,,ii ,calendar ,no4 #egi #aacth ,,congress #b;d ,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 ,mrs4 ,hagan1 ,mr4 ,kirk1 ,mr4 ,manchin1 ,mr4 ,chambliss1 and ,mr4 ,begich7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,september #ah1 #bjad,reported by ,mr4 ,johnson of ,south ,dakota1 with an amendment,strike out all after the enacting clause and insert the part printed in italic ,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 ,f,m,i,c,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 ,f,h,f,a,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 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 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--,elimination of ,fannie ,mae and ,freddie ,mac,sec4 #aja4 ,elimination of ,fannie ,mae and ,freddie ,mac4,,title ,,ii--,federal ,mortgage ,insurance ,corporation,sec4 #bja4 ,establishment4,sec4 #bjb4 ,management of ,corporation4,sec4 #bjc4 ,advisory ,committee4,sec4 #bjd4 ,office of the ,inspector ,general4,sec4 #bje4 ,staff1 experts1 and consultants4,sec4 #bjf4 ,reports2 testimony2 audits4,sec4 #bjg4 ,specific offices4,sec4 #bjh4 ,office of ,consumer and ,market ,access4,sec4 #bji4 ,office of ,multifamily ,housing4,sec4 #baj4 ,equitable access for lenders and borrowers4,sec4 #baa4 ,office of ,taxpayer ,protection4,,title ,,iii--,duties and responsibilities of the ,f,m,i,c,subtitle ,a--,duties and authorities,sec4 #cja4 ,duties and responsibilities4,sec4 #cjb4 ,standards for credit risk-sharing mechanisms4,sec4 #cjc4 ,insurance2 ,mortgage ,insurance ,fund4,sec4 #cjd4 ,loan limits2 ,housing ,price ,index4,sec4 #cje4 ,authority to protect taxpayers in unusual and exigent market conditions4,sec4 #cjf4 ,general powers4,sec4 #cjg4 ,exemptions4,sec4 #cjh4 ,regulatory consultation and coordination4,sec4 #cji4 ,authority to issue regulations4,sec4 #caj4 ,equivalency in protection of the ,mortgage ,insurance ,fund4,subtitle ,b--,approval and supervision of approved entities for single-family activities,sec4 #caa4 ,approval and supervision of guarantors4,sec4 #cab4 ,approval and supervision of aggregators4,sec4 #cac4 ,approval of private mortgage insurers4,sec4 #cad4 ,approval of servicers4,sec4 #cae4 ,authority to establish and approve small lender mutuals4,sec4 #caf4 ,supervisory actions related to capital and solvency4,sec4 #cag4 ,ownership1 acquisitions1 and operations of covered entities4,subtitle ,c--,securitization ,platform and ,transparency in ,market ,operations,p,a,r,t ,i--,securitization ,platform,sec4 #cba4 ,establishment of the ,securitization ,platform4,sec4 #cbb4 ,management of the ,platform4,sec4 #cbc4 ,membership in the ,platform4,sec4 #cbd4 ,fees4,sec4 #cbe4 ,purposes and obligations of the ,platform4,sec4 #cbf4 ,uniform securitization agreements for covered securities and required contractual terms for noncovered securities4,sec4 #cbg4 ,approval and standards for collateral risk managers4,,part ,,ii--,transparency in market operations,sec4 #cca4 ,review of loan documents2 disclosures4,sec4 #ccb4 ,national mortgage database4,sec4 #ccc4 ,working group on electronic registration of mortgage loans4,sec4 #ccd4 ,multiple lender issues4,sec4 #cce4 ,required harmonization of standards within eligible mortgage criteria4,,title ,,iv--,,fhfa and ,,fmic ,transition,sec4 #dja4 ,definitions4,sec4 #djb4 ,,fhfa transition4,sec4 #djc4 ,transfer and rights of employees of the ,,fhfa4,sec4 #djd4 ,transition ,committee4,sec4 #dje4 ,transition assessments4,sec4 #djf4 ,transfer of powers and duties on the system certification date2 continuation and coordination of certain actions4,sec4 #djg4 ,technical and conforming amendments relating to abolishment of ,,fhfa4,sec4 #djh4 ,repeal of mandatory housing goals4,,title ,v--,improving transparency1 accountability1 and efficacy within affordable housing,sec4 #eja4 ,affordable housing allocations4,sec4 #ejb4 ,housing ,trust ,fund4,sec4 #ejc4 ,capital ,magnet ,fund4,sec4 #ejd4 ,market ,access ,fund4,sec4 #eje4 ,additional taxpayer protections4,sec4 #ejf4 ,promoting affordable housing investment4,,title ,,vi--,transition and termination of ,fannie ,mae and ,freddie ,mac,sec4 #fja4 ,minimum housing finance system criteria to be met prior to system certification date4,sec4 #fjb4 ,transition of the housing finance system4,sec4 #fjc4 ,resolution authority2 technical amendments4,sec4 #fjd4 ,wind down4,sec4 #fje4 ,portfolio reduction4,sec4 #fjf4 ,oversight of transition of the housing finance system4,sec4 #fjg4 ,authority to establish provisional standards4,sec4 #fjh4 ,initial fund level for the ,mortgage ,insurance ,fund4,sec4 #fji4 ,,gao report on full privatization of secondary mortgage market4,,title ,,vii--,multifamily,sec4 #gja4 ,establishment of multifamily subsidiaries4,sec4 #gjb4 ,disposition of multifamily businesses4,sec4 #gjc4 ,approval and supervision of multifamily guarantors4,sec4 #gjd4 ,multifamily housing requirement4,sec4 #gje4 ,establishment of small multifamily property program4,sec4 #gjf4 ,multifamily housing study4,sec4 #gjg4 ,multifamily platform study4,sec4 #gjh4 ,short-term residential housing4,,title ,,viii--,general provisions,sec4 #hja4 ,rule of construction4,sec4 #hjb4 ,severability4,sec4 #hjc4 ,transfer notification under ,,tila4,sec4 #hjd4 ,investment authority to support rural infrastructure4,sec4 #hje4 ,consolidation of similar housing assistance programs4,sec4 #hjf4 ,bureau of ,consumer ,financial ,protection review2 ,,gao report4,sec4 #hjg4 ,determination of budgetary effects4 #b4 ,definitions ,as used in this ,act1 the following definitions shall apply3 7#a7 ,affiliate ,the term affiliate means any person that controls1 is controlled by1 or is under common control with another person4 7#b7 ,affordable rental housing ,the term affordable rental housing means a rental housing unit that is considered affordable for extremely low-1 very low-1 low-1 and moderate-income families if the rent charged1 including utilities or a utility allowance1 does not exceed #cj percent of the respective income limit in that market area for extremely low-1 very low-1 low-1 or moderate-income families1 respectively1 of the size appropriate for the number of bedrooms in the unit1 as established by the ,secretary of ,housing and ,urban ,development4 7#c7 ,agency transfer date ,the term agency transfer date means the date that is #f months after the date of enactment of this ,act4 7#d7 ,appropriate ,federal banking agency ,the term appropriate ,federal banking agency has the same meaning as in section #c7q7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7q771 and includes the ,national ,credit ,union ,administration in the case of any credit union4 7#e7 ,approved aggregator ,the term approved aggregator means an entity that is approved by the ,corporation pursuant to section #cab4 7#f7 ,approved entity ,the term approved entity means-- 7,a7 an approved guarantor2 7,b7 an approved multifamily guarantor2 7,c7 an approved aggregator2 7,d7 an approved private mortgage insurer2 and 7,e7 an approved servicer4 7#g7 ,approved guarantor ,the term approved guarantor means an entity that is approved by the ,corporation pursuant to section #caa4 7#h7 ,approved multifamily guarantor ,the term approved multifamily guarantor means an entity that is approved by the ,corporation pursuant to section #gjc4 7#i7 ,approved private mortgage insurer ,the term approved private mortgage insurer means an entity that is approved by the ,corporation pursuant to section #cac4 7#aj7 ,approved servicer ,the term approved servicer means an entity that is approved by the ,corporation pursuant to section #cad4 7#aa7 ,area ,the term area means a metropolitan statistical area1 a micropolitan statistical area1 and a noncore area1 as such areas may be established by the ,office of ,management and ,budget4 7#ab7 ,board2 ,board of ,directors ,the terms ,board and ,board of ,directors mean the ,board of ,directors of the ,federal ,mortgage ,insurance ,corporation1 unless the context otherwise requires4 7#ac7 ,chairperson ,the term ,chairperson means the ,chairperson of ,board of ,directors of the ,federal ,mortgage ,insurance ,corporation1 unless the context otherwise requires4 7#ad7 ,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#ae7 ,community ,development ,financial ,institution ,the term ,community ,development ,financial ,institution has the same meaning as in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#af7 ,community land trust ,the term community land trust means a nonprofit organization or ,state or local government that owns real property and leases the land through homeownership programs that-- 7,a7 use a ground lease to-- 7i7 make real property affordable to low- or moderate-income borrowers2 and 7ii7 stipulate a preemptive option to purchase the real property from the home owner at resale so that the affordability of the real property is preserved for successive low- and moderate-income borrowers2 7,b7 monitor properties to ensure affordability is preserved over resales2 and 7,c7 support homeowners to promote successful homeownership and prevent foreclosure4 7#ag7 ,corporation ,the term ,corporation means the ,federal ,mortgage ,insurance ,corporation established under title ,,ii4 7#ah7 ,covered entity ,the term covered entity means-- 7,a7 an approved guarantor2 7,b7 an approved multifamily guarantor2 and 7,c7 an approved aggregator that is neither an insured depository institution nor an affiliate of an insured depository institution4 7#ai7 ,covered guarantee transaction 7,a7 ,definition ,the term covered guarantee transaction means a transaction1 as that term shall be defined by the ,corporation by regulation1 involving the agreement to guarantee-- 