,,ii  #aac? ,,congress  #a/ ,session    
,s4 #ajdh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bc1 #bjac ,mr4   
,isakson introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to revoke ! *>t]s = ! ,f$]al   
,national ,mortgage ,corporation & !    
,f$]al ,home ,loan ,mortgage            
,corporation ^u resolution ( _!         
obligations1 to create a new ,mortgage  
,f9ance ,ag5cy = ! securitization ( s+le
 family & multifamily mortgages1 & = o!r
 purposes4  #a4 ,%ort title2 f9d+s  7a7 
,%ort title ,?is ,act may be cit$ z !   
,mortgage ,f9ance ,act ( #bjac4  7b7    
,f9d+s ,congress f9ds t--  7#a7         
dep5dable1 transp>5t1 & liquid prim>y & 
second>y m>kets = high-quality          
resid5tial & multifamily mortgages are  
critical to a safe & s\nd h\s+ m>ket2   
7#b7 ,congress wi%es to t]m9ate !       
,congressional *>t]s & op]ations ( !    
,f$]al ,national ,mortgage ,association 
& ! ,f$]al ,home ,loan ,mortgage        

,corporation1 & to w9d !m d[n ?r\gh an  
ord]ly receiv]%ip process1 )\t disrupt+ 
! h\s+ m>kets2  7#c7 taxpay]s h exp5d$  
billions ( doll>s on behalf ( ! ,f$]al  
,national ,mortgage ,association & !    
,f$]al ,home ,loan ,mortgage            
,corporation dur+ ! p]iod ( _!          
cons]vator%ip1 & su* exp5ditures %\ld be
 rec\p$2  7#d7 increas$ p>ticipation by 
! private sector to provide mortgage    
m>ket liquidity & cr$it risk mitigation 
is necess>y & desirable to r$uce        
dep5d5ce on ,gov]nm5t gu>antees1 & to   
make remote any future ne$s = taxpay]   
assi/ance2  7#e7 ?is ,act creates a new 
transitional facility to gu>antee       
securitizations ( high-quality          
resid5tial mortgages1 to ensure a s\nd &
 /able h\s+ m>ket2  7#f7 multiple lay]s 
( private capital & ! creation ( an     
indu/ry-fund$ ,cata/rophic ,fund w make 
future risk to taxpay]s highly remote2 &
  7#g7 ?is ,act provides = !            
privatization ( ! transitional facility 
aft] #aj ye>s1 ) proce$s be+ paid to !  

,unit$ ,/ates ,treasury4  #b4           
,def9itions ,= purposes ( ?is ,act1     
unless ! context o!rwise requires1 !    
foll[+ def9itions %all apply3  7#a7     
,bo>d ( directors ,! t]m ,bo>d (        
,directors means ! ,bo>d ( ,directors ( 
! ,mortgage ,f9ance ,ag5cy4  7#b7 ,*>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#c7         
,director ,! t]m ,director1 o!r ?an 9 ! 
context ( ! ,director ( ! ,f$]al ,h\s+  
,f9ance ,ag5cy1 means ! ,director ( !   
,mortgage ,f9ance ,ag5cy4  7#d7         
,ent]prise ,! t]m ent]prise means--     
7,a7 ! ,f$]al ,national ,mortgage       
,association2 &  7,b7 ! ,f$]al ,home    
,loan ,mortgage ,corporation4  7#e7     
,,fhfa ,! t]m ,,fhfa means ! ,f$]al     

,h\s+ ,f9ance ,ag5cy4  7#f7 ,mortgage   
,f9ance ,ag5cy2 ,,mfa ,! t]ms ,mortgage 
,f9ance ,ag5cy & ,,mfa mean ! ag5cy     
e/abli%$ "u title ,,ii4  7#g7 ,,mfa     
c]tification date ,! t]m ,,mfa          
c]tification date means ! date on :i* ! 
,director c]tifies t ! ,,mfa is         
op]ational & able to p]=m ! gu>antee    
function = qualifi$ mortgage-back$      
securities collat]aliz$ by qualifi$     
resid5tial mortgages1 z provid$ 9 ?is   
,act1 :i* date %all be n lat] ?an #ah   
mon?s aft] ! date ( enactm5t ( ?is ,act4
  7#h7 ,qualifi$ issu] ,! t]m qualifi$  
issu] means a p]son :o orig9ates or     
pur*ases1 & s]vices1 a qualifi$         
resid5tial mortgage or a qualifi$       
multifamily mortgage1 & is approv$ to   
issue securities gu>ante$ by ! ,,mfa1 9 
accordance ) ?is ,act & ) ! guidel9es   
issu$ by ! ,,mfa "u section #cjb4  7#i7 
,qualifi$ mortgage-back$ securities ,!  
t]m qualifi$ mortgage-back$ securities  
means securities collat]aliz$ by        
qualifi$ resid5tial mortgages or        

