,,ii #aacth ,,congress #ast ,session ,s4 #abag ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #be1 #bjac ,mr4 ,corker 7for himself1 ,mr4 ,warner1 ,mr4 ,johanns1 ,mr4 ,tester1 ,mr4 ,heller1 ,ms4 ,heitkamp1 ,mr4 ,moran1 and ,mrs4 ,hagan7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide secondary mortgage market reform1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac4 7b7 ,table of ,contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,,title ,i--,federal ,mortgage ,insurance ,corporation ,sec4 #aja4 ,establishment4 ,sec4 #ajb4 ,director4 ,sec4 #ajc4 ,board of ,directors4 ,sec4 #ajd4 ,office of the ,inspector ,general4 ,sec4 #aje4 ,staff1 experts1 and consultants4 ,sec4 #ajf4 ,reports2 testimony2 audits4 ,sec4 #ajg4 ,initial funding4 ,,title ,,ii--,duties1 ,responsibilities1 and ,structure of the ,,fmic ,subtitle ,a--,duties and ,authorities ,sec4 #bja4 ,duties and responsibilities of the ,,fmic4 ,sec4 #bjb4 ,standard form credit risk-sharing mechanisms1 products1 structures1 contracts1 or other security agreements4 ,sec4 #bjc4 ,mortgage ,insurance ,fund4 ,sec4 #bjd4 ,insurance4 ,sec4 #bje4 ,authority to protect taxpayers in unusual and exigent market conditions4 ,sec4 #bjf4 ,general powers4 ,sec4 #bjg4 ,exemptions4 ,subtitle ,b--,oversight of market participants ,sec4 #baa4 ,approval of private mortgage insurers4 ,sec4 #bab4 ,approval of servicers4 ,sec4 #bac4 ,approval of issuers4 ,sec4 #bad4 ,approval of bond guarantors4 ,sec4 #bae4 ,authority to establish ,,fmic ,mutual ,securitization ,company4 ,sec4 #baf4 ,additional authority relating to oversight of market participants4 ,sec4 #bag4 ,civil money penalties4 ,sec4 #bah4 ,protection of privilege and other matters relating to disclosures by market participants4 ,subtitle ,c--,transparency in market operations ,sec4 #bba4 ,review of loan documents2 disclosures4 ,sec4 #bbb4 ,investor immunity4 ,sec4 #bbc4 ,uniform securitization agreements4 ,sec4 #bbd4 ,uniform mortgage database4 ,sec4 #bbe4 ,electronic registration of eligible mortgages4 ,subtitle ,d--,,fmic ,structure ,sec4 #bca4 ,office of ,underwriting4 ,sec4 #bcb4 ,office of ,securitization4 ,sec4 #bcc4 ,office of ,federal ,home ,loan ,bank ,supervision4 ,,title ,,iii--,transfer of powers1 personnel1 and property to ,,fmic from ,,fhfa ,sec4 #cja4 ,powers and duties transferred4 ,sec4 #cjb4 ,transfer and rights of employees of the ,,fhfa4 ,sec4 #cjc4 ,abolishment of ,,fhfa4 ,sec4 #cjd4 ,transfer of property and facilities4 ,sec4 #cje4 ,technical and conforming amendments4 ,,title ,,iv--,improving transparency1 accountability1 and efficacy within affordable housing ,sec4 #dja4 ,affordable housing allocations4 ,sec4 #djb4 ,housing ,trust ,fund4 ,sec4 #djc4 ,capital ,magnet ,fund4 ,sec4 #djd4 ,additional taxpayer protections4 ,,title ,v--,wind ,down of ,fannie ,mae and ,freddie ,mac ,sec4 #eja4 ,repeal of ,,gse charters4 ,sec4 #ejb4 ,wind down4 ,sec4 #ejc4 ,aligning purpose of conservatorship with ,,fmic4 ,sec4 #ejd4 ,conforming loan limits4 ,sec4 #eje4 ,portfolio reduction4 ,sec4 #ejf4 ,repeal of mandatory housing goals4 ,,title ,,vi--,improvements to functioning of housing market ,sec4 #fja4 ,continuation of multifamily business of the enterprises4 ,sec4 #fjb4 ,multiple lender issues4 ,sec4 #fjc4 ,,gao report on full privatization of secondary mortgage market4 ,,title ,,vii--,general provisions ,sec4 #gja4 ,authority to issue regulations4 ,sec4 #gjb4 ,fair value accounting4 ,sec4 #gjc4 ,rule of construction4 ,sec4 #gjd4 ,severability4 #b4 ,definitions ,as used in this ,act1 the following definitions shall apply3 7#a7 ,approved bond guarantor ,the term approved bond guarantor means any entity that provides credit enhancement that is approved by the ,corporation pursuant to section #bad to guarantee the timely payment of principal and interest on securities collateralized by eligible mortgages and insured by the ,corporation4 7#b7 ,approved issuer ,the term approved issuer means an issuer that is approved by the ,corporation pursuant to section #bac-- 7,a7 to issue covered securities2 and 7,b7 to purchase insurance offered by the ,corporation pursuant to title ,,ii on a covered security for which first loss credit enhancement has been secured4 7#c7 ,approved private mortgage insurer ,the term approved private mortgage insurer means an insurer that is approved by the ,corporation pursuant to section #baa to provide private mortgage insurance on eligible mortgages4 7#d7 ,approved servicer ,the term approved servicer means a servicer that is approved by the ,corporation pursuant to section #bab to administer eligible mortgages4 7#e7 ,area ,the term area-- 7,a7 means a metropolitan statistical area as established by the ,office of ,management and ,budget2 and 7,b7 for purposes of paragraph 7#aa77;,a77ii71 the median #a-;family house price for an area shall be equal to the median #a-;family house price of the county within the area that has the highest such median price4 7#f7 ,board2 ,board of ,directors ,the terms ,board and ,board of ,directors mean the ,board of ,directors of the ,federal ,mortgage ,insurance ,corporation4 7#g7 ,charter ,the term charter means-- 7,a7 with respect to the ,federal ,national ,mortgage ,association1 the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agaf et seq472 and 7,b7 with respect to the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq474 7#h7 ,corporation ,the term ,corporation means the ,federal ,mortgage ,insurance ,corporation established under title ,i4 7#i7 ,covered security ,the term covered security means a mortgage-backed security-- 7,a7 collateralized by eligible mortgages2 7,b7 which is issued subject to a standard form credit-risk sharing mechanism1 product1 structure1 contract1 or other securitization agreement developed by the ,corporation pursuant to title ,,ii2 and 7,c7 which is eligible for insurance by the ,corporation pursuant to title ,,ii1 which insurance is purchased by an approved issuer who issues covered securities4 7#aj7 ,director ,the term ,director means the ,director of the ,federal ,mortgage ,insurance ,corporation1 unless the context otherwise requires4 7#aa7 ,eligible mortgage ,the term eligible mortgage means a mortgage-- 7,a7 that is a residential real estate loan secured by a property with #a to #d single family units that has been originated in compliance with the provisions of section #ajbf of title #ab of the ,code of ,federal ,regulations1 as promulgated by the ,bureau of ,consumer ,financial ,protection pursuant to section #abi;,c7b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7b77 7commonly referred to as the ,ability-to-,repay and ,qualified ,mortgage ,rule72 7,b7 has a maximum original principal obligation amount that does not exceed the conforming loan limitation determined under section #ejd2 7,c7 the outstanding principal balance of which at the time of purchase of insurance available under title ,,ii-- 7i7 is less than #hj percent of the value of the property securing the mortgage2 7ii7 is not less than #hj percent but not more than #he percent of the value of the property securing the mortgage1 provided that not less than #ab percent of the unpaid principal balance of the mortgage1 accounting for any downpayment required under subparagraph 7,d71 is insured by-- 7,i7 an approved private mortgage insurer2 or 7,,ii7 lender recourse or other credit enhancement that-- 7aa7 meets standards comparable to the standards required of private mortgage insurers under section #baa2 and 7bb7 is approved by the ,corporation2 7iii7 is not less than #he percent but not more than #ij percent of the value of the property securing the mortgage1 provided that not less than #be percent of the unpaid principal balance of the mortgage1 accounting for any downpayment required under subparagraph 7,d71 is insured by-- 7,i7 an approved private mortgage insurer2 or 7,,ii7 lender recourse or other credit enhancement that-- 7aa7 meets standards comparable to the standards required of private mortgage insurers under section #baa2 and 7bb7 is approved by the ,corporation2 or 7iv7 is not less than #ij percent but not more than #ie percent of the value of the property securing the mortgage1 provided that not less than #cj percent of the unpaid principal balance of the mortgage1 accounting for any downpayment required under subparagraph 7,d71 is insured by-- 7,i7 an approved private mortgage insurer2 or 7,,ii7 lender recourse or other credit enhancement that-- 7aa7 meets standards comparable to the standards required of private mortgage insurers under section #baa2 and 7bb7 is approved by the ,corporation2 7,d7 having a downpayment which shall be equal to not less than #e percent of purchase price of the property securing the mortgage2 7,e7 that is insured by an approved ,state licensed title insurance company2 7,f7 that contains such terms and provisions with respect to insurance1 property maintenance1 repairs1 alterations1 payment of taxes1 default1 reserves1 delinquency charges1 foreclosure proceedings1 anticipation of maturity1 additional and secondary liens1 and other matters1 including matters that set forth terms and provisions for establishing escrow accounts1 performing financial assessments1 or limiting the amount of any payment made available under the mortgage as the ,corporation may prescribe2 and 7,g7 that contains such other terms or characteristics as the ,corporation1 in consultation with the ,bureau of ,consumer ,financial ,protection1 may determine necessary or appropriate4 7#ab7 ,enterprise ,the term enterprise means-- 7,a7 the ,federal ,national ,mortgage ,association and any affiliate thereof2 and 7,b7 the ,federal ,home ,loan ,mortgage ,corporation and any affiliate thereof4 7#ac7 ,federal banking agencies ,the term-- 7,a7 ,federal banking agency means1 individually1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,office of the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,national ,credit ,union ,administration1 the ,securities and ,exchange ,commission1 the ,commodities ,futures ,trading ,commission1 the ,federal ,housing ,finance ,agency1 and the ,secretary of the ,treasury2 and 7,b7 ,federal banking agencies means all of the agencies referred to in subparagraph 7,a71 collectively4 7#ad7 ,federal ,home ,loan ,bank ,the term ,federal ,home ,loan ,bank means a bank established under the authority of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adba et seq474 7#ae7 ,federal ,home ,loan ,bank ,system ,the term ,federal ,home ,loan ,bank ,system means the ,federal ,home ,loan ,banks and the ,office of ,finance and any authorized subsidiary of one or more ,federal ,home ,loan ,banks4 7#af7 ,,fmic certification date ,the term ,,fmic certification date means the date on which the ,board of ,directors certifies that the ,corporation is operational and able to perform the insurance functions for covered securities as provided in this ,act1 which date shall be not later than #e years after the date of enactment of this ,act4 7#ag7 ,insured depository institution ,the term insured depository institution means-- 7,a7 an insured depository institution1 as defined under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 a credit union that meets the definition of depository institution as that term is defined under section #ai7;b7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #dfa74 7#ah7 ,senior ,preferred ,stock ,purchase ,agreement defined ,the term ,senior ,preferred ,stock ,purchase ,agreement means-- 7,a7 the ,amended and ,restated ,senior ,preferred ,stock ,purchase ,agreement1 dated ,september #bf1 #bjjh1 as such ,agreement has been amended on ,may #f1 #bjji1 ,december #bd1 #bjji1 and ,august #ag1 #bjab1 respectively1 and as such ,agreement may be further amended and restated1 entered into between the ,department of the ,treasury and each enterprise1 as applicable2 and 7,b7 any provision of any certificate in connection with such ,agreement creating or designating the terms1 powers1 preferences1 privileges1 limitations1 or any other conditions of the ,variable ,liquidation ,preference ,senior ,preferred ,stock of an enterprise issued or sold pursuant to such ,agreement4 7#ai7 ,transfer date ,the term transfer date means the date that is #a year after the date of enactment of this ,act4 ,i ,federal ,mortgage ,insurance ,corporation #aja4 ,establishment 7a7 ,establishment ,there is hereby established the ,federal ,mortgage ,insurance ,corporation which shall have the powers hereinafter granted4 7b7 ,purpose ,the purpose of the ,corporation shall be to-- 7#a7 provide liquidity1 transparency1 and access to mortgage credit by supporting a robust secondary mortgage market and the production of residential mortgage-backed securities2 and 7#b7 protect the taxpayer from having to absorb losses incurred in the secondary mortgage market during periods of economic stress4 7c7 ,federal ,status ,the ,corporation shall be an independent agency of the ,federal ,government4 7d7 ,succession ,the ,corporation shall have succession until dissolved by ,act of ,congress4 7e7 ,principal office ,the ,corporation shall maintain its principal office in the ,district of ,columbia and shall be deemed1 for purposes of venue in civil actions1 to be a resident thereof4 7f7 ,authority ,to establish other offices ,the ,corporation may establish such other offices in such other place or places as the ,corporation may deem necessary or appropriate in the conduct of its business4 7g7 ,prohibition ,the ,corporation shall not engage in mortgage origination4 #ajb4 ,director 7a7 ,establishment of position ,there is established the position of the ,director of the ,corporation1 who shall be the head of the ,corporation4 7b7 ,appointment2 term 7#a7 ,appointment ,the ,director shall be appointed by the ,president1 by and with the advice and consent of the ,senate1 from among individuals who-- 7,a7 are citizens of the ,united ,states2 and 7,b7 have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working in1 the mortgage securities markets and housing finance4 7#b7 ,term ,the ,director shall be appointed for a term of #e years1 unless removed before the end of such term for cause by the ,president4 7#c7 ,vacancy 7,a7 ,in general ,a vacancy in the position of ,director that occurs before the expiration of the term for which a ,director was appointed shall be filled in the manner established under paragraph 7#a71 and the ,director appointed to fill such vacancy shall be appointed only for the remainder of such term4 7,b7 ,acting ,director 7i7 ,designation by the ,president 7,i7 ,eligible individuals ,if the ,senate has not confirmed a ,director1 the ,president may designate either the individual nominated1 but not yet confirmed1 for the position of ,director or a member of the ,board of ,directors to serve as the ,acting ,director1 and such ,acting ,director shall have all the rights1 duties1 powers1 and responsibilities of the ,director1 until such time as a ,director is confirmed by the ,senate4 7,,ii7 ,limitation ,no individual may serve concurrently as the ,acting ,director of the ,corporation and the ,director of the ,federal ,housing ,finance ,agency4 7#d7 ,service after end of term ,an individual may serve as the ,director after the expiration of the term for which appointed until a successor has been appointed4 7#e7 ,compensation ,the ,director shall be compensated at the rate prescribed for level ,,ii of the ,executive ,schedule under section #ecac of title #e1 ,united ,states ,code4 7#f7 ,rules of construction ,no individual-- 7,a7 may serve concurrently as the ,director of the ,corporation and the ,director of the ,federal ,housing ,finance ,agency2 and 7,b7 that has1 at any time prior to1 on1 or after the date of enactment of this ,act1 served as the ,director of the ,federal ,housing ,finance ,agency may serve as the ,director of the ,corporation4 7c7 ,membership on ,,fsoc ,the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended-- 7#a7 in section #b1 by amending paragraph 7#ab77;,e7 to read as follows3 7,e7 the ,federal ,mortgage ,insurance ,corporation1 with respect to-- 7i7 the ,mortgage ,insurance ,fund established under title ,,ii of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac2 and 7ii7 the ,federal ,home ,loan ,banks or the ,federal ,home ,loan ,bank ,system4 2 and 7#b7 in section #aaa7;b77#a77;,h71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 #ajc4 ,board of ,directors 7a7 ,board of ,directors 7#a7 ,voting members ,the management of the ,corporation shall be vested in a ,board of ,directors consisting of #e voting members-- 7,a7 #a of whom shall be the ,director1 who shall serve as ,chairperson of the ,board2 and 7,b7 #d of whom shall be appointed by the ,president1 by and with the advice and consent of the ,senate1 from among individuals who are citizens of the ,united ,states-- 7i7 #a of whom shall have demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working in1 the field of asset management2 7ii7 #a of whom shall have demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working in1 mortgage insurance markets2 7iii7 #a of whom shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working with1 lenders having less than #aj1jjj1jjj1jjj in total assets2 and 7iv7 #a of whom shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working with1 multifamily housing development4 7#b7 ,non-voting member ,the ,president shall appoint the ,director of the ,federal ,housing ,finance ,agency as an additional non-voting member of the ,board of ,directors4 ,the ,director of the ,federal ,housing ,finance ,agency shall serve as non-voting member of the ,board of ,directors until such time as that position is abolished pursuant to title ,,iii4 7#c7 ,independence 7,a7 ,in general ,each voting member of the ,board of ,directors shall be independent and neutral and maintain a fiduciary relationship to the ,corporation in performing his or her duties4 7,b7 ,independence determination ,in order to be considered independent for purposes of this paragraph1 a voting member of the ,board of ,directors-- 7i7 may not1 other than in his or her capacity as a member of the ,board of ,directors or any committee thereof-- 7,i7 accept any consulting1 advisory1 or other compensatory fee from the ,corporation2 or 7,,ii7 be a person associated with the ,corporation or with any affiliated company thereof2 and 7ii7 shall be disqualified from any deliberation involving any transaction of the ,corporation in which the member has a financial interest in the outcome of the transaction4 7#d7 ,rule of construction ,no individual that has1 at any time prior to1 on1 or after the date of enactment of this ,act1 served as the ,director or ,acting ,director of the ,federal ,housing ,finance ,agency may serve as a voting member of the ,board of ,directors4 7b7 ,administration ,except as otherwise may provided in this ,act1 the ,board of ,directors shall administer the affairs of the ,corporation fairly and impartially and without discrimination4 7c7 ,consultation ,the ,board of ,directors may1 in carrying out any duty1 responsibility1 requirement1 or action authorized under this ,act1 consult with the ,federal banking agencies or any individual ,federal banking agency1 as the ,board determines necessary and appropriate4 7d7 ,terms 7#a7 ,appointed members ,each appointed voting member shall be appointed for a term of #e years and shall serve on a full-time basis4 7#b7 ,interim appointments ,any voting member appointed to fill a vacancy occurring before the expiration of the term for which such member's predecessor was appointed shall be appointed only for the remainder of such term4 7#c7 ,continuation of service ,the ,chairperson and each appointed voting member may continue to serve after the expiration of the term of office to which such member was appointed until a successor has been appointed and qualified4 7e7 ,vacancy ,a vacancy in the voting membership of the ,board of ,directors shall not affect the powers of the ,board1 and shall be filled in the manner in which the original appointment was made4 7f7 ,voting ,a majority vote of all voting members of the ,board of ,directors is necessary to resolve all voting issues of the ,corporation4 7g7 ,meetings ,the ,board of ,directors shall meet in accordance with the bylaws of the ,corporation-- 7#a7 at the call of the ,chairperson2 and 7#b7 not less frequently than once each month4 7h7 ,quorum ,three voting members of the ,board of ,directors then in office shall constitute a quorum4 7i7 ,bylaws ,a majority of the voting members of the ,board of ,directors may amend the bylaws of the ,corporation4 7j7 ,attendance ,members of the ,board of ,directors may attend meetings of the ,corporation and vote in person1 via telephone conference1 or via video conference4 7k7 ,ineligibility for other offices during service 7#a7 ,in general ,no voting member of the ,board of ,directors may during the time such member is in office-- 7,a7 be an officer or director of any insured depository institution1 depository institution holding company1 ,federal ,reserve bank1 ,federal home loan bank1 approved servicer1 approved private mortgage insurer1 institution that originates eligible mortgages1 or institution that issues a covered security2 or 7,b7 hold stock or a controlling interest in any insured depository institution or depository institution holding company1 approved servicer1 approved private mortgage insurer1 institution that originates eligible mortgages1 or institution that issues a covered security4 7#b7 ,certification ,upon taking office1 each voting member of the ,board of ,directors shall certify under oath that such member has complied with this subsection and such certification shall be filed with the secretary of the ,board of ,directors4 7l7 ,status of employees 7#a7 ,in general ,a director1 member1 officer1 or employee of the ,corporation has no liability under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;a et seq47 with respect to any claim arising out of or resulting from any act or omission by such person within the scope of such person's employment in connection with any transaction involving the ,corporation4 ,this subsection shall not be construed to limit personal liability for criminal acts or omissions1 willful or malicious misconduct1 acts or omissions for private gain1 or any other acts or omissions outside the scope of such person's employment4 7#b7 ,effect on other law 7,a7 ,in general ,this subsection does not affect-- 7i7 any other immunities and protections that may be available to such person under applicable law with respect to such transactions2 or 7ii7 any other right or remedy against the ,corporation1 against the ,united ,states under applicable law1 or against any person other than a person described in paragraph 7#a7 participating in such transactions4 7,b7 ,rule of construction ,this subsection shall not be construed to limit or alter in any way the immunities that are available under applicable law for ,federal officials and employees not described in this subsection4 #ajd4 ,office of the ,inspector ,general 7a7 ,office of ,inspector ,general 7#a7 ,in general ,there is established the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation4 ,the head of the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation is the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation 7in this section referred to as the ,inspector ,general71 who shall be appointed by the ,president1 by and with the advice and consent of the ,senate4 7#b7 ,additional responsibilities ,in addition to carrying out the requirements established under the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app471 the ,inspector ,general shall-- 7,a7 conduct1 supervise1 and coordinate audits and investigations relating to the programs and operations of the ,corporation-- 7i7 to ensure that the first loss position that the ,corporation requires of private market holders of covered securities insured under this ,act is adequate to cover losses that might be incurred as a result of adverse economic conditions1 wherein such conditions are generally consistent with the economic conditions1 including national home price declines1 observed in the ,united ,states during moderate to severe recessions experienced during the last #ajj years2 and 7ii7 with respect to the-- 7,i7 oversight and supervision of the ,federal ,home ,loan ,banks and the ,federal ,home ,loan ,bank ,system2 and 7,,ii7 the contracting practices and procedures of the ,corporation2 and 7,b7 recommend policies for the purpose of addressing any deficiencies1 inefficiencies1 gaps1 or failures in the administration of such programs and operations4 7#c7 ,inspector ,general report2 report of independent actuary ,beginning #a year after the ,,fmic certification date1 and annually thereafter1 the ,inspector ,general and an independent actuary contracted for by the ,director shall each conduct an examination and issue a separate report regarding-- 7,a7 the adequacy of insurance fees charged by the ,board of ,directors under title ,,ii2 and 7,b7 the adequacy of the ,mortgage ,insurance ,fund established under title ,,ii4 7b7 ,amendments to ,inspector ,general ,act of #aigh ,section #aa of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7#a7 in paragraph 7#a71 by inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 after the ,director of the ,federal ,housing ,finance ,agency22 and 7#b7 in paragraph 7#b71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after the ,federal ,housing ,finance ,agency14 7c7 ,compensation ,the annual rate of basic pay of the ,inspector ,general shall be the annual rate of basic pay provided for positions at level ,,iii of the ,executive ,schedule under section #ecad of title #e1 ,united ,states ,code4 #aje4 ,staff1 experts1 and consultants 7a7 ,compensation 7#a7 ,in general ,the ,board of ,directors may appoint and fix the compensation of such officers1 attorneys1 economists1 examiners1 and other employees as may be necessary for carrying out the functions of the ,corporation4 7#b7 ,rates of pay ,rates of basic pay and the total amount of compensation and benefits for all employees of the ,corporation may be-- 7,a7 set and adjusted by the ,board of ,directors without regard to the provisions of chapter #ea or subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code2 and 7,b7 reasonably increased1 notwithstanding any limitation set forth in paragraph 7#c71 if the ,board of ,directors determines such increases are necessary to attract and hire qualified employees4 7#c7 ,parity ,the ,board of ,directors may provide additional compensation and benefits to employees of the ,corporation1 of the same type of compensation or benefits that are then being provided by any agency referred to under section #abjf of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahcc;b7 or1 if not then being provided1 could be provided by such an agency under applicable provisions of law1 rule1 or regulation4 ,in setting and adjusting the total amount of compensation and benefits for employees1 the ,board of ,directors shall consult with and seek to maintain comparability with the agencies referred to under section #abjf of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahcc;b74 7b7 ,detail of government employees ,upon the request of the ,board of ,directors1 any ,federal ,government employee may be detailed to the ,corporation without reimbursement1 and such detail shall be without interruption or loss of civil service status or privilege4 7c7 ,experts and consultants ,the ,board of ,directors may procure the services of experts and consultants as the ,board considers necessary or appropriate4 7d7 ,technical and professional advisory committees ,the ,board of ,directors may appoint such special advisory1 technical1 or professional committees as may be useful in carrying out the functions of the ,corporation4 #ajf4 ,reports2 testimony2 audits 7a7 ,reports 7#a7 ,in general ,the ,corporation shall submit1 on an annual basis1 to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a written report of its operations1 activities1 budget1 receipts1 and expenditures for the preceding #ab-month period4 7#b7 ,contents of report ,the report required under subsection 7a7 shall include an analysis of-- 7,a7 with respect to the ,mortgage ,insurance ,fund established under section #bjc-- 7i7 the current financial condition of the ,mortgage ,insurance ,fund2 7ii7 the exposure of the ,mortgage ,insurance ,fund to changes in those economic factors most likely to affect the condition of that fund2 7iii7 a current estimate of the resources needed for the ,mortgage ,insurance ,fund to achieve the purposes of this ,act2 and 7iv7 any findings1 conclusions1 and recommendations for legislative and administrative actions considered appropriate to the future activities of the ,corporation2 7,b7 the secondary mortgage market1 the housing market1 and the economy1 including through use of stress tests1 and how such analysis was used to determine and set the reserve ratio for the ,mortgage ,insurance ,fund for the preceding #ab-month period2 7,c7 whether or not the actual reserve ratio of the ,mortgage ,insurance ,fund met-- 7i7 the reserve ratio set for the preceding #ab-month period2 or 7ii7 the reserve ratio goals established in section #bjc7;e72 7,d7 how the ,corporation intends to ensure that the goals set for the reserve ratio for the ,mortgage ,insurance ,fund are to be met and maintained for the next #ab-month period1 and such analysis shall include a detailed and descriptive plan of the actions that the ,corporation intends to take pursuant to its authorities under this ,act2 7,e7 how the ,corporation has provided liquidity1 transparency1 and access to mortgage credit in its support of a robust secondary mortgage market and the production of residential mortgage-backed securities2 7,f7 the state of the private label mortgage-backed securities market1 and such analysis shall include the submission of a reasonable set of administrative1 regulatory1 and legislative proposals on how to limit the ,federal ,government's footprint in the secondary mortgage market2 7,g7 the effect that further decreases in loan limits would have on the secondary mortgage market1 the housing market1 and the economy2 and 7,h7 the state of the global covered bond market4 7b7 ,testimony ,the ,chairperson of the ,corporation1 on a biannual basis1 shall provide testimony to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7c7 ,audit of ,corporation 7#a7 ,annual audit ,the ,comptroller ,general of the ,united ,states shall annually audit the financial transactions of the ,corporation in accordance with the ,united ,states generally accepted government auditing standards as may be prescribed by the ,comptroller ,general4 7#b7 ,place of audit ,the audit required under this subsection shall be conducted at the place or places where accounts of the ,corporation are normally kept4 7#c7 ,access ,the representatives of the ,comptroller ,general shall have access to the personnel and to all books1 accounts1 documents1 papers1 records 7including electronic records71 reports1 files1 and all other papers1 automated data1 or property belonging to or under the control of or used or employed by the ,corporation pertaining to its financial transactions and necessary to facilitate the audit required under this subsection1 and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories1 fiscal agents1 and custodians4 7#d7 ,possession and custody ,all such books1 accounts1 documents1 records1 reports1 files1 papers1 and property of the ,corporation used to carry out the audit required under this subsection shall remain in the possession and custody of the ,corporation4 7#e7 ,permissible duplication ,the ,comptroller ,general may obtain and duplicate any such books1 accounts1 documents1 records1 working papers1 automated data and files1 or other information relevant to such audit without cost to the ,comptroller ,general and the ,comptroller ,general's right of access to such information shall be enforceable pursuant to section #gaf7;c7 of title #ca1 ,united ,states ,code4 7#f7 ,report 7,a7 ,submission to ,congress ,the ,comptroller ,general shall submit to ,congress a report of each annual audit conducted under this subsection4 7,b7 ,required content ,the report to ,congress required under subparagraph 7,a7 shall-- 7i7 set forth the scope of the audit2 and 7ii7 include-- 7,i7 the statement of assets and liabilities and surplus or deficit2 7,,ii7 the statement of income and expenses2 7,,iii7 the statement of sources and application of funds2 and 7,,iv7 such comments and information as the ,comptroller ,general may deem necessary to inform ,congress of the financial operations and condition of the ,corporation1 together with such recommendations with respect thereto as the ,comptroller ,general may deem advisable4 7,c7 ,copies ,a copy of each report required under subparagraph 7,a7 shall be furnished to the ,president and to the ,chairperson of the ,corporation at the time such report is submitted to the ,congress4 7#g7 ,assistance and costs 7,a7 ,permitted use of outside assistance ,for the purpose of conducting an audit under this subsection1 the ,comptroller ,general may employ by contract1 without regard to section #cgji of the ,revised ,statutes of the ,united ,states 7#da ,u4,s4,c4 #e71 professional services of firms and organizations of certified public accountants for temporary periods or for special purposes4 7,b7 ,cost of audit covered by ,corporation 7i7 ,in general ,upon the request of the ,comptroller ,general1 the ,chairperson of the ,corporation shall transfer to the ,comptroller ,general from funds available1 the amount requested by the ,comptroller ,general to cover the reasonable costs of any audit and report conducted by the ,comptroller ,general pursuant to this subsection4 7ii7 ,credit of funds ,the ,comptroller ,general shall credit funds transferred under clause 7i7 to the account at the ,treasury established for salaries and expenses of the ,government ,accountability ,office1 and such amounts shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report4 #ajg4 ,initial funding 7a7 ,in general ,section #acaf of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deaf7 is amended by adding at the end the following3 7i7 ,annual assessments relating to initial funding of the ,,fmic ,notwithstanding title ,v of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac or any other provision of law1 for the period beginning on the date of enactment of this subsection and ending on the ,,fmic certification date 7as that date is set forth under section #b7af7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac1 the ,director1 in consultation with the ,chairperson of the ,federal ,mortgage ,insurance ,corporation1 shall establish and collect from the enterprises annual assessments in addition to those required under subsection 7a7 in an amount not exceeding the amount sufficient to provide for the reasonable costs 7including administrative costs7 and expenses of the ,corporation4 ,all amounts collected under this subsection shall be transferred to the ,federal ,mortgage ,insurance ,corporation4 ,the annual assessment shall be payable semiannually for each fiscal year1 on ,october #a and ,april #a4 4 7b7 ,treatment of assessments 7#a7 ,deposit ,amounts received by the ,corporation from assessments imposed under section #acaf7;i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib shall be deposited by the ,corporation in the manner provided in section #ebcd of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #aib7 for monies deposited by the ,comptroller of the ,currency4 7#b7 ,not government funds ,the amounts received by the ,corporation from any assessment imposed under section #acaf7;i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib shall not be construed to be ,government or public funds or appropriated money4 7#c7 ,no apportionment of funds ,notwithstanding any other provision of law1 the amounts received by the ,corporation from any assessment imposed under section #acaf7;i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib shall not be subject to apportionment for the purpose of chapter #ae of title #ca1 ,united ,states ,code1 or under any other authority4 7#d7 ,use of funds 7,a7 ,in general ,the ,corporation may use any amounts received from assessments imposed under section #acaf7;i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib-- 7i7 for compensation of the employees of the ,corporation2 and 7ii7 for all other expenses of the ,corporation4 7,b7 ,treasury investments ,the ,corporation may request the ,secretary of the ,treasury to invest such portions of amounts received from assessments imposed under section #acaf7;i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib that1 in the discretion of the ,corporation1 are not required to meet the current working needs of the ,corporation4 7,c7 ,government obligations ,pursuant to a request under subparagraph 7,b71 the ,secretary of the ,treasury shall invest such amounts in ,government obligations-- 7i7 guaranteed as to principal and interest by the ,united ,states with maturities suitable to the needs of the ,corporation2 and 7ii7 bearing interest at a rate determined by the ,secretary of the ,treasury taking into consideration current market yields on outstanding