7i7 any eligible mortgage loan2 7ii7 any pool of such eligible mortgage loans2 or 7iii7 the payment of principal and interest on covered securities collateralized by eligible mortgage loans before payments insured by the ,corporation are made4 7,b7 ,rules of construction ,a covered guarantee transaction-- 7i7 shall not be construed to be-- 7,i7 a contract for sale of a commodity for future delivery or a swap under the ,commodity ,exchange ,act2 or 7,,ii7 a contract of insurance or reinsurance under any ,federal or ,state law regulating the sale1 underwriting1 provision1 or brokerage of insurance2 7ii7 shall not be subject to any requirement of the ,commodity ,exchange ,act2 and 7iii7 shall not be subject to any requirement imposed under ,state law pertaining to the sale1 underwriting1 provision1 or brokerage of insurance or reinsurance4 7#bj7 ,covered market-based risk-sharing transaction 7,a7 ,definition ,the term covered market-based risk-sharing transaction means any private market transaction1 as that term shall be defined by the ,corporation by regulation1 involving a covered security issued subject to a standard risk-sharing mechanism1 product1 contract1 or other security agreement approved by the ,corporation under section #cjb4 7,b7 ,rules of construction ,a covered market-based risk-sharing transaction-- 7i7 shall not be construed to be a contract of insurance or reinsurance under any ,federal or ,state law regulating the sale1 underwriting1 provision1 or brokerage of insurance2 and 7ii7 shall not be subject to any requirement imposed under ,state law pertaining to the sale1 underwriting1 provision1 or brokerage of insurance or reinsurance4 7#ba7 ,covered security ,the term covered security means-- 7,a7 a single-family covered security2 and 7,b7 a multifamily covered security4 7#bb7 ,credit risk-sharing mechanism ,the term credit risk-sharing mechanism means any mechanism1 product1 structure1 contract1 or security agreement by which a private market holder assumes the first loss position1 or any part of such position1 associated with the pool of eligible mortgage loans collateralizing a covered security1 or by which an approved guarantor or approved multifamily guarantor manages the credit risk related to guarantees provided for covered securities4 7#bc7 ,,csp ,the term ,,csp means the securitization infrastructure announced by the ,federal ,housing ,finance ,agency on ,october #d1 #bjab1 and developed by the enterprises while under conservatorship1 under the authority of the ,federal ,housing ,finance ,agency pursuant to the ,safety and ,soundness ,act1 and commonly referred to as the common securitization platform4 7#bd7 ,days ,the term days means-- 7,a7 with respect to any period of time less than or equal to #aj days1 business days2 and 7,b7 with respect to any period of time greater than #aj days1 calendar days4 7#be7 ,depository institution holding company ,the term depository institution holding company has the same meaning as section #c7w77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7w77#a774 7#bf7 ,eligible borrower ,the term eligible borrower means a borrower who-- 7,a7 applies for an eligible mortgage loan2 and 7,b7 meets the standards required of a borrower to be approved for an eligible mortgage loan4 7#bg7 ,eligible mortgage loan ,the term eligible mortgage loan means-- 7,a7 an eligible single-family mortgage loan2 and 7,b7 an eligible multifamily mortgage loan4 7#bh7 ,eligible multifamily mortgage loan ,the term eligible multifamily mortgage loan means a commercial real estate loan-- 7,a7 secured by a property with-- 7i7 #e or more residential units2 or 7ii7 #b or more residential units1 if the requirement under clause 7i7 is waived by the ,corporation for purposes of carrying out a demonstration or pilot program2 7,b7 the primary source of repayment for which is expected to be derived from rental income generated by the property2 7,c7 the term of which may not be less than #e years but not more than #dj years1 except that the term may be less than #e years subject to standards set by the ,corporation2 7,d7 that satisfies any additional underwriting criteria established by the ,corporation to balance supporting access to capital with managing credit risk to the ,mortgage ,insurance ,fund1 including-- 7i7 a maximum loan-to-value ratio2 7ii7 a minimum debt service coverage ratio2 and 7iii7 considerations for restrictive or special uses of a property1 including non-residential uses1 properties for seniors1 manufactured housing1 and affordability restrictions1 and the impact of such uses on clauses 7i7 and 7ii72 and 7,e7 that satisfies any additional underwriting criteria that may be established by the ,corporation4 7#bi7 ,eligible single-family mortgage loan ,the term eligible single-family mortgage loan means-- 7,a7 a loan that-- 7i7 has been originated in compliance with minimum standards issued by the ,corporation by regulation1 provided that such standards-- 7,i7 are uniform and equal in kind1 nature1 and application regardless of-- 7aa7 the originator of the mortgage loan2 or 7bb7 the role performed by an approved entity with respect to the mortgage loan2 7,,ii7 are1 to the greatest extent possible1 substantially similar to the regulations issued by the ,bureau of ,consumer ,financial ,protection under section #abi;,c7b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c72 and 7,,iii7 permit-- 7aa7 residential real estate loans secured by a property with #a to #d single-family units1 including units that are not owner-occupied2 7bb7 loans secured by manufactured homes1 as defined in section #fjc7f7 of the ,national ,manufactured ,housing ,construction and ,safety ,standards ,act of #aigd 7#db ,u4,s4,c4 #edjb7f772 7cc7 residential real estate loans secured by a property with #a to #d single-family units that are originated by a ,state housing finance agency1 as defined in section #ajf of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjax72 7dd7 loans originated by a ,community ,development ,financial ,institution2 7ee7 loans originated by a mission-based nonprofit lender2 7ff7 loans secured by real property in a permanently affordable homeownership program or community land trust2 and 7gg7 loans to entities that provide non-owner occupied rental housing with care providers for individuals with intellectual and developmental disabilities2 7ii7 has a maximum original principal obligation amount that does not exceed the applicable loan limitation established under section #cjd2 7iii7 has an outstanding principal balance at the time of purchase of insurance available under title ,,ii that does not exceed #hj percent of the value of the property securing the loan1 unless-- 7,i7 for such period and under such circumstances as the ,corporation may require1 the seller agrees to repurchase or replace the loan upon demand of the ,corporation in the event the loan is in default2 7,,ii7 an approved private mortgage insurer guarantees or insures-- 7aa7 not less than #ab percent of the unpaid principal balance of the loan1 accounting for any down payment required under clause 7iv71 for loans in which the unpaid principal balance exceeds #hj percent but not more than #he percent of the value of the property securing the loan2 7bb7 not less than #be percent of the unpaid principal balance of the loan1 accounting for any down payment required under clause 7iv71 for loans in which the unpaid principal balance exceeds #he percent but not more than #ij percent of the value of the property securing the loan2 7cc7 not less than #cj percent of the unpaid principal balance of the loan1 accounting for any down payment required under clause 7iv71 for loans in which the unpaid principal balance exceeds #ij percent but not more than #ie percent of the value of the property securing the loan2 and 7dd7 not less than #ce percent of the unpaid principal balance of the loan1 accounting for any down payment required under clause 7iv71 for loans in which the unpaid principal balance exceeds #ie percent of the value of the property securing the loan2 or 7,,iii7 that portion of the unpaid principal balance of the loan which exceeds #hj percent of the value of the property securing the loan is subject to other credit enhancement that-- 7aa7 meets standards comparable to the standards required of private mortgage insurers under subclause 7,,ii72 and 7bb7 is approved by the ,corporation2 7iv7 has a down payment that is-- 7,i7 for a first-time homebuyer1 as that term shall be defined by the ,corporation by regulation1 equal to not less than #c4e percent of the purchase price of the property securing the loan2 or 7,,ii7 for non first-time homebuyers1 equal to-- 7aa7 not less than #c4e percent of the purchase price of the property securing the loan1 if such purchase occurs prior to the system certification date or less than #a year after the system certification date2 7bb7 not less than #d percent of the purchase price of the property securing the loan1 if such purchase occurs during the period that begins #a year after the system certification date and ends less than #b years after the system certification date2 7cc7 not less than #d4e percent of the purchase price of the property securing the loan1 if such purchase occurs during the period that begins #b years after the system certification date and ends less than #c years after the system certification date2 or 7dd7 not less than #e percent of the purchase price of the property securing the loan1 if such purchase occurs during any period after the period set forth in item 7cc72 7v7 satisfies standards related to establishing title or marketability of title1 as may be required by the ,corporation1 which standards may include the required purchase of title insurance on the property securing the loan2 7vi7 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 loan as the ,corporation may prescribe2 and 7vii7 contains such other terms1 characteristics1 or underwriting criteria as the ,corporation1 in consultation with the ,bureau of ,consumer ,financial ,protection1 may determine necessary or appropriate2 or 7,b7 a loan refinanced pursuant to the authority granted under section #cje7;i74 7#cj7 ,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#ca7 ,extremely low-income ,the term extremely low-income means-- 7,a7 in the case of owner-occupied units1 income not in excess of #cj percent of the median income of the area2 and 7,b7 in the case of rental units1 income not in excess of #cj percent of the median income of the area1 with adjustments for smaller and larger families1 as determined by the ,secretary of ,housing and ,urban ,development4 7#cb7 ,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#cc7 ,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#cd7 ,,fhfa related terms 7,a7 ,federal ,housing ,finance ,agency ,the term ,federal ,housing ,finance ,agency shall mean-- 7i7 prior to the agency transfer date1 the ,federal ,housing ,finance ,agency established under section #acaa of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #deaa72 7ii7 on and after the agency transfer date but prior to the system certification date1 the ,federal ,housing ,finance ,agency established within the ,corporation under title ,,iv2 and 7iii7 on and after the system certification date1 the ,corporation4 7,b7 ,,fhfa ,director ,the term ,,fhfa ,director has the same meaning as the term ,director in section #dja7a74 7#ce7 ,federal regulatory agencies ,the term-- 7,a7 ,federal regulatory 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 ,commodity ,futures ,trading ,commission1 and the ,federal ,housing ,finance ,agency2 and 7,b7 ,federal regulatory agencies means all of the agencies referred to in subparagraph 7,a71 collectively4 7#cf7 ,first loss position ,the term first loss position means1 with regard to a covered security-- 7,a7 either-- 7i7 the fully-funded position to which any credit loss on such covered security resulting from the nonperformance of underlying mortgage loans will accrue and be absorbed1 to the full extent of the holder's interest in such position2 or 7ii7 the guarantee provided by an approved guarantor or approved multifamily guarantor with respect to an eligible single-family mortgage loan1 pool of eligible single-family mortgage loans1 or a single-family covered security or eligible multifamily mortgage loan1 pool of eligible multifamily mortgage loans1 or a multifamily covered security1 as applicable2 and 7,b7 the position or guarantee described under subparagraph 7,a71 as applicable1 which is required to absorb any initial credit loss on a covered security prior to the ,corporation becoming obligated to make any payment of insurance in accordance with this ,act4 7#cg7 ,,hud-approved housing counseling agency ,the term ,,hud-approved housing counseling agency means an agency certified by the ,secretary of ,housing and ,urban ,development under section #ajf7;e7 of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjax7e774 7#ch7 ,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 an insured credit union1 as defined under section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#ci7 ,issuer ,for a noncovered security1 the term issuer shall have the same meaning as under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;b7 and the rules and regulations promulgated thereunder4 ,the ,platform shall not be deemed to be an issuer of noncovered securities for purposes of the ,securities ,act of #aicc4 7#dj7 ,low-income ,the term low-income means-- 7,a7 in the case of owner-occupied units1 income not in excess of #hj percent of median income of the area2 and 7,b7 in the case of rental units1 income not in excess of #hj percent of median income of the area1 with adjustments for smaller and larger families1 as determined by the ,secretary of ,housing and ,urban ,development4 7#da7 ,market participant ,the term market participant means any-- 7,a7 approved entity2 7,b7 private market holder2 and 7,c7 member of the ,securitization ,platform4 7#db7 ,median income ,the term median income means1 with respect to an area1 the unadjusted median family income for the area1 as determined and published annually by the ,secretary of ,housing and ,urban ,development4 7#dc7 ,mission-based nonprofit lender ,the term mission-based nonprofit lender means an organization that-- 7,a7 is exempt from taxation pursuant to section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf2 7,b7 makes-- 7i7 residential real estate loans for the purpose of promoting or facilitating homeownership for poor or low- or moderate-income1 disabled1 or other disadvantaged persons or families2 or 7ii7 real estate loans for the purpose of promoting or facilitating affordable rental housing for low-income persons or families and subject to any other additional criteria established by the ,corporation2 7,c7 sets interest rates on such loans that-- 7i7 are lower than the bank prime loan rate1 as determined under the ,federal ,reserve ,statistical ,release of selected interest rates 7commonly referred to as the ,h4#ae7 by the ,board of ,governors of the ,federal ,reserve ,system1 for the last day of the most recent weekly release of such rates2 or 7ii7 are1 after adjusting for inflation1 no-interest loans or loans with interest rates at or below the interest rates for mortgage loans generally available in the market2 7,d7 except as described under subparagraph 7,b71 does not engage in the business of a mortgage originator or mortgage broker2 7,e7 conducts its activities in a manner that serves public or charitable purposes2 7,f7 receives funding and revenue and charges fees in a manner that does not incentivize the organization or its employees to act other than in the best interests of its clients2 7,g7 compensates employees in a manner that does not incentivize employees to act other than in the best interests of its clients2 and 7,h7 meets such other requirements as the ,corporation determines appropriate4 7#dd7 ,moderate-income ,the term moderate-income means 7,a7 in the case of owner-occupied units1 income not in excess of median income of the area2 and 7,b7 in the case of rental units1 income not in excess of median income of the area1 with adjustments for smaller and larger families1 as determined by the ,secretary of ,housing and ,urban ,development4 7#de7 ,mortgage aggregator ,the term mortgage aggregator means a person that-- 7,a7 arranges1 in connection with a single-family covered security1 a credit-risk sharing mechanism that is approved by the ,corporation pursuant to section #cjb2 7,b7 issues such single-family covered security through the ,securitization ,platform2 7,c7 does not originate eligible single-family mortgage loans2 and 7,d7 is not affiliated with a person that actively engages in the business of originating eligible single-family mortgage loans4 7#df7 ,mortgage-backed security ,the term mortgage-backed security means an asset-backed security1 as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a771 that is collateralized by-- 7,a7 a mortgage loan1 including any residential real estate loan or commercial real estate loan2 or 7,b7 a collateralized mortgage obligation of mortgage-backed securities4 7#dg7 ,mortgage originator ,the term mortgage originator has the same meaning as in section #ajc7;cc77#b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7;cc77#b774 7#dh7 ,multifamily business ,the term multifamily business means the activities and processes of the enterprises of-- 7,a7 purchasing1 selling1 lending on the security of1 or otherwise dealing in multifamily mortgage loans2 7,b7 securitizing a pool of multifamily mortgage loans2 and 7,c7 issuing multifamily securities4 7#di7 ,multifamily covered security ,the term multifamily covered security means a multifamily mortgage-backed security-- 7,a7 collateralized by eligible multifamily mortgage loans2 and 7,b7 that is insured by the ,corporation pursuant to section #cjc4 7#ej7 ,multifamily mortgage-backed security ,the term multifamily mortgage-backed security means a mortgage-backed security collateralized by commercial real estate loans secured by properties with #e or more residential units in accordance with the requirements of this ,act4 7#ea7 ,noncovered security ,the term noncovered security means any mortgage-backed security other than a covered security4 7#eb7 ,noneligible mortgage loan ,the term noneligible mortgage loan means any mortgage loan other than an eligible mortgage loan4 7#ec7 ,office of ,finance ,the term ,office of ,finance means the ,office of ,finance in the ,federal ,home ,loan ,bank ,system4 7#ed7 ,permanently affordable homeownership program ,the term permanently affordable homeownership program includes programs administered by community land trusts1 nonprofit organizations1 or ,state or local governments that-- 7,a7 use a ground lease1 deed restriction1 subordinate loan1 or similar legal mechanism to-- 7i7 make real property affordable to low- or moderate-income borrowers2 and 7ii7 stipulate a preemptive option to purchase the real property from the homeowner at resale to preserve the affordability of the real property for successive low- and moderate-income borrowers2 7,b7 monitor properties to ensure affordability is preserved over resales2 and 7,c7 support homeowners to promote successful homeownership and prevent foreclosure4 7#ee7 ,person ,the term person means an individual1 corporation1 company 7including a limited liability company or joint stock company71 association 7incorporated or unincorporated71 mutual or cooperative organization1 partnership1 trust1 estate1 society1 or any other legal entity4 7#ef7 ,platform2 ,securitization ,platform ,the terms ,platform and ,securitization ,platform mean the securitization infrastructure established under part ,i of subtitle ,c of title ,,iii4 7#eg7 ,platform ,directors ,the term ,platform ,directors means the board of directors of the ,securitization ,platform4 7#eh7 ,platform security ,the term ,platform security means a mortgage-backed security issued through the ,securitization ,platform4 7#ei7 ,private label mortgage-backed securities market ,the term private label mortgage-backed securities market means the market in which noncovered securities are issued1 bought1 and sold4 7#fj7 ,private market holder ,the term private market holder means the holder or holders1 other than an approved guarantor or an approved multifamily guarantor1 of the first loss position with respect to eligible mortgage loans collateralizing any covered security insured in accordance with this ,act4 7#fa7 ,regulated entity ,the term regulated entity means-- 7,a7 the ,federal ,national ,mortgage ,association and any affiliate thereof2 7,b7 the ,federal ,home ,loan ,mortgage ,corporation and any affiliate thereof2 7,c7 any ,federal ,home ,loan ,bank2 and 7,d7 the ,securitization ,platform4 7#fb7 ,residential real estate loan ,the term residential real estate loan includes any-- 7,a7 real estate mortgage loan2 7,b7 personal property loan secured solely by the home itself2 7,c7 hybrid land-home loan for a manufactured home1 as defined in section #fjc7f7 of the ,national ,manufactured ,housing ,construction and ,safety ,standards ,act of #aigd 7#db ,u4,s4,c4 #edjb7f771 to which the requirements of paragraph 7#bi77;,a77v7 shall not apply2 and 7,d7 mortgage loan secured by real property in a community land trust or permanently affordable homeownership program4 7#fc7 ,safety and ,soundness ,act ,the term ,safety and ,soundness ,act means the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deja et seq474 7#fd7 ,senior ,preferred ,stock ,purchase ,agreement ,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#fe7 ,single-family activities ,the term single-family activities means the activities and processes of the ,corporation in providing insurance for single-family covered securities as provided in this ,act4 7#ff7 ,single-family covered security ,the term single-family covered security means a single-family mortgage-backed security-- 7,a7 collateralized by eligible single-family mortgage loans2 and 7,b7 that is insured by the ,corporation pursuant to section #cjc4 7#fg7 ,small mortgage lender ,the term small mortgage lender means a community bank1 credit union1 mid-sized bank1 non-depository institution1 ,community ,development ,financial ,institution1 mission-based nonprofit lender1 or housing finance agency that originates residential real estate loans or commercial real estate loans4 7#fh7 ,standardized covered security2 standardized security for single-family covered securities ,the terms standardized covered security and standardized single-family covered security mean a single-family covered security that is-- 7,a7 issued through the ,platform2 and 7,b7 in a form1 and includes the standardized and uniform terms for the security and transaction that have been1 developed by the ,platform ,directors and approved by the ,corporation for use across various issuances4 7#fi7 ,standardized noncovered security2 standardized security for single-family noncovered securities ,the terms standardized noncovered security and standardized single-family noncovered security mean a single-family noncovered security that is-- 7,a7 issued through the ,platform2 and 7,b7 in a form1 and includes the standardized and uniform terms for the security and transaction that have been1 developed by the ,platform ,directors for use across various issuances4 7#gj7 ,state ,the term ,state means any ,state1 territory1 or possession of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,guam1 ,american ,samoa1 or the ,united ,states ,virgin ,islands or any ,federally recognized ,indian tribe1 as defined by the ,secretary of the ,interior under section #ajd7;a7 of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid 7#be ,u4,s4,c4 #dgi;a-#a7;a774 7#ga7 ,system certification date ,the term system certification date means the date on which the ,board of ,directors certifies that the requirements of section #fja have been met4 7#gb7 ,very low-income 7,a7 ,in general ,the term very low-income means-- 7i7 in the case of owner-occupied units1 families having incomes not greater than #ej percent of the median income of the area2 and 7ii7 in the case of rental units1 families having incomes not greater than #ej percent of the median income of the area1 with adjustments for smaller and larger families1 as determined by the ,secretary of ,housing and ,urban ,development4 7,b7 ,rule of construction ,for purposes of the ,housing ,trust ,fund established under section #acch of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh71 the ,capital ,magnet ,fund established under section #acci of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defi71 and the ,market ,access ,fund established under section #ejd1 the term very low-income means-- 7i7 in the case of owner-occupied units1 income in excess of #cj percent but not greater than #ej percent of the median income of the area2 and 7ii7 in the case of rental units1 income in excess of #cj percent but not greater than #ej percent of the median income of the area1 with adjustments for smaller and larger families1 as determined by the ,secretary of ,housing and ,urban ,development4 ,i ,elimination of ,fannie ,mae and ,freddie ,mac #aja4 ,elimination of ,fannie ,mae and ,freddie ,mac 7a7 ,fannie ,mae ,effective on the agency transfer date1 the ,corporation shall take all steps necessary to dissolve and eliminate the ,federal ,national ,mortgage ,association pursuant to the provisions of this ,act4 ,the charter for the ,federal ,national ,mortgage ,association shall be repealed pursuant to title ,,vi4 7b7 ,freddie ,mac ,effective on the agency transfer date1 the ,corporation shall take all steps necessary to dissolve and eliminate the ,federal ,home ,loan ,mortgage ,corporation pursuant to the provisions of this ,act4 ,the charter for the ,federal ,home ,loan ,mortgage ,corporation shall be repealed pursuant to title ,,vi4 ,,ii ,federal ,mortgage ,insurance ,corporation #bja4 ,establishment 7a7 ,establishment ,effective on the agency transfer date1 there is established the ,federal ,mortgage ,insurance ,corporation1 which is charged with ensuring the safety and soundness of1 and compliance with laws and regulations1 fair access to financial services1 and fair treatment of customers by the institutions and other persons subject to its jurisdiction and which shall have the powers hereinafter granted4 7b7 ,purpose ,the purpose of the ,corporation shall be to-- 7#a7 facilitate a liquid1 transparent1 and resilient single-family and multifamily mortgage credit market by supporting a robust secondary mortgage market1 including during the transition to the new housing finance system2 7#b7 provide insurance on any mortgage-backed security that satisfies the requirements under this ,act to become a covered security2 7#c7 monitor and supervise approved entities to the extent provided in this ,act2 7#d7 supervise the regulated entities2 7#e7 facilitate the broad availability of mortgage credit and secondary mortgage market financing through fluctuations in the business cycle for eligible single-family and multifamily lending across all-- 7,a7 regions2 7,b7 localities2 7,c7 institutions2 7,d7 property types1 including housing serving renters2 and 7,e7 eligible borrowers2 7#f7 ensure continued1 widespread availability of an affordable1 long-term1 fixed rate1 prepayable mortgage1 such as a #cj-year fixed rate mortgage2 and 7#g7 preserve and maintain a liquid forward execution market for eligible single-family mortgage loans and single-family covered securities1 such as the ,to-,be-,announced market4 7c7 ,general supervisory and regulatory authority 7#a7 ,in general ,each approved entity shall1 to the extent provided in this ,act1 be subject to the supervision and regulation of the ,corporation4 7#b7 ,regulated entities2 ,office of ,finance ,the ,corporation shall have general regulatory authority over each regulated entity and the ,office of ,finance1 and shall exercise such general regulatory authority to ensure that the purposes of this ,act1 any amendments made by this ,act1 and any other applicable law as to which the ,corporation has responsibility under this ,act are carried out4 7d7 ,federal status ,the ,corporation shall be an independent agency and an instrumentality of the ,federal ,government4 7e7 ,succession ,the ,corporation shall have succession until dissolved by an ,act of ,congress4 7f7 ,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 7g7 ,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 7h7 ,prohibition ,the ,corporation shall not engage in mortgage loan origination4 #bjb4 ,management of ,corporation 7a7 ,board of ,directors 7#a7 ,members ,the management of the ,corporation shall be vested in a ,board of ,directors consisting of #e members who 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 demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working in1 housing and housing finance4 7#b7 ,political affiliation ,not more