qualifi$ multifamily mortgages1 z ! case
 may be1 issu$ by a qualifi$ issu] &    
gu>ante$ by ! ,,mfa ) respect to !      
timely paym5t ( pr9cipal & int]e/1 all 9
 accordance ) ?is ,act4  7#aj7 ,qualifi$
 multifamily mortgage ,! t]m qualifi$   
multifamily mortgage means a comm]cial  
real e/ate loan secur$ by a prop]ty ) #e
 or m s+le family units1 ! prim>y s\rce 
( repaym5t = :i* is expect$ to be d]iv$ 
f ! proce$s ( ! sale1 ref9anc+1 or      
p]man5t f9anc+ ( ! prop]ty1 or r5tal    
income g5]at$ by ! prop]ty1 t--  7,a7   
has be5 orig9at$ ) an initial loan to   
value ratio ( n m ?an #ge p]c5t & ) an  
initial debt s]vice cov]age ratio ( at  
lea/ #a4be2 or  7,b7 ) respect to :i*1 !
 mortgage l5d] reta9s a pro rata v]tical
 slice ( cr$it risk 9 an am\nt to be    
det]m9$ by ! ,,mfa4  7#aa7 ,qualifi$    
resid5tial mortgage ,! t]m qualifi$     
resid5tial mortgage means a resid5tial  
real e/ate loan secur$ by a prop]ty ) #a
 to #d s+le family units t has be5      
orig9at$ 9 compliance ) ! foll[+        

und]writ+ /&>ds & product features3     
7,a7 ,docum5tation & v]ification ( !    
f9ancial res\rces reli$ ^u to qualify ! 
mortgagor4  7,b7 ,/&>ds ) respect to !  
income & s*$ul$ debt paym5ts ( !        
mortgagor1 includ+--  7i7 "o or m (--   
7,i7 ! residual income ( ! mortgagor    
aft] all mon?ly obligations2  7,,ii7 !  
ratio ( ! h\s+ paym5ts ( ! mortgagor to 
! mon?ly income ( ! mortgagor2 &        
7,,iii7 ! ratio ( total mon?ly in/allm5t
 paym5ts ( ! mortgagor to ! income ( !  
mortgagor2 &  7ii7 mitigation ( !       
pot5tial = paym5t %ock on adju/able rate
 mortgages4  7,c7 ,d[npaym5ts :i* %all  
be equal to n less ?an #e p]c5t (       
pur*ase price1 &--  7i7 9 ! case ( su*  
mortgages ) d[npaym5ts equal to n less  
?an #e p]c5t b less ?an #cj p]c5t ( !   
pur*ase price1 ! mortgage is cov]$ by   
private mortgage insurance pur*as$ at ! 
"t ( orig9ation 9 an am\nt suffici5t to 
cov] ea* loan to ! equival5t ( n less   
?an a #cj p]c5t d[npaym5t2 &  7ii7 su*  
mortgage insurance is issu$ by an entity

 t is subject to regulation z a mortgage
 gu>anty insur] by ! ,/ate ( domicile ( 
su* entity or by ! ,f$]al ,insurance    
,(fice 7:i* regulation includes         
risk-bas$ capital & res]ve requirem5ts74
  7,d7 ,prohibition ( or re/rictions on 
! use ( balloon paym5ts1 negative       
amortization1 prepaym5t p5alties1       
int]e/-only paym5ts1 & o!r features t h 
be5 demon/rat$ to exhibit a high] risk (
 borr[] default4  7#ab7 ,secret>y ,! t]m
 ,secret>y means ! ,secret>y ( !        
,treasury4  ,i ,t]m9ation ( ,fannie ,mae
 & ,fr$die ,mac ,*>t]s  #aja4           
,receiv]%ip ( ! ent]prises  7a7         
,irrevocable receiv]%ip  7#a7 ,9 g5]al  
,effective on ! ,,mfa c]tification date1
 ! ,,fhfa is appo9t$ receiv] ( !        
ent]prises1 & ! ent]prises %all be plac$
 into irrevocable receiv]%ip by !       
,,fhfa1 9 accordance ) section #acfg ( !
 ,f$]al ,h\s+ ,ent]prises ,f9ancial     
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #dfag71 except t--  7,a7      
p>agraphs 7#a7 ?r\gh 7#e7 ( subsection  

7a7 ( t section #acfg d n apply )       
respect to su* appo9tm5t2 &  7,b7 prior 
to ! ,,mfa c]tification date1 !         
ent]prises %all be p]mitt$ to engage 9 !
 bus9ess ( gu>antee+ ! timely paym5t (  
pr9cipal & int]e/ on qualifi$           
mortgage-back$ securities & to und]take 
all functions necess>y to c>ry out su*  
bus9ess1 to ! ext5t t su* gu>antees are 
necess>y to provide a dep5dable1        
transp>5t1 & liquid m>ket = high quality
 mortgages = securitization4  7#b7      
,comm5cem5t ( liquidation ,imm$iately ^u
 placem5t ( ! ent]prises into           
receiv]%ip1 ! ,,fhfa %all comm5ce       
liquidation ( ! ent]prises4  7b7 ,repeal
 ( ,,gse *>t]s  7#a7 ,fannie ,mae ,!    
*>t] ( ! ,f$]al ,national ,mortgage     
,association1 is repeal$1 effective #ij 
days aft] ! date on :i* liquidation !re(
 is complete1 9 accordance ) ?is ,act4  
7#b7 ,fr$die ,mac ,! *>t] ( ! ,f$]al    
,home ,loan ,mortgage ,corporation1 is  
repeal$1 effective #ij days aft] ! date 
on :i* liquidation !re( is complete1 9  