marketable obligations of the ,united ,states of comparable maturity4 ,,ii ,duties1 ,responsibilities1 and ,structure of the ,,fmic ,a ,duties and ,authorities #bja4 ,duties and responsibilities of the ,,fmic 7a7 ,duties ,the principal duties of the ,corporation shall be to-- 7#a7 carry out this ,act in a manner that-- 7,a7 minimizes any potential long-term negative cost on the taxpayer2 and 7,b7 ensures1 to the maximum extent possible-- 7i7 a liquid and resilient housing finance market2 and 7ii7 the availability of mortgage credit2 7#b7 develop standard form credit risk-sharing mechanisms1 products1 structures1 contracts1 or other security agreements that require private market holders of a covered security insured under this ,act to assume the first loss position with respect to losses incurred on such securities2 7#c7 provide insurance on any covered security for which private market holders of such security have assumed the first loss position with respect to losses that may be incurred on such security in order to provide a liquid and resilient housing finance market2 7#d7 provide leadership to the housing finance market to help ensure that all geographic locations have access to mortgage credit2 7#e7 charge and collect fees in exchange for providing such insurance1 whereby such fees shall be sufficient to protect the taxpayer from the risk of providing such insurance and to fund the activities and operations of the ,corporation2 7#f7 establish and maintain a ,mortgage ,insurance ,fund2 7#g7 facilitate securitization of eligible mortgages originated by credit unions and community and mid-size banks without securitization capabilities2 7#h7 ensure discipline and integrity in the market for covered securities by setting standards for the approval of private mortgage insurers1 servicers1 issuers1 and bond guarantors2 7#i7 establish1 operate1 and maintain a database for the collection1 public use1 and dissemination of uniform loan level information on eligible mortgages2 7#aj7 develop1 adopt1 and publish standard uniform securitization agreements for covered securities2 7#aa7 establish1 operate1 and maintain an electronic registry system for eligible mortgages that collateralize covered securities insured under this ,act2 7#ab7 oversee and supervise the common securitization platform developed by the business entity announced by the ,federal ,housing ,finance ,agency and established by the enterprises2 and 7#ac7 ensure that credit unions and community and mid-size banks-- 7,a7 have equal access to any such common securitization platform and any other securitization platforms2 and 7,b7 are not1 in their access or use of such platforms1 discriminated against through discounts for volume pricing or other mechanisms4 7b7 ,scope of authority ,the authority of the ,corporation shall include the authority to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the ,corporation set forth under subsection 7a74 7c7 ,delegation of authority ,the ,board of ,directors may delegate to officers and employees of the ,corporation any of the functions1 powers1 or duties of the ,corporation1 as the ,board of ,directors determines appropriate4 #bjb4 ,standard form credit risk-sharing mechanisms1 products1 structures1 contracts1 or other security agreements 7a7 ,requirements2 share of loss2 diversity ,pursuant to section #bja7;a77#b71 the ,corporation shall develop standard form credit-risk sharing mechanisms1 products1 structures1 contracts1 or other security agreements which shall require that the first loss position of private market holders of a covered security insured under this ,act-- 7#a7 is adequate to cover losses that might be incurred as a result of adverse economic conditions1 wherein such conditions are generally consistent with the economic conditions1 including national home price declines1 observed in the ,united ,states during moderate to severe recessions experienced during the last #ajj years2 and 7#b7 is not less than #aj percent of the principal or face value of the covered security4 7b7 ,development window for risk-,sharing mechanisms 7#a7 ,in general ,the ,corporation shall complete the development and implementation of the mechanisms1 products1 structures1 contracts1 or other security agreements required under subsection 7a7 not later than #e years after the date of enactment of this ,act4 7#b7 ,examination of various mechanisms ,in developing the mechanisms1 products1 structures1 contracts1 or other security agreements required under subsection 7a71 the ,corporation shall-- 7,a7 examine proposals that include a senior-subordinated deal structure1 credit-linked structures1 and the use of regulated guarantors with sufficient equity capital to absorb losses associated with moderate or severe economic downturns2 7,b7 consider any risk-sharing mechanisms1 products1 structures1 contracts1 or other security agreements undertaken by the business entity announced by the ,federal ,housing ,finance ,agency and established by the enterprises to provide a common securitization platform for issuers in the secondary mortgage market2 7,c7 consider how each proposed mechanism1 product1 structure1 contract1 or other security agreement-- 7i7 minimizes any potential long-term negative cost to the taxpayer2 7ii7 impacts the availability of mortgage credit for-- 7,i7 small financial institutions1 such as credit unions and community and mid-size banks2 and 7,,ii7 consumers2 7iii7 influences mortgage affordability2 7iv7 allows for loan modifications and foreclosure prevention alternatives2 7v7 interacts with the ,to-,be-,announced market2 and 7vi7 facilitates market liquidity and resiliency2 and 7,d7 ensure that lenders of all sizes and from all geographic locations1 including rural locations1 have equitable access to secondary mortgage market financing4 7#c7 ,report 7,a7 ,in general ,not later than #a year after the date of enactment of this ,act1 and annually thereafter until the end of the #e-year period provided in paragraph 7#a71 the ,corporation shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives that-- 7i7 details the benefits and drawbacks of each mechanism1 product1 structure1 contract1 or other security agreement that the ,director considered in carrying out the requirement of this section2 7ii7 describes the operation and execution of any mechanisms1 products1 structures1 contracts1 or other security agreements that the ,director determines best fulfills the requirements of this section2 and 7iii7 explains how the ,corporation arrived at the determination made under clause 7ii74 7,b7 ,subsequent reports ,after the expiration of the #e-year period provided in paragraph 7#a7 and the submission of the report required under subparagraph 7,a71 each time the ,corporation develops an additional standard form credit risk-sharing mechanism1 product1 structure1 contract1 or other security agreement that fulfills the requirements of this section1 the ,corporation shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives addressing the identical concerns set forth under clauses 7i7 through 7iii7 of subparagraph 7,a74 #bjc4 ,mortgage ,insurance ,fund 7a7 ,establishment ,there is established the ,mortgage ,insurance ,fund1 which the ,corporation shall-- 7#a7 maintain and administer2 and 7#b7 use to cover losses incurred on covered securities insured under this ,act1 when such losses exceed the first position losses absorbed by private market holders of such securities4 7b7 ,deposits ,the ,mortgage ,insurance ,fund shall be credited with any-- 7#a7 insurance fee amounts required to be deposited in the ,fund under this section2 7#b7 guarantee fee amounts collected under section #fja2 and 7#c7 amounts earned on investments pursuant to subsection 7h74 7c7 ,fiduciary responsibility ,the ,corporation has the responsibility to ensure that the ,mortgage ,insurance ,fund remains financially sound4 7d7 ,use 7#a7 ,in general ,the ,mortgage ,insurance ,fund shall be solely available to the ,corporation for use by the ,corporation to carry out the functions authorized by this ,act and may not be used or otherwise diverted to cover any other expense of the ,federal ,government4 7#b7 ,exemption from apportionment ,notwithstanding any other provision of law1 amounts received by the ,mortgage ,insurance ,fund pursuant to any fees collected under this section shall not be subject to apportionment for the purposes of chapter #ae of title #ca1 ,united ,states ,code1 or under any other authority4 7e7 ,reserve ratio goals for ,mortgage ,insurance ,fund ,the ,corporation shall endeavor to ensure that the ,mortgage ,insurance ,fund attains a reserve balance-- 7#a7 of #a4be percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within #e years of the ,,fmic certification date1 and to strive to maintain such ratio thereafter1 subject to subparagraph 7,b72 and 7#b7 of #b4ej percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within #aj years of the ,,fmic certification date1 and to strive to maintain such ratio at all times thereafter4 7f7 ,maintenance of reserve ratio2 establishment of fees 7#a7 ,establishment of fees ,the ,corporation shall charge and collect a fee1 and may in its discretion increase or decrease such fee1 in connection with any insurance provided under this title to-- 7,a7 achieve and maintain the reserve ratio goals established under subsection 7e72 7,b7 achieve such reserve ratio goals1 if the actual balance of such reserve is below the goal amounts established under subsection 7e72 and 7,c7 fund the operations of the ,corporation4 7#b7 ,fee considerations ,in exercising the authority granted under paragraph 7#a71 the ,corporation shall consider-- 7,a7 the expected operating expenses of the ,mortgage ,insurance ,fund2 7,b7 the risk of loss to the ,mortgage ,insurance ,fund in carrying out the requirements under this ,act2 7,c7 the risk presented by1 and the loss absorption capacity of1 the credit enhancement that is provided on the pool of eligible mortgages collateralizing the covered security to be insured under this title2 7,d7 economic conditions generally affecting the mortgage markets2 7,e7 the extent to which the reserve ratio of the ,mortgage ,insurance ,fund met-- 7i7 the reserve ratio set for the preceding #ab-month period2 or 7ii7 the reserve ratio goals established in subsection 7e72 and 7,f7 any other factor that the ,corporation determines appropriate4 7#c7 ,fee ,uniformity ,the fee required under paragraph 7#a7-- 7,a7 shall be set at a uniform amount applicable to all institutions purchasing insurance under this title2 7,b7 may not vary-- 7i7 by geographic location2 or 7ii7 by the size of the institution to which the fee is charged2 and 7,c7 may not be based on the volume of insurance to be purchased by an approved issuer4 7#d7 ,deposit into ,mortgage ,insurance ,fund ,any fee amounts collected under this subsection shall be deposited in the ,mortgage ,insurance ,fund4 7g7 ,full ,faith and ,credit ,the full faith and credit of the ,united ,states is pledged to the payment of all amounts from the ,mortgage ,insurance ,fund which may be required to be paid under any insurance provided under this title4 7h7 ,investments ,amounts in the ,mortgage ,insurance ,fund that are not otherwise employed-- 7#a7 shall be invested in obligations of the ,united ,states2 and 7#b7 may not be invested in any covered security insured under this ,act4 #bjd4 ,insurance 7a7 ,authority ,the ,corporation shall1 upon application and in exchange for a fee in accordance with section #bjc7;f71 insure the payment of principal and interest on a covered security with respect to losses that may be incurred on such security4 7b7 ,precondition2 ensuring placement of first loss capital ,the ,corporation shall develop standards and processes to ensure that prior to making any commitment to provide insurance under this section that private market holders have taken first loss position in a covered security and that such holders have sufficient capital to cover their risk-sharing obligations4 7c7 ,cash payments2 continued operations ,in the event of a payment default on an eligible mortgage that collateralizes a covered security insured under this section that exceeds the first loss position assumed by a private market holder or that1 in the case of an approved bond guarantor1 if the guarantor has become insolvent1 the ,corporation shall-- 7#a7 pay1 in cash when due1 any shortfalls in payment of principal and interest under the eligible mortgage2 and 7#b7 continue to charge and collect any fees for the provision of insurance 7in accordance with section #bjc7;f77 relating to the covered security4 7d7 ,full faith and credit ,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 insurance provided under this section4 7e7 ,prohibition on ,federal assistance ,notwithstanding any other provision of law1 no ,federal funds may be used to purchase or guarantee obligations of1 issue lines of credit to1 provide direct or indirect access to any financing provided by the ,united ,states ,government to1 or provide direct or indirect grants and aid to any private market holder of the first loss position on a covered security which1 on or after the date of enactment of this ,act1 has defaulted on its obligations1 is at risk of defaulting1 or is likely to default1 absent such assistance from the ,united ,states ,government4 #bje4 ,authority to protect taxpayers in unusual and exigent market conditions 7a7 ,in general ,if the ,corporation1 upon the written agreement of the ,chairman of the ,board of ,governors of the ,federal ,reserve ,system and the ,secretary of the ,treasury1 and in consultation with the ,secretary of ,housing and ,urban ,development1 determines that unusual and exigent circumstances have created or threatened to create an anomalous lack of mortgage credit availability within the housing markets that could materially and severely disrupt the functioning of the housing finance system of the ,united ,states1 the ,corporation may1 for a period not to exceed #f months1 provide insurance in accord with section #bjd to any covered security regardless of whether such security has satisfied the requirements of section #bjb7;a74 7b7 ,considerations ,in exercising the authority granted under subsection 7a71 the ,corporation shall consider the severity of the conditions present in the housing markets and the risks presented to the ,mortgage ,insurance ,fund in exercising such authority4 7c7 ,limitation ,the authority granted to the ,corporation under subsection 7a7 may not be exercised more than once in any given #c-year period4 #bjf4 ,general powers 7a7 ,corporate powers ,the ,federal ,mortgage ,insurance ,corporation shall have power-- 7#a7 to adopt1 alter1 and use a corporate seal1 which shall be judicially noticed2 7#b7 to enter into and perform contracts1 leases1 cooperative agreements1 or other transactions1 on such terms as it may deem appropriate1 with any agency or instrumentality of the ,united ,states1 or with any ,state1 ,territory1 or possession1 or the ,commonwealth of ,puerto ,rico1 or with any political subdivision thereof1 or with any person1 firm1 association1 or corporation2 7#c7 to execute1 in accordance with its bylaws1 all instruments necessary or appropriate in the exercise of any of its powers2 7#d7 in its corporate name1 to sue and to be sued1 and to complain and to defend1 in any court of competent jurisdiction1 ,state or ,federal1 but no attachment1 injunction1 or other similar process1 mesne or final1 shall be issued against the property of the ,corporation2 7#e7 to conduct its business without regard to any qualification or similar statute in any ,state of the ,united ,states1 including the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 and the ,territories and possessions of the ,united ,states2 7#f7 to lease1 purchase1 or acquire any property1 real1 personal1 or mixed1 or any interest therein1 to hold1 rent1 maintain1 modernize1 renovate1 improve1 use1 and operate such property1 and to sell1 for cash or credit1 lease1 or otherwise dispose of the same1 at such time and in such manner as and to the extent that it may deem necessary or appropriate2 7#g7 to prescribe1 repeal1 and amend or modify1 rules1 regulations1 or requirements governing the manner in which its general business may be conducted2 7#h7 to accept gifts or donations of services1 or of property1 real1 personal1 or mixed1 tangible1 or intangible1 in aid of any of its purposes2 and 7#i7 to do all things as are necessary or incidental to the proper management of its affairs and the proper conduct of its business4 7b7 ,expenditures ,except as may be otherwise provided in this title1 in chapter #ia of title #ca1 ,united ,states ,code1 or in other laws specifically applicable to ,government corporations1 the ,corporation shall determine the necessity for1 and the character and amount of its obligations and expenditures1 and the manner in which they shall be incurred1 allowed1 paid1 and accounted for4 7c7 ,exemption from certain taxes ,the ,corporation1 including its franchise1 capital1 reserves1 surplus1 mortgages or other security holdings1 and income shall be exempt from all taxation now or hereafter imposed by the ,united ,states1 by any territory1 dependency1 or possession thereof1 or by any ,state1 county1 municipality1 or local taxing authority1 except that any real property of the ,corporation shall be subject to ,state1 territorial1 county1 municipal1 or local taxation to the same extent according to its value as other real property is taxed4 7d7 ,exclusive use of name ,no individual1 association1 partnership1 or corporation1 except the bodies corporate named under section #aja1 shall hereafter use the words ,federal ,mortgage ,insurance ,corporation or any combination of such words1 as the name or a part thereof under which the individual1 association1 partnership1 or corporation shall do business4 ,violations of the foregoing sentence may be enjoined by any court of general jurisdiction at the suit of the proper body corporate4 ,in any such suit1 the plaintiff may recover any actual damages flowing from such violation1 and1 in addition1 shall be entitled to punitive damages 7regardless of the existence or nonexistence of actual damages7 of not exceeding #ajj for each day during which such violation is committed or repeated4 7e7 ,fiscal agents ,the ,federal ,reserve banks are authorized and directed to act as depositories1 custodians1 and fiscal agents for each of the bodies corporate named in section #aja1 for its own account or as fiduciary1 and such banks shall be reimbursed for such services in such manner as may be agreed upon2 and each of such bodies corporate may itself act in such capacities1 