,i #aacth ,,congress #ast ,session ,h4 ,r4 #ceej ,,in ,,the ,,house ,,of ,,representatives ,november #bj1 #bjac,mr4 ,amash 7for himself1 ,mr4 ,duncan of ,south ,carolina1 ,mr4 ,jordan1 ,mr4 ,lamborn1 ,mr4 ,mc,clintock1 ,mr4 ,meadows1 ,mr4 ,price of ,georgia1 and ,mr4 ,salmon7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committees on ,appropriations1 ,science1 ,space1 and ,technology1 ,transportation and ,infrastructure1 and the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to stabilize the housing and banking sectors by eliminating policies that distort markets and facilitate risky lending1 and for other purposes4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may be cited as the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4,title ,i--,reducing risky lending and housing market instability,subtitle ,a--,withdrawing failed ,government mortgage corporations,part #a--;,immediate reforms of ,government-,sponsored corporations,sec4 #aja4 ,repeal of housing goals for enterprises4,sec4 #ajb4 ,repeal of ,housing ,trust ,fund4,sec4 #ajc4 ,repeal of ,capital ,magnet ,fund4,sec4 #ajd4 ,limitation on enterprise mortgage purchases4,sec4 #aje4 ,repeal of banking agencies' authority relating ,freddie ,mac transactions4,part #b--,making space for private secondary markets,sec4 #aaa4 ,reduction of enterprise conforming loan limits4,sec4 #aab4 ,loan-to-value limitation on enterprise mortgage purchases4,sec4 #aac4 ,increased capital standards for enterprises4,sec4 #aad4 ,enterprise portfolio limitations4,part #c--;,abolition of ,fannie ,mae and ,freddie ,mac,sec4 #aba4 ,abolishment of enterprises4,subtitle ,b--,termination of ,insurance for ,banks' ,mortgage ,lending,part #a--;,immediate reforms of ,,fha credit programs,sec4 #aca4 ,,fha lender repurchase requirement4,sec4 #acb4 ,prohibition of ,,fha mortgage insurance for cash-out refinancings4,sec4 #acc4 ,,fha limitation on seller concessions4,part #b--,reducing taxpayer guarantees of mortgages,sec4 #ada4 ,reduction of ,,fha mortgage insurance coverage4,sec4 #adb4 ,increase in ,,fha downpayment requirement4,part #c--,termination of ,,fha credit guarantees,sec4 #aea4 ,termination of ,,fha insurance authority4,subtitle ,c--,ending guarantees for ,government mortgage-,backed securities,sec4 #afa4 ,limitation on ,,gnma guarantees4,sec4 #afb4 ,abolishment of ,ginnie ,mae4,subtitle ,d--,repealing regulations that promote risky lending,sec4 #aga4 ,repeal of the ,community ,reinvestment ,act of #aigg4,sec4 #agb4 ,repeal of ,dodd-,frank credit risk retention provisions4,sec4 #agc4 ,repeal of ,dodd-,frank ability to repay and qualified mortgage provisions4,sec4 #agd4 ,repeal of the ,home ,mortgage ,disclosure ,act of #aige4,sec4 #age4 ,repeal of ,federal ,home ,loan ,banks ,affordable ,housing ,program and housing goals4,sec4 #agf4 ,repeal of ,,fdic ,affordable ,housing ,program4,subtitle ,e--,stopping subsidies for certain obstacles to housing construction,sec4 #aha4 ,repeal of transportation planning provisions2 rescission4,sec4 #ahb4 ,termination of ,,hud sustainable communities initiatives2 rescission4,title ,,ii--,ending bank bailouts and restoring market discipline,subtitle ,a--,reducing risks to bank depositors and other creditors,sec4 #bja4 ,capital requirements4,sec4 #bjb4 ,,fdic insurance4,subtitle ,b--,repeal of bailout authorities,sec4 #baa4 ,repeal of ,,fdic powers under the systemic risk determination4,sec4 #bab4 ,repeal of unusual and exigent authority of the ,federal ,reserve4,sec4 #bac4 ,exchange ,stabilization ,fund4,subtitle ,c--,bankruptcy1 not bailouts1 for complex financial institutions,sec4 #bba4 ,reforming the bankruptcy code to accommodate failing financial institutions4 ,i ,reducing risky lending and housing market instability ,a ,withdrawing failed ,government mortgage corporations #a ,immediate reforms of ,government-,sponsored corporations #aja4 ,repeal of housing goals for enterprises 7a7 ,repeal ,the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib is amended by striking sections #acca through #accf 7#ab ,u4,s4,c4 #defa-f74 7b7 ,conforming amendments ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib is amended-- 7#a7 in section #acjc7bh7 7#ab ,u4,s4,c4 #dejb7bh771 by striking 1 and1 for the purposes and all that follows through designated disaster areas2 7#b7 in section #acbd7;b77#a77;,a7 7#ab ,u4,s4,c4 #dedd7;b77#a77;,a771 by striking clauses 7i71 7ii71 and 7iv72 7#c7 in section #acci7;h7 7#ab ,u4,s4,c4 #defi7;h771 by striking paragraph 7#g72 7#d7 in section #acda 7#ab ,u4,s4,c4 #deha7-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#a71 by inserting or after the semicolon at the end2 7ii7 in paragraph 7#b71 by striking the semicolon at the end and inserting a period2 and 7iii7 by striking paragraphs 7#c7 and 7#d72 and 7,b7 in subsection 7b77#b7-- 7i7 in subparagraph 7,a71 by inserting or after the semicolon at the end2 7ii7 by striking subparagraphs 7,b7 and 7,c72 and 7iii7 by redesignating subparagraph 7,d7 as subparagraph 7,b72 7#e7 in section #acde7;a7 7#ab ,u4,s4,c4 #dehe7;a77-- 7,a7 in paragraph 7#a71 by inserting or after the semicolon at the end2 7,b7 in paragraph 7#b71 by striking the semicolon at the end and inserting a period2 and 7,c7 by striking paragraphs 7#c7 and 7#d72 and 7#f7 in section #acga7;a77#b7 7#ab ,u4,s4,c4 #dfca7;a77#b771 by striking with any housing goal established under subpart ,b of part #b of subtitle ,a of this title1 with section #accf or #accg of this title14 7c7 ,repeal of reporting requirements 7#a7 ,fannie mae ,section #cji of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agbc;a7 is amended by striking subsection 7n74 7#b7 ,freddie ,mac ,section #cjg of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adef7 is amended by striking subsection 7f74 7d7 ,termination of affordable housing advisory councils 7#a7 ,fannie mae ,section #cji of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agbc;a7 is amended by striking subsection 7o74 7#b7 ,freddie ,mac ,section #cjg of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adef7 is amended by striking subsection 7g74 #ajb4 ,repeal of ,housing ,trust ,fund 7a7 ,repeal ,the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib is amended by striking sections #accg and #acch 7#ab ,u4,s4,c4 #defg1 #defh74 7b7 ,conforming amendments 7#a7 ,federal housing enterprises financial safety and soundness act of #aiib ,the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib is amended-- 7,a7 in section #acbd7;b77#a77;,a7 7#ab ,u4,s4,c4 #dedd7;b77#a77;,a771 as amended by the preceding provisions of this ,act-- 7i7 by striking clause 7iii72 7ii7 by striking the dash after which and inserting the text of clause 7v7 and a period2 and 7iii7 by striking clause 7v72 7,b7 in section #acci7;b7-- 7i7 by striking paragraph 7#a72 7ii7 by striking the dash after consist of and inserting the text of paragraph 7#b7 and a period2 and 7iii7 by striking paragraph 7#b72 and 7,c7 in section #acde 7#ab ,u4,s4,c4 #dehe71 by striking subsection 7f74 7#b7 ,,hope for homeowners program ,section #beg7w7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaez-#bc7w77 is amended-- 7,a7 by striking paragraphs 7#b7 and 7#c72 and 7,b7 by redesignating paragraph 7#d7 as paragraph 7#b74 #ajc4 ,repeal of ,capital ,magnet ,fund 7a7 ,use of funds ,immediately upon the enactment of this ,act1 any amounts in the ,capital ,magnet ,fund established under section #acci of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defi7 shall be available to the ,secretary of the ,treasury for use only for reducing the budget deficit of the ,federal ,government4 7b7 ,repeal and abolishment of fund ,section #acci of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defi7 is hereby repealed and the ,capital ,magnet ,fund established under such section is abolished4 7c7 ,conforming amendment ,section #acjc7bd7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb7bd77 is amended by striking subparagraph 7,b74 #ajd4 ,limitation on enterprise mortgage purchases 7a7 ,fannie ,mae ,section #cjb7;b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7;b77 is amended by adding at the end the following new paragraph3 7#g7 ,the corporation may only purchase1 make commitments to purchase1 service1 sell1 lend on the security of1 or otherwise deal in a mortgage on a property comprising #a- to #d-;family dwelling units that-- 7,a7 bears interest at a rate that is fixed for the entire term of the mortgage2 and 7,b7 is made-- 7i7 to finance the purchase of such property that shall be occupied by the mortgagor as the mortgagor's principal residence2 or 7ii7 to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same property1 which is occupied by the mortgagor as the mortgagor's principal residence1 but not including a mortgage under which any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage or for any settlement costs in connection with such mortgage1 as determined in accordance with guidelines issued by the ,director4 4 7b7 ,freddie ,mac ,section #cje7;a7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77 