accordance ) ?is ,act4  7c7 ,rule (     
con/ruction ,= purposes ( any provision 
( ,f$]al law t ref]s to or relies on a  
decision by ! ,director ( ! ,,fhfa to   
place an ent]prise into receiv]%ip1 su* 
det]m9ation %all be deem$ to h be5 made 
by op]ation ( ! placem5t ( ! ent]prises 
into receiv]%ip "u subsection 7a74      
#ajb4 ,repaym5t ( ,gov]nm5t assi/ance2  
maximiz+ return to taxpay]s  7a7 ,9     
g5]al ,aft] fully satisfy+ ! out/&+     
obligations ( ! ent]prises 9 a mann]    
consi/5t ) _! receiv]%ip /atus1 all     
rema9+ proce$s f ! op]ations ( !        
ent]prises 9 receiv]%ip %all be paid by 
! ,,fhfa to ! ,g5]al ,fund ( ! ,unit$   
,/ates ,treasury 9 repaym5t ( ,gov]nm5t 
assi/ance provid$ 9 connection ) ensur+ 
! solv5cy & resolution ( ! ent]prises   
prior to ! date ( enactm5t ( ?is ,act4  
7b7 ,maximum return to taxpay] ,! comb9$
 assets ( ! ent]prises1 includ+         
on-balance %eet portfolios1 %all be     
manag$ by ! ,,fhfa z receiv] to obta9   
resolutions t maximize ! return = !     

taxpay]1 to ! ext5t t--  7#a7 su*       
resolutions are consi/5t ) ! goal (     
support+ a s\nd1 /able1 & liquid h\s+   
m>ket2 &  7#b7 su* resolutions are      
consi/5t ) applicable law4  7c7 ,transf]
 ( proce$s ( privatization & cata/rophic
 fund ,! proce$s f privatization ( !    
,,mfa ^u t]m9ation ( its au?ority 9     
accordance ) section #cjd %all be       
deposit$ into ! ,g5]al ,fund ( ! ,unit$ 
,/ates ,treasury4 ,^u su* t]m9ation ( ! 
au?ority ( ! ,,mfa1 ! ,cata/rophic ,fund
 %all be transf]r$ to ! ,g5]al ,fund ( !
 ,unit$ ,/ates ,treasury1 & ! ,unit$    
,/ates ,treasury %all assume            
responsibility = & honor any rema9+     
obligations ( ! ,,mfa1 ( :atev] nature &
 until su* "t z !y are ext+ui%$4  #ajc4 
,report to ,congress ,^u ! resolution ( 
all valid claims ( ! ent]prises1 !      
,director ( ! ,,fhfa %all submit a      
report by ! ,,fhfa z receiv] ( !        
ent]prises to ! ,committee on ,bank+1   
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    

,h\se ( ,repres5tatives1 c]tify+ !      
completion ( ! receiv]%ip4  ,,ii        
,mortgage ,f9ance ,ag5cy  #bja4         
,e/abli%m5t ( ,,mfa ,!re is e/abli%$ !  
,mortgage ,f9ance ,ag5cy1 :i* %all be an
 indep5d5t ag5cy ( ! ,f$]al ,gov]nm5t4  
#bjb4 ,gov]nance  7a7 ,director  7#a7 ,9
 g5]al ,! ,,mfa %all be head$1 on a     
day-to-day basis1 by a ,director1       
appo9t$ by ! ,presid5t1 by & ) ! advice 
& cons5t ( ! ,s5ate4 ,su* appo9tm5t %all
 be made n lat] ?an #f mon?s aft] ! date
 ( enactm5t ( ?is ,act4  7#b7           
,regulatory au?ority ,! ,director %all h
 g5]al regulatory au?ority ov] ! ,,mfa1 
& %all ex]cise su* g5]al regulatory     
au?ority z necess>y to c>ry out ?is     
,act4  7#c7 ,t]m ,! ,director %all s]ve 
= a t]m ( #e ye>s4 ,an individual may   
s]ve z ,director aft] ! expiration ( !  
t]m = :i* appo9t$1 until a successor has
 be5 appo9t$ & qualifi$4  7#d7          
,vacancies ,a vacancy 9 ! (fice ( !     
,director %all be fill$ 9 ! same mann] z
 ! orig9al appo9tm5t4  7#e7 ,comp5sation

 ,! ,director %all be comp5sat$ at !    
rate prescrib$ = level ,,ii ( !         
,executive ,s*$ule "u section #ecac (   
title #e1 ,unit$ ,/ates ,code4  7b7     
,bo>d ( directors  7#a7 ,memb]s ,!      
op]ations ( ! ,,mfa %all be direct$ by a
 #e-memb] ,bo>d ( ,directors1 includ+ ! 
,director1 :o %all s]ve z ! *airp]son ( 
! ,bo>d ( ,directors1 a ,vice ,*airman1 
:o %all be appo9t$ by ! ,presid5t1 !    
,*airman ( ! ,securities & ,ex*ange     
,commission1 or a designee !re(1 !      
,secret>y ( ,h\s+ & ,urban ,developm5t1 
or a designee !re(1 & ! ,*airman ( !    
,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve    
,sy/em1 or a designee !re(4  7#b7       
,majority vote ,a majority vote ( all   
memb]s ( ! ,bo>d ( ,directors is        
necess>y to resolve all vot+ issues ( ! 
,,mfa4  7#c7 ,meet+s ,! ,bo>d (         
,directors %all meet at ! call ( !      
,director1 b 9 no ev5t less frequ5tly   
?an once 9 ea* cal5d> qu>t]4  7#d7      
,f$]al employees ,! memb]s ( ! ,bo>d (  
,directors %all s]ve )\t additional pay 