than #c of the members of the ,board of ,directors may be members of the same political party4 7#c7 ,duties ,the ,board of ,directors shall advise the ,chairperson regarding overall strategies and policies to carry out the duties and purposes of this ,act4 7b7 ,chairperson and ,vice ,chairperson 7#a7 ,chairperson 7,a7 ,designation #a of the members appointed pursuant to subsection 7a77#a7 shall be designated by the ,president to serve as ,chairperson of the ,board of ,directors4 7,b7 ,term ,except as provided in subsection 7c77#a77;,a71 the ,chairperson shall be appointed for a term of #e years1 unless removed before the end of such term by the ,president under subparagraph 7,c74 7,c7 ,removal for cause ,the ,president may remove the ,chairperson for inefficiency1 neglect of duty1 or malfeasance in office4 7,d7 ,duties and authorities 7i7 ,in general ,the ,chairperson-- 7,i7 shall-- 7aa7 be the active executive officer of the ,corporation1 subject to supervision by the ,board of ,directors2 7bb7 oversee the prudential operations of each regulated entity2 and 7cc7 ensure that each approved entity and regulated entity operates in a safe and sound manner1 including-- 7,,aa7 through the maintenance of adequate capital1 standards1 and internal controls2 and 7,,bb7 by ensuring compliance with the rules1 regulations1 guidelines1 and orders issued pursuant to this ,act2 and 7,,ii7 may exercise such incidental powers as may be necessary or appropriate to assist the ,corporation in fulfilling the duties and responsibilities of the ,corporation in the supervision and regulation of each approved entity and regulated entity4 7ii7 ,delegation ,the ,chairperson may delegate to officers and employees of the ,corporation any of the functions1 powers1 or duties of the ,chairperson1 as the ,chairperson considers appropriate4 7#b7 ,vice ,chairperson 7,a7 ,designation #a of the members appointed pursuant to subsection 7a77#a7 shall be designated by the ,president to serve as ,vice ,chairperson of the ,board of ,directors4 7,b7 ,term ,except as provided in subsection 7c77#a77;,b71 the ,vice ,chairperson shall be appointed for a term of #e years1 unless removed before the end of such term by the ,president under subparagraph 7,c74 7,c7 ,removal for cause ,the ,president may remove the ,vice ,chairperson for inefficiency1 neglect of duty1 or malfeasance in office4 7#c7 ,acting ,chairperson 7,a7 ,during vacancy in the position of ,chairperson ,except as provided in section #djb1 in the event of a vacancy in the position of ,chairperson of the ,board of ,directors or during the absence or disability of the ,chairperson1 the ,vice ,chairperson shall act as ,chairperson4 7,b7 ,during vacancies in the position of ,chairperson and ,vice ,chairperson ,except as provided in section #djb1 in the event of vacancies in the positions of ,chairperson and ,vice ,chairperson1 or during the absence or disability of both the ,chairperson and the ,vice ,chairperson1 the ,president shall designate #a of the other members appointed pursuant to subsection 7a77#a7 as ,acting ,chairperson4 7,c7 ,retention of authority ,any person confirmed to serve as ,chairperson1 or acting as ,chairperson1 whether designated to act as such by the ,president under this paragraph or acting in such capacity by operation of this paragraph or section #djb1 shall for the period that such person is serving as ,chairperson or acting as ,chairperson-- 7i7 act for all purposes as the ,chairperson2 and 7ii7 have all the rights1 duties1 powers1 and responsibilities of the ,chairperson4 7c7 ,staggered terms2 term continuation 7#a7 ,terms 7,a7 ,term of initial ,chairperson ,the initial member of the ,board of ,directors appointed pursuant to subsection 7a77#a7 and designated as ,chairperson under subsection 7b77#a7 shall serve a term of #cj months4 7,b7 ,term of initial ,vice ,chairperson ,the initial member of the ,board of ,directors appointed pursuant to subsection 7a77#a7 and designated as ,vice ,chairperson under subsection 7b77#b7 shall serve a term of #cj months4 7,c7 ,term of other appointed members #a of the other initial members of the ,board of ,directors appointed pursuant to subsection 7a77#a7 and not designated as ,chairperson or ,vice ,chairperson under subsection 7b7 shall serve a term of #cj months and the other #b initial members shall serve a term of #d years4 7,d7 ,all other terms ,after the expiration of the initial terms under subparagraphs 7,a7 through 7,c71 all subsequent members of the ,board of ,directors appointed pursuant to subsection 7a77#a7 shall serve for a term of #e years4 7#b7 ,continuation of service ,each member of the ,board of ,directors appointed pursuant to subsection 7a77#a71 including any member appointed to serve as ,chairperson or ,vice ,chairperson1 may continue to serve after the expiration of the term of office to which such member was appointed until the expiration of the next session of ,congress subsequent to the expiration of said fixed term of office4 7d7 ,vacancy2 manner of fulfillment ,any vacancy on the ,board of ,directors shall be filled in the manner in which the original appointment was made1 and the person appointed to fill such vacancy shall be appointed only for the remainder of such term4 7e7 ,compensation of members 7#a7 ,chairperson ,the ,chairperson shall receive compensation at the rate prescribed for ,level ,,ii of the ,executive ,schedule under section #ecac of title #e1 ,united ,states ,code4 7#b7 ,other appointed members ,all members of the ,board of ,directors not described in paragraph 7#a7 shall receive compensation at the rate prescribed for ,level ,,iii of the ,executive ,schedule under section #ecad of title #e1 ,united ,states ,code4 7f7 ,ineligibility for other offices during service2 postservice restriction 7#a7 ,restrictions during service ,no member of the ,board of ,directors may1 during the time such member is serving in such capacity and for the #b-year period beginning on the date such member ceases to serve as a member of the ,board of ,directors-- 7,a7 be an officer1 employee1 or director of any-- 7i7 insured depository institution2 7ii7 insured depository institution holding company2 7iii7 ,federal ,reserve bank2 7iv7 regulated entity2 7v7 approved entity2 or 7vi7 non-bank financial institution or company that originates eligible mortgage loans2 or 7,b7 hold stock or have beneficial ownership in any-- 7i7 insured depository institution2 7ii7 insured depository institution holding company2 7iii7 regulated entity2 7iv7 approved entity2 or 7v7 non-bank financial institution or company that originates eligible mortgage loans4 7#b7 ,certification ,upon taking office1 each member of the ,board of ,directors shall certify under oath that such member has complied1 and will comply1 with this subsection and such certification shall be filed with the secretary of the ,board of ,directors4 7g7 ,status of directors1 officers1 and employees 7#a7 ,in general ,a member of the ,board of ,directors1 officer1 or employee of the ,corporation has no liability under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;b 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 disposition of assets 7or any interests in any assets or any obligations backed by any assets7 by 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 ,this subsection does not affect-- 7,a7 any other immunities and protections that may be available to such person under applicable law with respect to such transactions2 or 7,b7 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#c7 ,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 7h7 ,independence 7#a7 ,in general ,each member of the ,board of ,directors shall be independent in performing his or her duties4 7#b7 ,independence determination ,in order to be considered independent for purposes of this subsection1 a member of the ,board of ,directors-- 7,a7 may not1 other than in his or her capacity as a member of the ,board of ,directors or any committee thereof-- 7i7 accept any consulting1 advisory1 or other compensatory fee from the ,corporation2 or 7ii7 be a person associated with the ,corporation or with any affiliate of the ,corporation2 and 7,b7 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 7i7 ,administration ,except as may be otherwise provided in this ,act1 the ,board of ,directors shall administer the affairs of the ,corporation fairly and impartially and without discrimination4 7j7 ,voting ,a majority vote of all members of the ,board of ,directors is necessary to resolve all voting issues of the ,corporation4 7k7 ,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 quarter4 7l7 ,quorum #c members of the ,board of ,directors then in office shall constitute a quorum4 7m7 ,bylaws ,a majority of the members of the ,board of ,directors may amend the bylaws of the ,corporation4 #bjc4 ,advisory ,committee 7a7 ,establishment 7#a7 ,in general ,the ,corporation shall establish an ,advisory ,committee for the purpose of advising the ,office of ,consumer and ,market ,access and the ,board of ,directors on developments in the primary and secondary mortgage markets that have material effects on the ongoing mission of the ,corporation4 7#b7 ,duties ,the ,advisory ,committee shall provide advice and recommendations to the ,office of ,consumer and ,market ,access and the ,board of ,directors as to material developments in the following areas3 7,a7 ,housing prices and affordability4 7,b7 ,the effectiveness of consumer protections in the housing market4 7,c7 ,volume and characteristics of eligible mortgage loan originations4 7,d7 ,the condition of the rental housing market4 7,e7 ,small lender participation in the secondary