is amended by adding at the end the following new paragraph3 7#f7 ,the ,corporation may only purchase1 make commitments to purchase1 service1 sell1 lend on the security of1 or otherwise deal in a mortgage on a property comprising #a- to #d-;family dwelling units that-- 7,a7 bears interest at a rate that is fixed for the entire term of the mortgage2 and 7,b7 is made-- 7i7 to finance the purchase of such property that shall be occupied by the mortgagor as the mortgagor's principal residence2 or 7ii7 to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same property1 which is occupied by the mortgagor as the mortgagor's principal residence1 but not including a mortgage under which any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage or for any settlement costs in connection with such mortgage1 as determined in accordance with guidelines issued by the ,director4 4 #aje4 ,repeal of banking agencies' authority relating ,freddie ,mac transactions ,section #cje of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7 is amended by striking subsection 7b74 #b ,making space for private secondary markets #aaa4 ,reduction of enterprise conforming loan limits 7a7 ,fannie ,mae ,paragraph 7#b7 of section #cjb7;b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7;b77#b77 is amended by striking the #gth through #aath sentences and inserting the following3 ,such limitations shall not exceed #dag1jjj for a mortgage secured by a single-family residence1 #ecc1hej for a mortgage secured by a #b-;family residence1 #fde1cjj for a mortgage secured by a #c-;family residence1 and #hja1iej for a mortgage secured by a #d-;family residence1 except that such maximum limitations shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 subject to the limitations in this paragraph4 ,each adjustment shall be made by subtracting from such amount 7as it may have been previously adjusted7 an amount equal to #bj percent thereof44 7b7 ,freddie ,mac ,paragraph 7#b7 of section #cje7;a7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b77 is amended by striking the #fth through #ajth sentences and inserting the following3 ,such limitations shall not exceed #dag1jjj for a mortgage secured by a single-family residence1 #ecc1hej for a mortgage secured by a #b-;family residence1 #fde1cjj for a mortgage secured by a #c-;family residence1 and #hja1iej for a mortgage secured by a #d-;family residence1 except that such maximum limitations shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 subject to the limitations in this paragraph4 ,each adjustment shall be made by subtracting from such amount 7as it may have been previously adjusted7 an amount equal to #bj percent thereof44 #aab4 ,loan-to-value limitation on enterprise mortgage purchases 7a7 ,fannie ,mae ,section #cjb7;b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7;b77 is amended by adding at the end the following new paragraph3 7#g7 ,notwithstanding any other provision of law1 the corporation may not purchase1 or make commitments to purchase1 any mortgage on a #a- to #d-;family residence if the outstanding principal balance of the mortgage at the time of purchase exceeds #ie4j percent of the value of the property securing the mortgage1 except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by reducing such percentage by #a4e percentage points4 4 7b7 ,freddie ,mac ,section #cjeb7;a7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77 is amended by adding at the end the following new paragraph3 7#f7 ,notwithstanding any other provision of law1 the ,corporation may not purchase1 or make commitments to purchase1 any mortgage on a #a- to #d-;family residence if the outstanding principal balance of the mortgage at the time of purchase exceeds #ie4j percent of the value of the property securing the mortgage1 except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by reducing such percentage by #a4e percentage points4 4 #aac4 ,increased capital standards for enterprises 7a7 ,termination of risk-,based standard 7#a7 ,in general ,section #acfa of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfaa7 is amended-- 7,a7 in the section heading1 by striking risk-based2 and 7,b7 in subsection 7a77#a71 by striking risk-based and inserting non-risk-based4 7#b7 ,conforming amendments ,subtitle ,b of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib is amended by striking risk-based each place such term appears in the following sections and inserting required3 7,a7 ,section #acfd7;a7 7#ab ,u4,s4,c4 #dfad7;a774 7,b7 ,section #acff7;a77#b77;,b7 7#ab ,u4,s4,c4 #dfaf7;a77#b77;,b774 7,c7 ,section #acfi;,c7a7 7#ab ,u4,s4,c4 #dfbb7;a774 7b7 ,increase in minimum capital levels ,section #acfb7;a7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfab7;a77 is amended-- 7#a7 in paragraph 7#a71 by inserting before the semicolon at the end the following3 2 except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by increasing such percentage 7as it may have been previously adjusted7 by #j4g percentage points2 7#b7 in paragraph 7#b71 by inserting before 2 and the following3 2 except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by increasing such percentage 7as it may have been previously adjusted7 by #j4ae percentage points2 and 7#c7 in paragraph 7#c71 by inserting before the period at the end the following3 2 and except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by increasing such percentage 7as it may have been previously adjusted7 by #j4ae percentage points4 7c7 ,increase in critical capital levels ,section #acfc7;a7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfac7;a77 is amended-- 7#a7 in paragraph 7#a71 by inserting before the semicolon at the end the following3 2 except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by increasing such percentage 7as it may have been previously adjusted7 by #j4g percentage points2 7#b7 in paragraph 7#b71 by inserting before 2 and the following3 2 except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by increasing such percentage 7as it may have been previously adjusted7 by #j4ae percentage points2 and 7#c7 in paragraph 7#c71 by inserting before the period at the end the following3 2 and except that such percentage shall be adjusted effective ,january #a of each year beginning after the effective date of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 by increasing such percentage 7as it may have been previously adjusted7 by #j4ae percentage points4 #aad4 ,enterprise portfolio limitations ,the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #dfaa et seq47 is amended by striking section #acfi;,e 7#ab ,u4,s4,c4 #dfbd7 and inserting the following new section3 #acfi;,e4 ,restriction on mortgage assets of enterprises 7a7 ,restriction ,no enterprise shall own1 as of any applicable date in this subsection or thereafter1 mortgage assets in excess of-- 7#a7 as of ,december #ca1 #bjac1 #eej1jjj1jjj1jjj2 or 7#b7 as of ,december #ca of each year thereafter1 #hj percent of the aggregate amount of mortgage assets that the enterprise was permitted to own pursuant to this section as of ,december #ca of the immediately preceding calendar year4 7b7 ,definition of ,mortgage ,assets ,for purposes of this section1 the term mortgage assets means1 with respect to an enterprise1 assets of such enterprise consisting of mortgages1 mortgage loans1 mortgage-related securities1 participation certificates1 mortgage-backed commercial paper1 obligations of real estate mortgage investment conduits and similar assets1 in each case to the extent such assets would appear on the balance sheet of such enterprise in accordance with generally accepted accounting principles in effect in the ,united ,states as of ,september #g1 #bjjh 7as set forth in the opinions and pronouncements of the ,accounting ,principles ,board and the ,american ,institute of ,certified ,public ,accountants and statements and pronouncements of the ,financial ,accounting ,standards ,board from time to time2 and without giving any effect to any change that may be made after ,september #g1 #bjjh1 in respect of ,statement of ,financial ,accounting ,standards ,no4 #adj or any similar accounting standard74 4 #c ,abolition of ,fannie ,mae and ,freddie ,mac #aba4 ,abolishment of enterprises 7a7 ,repeal of charters 7#a7 ,fannie ,mae ,effective upon the expiration of the #e-year period beginning on the date of the enactment of this ,act1 the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agaf et seq47 is repealed and the ,federal ,national ,mortgage ,association shall have no authority to conduct new business under such charter1 except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of-- 7,a7 outstanding debt obligations of the ,federal ,national ,mortgage ,association1 including any-- 7i7 bonds1 debentures1 notes1 or other similar instruments2 7ii7 capital lease obligations2 or 7iii7 obligations in respect of letters of credit1 bankers' acceptances1 or other similar instruments2 or 7,b7 mortgage-backed securities guaranteed by the ,federal ,national ,mortgage ,association4 7#b7 ,freddie ,mac ,effective upon the expiration of the #e-year period beginning on the date of the enactment of this ,act1 the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq47 is repealed and the ,federal ,home ,loan ,mortgage ,corporation shall have no authority to conduct new business under such charter1 except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of-- 7,a7 outstanding debt obligations of the ,federal ,home ,loan ,mortgage ,corporation1 including any-- 7i7 bonds1 debentures1 notes1 or other similar instruments2 7ii7 capital lease obligations2 or 7iii7 obligations in respect of letters of credit1 bankers' acceptances1 or other similar instruments2 or 7,b7 mortgage-backed securities guaranteed by the ,federal ,home ,loan ,mortgage ,corporation4 7#c7 ,existing guarantee obligations 7,a7 ,explicit guarantee ,the full faith and credit of the ,united ,states is pledged to the payment of all amounts which may be required to be paid under any obligation described under paragraphs 7#a7 and 7#b74 7,b7 ,applicability ,except for amounts determined necessary for use for winding up the affairs of the enterprises pursuant to subsection 7b71 all guarantee fee amounts derived from the mortgage guarantee business of the enterprises in existence as of the expiration of the #e-year period beginning on the date of the enactment of this ,act shall be deposited into the ,treasury of the ,united ,states1 for purposes of deficit reduction4 7b7 ,wind-,down of enterprises 7#a7 ,termination of current conservatorship ,upon the expiration of the #e-year period beginning on the date of the enactment of this ,act1 the ,director of the ,federal ,housing ,finance ,agency shall1 with respect to each enterprise1 appoint the ,federal ,housing ,finance ,agency as receiver under section #acfg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib and carry out such receivership under the authority of such section and in accordance with this ,act and any amendments made by this ,act4 7#b7 ,wind down ,during the #e-year period that begins upon the date of the enactment of this ,act1 the ,director of the ,federal ,housing ,finance ,agency1 in consultation with the ,secretary of the ,treasury1 shall take such action1 and may prescribe such regulations and procedures1 as may be necessary and consistent with the receiverships pursuant to paragraph 7#a7 to wind down the operations of the enterprises in an orderly manner that complies with the requirements of this ,act and any amendments made by this ,act4 7#c7 ,division of assets and liabilities2 authority to establish holding corporation and dissolution trust fund ,the action and procedures required under paragraph 7#b7-- 7,a7 shall include the establishment and execution of plans to provide for an equitable division1 distribution1 and liquidation of the assets and liabilities of each enterprise1 including any infrastructure1 property1 including intellectual property1 platforms1 or any other thing or object of value1 provided that such plans shall-- 7i7 provide for the sale1 at auction1 of the servicing rights to mortgages guaranteed by an enterprise under terms that ensure that a purchaser of such servicing rights shall assume a first loss position in the event of a default under such a mortgage in an amount equal to #bj percent of the aggregate amount of such loss and the ,federal ,government shall be liable to the purchaser for the remainder of such loss2 7ii7 provide for the sale1 at auction1 of any other assets of an enterprise having value2 and 7iii7 comply with the requirements of this ,act and any amendments made by this ,act2 7,b7 may provide for establishment of a holding corporation organized under the laws of any ,state of the ,united ,states or the ,district of ,columbia for the purpose of winding down an enterprise2 and 7,c7 shall provide for establishment of one or more trusts to which to transfer-- 7i7 outstanding debt obligations of an enterprise2 or 7ii7 outstanding mortgages held for the purpose of collateralizing mortgage-backed securities guaranteed by an enterprise4 7c7 ,conforming amendments to ,federal ,home ,loan ,bank ,act ,effective upon the expiration of the #e-year period that begins on the date of the enactment of this ,act1 the ,federal ,home ,loan ,bank ,act is amended-- 7#a7 in section #aj7;a77#c77;,b7 7#ab ,u4,s4,c4 #adcj7;a77#c77;,b771 by striking 7including without limitation1 mortgage-backed securities issued or guaranteed by the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,national ,mortgage ,corporation1 and the ,government ,national ,mortgage ,association72 and 7#b7 in section #af7;a7 7#ab ,u4,s4,c4 #adcf7;a771 by striking 1 in obligations1 participations1 or other instruments and all that follows through section #cjf of the ,federal ,home ,loan ,mortgage ,corporation ,act14 ,b ,termination of ,insurance for ,banks' ,mortgage ,lending #a ,immediate reforms of ,,fha credit programs #aca4 ,,fha lender repurchase requirement ,title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq47 is amended by adding at the end the following new section3 #bei4 ,lender repurchase requirement ,the ,secretary may not newly insure any mortgage on a #a- to #d-;family residential property unless the mortgagee under such mortgage enters into such binding agreements as the ,secretary considers necessary to ensure that1 if the mortgagor is in default with respect to the mortgagor's obligation to make payments under the mortgage for #cj or more consecutive days during the #f-month period beginning upon origination of the mortgage1 the mortgagee will1 upon notice by the ,secretary1 repurchase such mortgage in an amount equal to the remaining principal obligation under the mortgage1 as determined in accordance with guidelines issued by the ,secretary4 4 #acb4 ,prohibition of ,,fha mortgage insurance for cash-out refinancings ,title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq471 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new section3 #bfj4 ,prohibition of cash-out refinancings ,the ,secretary may not newly insure any mortgage on a #a- to #d-;family residential property under which-- 7#a7 a portion of the mortgage proceeds are used to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same residential property2 and 7#b7 any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage and for any settlement costs in connection with such mortgage1 as determined in accordance with guidelines issued by the ,secretary4 4 #acc4 ,,fha limitation on seller concessions ,title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq471 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new section3 #bfa4 ,limitation on seller concessions ,the ,secretary may not newly insure any mortgage on a #a- to #d-;family residential property with respect to which the seller of the property subject to such mortgage 7or any third party or entity that is reimbursed directly or indirectly by the seller7 contributes toward the acquisition of the property by the mortgagor any amount in excess of #c percent of the total closing costs 7as determined by the ,secretary7 in connection with such acquisition4 4 #b ,reducing taxpayer guarantees of mortgages #ada4 ,reduction of ,,fha mortgage insurance coverage ,title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjg et seq471 as amended by the preceding provisions of this ,act1 is further amended by adding at the end the following new section3 #bfb4 ,reduction of mortgage insurance coverage ,notwithstanding any other provision of this title1 the ,secretary may not insure1 or make any commitment to insure1 any portion of any mortgage on a #a- to #d-;family residential property in excess of the amount equal to the following percentage of the original principal obligation of the mortgage3 7#a7 ,in the case of any such mortgage insured after the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 #hj percent of such original principal obligation1 subject to paragraphs 7#b7 through 7#e74 7#b7 ,in the case of any such mortgage insured after the expiration of the #a-year period beginning on the date of the enactment of such ,act1 #gj percent of such original principal obligation1 subject to paragraphs 7#c7 through 7#e74 7#c7 ,in the case of any such mortgage insured after the expiration of the #b-year period beginning on the date of the enactment of such ,act1 #fj percent of such original principal obligation1 subject to paragraphs 7#d7 through 7#e74 7#d7 ,in the case of any such mortgage insured after the expiration of the #c-year period beginning on the date of the enactment of such ,act1 #ej percent of such original principal obligation1 subject to paragraph 7#e74 7#e7 ,in the case of any such mortgage insured after the expiration of the #d-year period beginning on the date of the enactment of such ,act1 #dj percent of such original principal obligation4 4 #adb4 ,increase in ,,fha downpayment requirement ,subparagraph 7,a7 of section #bjc7;b77#i7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agji7;b77#i77;,a77 