7or b5efits 9 ! nature ( comp5sation7 = 
s]vice z a memb] ( ! ,bo>d ( ,directors4
  7#e7 ,travel exp5ses ,memb]s ( ! ,bo>d
 ( ,directors %all be entitl$ to receive
 travel exp5ses1 includ+ p] diem 9 lieu 
( subsi/5ce1 equival5t to ^? set =? 9   
sub*apt] ,i ( *apt] #eg ( title #e1     
,unit$ ,/ates ,code4  7#f7 ,bylaws ,!   
,bo>d ( ,directors may prescribe1 am5d1 
& repeal su* bylaws z may be necess>y = 
c>ry+ out ! functions ( ! ,bo>d (       
,directors4  7#g7 ,quorum ,a majority ( 
! ,bo>d ( ,directors %all con/itute a   
quorum4  7c7 ,privatization ,advisory   
,bo>d  7#a7 ,memb]s ,!re %all be appo9t$
 by ! ,presid5t a #aj-memb]             
privatization advisory bo>d4 ,to ! ext5t
 practicable1 ! ,presid5t %all seek at  
all times to h advisory bo>d memb]s )   
exp]tise 9--  7,a7 s+le family h\s+     
f9ance2  7,b7 multifamily h\s+ f9ance2  
7,c7 resid5tial real e/ate developm5t & 
sales2  7,d7 second>y m>ket /ructur+ &  
pric+2  7,e7 private mortgage insurance2
  7,f7 privatization /ructur+ &         

execution2 &  7,g7 macroeconomic policy4
  7#b7 ,role ,! roles ( ! advisory bo>d 
%all be--  7,a7 to advise ! ,bo>d (     
,directors on ! privatization ( ! ,,mfa 
^u t]m9ation ( its au?ority "u ?is ,act1
 includ+ h[ be/ to facilitate a smoo?1  
effici5t1 & ord]ly transition ( !       
gu>antee bus9ess2  7,b7 to review & op9e
 on ! /atus ( ! plann+ = privatization2 
&  7,c7 concurr5tly ) ! plan & annual & 
qu>t]ly reports pres5t$ by ! ,,mfa to   
,congress "u section #cjd7;c71 to pres5t
 to ,congress its own indep5d5t reports 
on ! plan = privatization & ! /atus     
!re(4  7d7 ,inspector g5]al ,!re %all be
 )9 ! ,,mfa an ,inspector ,g5]al1 :o    
%all be appo9t$ by ! ,presid5t 9        
accordance ) section #c7;a7 ( !         
,inspector ,g5]al ,act ( #aigh 7#e      
,u4,s4,c4 ,app47 n lat] ?an #f mon?s    
aft] ! date ( enactm5t ( ?is ,act4      
#bjc4 ,fund+ ,annual appropriations to !
 ,,mfa %all be bas$ ^u a budget submitt$
 to ,congress by ! ,,mfa & approv$ by ! 
,bo>d ( ,directors4 ,9 accordance )     

section #cjc7;a77#b71 am\nts appropriat$
 %all be rec\p$ ?r\gh collection ( !    
gu>antee fee4  #bjd4 ,regulations2      
reports  7a7 ,/>tup ,n lat] ?an #ab     
mon?s aft] ! date ( ! appo9tm5t ( !     
,director1 ! ,,mfa %all issue su*       
regulations1 guidel9es1 ord]s1          
requirem5ts1 & /&>ds z may be necess>y =
 ! e/abli%m5t & op]ation ( ! ,,mfa4  7b7
 ,report to ,congress ,n lat] ?an #f    
mon?s aft] ! date ( ! appo9tm5t ( !     
,director1 ! ,bo>d ( ,directors %all    
provide to ,congress a progress report  
on ! draft+ ( regulations & o!r         
conditions prec$5t to ! ,,mfa becom+    
fully op]ational4  #bje4 ,appe>ances    
be=e congress ,! ,director %all appe>   
be=e ,congress annually reg>d+--  7#a7 !
 safety & s\ndness ( ! ,,mfa & !        
,cata/rophic ,fund1 includ+1 beg9n+ #a  
ye> aft] ! date on :i* ! ,,mfa becomes  
op]ational1 a report by ! ,inspector    
,g5]al ( ! ,,mfa1 & a report ( an       
indep5d5t actu>y reg>d+ ! adequacy (    
gu>antee fees1 ! adequacy ( !           

