraph 7#a77;,d71 if an asset 9 a cov] pool does n satisfy any applicable requirem5t describ$ 9 p>agraph 7#a7 or any o!r applicable /&>d or crit]ion describ$ 9 ?is subtitle1 ! ov]sight program1 or ! relat$ transaction docum5ts1 ! asset %all n qualify z an eligible asset = purposes ( ! asset cov]age te/ describ$ 9 subsection 7b77#b74 ,a disqualifi$ asset %all rema9 9 ! cov] pool unless & until remov$ by ! issu] 9 compliance ) ! provisions ( ?is subtitle1 ! ov]sight program1 & ! relat$ transaction docum5ts4 ,no disqualifi$ asset may be remov$ f ! cov] pool aft] an e/ate has be5 creat$ = ! relat$ cov]$ bond program "u section #ced7;b77#a7 or #ced7;c77#b71 except 9 connection ) ! managem5t ( ! cov] pool "u section #ced7;d77#a77;,e74 7d7 ,o!r requirem5ts 7#a7 ,books & records ( issu] ,ea* issu] ( cov]$ bonds %all cle>ly m>k its books & records to id5tify ! assets t comprise ! cov] pool secur+ ! cov]$ bonds4 7#b7 ,s*$ule ( eligible assets & sub/itute assets ,ea* issu] ( cov]$ bonds %all deliv] to ! applicable ind5ture tru/ee & ! applicable indep5d5t asset monitor1 on at lea/ a mon?ly basis1 a s*$ule t id5tifies all eligible assets & sub/itute assets 9 ! cov] pool secur+ ! cov]$ bonds4 7#c7 ,s+le eligible asset class ,no cov] pool describ$ 9 section #ceb7c77;,a7 may include eligible assets f m ?an #a eligible asset class4 ,no cov] poll describ$ 9 section #b7c77;,b7 may include cov]$ bonds back$ by m ?an #a eligible asset class4 #ced4 ,resolution ^u default or insolv5cy 7a7 ,uncur$ default def9$ ,= purposes ( ?is section1 ! t]m uncur$ default means a default on a cov]$ bond t has n be5 cur$ )9 ! "t1 if any1 specifi$ 9 ! relat$ transaction docum5ts4 7b7 ,default on cov]$ bonds prior to cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy 7#a7 ,creation ( sep>ate e/ate ,if an uncur$ default occurs on a cov]$ bond be=e ! issu] ( ! cov]$ bond ent]s cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy1 an e/ate %all be imm$iately & automatically creat$ by op]ation ( law & %all exi/ & be adm9i/]$ sep>ate & ap>t f ! issu] or any subsequ5t cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or e/ate 9 bankruptcy = ! issu] or any o!r assets ( ! issu]4 ,a sep>ate e/ate %all be creat$ = ea* affect$ cov]$ bond program4 7#b7 ,assets & liabilities ( e/ate ,any e/ate creat$ "u p>agraph 7#a7 %all be compris$ ( ! cov] pool 7includ+ ov]-collateralization 9 ! cov] pool7 t secures ! cov]$ bond4 ,! cov] pool %all be imm$iately & automatically releas$ to & held by ! e/ate free & cle> ( any "r1 title1 int]e/1 or claim ( ! issu] or any cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu] or any o!r assets ( ! issu]4 ,! e/ate %all be fully liable on ! cov]$ bond & all o!r cov]$ bonds & relat$ obligations ( ! issu] 7includ+ obligations "u relat$ d]ivative transactions7 t are secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on ! cov] pool :5 ! e/ate is creat$4 ,! e/ate %all n be liable on any obligation ( ! issu] t is n secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on ! cov] pool :5 ! e/ate is creat$4 ,no cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu] may *>ge or assess ! e/ate = any claim ( ! cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy or ! cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or e/ate 9 bankruptcy & may n obta9 or p]fect a security int]e/ 9 or o!r li5 on ! cov] pool to secure su* a claim4 7#c7 ,ret5tion ( claims ,any hold] ( a cov]$ bond or relat$ obligation = :i* an e/ate has become liable "u p>agraph 7#b7 %all reta9 a claim aga9/ ! issu] = any defici5cy ) respect to ! cov]$ bond or relat$ obligation4 ,if ! issu] ent]s cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy1 any cont+5t claim = su* a defici5cy %all be all[$ z a provable claim 9 ! cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or bankruptcy case4 ,! cont+5t claim %all be e/imat$ by ! cons]vator1 receiv]1 liquidat+ ag5t1 or bankruptcy c\rt = purposes ( all[+ ! claim z a provable claim if await+ ! fix+ ( ! cont+5t claim w\ld unduly delay ! resolution ( ! cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or bankruptcy case4 7#d7 ,residual int]e/ 7,a7 ,issuance ( residual int]e/ ,^u ! creation ( an e/ate "u p>agraph 7#a71 a residual int]e/ 9 ! e/ate %all be imm$iately & automatically issu$ by op]ation ( law to ! issu]4 7,b7 ,nature ( residual int]e/ ,! residual int]e/ "u subp>agraph 7,a7 %all-- 7i7 be an exempt$ security z describ$ 9 section #cee2 7ii7 repres5t ! "r to any surplus f ! cov] pool aft] ! cov]$ bonds & all o!r liabilities ( ! e/ate h be5 fully & irrevocably paid2 & 7iii7 be evid5c$ by a c]tificate execut$ by ! tru/ee ( ! e/ate4 7#e7 ,obligations ( issu] 7,a7 ,9 g5]al ,aft] ! creation ( an e/ate "u p>agraph 7#a71 ! issu] %all-- 7i7 transf] to or at ! direction ( ! tru/ee = ! e/ate all prop]ty ( ! e/ate t is 9 ! possession or "u ! control ( ! issu]1 includ+ all tangible or electronic books1 records1 files1 & o!r docum5ts or mat]ials relat+ to ! assets & liabilities ( ! e/ate2 & 7ii7 at ! election ( ! tru/ee or a s]vic] or adm9i/rator = ! e/ate1 cont9ue s]vic+ ! applicable cov] pool = #abj days aft] ! creation ( ! e/ate 9 return = a fair-m>ket-value fee1 z det]m9$ by ! tru/ee 9 consultation ) ! applicable cov]$ bond regulator1 t %all be payable f ! e/ate z an adm9i/rative exp5se4 7,b7 ,obligations absolute ,nei!r ! issu]1 :e!r act+ z debtor 9 possession or 9 any o!r capacity1 nor any cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu] or any o!r assets ( ! issu] may disaffirm1 repudiate1 or reject ! obligation to turn ov] prop]ty or to cont9ue s]vic+ ! cov] pool z provid$ 9 subp>agraph 7,a74 7c7 ,default on cov]$ bonds ^u cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy 7#a7 ,corporation cons]vator%ip or receiv]%ip 7,a7 ,9 g5]al ,if ! ,corporation is appo9t$ z cons]vator or receiv] = an issu] ( cov]$ bonds be=e an uncur$ default results 9 ! creation ( an e/ate "u subsection 7b71 ! ,corporation z cons]vator or receiv] %all h an exclusive "r1 dur+ ! #a-ye> p]iod beg9n+ on ! date ( ! appo9tm5t1 to transf] any cov] pool own$ by ! issu] 9 its entirety1 toge!r ) all cov]$ bonds & relat$ obligations t are secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on ! cov] pool1 to ano!r eligible issu] t meets all conditions & requirem5ts specifi$ 9 ! relat$ transaction docum5ts4 ,! ,corporation z cons]vator or receiv] may n remove any asset f ! cov] pool1 except to ! ext5t o!rwise agre$ by a transf]ee t has assum$ ! cov]$ bond program pursuant to subp>agraph 7,c74 7,b7 ,obligations dur+ #a-ye> p]iod ,dur+ ! #a-ye> p]iod describ$ 9 subp>agraph 7,a71 ! ,corporation z cons]vator or receiv] %all fully & timely satisfy all monet>y & nonmonet>y obligations ( ! issu] "u all cov]$ bonds & ! relat$ transaction docum5ts & %all fully & timely cure all defaults by ! issu] 7o!r ?an its cons]vator%ip or receiv]%ip7 "u ! applicable cov]$ bond program1 9 ea* case1 until ! e>li] (-- 7i7 ! transf] ( ! applicable cov]$ bond program to ano!r eligible issu] z provid$ 9 subp>agraph 7,a72 or 7ii7 ! deliv]y to ! ,secret>y1 ! applicable cov]$ bond regulator1 ! applicable ind5ture tru/ee1 & ! applicable cov]$ bondhold]s ( a writt5 notice f ! ,corporation z cons]vator or receiv] elect+ to cease fur!r p]=mance "u ! applicable cov]$ bond program4 7,c7 ,assumption by transf]ee ,if ! ,corporation z cons]vator or receiv] transf]s a cov]$ bond program to ano!r eligible issu] )9 ! #a-ye> p]iod z provid$ 9 subp>agraph 7,a71 ! transf]ee %all take own]%ip ( ! applicable cov] pool & %all become fully liable on all cov]$ bonds & relat$ obligations ( ! issu] t are secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on ! cov] pool4 7#b7 ,o!r circum/ances ,an e/ate %all be imm$iately & automatically creat$ by op]ation ( law & %all exi/ & be adm9i/]$ sep>ate & ap>t f an issu] ( cov]$ bonds & any cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or e/ate 9 bankruptcy = ! issu] or any o!r assets ( ! issu]1 if-- 7,a7 a cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy1 o!r ?an ! ,corporation1 is appo9t$ = ! issu] be=e an uncur$ default results 9 ! creation ( an e/ate "u subsection 7b72 or 7,b7 9 ! case ( ! appo9tm5t ( ! ,corporation z cons]vator or receiv] z describ$ 9 p>agraph 7#a77;,a71 ! ,corporation z cons]vator or receiv]-- 7i7 does n complete ! transf] ( ! applicable cov]$ bond program to ano!r eligible issu] )9 ! #a-ye> p]iod z provid$ 9 p>agraph 7#a77;,a72 7ii7 deliv]s to ! ,secret>y1 ! applicable cov]$ bond regulator1 ! applicable ind5ture tru/ee1 & ! applicable cov]$ bondhold]s a writt5 notice elect+ to cease fur!r p]=mance "u ! applicable cov]$ bond program2 or 7iii7 fails to fully & timely satisfy all monet>y & nonmonet>y obligations ( ! issu] "u ! cov]$ bonds & ! relat$ transaction docum5ts or to fully & timely cure all defaults by ! issu] 7o!r ?an its cons]vator%ip or receiv]%ip7 "u ! applicable cov]$ bond program4 ,a sep>ate e/ate %all be creat$ = ea* affect$ cov]$ bond program4 7#c7 ,assets & liabilities ( e/ate ,any e/ate creat$ "u p>agraph 7#b7 %all be compris$ ( ! cov] pool 7includ+ ov]-collateralization 9 ! cov] pool7 t secures ! cov]$ bonds4 ,! cov] pool %all be imm$iately & automatically releas$ to & held by ! e/ate free & cle> ( any "r1 title1 int]e/1 or claim ( ! issu] or any cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu] or any o!r assets ( ! issu]4 ,! e/ate %all be fully liable on ! cov]$ bonds & all o!r cov]$ bonds & relat$ obligations ( ! issu] 7includ+ obligations "u relat$ d]ivative transactions7 t are secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on ! cov] pool :5 ! e/ate is creat$4 ,! e/ate %all n be liable on any obligation ( ! issu] t is n secur$ by a p]fect$ security int]e/ 9 or o!r p]fect$ li5 on ! cov] pool :5 ! e/ate is creat$4 ,no cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu] may *>ge or assess ! e/ate = any claim ( ! cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy or ! cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or e/ate 9 bankruptcy & may n obta9 or p]fect a security int]e/ 9 or o!r li5 on ! cov] pool to secure su* a claim4 7#d7 ,cont+5t