is amended-- 7#a7 by striking 7,a7 ,in general4--,a mortgage and inserting the following3 7,a7 ,in general 7i7 ,payment requirement ,a mortgage 2 7#b7 by striking #c4e percent of the appraised value of the property and inserting the percentage of the appraised value of the property specified in clause 7ii72 and 7#c7 by adding at the end the following new clause3 7ii7 ,percentage of appraised value of property ,the percentage of the appraised value of a property specified in this clause is-- 7,i7 for a mortgage insured under this section after the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 #e4j percent1 subject to subclauses 7,,ii7 through 7,v72 7,,ii7 for a mortgage insured under this section after the expiration of the #a-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 #f4e percent1 subject to subclauses 7,,iii7 through 7,v72 7,,iii7 for a mortgage insured under this section after the expiration of the #b-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 #h4j percent1 subject to subclauses 7,,iv7 and 7,v72 7,,iv7 for a mortgage insured under this section after the expiration of the #c-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 #i4e percent1 subject to subclause 7,v72 and 7,v7 for a mortgage insured under this section after the expiration of the #d-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 #aa4j percent4 4 #c ,termination of ,,fha credit guarantees #aea4 ,termination of ,,fha insurance authority 7a7 ,termination ,effective upon the expiration of the #e-year period beginning on the date of the enactment of this ,act1 the ,secretary of ,housing and ,urban ,development may not insure1 guarantee1 or make any mortgage or other loan pursuant to any of the following provisions of law3 7#a7 ,national ,housing ,act ,titles ,i1 ,,ii1 ,v1 ,,vi1 ,,vii1 ,,viii1 ,,ix1 and ,,xi of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjb et seq41 #agjg et seq41 #agca;a et seq41 #agcf et seq41 #agdg et seq41 #agdh et seq41 #agej et seq41 #agdi;aaa et seq474 7#b7 ,energy efficient mortgages program ,section #ajf of the ,energy ,policy ,act of #aiib 7#ab ,u4,s4,c4 #agjaz-#af7 or section #eac of the ,housing and ,community ,development ,act of #aiib 7,public ,law #ajb-eej2 #ajf ,stat4 #cghf74 7#c7 ,flexible subsidy program ,section #bja of the ,housing and ,community ,development ,amendments of #aigh 7#ab ,u4,s4,c4 #agaez-#a;a74 7#d7 ,loan guarantees for ,indian housing ,section #ahd of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#ac;a74 7#e7 ,loan guarantees for ,native ,hawaiian housing ,section #ahd;,a of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#ac;b74 7#f7 ,multifamily mortgage credit program ,section #edb of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#bb74 7b7 ,repeals ,effective upon the expiration of the period referred to in subsection 7a71 the provisions of law specified in such subsection are repealed4 7c7 ,transfer of ,,fha functions to ,secretary of the ,treasury ,effective upon the expiration of the period referred to in subsection 7a71 all ,,fha functions are transferred to the ,secretary of the ,treasury1 but only to the extent necessary to fulfill outstanding obligations of the ,department of ,housing and ,urban ,development under such provisions and windup the business of the ,department of ,housing and ,urban ,development under such provisions4 7d7 ,resolution and termination of ,,fha functions 7#a7 ,resolution of functions ,the ,secretary of the ,treasury shall-- 7,a7 complete the disposition and resolution of ,,fha functions in accordance with this section2 and 7,b7 resolve all ,,fha functions that are transferred to the ,secretary under subsection 7c74 7#b7 ,termination of functions ,all ,,fha functions that are transferred to the ,secretary under subsection 7c7 shall terminate on the date all obligations of the ,,fha1 and all obligations of others to the ,,fha1 in effect immediately before the expiration of the period referred to in subsection 7a7 have been satisfied1 as determined by the ,secretary of the ,treasury4 7#c7 ,report to ,congress ,upon making the determination described in paragraph 7#b71 the ,secretary of the ,treasury shall report the determination to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7e7 ,duties of ,secretary of the ,treasury 7#a7 ,in general ,the ,secretary of the ,treasury shall be responsible for the implementation of this section1 including-- 7,a7 the administration and wind-up of all ,,fha functions transferred to the ,secretary under subsection 7c72 7,b7 the administration and wind-up of any outstanding obligations of the ,federal ,government under any programs terminated by this section2 and 7,c7 taking such other actions as may be necessary to wind-up any outstanding affairs of the ,,fha4 7f7 ,personnel ,effective upon the expiration of the period referred to in subsection 7a71 there are transferred to the ,department of the ,treasury all individuals1 who-- 7#a7 immediately before such expiration1 were officers or employees of the ,department of ,housing and ,urban ,development2 and 7#b7 in their capacity as such an officer or employee1 performed functions that are transferred to the ,secretary under subsection 7c74 7g7 ,exercise of authorities ,except as otherwise provided by law1 a ,federal official to whom a function is transferred by this section1 for purposes of performing the function and subject to subsection 7c71 exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date of the transfer of the function under this section4 7h7 ,transfer of assets ,except as otherwise provided in this section so much of the personnel1 property1 records1 and unexpended balances of appropriations1 allocations1 and other funds employed1 used1 held1 available1 or to be made available in connection with a function transferred to an official or agency by this section shall be available to the official or the head of that agency1 respectively1 at such time or times as the ,director of the ,office of ,management and ,budget directs for use in connection with the functions transferred4 7i7 ,delegation and assignment ,except as otherwise expressly prohibited by law1 an official to whom functions are transferred under this section 7including the head of any office to which functions are transferred under this section7 may delegate any of the functions so transferred to such officers and employees of the office of the official as the official may designate1 and may authorize successive redelegations of such functions as may be necessary or appropriate4 ,no delegation of functions under this subsection or under any other provision of this section shall relieve the official to whom a function is transferred under this section of responsibility for the administration of the function4 7j7 ,authority of ,secretary of the ,treasury with respect to functions transferred 7#a7 ,determinations ,if necessary1 the ,secretary of the ,treasury shall make any determination of the functions that are transferred under this section4 7#b7 ,incidental transfers ,the ,secretary of the ,treasury1 at such time or times as the ,secretary shall provide1 may make such determinations as may be necessary with regard to the functions transferred by this section1 and to make such additional incidental dispositions of personnel1 assets1 liabilities1 grants1 contracts1 property1 records1 and unexpended balances of appropriations1 authorizations1 allocations1 and other funds held1 used1 arising from1 available to1 or to be made available in connection with such functions1 as may be necessary to carry out the provisions of this section4 7k7 ,savings provisions 7#a7 ,authority regarding outstanding commitments ,notwithstanding the repeals under subsection 7b71 the ,secretary may insure1 guarantee1 or make any mortgage for which a commitment to insure1 guarantee1 or make was made before the effective date of such repeals under the provision of law repealed4 ,any such mortgage shall be subject to the terms of the provisions of law repealed as in effect immediately before such repeal4 7#b7 ,effect on outstanding mortgage insurance ,any mortgage insurance1 funds1 or activities subject1 before repeal1 to a provision of law repealed by subsection 7b7 shall continue to be governed by the provision as in effect immediately before repeal4 7#c7 ,existing rights1 duties1 and obligations not affected ,subsections 7a7 and 7b7 shall not affect the validity of any right1 duty1 or obligation of the ,united ,states1 the ,secretary of ,housing and ,urban ,development1 or any other person1 which-- 7,a7 arises under any provision of law repealed by subsection 7b72 and 7,b7 existed immediately before the effective date of such repeals4 7#d7 ,legal ,documents ,all orders1 determinations1 rules1 regulations1 permits1 grants1 loans1 contracts1 agreements1 certificates1 licenses1 and privileges-- 7,a7 that have been issued1 made1 granted1 or allowed to become effective by the ,secretary of ,housing and ,urban ,development1 any officer or employee of any office transferred by