,cata/rophic ,fund1 & ! adequacy ( !    
p]c5tage ( ! gu>antee fee t is be+      
allocat$ to ! ,cata/rophic ,fund2  7#b7 
any mat]ial defici5cies 9 ! conduct ( ! 
op]ations ( ! ,,mfa2  7#c7 ! ov]all     
op]ational /atus ( ! ,,mfa2  7#d7       
op]ations1 res\rces1 & p]=mance ( !     
,bo>d ( ,directors2 &  7#e7 su* o!r     
relevant matt]s relat+ to ! ,bo>d (     
,directors & ! ,,mfa4  #bjf4 ,/aff1     
exp]ts1 & consultants  7a7 ,comp5sation 
7#a7 ,9 g5]al ,! ,,mfa may appo9t & fix 
! comp5sation ( su* (fic]s1 attorneys1  
economi/s1 exam9]s1 & o!r employees z   
may be necess>y = c>ry+ out its         
functions4 ,! ,,mfa %all appo9t a ,*ief 
,risk ,(fic] n lat] ?an #ij days aft] ! 
date ( ! appo9tm5t ( ! ,director4  7#b7 
,rates ( pay ,rates ( basic pay = all   
employees ( ! ,,mfa may be set & adju/$ 
by ! ,,mfa )\t reg>d to ! provisions (  
*apt] #ea or sub*apt] ,,iii ( *apt] #ec 
( title #e1 ,unit$ ,/ates ,code4  7#c7  
,p>ity ,! ,,mfa may provide additional  
comp5sation & b5efits to employees ( !  

,,mfa1 if ! same type ( comp5sation or  
b5efits are !n be+ provid$ by any ag5cy 
ref]r$ to "u section #abjf ( ! ,f9ancial
 ,in/itutions ,re=m1 ,recov]y1 &        
,en=cem5t ,act ( #aihi 7#ab ,u4,s4,c4   
#ahcc;b7 or1 if n !n be+ provid$1 c\ld  
be provid$ by su* an ag5cy "u applicable
 provisions ( law1 rule1 or regulation4 
,9 sett+ & adju/+ ! total am\nt (       
comp5sation & b5efits = employees1 !    
,,mfa %all consult )1 & seek to ma9ta9  
comp>ability )1 ! ag5cies ref]r$ to "u  
section #abjf ( ! ,f9ancial ,in/itutions
 ,re=m1 ,recov]y1 & ,en=cem5t ,act (    
#aihi 7#ab ,u4,s4,c4 #ahcc;b74  7b7     
,detail ( gov]nm5t employees ,^u reque/ 
( ! ,director1 any ,f$]al ,gov]nm5t     
employee may be detail$ to ! ,,mfa or ! 
,bo>d ( ,directors )\t reimbursem5t1 &  
su* detail %all be )\t int]ruption or   
loss ( civil s]vice /atus or privilege4 
7c7 ,exp]ts & consultants ,! ,director  
%all procure ! s]vices ( exp]ts &       
consultants z ! ,director consid]s      
necess>y or appropriate4  ,,iii ,duties 

& responsibilities ( ! ,,mfa  #cja4     
,,mfa responsibilities ,! ,,mfa is      
au?oriz$--  7#a7 to gu>antee securities 
issu$ by qualifi$ issu]s & collat]aliz$ 
by pools ( qualifi$ resid5tial mortgages
 9 ord] to provide a dep5dable1         
transp>5t1 & liquid m>ket = high quality
 mortgages = securitization2  7#b7 to   
gu>antee securities issu$ by qualifi$   
issu]s & collat]aliz$ by pools (        
qualifi$ multifamily mortgages1 9 ord]  
to provide a dep5dable1 transp>5t1 &    
liquid m>ket = high quality multifamily 
mortgages = securitization2  7#c7 to    
*>ge & collect a gu>antee fee suffici5t 
to protect ! ,,mfa & ! ,unit$ ,/ates    
,treasury f ! risks ( gu>antee+ ! timely
 paym5t ( pr9cipal & int]e/ on qualifi$ 
mortgage-back$ securities2  7#d7 to     
e/abli% & ma9ta9 a ,cata/rophic ,fund to
 m9imize ! burd5 on ! ,f$]al ,gov]nm5t1 
by sett+ aside am\nts t w be available  
solely to pay obligations "u ! ,,mfa    
gu>antee 9 ! ev5t ( any future mortgage 
m>ket collapse2 &  7#e7 to pur*ase      

supplem5tal insurance cov]age1 z provid$
 9 section #cjc7;d74  #cjb4 ,,mfa       
,gu>antee bus9ess  7a7 ,9 g5]al ,! ,,mfa
 %all gu>antee ! timely paym5t (        
pr9cipal & int]e/ to hold]s ( qualifi$  
mortgage-back$ securities4 ,9 ! ev5t ( a
 paym5t default on a mortgage t         
collat]alizes a qualifi$ mortgage-back$ 
security1 ! ,,mfa gu>antee %all cov] any
 %ortfalls to security hold]s aft] giv+ 
effect to proce$s1 if any1 f liquidation
 ( ! prop]ty secur+ ! mortgage & f      
claims paid pursuant to any private     
mortgage insurance cov]age 7includ+     
supplem5tal insurance cov]age1 if any74 
,! ,,mfa gu>antee ( timely paym5t (     
pr9cipal & int]e/ on qualifi$           
mortgage-back$ securities %all be back$ 
by ! full fai? & cr$it ( ! ,unit$ ,/ates
 ,gov]nm5t4 ,! ,,mfa %all *>ge a fee =  
su* gu>antee 9 accordance ) section     
#cjc4  7b7 ,qualifi$ ,resid5tial        
,mortgages & ,qualifi$ ,multifamily     
,mortgages ,! ,,mfa %all issue guidel9es
 consi/5t ) ?is ,act specify+ ! t]ms &  