mortgage market4 7,f7 ,access to credit in rural and underserved communities4 7,g7 ,competition among approved entities4 7,h7 ,fair1 equitable1 and nondiscriminatory access to mortgage credit for individuals and communities4 7b7 ,composition and qualifications 7#a7 ,in general ,the ,advisory ,committee shall be composed of #ad members as follows3 7,a7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working with1 non-depository mortgage originators having less than #aj1jjj1jjj1jjj in total assets4 7,b7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working with1 credit unions having less than #aj1jjj1jjj1jjj in total assets4 7,c7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working with1 banks having less than #aj1jjj1jjj1jjj in total assets4 7,d7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience working with1 banks having more than #ejj1jjj1jjj1jjj in total assets4 7,e7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocation1 or regulatory experience working with1 regional banks having more than #aj1jjj1jjj1jjj and less than #ejj1jjj1jjj1jjj in total assets4 7,f7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience with private mortgage insurance4 7,g7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience with securitization4 7,h7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 and practical1 disciplinary1 vocational1 or regulatory experience with investor protection and institutional investors4 7,i7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 or practical1 disciplinary1 or vocational experience with consumer protection4 7,j7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 or practical1 disciplinary1 or vocational experience with policies and programs to support sustainable homeownership4 7,k7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 or practical1 disciplinary1 or vocational experience with multifamily housing development4 7,l7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 or practical1 disciplinary1 or vocational experience with affordable rental housing4 7,m7 #a member who shall have a demonstrated technical1 academic1 or professional understanding of1 or practical1 disciplinary1 or vocational experience with asset management4 7,n7 #a member who shall have a demonstrated professional understanding of and vocational experience with ,state bank1 non-bank1 or insurance regulation4 7#b7 ,experience with rural housing ,of the members of the ,advisory ,committee identified under subparagraphs 7,b7 and 7,c7 of paragraph 7#a71 at least #a shall be required to have practical1 disciplinary1 or vocational experience working in rural areas and with rural borrowers4 7#c7 ,experience with fair lending ,of the members of the ,advisory ,committee identified under paragraph 7#a71 at least #a shall be required to have demonstrated practical1 academic1 disciplinary1 or vocational experience with fair lending practices and policies and programs that promote fair1 equitable1 and nondiscriminatory access to credit in underserved markets4 7c7 ,member selection ,members of the ,advisory ,committee shall be appointed to the ,committee by the ,chairperson1 subject to approval by a majority of the ,board of ,directors4 7d7 ,meetings ,the ,advisory ,committee shall meet no less frequently than once during each calendar quarter4 #bjd4 ,office of the ,inspector ,general 7a7 ,office of ,inspector ,general 7#a7 ,establishment ,on the agency transfer date1 there is established the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation4 7#b7 ,head of office 7,a7 ,in general ,the head of the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall be the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation1 who shall be appointed by the ,president1 by and with the advice and consent of the ,senate1 in accordance with section #c7;a7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app474 7,b7 ,transitional provision ,notwithstanding subparagraph 7,a71 during the period beginning on the agency transfer date and ending on the date on which the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation is confirmed1 the person serving as the ,inspector ,general or the ,acting ,inspector ,general for the ,office of the ,inspector ,general within the ,federal ,housing ,finance ,agency on the date that is #a day prior to the agency transfer date shall act for all purposes as1 and with the full powers of1 the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation4 7#c7 ,office of the ,inspector ,general authorities ,beginning on the agency transfer date1 the authority of the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall include all rights and responsibilities of the ,office of the ,inspector ,general of the ,federal ,housing ,finance ,agency as such rights and responsibilities existed on the date that is #a day prior to the agency transfer date4 7b7 ,provision of property and facilities ,the ,chairperson shall provide the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation with-- 7#a7 appropriate and adequate office space at each central and field office location established by the ,corporation1 together with such equipment1 office supplies1 and communications facilities and services as may be necessary for the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation to operate such offices2 and 7#b7 the necessary maintenance services for-- 7,a7 any office provided under paragraph 7#a72 and 7,b7 the equipment and facilities located in any such office4 7c7 ,hiring of employees1 experts1 and consultants ,notwithstanding paragraphs 7#g7 and 7#h7 of section #f7;a7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app471 the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation may select1 appoint1 and employ such officers and employees as may be necessary-- 7#a7 for carrying out the functions1 powers1 and duties of the ,office of the ,inspector ,general2 and 7#b7 to obtain the temporary or intermittent services of experts or consultants or an organization of experts or consultants1 subject to the applicable laws and regulations that govern such selections1 appointments1 and employment1 and the obtaining of such services1 within the ,corporation4 7d7 ,submission of budget 7#a7 ,in general ,for each fiscal year1 the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall transmit a budget estimate and request for funds to the ,chairperson4 7#b7 ,required content ,the budget request required under paragraph 7#a7 shall-- 7,a7 specify-- 7i7 the aggregate amount of funds requested for such fiscal year for the operations of the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation2 and 7ii7 the amount requested for all training needs1 including a certification from the ,inspector ,general that the amount requested satisfies all training requirements for the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation for that fiscal year2 and 7,b7 specifically-- 7i7 identify and specify any resources necessary to support the ,council of the ,inspectors ,general on ,integrity and ,efficiency2 and 7ii7 justify the need for any resources identified and specified under clause 7i74 7e7 ,amendments to ,inspector ,general ,act of #aigh ,the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7#a7 in section #f7;e77#c71 by inserting ,federal ,mortgage ,insurance ,corporation after ,federal ,emergency ,management ,agency2 7#b7 in section #h;,g7a77#b71 by striking the ,federal ,housing ,finance ,board2 and 7#c7 in section #ab-- 7,a7 in paragraph 7#a71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7,b7 in paragraph 7#b71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7f7 ,effective date ,the amendments made by this section shall take effect on the agency transfer date4 #bje4 ,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 reimbursement from the ,corporation1 and such detail shall be without interruption or loss of civil service status or privilege4 7c7 ,experts and consultants ,the ,corporation may procure the services of experts and consultants as the ,corporation 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 #bjf4 ,reports2 testimony2 audits 7a7 ,reports 7#a7 ,in general ,after the system certification date1 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-- 7,a7 an analysis of-- 7i7 with respect to the ,mortgage ,insurance ,fund established under section #cjc7;e7-- 7,i7 the current financial condition of the ,mortgage ,insurance ,fund2 7,,ii7 the exposure of the ,mortgage ,insurance ,fund to economic conditions and an analysis of any stress tests conducted with respect to the ,fund2 7,,iii7 an estimate of the resources needed for the ,mortgage ,insurance ,fund to achieve the purposes of this ,act2 and 7,,iv7 any findings1 conclusions1 and recommendations for legislative and administrative actions considered appropriate to the future activities of the ,corporation2 7ii7 whether or not the actual reserve ratio of the ,mortgage ,insurance ,fund met-- 7,i7 the reserve ratio set for the preceding #ab-month period2 or 7,,ii7 the reserve ratio goals established in section #cjc7;e77#g72 7iii7 the detailed plan of the ,corporation to ensure that the goals set for the reserve ratio for the ,mortgage ,insurance ,fund are met and maintained for the next #ab-month period2 7iv7 the state of the private label mortgage-backed securities market1 including 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 7v7 how and the extent to which the ,corporation and the ,small ,lender ,mutual established under section #cae7;a77#a7 has fulfilled its obligations to ensure that community and mid-size banks1 credit unions1 and other small lenders have equitable and meaningful access to