for its own account or as fiduciary1 and for the account of others4 #bjg4 ,exemptions 7a7 ,securities exempt from ,,sec regulation 7#a7 ,in general ,all covered securities insured or guaranteed by the ,corporation shall1 to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the ,united ,states1 be deemed to be exempt securities within the meaning of the laws administered by the ,securities and ,exchange ,commission4 7#b7 ,conforming amendment ,the first sentence of section #c7;a77#b7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;c7a77#b77 is amended by inserting or any covered security1 as such term is defined under section #b7i7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac2 after ,federal ,reserve bank24 7b7 ,,qrm exemption ,section #ae;,g7e7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho-#aa7;e77 is amended-- 7#a7 in paragraph 7#c77;,b7-- 7,a7 by striking ,association1 the and inserting ,association and the2 and 7,b7 by striking and the ,federal home loan banks2 and 7#b7 by adding at the end the following3 7#g7 ,covered securities insured by the ,federal ,mortgage ,insurance ,corporation ,notwithstanding any other provision of this section1 the requirements of this section shall not apply to any covered security1 as such term is defined under section #b7i7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac1 insured or guaranteed by the ,federal ,mortgage ,insurance ,corporation or any institution that is subject to the supervision of the ,federal ,mortgage ,insurance ,corporation4 4 ,b ,oversight of market participants #baa4 ,approval of private mortgage insurers 7a7 ,standards for approval of private mortgage insurers 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of private mortgage insurers to provide private mortgage insurance on eligible mortgages4 7#b7 ,required standards ,the standards required under paragraph 7#a7 shall include-- 7,a7 the financial history and condition of the insurer2 7,b7 the adequacy of the insurer's capital structure1 including whether the insurer has sufficient capital to cover the first loss insurance obligations it assumes under this ,act and that might be incurred in a period of economic stress1 including1 but not limited to1 any period of economic stress that would result in a #cj percent 7or greater7 national home price decline2 7,c7 the general character and fitness of the management of the insurer1 including compliance history with ,federal and ,state laws2 7,d7 the risk presented by such insurer to the ,mortgage ,insurance ,fund2 7,e7 the adequacy of insurance and fidelity coverage of the insurer2 7,f7 a requirement that the insurer submit audited financial statements to the ,director2 and 7,g7 any other standard the ,corporation determines necessary or appropriate4 7b7 ,application and approval 7#a7 ,application process ,the ,corporation shall establish an application process1 in such form and manner and requiring such information as the ,corporation may require1 for the approval of private mortgage insurers under this section4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a7 provided the private mortgage insurer meets the standards adopted under subsection 7a74 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of newly approved private mortgage insurers2 and 7,b7 maintain an updated list of approved private mortgage insurers on the website of the ,corporation4 7c7 ,review1 suspension1 and revocation of approved status 7#a7 ,in general ,the ,corporation may review the status of any approved private mortgage insurer if the ,corporation is notified of or becomes aware of any violation by the insurer of this ,act or the rules promulgated pursuant to this ,act4 7#b7 ,suspension or ,revocation 7,a7 ,corporation authority ,if the ,corporation determines1 in a review pursuant to paragraph 7#a71 that an approved private mortgage insurer no longer meets the standards for approval1 the ,corporation may suspend or revoke the approved status of such insurer4 7,b7 ,rule of construction ,the suspension or revocation of an approved private mortgage insurer's approved status under this paragraph shall have no effect on the status of any covered security4 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of any approved private mortgage insurers who lost their approved status2 and 7,b7 maintain an updated list of such insurers on the website of the ,corporation4 7d7 ,appeals 7#a7 ,in general 7,a7 ,appeals of denials of application ,a private mortgage insurer who submits an application under subsection 7b77#a7 to become an approved private mortgage insurer may appeal a decision of the ,corporation denying such application4 7,b7 ,appeals of denials of benefits or suspensions of participation ,an approved private mortgage insurer may appeal a decision of the ,corporation suspending or revoking the approved status of such insurer4 7#b7 ,filing of appeal ,any insurer who files an appeal under paragraph 7#a7 shall file the appeal with the ,corporation not later than #ij days after the date on which the person receives notice of the decision of the ,corporation being appealed4 7#c7 ,final determination ,the ,corporation shall make a final determination with respect to an appeal under paragraph 7#a7 not later than #ahj days after the date on which the appeal is filed under paragraph 7#b74 7e7 ,avoidance of conflicts of interest ,with respect to any eligible mortgage collateralizing a covered security insured under this ,act1 an approved private mortgage insurer may not provide insurance both-- 7#a7 in satisfaction of the credit enhancement required under section #b7aa77;,c72 and 7#b7 to cover the first loss position of private market holders of such covered security4 #bab4 ,approval of servicers 7a7 ,standards for approval of servicers 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of servicers to administer eligible mortgages1 including standards with respect to-- 7,a7 the collection and forwarding of principal and interest payments2 7,b7 the maintenance of escrow accounts2 7,c7 the collection and payment of taxes and insurance premiums2 7,d7 the maintenance of records on eligible mortgages2 7,e7 the establishment of foreclosure loss mitigation programs that seek to enhance investor value and prevent1 to greatest extent possible1 the need to trigger any claim on insurance offered by the ,corporation pursuant to this title2 7,f7 the advancement of principal and interest payments to investors in the case of a delinquency by a borrower until such time as the borrower has made all payments in arrears or the property securing the eligible mortgage has been liquidated2 and 7,g7 implementing the terms of any loss mitigation and foreclosure prevention as required by a uniform securitization agreement developed under section #bbc4 7#b7 ,additional required standards ,the standards required under paragraph 7#a7 shall also include-- 7,a7 the financial history and condition of the servicer2 7,b7 the general character and fitness of the management of the servicer1 including compliance history with ,federal and ,state laws2 7,c7 the risk presented by such servicer to the ,mortgage ,insurance ,fund2 7,d7 a requirement that the servicer submit audited financial statements to the ,corporation2 and 7,e7 any other standard the ,corporation determines necessary or appropriate4 7#c7 ,coordination with other regulators ,in developing the standards required under paragraph 7#a71 the ,corporation shall-- 7,a7 coordinate with the ,bureau of ,consumer ,financial ,protection2 and 7,b7 to the extent the ,corporation determines practical and appropriate1 shall coordinate with the other ,federal banking agencies4 7b7 ,application and approval 7#a7 ,application process ,the ,corporation shall establish an application process-- 7,a7 in such form and manner and requiring such information as the ,corporation may require1 for the approval of servicers under this section2 and 7,b7 that does not discriminate against or otherwise disadvantage small servicers4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a7 provided the servicer meets the standards adopted under subsection 7a74 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of newly approved servicers2 and 7,b7 maintain an updated list of approved servicers on the website of the ,corporation4 7c7 ,review1 suspension1 and revocation of approved status 7#a7 ,in general ,the ,corporation may review the status of any approved servicer if the ,corporation is notified of or becomes aware of any violation by the servicer of this ,act or the rules promulgated pursuant to this ,act1 including any failure by an approved servicer to comply with terms set forth in any uniform securitization agreement developed under section #bbc4 7#b7 ,suspension or ,revocation 7,a7 ,corporation authority ,if the ,corporation determines1 in a review pursuant to paragraph 7#a71 that an approved servicer no longer meets the standards for approval1 the ,corporation may suspend or revoke the approved status of such servicer4 7,b7 ,rule of construction ,the suspension or revocation of an approved servicer's approved status under this paragraph shall have no effect on the status of any covered security4 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of any approved servicers who lost their approved status2 and 7,b7 maintain an updated list of such servicers on the website of the ,corporation4 7d7 ,appeals 7#a7 ,in general 7,a7 ,appeals of denials of application ,a servicer who submits an application under subsection 7b77#a7 to become an approved servicer may appeal a decision of the ,corporation denying such application4 7,b7 ,appeals of denials of benefits or suspensions of participation ,an approved servicer may appeal a decision of the ,corporation suspending or revoking the approved status of such servicer4 7#b7 ,filing of appeal ,any servicer who files an appeal under paragraph 7#a7 shall file the appeal with the ,corporation not later than #ij days after the date on which the person receives notice of the decision of the ,corporation being appealed4 7#c7 ,final determination ,the ,corporation shall make a final determination with respect to an appeal under paragraph 7#a7 not later than #ahj days after the date on which the appeal is filed under paragraph 7#b74 7e7 ,petitions for change of servicer by private market holders ,the ,corporation shall develop a process by which private market holders of the first loss position in a covered security may petition the ,corporation for a change in approved servicers if the private market holders can demonstrate that their current approved servicer has failed to appropriately protect their investment1 including by failing to meet any standard identified under subsection 7a77#a74 #bac4 ,approval of issuers 7a7 ,standards for approval of issuers 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of issuers to issue covered securities1 including standards with respect to an issuer's ability to-- 7,a7 aggregate eligible mortgage loans into pools2 7,b7 securitize eligible mortgage loans for sale to private investors as a covered security2 7,c7 transfer investment risk and credit to private market participants in accordance with the risk-sharing mechanisms developed by the ,corporation under section #bjb2 7,d7 ensure equitable access to the secondary mortgage market for covered securities for all institutions regardless of size or geographic location2 7,e7 create mechanisms for multi-lender pools2 and 7,f7 ensure that eligible mortgage loans that collateralize a covered security insured under this title are originated in compliance with the requirements of this ,act4 7#b7 ,additional required standards ,the standards required under paragraph 7#a7 shall also include-- 7,a7 the financial history and condition of the issuer2 7,b7 the adequacy of the capital structure of the issuer2 7,c7 the general character and fitness of the management of the issuer1 including compliance history with ,federal and ,state laws2 7,d7 the risk presented by such issuer to the ,mortgage ,insurance ,fund2 7,e7 the adequacy of insurance and fidelity coverage of the issuer2 7,f7 a requirement that the issuer submit audited financial statements to the ,corporation2 7,g7 the capacity of the issuer to secure first loss credit enhancement2 and 7,h7 any other standard the ,corporation determines necessary or appropriate4 7b7 ,application and approval 7#a7 ,application process 7,a7 ,in general ,the ,corporation shall establish an application process1 in such form and manner and requiring such information as the ,corporation may require1 for the approval of issuers under this section4 7,b7 ,application process for insured depository institutions ,if an insured depository institution seeks to become an approved issuer under this section1 such institution may only submit its application via a separately capitalized affiliate or subsidiary4 7#b7 ,approval ,the ,corporation-- 7,a7 may approve-- 7i7 any application made pursuant to paragraph 7#a7 provided the issuer meets the standards adopted under subsection 7a72 and 7ii7 any application to become an approved issuer made by the ,federal ,home ,loan ,bank ,system2 and 7,b7 shall ensure that at least one issuer approved to issue covered securities under this section is dedicated to serving the securitization needs of credit unions and community and mid-size banks without securitization capabilities4 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of newly approved issuers2 and 7,b7 maintain an updated list of approved issuers on the website of the ,corporation4 7c7 ,federal ,home ,loan ,bank ,system 7#a7 ,in general ,if the ,federal ,home ,loan ,bank ,system is approved by the ,corporation to become an approved issuer under this section1 the ,corporation shall-- 7,a7 develop a process by which each individual ,federal ,home ,loan ,bank may elect not to engage or otherwise contribute to any activity practiced by the ,federal ,home ,loan ,bank ,system as an approved issuer2 7,b7 ensure that1 notwithstanding section #aa of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adca71 any covered securities issued by the ,federal ,home ,loan ,bank ,system as an approved issuer are not issued as consolidated ,federal ,home ,loan ,bank debentures and are explicitly designated or otherwise treated as not being the joint and several obligations of any individual ,federal ,home ,loan ,bank that has made an election under subparagraph 7,a72 and 7,c7 ensure that in establishing the capital standards set forth under subsection 7a77#b77;,b7 with respect to the ,federal ,home ,loan ,bank ,system1 that such standards shall-- 7i7 not be applicable to any individual ,federal ,home ,loan ,bank that has made an election under subparagraph 7,a72 7ii7 be based on the volume of eligible mortgage loan originations made by the ,federal ,home ,loan ,banks that have not made an election under subparagraph 7,a72 and 7iii7 not adversely impact the traditional liquidity and advance business of the ,federal ,home ,loan ,banks or the ,federal ,home ,loan ,bank ,system4 7#b7 ,federal ,home ,loan ,bank ,act 7,a7 ,amendment ,section #ab of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adcb7 is amended by adding at the end the following3 7c7 ,subject to such regulations as may be prescribed by the ,corporation1 one or more ,federal ,home ,loan ,banks may establish a subsidiary4 ,any subsidiary established under this subsection shall be subject to supervision by the ,office of ,federal ,home ,loan ,bank ,supervision of the ,corporation and shall be restricted to engaging in activities related to being an approved issuer1 as that term is defined under section #b7b7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac4 4 7,b7 ,effective date ,the amendment made by subparagraph 7,a7 shall take effect on the transfer date4 7d7 ,review1 suspension1 and revocation of approved status 7#a7 ,in general ,the ,corporation may review the status of any approved issuer if the ,corporation is notified of or becomes aware of any violation by the issuer of this ,act or the rules promulgated pursuant to this ,act4 7#b7 ,suspension or ,revocation 7,a7 ,corporation authority ,if the ,corporation determines1 in a review pursuant to paragraph 7#a71 that an approved issuer no longer meets the standards for approval1 the ,corporation may suspend or revoke the approved status of such issuer4 7,b7 ,rule of construction ,the suspension or revocation of an approved issuer's approved status under this paragraph shall have no effect on the status of any covered security4 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of any approved issuers who lost their approved status2 and 7,b7 maintain an updated list of such issuers on the website of the ,corporation4 7e7 ,appeals 7#a7 ,in general 7,a7 ,appeals of denials of application ,an issuer who submits an application under subsection 7b77#a7 to become an approved issuer may appeal a decision of the ,corporation denying such application4 7,b7 ,appeals of denials of benefits or suspensions of participation ,an approved issuer may appeal a decision of the ,corporation suspending or revoking the approved status of such issuer4 7#b7 ,filing of appeal ,any issuer who files an appeal under paragraph 7#a7 shall file the appeal with the ,corporation not later than #ij days after the date on which the person receives notice of the decision of the ,corporation being appealed4 7#c7 ,final determination ,the ,corporation shall make a final determination with respect to an appeal under paragraph 7#a7 not later than #ahj days after the date on which the appeal is filed under paragraph 7#b74 7f7 ,limitation on market share 7#a7 ,in general ,the ,corporation may not enter into any contract1 covenant1 or other agreement with an approved issuer1 if such contract1 covenant1 or agreement would provide the issuer a share of the covered security issuer market in excess of #ae percent of the total market1 as such market is measured by the total outstanding principal balance at origination of eligible mortgages collateralizing covered securities issued in the previous #ab-month period4 7#b7 ,exception ,the limitation set forth under paragraph 7#a7 shall not apply to-- 7,a7 an approved issuer described under subsection 7b77#b77;,a77ii72 7,b7 the ,,fmic ,mutual ,securitization ,company2 7,c7 any approved issuer which securitizes only eligible mortgage loans originated by the issuer or an affiliate of the issuer2 or 7,d7 any approved issuer to which the ,corporation grants a waiver pursuant to paragraph 7#c74 7#c7 ,waiver ,the ,corporation may1 during the #c-year period beginning on the ,,fmic certification date1 grant a waiver from the limitation set forth under paragraph 