,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cged  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #ab1         
#bjac,mr4 ,p]lmutt] 7= himself & ,mr4   
,s*weik]t7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,f9ancial   
,s]vices  ,a ,,bill  ,to require !      
ex]cise ( clean-up call options "u      
securities issu$ by ! ,f$]al ,home ,loan
 ,mortgage ,corporation & to prohibit   
any new mortgage-back$ securities issu$ 
by su* ,corporation or ! ,f$]al         
,national ,mortgage ,association f      
conta9+ provisions = a clean-up call    
option1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,fr$die 
,mac ,,remic ,re=m ,act ( #bjac4  #b4   
,ex]cise ( clean-up call options        
,subtitle ,b ( title ,,xiii ( ! ,h\s+ & 
,community ,developm5t ,act ( #aiib 7#ab
 ,u4,s4,c4 #dfaa et seq47 is am5d$ by   
add+ at ! end ! foll[+ new section3     
#acfi;,f4 ,ex]cise ( clean-up call      
options  7a7 ,requirem5t ,9 comply+ )   
any re/riction "u law1 regulation1 ord]1

 or agreem5t ) ! ,director or !         
,secret>y ( ! ,treasury on !            
mortgage-back$ securities issu$ by !    
,f$]al ,home ,loan ,mortgage            
,corporation1 su* ,corporation or1 dur+ 
! t]m ( any cons]vator%ip or receiv]%ip 
( su* ent]prise pursuant to section     
#acfg1 ! ,director1 %all 9 ! case ( any 
mortgage-back$ security ) a clean-up    
call option 7z su* t]m is def9$ 9       
subsection 7d7 ( ?is section7 t is issu$
 by su* ,corporation1 ex]cise any option
 "u :i* ! residual hold] is will+ to %>e
 n less ?an #ej p]c5t ( any excess      
proce$s result+ f ex]cise ( su* option  
or "r ) ! ,ag5cy z cons]vator or receiv]
 ( su* ,corporation1 if su* proce$s     
b5efit ! taxpay]s ( ! ,unit$ ,/ates4    
7b7 ,prohibition reg>d+ issuance ( new  
securities ,! ,director %all prohibit ! 
,f$]al ,home ,loan ,mortgage            
,corporation & ! ,f$]al ,national       
,mortgage ,association f issu+1 aft] !  
date ( ! enactm5t ( ?is section1 any    
mortgage-back$ security ) a clean-up    

call option4  7c7 ,use ( proce$s ,to    
r$uce deficit ,! ,director %all ensure t
 any excess proce$s receiv$ z a result (
 ! ex]cise ( any clean-up call option   
%all be us$ only to r$uce ! budget      
deficit ( ! ,f$]al ,gov]nm5t4  7d7      
,def9itions  7#a7 ,mortgage-back$       
securities ,! t]m mortgage-back$        
securities means debt obligations issu$ 
9 ! =m ( p>ticipation c]tificates1      
collat]aliz$ mortgage obligations1      
mortgage-back$ comm]cial pap]1 & real   
e/ate mortgage inve/m5t conduits4  7#b7 
,mortgage-back$ security ) a clean-up   
call option ,! t]m mortgage-back$       
security ) a clean-up call option means 
any mortgage-back$ security "u :i* !re  
is an option or "r to r$eem all rema9+  
classes ( su* security at su* "t :5 !   
am\nt ( ! aggregate rema9+ pr9cipal w\ld
 be less ?an ! am\nt ( ! optional       
r$emption or clean-up call p]c5tage1 z  
def9$ 9 ! applicable (f]+ circul> or    
(f]+ circul> supplem5t4  7#c7 ,excess   
proce$s ,! t]m excess proce$s means1 )  

respect to ex]cise ( any clean-up call  
option1 ! excess ( ! net proce$s f !    
sale ( ! collat]al und]ly+ !            
mortgage-back$ security ) su* option1 & 
! r$emption price z def9$ 9 ! applicable
 (f]+ circul> or (f]+ circul> supplem5t4
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