claim ,any cont+5t claim aga9/ an issu] = a defici5cy ) respect to a cov]$ bond or relat$ obligation = :i* an e/ate has become liable "u p>agraph 7#c7 %all be all[$ z a provable claim 9 ! cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or bankruptcy case = ! issu]4 ,! cont+5t claim %all be e/imat$ by ! cons]vator1 receiv]1 liquidat+ ag5t1 or bankruptcy c\rt = purposes ( all[+ ! claim z a provable claim if await+ ! fix+ ( ! cont+5t claim w\ld unduly delay ! resolution ( ! cons]vator%ip1 receiv]%ip1 liquidat+ ag5cy1 or bankruptcy case4 7#e7 ,residual int]e/ 7,a7 ,issuance ( residual int]e/ ,^u ! creation ( an e/ate "u p>agraph 7#b71 & reg>dless ( :e!r any cont+5t claim describ$ 9 p>agraph 7#d7 becomes fix$ or is e/imat$1 a residual int]e/ 9 ! e/ate %all be imm$iately & automatically issu$ by op]ation ( law to ! cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu]4 7,b7 ,nature ( residual int]e/ ,! residual int]e/ "u subp>agraph 7,a7 %all-- 7i7 be an exempt$ security z describ$ 9 section #cee2 7ii7 repres5t ! "r to any surplus f ! cov] pool aft] ! cov]$ bonds & all o!r liabilities ( ! e/ate h be5 fully & irrevocably paid2 & 7iii7 be evid5c$ by a c]tificate execut$ by ! tru/ee ( ! e/ate4 7#f7 ,obligations ( issu] 7,a7 ,9 g5]al ,aft] ! creation ( an e/ate "u p>agraph 7#b71 ! issu] & its cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy %all-- 7i7 transf] to or at ! direction ( ! tru/ee = ! e/ate all prop]ty ( ! e/ate t is 9 ! possession or "u ! control ( ! issu] or its cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy1 includ+ all tangible or electronic books1 records1 files1 & o!r docum5ts or mat]ials relat+ to ! assets & liabilities ( ! e/ate2 & 7ii7 at ! election ( ! tru/ee or a s]vic] or adm9i/rator = ! e/ate1 cont9ue s]vic+ ! applicable cov] pool = #abj days aft] ! creation ( ! e/ate 9 return = a fair-m>ket-value fee1 z det]m9$ by ! tru/ee 9 consultation ) ! applicable cov]$ bond regulator1 t %all be payable f ! e/ate z an adm9i/rative exp5se4 7,b7 ,obligations absolute ,nei!r ! issu]1 :e!r act+ z debtor 9 possession or 9 any o!r capacity1 nor any cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy = ! issu] or any o!r assets ( ! issu] may disaffirm1 repudiate1 or reject ! obligation to turn ov] prop]ty or to cont9ue s]vic+ ! cov] pool z provid$ 9 subp>agraph 7,a74 7d7 ,adm9i/ration & resolution ( e/ates 7#a7 ,tru/ee1 s]vic]1 & adm9i/rator 7,a7 ,9 g5]al ,^u ! creation ( any e/ate "u subsection 7b77#a7 or 7c77#b71 ! applicable cov]$ bond regulator %all-- 7i7 appo9t ! tru/ee = ! e/ate2 7ii7 appo9t #a or m s]vic]s or adm9i/rators = ! cov] pool held by ! e/ate2 & 7iii7 give ! ,secret>y1 ! applicable ind5ture tru/ee1 ! applicable cov]$ bondhold]s1 & ! own] ( ! residual int]e/ writt5 notice ( ! creation ( ! e/ate4 7,b7 ,t]ms & conditions ( appo9tm5t ,all t]ms & conditions ( any appo9tm5t "u p>agraph 7#a71 includ+ ! t]ms & conditions relat+ to comp5sation1 %all con=m to ! requirem5ts ( ?is subtitle & ! ov]sight program & o!rwise %all be det]m9$ by ! applicable cov]$ bond regulator4 7,c7 ,qualification ,! applicable cov]$ bond regulator may require ! tru/ee or any s]vic] or adm9i/rator = an e/ate to po/ 9 favor ( ! ,unit$ ,/ates1 = ! b5efit ( ! e/ate1 a bond t is condition$ on ! fai?ful p]=mance ( ! duties ( ! tru/ee or ! s]vic] or adm9i/rator4 ,! cov]$ bond regulator %all det]m9e ! am\nt ( any bond requir$ "u ?is subp>agraph & ! suffici5cy ( ! surety on ! bond4 ,a proce$+ on a bond requir$ "u ?is subp>agraph may n be comm5c$ aft] two ye>s aft] ! date on :i* ! tru/ee or ! s]vic] or adm9i/rator 0 dis*>g$4 7,d7 ,p[]s & duties ( tru/ee ,! tru/ee = an e/ate is ! repres5tative ( ! e/ate &1 subject to ! provisions ( ?is subtitle1 has capacity to sue & be su$4 ,! tru/ee %all-- 7i7 adm9i/] ! e/ate 9 compliance ) ?is subtitle1 ! ov]sight program1 & ! relat$ transaction docum5ts2 7ii7 be acc\ntable = all prop]ty ( ! e/ate t is receiv$ by ! tru/ee2 7iii7 make a f9al report & file a f9al acc\nt ( ! adm9i/ration ( ! e/ate ) ! applicable cov]$ bond regulator2 & 7iv7 aft] ! e/ate has be5 fully adm9i/]$1 close ! e/ate4 7,e7 ,p[]s & duties ( s]vic] or adm9i/rator ,any s]vic] or adm9i/rator = an e/ate-- 7i7 %all-- 7,i7 collect1 realize on 7by liquidation or o!r means71 & o!rwise manage ! cov] pool held by ! e/ate = ! purpose ( w9d+ d[n ! relat$ cov] bond program 9 compliance ) ?is subtitle1 ! ov]sight program1 & ! relat$ transaction docum5ts & 9 a mann] consi/5t ) maximiz+ ! value & ! proce$s ( ! cov] pool2 7,,ii7 deposit or inve/ all proce$s & funds receiv$ 9 compliance ) ?is subtitle1 ! ov]sight program1 & ! relat$ transaction docum5ts & 9 a mann] consi/5t ) maximiz+ ! net return to ! e/ate1 tak+ into acc\nt ! safety ( ! deposit or inve/m5t2 & 7,,iii7 apply1 or direct ! tru/ee = ! e/ate to apply1 all proce$s & funds receiv$ & ! net return on any deposit or inve/m5t to make di/ributions 9 compliance ) p>agraphs 7#c7 & 7#d72 7ii7 may borr[ funds or o!rwise obta9 cr$it1 = ! b5efit ( ! e/ate1 9 compliance ) p>agraph 7#b7 on a secur$ or unsecur$ basis & on a priority1 p>i passu1 or subord9at$ basis2 7iii7 %all1 at ! times & 9 ! mann] requir$ by ! applicable cov]$ bond regulator1 submit to ! cov]$ bond regulator1 ! ,secret>y1 ! applicable ind5ture tru/ee1 ! applicable cov]$ bondhold]s1 ! own] ( ! residual int]e/1 & any o!r p]son designat$ by ! cov]$ bond regulator1 reports t describe ! activities ( ! s]vic] or adm9i/rator on behalf ( ! e/ate1 ! p]=mance ( ! cov] pool held by ! e/ate1 & di/ributions made by ! e/ate2 & 7iv7 %all assi/ ! tru/ee 9 prep>+ ! f9al report & ! f9al acc\nt ( ! adm9i/ration ( ! e/ate4 7,f7 ,sup]vision ( tru/ee1 s]vic]1 & adm9i/rator ,! applicable cov]$ bond regulator %all sup]vise ! tru/ee & any s]vic] or adm9i/rator = an e/ate4 ,! cov]$ bond regulator %all require t all reports submitt$ "u subp>agraph 7,e77iii7 d n conta9 any untrue /atem5t ( a mat]ial fact & d n omit to /ate a mat]ial fact necess>y 9 ord] to make ! /atem5ts made1 9 light ( ! circum/ances "u :i* !y are made1 n mislead+4 7,g7 ,removal & replacem5t ( tru/ee1 s]vic]1 & adm9i/rator ,if ! cov]$ bond regulator det]m9es t x is 9 ! be/ int]e/s ( an e/ate1 ! cov]$ bond regulator may remove or replace ! tru/ee or any s]vic] or adm9i/rator = ! e/ate4 ,! removal ( ! tru/ee or any s]vic] or adm9i/rator does n abate any p5d+ action or proce$+ involv+ ! e/ate1 & any successor or o!r tru/ee1 s]vic]1 or adm9i/rator %all be sub/itut$ z a p>ty 9 ! action or proce$+4 7,h7 ,pr(essionals ,! tru/ee or any s]vic] or adm9i/rator = an e/ate may employ #a or m attorneys1 acc\ntants1 apprais]s1 auctione]s1 or o!r pr(essional p]sons to repres5t or assi/ ! tru/ee or ! s]vic] or adm9i/rator 9 c>ry+ out its duties4 ,! employm5t ( any pr(essional p]son & all t]ms & conditions ( employm5t1 includ+ ! t]ms & conditions relat+ to comp5sation1 %all con=m to ! requirem5ts ( ?is subtitle & ! ov]sight program & o!rwise %all be subject to ! approval ( ! applicable cov]$ bond regulator4 7,i7 ,approv$ fees & exp5ses ,unless o!rwise provid$ 9 ! applicable t]ms & conditions ( appo9tm5t or employm5t1 all approv$ fees & exp5ses ( ! tru/ee1 any s]vic] or adm9i/rator1 or any pr(essional p]son employ$ by ! tru/ee or any s]vic] or adm9i/rator %all be payable f ! e/ate z adm9i/rative exp5ses4 7,j7 ,actions by or on behalf ( e/ate ,! tru/ee or any s]vic] or adm9i/rator = an e/ate may comm5ce or cont9ue judicial1 adm9i/rative1 or o!r actions1 9 ! "n ( ! e/ate or 9 its own "n on behalf ( ! e/ate1 = ! purpose ( collect+1 realiz+ on1 or o!rwise manag+ ! cov] pool held by ! e/ate or ex]cis+ its o!r p[]s or duties on behalf ( ! e/ate4 7,k7 ,actions aga9/ e/ate ,no c\rt may issue an atta*m5t or execution on any prop]ty ( an e/ate4 ,except at ! reque/ ( ! applicable cov]$ bond regulator or z o!rwise provid$ 9 ?is subp>agraph or subp>agraph 7,j71 no c\rt may take any action to re/ra9 or affect ! resolution ( an e/ate "u ?is subtitle4 ,no p]son 7includ+ ! applicable ind5ture tru/ee & any applicable cov]$ bondhold]7 may comm5ce or cont9ue any judicial1 adm9i/rative1 or o!r action aga9/ ! e/ate1 ! tru/ee1 or any s]vic] or adm9i/rator or take any o!r act to affect ! e/ate1 ! tru/ee1 or any s]vic] or adm9i/rator t is n expressly p]mitt$ by ?is subtitle1 ! ov]sight program1 & ! relat$ transaction docum5ts1 except = a judicial or adm9i/rative action to compel ! release ( funds t-- 7i7 are available to ! e/ate2 7ii7 are p]mitt$ to be di/ribut$ "u ?is subtitle & ! ov]sight program2 & 7iii7 are p]mitt$ & requir$ to be di/ribut$ "u ! relat$ transaction docum5ts & any contracts execut$ by or on behalf ( ! e/ate4 7,l7 ,sov]eign immunity ,except 9 connection ) a gu>antee provid$ "u p>agraph 7#d7 or any o!r contract execut$ by ! applicable cov]$ bond regulator "u ?is section #ced1 ! ,secret>y & ! cov]$ bond regulator %all be entitl$ to sov]eign immunity 9 c>ry+ out ! provisions ( ?is subtitle4 7#b7 ,borr[+s & cr$it 7,a7 ,9 g5]al ,any s]vic] or adm9i/rator = an e/ate creat$ "u subsection 7b77#a7 or 7c77#b7 may borr[ funds or o!rwise obta9 cr$it1 on behalf ( & = ! b5efit ( ! e/ate1 f any p]son 9 compliance ) ?is p>agraph 7#b7 solely = ! purpose ( provid+ liquidity 9 ! case ( tim+ mismat*es among ! assets & ! liabilities ( ! e/ate4 ,except ) respect to an und]writ]1 section #e ( ! ,securities ,act ( #aicc1 ! ,tru/ ,ind5ture ,act ( #aici1 & any ,/ate or local law requir+ regi/ration = an (f] or sale ( a security or regi/ration or lic5s+ ( an issu] (1 und]writ] (1 or brok] or deal] 9 a security does n apply to ! (f] or sale "u ?is p>agraph 7#b7 ( a security t is n an equity security4 7,b7 ,conditions ,a s]vic] or adm9i/rator may borr[ funds or o!rwise obta9 cr$it "u subp>agraph 7,a7-- 7i7 on t]ms af=d+ ! l5d] only claims or li5s t are fully subord9at$ to ! claims & int]e/s ( ! applicable ind5ture tru/ee & ! applicable cov]$ bondhold]s & all o!r claims aga9/ & int]e/s 9 ! e/ate1 except = ! residual int]e/1 if ! s]vic] or adm9i/rator c]tifies to ! applicable cov]$ bond regulator t1 9 ! bus9ess judgm5t ( ! s]vic] or adm9i/rator1 ! borr[+ or cr$it is 9 ! be/ int]e/s ( ! e/ate & is expect$ to maximize ! value & ! proce$s ( ! cov] pool held by ! e/ate2 or 7ii7 on t]ms af=d+ ! l5d] claims or li5s t h priority ov] or are p>i passu ) ! claims or int]e/s ( ! applicable ind5ture tru/ee or ! applicable cov]$ bondhold]s or o!r claims aga9/ or int]e/s 9 ! e/ate1 if-- 7,i7 ! s]vic] or adm9i/rator c]tifies to ! applicable cov]$ bond regulator t1 9 ! bus9ess judgm5t ( ! s]vic] or adm9i/rator1 ! borr[+ or cr$it is 9 ! be/ int]e/s ( ! e/ate & is expect$ to maximize ! value & ! proce$s ( ! cov] pool held by ! e/ate2 & 7,,ii7 ! applicable cov]$ bond regulator au?orizes ! borr[+ or cr$it4 7,c7 ,limit$ liability ,a s]vic] or adm9i/rator %all n be liable = any error 9 bus9ess judgm5t :5 borr[+ funds or o!rwise obta9+ cr$it "u ?is p>agraph 7#b7 unless ! s]vic] or adm9i/rator act$ 9 bad fai? or 9 willful disreg>d ( its duties4 7,d7 ,limits on borr[+s & cr$it ,funds may n be borr[$ or cr$it o!rwise obta9$ "u subp>agraph 7,a7-- 7i7 = ! purpose ( inve/+ 9 additional portfolios ( eligible assets ?r\gh ! issuance ( new cov]$ bonds2 or 7ii7 o!rwise = a purpose o!r ?an w9d+ d[n ! relat$ cov]$ bond program 9 compliance ) ?is ,act1 ! ov]sight program1 & ! relat$ transaction docum5ts4 7,e7 ,/udy on borr[+s & cr$it ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy on :e!r ! ,f$]al res]ve banks %\ld be au?oriz$ to l5d funds or o!rwise ext5d cr$it to an e/ate "u ?is p>agraph 7#b7 &1 if s1 :at conditions & limits %\ld be e/abli%$ to mitigate any risk t ! ,unit$ ,/ates ,gov]nm5t c\ld absorb cr$it losses on ! cov] pool held by ! e/ate4 ,! ,comptroll] ,g5]al %all submit a report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives on ! results ( ! /udy n lat] ?an #f mon?s aft] ! date ( enactm5t ( ?is ,act4 7#c7 ,di/ributions by e/ate ,all paym5ts or o!r di/ributions by an e/ate %all be made at ! times1 9 ! am\nts1 & 9 ! mann] set =? 9 ! cov]$ bonds1 ! relat$ transaction docum5ts1 & any contracts execut$ by or on behalf ( ! e/ate 9 compliance ) ?is subtitle & ! ov]sight program4 ,to ! ext5t t ! relative priority ( ! liabilities ( ! e/ate are n specifi$ 9 or o!rwise asc]ta9able f _! t]ms1 di/ributions %all be made on ea* di/ribution date "u ! cov]$ bonds1 ! relat$ transaction docum5ts1 or any contracts execut$ by or on behalf ( ! e/ate-- 7,a7 fir/1 to pay accru$ & unpaid sup]priority claims "u p>agraph 7#b77;,b77ii72 7,b7 second1 to pay accru$ & unpaid adm9i/rative exp5se claims "u p>agraph 7#a77;,i71 p>agraph 7#b77;,b77ii71 section #ced7;b77#e77;,a71 or section #ced7;c77#f77;,a72 7,c7 ?ird1 to pay-- 7i7 accru$ & unpaid claims "u ! cov]$ bonds & ! relat$ transaction docum5ts accord+ to _! t]ms2 & 7ii7 accru$ & unpaid p>i passu claims "u p>agraph 7#b77;,b77ii72 & 7,d7 f\r?1 to pay accru$ & unpaid subord9at$ claims "u p>agraph 7#b77;,b77i74 7#d7 ,di/ributions on residual int]e/ ,aft] all o!r claims aga9/ & int]e/s 9 an e/ate h be5 fully & irrevocably paid or defeas$1 ! tru/ee %all or %all cause a s]vic] or adm9i/rator to di/ribute ! rema9d] ( ! e/ate to or at ! direction ( ! own] ( ! residual int]e/4 ,no int]im di/ribution on ! residual int]e/ may be made be=e t "t1 unless ! applicable cov]$ bond regulator-- 7,a7 approves ! di/ribution aft] det]m9+ t all o!r claims aga9/ & int]e/s 9 ! e/ate w be fully1 timely1 & irrevocably paid accord+ to _! t]ms2 & 7,b7 provides an indemnity1 = ! b5efit ( ! e/ate1 assur+ t all o!r claims aga9/ & int]e/s 9 ! e/ate w be fully1 timely1 & irrevocably paid accord+ to _! t]ms4 7#e7 ,clos+ ( e/ate ,aft] an e/ate has be5 fully adm9i/]$1 ! tru/ee %all close ! e/ate &1 except z o!rwise direct$ by ! applicable cov]$ bond regulator1 %all de/roy all records ( ! e/ate4 7#f7 ,no loss to taxpay]s ,taxpay]s %all be> no losses f ! resolution ( an e/ate "u ?is subtitle4 ,to ! ext5t t ! ,secret>y & ! ,corporation jo9tly det]m9e t ! ,deposit ,insurance ,fund incurr$ actual losses t are high] because ! cov]$ bond program ( an insur$ depository in/itution 0 subject to resolution "u ?is subtitle r ?an z "p ( ! receiv]%ip ( ! in/itution "u ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 ! ,corporation may ex]cise ! p[]s available "u section #g7;b7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahag7;b77 to recov] an am\nt equal to ^? losses aft] consult+ ) ! ,secret>y4 #cee4 ,securities law provisions 7a7 ,exi/+ exemptions applicable to cov]$ bonds 7#a7 ,treatm5t ( c]ta9 banks & o!r entities ,any cov]$ bond issu$ or gu>ante$ by a bank or by an eligible issu] describ$ 9 section #ceb7i77;,d7 & sponsor$ solely by #a or m banks = ! sole purpose ( issu+ cov]$ bonds is & %all be treat$ z a security issu$ or gu>ante$ by a bank "u section #c7;a77#b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#b771 section #c7;c77#c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77#c771 & section #cjd7;a77#d77;,a7 ( ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #gg;ddd7a77#d77;,a774 ,no cov]$ bond issu$ or gu>ante$ by a bank or by an eligible issu] describ$ 9 section #ceb7i77;,d7 & sponsor$ solely by #a or m banks = ! sole purpose ( issu+ cov]$ bonds %all be treat$ z an asset-back$ security 7z def9$ 9 section #c ( ! ,securities & ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c774 ,ea* cov]$ bond regulator = #a or m banks %all adopt disclosure & report+ regulations = (f]s or sales ( cov]$ bonds by a bank or an eligible issu] describ$ 9 ?is p>agraph4 ,su* regulations %all provide = uni=m & consi/5t /&>ds = su* cov]$ bond issu]s1 to ! ext5t possible1 & %all be consi/5t ) exi/+ regulations gov]n+ (f]s or sales ( nonconv]tible debt4 7#b7 ,treatm5t ( c]ta9 associations & coop]ative banks ,any cov]$ bond issu$ by an entity describ$ 9 section #c7;a77#e77;,a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#e77;,a77 or by an eligible issu] describ$ 9 section #ceb7i77;,d7 & sponsor$ solely by #a or m su* entities = ! sole purpose ( issu+ cov]$ bonds is & %all be treat$ z a security issu$ by su* an entity "u section #c7;a77#e77;,a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#e77;,a771 section #c7;c77#c7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77#c771 & section #cjd7;a77#d77;,a7 ( ! ,tru/ ,ind5ture ,act ( #aici 7#ae ,u4,s4,c4 #gg;ddd7a77#d77;,a774 ,no cov]$ bond issu$ by an entity describ$ 9 section #c7;a77#e77;,a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#e77;,a77 or by an eligible issu] describ$ 9 section #ceb7i77;,d7 & sponsor$ solely by #a or m su* entities = ! sole purpose ( issu+ cov]$ bonds %all be treat$ z an asset-back$ security 7z def9$ 9 section #c ( ! ,securities & ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c774 ,ea* cov]$ bond regulator = #a or m entities describ$ 9 section #c7;a77#e77;,a7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#e77;,a77 %all adopt1 z "p ( ! securities regulations ( ! cov]$ bond regulator1 a sep>ate s*eme ( regi/ration1 disclosure1 & report+ obligations & exemptions = (f]s or sales ( cov]$ bonds t are describ$ 9 ?is p>agraph4 ,su* regulations %all provide = uni=m & consi/5t /&>ds = su* cov]$ bond issu]s1 to ! ext5t possible1 & %all be consi/5t ) regulations gov]n+ (f]s or sales ( simil> securities4 7#c7 ,con/ruction ,no provision ( ?is subtitle1 includ+ p>agraph 7#a7 or 7#b71 may be con/ru$ or appli$ 9 a mann] t impairs or limits any o!r exemption t is available "u applicable securities laws4 7b7 ,exemptions = e/ates ,any e/ate t is or may be creat$ "u section #ced7;b77#a7 or #ced7;c77#b7 %all be exempt f all securities laws b-- 7#a7 %all be subject to ! report+ requirem5ts e/abli%$ by ! applicable cov]$ bond regulator "u section #ced7;d77#a77;,e77iii72 & 7#b7 %all succe$ to any requirem5t ( ! issu] to file su* p]iodic in=mation1 docum5ts1 & reports 9 respect ( ! cov]$ bonds z specifi$ 9 section #ac7;a7 ( ! ,securities & ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghm7a77 or rules e/abli%$ by an appropriate ,f$]al bank+ ag5cy4 7c7 ,exemptions = residual int]e/s ,any residual int]e/ 9 an e/ate t is or may be creat$ "u section #ced7;b77#a7 or #ced7;c77#b7 %all be exempt f all securities laws4 #cef4 ,miscellane\s provisions 7a7 ,dome/ic securities ,section #ajf7;a77#a7 ( ! ,second>y ,mortgage ,m>ket ,enhancem5t ,act ( #aihd 7#ae ,u4,s4,c4 #ggr-#a7;a77#a77 is am5d$-- 7#a7 9 subp>agraph 7,c71 by /rik+ or at ! end2 7#b7 9 subp>agraph 7,d71 by add+ or at ! end2 & 7#c7 by ins]t+ aft] subp>agraph 7,d7 ! foll[+3 7,e7 cov]$ bonds 7z def9$ 9 section #ceb ( ! ,unit$ ,/ates ,cov]$ ,bond ,act ( #bjac71 4 7b7 ,tax treatm5t ( cov]$ bond programs 7#a7 ,treatm5t ( e/ates creat$ "u cov]$ bond programs ,section #ggja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7p7 z subsection 7q7 & by ins]t+ aft] subsection 7o7 ! foll[+ new subsection3 7p7 ,treatm5t ( e/ates creat$ "u cov]$ bond programs ,= purposes ( ?is title-- 7#a7 ,treatm5t z disreg>d$ entity ,any e/ate creat$ ) respect to a cov]$ bond program-- 7,a7 %all n be treat$ z an entity subject to taxation sep>ate f ! own] ( ! residual int]e/ ) respect to su* e/ate2 & 7,b7 %all be treat$ z a disreg>d$ entity t is own$ by ! own] ( su* residual int]e/4 7#b7 ,limitations on treatm5t z disreg>d$ entity 7,a7 ,maximum duration ,p>agraph 7#a7 %all n apply ) respect to an e/ate aft] ! e>li] (-- 7i7 ! end ( ! #cj-ye> p]iod beg9n+ on ! date ( ! creation ( su* e/ate2 or 7ii7 ! end ( ! #ahj-;day p]iod beg9n+ on ! date ( ! f9al paym5t on ! la/ out/&+ cov]$ bond t is secur$ by ! cov] pool held by su* e/ate4 7,b7 ,re/rictions on own] ( residual int]e/ ,p>agraph 7#a7 %all apply ) respect to an e/ate = any p]iod only if-- 7i7 at no "t dur+ su* p]iod does m ?an "o p]son hold a residual int]e/ ) respect to su* e/ate2 7ii7 su* p]son is-- 7,i7 subject to tax "u subtitle ,a on ! net income ( su* e/ate = ! taxable ye> ( su* p]son :i* includes su* p]iod2 or 7,,ii7 a cons]vator1 receiv]1 liquidat+ ag5t1 or tru/ee 9 bankruptcy ) respect to ! issu] = su* p]iod2 & 7iii7 su* p]son is n a regulat$ inve/m5t company 7z def9$ 9 section #hea7 or real e/ate inve/m5t tru/ 7z def9$ 9 section #hef7 = ! taxable ye> :i* includes su* p]iod4 7#c7 ,treatm5t z corporation ,) respect to any p]iod = :i* p>agraph 7#a7 does n apply to an e/ate creat$ ) respect to a