7#a7 to an approved issuer if the ,corporation determines that the number of approved issuers is insufficient1 such that imposition of the limitation would adversely affect the availability of mortgage credit4 7g7 ,limited authority ,to hold eligible mortgage loans ,an approved issuer may1 for a period not to exceed #f-months1 hold-- 7#a7 eligible mortgage loans on the balance sheet of such issuer2 and 7#b7 the first loss position in a covered security for purposes of obtaining insurance under this title4 #bad4 ,approval of bond guarantors 7a7 ,standards for approval of bond guarantors 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of bond guarantors to guarantee the timely payment of principal and interest on securities collateralized by eligible mortgages and insured by the ,corporation4 7#b7 ,required standards ,the standards required under paragraph 7#a7 shall include-- 7,a7 the financial history and condition of the guarantor2 7,b7 that the guarantor maintain a minimum capital level equal to not less than #aj percent of the unpaid principal balance of outstanding mortgage-backed securities for which the guarantor is providing insurance1 net of any transactions1 including derivative transactions1 repurchase agreements1 reverse repurchase agreements1 securities lending transactions1 or securities borrowing transactions1 that in the determination of the ,corporation are used by the guarantor to hedge or mitigate against credit risk1 provided that any such hedging transaction does not diminish the total amount of loss absorption capital in the secondary mortgage market that stands in front of the insurance provided by the ,corporation under this title2 7,c7 the general character and fitness of the management of the guarantor1 including compliance history with ,federal and ,state laws2 7,d7 the risk presented by such guarantor to the ,mortgage ,insurance ,fund2 7,e7 the adequacy of insurance and fidelity coverage of the guarantor2 7,f7 a requirement that the guarantor submit audited financial statements to the ,director2 7,g7 a requirement that the guarantor meet a minimum tangible common equity level1 or other minimum capital threshold as the ,corporation determines necessary2 and 7,h7 any other standard the ,corporation determines necessary or appropriate4 7b7 ,rule of construction ,any covered security issued by an approved issuer and insured by an approved bond guarantor shall be deemed to have satisfied the credit-risk sharing requirements under section #bjb7;a77#a7 with respect to the eligibility of that security to obtain insurance under this title4 7c7 ,application and approval 7#a7 ,application process 7,a7 ,in general ,the ,corporation shall establish an application process1 in such form and manner and requiring such information as the ,corporation may require1 for the approval of bond guarantors under this section4 7,b7 ,application process by insured depository institutions ,if an insured depository institution seeks to become an approved bond guarantor under this section1 such institution may only submit its application via a separately capitalized affiliate or subsidiary4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a7 provided the bond guarantor meets the standards adopted under subsection 7a74 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of newly approved bond guarantors2 and 7,b7 maintain an updated list of approved bond guarantors on the website of the ,corporation4 7d7 ,review1 suspension1 and revocation of approved status 7#a7 ,in general ,the ,corporation may review the status of any approved bond guarantor if the ,corporation is notified of or becomes aware of any violation by the insurer of this ,act or the rules promulgated pursuant to this ,act4 7#b7 ,suspension or ,revocation 7,a7 ,corporation authority ,if the ,corporation determines1 in a review pursuant to paragraph 7#a71 that an approved bond guarantor no longer meets the standards for approval1 the ,corporation shall revoke the approved status of such guarantor4 7,b7 rule of construction ,the revocation of an approved bond guarantor's approved status under this paragraph shall have no effect on the status of any covered security4 7#c7 ,publication ,the ,corporation shall-- 7,a7 publish in the ,federal ,register a list of any approved bond guarantors who lost their approved status2 and 7,b7 maintain an updated list of such guarantors on the website of the ,corporation4 7e7 ,appeals 7#a7 ,in general 7,a7 ,appeals of denials of application ,a bond guarantor who submits an application under subsection 7c77#a7 to become an approved bond guarantor may appeal a decision of the ,corporation denying such application4 7,b7 ,appeals of denials of benefits or suspensions of participation ,an approved bond guarantor may appeal a decision of the ,corporation suspending or revoking the approved status of such guarantor4 7#b7 ,filing of appeal ,any bond guarantor who files an appeal under paragraph 7#a7 shall file the appeal with the ,corporation not later than #ij days after the date on which the person receives notice of the decision of the ,corporation being appealed4 7#c7 ,final determination ,the ,corporation shall make a final determination with respect to an appeal under paragraph 7#a7 not later than #ahj days after the date on which the appeal is filed under paragraph 7#b74 7f7 ,limitations on approved bond guarantors ,with respect to any eligible mortgage collateralizing a covered security insured under this ,act1 an approved bond guarantor may not provide insurance-- 7#a7 in satisfaction of the credit enhancement required under section #b7aa77;,c7 or as an approved private mortgage insurer pursuant to section #baa2 and 7#b7 as an approved bond guarantor under this section4 7g7 ,permission ,to carry out other activities ,nothing in this ,act prohibits an approved bond guarantor from being or controlling an approved issuer1 provided that each issuer and bond guarantor1 independent of each other1 meet the approval standards established by the ,corporation under this title4 #bae4 ,authority to establish ,,fmic ,mutual ,securitization ,company 7a7 ,in general ,the ,corporation shall establish a mutual corporation to be known as the ,,fmic ,mutual ,securitization ,company4 7b7 ,purpose ,the purpose of the ,,fmic ,mutual ,securitization ,company is to-- 7#a7 develop1 securitize1 sell1 and otherwise meet the issuing needs of credit unions1 community and mid-size banks1 and non-depository mortgage originators with respect to covered securities2 and 7#b7 purchase from its member participants for cash1 on a single loan basis1 eligible mortgage loans to securitize in a covered security4 7c7 ,sale of necessary technology ,upon the ,,fmic certification date1 the enterprises shall sell to the ,,fmic ,mutual ,securitization ,company any function1 activity1 infrastructure1 property1 including intellectual property1 platform1 or any other object or service of an enterprise that the ,corporation determines necessary for the ,,fmic ,mutual ,securitization ,company to carry out its activities and operations4 7d7 ,designation as an approved issuer ,the ,,fmic ,mutual ,securitization ,company shall be an approved issuer for purposes of section #bac4 7e7 ,eligibility ,eligibility to participate as a member in the ,,fmic ,mutual ,securitization ,company shall be limited to-- 7#a7 insured depository institutions having less than #ae1jjj1jjj1jjj in total consolidated assets at the time of the institution's initial participation in the ,company2 or 7#b7 any non-depository mortgage originator having a minimum net worth of #b1ejj1jjj4 7f7 ,governance 7#a7 ,recognition of important role of smaller institutions ,the ,corporation shall take all necessary steps to ensure that the governance provisions of the ,,fmic ,mutual ,securitization ,company reflect the important role in the mortgage market played by the small and mid-sized member participants of the ,,fmic ,mutual ,securitization ,company4 7#b7 ,establishment of position of ,director ,there is established the position of the ,director of the ,,fmic ,mutual ,securitization ,company who shall be the head of the ,company4 7#c7 ,board of ,directors 7,a7 ,in general ,the management of the ,,fmic ,mutual ,securitization ,company shall be vested in a ,board of ,directors 7hereafter referred to as the ,mutual ,board71 which shall include representatives of member participants of the ,company1 including representatives of-- 7i7 mortgage bankers2 7ii7 community banks2 and 7iii7 credit unions4 7,b7 ,initial appointment ,the ,corporation shall make initial appointments of the members of the ,mutual ,board4 ,each such initial appointment shall be for a term #a year4 7,c7 ,appointments ,following the initial #a-year appointment of the members of the ,mutual ,board1 member participants in the ,,fmic ,mutual ,securitization ,company shall elect the members of the ,mutual ,board from within the membership of the ,company4 7,d7 ,administration ,the ,mutual ,board shall administer the affairs of the ,,fmic ,mutual ,securitization ,company fairly and impartially and without discrimination4 7#d7 ,no preferences for size ,member participants of the ,,fmic ,mutual ,securitization ,company shall have equal voting rights on any matters before the ,company1 regardless of the size of the individual member participant4 7g7 ,approval of member participants 7#a7 ,in general ,the ,mutual ,board shall develop standards and procedures to approve the application of member participants in the ,,fmic ,mutual ,securitization ,company4 7#b7 ,content of standards ,the standards required under paragraph 7#a7 shall include standards relating to the safety and soundness of prospective member participants1 including standards regarding the underwriting practices of such prospective members4 7#c7 ,coordination with other regulators 7,a7 ,consultation ,in approving any prospective member to become a member participant in the ,,fmic ,mutual ,securitization ,company1 the ,mutual ,board may consult and share information with the primary prudential regulator of the prospective member4 7,b7 ,privilege preserved ,information shared pursuant to subparagraph 7,a7 shall not be construed as waiving1 destroying1 or otherwise affecting any privilege or confidential status that a prospective member may claim with respect to such information under ,federal or ,state law as to any person or entity other than the ,mutual ,board or its primary prudential regulator4 7,c7 ,rule of construction ,no provision of this subsection may be construed as implying or establishing that-- 7i7 any prospective member waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply2 or 7ii7 any prospective would waive any privilege applicable to any information by submitting the information directly to its primary prudential regulator1 but for this subsection4 7h7 ,funding authority 7#a7 ,authority to establish membership fees ,the ,mutual ,board shall have the authority to charge and collect fees1 and may in its discretion increase or decrease such fee1 on its member participants for membership in the ,,fmic ,mutual ,securitization ,company1 including to cover the costs of-- 7,a7 the initial capitalization of the ,company2 7,b7 the purchase of any function1 activity1 infrastructure1 property1 including intellectual property1 platform1 or any other object or service from an enterprise pursuant to subsection 7c72 and 7,c7 the continued operation of the ,company4 7#b7 ,limitation ,the fees authorized under paragraph 7#a7-- 7,a7 shall be equitably assessed2 and 7,b7 may be based on the volume of eligible mortgages that the member participant sells to the ,,fmic ,mutual ,securitization ,company4 7i7 ,coordination of servicer approval ,the ,mutual ,board may coordinate with the ,corporation to facilitate the application process for its member participants to become approved servicers of the ,corporation pursuant to section #bab4 #baf4 ,additional authority relating to oversight of market participants ,in carrying out its authorities under this subtitle1 the ,corporation may1 in its discretion1 develop1 publish1 and adopt such other additional standards or requirements as the ,corporation determines necessary to ensure-- 7#a7 competition among approved private mortgage insurers1 servicers1 issuers1 and bond guarantors and other market participants in the secondary mortgage market2 7#b7 competitive pricing among approved private mortgage insurers1 servicers1 issuers1 and bond guarantors and other market participants in the secondary mortgage market2 and 7#c7 liquidity1 transparency1 and access to mortgage credit in the secondary mortgage market4 #bag4 ,civil money penalties 7a7 ,authority ,in addition to any suspension or revocation of the approved status of an approved private mortgage insurer1 servicer1 issuer1 or bond guarantor under this subtitle1 the ,corporation may1 in its discretion1 impose a civil money penalty on any such approved private mortgage insurer1 servicer1 issuer1 or bond guarantor that has failed to comply with or otherwise violates-- 7#a7 any standard adopted by the ,corporation pursuant to this subtitle2 or 7#b7 any other requirement or provision of this ,act1 or any order1 condition1 rule1 or regulation issued pursuant to this ,act1 applicable to such private mortgage insurer1 servicer1 issuer1 or bond guarantor1 as the case may be4 7b7 ,procedures 7#a7 ,establishment ,the ,corporation shall establish standards and procedures governing the imposition of civil money penalties under this section4 ,such standards and procedures-- 7,a7 shall provide for the ,corporation to notify the approved private mortgage insurer1 servicer1 issuer1 or bond guarantor1 as the case may be1 in writing of the determination of the ,corporation to impose the penalty1 which shall be made on the record2 7,b7 shall provide for the imposition of a penalty only after the approved private mortgage insurer1 servicer1 issuer1 or bond guarantor1 as the case may be1 has been given an opportunity for a hearing on the record2 and 7,c7 may provide for review by the ,corporation of any determination or order1 or interlocutory ruling1 arising from a hearing4 7#b7 ,factors determining amount of penalty ,in determining the amount of a penalty under this section1 the ,corporation shall give consideration to factors including-- 7,a7 the gravity of the offense2 7,b7 any history of prior offenses2 7,c7 ability to pay the penalty2 7,d7 injury to the public2 7,e7 benefits received2 7,f7 deterrence of future violations2 and 7,g7 such other factors as the ,corporation may determine1 by regulation1 to be appropriate4 7c7 ,action ,to collect penalty ,if the approved private mortgage insurer1 servicer1 issuer1 or bond guarantor1 as the case may be1 fails to comply with an order by the ,corporation imposing a civil money penalty under this section1 the ,corporation may bring an action in the ,united ,states ,district ,court for the ,district of ,columbia to obtain a monetary judgment against the approved private mortgage insurer1 servicer1 issuer1 or bond guarantor1 as the case may be1 and such other relief as may be available4 ,the monetary judgment may1 in the court's discretion1 include the attorneys' fees and other expenses incurred by the ,united ,states in connection with the action4 ,in an action under this subsection1 the validity and appropriateness of the order imposing the penalty shall not be subject to review4 7d7 ,settlements ,the ,corporation may compromise1 modify1 or remit any civil money penalty which may be1 or has been1 imposed under this section4 7e7 ,deposit of ,penalties ,the ,corporation shall use any civil money penalties collected under this section to help fund the ,mortgage ,insurance ,fund established under section #bjc4 #bah4 ,protection of privilege and other matters relating to disclosures by market participants 7a7 ,information sharing and maintenance of privilege ,the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is amended-- 7#a7 in section #aa7t77#b77;,a7 7#ab ,u4,s4,c4 #ahba7t77#b77;,a771 by inserting after clause 7v7 the following3 7vii7 ,the ,federal ,mortgage ,insurance ,corporation4 2 and 7#b7 in section #ah7x7 7#ab ,u4,s4,c4 #ahbh7x77-- 7,a7 by inserting the ,federal ,mortgage ,insurance ,corporation1 before any ,federal banking agency each place that term appears2 and 7,b7 by striking such agency each place that term appears and inserting ,corporation1 agency4 7b7 ,permissible consultation with ,federal banking agencies 7#a7 ,in general ,pursuant to its authority under section #ajc7;c71 to facilitate the consultive process1 the ,corporation may share information with the ,federal banking agencies1 or any individual ,federal banking agency1 or any ,state bank supervisor1 or foreign banking authority1 on a one-time1 regular1 or periodic basis as determined by the ,corporation regarding the capital1 asset and liabilities1 financial condition1 risk management practices or any other practice of any approved private mortgage insurer1 servicer1 issuer1 or bond guarantor4 7#b7 ,privilege preserved ,information shared by the ,corporation pursuant to paragraph 7#a7 shall not be construed as waiving1 destroying1 or otherwise affecting any privilege or confidential status that any approved private mortgage insurer1 servicer1 issuer1 or bond guarantor or any other person may claim with respect to such information under ,federal or ,state law as to any person or entity other than such agencies1 agency1 supervisor1 or authority4 7#c7 ,rule of construction ,no provision of this subsection may be construed as implying or establishing that-- 7,a7 any person waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply2 or 7,b7 any person would waive any privilege applicable to any information by submitting the information directly to the ,federal banking agencies1 or any individual ,federal banking agency1 or any ,state bank supervisor1 or foreign banking authority1 but for this subsection4 ,c ,transparency in market operations #bba4 ,review of loan documents2 disclosures 7a7 ,in general ,the ,corporation shall1 by rule-- 7#a7 require that approved issuers-- 7,a7 grant access to private market investors seeking to take the first loss position in a covered security to all-- 7i7 documents relating to eligible mortgage loans collateralizing that covered security2 and 7ii7 servicing reports of the approved servicer relating to such mortgages2 and 7,b7 disclose any other material information that a reasonable investor would want to know1 and make no material omission of such information1 relating to eligible mortgage loans collateralizing a covered security2 and 7#b7 establish the timing1 frequency1 and manner in which such access