conditions ( mortgages t satisfy--  7#a7
 ! def9ition ( a qualifi$ resid5tial    
mortgage1 n lat] ?an #f mon?s aft] !    
date ( confirmation ( ! ,director2 &    
7#b7 ! def9ition ( a qualifi$           
multifamily mortgage1 n lat] ?an #a ye> 
aft] ! date ( confirmation ( !          
,director4  7c7 ,guidel9es  7#a7 ,9     
g5]al ,n lat] ?an #ab mon?s aft] ! date 
( confirmation ( ! ,director1 ! ,,mfa   
%all issue guidel9es design$ to ov]see !
 f9ancial condition & orig9ation &      
s]vic+ /&>ds ( qualifi$ issu]s & s]vic]s
 ( qualifi$ resid5tial mortgages &      
qualifi$ multifamily mortgages t        
collat]alize qualifi$ mortgage-back$    
securities4  7#b7 ,inclusions ,guidel9es
 issu$ "u ?is subsection %all--  7,a7   
include specific f9ancial & op]ational  
/&>ds = su* qualifi$ issu]s & su*       
s]vic]s2 &  7,b7 ensure--  7i7 broad    
p>ticipation 9 ! issuance ( qualifi$    
mortgage-back$ securities by community  
banks1 cr$it unions1 national banks1 &  
,/ate-lic5s$ mortgage l5d]s2  7ii7 t    

qualifi$ issu]s be> ! risk (            
noncompliance ) repres5tations &        
w>ranties made 9 connection ) ! issuance
 ( qualifi$ mortgage-back$ securities2 &
  7iii7 t qualifi$ issu]s h ! f9ancial  
res\rces to support any obligations     
aris+ f any violations ( repres5tations 
& w>ranties made 9 connection ) !       
issuance ( qualifi$ mortgage-back$      
securities4  7d7 ,limitations  7#a7     
,qualifi$ resid5tial mortgage loan      
limits ,! ,,mfa %all set loan limits =  
qualifi$ resid5tial mortgages t secure  
qualifi$ mortgage-back$ securities4 ,su*
 loan limits %all be calculat$ & set    
annually1 on a c\nty-by-c\nty basis1 at 
an am\nt equal to n m ?an #aej p]c5t ( !
 area m$ian home price = ! prec$+ ye>1 &
 n less ?an ! national m$ian home price 
= su* ye>1 9 ea* case calculat$ us+ home
 price data compil$ by ! ,,fhfa or1 if !
 ,,fhfa no long] compiles su* data1 by !
 ,,mfa4 ,9 no ev5t %all ! loan limits 9 
effect "u ?is section 9 any c\nty be l[]
 ?an am\nts applicable to s+le family   

mortgages insur$ by ! ,f$]al ,h\s+      
,adm9i/ration "u title ,,ii ( !         
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq47 9 su* c\nty4  7#b7       
,qualifi$ multifamily mortgage loan     
limits ,! ,,mfa1 9 consultation ) !     
,bo>d ( ,directors1 %all consid] sett+  
loan limits = qualifi$ multifamily      
mortgages t secure qualifi$             
mortgage-back$ securities1 if su* limits
 w\ld fo/] competition betwe5 ! ,,mfa & 
private issu]s 9 advance ( !            
privatization ( ! ,,mfa4  7#c7          
,prohibition on inve/m5t portfolio ,!   
,,mfa %all n inve/ 9 mortgage-back$     
securities or o!rwise ma9ta9 an inve/m5t
 portfolio1 o!r ?an to ! ext5t necess>y 
= ! ,,mfa to c>ry out its               
responsibilities z gu>antor ( qualifi$  
mortgage-back$ securities4  #cjc4       
,gu>antee fees2 cata/rophic fund2       
supplem5tal insurance  7a7 ,gu>antee    
,fees  7#a7 ,gu>antee ,fees ,! ,,mfa    
%all *>ge a gu>antee fee "u ?is section 
9 connection ) any gu>antee issu$ by !  

,,mfa ( timely paym5t ( pr9cipal &      
int]e/ on ! qualifi$ mortgage-back$     
securities4 ,at all times1 ! gu>antee   
fee %all be set at an equal am\nt = all 
qualifi$ issu]s4 ,! am\nt ( ! gu>antee  
fee %all be adju/$ p]iodically1 z       
necess>y to fulfill ! purposes describ$ 
9 p>agraph 7#b74  7#b7 ,purposes ,!     
purposes ( ! gu>antee fees are--  7,a7  
to fund ! op]ations ( ! ,,mfa2  7,b7 to 
capitalize ! ,cata/rophic ,fund2  7,c7  
to cov] any losses2 &  7,d7 to pur*ase  
supplem5tal insurance cov]age1 z provid$
 9 subsection 7d74  7#c7 ,approval ,!   
,bo>d ( ,directors %all approve ! am\nt 
( gu>antee fees & any adju/m5ts !reto1 &
 %all det]m9e ! p]c5tage ( ! gu>antee   
fees1 if any1 t w be allocat$ to !      
,cata/rophic ,fund 9 accordance )       
subsection 7b74 ,su* p]c5tage may be    
adju/$ by ! ,bo>d ( ,directors          
semiannually1 z necess>y to ensure t !  
,cata/rophic ,fund is adequately        
capitaliz$4  7b7 ,creation (            
,cata/rophic ,fund  7#a7 ,e/abli%m5t    