cov]$ bond program1 su* e/ate %all be treat$ z a corporation4 7#d7 ,coord9ation ) rules = taxable mortgage pools ,no portion ( any e/ate creat$ ) respect to a cov]$ bond program %all be treat$ z a taxable mortgage pool = purposes ( subsection 7i7 dur+ any p]iod = :i* p>agraph 7#a7 applies to su* e/ate4 7#e7 ,def9itions ,= purposes ( ?is subsection1 ! t]ms cov]$ bond program1 cov] pool1 e/ate1 & residual int]e/ %all ea* h ! same respective mean+s z :5 us$ = purposes ( ! ,unit$ ,/ates ,cov]$ ,bond ,act ( #bjac4 7#f7 ,cross ref]5ces 7,a7 ,= nonrecognition ) respect to c]ta9 transf]s "u cov]$ bond programs1 see section #ajja7;f74 7,b7 ,= excise tax on e/ates creat$ "u cov]$ bond programs by reason ( default1 see section #ddge4 4 7#b7 ,treatm5t ( c]ta9 transf]s "u cov]$ bond programs ,section #ajja ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,c]ta9 transf]s "u cov]$ bond programs 7#a7 ,9 g5]al ,) respect to any cov]$ bond program1 none ( ! foll[+ %all be treat$ z a taxable ex*ange ( a cov]$ bond to a cov]$ bond hold] or to a notional pr9cipal contract c\nt]p>ty3 7,a7 ,! transf] ( all ( ! assets & liabilities ( su* program4 7,b7 ,! creation ( an e/ate ) respect to su* program4 7,c7 ,! transf] ( ! residual int]e/ 9 su* e/ate4 7#b7 ,def9itions ,= purposes ( ?is subsection1 ! t]ms cov]$ bond program1 e/ate1 & residual int]e/ %all ea* h ! same respective mean+s z :5 us$ = purposes ( ! ,unit$ ,/ates ,cov]$ ,bond ,act ( #bjac4 4 7#c7 ,excise tax on e/ates creat$ "u cov]$ bond programs by reason ( default 7,a7 ,9 g5]al ,*apt] #cf ( su* ,code is am5d$ by ins]t+ aft] sub*apt] ,b ! foll[+ new sub*apt]3 ,c ,tax on c]ta9 e/ates creat$ "u cov]$ bond programs ,sec4 #ddge4 ,tax on e/ates creat$ "u cov]$ bond programs by reason ( default4 #ddge4 ,tax on e/ates creat$ "u cov]$ bond programs by reason ( default 7a7 ,imposition ( tax ,a tax is h]eby impos$ on ! creation ( an e/ate by op]ation ( section #ced7;b77#a7 ( ! ,unit$ ,/ates ,cov]$ ,bond ,act ( #bjac4 7b7 ,am\nt ( tax ,! tax impos$ "u subsection 7a7 ) respect to ! creation ( any e/ate %all be equal to #a p]c5t ( ! pr9cipal am\nt ( ! cov]$ bonds secur$ by ! cov] pool ) respect to su* e/ate det]m9$ z ( ! close ( ! day be=e ! creation ( su* e/ate4 7c7 ,by :om paid ,! tax impos$ "u subsection 7a7 %all be paid by ! issu] ( ! cov]$ bonds ) respect to ! cov]$ bond program ) respect to :i* ! e/ate ref]r$ to 9 subsection 7a7 is creat$4 7d7 ,no effect on cov] pool ,! tax impos$ "u subsection 7a7 %all n r$uce ! assets ( ! cov] pool & no liability = su* tax %all atta* to ! e/ate or to ! assets ( ! cov] pool4 7e7 ,refund 9 case ( bankruptcy1 etc ,if an issu] liable = ! tax impos$ "u subsection 7a7 ent]s cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy dur+ ! #e-ye> p]iod beg9n+ on ! date ( ! creation ( ! e/ate ref]r$ to 9 subsection 7a71 su* liability %all be ext+ui%$ & any su* tax paid %all refund$ to ! issu] imm$iately ^u su* ev5t4 7f7 ,def9itions ,= purposes ( ?is section1 ! t]ms cov]$ bond program1 cov] pool1 & e/ate %all ea* h ! same respective mean+s z :5 us$ = purposes ( ! ,unit$ ,/ates ,cov]$ ,bond ,act ( #bjac4 4 7,b7 ,cl]ical am5dm5t ,! table ( sub*apt]s = *apt] #cf ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to sub*apt] ,b ! foll[+ new item3 ,sub*apt] ,c--,tax on c]ta9 e/ates creat$ "u cov]$ bond programs 4 7#d7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to e/ates creat$1 & transf]s made1 aft] ! date ( ! enactm5t ( ?is ,act4 7c7 ,/ate & local taxes ,! ,secret>y may promulgate regulations "u ?is subtitle t are simil> to ! provisions ( section #cdf ( title #aa1 ,unit$ ,/ates ,code1 includ+ regulations to provide t-- 7#a7 if an e/ate creat$ "u section #ced7;b77#a7 or #ced7;c77#b7 is n treat$ z an entity subject to taxation sep>ate f ! own] ( ! residual int]e/ = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf 7#bf ,u4,s4,c4 #a et seq471 no sep>ate taxable entity %all be creat$ ) respect to ! e/ate = purposes ( any ,/ate or local law impos+ a tax on or measur$ by income2 & 7#b7 if a transf] or assumption ( an asset or liability to or by an e/ate or an eligible issu] "u section #ced7;b7 or #ced7;c7 does n cause or con/itute an ev5t 9 :i* ga9 or loss is recogniz$ "u section #ajja ( ! ,int]nal ,rev5ue ,code ( #aihf 7#bf ,u4,s4,c4 #ajja71 ! transf] or assumption %all n cause or con/itute a disposition = purposes ( any provision assign+ tax consequ5ces to a disposition 9 connection ) any ,/ate or local law impos+ a tax on or measur$ by income4 7d7 ,no conflict ,! provisions ( ?is subtitle %all apply1 not)/&+ any provision ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 title #aa1 ,unit$ ,/ates ,code1 title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq471 or any o!r provision ( ,f$]al law ) respect to cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy4 ,no provision ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 title #aa1 ,unit$ ,/ates ,code1 title ,,ii ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #echa et seq471 or any o!r provision ( ,f$]al law ) respect to cons]vator%ip1 receiv]%ip1 liquidation1 or bankruptcy may be con/ru$ or appli$ 9 a mann] t defeats or int]f]es ) ! purpose or op]ation ( ?is subtitle4 7e7 ,annual report to ,congress ,! cov]$ bond regulators %all1 annually-- 7#a7 submit a jo9t report to ! ,congress describ+ ! curr5t /ate ( ! cov]$ bond m>ket 9 ! ,unit$ ,/ates2 & 7#b7 te/ify on ! curr5t /ate ( ! cov]$ bond m>ket 9 ! ,unit$ ,/ates be=e ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate4 ,,iv ,remov+ ,b>ri]s to ,new ,inve/m5t #dja4 ,basel ,,iii impact /udy 7a7 ,9 g5]al ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,f$]al ,deposit ,insurance ,corporation1 & ! ,(fice ( ! ,comptroll] ( ! ,curr5cy 79 ?is section collectively ref]r$ to z ! ,f$]al bank+ ag5cies7 %all conduct an empirical /udy on ! ,regulatory ,capital ,rules f9aliz$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve on ,july #b1 #bjac 7,f9al ,rule7 9 accordance ) subsection 7b7 & release a f9al report 9 accordance ) subsection 7d74 7b7 ,issues ,to be /udi$ ,! /udy requir$ "u subsection 7a7 %all include-- 7#a7 ! pot5tial impact ( ! ,f9al ,rule on ! f9ancial s]vices sector ( ! ,unit$ ,/ates1 & specifically cov]$ f9ancial in/itutions1 includ+ *anges to requir$ capital levels 9 ! aggregate1 p] asset class & in/itution size2 7#b7 ! long-t]m pot5tial impact ( ! ,f9al ,rule1 includ+ *anges to ! curr5t risk weight framework2 7#c7 ! pot5tial co/ & complexity ( ! ,f9al ,rule = cov]$ f9ancial in/itutions2 7#d7 ! pot5tial indicators ( cov]$ f9ancial in/itutions hav+ to ma9ta9 high] lev]age capital ratios & high] total risk-bas$ capital ratios ?an non-cov]$ f9ancial in/itutions1 & if su* capital levels are comm5surate ) high] hi/orical losses or great] risk2 7#e7 :e!r ! ,f9al ,rule w cause capital levels at cov]$ f9ancial in/itutions to fluctuate ) m frequ5cy or by great] am\nts ?an ! curr5t capital rules & :at1 if any1 safety & s\ndness issues su* fluctuations raise = cov]$ f9ancial in/itutions or ! f9ancial sy/em includ+ :e!r su* fluctuations w make ! ,unit$ ,/ates f9ancial sy/em m or less safe ?an ! curr5t rules2 7#f7 :e!r ! ,f9al ,rule w result 9 ! discont9uation ( ! use ( c]ta9 risk managem5t tools by cov]$ f9ancial in/itutions & !reby und]m9e ! safety & s\ndness ( cov]$ f9ancial in/itutions & ! f9ancial sy/em2 7#g7 ! cumulative impact t ! ,f9al ,rule w h on-- 7,a7 ,unit$ ,/ates economic gr[?1 9 g5]al1 & specifically1 on ! ,gross ,dome/ic ,product2 7,b7 ! availability & co/ ( cr$it1 bo? g5]ally & 9 l[- & mod]ate-income areas2 7,c7 ! availability & co/ ( resid5tial mortgages & home equity l9es ( cr$it1 auto loans1 /ud5t loans1 & comm]cial loans1 includ+ small bus9ess loans2 & 7,d7 regulatory capital levels1 capital quality1 asset quality1 & risk managem5t at cov]$ f9ancial in/itutions4 7c7 ,volunt>y p>ticipation ,any f9ancial in/itution may volunt>ily provide in=mation = ! /udy ^u ! reque/ ( ! ,f$]al bank+ ag5cies1 b may n be requir$ to provide su* in=mation4 7d7 ,f9al ,report 7#a7 ,availability to ! public ,a f9al report on ! complet$ /udy requir$ "u subsection 7a7 %all be made available to ! public = notice & comm5t = a p]iod ( n less ?an #ij days4 7#b7 ,report to ,congress ,! ,f$]al bank+ ag5cies %all issue a report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 & te/ify be=e su* committees1 on ! results ( ! /udy requir$ "u subsection 7a7 & a summ>y ( ! comm5ts receiv$ "u p>agraph 7#a74 7#c7 ,review ,! ,f$]al bank+ ag5cies %all review any comm5ts submitt$ "u p>agraphs 7#a7 & 7#b7 & consid]ations provid$ pursuant to p>agraphs 7#a7 & 7#b71 & foll[+ su* review1 %all prescribe new rules1 if appropriate1 bas$ on ! results ( ! /udy & su* comm5ts & consid]ations4 ,not)/&+ any o!r provision ( law1 a new rulemak+ foll[+ su* comm5t p]iod %all include an additional comm5t p]iod ( n less ?an #ij days4 7e7 ,delay ( rulemak+ ,! ,f9al ,rule may n take effect = a cov]$ f9ancial in/itution until ! lat] (-- 7#a7 #b ye>s aft] ! date ( ! enactm5t ( ?is ,act2 & 7#b7 #a ye> aft] ! promulgation ( revis$ rules 9 accordance ) subsection 7d77#c7 or a det]m9ation by ! ,f$]al bank+ ag5cies t no revis$ rules are ne$$ 9 accordance ) t subsection1 :i* %all be publi%$ 9 ! ,f$]al ,regi/]4 7f7 ,def9ition ( cov]$ f9ancial in/itution ,= purposes ( ?is section1 ! t]m cov]$ f9ancial in/itution means any bank1 ?rift1 bank hold+ company1 & sav+s & loan hold+ company 7z su* t]ms are def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act7 o!r ?an a bank1 ?rift1 bank hold+ company1 or sav+s & loan hold+ company id5tifi$ by ! ,f9ancial ,/ability ,bo>d z a global sy/emically important bank1 z ( ! date ( ! enactm5t ( ?is ,act4 #djb4 ,basel ,,iii ,liquidity ,cov]age ,ratio am5dm5ts 7a7 ,9 g5]al ,9 implem5t+ ! ,basel ,,iii ,liquidity ,cov]age ,ratio am5dm5ts1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,f$]al ,deposit ,insurance ,corporation1 & ! ,(fice ( ! ,comptroll] ( ! ,curr5cy may n require1 z a condition = /atus z a high quality liquid asset1 t resid5tial mortgage-back$ securities be collat]aliz$ only by 7or be collat]aliz$ by a c]ta9 p]c5tage (7 full