and disclosures are made4 7b7 ,privacy protections ,in prescribing the rules required under this section1 the ,corporation shall take into consideration issues of consumer privacy and all statutes1 rules1 and regulations related to privacy of consumer credit information and personally identifiable information4 ,such rules shall expressly prohibit the identification of specific borrowers4 #bbb4 ,investor immunity ,any private market investor that has taken the first loss position in a covered security or that has otherwise invested in any covered security insured under this ,act shall have immunity and protection from civil liability under ,federal and ,state law1 and no cause of action may be brought under ,federal or ,state law against such investor1 with respect to whether or not eligible mortgages that collateralize a covered security insured under this ,act have complied with the requirements of this ,act1 including1 but not limited to1 with respect to any underwriting requirements applicable to such mortgage1 any representations or warranties made by an approved issuer or an approved bond guarantor with respect to such mortgages1 or whether or not the terms of any uniform securitization agreement have been met4 #bbc4 ,uniform securitization agreements 7a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standard uniform securitization agreements for covered securities which are insured under this ,act4 7b7 ,required content ,the standard uniform securitization agreements required to be developed under subsection 7a7 shall include terms relating to-- 7#a7 pooling and servicing1 including the development of uniform standards and practices-- 7,a7 regarding remittance schedules and payment delays2 and 7,b7 permitting the transfer of servicing rights1 if such transfer is determined to be in the best financial interest of the investor1 as such interest is calculated on a net present value basis2 7#b7 representations and warranties1 including representations and warranties as to compliance or conformity with the requirements of this ,act2 7#c7 indemnification and remedies1 including for the restitution or indemnification of the ,corporation with respect to early term delinquencies of eligible mortgages collateralizing a covered security2 7#d7 the qualification1 responsibilities1 and duties of trustees2 and 7#e7 any other terms or standards the ,corporation determines necessary or appropriate4 7c7 ,defining representation and warranty violations ,in developing the uniform securitization agreements required under subsection 7a71 the ,corporation shall also develop1 adopt1 and publish clear and uniform standards that define and illustrate what actions1 or omissions to act1 comprise a violation of the representations and warranties clauses that are made a part of such agreements4 7d7 ,consultation ,the ,corporation shall work with industry groups1 including servicers1 originators1 issuers1 and mortgage investors to develop the uniform securitization agreements required under subsection 7a74 #bbd4 ,uniform mortgage database 7a7 ,uniform ,mortgage ,database ,the ,corporation shall establish1 operate1 and maintain a database for the collection1 public use1 and dissemination of uniform loan level information on eligible mortgages relating to-- 7#a7 loan characteristics2 7#b7 borrower information2 7#c7 the property securing the eligible mortgages2 7#d7 loan data required at the time of application for insurance from the ,corporation under this title2 7#e7 the quality and consistency of appraisal and collateral data on eligible mortgages2 7#f7 industry-wide servicing data standards2 and 7#g7 such other data1 datasets1 information1 facts1 or measurements as the ,corporation determines appropriate to improve and enhance loan quality and operational efficiencies within the secondary mortgage market4 7b7 ,considerations ,in establishing the database required under subsection 7a71 the ,corporation shall take into consideration1 build upon1 and adopt to the extent the ,corporation determines appropriate1 the existing data standards set forth under the ,uniform ,mortgage ,data ,program initiative established by the ,federal ,housing ,finance ,agency4 7c7 ,regulations ,the ,corporation shall1 by regulation-- 7#a7 establish the manner and form by which any loan level information collected under subsection 7a7 may be accessed by the public1 including whether or not to establish a fee for such access2 7#b7 require that such loan level information be made available to the public in a uniform manner1 in a form designed for ease and speed of access1 ease and speed of downloading1 and ease and speed of use2 and 7#c7 ensure the protection of any personally identifiable information contained in any information1 or mix of information1 collected and made available for public access4 7d7 ,monthly update ,the database required under subsection 7a7 shall be updated not less frequently than once a month4 #bbe4 ,electronic registration of eligible mortgages 7a7 ,establishment of electronic registration system ,the ,corporation shall establish1 operate1 and maintain an electronic registry system for eligible mortgages that collateralize a covered security insured under this ,act in order to automate1 centralize1 standardize1 and improve the process of tracking changes in servicing rights and beneficial ownership interests in such eligible mortgages4 7b7 ,considerations ,in establishing the electronic registry system required under subsection 7a71 the ,corporation shall take into consideration1 build upon1 and adopt to the extent the ,corporation determines appropriate1 any existing efforts of the ,federal ,housing ,finance ,agency or expertise among the private sector to develop a sound1 efficient system for document custody and electronic registration of mortgages1 notes1 titles1 and liens4 ,d ,,fmic ,structure #bca4 ,office of ,underwriting 7a7 ,establishment ,there is established within the ,federal ,mortgage ,insurance ,corporation an ,office of ,underwriting which shall be headed by the ,deputy ,director of ,underwriting1 who shall be appointed by the ,board of ,directors4 7b7 ,responsibilities ,the ,office of ,underwriting shall ensure1 through oversight1 analysis1 and examination1 that eligible mortgages that collateralize a covered security insured under this ,act comply with the requirements of this ,act1 including with respect to-- 7#a7 the submission of complete and accurate loan data on eligible mortgages2 7#b7 the identification of ineligible mortgage loans2 7#c7 assisting lenders with originating high-quality1 lower-risk eligible mortgages2 and 7#d7 any other activity that the ,director determines appropriate4 #bcb4 ,office of ,securitization 7a7 ,establishment ,there is established within the ,federal ,mortgage ,insurance ,corporation an ,office of ,securitization which shall be headed by the ,deputy ,director of ,securitization1 who shall be appointed by the ,board of ,directors4 7b7 ,responsibilities 7#a7 ,in general ,the ,office of ,securitization shall-- 7,a7 oversee and supervise the common securitization platform developed by the business entity announced by the ,federal ,housing ,finance ,agency and established by the enterprises1 including by requiring that the platform have system capabilities to permit the issuance of multi-lender covered securities2 7,b7 ensure that credit unions1 community and mid-size banks1 and small non-depository lenders have equitable access to any such platform1 including through the development and facilitation of options for multi-lender pools of eligible mortgages to be securitized and issued as covered securities through such platform2 and 7,c7 coordinate and consult with the ,federal ,home ,loan ,bank ,system to establish a securitization platform that addresses the needs of its members4 7#b7 ,rules for use of common securitization platform 7,a7 ,in general ,the ,corporation1 acting through the ,office of ,securitization1 may promulgate rules-- 7i7 regarding the use of the common securitization platform described under paragraph 7#a77;,a72 and 7ii7 to permit securities other than covered securities to be issued through such platform for reasonable compensation4 7,b7 ,content of rules ,any rule that may be promulgated under subparagraph 7,a7 may include a requirement that any security to be issued through the common securitization platform be subject to a uniform securitization agreement developed under section #bbc4 7c7 ,establishment of database ,to provide notice to different classes of lien holders ,the ,office of ,securitization shall establish1 operate1 and maintain a database that-- 7#a7 can be accessed by any holder of a lien on an eligible mortgage2 7#b7 identifies and tracks if a junior lien or any other subordinate lien has been issued on the property securing an eligible mortgage2 7#c7 notifies1 to the extent feasible1 any senior or first lien holder of the existence of such junior or subordinate lien2 and 7#d7 informs-- 7,a7 the senior or first lien holder of the monthly performance of the junior or subordinate lien2 and 7,b7 the junior or subordinate lien holder of the monthly performance of the senior or first lien4 #bcc4 ,office of ,federal ,home ,loan ,bank ,supervision 7a7 ,establishment ,there is established within the ,federal ,mortgage ,insurance ,corporation an ,office of ,federal ,home ,loan ,bank ,supervision which shall be headed by the ,deputy ,director of ,federal ,home ,loan ,bank ,supervision1 who shall be appointed by the ,board of ,directors4 7b7 ,responsibilities ,the ,office of ,federal ,home ,loan ,bank ,supervision shall-- 7#a7 oversee1 coordinate1 and supervise the ,federal ,home ,loan ,banks and the ,federal ,home ,loan ,bank ,system1 including the transition of all activities transferred to the ,corporation pursuant to section #cja2 and 7#b7 supervise any authorized subsidiary of one or more ,federal ,home ,loan ,banks that is approved as an approved issuer pursuant to section #bac7;b77#b77;,a77ii71 including with respect to the initial capitalization of any such subsidiary4 ,,iii ,transfer of powers1 personnel1 and property to ,,fmic from ,,fhfa #cja4 ,powers and duties transferred 7a7 ,federal ,home ,loan ,bank functions transferred 7#a7 ,transfer of functions ,there are transferred to the ,corporation all functions of the ,federal ,housing ,finance ,agency and the ,director of the ,federal ,housing ,finance ,agency relating to-- 7,a7 the supervision of the ,federal ,home ,loan ,banks and the ,federal ,home ,loan ,bank ,system2 and 7,b7 all rulemaking authority of the ,federal ,housing ,finance ,agency and the ,director of the ,federal ,housing ,finance ,agency relating to the ,federal ,home ,loan ,banks and the ,federal ,home ,loan ,bank ,system4 7#b7 ,powers1 authorities1 rights1 and duties ,the ,corporation shall succeed to all powers1 authorities1 rights1 and duties that were vested in the ,federal ,housing ,finance ,agency and the ,director of the ,federal ,housing ,finance ,agency1 including all conservatorship or receivership authorities1 on the day before the transfer date in connection with the functions and authorities transferred under paragraph 7#a74 7#c7 ,effective date ,the transfer of functions under this paragraph shall take effect on the transfer date4 7b7 ,continuation and coordination of certain actions 7#a7 ,in general ,all regulations1 orders1 determinations1 and resolutions described under paragraph 7#b7 shall remain in effect according to the terms of such regulations1 orders1 determinations1 and resolutions1 and shall be enforceable by or against the ,corporation until modified1 terminated1 set aside1 or superseded in accordance with applicable law by the ,corporation1 any court of competent jurisdiction1 or operation of law4 7#b7 ,applicability ,a regulation1 order1 determination1 or resolution is described under this subsection if it-- 7,a7 was issued1 made1 prescribed1 or allowed to become effective by-- 7i7 the ,federal ,housing ,finance ,agency2 or 7ii7 a court of competent jurisdiction1 and relates to functions transferred by this ,act2 7,b7 relates to the performance of functions that are transferred by this section2 and 7,c7 is in effect on the transfer date4 7c7 ,disposition of affairs ,during the period preceding the transfer date1 the ,director of the ,federal ,housing ,finance ,agency1 for the purpose of winding up the affairs of the ,federal ,housing ,finance ,agency in connection with the performance of functions that are transferred by this section-- 7#a7 shall manage the employees of such ,agency and provide for the payment of the compensation and benefits of any such employees which accrue before the transfer date2 and 7#b7 may take any other action necessary for the purpose of winding up the affairs of the ,office4 7d7 ,use of property and services 7#a7 ,property ,the ,corporation may use the property and services of the ,federal ,housing ,finance ,agency to perform functions which have been transferred to the ,corporation until such time as the ,agency is abolished under section #cjc to facilitate the orderly transfer of functions transferred under this section1 any other provision of this ,act1 or any amendment made by this ,act to any other provision of law4 7#b7 ,agency services ,any agency1 department1 or other instrumentality of the ,united ,states1 and any successor to any such agency1 department1 or instrumentality1 that was providing supporting services to the ,agency before the transfer date in connection with functions that are transferred to the ,corporation shall-- 7,a7 continue to provide such services1 on a reimbursable basis1 until the transfer of such functions is complete2 and 7,b7 consult with any such agency to coordinate and facilitate a prompt and reasonable transition4 7e7 ,continuation of services ,the ,corporation may use the services of employees and other personnel of the ,federal ,housing ,finance ,agency1 on a reimbursable basis1 to perform functions which have been transferred to the ,corporation for such time as is reasonable to facilitate the orderly transfer of functions pursuant to this section1 any other provision of this ,act1 or any amendment made by this ,act to any other provision of law4 7f7 ,savings provisions 7#a7 ,existing rights1 duties1 and obligations not affected ,subsection 7a7 and section #cjc shall not affect the validity of any right1 duty1 or obligation of the ,united ,states1 the ,director of the ,federal ,housing ,finance ,agency1 the ,federal ,housing ,finance ,agency1 or any other person1 that existed on the day before transfer date4 7#b7 ,continuation of suits ,no action or other proceeding commenced by or against the ,director of the ,federal ,housing ,finance ,agency in connection with the functions that are transferred to the ,corporation under this section shall abate by reason of the enactment of this ,act1 except that the ,corporation shall be substituted for the ,director of the ,federal ,housing ,finance ,agency as a party to any such action or proceeding4 7g7 ,conforming amendments 7#a7 ,federal ,home ,loan ,bank ,act ,the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adba et seq47 is amended-- 7,a7 by striking the ,director and inserting the ,corporation each place that term appears2 7,b7 by striking ,the ,director and inserting ,the ,corporation each place that term appears2 7,c7 by striking ,chairman of the ,director of ,governors and inserting ,chairman of the ,board of ,governors each place that term appears2 7,d7 by striking the ,agency and inserting the ,corporation each place that term appears2 7,e7 in section #b1 by striking paragraphs 7#aa7 and 7#ab7 and inserting the following3 7#aa7 ,corporation ,the term ,corporation means the ,federal ,mortgage ,insurance ,corporation established under title ,i of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac4 2 and 7,f7 in section #aa7l77#e71 in the header to such paragraph1 by striking of the director4 7#b7 ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act ,section #acaf of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deaf7 is amended-- 7,a7 in subsection 7a7-- 7i7 in the matter preceding paragraph 7#a71 by striking the regulated entities and inserting each enterprise2 and 7ii7 in paragraph 7#a71 by striking and under section #bj of the ,federal ,home ,loan ,bank ,act2 7,b7 in subsection 7b71 by striking paragraph 7#b72 7,c7 in subsection 7c7-- 7i7 by striking any regulated entity and inserting any enterprise2 7ii7 by striking the regulated entity and inserting the enterprise2 7iii7 by striking a regulated entity and inserting an enterprise each place that term appears2 7iv7 by striking such regulated entity and inserting such enterprise each place that term appears2 and 7v7 by striking such entity and inserting such enterprise2 and 7,d7 in subsection 7e7-- 7i7 by striking each regulated entity and inserting each enterprise2 and 7ii7 by striking such regulated entity and inserting such enterprise4 7#c7 ,right to ,financial ,privacy ,act of #aigh ,section #aaac7o7 of the ,right to ,financial ,privacy ,act of #aigh 7#ab ,u4,s4,c4 #cdac7o77 is amended-- 7,a7 in the heading to the subsection1 by ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 7,b7 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,c7 by striking ,federal ,housing ,finance ,agency's and inserting ,federal ,mortgage ,insurance ,corporation's4 7#d7 ,effective date ,the amendments made by this subsection shall take effect on the transfer date4 #cjb4 ,transfer and rights of employees of the ,,fhfa 7a7 ,transfer ,each employee of the ,federal ,housing ,finance ,agency that is employed in connection with functions that are transferred to the ,corporation under section #cja shall be transferred to the ,corporation for employment1 not later than the transfer date1 and such transfer shall be deemed a transfer of function for purposes of section #cejc of title #e1 ,united ,states ,code4 7b7 ,status of employees ,the transfer of functions under this title1 and the abolishment of the ,federal ,housing ,finance ,agency under section #cjc1 may not be construed to affect the status of any transferred employee as an employee of an agency of the ,united ,states for purposes of any other provision of law4 7c7 ,guaranteed positions ,each employee transferred under subsection 7a7 shall be guaranteed a position with the same status1 tenure1 grade1 and pay as that held on the day immediately preceding the transfer4 7d7 ,appointment authority for excepted employees 7#a7 ,in general ,in the case of an employee occupying a position in the excepted service1 any appointment authority established under law or by regulations of the ,office of ,personnel ,management for