,!re is e/abli%$ 9 ! ,treasury ( !      
,unit$ ,/ates a fund to be kn[n z !     
,cata/rophic ,fund1 :i* ! ,,mfa %all--  
7,a7 ma9ta9 & adm9i/]2  7,b7 use to c>ry
 out its insurance & gu>antee functions1
 9 ! mann] provid$ by ?is ,act2 &  7,c7 
inve/ 9 accordance ) subsection 7c74    
7#b7 ,deposits ,! ,cata/rophic ,fund    
%all be cr$it$ )--  7,a7 ! am\nt (      
gu>antee fees1 if any1 t ! ,bo>d (      
,directors det]m9es %\ld be allocat$ to 
! ,cata/rophic ,fund to protect aga9/   
cata/rophic losses2  7,b7 any am\nts    
e>n$ on inve/m5ts ( ! ,cata/rophic      
,fund1 o!r ?an z ne$$ 9 connection ) !  
r\t9e op]ation ( ! gu>antee bus9ess2 &  
7,c7 su* o!r am\nts z may o!rwise be    
cr$it$ to ! ,cata/rophic ,fund by !     
,bo>d ( ,directors4  7#c7 ,uses ,!      
,cata/rophic ,fund %all be solely       
available to ! ,,mfa = use by ! ,,mfa to
 satisfy obligations "u its gu>antee 9  
accordance ) ?is ,act4 ,am\nts rema9+ 9 
! ,cata/rophic ,fund foll[+ ! repaym5t (
 all qualifi$ mortgage-back$ securities 

%all be di/ribut$ to ! ,unit$ ,/ates    
,treasury 9 accordance ) section        
#ajb7;c74  7c7 ,actu>ial review ,beg9n+ 
#a ye> aft] ! date on :i* ! ,,mfa       
becomes fully op]ational1 & ea* ye>     
!reaft]1 ! ,bo>d ( ,directors %all      
commission an indep5d5t actu>ial /udy to
 det]m9e ! adequacy ( ! gu>antee fees & 
( ! capitalization ( ! ,cata/rophic     
,fund1 ! results ( :i* /udy %all be made
 available to ! public by ! ,bo>d (     
,directors4 ,! ,bo>d ( ,directors %all  
rely on su* /udy to det]m9e ! am\nt ( ! 
gu>antee fee t %all be *>g$ & ! p]c5tage
 ( ! gu>antee fees t %all be allocat$ to
 ! ,cata/rophic ,fund4  7d7 ,inve/m5ts  
7#a7 ,au?ority ,am\nts 9 ! ,cata/rophic 
,fund t are n o!rwise employ$ %all be   
inve/$ 9 obligations ( ! ,unit$ ,/ates  
or 9 obligations gu>ante$ z to pr9cipal 
& int]e/ by ! ,unit$ ,/ates4  7#b7      
,limitation ,! ,,mfa may n sell or      
pur*ase any obligations describ$ 9      
p>agraph 7#a7 = its own acc\nt1 at any  
"o "t aggregat+ 9 excess ( #a1jjj1jjj1  

)\t ! approval ( ! ,secret>y4 ,!        
,secret>y may approve a transaction or  
class ( transactions subject to !       
provisions ( ?is p>agraph "u su*        
conditions z ! ,secret>y may det]m9e4   
7e7 ,supplem5tal cov]age  7#a7 ,9 g5]al 
,! ,,mfa may use a portion ( ! gu>antee 
fee to pur*ase supplem5tal insurance    
cov]age on (f]+s ( qualifi$             
mortgage-back$ securities4 ,! gu>antee  
fee %all be set 9 an am\nt t is         
suffici5t to cov] ! co/ ( su*           
supplem5tal insurance1 9 addition to !  
o!r purposes set =? 9 subsection        
7a77#b74 ,! supplem5tal insurance %all  
insure aga9/ losses1 if any1 aft] giv+  
effect to ! prim>y1 fir/ loss mortgage  
insurance cov]age on mortgages          
collat]aliz+ ! mortgage-back$           
securities4  7#b7 ,r$uc$ exposure ,!    
supplem5tal insurance %all be /ructur$  
to fur!r r$uce ! exposure ( ! ,unit$    
,/ates ,gov]nm5t to losses aris+ "u its 
gu>antee on qualifi$ mortgage-back$     
securities t are cov]$ by supplem5tal   