rec\rse mortgage loans4 7b7 ,def9ition ,! t]m ,basel ,,iii ,liquidity ,cov]age ,ratio am5dm5ts means ! am5dm5ts to ! ,liquidity ,cov]age ,ratio endors$ by ! ,basel ,committee on ,bank+ ,sup]vision on ,janu>y #f1 #bjac4 #djc4 ,def9ition ( po9ts & fees 7a7 ,am5dm5t to section #ajc ( ,,tila ,section #ajc7;bb77#d7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afjb7;bb77#d77 is am5d$-- 7#a7 by /rik+ p>agraph 7#a77;,b7 & ins]t+ p>agraph 7#a77;,a7 & section #abi;,c2 7#b7 9 subp>agraph 7,a71 by /rik+ except int]e/ or ! "t-price diff]5tial & ins]t+ ! foll[+3 except-- 7i7 int]e/ & ! "t-price diff]5tial2 & 7ii7 ! am\nt ( any loan level price adju/m5t paym5t set by ! ,f$]al ,national ,mortgage ,association1 ! ,f$]al ,home ,loan ,mortgage ,corporation1 ! ,f$]al ,h\s+ ,adm9i/ration1 or simil> gov]nm5tal entity or gov]nm5t-sponsor$ ent]prise 2 7#c7 by /rik+ subp>agraph 7,b7 & ins]t+ ! foll[+ new subp>agraph3 7,b7 all comp5sation paid directly by a consum] to a mortgage orig9ator1 includ+ a mortgage orig9ator t is also ! cr$itor 9 a table-fund$ transaction1 b n includ+ comp5sation paid by a mortgage orig9ator or a cr$itor to an individual employ$ by ! mortgage orig9ator or cr$itor 2 7#d7 9 subp>agraph 7,c7-- 7,a7 by ins]t+ & insurance aft] taxes2 7,b7 9 clause 7ii71 by ins]t+ 1 except z reta9$ by a cr$itor or its affiliate z a result ( _! p>ticipation 9 an affiliat$ bus9ess arrangem5t 7z def9$ 9 section #b7g7 ( ! ,real ,e/ate ,settlem5t ,proc$ures ,act ( #aigd 7#ab ,u4,s4,c4 #bfjb7g77 aft] comp5sation2 & 7,c7 by /rik+ clause 7iii7 & ins]t+ ! foll[+3 7iii7 ! *>ge is-- 7,i7 a bona fide ?ird-p>ty *>ge n reta9$ by ! mortgage orig9ator1 cr$itor1 or an affiliate ( ! cr$itor or mortgage orig9ator2 or 7,,ii7 a *>ge set =? 9 section #ajf7;e77#a72 2 & 7#e7 9 subp>agraph 7,d7-- 7,a7 by /rik+ accid5t12 & 7,b7 by /rik+ or any paym5ts & ins]t+ & any paym5ts4 7b7 ,am5dm5t to section #abi;,c ( ,,tila ,section #abi;,c ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afci;c7 is am5d$-- 7#a7 9 subsection 7a77#e77;,c71 by /rik+ #ajc & all t foll[s ?r\gh or mortgage orig9ator & ins]t+ #ajc7;bb77#d72 & 7#b7 9 subsection 7b77#b77;,c77i71 by /rik+ #ajc & all t foll[s ?r\gh or mortgage orig9ator7 & ins]t+ #ajc7;bb77#d74 #djd4 ,exclusion ( issu]s ( asset-back$ securities f cov]$ funds ,section #ac7;h77#b7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahea7;h77#b77 is am5d$-- 7#a7 by /rik+ private equity fund mean an issu] & ins]t+ ! foll[+3 private equity fund-- 7,a7 mean an issu] 2 7#b7 by /rik+ ! p]iod & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7,b7 does n include an issu]1 if su* issu] is describ$ "u subp>agraph 7,a7 solely because su* issu] issues asset-back$ securities 7z su* t]m is def9$ "u section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a7774 4 #dje4 ,susp5sion ( regulation ,,ab ,,ii rulemak+ ,section #d ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;d7 is am5d$-- 7#a7 by r$esignat+ ! two subsections foll[+ subsection 7a7 7ea* designat$ z subsection 7b77 z subsections 7c7 & 7d71 respectively2 & 7#b7 by ins]t+ aft] subsection 7a7 ! foll[+ new subsection3 7b7 ,) respect to p>agraphs 7#a7 & 7#b7 ( subsection 7a71 or any rule or regulation promulgat$ !reund] or 9 fur!rance !re( 7includ+ ,rule #add1 ,rule #add;,a & ,rule #ejf71 ! ,commission %all n condition ! availability ( ! exemptions af=d$ by any su* p>agraph1 rule1 or regulation ^u an issu]'s und]tak+ to provide to inve/ors1 9 connection ) initial (f]s or sales or on an ongo+ basis !reaft]1 ! same or sub/antially simil> in=mation z w\ld be requir$ 9 a transaction to :i* section #e applies4 4 #djf4 ,effective date ( c]ta9 mortgage re=m regulations 7a7 ,9 g5]al ,section #adjj7;c7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ae ,u4,s4,c4 #afja note7 is am5d$-- 7#a7 9 p>agraph 7#a71 by am5d+ subp>agraph 7,b7 to read z foll[s3 7,b7 take effect #bd mon?s aft] ! issuance ( ! regulations 9 f9al =m1 or su* lat] "t z specifi$ by regulation4 2 & 7#b7 by /rik+ p>agraph 7#c74 7b7 ,effective date ,! am5dm5ts made by subsection 7a7 %all take effect on ! date ( ! enactm5t ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act1 z if includ$ 9 su* ,act4 #djg4 ,repeal ( cr$it risk ret5tion regulations 7a7 ,9 g5]al 7#a7 ,dodd-,frank ,! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecja et seq47 is am5d$-- 7,a7 by /rik+ section #ida2 & 7,b7 9 ! table ( cont5ts = su* ,act1 by /rik+ ! item relat+ to section #ida4 7#b7 ,securities ,ex*ange ,act ( #aicd ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$-- 7,a7 9 section #c7;a71 by /rik+ p>agraph 7#gg7 7relat+ to asset-back$ security71 z add$ by section #ida7;a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act2 & 7,b7 by /rik+ section #ae;,g4 7b7 ,prohibition on risk ret5tion & premium capture ca% res]ve acc\nts ,! ,comptroll] ( ! ,curr5cy1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,bureau ( ,consum] ,f9ancial ,protection1 & ! ,securities & ,ex*ange ,commission may n issue any rule or regulation to require risk ret5tion1 ! creation or ma9t5ance ( a premium capture ca% res]ve acc\nt1 or any simil> me*anism1 unless directly au?oriz$ by an ,act ( ,congress4 7c7 ,effective date ,! am5dm5ts made by subsection 7a7 %all take effect on ! date ( ! enactm5t ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act1 z if includ$ 9 su* ,act4 #djh4 ,mortgages 9 qualifi$ securities ,section #abi;,c ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afci;c71 z am5d$ by section #daa7a71 is fur!r am5d$ by ins]t+ aft] subsection 7e7 ! foll[+3 7f7 ,mortgages 9 qualifi$ securities ,?is section & any regulations promulgat$ "u ?is section d n apply to a mortgage s]v+ z collat]al = a qualifi$ security1 z su* t]m is def9$ "u section #cba ( ! ,protect+ ,am]ican ,taxpay]s & ,home[n]s ,act ( #bjac4 4 #dji4 ,mortgage loans held 9 portfolio 7a7 ,home ,mortgage ,disclosure ,act ( #aige ,section #cjd7;g7 ( ! ,home ,mortgage ,disclosure ,act ( #aige 7#ab ,u4,s4,c4 #bhjc7;g77 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ & at ! end2 7#b7 9 p>agraph 7#b71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7#c7 made by ! cr$itor1 s long z su* loan appe>s on ! balance %eet ( su* cr$itor4 4 7b7 ,tru? 9 ,l5d+ ,act ,! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afja et seq47 is am5d$-- 7#a7 9 section #abi;,c 7#ae ,u4,s4,c4 #afci;c71 z am5d$ by section #djh1 by ins]t+ aft] subsection 7f7 ! foll[+3 7g7 ,mortgage loans held 9 portfolio ,?is section & any regulations promulgat$ "u ?is section d n apply to a resid5tial mortgage loan made by ! cr$itor s long z su* loan appe>s on ! balance %eet ( su* cr$itor4 2 & 7#b7 9 section #abi;,d 7#ae ,u4,s4,c4 #afci;d71 by add+ at ! end ! foll[+3 7k7 ,mortgage loans held 9 portfolio ,?is section & any regulations promulgat$ "u ?is section d n apply to a resid5tial mortgage loan made by ! cr$itor s long z su* loan appe>s on ! balance %eet ( su* cr$itor4 4 #daj4 ,repeal ( c]ta9 mortgage-relat$ provisions 7a7 ,repeal ,sections #adac1 #adca1 & #adcb ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act are h]eby repeal$1 & ! provisions ( law am5d$ or repeal$ by su* sections are re/or$ or reviv$ z if su* sections _h n be5 enact$4 7b7 ,cl]ical am5dm5t ,! table ( cont5ts = ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act is am5d$ by /rik+ ! items relat+ to sections #adac1 #adca1 & #adcb4 #daa4 ,am5dm5ts to ! ,tru? 9 ,l5d+ ,act ,! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afja et seq47 is am5d$-- 7#a7 9 section #abi 7#ae ,u4,s4,c4 #afci7-- 7,a7 9 subsection 7b77#c71 by add+ at ! end ! foll[+3 ,! ,bureau may n1 by regulation or o!rwise1 prohibit a consum] f modify+ or waiv+ ! rights provid$ to ! consum] "u ?is subsection42 & 7,b7 9 subsection 7u71 by add+ at ! end ! foll[+3 7#d7 ,ensur+ access to c\nsel+ s]vices = rural communities ,c]tification describ$ "u p>agraph 7#a7 may be provid$ by a p]son :o op]ates an onl9e or telephone-op]at$ c\nsel+ s]vice approv$ by ! ,secret>y ( ,h\s+ & ,urban ,developm5t or by an onl9e or telephone-op]at$ c\nsel+ s]vice op]at$ by ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t4 7#e7 ,effective date ,not)/&+ section #adjj7;c7 ( ! ,mortgage ,re=m & ,anti-,pr$atory ,l5d+ ,act1 ?is subsection %all take effect aft] ! end ( ! #a-ye> p]iod beg9n+ on ! e>li] (-- 7,a7 ! date on :i* ! fir/ onl9e or telephone-op]at$ c\nsel+ s]vice is approv$ "u p>agraph 7#d72 & 7,b7 ! date on :i* ! ,dep>tm5t ( ,h\s+ & ,urban ,developm5t beg9s provid+ onl9e or telephone-op]at$ c\nsel+ s]vices describ$ "u p>agraph 7#d74 2 7#b7 9 section #abi;,c 7#ae ,u4,s4,c4 #afci;c7-- 7,a7 9 subsection 7b77#b77;,a77viii71 by /rik+ #cj & ins]t+ #dj2 7,b7 by /rik+ subsections 7c71 7d71 & 7e72 & 7,c7 by r$esignat+ subsections 7f71 7g71 7h71 & 7i7 z subsections 7c71 7d71 7e71 & 7f71 respectively2 & 7#c7 9 section #abi;,e7k77#a7 7#ae ,u4,s4,c4 #afci;e7k77#a77 by ins]t+ aft] ?is section ! foll[+3 1 o!r ?an subsection 7e714 #dab4 ,f9ancial ,in/itutions ,exam9ation ,fairness & ,re=m 7a7 ,timel9ess ( exam9ation reports ,! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is am5d$ by add+ at ! end ! foll[+3 #ajab4 ,timel9ess ( exam9ation reports 7a7 ,9 g5]al 7#a7 ,f9al exam9ation report ,a ,f$]al f9ancial in/itutions regulatory ag5cy %all provide a f9al exam9ation report to a f9ancial in/itution n lat] ?an #fj days aft] ! lat] (-- 7,a7 ! exit int]view = an exam9ation ( ! in/itution2 or 7,b7 ! provision ( additional in=mation by ! in/itution relat+ to ! exam9ation4 7#b7 ,exit int]view ,if a f9ancial in/itution is n subject to a resid5t exam9] program1 ! exit int]view %all occur n lat] ?an ! end ( ! #i-mon? p]iod beg9n+ on ! comm5cem5t ( ! exam9ation1 except t su* p]iod may be ext5d$ by ! ,f$]al f9ancial in/itutions regulatory ag5cy by provid+ writt5 notice to ! in/itution & ! ,(fice ( ,exam9ation ,ombudsman describ+ ) p>ticul>ity ! reasons t a long] p]iod is ne$$ to complete ! exam9ation4 7b7 ,exam9ation mat]ials ,^u ! reque/ ( a f9ancial in/itution1 ! ,f$]al f9ancial in/itutions regulatory ag5cy %all include ) ! f9al report an app5dix li/+ all exam9ation or o!r factual in=mation reli$ ^u by ! ag5cy 9 support ( a mat]ial sup]visory det]m9ation4 4 7b7 ,exam9ation /&>ds 7#a7 ,9 g5]al ,! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh is fur!r am5d$ by add+ aft] section #ajab ! foll[+3 #ajac4 ,exam9ation /&>ds 7a7 ,9 g5]al ,9 ! exam9ation ( f9ancial in/itutions-- 7#a7 a comm]cial loan %all n be plac$ 9 non-accrual /atus solely because ! collat]al = su* loan has det]iorat$ 9 value2 7#b7 a modifi$ or re/ructur$ comm]cial loan %all be remov$ f non-accrual /atus if ! borr[] demon/rates ! ability to p]=m on su* loan ov] a maximum p]iod ( #f mon?s1 except t ) respect to loans on a qu>t]ly1 semiannual1 or long] repaym5t s*$ule su* p]iod %all be a maximum ( #c consecutive repaym5t p]iods2 7#c7 a new appraisal on a p]=m+ comm]cial loan %all n be requir$ unless an advance ( new funds is involv$2 7#d7 9 classify+ a comm]cial loan 9 :i* !re has be5 det]ioration 9 collat]al value1 ! am\nt to be classifi$ %all be ! portion ( ! defici5cy relat+ to ! decl9e 9 collat]al value & repaym5t capacity ( ! borr[]4 7b7 ,well capitaliz$ in/itutions ,! ,f$]al f9ancial in/itutions regulatory ag5cies may n require a f9ancial in/itution t is well capitaliz$ to raise additional capital 9 lieu ( an action prohibit$ "u subsection 7a74 7c7 ,consi/5t loan classifications ,! ,f$]al f9ancial in/itutions regulatory ag5cies %all develop & apply id5tical def9itions & report+ requirem5ts = non-accrual loans4 4 7#b7 ,def9ition ( mat]ial sup]visory det]m9ation ,section #cji7;f77#a77;,a7 ( ! ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid 7#ab ,u4,s4,c4 #dhjf7;f77#a77;,a77 is am5d$-- 7,a7 9 clause 7ii71 by /rik+ & at ! end2 & 7,b7 by ins]t+ aft] clause 7iii7 ! foll[+3 7iv7 any issue specifically li/$ 9 an exam report z a matt] requir+ att5tion by ! in/itution's managem5t or bo>d ( directors2 & 4 7c7 ,exam9ation ,ombudsman 7#a7 ,9 g5]al ,! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh is fur!r am5d$ by add+ aft] section #ajac ! foll[+3 #ajad4 ,(fice ( ,exam9ation ,ombudsman 7a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,c\ncil an ,(fice ( ,exam9ation ,ombudsman4 7b7 ,head ( (fice ,!re is e/abli%$ ! position ( ! ,ombudsman1 :o %all s]ve z ! head ( ! ,(fice ( ,exam9ation ,ombudsman1 & :o %all be hir$ sep>ately by ! ,c\ncil & %all be indep5d5t f any memb] ag5cy ( ! ,c\ncil4 7c7 ,/aff+ ,! ,ombudsman is au?oriz$ to hire /aff to support ! activities ( ! ,(fice ( ,exam9ation ,ombudsman4 7d7 ,duties ,! ,ombudsman %all-- 7#a7 receive &1 at ! ,ombudsman's discretion1 inve/igate compla9ts f f9ancial in/itutions1 _! repres5tatives1 or ano!r entity act+ on behalf ( su* in/itutions1 conc]n+ exam9ations1 exam9ation practices1 or exam9ation reports2 7#b7 hold meet+s1 at lea/ once e ?ree mon?s & 9 locations design$ to enc\rage p>ticipation f all sections ( ! ,unit$ ,/ates1 ) f9ancial in/itutions1 _! repres5tatives1 or ano!r entity act+ on behalf ( su* in/itutions1 to discuss exam9ation proc$ures1 exam9ation practices1 or exam9ation policies2 7#c7 review exam9ation proc$ures ( ! ,f$]al f9ancial in/itutions regulatory ag5cies to ensure t ! writt5 exam9ation policies ( ^? ag5cies are be+ foll[$ 9 practice & adh]e to ! /&>ds = consi/5cy e/abli%$ by ! ,c\ncil2 7#d7 conduct a cont9u+ & regul> program ( exam9ation quality assurance = all exam9ation types conduct$ by ! ,f$]al f9ancial in/itutions regulatory ag5cies2 7#e7 process any sup]visory appeal initiat$ "u section #ajae or section #cji7;e7 ( ! ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid2 & 7#f7 report annually to ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate1 & ! ,c\ncil1 on ! reviews c>ri$ out pursuant to p>agraphs 7#c7 & 7#d71 includ+ compliance ) ! requirem5ts set =? 9 section #ajab reg>d+ timel9ess ( exam9ation reports1 & ! ,c\ncil's recomm5dations = improvem5ts 9 exam9ation proc$ures1 practices1 & policies4 7e7 ,confid5tiality ,! ,ombudsman %all keep confid5tial all meet+s1 discussions1 & in=mation provid$ by f9ancial in/itutions4 4 7#b7 ,def9ition ,section #ajjc ( ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh is am5d$-- 7,a7 9 p>agraph 7#b71 by /rik+ & at ! end2 7,b7 9 p>agraph 7#c71 by add+ & at ! end2 & 7,c7 by add+ at ! end ! foll[+3 7#d7 ! t]m ,ombudsman means ! ,ombudsman e/abli%$ "u section #ajad7;a74 4 7d7 ,"r ,to appeal be=e an indep5d5t adm9i/rative law judge ,! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh is fur!r am5d$ by add+ aft] section #ajad ! foll[+3 #ajae4 ,"r to appeal be=e an indep5d5t adm9i/rative law judge 7a7 ,9 g5]al ,a f9ancial in/itution %all h ! "r to appeal a mat]ial sup]visory det]m9ation conta9$ 9 a f9al report ( exam9ation4 7b7 ,notice 7#a7 ,tim+ ,a f9ancial in/itution seek+ an appeal "u ?is section %all file a writt5 notice ) ! ,ombudsman )9 #fj days aft] receiv+ ! f9al report or exam9ation t is ! subject ( su* appeal4 7#b7 ,id5tification ( det]m9ation ,! writt5 notice %all id5tify ! mat]ial sup]visory det]m9ation t is ! subject ( ! appeal1 & a /atem5t ( ! reasons :y ! in/itution believes t ! det]m9ation is incorrect or %\ld o!rwise be modifi$4 7#c7 ,in=mation to be provid$ to in/itution ,any in=mation reli$ ^u by ! ag5cy 9 ! f9al report t is n 9 ! possession ( ! f9ancial in/itution may be reque/$ by ! f9ancial in/itution & %all be deliv]$ promptly by ! ag5cy to ! f9ancial in/itution4 7c7 ,he>+ be=e indep5d5t adm9i/rative law judge 7#a7 ,9 g5]al ,! ,ombudsman %all det]m9e ! m]its ( ! appeal on ! record1 aft] an opportunity = a he>+ be=e an indep5d5t adm9i/rative law judge4 7#b7 ,he>+ proc$ures ,if a he>+ is reque/$ by ! f9ancial in/itution1 ! he>+ %all-- 7,a7 take place n lat] ?an #fj days aft] ! notice ( ! appeal 0 receiv$ by ! ,ombudsman2 & 7,b7 be conduct$ pursuant to ! proc$ures set =? "u sections #eef & #eeg ( title #e1 ,unit$ ,/ates ,code4 7#c7 ,judge recomm5dation2 /&>d ( review ,9 any he>+ "u ?is subsection-- 7,a7 ! adm9i/rative law judge %all recomm5d to ! ,ombudsman :at det]m9ation %\ld be made2 & 7,b7 9 mak+ su* recomm5dation1 ! adm9i/rative law judge %all n def] to ! op9ions ( ! exam9] or ag5cy1 b %all indep5d5tly det]m9e ! appropriat5ess ( ! ag5cy's decision bas$ ^u ! relevant /atutes1 regulations1 & o!r appropriate guidance4 7d7 ,f9al decision ,a decision by ! ,ombudsman on an appeal "u ?is section %all-- 7#a7 be made n lat] ?an #fj days aft] ! record has be5 clos$2 & 7#b7 be f9al ag5cy action & %all b9d ! ag5cy ^: sup]visory det]m9ation 0 ! subject ( ! appeal & ! f9ancial in/itution mak+ ! appeal4 7e7 ,report ,! ,ombudsman %all report annually to ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate on actions tak5 on appeals "u ?is section1 includ+ ! types ( issues t f9ancial in/itutions h appeal$ & ! results ( ^? appeals4 ,9 no case %all su* a report conta9 in=mation ab\t individual f9ancial in/itutions or any confid5tial or privileg$ in=mation %>$ by f9ancial in/itutions4 7f7 ,retaliation prohibit$ ,a ,f$]al f9ancial in/itution's regulatory ag5cy may n-- 7#a7 retaliate aga9/ a f9ancial in/itution1 includ+ s]vice provid]s1 or any in/itution-affiliat$ p>ty1 = ex]cis+ appellate rights "u ?is section2 or 7#b7 delay or d5y any ag5cy action t w\ld b5efit a f9ancial in/itution or any in/itution-affiliat$ p>ty on ! basis t an appeal "u ?is section is p5d+ "u ?is section4 4 7e7 ,additional am5dm5ts 7#a7 ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid ,section #cji ( ! ,riegle ,community ,developm5t & ,regulatory ,improvem5t ,act ( #aiid 7#ab ,u4,s4,c4 #dhjf71 is am5d$-- 7,a7 9 subsection 7a71 by ins]t+ aft] appropriate ,f$]al bank+ ag5cy ! foll[+3 1 ! ,bureau ( ,consum] ,f9ancial ,protection12 7,b7 9 subsection 7b7-- 7i7 9 p>agraph 7#b71 by /rik+ ! appellant f retaliation by ag5cy exam9]s & ins]t+ ! insur$ depository in/itution or insur$ cr$it union f retaliation by ! ag5cies ref]r$ to 9 subsection 7a72 & 7ii7 by add+ at ! end ! foll[+ flu%-left text3 ,= purposes ( ?is subsection & subsection 7e71 retaliation includes delay+ consid]ation (1 or )hold+ approval (1 any reque/1 notice1 or application t o!rwise w\ld h be5 approv$1 b = ! ex]cise ( ! in/itution's or cr$it union's rights "u ?is section4 2 & 7,c7 9 subsection 7e77#b7-- 7i7 9 subp>agraph 7,b71 by /rik+ & at ! end2 7ii7 9 subp>agraph 7,c71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7iii7 by add+ at ! end ! foll[+3 7,d7 ensure t appropriate safegu>ds exi/ = protect+ ! insur$ depository in/itution or insur$ cr$it union f retaliation by any ag5cy ref]r$ to 9 subsection 7a7 = ex]cis+ its rights "u ?is subsection4 4 7#b7 ,f$]al ,deposit ,insurance ,act ,section #ah7x7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7x77 is am5d$ by ins]t+ ! ,bureau ( ,consum] ,f9ancial ,protection1 be=e any ,f$]al bank+ ag5cy ea* place su* t]m appe>s4 7#c7 ,f$]al ,cr$it ,union ,act ,section #bje7;j7 ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #aghe7;j77 is am5d$ by ins]t+ ! ,bureau ( ,consum] ,f9ancial ,protection1 be=e ! ,adm9i/ration ea* place su* t]m appe>s4 7#d7 ,te*nical corrections ,! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is am5d$-- 7,a7 9 section #ajjc7a71 by /rik+ ! ,(fice ( ,?rift ,sup]vision12 & 7,b7 9 section #ajje1 by /rik+ ,"o-fif? & ins]t+ ,"o-f\r?4 #dac4 ,notice ( junior mortgage or li5 ,) respect to ! dwell+ ( a borr[] t s]ves z security = a securitiz$ s5ior mortgage loan1 if ! borr[] ent]s into any cr$it transaction t w\ld result 9 ! creation ( a new mortgage or o!r li5 on su* dwell+1 ! cr$itor ( su* new mortgage or o!r li5 %all notify ! s]vic] ( ! s5ior mortgage loan ( ! exi/5ce ( ! new mortgage or o!r li54 #dad4 ,limitation on mortgages held by loan s]vic]s 7a7 ,limitation ,nei!r ! s]vic] ( a resid5tial mortgage loan1 nor any affiliate ( su* s]vic]1 may own1 or hold any int]e/ 91 any o!r resid5tial mortgage loan t is secur$ by a mortgage1 de$ ( tru/1 or o!r equival5t cons5sual security int]e/ on ! same dwell+ or resid5tial real prop]ty t is subject to ! mortgage1 de$ ( tru/1 or o!r security int]e/ t secures ! resid5tial mortgage loan s]vic$ by ! s]vic]4 7b7 ,def9itions ,= purposes ( ?is section1 ! foll[+ def9itions %all apply3 7#a7 ,affiliate ,! t]m affiliate has ! mean+ giv5 su* t]m "u section #ajd7;g7 ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fgja7;g774 7#b7 ,resid5tial mortgage loan ,! t]m resid5tial mortgage loan means any consum] cr$it transaction t is secur$ by a mortgage1 de$ ( tru/1 or o!r equival5t cons5sual security int]e/ on a dwell+ or on resid5tial real prop]ty t includes a dwell+1 o!r ?an a consum] cr$it transaction "u an op5 end cr$it plan or an ext5sion ( cr$it relat+ to a plan describ$ 9 section #aja7ec;,d7 ( title #aa1 ,unit$ ,/ates ,code4 7#c7 ,s]vic] ,! t]m s]vic] has ! mean+ provid$ su* t]m 9 section #abi;,a ( ! ,tru? 9 ,l5d+ ,act1 except t su* t]m includes a p]son :o makes or holds a resid5tial mortgage loan 7includ+ a pool ( resid5tial mortgage loans7 if su* p]son also s]vices ! loan4 7c7 ,int]e/s ,= purposes ( subsection 7a71 own]%ip (1 or hold+ an int]e/ 91 a resid5tial mortgage loan includes own]%ip (1 or hold+ an int]e/ 9-- 7#a7 a pool ( resid5tial mortgage loans t conta9s su* resid5tial mortgage loan2 or 7#b7 any security bas$ on or back$ by a pool ( resid5tial mortgage loans t conta9s su* resid5tial mortgage loan4 7d7 ,effective date ,?is section %all apply-- 7#a7 ) respect to ! s]vic] 7or affiliate ( ! s]vic]7 ( a resid5tial mortgage loan t is orig9at$ aft] ! date ( ! enactm5t ( ?is ,act1 on su* date ( enactm5t2 & 7#b7 ) respect to ! s]vic] 7or affiliate ( ! s]vic]7 ( a resid5tial mortgage loan t is orig9at$ on or be=e ! date ( ! enactm5t ( ?is ,act1 ^u ! expiration ( ! #ab-mon? p]iod beg9n+ ^u su* date ( enactm5t4 ,v ,miscellane\s ,provisions #eja4 ,pres]v+ access to manufactur$ h\s+ 7a7 ,am5dm5t to mortgage orig9ator def9ition ,section #adja ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act is am5d$1 9 p>agraph 7#b77;,c77ii7 ( ! matt] propos$ to be add$ to section #ajc ( ! ,tru? 9 ,l5d+ ,act1 by /rik+ an employee ( a retail] ( manufactur$ homes :o is n describ$ 9 clause 7i7 or 7iii7 ( subp>agraph 7,a7 & :o does n advise a consum] on loan t]ms 7includ+ rates1 fees1 & o!r co/s7 & ins]t+ a retail] ( manufactur$ or modul> homes or its employees unless su* retail] or its employees receive comp5sation or ga9 = engag+ 9 activities describ$ 9 subp>agraph 7,a7 t is 9 excess ( any comp5sation or ga9 receiv$ 9 a comp>able ca% transaction4 7b7 ,te*nical am5dm5ts ,section #adja ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act is am5d$1 9 ! matt] propos$ to be add$ to section #ajc ( ! ,tru? 9 ,l5d+ ,act1 by r$esignat+ subsection 7cc7 z subsection 7dd74 7c7 ,effective date ,! am5dm5ts made by ?is section %all take effect z if includ$ 9 ! provisions ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act to :i* !y relate4 #ejb4 ,common s5se economic recov]y 7a7 ,%ort title ,?is section may be cit$ z ! ,common ,s5se ,economic ,recov]y ,act ( #bjac4 7b7 ,treatm5t ( c]ta9 loans 7#a7 ,9 g5]al ,= purposes ( det]m9+ capital requirem5ts or measur+ capital ( an insur$ depository in/itution "u section #ch ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao7 or any o!r provision ( law or regulatory guidance1 an insur$ depository in/itution t w\ld o!rwise be requir$ to treat a loan z a non-accrual loan may treat su* loan z an accrual loan1 if-- 7,a7 ! loan is curr5t2 7,b7 dur+ ! previ\s #f-mon? p]iod1 no mon?ly paym5t on ! loan has be5 m ?an #cj days del9qu5t2 & 7,c7 ! paym5ts on ! loan are be+ made pursuant to ! contractual t]ms ( ! loan agreem5t & any ref9ances & modifications t are agre$ to by all ( ! p>ties4 7#b7 ,demon/ration ( ability ,to p]=m on a loan ,not)/&+ p>agraph 7#a71 a modifi$ or re/ructur$ loan may n be treat$ z a non-accrual loan if ! borr[] demon/rates ! ability to p]=m on su* a loan-- 7,a7 ov] a p]iod ( #f mon?s2 or 7,b7 ) respect to a loan on a qu>t]ly1 semi-annual1 or long] repaym5t s*$ule1 ov] a p]iod ( #c consecutive paym5ts4 7#c7 ,no additional adv]se treatm5t ,) respect to a loan held by an insur$ depository in/itution & treat$ z an accrual loan by reason ( p>agraph 7#a71 an appropriate ,f$]al bank+ ag5cy may n impose any additional acc\nt+ requirem5ts on su* in/itution ) respect to su* loan comp>$ to ! requirem5ts t w\ld o!rwise h be5 plac$ on su* in/itution ) respect to su* loan if su* loan 7 n be+ treat$ z an accrual loan by reason ( p>agraph 7#a71 if ! result ( su* additional requirem5t w\ld adv]sely impact ! measurem5t ( capital ( ! in/itution4 7#d7 ,prohibition on ! re-,classification ( loans bas$ solely on collat]al value ,an appropriate ,f$]al bank+ ag5cy may n require an insur$ depository in/itution to treat a loan z a non-accrual loan solely on ! basis t ! collat]al ( su* loan has r$uc$ 9 value4 7#e7 ,provisions n applicable to publicly trad$ in/itutions ,?is subsection %all n apply ) respect to any issu] ( a security regi/]$ pursuant to section #ab ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghl74 7c7 ,/udy 7#a7 ,9 g5]al ,! ,f9ancial ,/ability ,ov]sight ,c\ncil %all conduct a /udy ( h[ be/ to prev5t contradictory guidance f be+ issu$ by appropriate ,f$]al bank+ ag5cies to insur$ depository in/itutions ) respect to loan classifications & capital requirem5ts4 7#b7 ,report ,n lat] ?an ! end ( ! #fj-;day p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,f9ancial ,/ability ,ov]sight ,c\ncil %all issue a report to ! ,congress conta9+-- 7,a7 all det]m9ations & conclusions made by ! ,c\ncil 9 c>ry+ out ! /udy requir$ "u p>agraph 7#a72 & 7,b7 legislative recomm5dations t ! ,c\ncil believe w prev5t contradictory guidance f be+ issu$ by appropriate ,f$]al bank+ ag5cies to insur$ depository in/itutions ) respect to loan classifications & capital requirem5ts4 7d7 ,def9itions ,= purposes ( ?is section3 7#a7 ,appropriate ,f$]al bank+ ag5cy ,! t]m appropriate ,f$]al bank+ ag5cy-- 7,a7 has ! mean+ giv5 su* t]m "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 & 7,b7 means ! ,national ,cr$it ,union ,adm9i/ration ,bo>d1 9 ! case ( a cr$it union4 7#b7 ,insur$ depository in/itution ,! t]m insur$ depository in/itution means-- 7,a7 an insur$ depository in/itution1 z def9$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 & 7,b7 a cr$it union4 7e7 ,sunset ,effective aft] ! end ( ! #b-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ?is section %all cease to h any =ce or effect4 #ejc4 ,te*nical ,am5dm5ts to ,f$]al ,home ,loan ,bank ,act 7a7 ,9 g5]al ,section #aj ( ! ,f$]al ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adcj7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by r$esignat+ p>agraph 7#f7 z p>agraph 7#g72 & 7,b7 by ins]t+ aft] p>agraph 7#e7 ! foll[+3 7#f7 ,report on collat]al ,! ,director %all annually report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives on ! collat]al pl$g$ to ! ,banks1 includ+ an analysis ( collat]al by type & by ,bank di/rict4 2 7#b7 by /rik+ subsection 7g72 & 7#c7 9 subsection 7j77#ab71 by /rik+ subp>agraphs 7,c7 & 7,d74 7b7 ,initial report ,! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy %all make ! fir/ report requir$ "u section #aj7;a77#g7 ( ! ,f$]al ,home ,loan ,bank ,act1 z add$ by subsection 7a71 n lat] ?an ! end ( ! #ahj-;day p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act4 #ejd4 ,pres]vation ( attorney-cli5t privilege = in=mation provid$ to ,,fhfa ,section #acag ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4#deag7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7j7 ,privileges n affect$ by disclosure to ,ag5cy 7#a7 ,9 g5]al ,! submission by any p]son ( any in=mation to ! ,ag5cy = any purpose 9 ! c\rse ( any sup]visory or regulatory process ( ! ,ag5cy %all n be con/ru$ z waiv+1 de/roy+1 or o!rwise affect+ any privilege su* p]son may claim ) respect to su* in=mation "u ,f$]al or ,/ate law z to any p]son or entity o!r ?an su* ,ag5cy4 7#b7 ,rule ( con/ruction ,no provision ( p>agraph 7#a7 may be con/ru$ z imply+ or e/abli%+ t-- 7,a7 any p]son waives any privilege applicable to in=mation t is submitt$ or transf]r$ "u any circum/ance to :i* p>agraph 7#a7 does n apply2 or 7,b7 any p]son w\ld waive any privilege applicable to any in=mation by submitt+ ! in=mation to ! ,ag5cy1 b = ?is subsection4 4 #eje4 ,,fhfa ,liaison ,memb]%ip 9 ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,section #ajjg ( ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil ,act ( #aigh 7#ab ,u4,s4,c4 #ccjf7 is am5d$-- 7#a7 9 ! section head+1 by ins]t+ aft] /ate ! foll[+3 & ,f$]al ,h\s+ ,f9ance ,ag5cy2 7#b7 9 ! fir/ s5t5ce1 by ins]t+ aft] f9ancial in/itutions ! foll[+3 1 & "o repres5tative ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy12 & 7#c7 9 ! la/ s5t5ce1 by ins]t+ ,/ate aft] among !4 #ejf4 ,recognition ( ,,fhfa en=cem5t au?ority ) reg>d to regulat$ entities ,section #aabe7;c7 ( ! ,f9ancial ,in/itution ,re=m1 ,recov]y & ,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4 #cced7;c72 z add$ by section #adgc7q7 ( ! ,dodd ,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act7 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ & at ! end2 7#b7 by r$esignat+ p>agraph 7#b7 z p>agraph 7#c72 & 7#c7 by ins]t+ aft] p>agraph 7#a7 ! foll[+ new p>agraph3 7#b7 ) respect to any regulat$ entity 7z su* t]m is def9$ 9 section #acjc ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dejb771 ! ,f$]al ,h\s+ ,f9ance ,ag5cy2 & 4 #ejg4 ,exception f ,"r to ,f9ancial ,privacy ,act = ,,fhfa z cons]vator or receiv] ,section #aaac7o7 ( ! ,"r to ,f9ancial ,privacy ,act ( #aigh 7#ab ,u4,s4,c4 #cdac7o77 is am5d$-- 7#a7 by /rik+ 7o7 & ins]t+ 7o77#a72 & 7#b7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,?is title %all n apply to ! exam9ation by or disclosure to ! ,f$]al ,h\s+ ,f9ance ,ag5cy or its employees or ag5ts ( f9ancial records or in=mation 9 ! ex]cise ( its sup]visory or regulatory functions1 includ+ cons]vator%ip & receiv]%ip functions1 ) respect to any regulat$ entity or o!r p]son p>ticipat+ 9 ! conduct ( ! affairs !re(4 4 #ejh4 ,te*nical am5dm5t to ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib ,section #acfh7;d7 ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4 #dfah7;d77 is am5d$ by /rik+ ,committee on ,bank+1 ,f9ance & ,urban ,affairs & ins]t+ ,committee on ,f9ancial ,s]vices4 #eji4 ,application ( presumption to ent]prise /reaml9$ ref9anc+s ,section #abi;,c7b77#c77;,b77ii7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afci;c7b77#c77;,b77ii72 z add$ by section #adab ( ! ,dodd ,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act7 is am5d$-- 7#a7 by ins]t+ aft] adm9i/]1 ! foll[+3 or t are own$ or gu>ante$ by an entity regulat$ or sup]vis$ by su* ag5cy12 & 7#b7 by add+ at ! end ! foll[+ new subclause3 7,v7 ,! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ) reg>d to mortgages own$ or gu>ante$ by an entity regulat$ or sup]vis$ by su* ag5cy4 4 #eaj4 ,,fhfa au?ority to regulate & exam9e contractual c\nt]p>ties ,section #acag ( ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib1 z am5d$ by ! prec$+ provisions ( ?is ,act1 is fur!r am5d$ 7#ab ,u4,s4,c4 #deag7 by add+ at ! end ! foll[+ new subsection3 7k7 ,regulation & exam9ation ( contractual c\nt]p>ties 7#a7 ,au?ority ,:5 a regulat$ entity or ! ,(fice ( ,f9ance causes to be p]=m$ = itself1 by contract or o!rwise & :e!r on or (f its premises1 any s]vices au?oriz$ to t regulat$ entity or ! ,(fice ( ,f9ance by its au?oriz+ /atute or ! ,f$]al ,h\s+ ,ent]prises ,f9ancial ,safety & ,s\ndness ,act ( #aiib-- 7,a7 su* p]=mance %all be subject to regulation & exam9ation by ! ,f$]al ,h\s+ ,f9ance ,ag5cy to ! same ext5t z if su* s]vices 7 be+ p]=m$ by ! regulat$ entity or ! ,(fice ( ,f9ance itself on its own premises1 & 7,b7 ! regulat$ entity or ! ,(fice ( ,f9ance %all notify ! ,director ( ! exi/5ce ( ! s]vice relation%ip )9 ?irty days aft] ! mak+ ( su* s]vice contract or ! p]=mance ( ! s]vice1 :i*ev] occurs fir/4 7#b7 ,regulations & ord]s ,! ,director may issue su* regulations & ord]s z may be necess>y to enable ! ,ag5cy to adm9i/] & to c>ry out ! purposes ( ?is subsection & to prev5t evasions !re(4 4 #eaa4 ,election ( directors ( a m]g$ ,f$]al ,home ,loan ,bank ,section #g ( ! ,f$]al ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adbg7 is am5d$-- 7#a7 9 subsection 7a77#a71 by ins]t+ & subsection 7d7 aft] p>agraphs 7#b7 ?r\gh 7#d72 7#b7 9 subsection 7b7-- 7,a7 9 ! matt] prec$+ p>agraph 7#b7-- 7i7 by /rik+ ,ea* & ins]t+ 7#a77;,a7 ,except z provid$ 9 subsection 7d71 ea*2 7ii7 by ins]t+ 7,b7 be=e ,no p]son2 7iii7 by ins]t+ 7,c7 be=e ,z us$2 & 7iv7 9 ! ?ird s5t5ce-- 7,i7 by /rik+ ?is subsection & ins]t+ subp>agraph 7,a72 & 7,,ii7 by /rik+ home loan bank & ins]t+ ,home ,loan ,bank2 & 7,b7 9 p>agraph 7#b77;,a77ii71 by ins]t+ or subsection 7d77#d71 if applicable1 aft] p>agraph 7#a72 7#c7 by /rik+ subsections 7c71 7d71 & 7h72 7#d7 by r$esignat+ subsections 7d71 7e71 7f71 & 7g7 z subsections 7e71 7f71 7g71 & 7h71 respectively2 & 7#e7 by ins]t+ aft] subsection 7b7 ! foll[+3 7c7 ,allocation ( memb] director%ips among ,/ates 9 bank di/rict 7#a7 ,designation ( memb] location ,! ,director %all designate ! ,/ate 9 :i* ea* memb] ( ea* ,f$]al ,home ,loan ,bank %all be deem$ to be locat$ = ! purposes ( ?is subsection & subsections 7b7 & 7d71 & may f "t to "t *ange any su* designation4 ,if ! pr9cipal place ( bus9ess ( any ,bank memb] is locat$ 9 a ,/ate )9 ! di/rict ( ! ,bank ( :i* x is a memb]1 ! ,director %all designate t ,/ate z ! ,/ate 9 :i* ! memb] %all be deem$ to be locat$ = ^? purposes4 7#b7 ,/ock-bas$ allocation ( designat$ memb] director%ips ,! numb] ( memb] director%ips designat$ z repres5t+ ! memb]s locat$ 9 ea* sep>ate ,/ate 9 a ,f$]al ,home ,loan ,bank di/rict %all be det]m9$ by ! ,director 9 ! approximate ratio ( ! p]c5tage ( ! requir$ /ock1 z prescrib$ by regulation ( ! ,director1 ( ! memb]s locat$ 9 t ,/ate at ! end ( ! cal5d> ye> next prec$+ ! date ( ! election to ! total requir$ /ock1 z s det]m9$1 ( all memb]s ( ! ,bank z ( t same date4 7#c7 ,limitations on /ock-bas$ allocations ,except z provid$ 9 subsection 7d71 ! foll[+ provisions %all apply to ! allocation ( memb] director%ips among ! ,/ates ( a ,bank di/rict1 not)/&+ ! requirem5ts ( p>agraph 7#b73 7,a7 ,9 ! case ( ea* ,/ate1 ! numb] ( memb] director%ips designat$ z repres5t+ ! memb]s locat$ 9 t ,/ate %all n be less ?an "o & %all n be m ?an six4 7,b7 ,if at any "t ! numb] ( memb] director%ips designat$ z repres5t+ ! memb]s locat$ 9 any ,/ate w\ld n be at lea/ equal to ! total numb] ( memb] director%ips :i*1 on ,decemb] #ca1 #aifj1 7 fill$ by (fic]s or directors ( memb]s ^: pr9cipal places ( bus9ess 7 locat$ 9 t ,/ate1 ! ,director %all add to ! bo>d ( directors ( ! ,bank ( ! di/rict 9 :i* t ,/ate is locat$ su* numb] ( memb] director%ips1 & %all s designate ! director%ip or director%ips ?us add$1 t ! numb] ( memb] director%ips designat$ z repres5t+ ! memb]s locat$ 9 t ,/ate w equal said total numb]4 ,any memb] director%ip s add$ %all exi/ only until ! expiration ( its fir/ t]m4 7d7 ,bo>d size1 composition1 & elections = comb9$ ,banks ,not)/&+ any o!r provision ( ?is section1 ! foll[+ requirem5ts %all apply to ! size & composition (1 & ! election ( directors to1 ! bo>d ( any ,bank creat$ z result ( ! comb9ation ( two or m ,banks "u section #bf3 7#a7 ,bo>d size ,! managem5t ( a comb9$ ,bank %all be ve/$ 9 a bo>d ( #ae directors1 or su* less] numb] z ! ,director det]m9es appropriate1 consi/5t ) ! safe & s\nd op]ation ( ! comb9$ ,bank4 7#b7 ,bo>d makeup ,! ,director %all e/abli% ! respective numb] ( memb] director%ips & indep5d5t director%ips = ! bo>d ( ! comb9$ ,bank su* t-- 7,a7 memb] directors %all comprise at lea/ ! majority ( ! memb]s ( ! bo>d ( directors2 & 7,b7 indep5d5t directors %all comprise n few] ?an #b_/e ( ! memb]s ( ! bo>d ( directors4 7#c7 ,allocation ( memb] director%ips ,! ,director %all allocate ! memb] director%ips ( ! bo>d ( a comb9$ ,bank among ! ,/ates ( ! ,bank di/rict 9 accordance ) ! requirem5ts ( subsection 7c77#b71 except t-- 7,a7 no ,/ate %all be allocat$ m ?an two memb] director%ips until e /ate has be5 allocat$ at lea/ "o memb] director%ip2 & 7,b7 if1 aft] ! ,director has allocat$ all b "o ( ! memb] director%ips1 !re rema9 any ,/ates to :i* no memb] director%ip has yet be5 allocat$1 !n ! ,director %all allocate ! rema9+ memb] director%ip to repres5t ! memb]s locat$ 9 all ( ! ,/ates t h n o!rwise be5 allocat$ a memb] director%ip4 7#d7 ,election ( directors ,! directors ( a comb9$ ,bank %all be nom9at$ & elect$ z provid$ 9 subsection 7b71 except t1 9 ! case ( a memb] director%ip t has be5 designat$ z repres5t+ ! memb]s ( two or m ,/ates pursuant to p>agraph 7#c77;,b71 ! foll[+ requirem5ts %all apply 9 lieu ( ^? set =? 9 subsection 7b77#a77;,a73 7,a7 ,! director%ip %all be fill$ by a p]son :o is an (fic] or director ( a memb] locat$ 9 "o ( ! ,/ates repres5t$4 7,b7 ,ea* memb] locat$ 9 ea* ,/ate repres5t$ %all be entitl$ to nom9ate an eligible p]son to fill ! director%ip1 & ! memb] director %all be elect$ f p]sons s nom9at$ by a plurality ( ! votes t ^? memb]s may ca/ "u subp>agraph 7,c74 7,c7 ,ea* memb] locat$ 9 ea* ,/ate repres5t$ may ca/ a numb] ( votes equal to ! numb] ( %>es ( /ock 9 ! ,bank requir$ to be held by ! memb] at ! end ( ! cal5d> ye> next prec$+ ! election1 b n 9 excess ( ! av]age numb] ( %>es ( /ock 9 ! ,bank requir$ to be held at ! end ( t ye> by ! respective memb]s ( ! ,bank locat$ 9 ^? ,/ates4 7#e7 ,initial directors = newly comb9$ ,banks ,! foll[+ requirem5ts %all apply to ! selection ( ! individuals to s]ve z ! initial directors ( a comb9$ ,bank z ( ! effective date ( ! comb9ation3 7,a7 ,! t]ms ( (fice ( any directors ( ! comb9+ ,banks :o d n become directors ( ! comb9$ ,bank %all t]m9ate z ( ! effective date ( ! comb9ation4 7,b7 ,! individuals to s]ve z ! initial directors ( a newly comb9$ ,bank %all be *os5 f among ! incumb5t directors ( ! pr$ecessor ,banks s]v+ imm$iately prior to ! effective date ( ! comb9ation ( ^? ,banks & %all be-- 7i7 z designat$ by ! ,director 9 ! case ( a ,bank creat$ f a comb9ation ( two or m ,banks pursuant to a reorganization "u section #bf7;a72 & 7ii7 z agre$ ^u among ! m]g+ ,banks & approv$ by ! ,director 9 ! case ( a ,bank creat$ f a volunt>y m]g] ( two or m ,banks pursuant to section #bf7;b74 7,c7 ,ea* initial director ( ! comb9$ ,bank %all be entitl$ to s]ve = ! rema9d] ( ! t]m ( (fice t ! director _h ) ! pr$ecessor ,bank4 ,t]ms s]v$ z a director ( a pr$ecessor ,bank %all be c\nt$ z be+ s]v$ z a director ( ! comb9$ ,bank = purposes ( det]m9+ t]m limits "u subsection 7e77#c74 7,d7 ,beg9n+ ) ! fir/ election ( directors occurr+ aft] ! comb9ation ( ! pr$ecessor ,banks1 ! ,director %all adju/ ! t]m ( any director%ip ( ! comb9$ ,bank z necess>y to a*ieve & ma9ta9 ! /agg]+ ( t]ms t is requir$ "u subsection 7e77#b74 7e7 ,t]ms2 rules & regulations gov]n+ nom9ations & elections 7#a7 ,t]ms ,except z provid$ 9 p>agraph 7#b71 ! t]m ( ea* ,f$]al ,home ,loan ,bank director %all be #d ye>s4 7#b7 ,adju/m5t ( t]ms ,! ,director %all adju/ ! t]ms ( memb]s f "t to "t z necess>y to ensure t ! t]ms ( ! memb]s ( ! bo>d ( directors are /agg]$ ) approximately #a_/d ( ! t]ms expir+ ea* ye>4 7#c7 ,t]m limits ,if any p]son has be5 elect$ to ea* ( ?ree consecutive full t]ms z a director ( a ,f$]al ,home ,loan ,bank & has s]v$ = all or "p ( ea* ( ^? t]ms1 t p]son %all n be eligible = election to a director%ip ( t ,bank = a t]m :i* beg9s e>li] ?an two ye>s aft] ! expiration ( ! la/ expir+ ( ! ?ree t]ms4 7#d7 ,rules & regulations gov]n+ nom9ations & elections ,! ,director is h]eby au?oriz$ to prescribe su* rules & regulations z ! ,director may deem necess>y or appropriate = ! nom9ation & election ( directors ( ,f$]al ,home ,loan ,banks1 includ+1 )\t limitation on ! g5]ality ( ! =ego+1 rules & regulations ) respect to ! break+ ( ties & ) respect to ! inclusion ( m ?an "o director%ip on a s+le ballot & ! me?ods ( vot+ & ( det]m9+ ! results ( vot+ 9 su* cases4 2 7#f7 9 subsection 7f71 z s r$esignat$1 by /rik+ ! fir/ & second s5t5ces2 7#g7 9 subsection 7h71 z s r$esignat$-- 7,a7 by /rik+ home loan bank ea* place su* t]m appe>s & ins]t+ ,home ,loan ,bank2 & 7,b7 9 p>agraph 7#a71 by /rik+ su* bank & ! bank & ins]t+ su* ,bank & ! ,bank1 respectively2 7#h7 9 subsection 7i77#a7-- 7,a7 by /rik+ bank & ins]t+ ,bank2 & 7,b7 by /rik+ bo>d & ins]t+ ,director2 7#i7 9 subsection 7j71 by /rik+ bank & ins]t+ ,bank2 & 7#aj7 by /rik+ ! second subsection 7l71 z add$ by section #abjb7h7 ( ! ,h\s+ & ,economic ,recov]y ,act ( #bjjh4