filling such position shall be transferred1 subject to paragraph 7#b74 7#b7 ,decline of transfer ,the ,corporation may decline a transfer of authority under paragraph 7#a71 to the extent that such authority relates to a position excepted from the competitive service because of its confidential1 policymaking1 policy-determining1 or policy-advocating character4 7e7 ,reorganization ,if the ,corporation determines1 after the end of the #a-year period beginning on the transfer date1 that a reorganization of the combined workforce is required1 that reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section #hccf7;d77#b7 or #hdad7;b77#a77;,b7 of title #e1 ,united ,states ,code4 7f7 ,employee benefit programs 7#a7 ,in general ,any employee of the ,federal ,housing ,finance ,agency accepting employment with the ,corporation as a result of a transfer under subsection 7a7 may retain1 for #ab months after the date on which such transfer occurs1 membership in any employee benefit program of the ,agency or the ,corporation1 as applicable1 including insurance1 to which such employee belongs on the transfer date if-- 7,a7 the employee does not elect to give up the benefit or membership in the program2 and 7,b7 the benefit or program is continued by the ,corporation4 7#b7 ,cost differential 7,a7 ,in general ,the difference in the costs between the benefits which would have been provided by the ,federal ,housing ,finance ,agency and those provided by this section shall be paid by the ,corporation4 7,b7 ,health ,insurance ,if any employee elects to give up membership in a health insurance program or the health insurance program is not continued by the ,corporation1 the employee shall be permitted to select an alternate ,federal health insurance program not later than #cj days after the date of such election or notice1 without regard to any other regularly scheduled open season4 #cjc4 ,abolishment of ,,fhfa ,effective upon the ,,fmic certification date1 the ,federal ,housing ,finance ,agency and the position of the ,director of the ,federal ,housing ,finance ,agency are abolished4 #cjd4 ,transfer of property and facilities ,effective upon the ,,fmic certification date all property of the ,federal ,housing ,finance ,agency shall transfer to the ,corporation4 #cje4 ,technical and conforming amendments 7a7 ,effective date ,the amendments made by this section shall take effect on the date of enactment of this ,act4 7b7 ,references in ,federal law ,on and after the date of enactment of this ,act1 any reference in ,federal law to the ,director of the ,federal ,housing ,finance ,agency or the ,federal ,housing ,finance ,agency1 in connection with any function of the ,director of the ,federal ,housing ,finance ,agency or the ,federal ,housing ,finance ,agency transferred under section #cja1 shall be deemed a reference to the ,chairperson of the ,federal ,mortgage ,insurance ,corporation or the ,federal ,mortgage ,insurance ,corporation1 as appropriate and consistent with the amendments made by this ,act4 7c7 ,title #ah1 ,united ,states ,code ,title #ah1 ,united ,states ,code1 is amended-- 7#a7 in section #aije1 by inserting or the ,federal ,mortgage ,insurance ,corporation after ,federal ,housing ,finance ,agency2 7#b7 in section #bab7;c77#b7-- 7,a7 in subparagraph 7,f71 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,g71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,h7 the ,federal ,mortgage ,insurance ,corporation4 2 7#c7 in section #feg1 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency12 7#d7 in section #ajjf1 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency12 and 7#e7 in section #ajad1 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7d7 ,flood ,disaster ,protection ,act of #aigc ,section #ajb7;b77#e7 of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7b77#e77 is amended in subsection 7b77#e71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7e7 ,title #e1 ,united ,states ,code ,title #e1 ,united ,states ,code1 is amended-- 7#a7 in section #ecac1 by inserting the following new item after the item relating to the ,director of the ,federal ,housing ,finance ,agency3 ,director of the ,federal ,mortgage ,insurance ,corporation4 2 and 7#b7 in section #cacb7;a77#a77;,d71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7f7 ,sarbanes-,oxley ,act ,section #aje7;b77#e77;,b77ii77,,ii7 of the ,sarbanes-,oxley ,act of #bjjb 7#ae ,u4,s4,c4 #gbae7;b77#e77;,b77ii77,,ii77 is amended by inserting or the ,chairperson of the ,federal ,mortgage ,insurance ,corporation after ,director of the ,federal ,housing ,finance ,agency4 7g7 ,federal ,deposit ,insurance ,act ,the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is amended-- 7#a7 in section #g7;a77#b77;,a71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency1 each place that term appears2 7#b7 in section #h7;e77#g77;,a77vi71 by inserting 1 the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency2 7#c7 in section #aa7t77#b77;,a71 by adding at the end the following3 7viii7 ,the ,federal ,mortgage ,insurance ,corporation4 2 and 7#d7 in section #cc7;e71 by inserting 1 the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency4 7h7 ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid ,section #aag7;e7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgaf7;e77 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7i7 ,,mahra ,act of #aiig ,section #eag7;b77#d7 of the ,multifamily ,assisted ,housing ,reform and ,affordability ,act of #aiig 7#db ,u4,s4,c4 #adcg;f note7 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7j7 ,title #dd1 ,united ,states ,code ,section #cejb7e7 of title #dd1 ,united ,states ,code1 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7k7 ,access to local ,,tv ,act of #bjjj ,section #ajjd7;d77#b77;,d77iii7 of the ,launching ,our ,communities' ,access to ,local ,television ,act of #bjjj 7#dg ,u4,s4,c4 #aajc7;d77#b77;,d77iii77 is amended by inserting or the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency4 7l7 ,,firrea ,the ,financial ,institutions ,reform1 ,recovery1 and ,enhancement ,act of #aihi is amended-- 7#a7 in section #abaf-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#b71 by striking 2 and and inserting a semicolon2 7ii7 in paragraph 7#c71 by striking the period and inserting 2 and2 and 7iii7 by adding at the end the following3 7#d7 the ,federal ,mortgage ,insurance ,corporation4 2 and 7,b7 in subsection 7c71 by inserting the ,federal ,mortgage ,insurance ,corporation1 before and the ,federal ,housing ,finance ,agency12 7#b7 in section #djb7;e71 by striking ,federal ,housing ,finance ,agency each place that term appears and inserting ,federal ,mortgage ,insurance ,corporation2 7#c7 in section #aabd1 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency1 each place that term appears2 and 7#d7 in section #aabe7;b71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7m7 ,,eesa ,the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebja note7 is amended-- 7#a7 in section #ajd7;b7-- 7,a7 in paragraph 7#d71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#e71 by striking the period and inserting 2 and2 and 7,c7 by adding at the end the following3 7#f7 the ,federal ,mortgage ,insurance ,corporation4 2 and 7#b7 in section #aji7;b71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7n7 ,dodd-,frank ,act ,the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7,public ,law #aaa-bjc7 is amended-- 7#a7 in section #cdb7;g77#a7-- 7,a7 in subparagraph 7,h71 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,i71 by striking the period and inserting 2 and2 and 7,c7 by adding at the end the following3 7,j7 the ,federal ,mortgage ,insurance ,corporation4 2 7#b7 in section #ihi;,e7a77#a71 by adding at the end the following3 7,j7 ,the ,federal ,mortgage ,insurance ,corporation4 2 and 7#c7 in section #adha7;b71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7o7 ,housing and ,urban-,rural ,recovery ,act ,section #dfi of the ,housing and ,urban-,rural ,recovery ,act of #aihc 7#ab ,u4,s4,c4 #agjap-#a7 is amended1 in the first sentence1 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7p7 ,neighborhood ,reinvestment ,corporation ,act ,section #fjf7;c77#c7 of the ,neighborhood ,reinvestment ,corporation ,act 7#db ,u4,s4,c4 #haje7;c77#c77 is amended by inserting 1 the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency4 7q7 ,federal ,insurance ,office ,act ,section #cac7r77#d7 of title #ca1 ,united ,states ,code1 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7r7 ,commodity ,exchange ,act ,section #a;a7#ci77;,e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#ci77;,e77 is amended-- 7#a7 by striking a regulated entity and inserting an enterprise2 and 7#b7 by inserting before the period at the end the ,federal ,mortgage ,insurance ,corporation in the case of a swap dealer1 major swap participant1 security-based swap dealer1 or major security-based swap participant that is a ,federal ,home ,loan ,bank4 7s7 ,truth in ,lending ,act ,the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afja et seq47 is amended-- 7#a7 section #abi;,h7b77#d71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency12 and 7#b7 in section #abi;,e-- 7,a7 in subsection 7g77#a71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency12 and 7,b7 in subsection 7h71 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7t7 ,,ffiec ,the first sentence of section #ajaa of the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccaj7 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 before and the ,federal ,housing ,finance ,agency4 ,,iv ,improving transparency1 accountability1 and efficacy within affordable housing #dja4 ,affordable housing allocations 7a7 ,fee and allocation of amounts ,subject to subsection 7b71 and in addition to any fees for the provision of insurance established in accordance with title ,,ii1 in each fiscal year the ,corporation shall-- 7#a7 charge and collect a fee in an amount equal to not less than #e basis points and not more than #aj basis points for each dollar of the outstanding principal balance of eligible mortgages collateralizing covered securities for which insurance is being provided under title ,,ii2 and 7#b7 allocate or otherwise transfer-- 7,a7 #hj percent of such fee amounts to the ,secretary of ,housing and ,urban ,development to fund the ,housing ,trust ,fund established under section #acch of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defh72 and 7,b7 #bj percent of such fee amounts to the ,secretary of the ,treasury to fund 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 #defi74 7b7 ,suspension of contributions ,the ,corporation may temporarily suspend allocations under subsection 7a7 upon a finding by the ,corporation that such allocations are contributing1 or would contribute1 to the financial instability of the ,mortgage ,insurance ,fund established under section #bjc4 #djb4 ,housing ,trust ,fund ,section #acch of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defh7 is amended-- 7#a7 in subsection 7a71 by striking by the enterprises under section #accg and inserting pursuant to section #dja of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac2 7#b7 by repealing subsection 7b72 and 7#c7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by striking ,except as provided in subsection 7b71 the and inserting ,the2 7,b7 in paragraph 7#d77;,b71 by striking other than fiscal year #bjji2 7,c7 in paragraph 7#g7-- 7i7 in subparagraph 7,a71 by striking 2 and and inserting a semicolon2 7ii7 in subparagraph 7,b77iv7-- 7,i7 by striking section #acb and inserting section #aacb2 and 7,,ii7 by striking the period at the end and inserting a semicolon2 and 7iii7 by adding at the end the following3 7,c7 grants and loans1 including through the use of pilot programs of sufficient scale1 to support the research and development of sustainable homeownership and affordable rental programs1 provided that such grant or loan amounts are used only for the benefit of families whose income does not exceed #abj percent of the area median income as determined by the ,secretary1 with adjustments for family size2 and 7,d7 provide limited credit enhancement1 and other forms of credit support1 for product and services that-- 7i7 will increase the rate of sustainable homeownership and affordable rental by individuals or families whose income does not exceed #abj percent of the area median income as determined by the ,secretary1 with adjustments for family size2 and 7ii7 might not otherwise be offered or supported by a pilot program of sufficient scale to determine the viability of such products and services in the private market4 2 and 7,d7 in paragraph 7#aj7-- 7i7 by amending subparagraph 7,a7 to read as follows3 7,a7 ,ensuring efficient use of grant amounts 7i7 ,use for certain eligible activities ,in each fiscal year1 of the aggregate amount allocated to a ,state or ,state designated entity under this subsection-- 7,i7 #ce percent shall be used for activities under subparagraph 7,a7 of paragraph 7#g72 7,,ii7 #e percent shall be used for activities under subparagraph 7,b7 of paragraph 7#g72 and 7,,iii7 #fj percent shall be used for activities under subparagraphs 7,c7 and 7,d7 of paragraph 7#g74 7ii7 ,ensuring benefits for rural communities 7,i7 ,in general ,in each fiscal year1 of the aggregate amount allocated to a ,state or ,state designated entity under this subsection1 the ,state or ,state designated entity shall ensure that1 at a minimum1 such amounts are distributed for the benefit of nonentitlement areas in that ,state in the same proportion that the total amount of nonentitlement areas in that ,state bears to the total amount of all areas in that ,state4 7,,ii7 ,targeted outreach to smaller communities ,in carrying out the requirement under subclause 7,i71 each ,state or ,state designated entity shall in distributing amounts allocated to that ,state or ,state designated entity give priority to nonentitlement areas with a population of less than #bj1jjj4 7,,iii7 ,definition of nonentitlement area ,for purposes of this clause1 the term nonentitlement area has the same meaning given that term under section #ajb7;a77#g7 of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #ecjb7;a77#g774 2 and 7ii7 by striking subparagraph 7,e74 #djc4 ,capital ,magnet ,fund ,section #acci of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defi7 is amended-- 7#a7 in subsection 7b77#a71 by striking pursuant to section #accg and inserting pursuant to section #dja of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac2 and 7#b7 in subsection 7h71 by striking paragraph 7#g74 #djd4 ,additional taxpayer protections 7a7 ,ensuring benefits support citizens and lawful permanent residents ,the ,secretary of ,housing and ,urban ,development and the ,secretary of the ,treasury1 respectively1 shall ensure that grant amounts allocated to covered grantees1 allocated by covered grantees to eligible recipients1 or allocated to individuals by such eligible recipients are used for the benefit of only lawful permanent residents and citizens of the ,united ,states in carrying out the activities of-- 7#a7 the ,housing ,trust ,fund2 and 7#b7 the ,capital ,magnet ,fund4 7b7 ,not ,to be used for political activities ,consistent with the existing requirements under sections #acch7;c77#aj77;,d7 and section #acci7;h77#e7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib1 the ,secretary of ,housing and ,urban ,development and the ,secretary of the ,treasury1 respectively1 shall ensure that grant amounts allocated by covered grantees to eligible recipients or allocated to individuals by such eligible recipients are not used for-- 7#a7 political activities2 7#b7 advocacy2 7#c7 lobbying1 whether directly or through other parties2 7#d7 influencing the selection1 nomination1 election1 or appointment of one or more candidates to any ,federal1 ,state or local office2 7#e7 personal counseling services2 7#f7 travel expenses2 and 7#g7 preparing or providing advice on tax returns4 7c7 ,penalties 7#a7 ,civil money penalty ,if an eligible recipient or any other individual in receipt of grant amounts described by this section violates any provision of subsection 7a7 or 7b71 the ,secretary of ,housing and ,urban ,development or the ,secretary of the ,treasury1 as the case may be1 may impose a civil penalty on such recipient or individual1 as the case may be1 of not more than #a1jjj1jjj for each violation4 7#b7 ,criminal penalties ,whoever1 being subject to the provisions of subsection 7a7 or 7b71 knowingly participates1 directly or indirectly1 in any manner in conduct that results in a violation of such provisions shall1 notwithstanding section #cega of title #ah1 ,united ,states ,code1 be fined not more than #a1jjj1jjj for each violation1 imprisoned for not more than #e years1 or both4 7#c7 ,rule of construction ,the penalties imposed under paragraphs 7#a7 or 7#b7 shall be in addition to any other available civil remedy or any other available criminal penalty and may be imposed whether or not the ,secretary of ,housing and ,urban ,development or the ,secretary of the ,treasury1 as the case may be1 imposes other administrative sanctions4 7d7 ,definition ,as used in this section-- 7#a7 the term covered grantee means-- 7,a7 for purposes of the ,housing ,trust ,fund1 a ,state or ,state designated entity2 and 7,b7 for purposes of the ,capital ,magnet ,fund1 an eligible grantee as described under section #acci7;e7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib2 7#b7 the term eligible recipient means-- 7,a7 for purposes of the ,housing ,trust ,fund1 a recipient as described under section #acch7;c77#i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiibt2 and 7,b7 for purposes of the ,capital ,magnet ,fund1 a recipient of assistance from the ,capital ,magnet ,fund2 7#c7 the term ,capital ,magnet ,fund means 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 #defi72 and 7#d7 the term ,housing ,trust ,fund means the ,housing ,trust ,fund established under section #acch of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defh74 ,v ,wind ,down of ,fannie ,mae and ,freddie ,mac #eja4 ,repeal of ,,gse charters 7a7 ,fannie ,mae ,effective on the ,,fmic certification date1 the charter of the ,federal ,national ,mortgage ,association 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-- 7,a7 bonds1 debentures1 notes1 or other similar instruments2 7,b7 capital lease obligations2 or 7,c7 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 7b7 ,freddie ,mac ,effective on the ,,fmic certification date1 the charter of the ,federal ,home ,loan ,mortgage ,corporation 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-- 7,a7 bonds1 debentures1 notes1 or other