,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #cged  ,,in ,,the ,,house ,,of  
,,representatives  ,december #ab1       
#bjac,mr4 ,perlmutter 7for himself and  
,mr4 ,schweikert7 introduced the        
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to require the exercise of  
clean-up call options under securities  
issued by the ,federal ,home ,loan      
,mortgage ,corporation and to prohibit  
any new mortgage-backed securities      
issued by such ,corporation or the      
,federal ,national ,mortgage            
,association from containing provisions 
for a clean-up call option1 and for     
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,freddie ,mac  
,,remic ,reform ,act of #bjac4  #b4     
,exercise of clean-up call options      
,subtitle ,b of title ,,xiii of the     
,housing and ,community ,development    
,act of #aiib 7#ab ,u4,s4,c4 #dfaa et   
seq47 is amended by adding at the end   
the following new section3  #acfi;,f4   

,exercise of clean-up call options  7a7 
,requirement ,in complying with any     
restriction under law1 regulation1      
order1 or agreement with the ,director  
or the ,secretary of the ,treasury on   
the mortgage-backed securities issued by
 the ,federal ,home ,loan ,mortgage     
,corporation1 such ,corporation or1     
during the term of any conservatorship  
or receivership of such enterprise      
pursuant to section #acfg1 the          
,director1 shall in the case of any     
mortgage-backed security with a clean-up
 call option 7as such term is defined in
 subsection 7d7 of this section7 that is
 issued by such ,corporation1 exercise  
any option under which the residual     
holder is willing to share not less than
 #ej percent of any excess proceeds     
resulting from exercise of such option  
or right with the ,agency as conservator
 or receiver of such ,corporation1 if   
such proceeds benefit the taxpayers of  
the ,united ,states4  7b7 ,prohibition  
regarding issuance of new securities    

,the ,director shall prohibit the       
,federal ,home ,loan ,mortgage          
,corporation and the ,federal ,national 
,mortgage ,association from issuing1    
after the date of the enactment of this 
section1 any mortgage-backed security   
with a clean-up call option4  7c7 ,use  
of proceeds ,to reduce deficit ,the     
,director shall ensure that any excess  
proceeds received as a result of the    
exercise of any clean-up call option    
shall be used only to reduce the budget 
deficit of the ,federal ,government4    
7d7 ,definitions  7#a7 ,mortgage-backed 
securities ,the term mortgage-backed    
securities means debt obligations issued
 in the form of participation           
certificates1 collateralized mortgage   
obligations1 mortgage-backed commercial 
paper1 and real estate mortgage         
investment conduits4  7#b7              
,mortgage-backed security with a        
clean-up call option ,the term          
mortgage-backed security with a clean-up
 call option means any mortgage-backed  

security under which there is an option 
or right to redeem all remaining classes
 of such security at such time when the 
amount of the aggregate remaining       
principal would be less than the amount 
of the optional redemption or clean-up  
call percentage1 as defined in the      
applicable offering circular or offering
 circular supplement4  7#c7 ,excess     
proceeds ,the term excess proceeds      
means1 with respect to exercise of any  
clean-up call option1 the excess of the 
net proceeds from the sale of the       
collateral underlying the               
mortgage-backed security with such      
option1 and the redemption price as     
defined in the applicable offering      
circular or offering circular           
supplement4  4