this section1 or any other ,government official1 or by a court of competent jurisdiction1 in the performance of any function that is transferred by this section1 and 7,b7 that are in effect upon the expiration of the period referred to in subsection 7a7 7or become effective after such date pursuant to their terms as in effect upon such expiration71 shall continue in effect according to their terms until modified1 terminated1 superseded1 set aside1 or revoked in accordance with law by the ,president1 any other authorized official1 a court of competent jurisdiction1 or operation of law4 7#e7 ,proceedings ,this section shall not affect any proceedings or any application for any benefits1 service1 license1 permit1 certificate1 or financial assistance pending upon the expiration of the period referred to in subsection 7a7 before an office transferred by this section1 but such proceedings and applications shall be continued4 ,orders shall be issued in such proceedings1 appeals shall be taken therefrom1 and payments shall be made pursuant to such orders1 as if this section had not been enacted1 and orders issued in any such proceeding shall continue in effect until modified1 terminated1 superseded1 or revoked by a duly authorized official1 by a court of competent jurisdiction1 or by operation of law4 ,nothing in this paragraph shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted4 7#f7 ,nonabatement of actions ,no action or other proceeding commenced by or against the ,secretary of ,housing and ,urban ,development in connection with functions transferred to the ,secretary of the ,treasury under subsection 7c7 shall abate by reason of the enactment of this section1 except that the ,secretary of the ,treasury shall be substituted for the ,secretary of ,housing and ,urban ,development as a party to any such action or proceeding4 7#g7 ,suits ,this section shall not affect suits commenced before the expiration of the period referred to in subsection 7a71 and in all such suits1 proceeding shall be had1 appeals taken1 and judgments rendered in the same manner and with the same effect as if this section had not been enacted4 ,if any ,government officer in the official capacity of such officer is party to a suit with respect to a function of the officer1 and under this section such function is transferred to any other officer or office1 then such suit shall be continued with the other officer or the head of such other office1 as applicable1 substituted or added as a party4 7#h7 ,administrative ,procedure and ,judicial ,review ,except as otherwise provided by this section1 any statutory requirements relating to notice1 hearings1 action upon the record1 or administrative or judicial review that apply to any function transferred by this section shall apply to the exercise of such function by the head of the ,federal agency1 and other officers of the agency1 to which such function is transferred by this section4 7l7 ,availability of existing funds ,existing appropriations and funds available for the performance of functions1 programs1 and activities terminated pursuant to this section shall remain available1 for the duration of their period of availability1 for necessary expenses in connection with the termination and resolution of such functions1 programs1 and activities4 ,upon the expiration of all contracts and agreements with respect to such functions1 programs1 and activities1 any unexpended balances of the funds referred to in this subsection shall be deposited in the ,treasury as miscellaneous receipts4 7m7 ,references ,any reference in any other ,federal law1 ,executive order1 rule1 regulation1 or delegation of authority1 or any document of or pertaining to a department or office from which a function is transferred by this section-- 7#a7 to the head of such department or office is deemed to refer to the head of the department or office to which the function is transferred2 or 7#b7 to such department or office is deemed to refer to the department or office to which the function is transferred4 7n7 ,definitions ,for purposes of this section1 the following definitions shall apply3 7#a7 ,,fha ,the term ,,fha means the ,secretary of ,housing and ,urban ,development1 but only to the extent of the operations1 authority1 and functions of the ,secretary pursuant to the provisions of law repealed by subsection 7b74 7#b7 ,,fha functions ,the term ,,fha functions means functions under the provisions of law repealed by subsection 7b7 that1 immediately before the effective date of such repeals1 are authorized to be performed by the ,secretary of ,housing and ,urban ,development or any officer or employee of the ,department of ,housing and ,urban ,development1 or any office of the ,department of ,housing and ,urban ,development4 7#c7 ,function ,the term function includes any duty1 obligation1 power1 authority1 responsibility1 right1 privilege1 activity1 or program4 7#d7 ,office ,the term office includes any office1 administration1 agency1 bureau1 institute1 council1 unit1 organizational entity1 or component thereof4 ,c ,ending guarantees for ,government mortgage-,backed securities #afa4 ,limitation on ,,gnma guarantees ,subsection 7g7 of section #cjf of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agba7;g77 is amended by adding at the end the following new paragraph3 7#d7 ,the ,association may not enter into commitments to issue guarantees under this subsection in an aggregate amount-- 7,a7 in any month commencing after the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 that exceeds #ch1jjj1jjj1jjj1 subject to subparagraphs 7,b7 through 7,f72 7,b7 in any month commencing after the expiration of the #a-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 that exceeds #cb1jjj1jjj1jjj1 subject to subparagraphs 7,c7 through 7,f72 7,c7 in any month commencing after the expiration of the #b-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 that exceeds #bd1jjj1jjj1jjj1 subject to subparagraphs 7,d7 through 7,f72 7,d7 in any month commencing after the expiration of the #c-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 that exceeds #af1jjj1jjj1jjj1 subject to subparagraphs 7,e7 and 7,f72 7,e7 in any month commencing after the expiration of the #d-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 that exceeds #h1jjj1jjj1jjj1 subject to subparagraph 7,f72 and 7,f7 in any month commencing after the expiration of the #e-year period beginning on the date of the enactment of the ,new ,fair ,deal ,banking and ,housing ,stability ,act of #bjac1 that exceeds #j4 4 #afb4 ,abolishment of ,ginnie ,mae 7a7 ,abolishment and transfer ,effective upon the expiration of the #e-year period beginning on the date of the enactment of this ,act-- 7#a7 the ,government ,national ,mortgage ,association is abolished2 and 7#b7 all functions that1 immediately before the expiration of such period are authorized to be performed by the ,association1 any officer or employee of the ,association acting in that capacity1 or any office of the ,association1 are transferred to the ,secretary of the ,treasury4 7b7 ,repeals 7#a7 ,charter ,for provisions repealing the organic authority of the ,government ,national ,mortgage ,association1 see section #aba7;a77#a7 of this ,act4 7#b7 ,administrative expenses provision ,effective upon the expiration of the period referred to in subsection 7a71 subsection 7b7 of section #cjf of the ,housing ,act of #aiei 7#ab ,u4,s4,c4 #agba note7 is hereby repealed4 7c7 ,resolution and termination of ,,fha functions 7#a7 ,resolution of functions ,the ,secretary of the ,treasury shall-- 7,a7 complete the disposition and resolution of ,,fha functions in accordance with this section2 and 7,b7 resolve all ,,fha functions that are transferred to the ,secretary under subsection 7a77#b74 7#b7 ,termination of functions ,all ,,fha functions that are transferred to the ,secretary under subsection 7a77#b7 shall terminate on the date all obligations of the ,,fha1 and all obligations of others to the ,,fha1 in effect immediately before the expiration of the period referred to in subsection 7a7 have been satisfied1 as determined by the ,secretary of the ,treasury4 7#c7 ,report to ,congress ,upon making the determination described in paragraph 7#b71 the ,secretary of the ,treasury shall report the determination to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7d7 ,duties of ,secretary of the ,treasury 7#a7 ,in general ,the ,secretary of the ,treasury shall be responsible for the implementation of this section1 including-- 7,a7 the administration and wind-up of all ,,fha functions transferred to the ,secretary under subsection 7c72 7,b7 the administration and wind-up of any outstanding obligations of the ,federal ,government under any programs terminated by this section2 and 7,c7 taking such other actions as may be necessary to wind-up any outstanding affairs of the ,,fha4 7e7 ,personnel ,effective upon the expiration of the period referred to in subsection 7a71 there are transferred to the ,department of the ,treasury all individuals1 