similar instruments2 7,b7 capital lease obligations2 or 7,c7 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 7c7 ,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 subsections 7a7 and 7b74 7#b7 ,continued dividend payments ,notwithstanding section #ejb or any other provision of law1 and subject to section #fja1 provision #b7;a7 7relating to ,dividend ,payment ,dates and ,dividend ,periods7 and provision #b7;c7 7relating to ,dividend ,rates and ,dividend ,amount7 of the ,senior ,preferred ,stock ,purchase ,agreement1 or any provision of any certificate in connection with such ,agreement creating or designating the terms1 powers1 preferences1 privileges1 limitations1 or any other conditions of the ,variable ,liquidation ,preference ,senior ,preferred ,stock of an enterprise issued pursuant to such ,agreement-- 7,a7 shall not be amended1 restated1 or otherwise changed to reduce the rate or amount of dividends in effect pursuant to such ,agreement as of the ,third ,amendment to such ,agreement dated ,august #ag1 #bjab1 except that any amendment to such ,agreement to facilitate the sale of assets of the enterprises to facilitate compliance with the provisions of section #ejb7;b7 shall be permitted2 and 7,b7 shall remain in effect until the guarantee obligations described under subsections 7a77#b7 and 7b77#b7 are fully extinguished4 7#c7 ,applicability ,notwithstanding section #ejb1 all guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the ,,fmic certification date shall be subject to the terms of the ,senior ,preferred ,stock ,purchase ,agreement4 7d7 ,federal ,safety and ,soundness ,act 7#a7 ,in general ,the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deja et seq47 is amended-- 7,a7 in section #acjc-- 7i7 in paragraph 7#b71 by striking ',federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 7ii7 in paragraph 7#c71 by striking means and all that follows through the period at the end1 and inserting means the ,federal ,home ,loan ,bank ,act42 7iii7 by repealing paragraph 7#d72 and 7iv7 in paragraph 7#i71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,board of ,directors of the ,federal ,mortgage ,insurance ,corporation2 7,b7 by repealing section #acac;,a2 and 7,c7 by repealing section #acag7;d74 7#b7 ,effective date ,the amendments made by paragraph 7#a7 shall take effect on the ,,fmic certification date4 #ejb4 ,wind down 7a7 ,wind down 7#a7 ,authority of ,,fhfa ,beginning on the date of enactment of this ,act and ending on the ,,fmic certification date1 the ,director of the ,federal ,housing ,finance ,agency1 in consultation with the ,corporation and the ,secretary of the ,treasury1 shall take such action1 and may prescribe such regulations and procedures1 as may be necessary 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#b7 ,limitation ,notwithstanding any authority granted to the ,director of the ,federal ,housing ,finance ,agency under paragraph 7#a71 the sale1 transfer1 exchange1 or other disposition of any asset subject to the wind down required under this section shall be prohibited1 if the ,corporation-- 7,a7 in its discretion determines that such sale1 transfer1 exchange1 or disposition would materially interfere with the ability of the ,corporation to carry out the requirements of this ,act2 and 7,b7 notifies1 in writing1 the ,director of the ,federal ,housing ,finance ,agency within #ad days of such determination4 7#c7 ,rule of construction ,notwithstanding any authority granted to the ,director of the ,federal ,housing ,finance ,agency under paragraph 7#a71 the ,director of the ,federal ,housing ,finance ,agency-- 7,a7 shall have no authority to sell1 transfer1 exchange1 or otherwise dispose of any guarantee obligations described under subsections 7a77#b7 and 7b77#b7 of section #eja2 and 7,b7 shall have no rights1 claims1 or title to1 nor any authority to sell1 transfer1 exchange1 or otherwise dispose of1 guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the ,,fmic certification date4 7b7 ,division of assets and liabilities2 authority ,to establish holding corporation and dissolution trust fund ,the action and procedures required under subsection 7a7-- 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 an enterprise1 including any infrastructure1 property1 including intellectual property1 platforms1 or any other thing or object of value1 provided such plan complies with the requirements of this ,act and any amendments made by this ,act2 and 7#b7 may provide for establishment of-- 7,a7 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,b7 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 ,recoupment by senior preferred shareholders 7#a7 ,in general ,subject to the requirements of this ,act1 any proceeds from the wind down of an enterprise shall be paid first to the senior preferred shareholders of each such enterprise1 then to the preferred shareholders of each such enterprise1 and then to the common shareholders of each such enterprise4 7#b7 ,joint determination ,the amount of any proceeds to be paid pursuant to paragraph 7#a7 shall be jointly determined by the ,director of the ,federal ,housing ,finance ,agency1 the ,corporation1 and the ,secretary of the ,treasury4 7#c7 ,maximum return to shareholders ,the wind down of each enterprise required under this section shall be managed by the ,director of the ,federal ,housing ,finance ,agency1 in consultation with the ,corporation and the ,secretary of the ,treasury1 to obtain resolutions that maximize the return for the senior preferred shareholders under paragraph 7#a71 to the extent that such resolutions-- 7,a7 are consistent with the goal of supporting a sound1 stable1 and liquid housing market2 7,b7 are consistent with applicable ,federal and ,state law2 7,c7 comply with the requirements of this ,act and any amendments made by this ,act2 and 7,d7 protect the taxpayer4 7#d7 ,sale of certain assets as a going concern ,except as provided in section #fja or elsewhere as required in this ,act1 if the ,director of the ,federal ,housing ,finance ,agency1 in consultation with the ,corporation and the ,secretary of the ,treasury1 determines that the sale of any line of business1 or any function1 activity1 or service of an enterprise as a going concern will maximize the return for the senior preferred shareholders as required under paragraph 7#c71 the ,director may conduct such sale1 provided that-- 7,a7 under no circumstance1 shall such sale transfer1 convey1 or authorize1 or be deemed to transfer1 convey1 or authorize1 any guarantee or ,federal support1 assistance1 or backing1 implicit or explicit1 related to any such line of business1 function1 activity1 or service2 and 7,b7 such sale does not impede or otherwise interfere with the ability of the ,federal ,mortgage ,insurance ,corporation to carry out the functions and requirements of this ,act4 7#e7 ,rule of construction ,for purposes of this subsection1 the term proceeds does not include any guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the ,,fmic certification date4 #ejc4 ,aligning purpose of conservatorship with ,,fmic 7a7 ,power as conservator ,section #acfg7;b77#b77;,d7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7;b77#b77;,d77 is amended to read as follows3 7,d7 ,power as conservator ,after the date of enactment of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac the ,agency shall1 as conservator1 take such actions as are necessary-- 7i7 to ensure the efficient1 effective1 and expeditious wind down of the enterprises2 7ii7 to manage the affairs1 assets1 and obligations of the enterprises and to operate the enterprises in compliance with the requirements of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac2 7iii7 to assist the ,federal ,mortgage ,insurance ,corporation1 in a consultative capacity1 in carrying out the requirements under the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjac2 and 7iv7 to maintain liquidity and stability in the secondary mortgage market until such as time as the charters of the enterprises are revoked pursuant to title ,v of such ,act4 4 7b7 ,rule of construction ,nothing in this ,act1 or any amendments made by this ,act1 except as may be explicitly provided for in this ,act1 or any amendment made by this ,act1 shall be deemed to alter the powers1 authorities1 rights1 and duties that are vested in the ,federal ,housing ,finance ,agency and the ,director of the ,federal ,housing ,finance ,agency with respect to its supervision and regulation of the enterprises4 #ejd4 ,conforming loan limits 7a7 ,in general ,beginning on the date of enactment of this ,act1 the limitations governing the maximum original principal obligation of conventional mortgages that may be purchased by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation1 referred to in section #cjb7;b77#b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7;b77#b77 and section #cje7;a77#b7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b771 respectively1 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 date of enactment of this ,act1 subject to the limitations in this paragraph4 ,each adjustment shall be made by adding to each such amount 7as it may have been previously adjusted7 a percentage thereof equal to the percentage increase1 during the most recent #ab-month or #d-quarter period ending before the time of determining such annual adjustment1 in the housing price index maintained pursuant to section #acbb of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dedb74 ,if the change in such house price index during the most recent #ab-month or #d-quarter period ending before the time of determining such annual adjustment is a decrease1 then no adjustment shall be made for the next year1 and the next adjustment shall take into account prior declines in the house price index1 so that any adjustment shall reflect the net change in the house price index since the last adjustment4 ,declines in the house price index shall be accumulated and then reduce increases until subsequent increases exceed prior declines4 7b7 ,special exception for ,alaska1 ,hawaii1 ,guam1 and ,,usvi ,the limitations set forth under subsection 7a7 shall be increased by not to exceed #ej per centum with respect to properties located in ,alaska1 ,guam1 ,hawaii1 and the ,virgin ,islands4 7c7 ,high-,cost area limit ,the limitations set forth under subsection 7a7 shall also be increased1 with respect to properties of a particular size located in any area for which #aae percent of the median house price for such size residence exceeds the limitation under subsection 7a7 for such size residence-- 7#a7 for the first year following the date of enactment of this ,act1 to the lesser of #aej percent of such limitation for such size residence or the amount that is equal to #aae percent of the median house price in such area for such size residence2 7#b7 for the second year following the date of enactment of this ,act1 to the lesser of #ade percent of such limitation for such size residence or the amount that is equal to #aae percent of the median house price in such area for such size residence2 7#c7 for the third year following the date of enactment of this ,act1 to the lesser of #ace percent of such limitation for such size residence or the amount that is equal to #aae percent of the median house price in such area for such size residence2 7#d7 for the fourth year following the date of enactment of this ,act1 to the lesser of #acj percent of such limitation for such size residence or the amount that is equal to #aae percent of the median house price in such area for such size residence2 and 7#e7 for the fifth year following the date of enactment of this ,act1 and each year thereafter1 to the lesser of #abe percent of such limitation for such size residence or the amount that is equal to #aae percent of the median house price in such area for such size residence4 #eje4 ,portfolio reduction 7a7 ,graduated reduction 7#a7 ,in general ,each enterprise shall not own1 as of any applicable date1 mortgage assets in excess of-- 7,a7 as of ,december #ca1 #bjac1 #eeb1ejj1jjj1jjj2 and 7,b7 on ,december #ca of each year thereafter until the ,,fmic certification date1 #he percent of the aggregate amount of the mortgage assets that the enterprise was permitted to own as of ,december #ca of the immediately preceding calendar year4 7#b7 ,retained portfolio to facilitate orderly wind down ,on ,december #ca of the year in which the ,,fmic certification date occurs1 the ,corporation shall establish an allowable amount of enterprise owned mortgage assets in an amount equal to the amount necessary to facilitate-- 7,a7 the orderly wind down of the enterprises2 and 7,b7 appropriate loss mitigation on any legacy guarantees of the enterprises4 7b7 ,mortgage assets defined ,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 #ejf4 ,repeal of mandatory housing goals 7a7 ,repeal of housing goals ,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 ,the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deja et seq47 is amended-- 7#a7 in section #acjc7bh71 by striking 1 and1 for the purposes and all that follows through designated disaster areas2 7#b7 in section #acbd7;b77#a77;,a71 by striking clauses 7i71 7ii71 and 7iv72 7#c7 in section #acda-- 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#d7 in section #acde7;a7-- 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#e7 in section #acga7;a77#b71 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 ,,vi ,improvements to functioning of housing market #fja4 ,continuation of multifamily business of the enterprises 7a7 ,in general ,notwithstanding any provision of title ,v1 or any other provision of law1 effective on the ,,fmic certification date1 all functions1 activities1 infrastructure1 property1 including intellectual property1 platforms1 or any other object or service of an enterprise relating to the maintenance and operation of the multifamily guarantee business of an enterprise shall be transferred1 without cost1 to the ,corporation4 7b7 ,authority of ,director ,the ,corporation is authorized1 upon such terms and conditions as it may deem appropriate1 to guarantee the timely payment of principal of and interest1 on any mortgage on multifamily housing purchased by the ,corporation pursuant to the transfer of an enterprise's multifamily guarantee business under subsection 7a74 7c7 ,limitation on ongoing operation of multifamily business ,in carrying out the multifamily guarantee business of an enterprise transferred pursuant to subsection 7a71 the ,corporation shall ensure that any such business continues to operate1 as applicable1 consistent with-- 7#a7 the ,delegated ,underwriting and ,servicing ,lender ,program established by the ,federal ,national ,mortgage ,association2 and 7#b7 the ,program ,plus ,lender ,program established by the ,federal ,home ,loan ,mortgage ,corporation1 especially the ,series ,k ,structured ,pass-,through ,certificates offered by the enterprise4 7d7 ,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 guaranty-- 7#a7 issued by the ,corporation pursuant to this subsection2 and 7#b7 obligation assumed by the ,corporation pursuant to the transfer of an enterprise's multifamily guarantee business under subsection 7a74 7e7 ,guarantee fee 7#a7 ,in general ,the ,corporation shall collect a reasonable fee for any guaranty under this subsection and shall make such charges as it may determine to be reasonable for the analysis of any trust or other security arrangement proposed by an issuer of a security backed by multifamily mortgages guaranteed under this section4 7#b7 ,deposit into ,mortgage ,insurance ,fund ,any guarantee fee amounts collected under this subsection shall be deposited in the ,mortgage ,insurance ,fund4 #fjb4 ,multiple lender issues ,with respect to the dwelling of a borrower that serves as security for an eligible mortgage1 if the borrower enters into any credit transaction that would result in the creation of a new mortgage or other lien on such dwelling where the loan-to-value ratio of such credit transaction amount is #hj percent or more1 the creditor of such new mortgage or other lien shall seek and obtain the approval of the creditor of the senior eligible mortgage loan before any such credit transaction becomes valid and enforceable4 #fjc4 ,,gao report on full privatization of secondary mortgage market 7a7 ,,gao report ,not later than #h years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives on the feasibility of maintaining a fully privatized secondary mortgage market1 including recommendations on how to best carry out any displacement of the insurance model established under this ,act4 7b7 ,corporation plan ,to transition to a fully private secondary mortgage market 7#a7 ,required submission to ,congress ,not later than #f months after the date on which the report required under subsection 7a7 is submitted1 the ,corporation shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a plan to transition to a fully privatized secondary mortgage market4 7#b7 ,required content of plan ,the plan required to be submitted under paragraph 7#a7 shall describe1 chronicle1 and specify all the legislative1 administrative1 and regulatory actions necessary to carry out a transition to a fully private secondary mortgage market1 including all actions necessary to dissolve the ,corporation and successfully displace the insurance model established under this ,act4 ,,vii ,general provisions #gja4 ,authority to issue regulations ,the ,corporation may prescribe such regulations and issue such guidelines1 orders1 requirements1 or standards as are necessary to carry out this ,act1 or any amendment made by this ,act4 #gjb4 ,fair value accounting ,in any evaluation1 oversight1 audit1 or analysis by the ,corporation of the cost of the ,mortgage ,insurance ,fund1 the insurance or guarantee activities of the ,corporation required under this ,act1 including any fee or charge in connection with the provision of such insurance or guarantee1 or the financial transactions of the ,corporation1 the ,corporation shall conduct any such evaluation1 oversight1 audit1 or analysis based on the fair-value accrual accounting method4 #gjc4 ,rule of construction ,nothing in this ,act shall be construed to prohibit or otherwise restrict the ability of a holder of any loss position in any covered security insured under this ,act from restructuring1 retranching1 or resecuritizing such position4 #gjd4 ,severability ,if any provision of this ,act or the application of any provision of this ,act to any person or circumstance1 is held invalid1 the application of such provision to other persons or circumstances1 and the remainder of this ,act1 shall not be affected thereby4