the secondary mortgage market2 and 7vi7 the report required under section #bjh7;b77#b77;,b72 7,b7 a discussion of the significant problems faced by consumers in shopping for or obtaining mortgage credit or services2 7,c7 a justification of the ,corporation's budget for the preceding #ab-month period2 7,d7 a list of the significant rules and orders adopted by the ,corporation1 as well as other significant initiatives conducted by the ,corporation1 during the preceding #ab-month period and the plan of the ,corporation for rules1 orders1 or other initiatives to be undertaken during the next #ab-month period2 7,e7 a list1 with a brief statement of the issues1 of the public supervisory and enforcement actions to which the ,corporation was a party during the preceding #ab-month period2 7,f7 the actions of the ,corporation taken regarding rules1 orders1 and supervisory actions with respect to covered entities2 and 7,g7 an assessment of significant actions by ,state attorneys general or ,state regulators relating to ,federal law within the ,corporation's jurisdiction4 7b7 ,testimony ,after the system certification date1 the ,chairperson shall appear annually before the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives to provide testimony on the report submitted under subsection 7a74 7c7 ,reports to the ,office of ,management and ,budget 7#a7 ,financial operating plans and forecasts ,the ,corporation shall provide to the ,director of the ,office of ,management and ,budget copies of the-- 7,a7 ,corporation's financial operating plans and forecasts as prepared by the ,corporation in the ordinary course of its operations2 and 7,b7 quarterly reports of the ,corporation's financial condition and results of operations as prepared by the ,corporation in the ordinary course of its operations4 7#b7 ,rule of construction ,this subsection shall not be construed to-- 7,a7 require any obligation on the part of the ,corporation to consult with1 or obtain the consent or approval of1 the ,director of the ,office of ,management and ,budget with respect to any reports1 plans1 forecasts1 or other information referred to in paragraph 7#a72 or 7,b7 authorize any jurisdiction or oversight by the ,director of the ,office of ,management and ,budget over the affairs or operations of the ,corporation4 7d7 ,audit 7#a7 ,annual audit ,the ,comptroller ,general of the ,united ,states shall annually audit-- 7,a7 the financial transactions of the ,corporation2 and 7,b7 the ,mortgage ,insurance ,fund4 7#b7 ,auditing standards ,the audit required under this subsection shall be completed in accordance with the ,united ,states generally accepted government auditing standards as may be prescribed by the ,comptroller ,general4 7#c7 ,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#d7 ,access ,notwithstanding any other provision of law1 upon request and in such reasonable form as the ,comptroller ,general may request1 the ,comptroller ,general shall have access to-- 7,a7 any records1 books1 accounts1 documents1 reports1 files1 papers1 property1 or other information under the control of or used by the ,corporation2 7,b7 any records or other information under the control of a person or entity acting on behalf of or under the authority of the ,corporation1 to the extent that such records or other information are relevant to an audit required under this subsection2 and 7,c7 the officers1 directors1 employees1 financial advisors1 staff1 working groups1 and agents and representatives of the ,corporation 7relating to the activities on behalf of the ,corporation of such agent or representative74 7#e7 ,rule of construction ,all records1 books1 accounts1 documents1 reports1 files1 papers1 property1 or other information referred to in paragraph 7#d7 shall remain in the possession and custody of the ,corporation4 7#f7 ,copies ,the ,comptroller ,general may1 as the ,comptroller ,general considers appropriate1 make and retain copies of the records1 books1 accounts1 documents1 reports1 files1 papers1 property1 or other information to which the ,comptroller ,general is granted access under paragraph 7#c74 7#g7 ,report 7,a7 ,submission to ,congress ,the ,comptroller ,general shall submit to ,congress a report of each annual audit conducted under this subsection not later than six and one-half months following the close of the year covered by such audit4 7,b7 ,required content ,the report required under subparagraph 7,a7 shall-- 7i7 set forth the scope of the audit2 and 7ii7 include-- 7,i7 the statement of assets and liabilities1 as well as any surplus or deficit2 7,,ii7 the statement of income and expenses2 7,,iii7 the statement of sources and application of funds2 7,,iv7 such comments and information as the ,comptroller ,general may deem necessary to inform ,congress of the financial operations and condition of the ,corporation and the ,mortgage ,insurance ,fund1 together with such recommendations with respect thereto as the ,comptroller ,general may deem advisable2 and 7,v7 a description of any program1 expenditure1 or other financial transaction or undertaking observed in the course of the audit1 which1 in the opinion of the ,comptroller ,general1 has been carried on or made without authority of law4 7,c7 ,copies ,a copy of each report required under subparagraph 7,a7 shall be furnished to the ,president and to the ,chairperson at the time such report is submitted to ,congress4 7#h7 ,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 #faja71 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 shall transfer to the ,comptroller ,general from funds available 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 ,united ,states ,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 #bjg4 ,specific offices 7a7 ,establishment 7#a7 ,general authority ,the ,corporation-- 7,a7 shall establish within the ,corporation any office required to be established by this ,act2 7,b7 may establish such other offices or suboffices as are necessary and proper for the functioning of the ,corporation2 and 7,c7 may eliminate or consolidate any office or suboffice established under subparagraph 7,b74 7#b7 ,appointments ,except as may otherwise be specifically provided1 the head of any office established pursuant to paragraph 7#a7 shall be appointed by the ,board of ,directors4 7b7 ,underwriting ,the ,corporation shall establish an ,office of ,underwriting in the ,corporation1 whose functions shall include ensuring that eligible single-family mortgage loans that collateralize single-family covered securities insured under this ,act comply with the requirements of this ,act and minimize risk to the ,mortgage ,insurance ,fund4 7c7 ,securitization ,the ,corporation shall establish an ,office of ,securitization in the ,corporation1 whose functions shall include-- 7#a7 overseeing and supervising the ,securitization ,platform established under part ,i of subtitle ,c of title ,,iii2 and 7#b7 ensuring that small mortgage lenders have equitable access to-- 7,a7 the ,securitization ,platform1 including through the development and facilitation of options such as multi-guarantor pools and multi-lender pools of eligible single-family mortgage loans to be securitized and issued as single-family covered securities through such ,platform2 and 7,b7 any small lender mutual established or approved under section #cae4 7d7 ,federal ,home ,loan ,banks 7#a7 ,in general ,upon the system certification date1 the ,corporation shall establish an ,office of ,federal ,home ,loan ,bank ,supervision in the ,corporation1 whose functions shall include-- 7,a7 overseeing1 coordinating1 and supervising the ,federal ,home ,loan ,banks and the ,federal ,home ,loan ,bank ,system2 7,b7 supervising any authorized subsidiary of #a or more ,federal ,home ,loan ,banks that is an approved aggregator pursuant to section #cab7m71 including with respect to the capitalization of any such subsidiary2 7,c7 serving as the central point of coordination within the ,corporation with respect to any regulations or regulatory actions relating to the role of a ,federal ,home ,loan ,bank1 or subsidiary or joint office thereof1 as a covered entity2 and 7,d7 monitoring whether any regulation or regulatory action taken with respect to a ,federal ,home ,loan ,bank1 or subsidiary or joint office thereof1 approved under section #cab in its role as a covered entity does not adversely impact the traditional liquidity and advance mission of the ,federal ,home ,loan ,banks and ,federal ,home ,loan ,bank ,system4 7#b7 ,transfer of functions ,effective on the system certification date1 there are transferred to the ,office of ,federal ,home ,loan ,bank ,supervision in the ,corporation all functions of the ,federal ,housing ,finance ,agency of the ,corporation 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 of the ,corporation relating to the ,federal ,home ,loan ,banks and the ,federal ,home ,loan ,bank ,system4 #bjh4 ,office of ,consumer and ,market ,access 7a7 ,establishment ,the ,corporation shall establish an ,office of ,consumer and ,market ,access in the ,corporation1 whose functions shall include the responsibilities set forth under subsection 7b74 7b7 ,responsibilities 7#a7 ,administering the ,market ,access ,fund ,the ,office of ,consumer and ,market ,access shall administer the ,market ,access ,fund established under section #ejd4 7#b7 ,monitoring1 coordinating1 and facilitating the needs of underserved markets 7,a7 ,in general ,the ,office of ,consumer and ,market ,access shall-- 7i7 monitor1 on a macro level1 the national1 regional1 and area single-family and multifamily housing finance markets to identify underserved markets1 communities1 and consumers in accordance