who-- 7#a7 immediately before such expiration1 were officers or employees of the ,department of ,housing and ,urban ,development2 and 7#b7 in their capacity as such an officer or employee1 performed functions that are transferred to the ,secretary under subsection 7c74 7f7 ,exercise of authorities ,except as otherwise provided by law1 a ,federal official to whom a function is transferred by this section1 for purposes of performing the function1 exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date of the transfer of the function under this section4 7g7 ,transfer of assets ,except as otherwise provided in this section so much of the personnel1 property1 records1 and unexpended balances of appropriations1 allocations1 and other funds employed1 used1 held1 available1 or to be made available in connection with a function transferred to an official or agency by this section shall be available to the official or the head of that agency1 respectively1 at such time or times as the ,director of the ,office of ,management and ,budget directs for use in connection with the functions transferred4 7h7 ,delegation and assignment ,except as otherwise expressly prohibited by law1 an official to whom functions are transferred under this section 7including the head of any office to which functions are transferred under this section7 may delegate any of the functions so transferred to such officers and employees of the office of the official as the official may designate1 and may authorize successive redelegations of such functions as may be necessary or appropriate4 ,no delegation of functions under this subsection or under any other provision of this section shall relieve the official to whom a function is transferred under this section of responsibility for the administration of the function4 7i7 ,authority of ,secretary of the ,treasury with respect to functions transferred 7#a7 ,determinations ,if necessary1 the ,secretary of the ,treasury shall make any determination of the functions that are transferred under this section4 7#b7 ,incidental transfers ,the ,secretary of the ,treasury1 at such time or times as the ,secretary shall provide1 may make such determinations as may be necessary with regard to the functions transferred by this section1 and to make such additional incidental dispositions of personnel1 assets1 liabilities1 grants1 contracts1 property1 records1 and unexpended balances of appropriations1 authorizations1 allocations1 and other funds held1 used1 arising from1 available to1 or to be made available in connection with such functions1 as may be necessary to carry out the provisions of this section4 7j7 ,savings provisions 7#a7 ,authority regarding outstanding commitments ,notwithstanding the repeals under subsection 7b71 the ,secretary may insure any mortgage for which a commitment to insure was made before the effective date of such repeals under the provision of law repealed4 ,any such mortgage shall be subject to the terms of the provisions of law repealed as in effect immediately before such repeal4 7#b7 ,effect on outstanding mortgage insurance ,any mortgage insurance1 funds1 or activities subject1 before repeal1 to a provision of law repealed by subsection 7b7 shall continue to be governed by the provision as in effect immediately before repeal4 7#c7 ,existing rights1 duties1 and obligations not affected ,subsections 7a7 and 7b7 shall not affect the validity of any right1 duty1 or obligation of the ,united ,states1 the ,secretary of ,housing and ,urban ,development1 or any other person1 which-- 7,a7 arises under any provision of law repealed by subsection 7b72 and 7,b7 existed immediately before the effective date of such repeals4 7#d7 ,legal ,documents ,all orders1 determinations1 rules1 regulations1 permits1 grants1 loans1 contracts1 agreements1 certificates1 licenses1 and privileges-- 7,a7 that have been issued1 made1 granted1 or allowed to become effective by the ,secretary of ,housing and ,urban ,development1 any officer or employee of any office transferred by this section1 or any other ,government official1 or by a court of competent jurisdiction1 in the performance of any function that is transferred by this section1 and 7,b7 that are in effect upon the expiration of the period referred to in subsection 7a7 7or become effective after such date pursuant to their terms as in effect upon such expiration71 shall continue in effect according to their terms until modified1 terminated1 superseded1 set aside1 or revoked in accordance with law by the ,president1 any other authorized official1 a court of competent jurisdiction1 or operation of law4 7#e7 ,proceedings ,this section shall not affect any proceedings or any application for any benefits1 service1 license1 permit1 certificate1 or financial assistance pending upon the expiration of the period referred to in subsection 7a7 before an office transferred by this section1 but such proceedings and applications shall be continued4 ,orders shall be issued in such proceedings1 appeals shall be taken therefrom1 and payments shall be made pursuant to such orders1 as if this section had not been enacted1 and orders issued in any such proceeding shall continue in effect until modified1 terminated1 superseded1 or revoked by a duly authorized official1 by a court of competent jurisdiction1 or by operation of law4 ,nothing in this paragraph shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted4 7#f7 ,nonabatement of actions ,no action or other proceeding commenced by or against the ,secretary of ,housing and ,urban ,development in connection with functions transferred to the ,secretary of the ,treasury under subsection 7c7 shall abate by reason of the enactment of this section1 except that the ,secretary of the ,treasury shall be substituted for the ,secretary of ,housing and ,urban ,development as a party to any such action or proceeding4 7#g7 ,suits ,this section shall not affect suits commenced before the expiration of the period referred to in subsection 7a71 and in all such suits1 proceeding shall be had1 appeals taken1 and judgments rendered in the same manner and with the same effect as if this section had not been enacted4 ,if any ,government officer in the official capacity of such officer is party to a suit with respect to a function of the officer1 and under this section such function is transferred to any other officer or office1 then such suit shall be continued with the other officer or the head of such other office1 as applicable1 substituted or added as a party4 7#h7 ,administrative ,procedure and ,judicial ,review ,except as otherwise provided by this section1 any statutory requirements relating to notice1 hearings1 action upon the record1 or administrative or judicial review that apply to any function transferred by this section shall apply to the exercise of such function by the head of the ,federal agency1 and other officers of the agency1 to which such function is transferred by this section4 7k7 ,availability of existing funds ,existing appropriations and funds available for the performance of functions1 programs1 and activities terminated pursuant to this section shall remain available1 for the duration of their period of availability1 for necessary expenses in connection with the termination and resolution of such functions1 programs1 and activities4 ,upon the expiration of all contracts and agreements with respect to such functions1 programs1 and activities1 any unexpended balances of the funds referred to in this subsection shall be deposited in the ,treasury as miscellaneous receipts4 7l7 ,references ,any reference in any other ,federal law1 ,executive order1 rule1 regulation1 or delegation of authority1 or any document of or pertaining to a department or office from which a function is transferred by this section-- 7#a7 to the head of such department or office is deemed to refer to the head of the department or office to which the function is transferred2 or 7#b7 to such department or office is deemed to refer to the department or office to which the function is transferred4 7m7 ,definitions ,for purposes of this section1 the following definitions shall apply3 7#a7 ,association ,the term ,association means the ,government ,national ,mortgage ,association4 7#b7 ,function ,the term function includes any duty1 obligation1 power1 authority1 responsibility1 right1 privilege1 activity1 or program4 7#c7 ,office ,the term office includes any office1 administration1 agency1 bureau1 institute1 council1 unit1 organizational entity1 or component thereof4 7#d7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 ,d ,repealing regulations that promote risky lending #aga4 ,repeal of the ,community ,reinvestment ,act of #aigg ,the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bija et seq47 is hereby repealed4 #agb4 ,repeal of ,dodd-,frank credit risk retention provisions 7a7 ,credit risk retention ,section #ae;,g of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho-#aa7 is hereby repealed4 7b7 ,study ,subsection 7c7 of section #ida of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is hereby repealed4 #agc4 ,repeal of ,dodd-,frank ability to repay and qualified mortgage provisions ,section #abi;,c of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7 is amended-- 7#a7 by striking subsections 7a7 and 7b72 and 7#b7 by redesignating subsections 7c7 through 7i7 as subsections 7a7 through 7g71 respectively4 #agd4 ,repeal of the ,home ,mortgage ,disclosure ,act of #aige ,the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq47 is hereby repealed4 #age4 ,repeal of ,federal ,home ,loan ,banks ,affordable ,housing ,program and housing goals 7a7 ,affordable ,housing ,program ,the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adba et seq47 is amended-- 7#a7 in section #aj 7#ab ,u4,s4,c4 #adcj71 by striking subsections 7g71 7h71 7i71 7j71 and 7k72 and 7#b7 by repealing section #aj;b 7#ab ,u4,s4,c4 #adcj;b74 7b7 ,housing goals ,section #aj;,c of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adcj;,c7 is hereby repealed4 #agf4 ,repeal of ,,fdic ,affordable ,housing ,program ,section #dj of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcaq7 is hereby repealed4 ,e ,stopping subsidies for certain obstacles to housing construction #aha4 ,repeal of transportation planning provisions2 rescission 7a7 ,repeals 7#a7 ,federal-aid highways ,sections #acd and #ace of title #bc1 ,united ,states ,code1 and the items relating to such sections in the analysis for chapter #a of that title1 are repealed4 7#b7 ,research1 technology1 and education ,section #eje of title #bc1 ,united ,states ,code1 and the item relating to that section in the analysis for chapter #e of that title1 are repealed4 7#c7 ,public transportation ,sections #ecjc1 #ecjd1 and #ecje of title #di1 ,united ,states ,code1 and the items relating to such sections in the analysis for chapter #ec of that title1 are repealed4 7b7 ,rescissions ,effective on the date of the enactment of this ,act1 the unobligated balances available on such date of enactment of funds made available to carry out each of the sections repealed by this section are hereby rescinded4 #ahb4 ,termination of ,,hud sustainable communities initiatives2 rescission 7a7 ,termination ,the following programs1 activities1 and initiatives of the ,department of ,housing and ,urban ,development are hereby terminated3 7#a7 ,sustainable communities initiative ,the ,sustainable ,communities ,initiative originally established under the heading ,community ,planning and ,development--,community ,development ,fund of title ,,ii of division ,a of the ,consolidated ,appropriations ,act1 #bjaj 7,public ,law #aaa-aag2 #abc ,stat4 #cjhd74 7#b7 ,sustainable communities regional planning grants ,the ,regional ,integrated ,planning ,grants program originally established under such heading4 7#c7 ,community challenge planning grants ,the ,community ,challenge ,planning ,grants program originally established under such heading4 7#d7 ,capacity building for sustainable communities ,the program for capacity building for sustainable communities originally established under such heading4 7b7 ,rescissions ,effective on the date of the enactment of this ,act1 the unobligated balances available on such date of enactment of funds made available to carry out each of the programs and initiatives terminated by subsection 7a7 are hereby rescinded4 ,,ii ,ending bank bailouts and restoring market discipline ,a ,reducing risks to bank depositors and other creditors #bja4 ,capital requirements 7a7 ,in general ,notwithstanding any other provision of law1 the appropriate ,federal regulators shall set capital standards for financial companies as provided in this section4 7b7 ,minimum capital requirement ,each financial company shall be required to maintain sufficient capital to remain adequately capitalized1 as defined under subsection 7c77#b74 7c7 ,capital categories 7#a7 ,well capitalized ,a financial company is well capitalized if the company maintains a capital level of #ab percent or more4 7#b7 ,adequately capitalized ,a financial company is adequately capitalized if the company maintains a capital level of #aj percent or more4 7#c7 ,undercapitalized ,a financial company is undercapitalized if the company maintains a capital level of less than #aj percent4 7#d7 ,significantly undercapitalized ,a financial company is significantly undercapitalized if the company maintains a capital level of less than #f percent4 7#e7 ,critically undercapitalized ,a financial company is critically undercapitalized if the company maintains a capital level of #b percent or less4 7d7 ,capital calculation ,in computing a financial company's capital for purposes of this section-- 7#a7 the value of capital shall be calculated based on the current market value of the capital1 and not by reference to the book value of such capital2 7#b7 the percentage of capital maintained by a company shall be based on the total consolidated assets of the company2 and 7#c7 there shall be no risk-weighting of assets4 7e7 ,phase-,in period ,notwithstanding subsection 7c71 during the #f-year period beginning on the date of the enactment of this ,act1 the percentages contained in paragraphs 7#a7 through 7#e7 of subsection 7c7 shall be treated as follows3 7#a7 ,during the #a-year period following the date of the enactment of this ,act1 #f percent1 #d percent1 #d percent1 #c percent1 and #b percent1 respectively4 7#b7 ,during the #a-year period following the period described under paragraph 7#a71 #g percent1 #e percent1 #e percent1 #c4e percent1 and #b percent1 respectively4 7#c7 ,during the #a-year period following the period described under paragraph 7#b71 #h percent1 #f percent1 #f percent1 #d percent1 and #b percent1 respectively4 7#d7 ,during the #a-year period following the period described under paragraph 7#c71 #i percent1 #g percent1 #g percent1 #d4e percent1 and #b percent1 respectively4 7#e7 ,during the #a-year period following the period described under paragraph 7#d71 #aj percent1 #h percent1 #h percent1 #e percent1 and #b percent1 respectively4 7#f7 ,during the #a-year period following the period described under paragraph 7#e71 #aa percent1 #i percent1 #i percent1 #e4e percent1 and #b percent1 respectively4 7f7 ,definitions ,for purposes of this section3 7#a7 ,appropriate ,federal regulator ,the term appropriate ,federal regulator-- 7,a7 has the meaning given the term appropriate ,federal banking agency under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 7,b7 means the ,board of ,governors of the ,federal ,reserve ,system1 in the case of a nonbank financial company supervised by the ,board of ,governors2 and 7,c7 means the ,national ,credit ,union ,administration ,board1 in the case of a credit union4 7#b7 ,capital ,the term capital means common equity tier #a capital and additional tier #a capital1 as such terms are defined in the notice of final rulemaking published in the ,federal ,register on ,october #aa1 #bjac 7#gh ,fed4 ,reg4 #fbagc-gd74 7#c7 ,credit union ,the term credit union includes a ,federal credit union and a ,state credit union1 as such terms are defined under section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#d7 ,depository institution ,the term depository institution has the meaning given such term under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#e7 ,depository institution holding company ,the term depository institution holding company has the meaning given such term under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#f7 ,financial company ,the term financial company means-- 7,a7 a credit union2 7,b7 a depository institution2 7,c7 a depository institution holding company2 and 7,d7 a nonbank financial company supervised by the ,board of ,governors4 7#g7 ,nonbank financial company supervised by the ,board of ,governors ,the term nonbank financial company supervised by the ,board of ,governors has the meaning given such term under section #ajb of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecaa74 #bjb4 ,,fdic insurance 7a7 ,reduction in maximum insurance amount ,section #aa7;a77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;a77#a77 is amended-- 7#a7 by amending subparagraph 7,e7 to read as follows3 7,e7 ,standard maximum deposit insurance amount defined ,for purposes of this ,act1 the term standard maximum deposit insurance amount means #aej1jjj1 adjusted as provided under subparagraph 7,f74 2 and 7#b7 in subparagraph 7,f71 by striking ,april #a of #bjaj1 and inserting ,april #a1 #bjae14 7b7 ,effective date ,the amendments made by this section shall take effect on the day that is the end of the #a-year period beginning on the date of the enactment of this ,act4 ,b ,repeal of bailout authorities #baa4 ,repeal of ,,fdic powers under the systemic risk determination ,the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is amended-- 7#a7 in section #aa7;a77#d77;,c7 7#ab ,u4,s4,c4 #ahba7;a77#d77;,c771 by striking other than section #ac7;c77#d77;,g72 and 7#b7 in section #ac7;c77#d7 7#ab ,u4,s4,c4 #ahbc7;c77#d77-- 7,a7 by