insurance4 ,sep>ate insurance cov]age   
%all be provid$ = ea* new (f]+ (        
qualifi$ mortgage-back$ securities4     
7#c7 ,pur*ase ( supplem5tal cov]age     
requir$  7,a7 ,9 g5]al ,n lat] ?an #a   
ye> aft] ! ,,mfa c]tification date1 !   
,bo>d ( ,directors %all issue guidel9es 
to det]m9e :e!r supplem5tal cov]age--   
7i7 is be+ (f]$ on comm]cially          
reasonable t]ms2 &  7ii7 is reasonably  
likely to mitigate ! risk t ! ,,mfa w h 
to make any paym5t pursuant to its      
gu>antee4  7,b7 ,cov]age requir$ ,beg9n+
 n lat] ?an #c ye>s aft] ! ,,mfa        
c]tification date1 ! ,,mfa %all pur*ase 
supplem5tal cov]age = ea* (f]+ (        
qualifi$ mortgage-back$ securities if ! 
,,mfa det]m9es t ! supplem5tal cov]age  
meets ! guidel9es issu$ by ! ,bo>d (    
,directors "u subp>agraph 7,a74  7#d7   
,au?ority to pur*ase supplem5tal cov]age
 ,! ,,mfa may pur*ase supplem5tal       
cov]age f any mortgage insurance company
 au?oriz$ to provide mortgage insurance 
on a qualifi$ resid5tial mortgage1 or f 

any o!r lic5s$ insurance company )      
comp>able regulatory ov]sight1 capital1 
& res]ve requirem5ts4  #cjd4 ,no limit  
on private sector involvem5t2 t]m9ation 
( au?ority  7a7 ,private entities       
enc\rag$ ,no?+ 9 ?is ,act %all be       
con/ru$ z prev5t+ ! private sector f    
securitiz+ qualifi$ resid5tial          
mortgages1 qualifi$ multifamily         
mortgages1 or o!r non-qualifi$          
resid5tial s+le family or multifamily   
mortgages4 ,! ,,mfa %all enc\rage robu/ 
competition betwe5 ! ,,mfa & private    
issu]s to facilitate ! soone/ possible  
privatization ( ! ,,mfa4  7b7 ,t]m9ation
 ( au?ority ,! au?ority grant$ to !     
,,mfa "u ?is ,act %all expire #aj ye>s  
aft] ! date ( enactm5t ( ?is ,act1 & !  
,,mfa %all be t]m9at$ on t date4 ,!     
,,mfa1 9 consultation ) ! ,bo>d (       
,directors1 %all beg9 plann+ = su*      
t]m9ation dur+ ! ?ird ye> foll[+ ! date 
( enactm5t ( ?is ,act4  7c7 ,p]iodic    
,reports on ,privatization  7#a7        
,initial report ,dur+ ! fif? ye> foll[+ 

! date ( enactm5t ( ?is ,act1 ! ,,mfa   
%all pres5t to ,congress a detail$ plan 
= privatization ( ! ,,mfa ^u t]m9ation (
 its au?ority 9 accordance ) subsection 
7b74  7#b7 ,regul> reports ,to ensure ! 
transf] to privatization1 ! ,,mfa %all  
report to ,congress on ! implem5tation (
 ! detail$ plan = privatization submitt$
 "u p>agraph 7#a7--  7,a7 annually ?r\gh
 ! sev5? ye> foll[+ ! date ( enactm5t ( 
?is ,act2 &  7,b7 qu>t]ly1 beg9n+ 9 !   
eigh? ye> foll[+ ! date ( enactm5t ( ?is
 ,act4  ,,iv ,con=m+ am5dm5ts  #dja4    
,am5dm5ts to ,dodd-,frank ,act ,section 
#ae;,g ( ! ,securities ,ex*ange ,act (  
#aicd 7#ae ,u4,s4,c4 #gho-#aa7 is       
am5d$--  7#a7 9 subsection 7a7--  7,a7  
by r$esignat+ p>agraphs 7#c7 & 7#d7 z   
p>agraphs 7#d7 & 7#e71 respectively2 &  
7,b7 by ins]t+ aft] p>agraph 7#b7 !     
foll[+3  7#c7 ! t]m qualifi$ resid5tial 
mortgage has ! same mean+ z 9 section #b
 ( ! ,mortgage ,f9ance ,act ( #bjac2  2 
&  7#b7 by add+ at ! end ! foll[+3  7j7 
,exemption = qualifi$ mortgage-,back$   

securities ,qualifi$ mortgage-back$     
securities1 z def9$ 9 section #b ( !    
,mortgage ,f9ance ,act ( #bjac1 & any   
o!r securitizations ( qualifi$          
resid5tial mortgages1 %all be exempt f !
 risk ret5tion provisions ( subsection  
7c77#a77;,b77i74  4  #djb4 ,f$]al ,h\s+ 
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib  7a7 ,def9itions 
,section #acjc7bj7 ( ! ,f$]al ,h\s+     
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#dejb7bj77 is am5d$ by /rik+ means-- &  
all t foll[s ?r\gh 7,c7 any & ins]t+    
means any4  7b7 ,transf] ( functions    
,all functions ( ! ,,fhfa ) respect to !
 ent]prises1 z t t]m is def9$ 9 section 
#acjc ( ! ,f$]al ,h\s+ ,ent]prises      
,f9ancial ,safety & ,s\ndness ,act (    
#aiib 7#ab ,u4,s4,c4 #dejb71 o!r ?an any
 function relat$ to receiv]%ip ( !      
ent]prises1 are transf]r$ to ! ,,mfa1   
effective #ij days aft] ! date on :i*   
liquidation ( ! ent]prises is complete1 
9 accordance ) ?is ,act4