striking subparagraph 7,g72 and 7,b7 by redesignating subparagraph 7,h7 as subparagraph 7,g74 #bab4 ,repeal of unusual and exigent authority of the ,federal ,reserve ,section #ac7c7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cdc7c77 is repealed4 #bac4 ,exchange ,stabilization ,fund 7a7 ,in general ,section #ecjb of title #ca1 ,united ,states ,code1 is amended by striking stabilization fund each place such term appears and inserting ,special ,drawing ,rights ,fund4 7b7 ,conforming amendments 7#a7 ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe ,section #bee7;g77#a77;,a7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ije7;g77#a77;,a77 is amended by striking ,exchange ,stabilization ,fund and inserting ,special ,drawing ,rights ,fund4 7#b7 ,emergency ,economic ,stabilization ,act of #bjjh ,the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebaa et seq47 is amended-- 7,a7 in section #aca 7#ab ,u4,s4,c4 #ebcf71 by striking ,exchange ,stabilization ,fund each place such term appears in headings and text and inserting ,special ,drawing ,rights ,fund2 and 7,b7 in the item relating to section #aca in the table of contents of such ,act1 by striking ,exchange ,stabilization ,fund and inserting ,special ,drawing ,rights ,fund4 7#c7 ,international ,financial ,institutions ,act ,section #agjd of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr-#c7 is amended by striking stabilization fund each place such term appears and inserting ,special ,drawing ,rights ,fund4 7#d7 ,special ,drawing ,rights ,act ,the ,special ,drawing ,rights ,act 7#bb ,u4,s4,c4 #bhfn et seq47 is amended by striking ,exchange ,stabilization ,fund each place such term appears and inserting ,special ,drawing ,rights ,fund4 7c7 ,references ,any reference in a law1 regulation1 document1 paper1 or other record of the ,united ,states to the ,exchange ,stabilization ,fund shall be deemed a reference to the ,special ,drawing ,rights ,fund4 7d7 ,funds used ,to reduce the debt ,the ,secretary of the ,treasury shall liquidate all property in the ,special ,drawing ,rights ,fund 7as so renamed under subsection 7a771 other than ,special ,drawing ,rights1 and use all such amounts to reduce the public debt4 7e7 ,limitation on ,fund ,section #ecjb of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a77#a7-- 7,a7 by striking is available to carry out and inserting is only available to carry out2 and 7,b7 by striking 1 and for investing in obligations of the ,united ,states ,government those amounts in the fund the ,secretary of the ,treasury1 with the approval of the ,president1 decides are not required at the time to carry out this section4 ,proceeds of sales and investments1 earnings1 and interest shall be paid into the fund and are available to carry out this section4 ,however1 the fund is not available to pay administrative expenses2 and 7#b7 by striking subsection 7b7 and inserting the following3 7b7 ,fund only ,to hold ,special ,drawing ,rights ,notwithstanding any other provision of law1 only ,special ,drawing ,rights may be deposited into the ,special ,drawing ,rights ,fund4 4 7f7 ,conforming amendments 7#a7 ,bretton ,woods ,agreements ,act ,section #ah of the ,bretton ,woods ,agreements ,act 7#bb ,u4,s4,c4 #bhf;e-#c7 is hereby repealed4 7#b7 ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi ,the ,support for ,east ,european ,democracy 7,,seed7 ,act of #aihi 7#bb ,u4,s4,c4 #edja et seq47 is amended-- 7,a7 in section #aja7;b77#a7 7#bb ,u4,s4,c4 #edaa7;b77#a771 by striking such as-- and all that follows through the end of the paragraph and inserting such as the authority provided in section #ajb7;c7 of this ,act42 and 7,b7 in section #ajb7;a7 7#bb ,u4,s4,c4 #edab7;a771 by striking section #aja7;b7-- and all that follows through the end of the subsection and inserting section #aja7;b71 should work closely with the ,european ,community and international financial institutions to determine the extent of emergency assistance required by ,poland for the fourth quarter of #aihi44 7g7 ,treatment of certain funds ,funds that would otherwise have been deposited into the ,special ,drawing ,rights ,fund 7as so renamed under subsection 7a771 but for the amendments made by this section1 shall instead be paid to the ,secretary of the ,treasury1 and the ,secretary of the ,treasury shall use such funds to reduce the public debt4 7h7 ,wind-,down period for certain transactions ,notwithstanding any other provision of this section1 during the #c-year period beginning on the date of the enactment of this ,act1 property other than ,special ,drawing ,rights may be deposited1 and maintained1 in the ,special ,drawing ,rights ,fund as needed to fulfill any outstanding obligations on the ,fund4 ,c ,bankruptcy1 not bailouts1 for complex financial institutions #bba4 ,reforming the bankruptcy code to accommodate failing financial institutions 7a7 ,findings ,the ,congress finds the following3 7#a7 ,bailouts undermine market discipline and the rule of law1 resulting in doubt about property rights and insulating recipients from the consequences of their mistakes4 7#b7 ,a number of complex financial institutions are widely considered to be too big to fail4 7#c7 ,an aggravating factor in the #bjjh financial crisis was uncertainty about the security and priority of claims stemming from cross-border resolution of complex financial institutions4 7#d7 ,the ,federal ,deposit ,insurance ,corporation 7,,fdic7 has historically resolved most failing ,u4,s4 depository institutions and has the necessary expertise and discretionary authority to conduct such resolutions quickly4 7#e7 ,the ,,fdic's authority did not extend to all components of very large1 complex financial institutions1 such as insurance1 stockbroker1 and commodity broker operations4 7#f7 ,the ,u4,s4 ,constitution authorizes ,congress to establish uniform laws on the subject of ,bankruptcies through the ,united ,states4 7#g7 ,bankruptcy provides predictable priority for claims under the rule of law through the jurisdiction of an ,article ,,iii court4 7#h7 ,the lengthy adjudication of claims to ensure equality under the law of similarly situated creditors under bankruptcy can be problematic in the case of financial institutions but can be amended to preserve and protect value4 7#i7 ,the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act did not establish a non-discretionary1 rule-of-law-based resolution process to provide certainty for creditors of failing institutions4 7#aj7 ,a credible resolution process could eliminate the use of bailouts and other political interventions4 7#aa7 ,additional reforms are necessary to bring certainty and predictability to the failure of large1 complex1 multinational financial institutions4 7b7 ,sense of ,congress ,it is the sense of ,congress that the ,committees on the ,judiciary and ,financial ,services of the ,house of ,representatives and the ,committees on the ,judiciary and ,banking1 ,housing1 and ,urban ,affairs of the ,senate should each report legislation proposing changes to existing law within each committee's jurisdiction with provisions to accommodate bankruptcy proceedings for failing multinational financial institutions4 ,such committees should consider reforms that-- 7#a7 establish a new chapter of the bankruptcy code specifically for financial institutions1 to be used in conjunction with the existing chapter #g liquidation or chapter #aa reorganization process2 7#b7 replace or supplement existing resolution authorities for certain kinds of institutions2 7#c7 clarify that such resolution proceedings occur at the holding company level2 7#d7 designate particular judges in the ,second and ,d4,c4 ,circuits who will hear these cases and who may appoint special masters with technical expertise to aid in the resolution2 7#e7 continue to use ,,fdic expertise to resolve such institutions under the oversight of the court2 7#f7 remove exemptions from bankruptcy proceedings for certain subsidiaries of complex financial institutions1 such as insurance and brokerage operations2 7#g7 allow primary regulators to petition for involuntary bankruptcy cases against a financial institution1 to have standing and raise motions1 and to file plans of reorganization2 7#h7 establish procedures for debtor-in-possession financing to provide partial or complete payouts to some or all creditors in certain circumstances2 7#i7 develop rules for the applicability of short-term automatic stays for certain qualified financial contracts2 7#aj7 recapitalize reorganized institutions at the holding company level1 possibly by converting long-term debt into equity2 7#aa7 collaborate with foreign governments to avoid domestic ring-fencing of failing multinational financial institutions whose holding companies are located elsewhere2 7#ab7 ensure that institutions in conservatorship do not receive advantageous tax or regulatory treatment over comparable financial institutions outside of the bankruptcy process2 and 7#ac7 such other additional and conforming reforms as the ,committees consider necessary4