with the market segments identified and defined under section #baj2 7ii7 coordinate with ,federal and ,state agencies regarding existing policies and initiatives that address-- 7,i7 the housing needs of underserved markets1 communities1 and consumers2 and 7,,ii7 the affordable housing needs of markets1 communities1 and consumers2 and 7iii7 provide information on business practices and technical assistance to market participants regarding communities identified as underserved with regards to addressing the housing needs of consumers in that community4 7,b7 ,annual state of covered securities market report 7i7 ,in general ,the ,office of ,consumer and ,market ,access shall1 on an annual basis1 submit a report to ,congress on the state of the covered securities market1 and make such report available to the public4 7ii7 ,required content ,the report required under clause 7i7 shall include-- 7,i7 an assessment of the extent to which the covered securities market is providing liquidity to eligible borrowers in all segments of the mortgage origination primary market1 including underserved segments identified and defined by the ,corporation under section #baj2 and 7,,ii7 recommendations for such legislative1 regulatory1 or administrative actions as may be necessary to address any deficiencies in the availability of mortgage credit in any market or region identified pursuant to clause 7i7 via existing ,federal programs or the covered securities market4 7iii7 ,reliance on public data ,in preparing each report required under this subparagraph1 the ,office of ,consumer and ,market ,access-- 7,i7 shall use1 to the maximum extent practicable1 publicly available data and data otherwise collected under this ,act2 and 7,,ii7 shall not include or review any confidential information or information collected by the ,corporation as part of its supervisory or examination authorities that is confidential4 7,c7 ,incentive study ,the ,office of ,consumer and ,market ,access shall1 on a biennial basis1 conduct a study on incentives to encourage mortgage lenders and mortgage originators to address the housing needs of underserved markets and communities4 7,d7 ,inclusion in annual report ,the ,corporation shall include the report required in subparagraph 7,b7 and the study required in subparagraph 7,c7 in the annual report required under section #bjf4 7,e7 ,consultation ,the ,office of ,consumer and ,market ,access shall consult with the ,federal ,home ,loan ,banks and any small lender mutual established or approved under section #cae on approaches1 methods1 and practices designed to address the housing needs of underserved markets and communities4 #bji4 ,office of ,multifamily ,housing ,the ,corporation shall establish an ,office of ,multifamily ,housing in the ,corporation1 whose functions shall include-- 7#a7 developing1 adopting1 and publishing specific eligibility criteria to ensure that eligible multifamily mortgage loans that collateralize multifamily covered securities insured under this ,act comply with the requirements of this ,act2 and 7#b7 performing any other activity relating to the multifamily housing finance system that the ,corporation may determine appropriate to fulfill the requirements of this ,act4 #baj4 ,equitable access for lenders and borrowers 7a7 ,equitable access in underserved market segments 7#a7 ,in general ,subject to subsection 7b71 the ,corporation shall seek to support the primary mortgage market for eligible mortgage loans on an equitable1 nondiscriminatory1 and non-exclusionary basis to help ensure that all eligible borrowers have access to mortgage credit1 including underserved segments of the primary mortgage market as identified and defined by the ,corporation under paragraph 7#b74 7#b7 ,underserved market segments ,the ,corporation shall1 by regulation1 identify and define not more than #h segments of the primary mortgage market in which lenders and eligible borrowers have been determined to lack equitable access to the housing finance system facilitated by the ,corporation4 ,the regulation required under this paragraph shall set forth the criteria by which the ,corporation identified such underserved market segments4 ,the identified underserved market segments required to be identified and defined under this paragraph may include the following3 7,a7 ,historically underserved communities1 including rural and urban areas4 7,b7 ,manufactured housing4 7,c7 ,small balance loans4 7,d7 ,low- and moderate-income creditworthy borrowers4 7,e7 ,preservation of existing housing stock created by ,state or ,federal laws4 7,f7 ,affordable rental housing4 7#c7 ,reports on serving underserved market segments 7,a7 ,annual reports ,the ,corporation shall require that each approved guarantor and approved aggregator engaged in a covered guarantee transaction or in a covered market-based risk-sharing transaction submit on annual basis a public report describing the actions taken by such approved guarantor or approved aggregator during the year1 consistent with its business judgment1 to provide credit to the underserved market segments identified and defined by the ,corporation pursuant to this subsection1 including corporate practices designed to serve such identified market segments4 ,the annual report required under this subparagraph shall be approved by the board of directors and signed by the chief executive officer of the approved guarantor or approved aggregator submitting the report4 7,b7 ,report template ,the ,corporation may establish an optional template for the annual report required under subparagraph 7,a74 7,c7 ,report not subject to prior review or approval ,an annual report required under subparagraph 7,a7 shall not be subject to prior review or approval by the ,corporation4 7,d7 ,coordination with other ,federal and ,state agencies ,the ,corporation shall1 in establishing the requirements for the annual report required under subparagraph 7,a71 coordinate with other ,federal and ,state agencies1 as necessary1 to reduce duplicative reporting requirements4 7b7 ,limitations 7#a7 ,limitation on use of authorities and information ,in carrying out this title1 the ,corporation shall not interfere with the exercise of business judgment of an approved aggregator or approved guarantor in determining which specific mortgage loans to include in a covered guarantee transaction or a covered market-based risk-sharing transaction1 including through the ,corporation's use of-- 7,a7 the approval process for a guarantor or an aggregator established under subtitle ,b of title ,,iii2 7,b7 its general supervisory and examination authorities under subtitle ,b of title ,,iii2 or 7,c7 information collected under this section1 section #eja1 or section #bjh4 7#b7 ,rule of construction ,nothing in this subsection shall prevent the imposition of the variable incentive-based fees authorized in section #eja nor shall it exempt covered entities from compliance with the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq47 and the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq47 as required in section #djh7;d74 7#c7 ,consistency with safety and soundness ,the ,corporation shall take appropriate measures designed to ensure that the requirements under this section are implemented in a manner consistent with safety and soundness principles4 #baa4 ,office of ,taxpayer ,protection 7a7 ,establishment ,the ,corporation shall establish an ,office of ,taxpayer ,protection whose functions shall include the responsibilities set forth under subsection 7b74 7b7 ,responsibilities 7#a7 ,study on market concentration and the impact of the ,,fmic guarantee ,the ,office of ,taxpayer ,protection shall1 on a semi-annual basis1 conduct a study and 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 report on-- 7,a7 market concentration in the secondary mortgage markets1 including the exposure of the ,mortgage ,insurance ,fund to the top #aj largest approved aggregators and approved guarantors1 as measured by the total outstanding principal balance at origination of eligible single-family mortgage loans collateralizing single-family covered securities for which such aggregator or guarantor has obtained insurance provided under this ,act in the previous #f months2 7,b7 the general state of underwriting standards in the origination of eligible single-family mortgage loans and the effect of insurance provided under this ,act on such underwriting standards2 7,c7 whether the insurance provided under this ,act produces a subsidy to any approved entity or approved entities2 7,d7 a comparison of the treatment in the secondary mortgage markets of mortgage-backed securities guaranteed by the ,government ,national ,mortgage ,association and single-family covered securities insured under this ,act1 which shall include-- 7i7 a discussion of the characteristics of-- 7,i7 mortgage loans collateralizing mortgage-backed securities guaranteed by the ,government ,national ,mortgage ,association2 and 7,,ii7 eligible single-family mortgage loans collateralizing single-family covered securities insured under this ,act2 and 7ii7 an analysis of any actions taken in the secondary mortgage markets to manipulate the guarantee provided by the ,government ,national ,mortgage ,association and the insurance provided under this ,act to the advantage of the secondary mortgage markets2 and 7,e7 what steps the ,corporation has taken to minimize any potential long-term costs to the taxpayers and the ,mortgage ,insurance ,fund relating to risks identified in subparagraphs 7,a7 through 7,d74 7#b7 ,annual report on taxpayer protection and the exposure of the ,mortgage ,insurance ,fund 7,a7 ,in general ,the ,office of ,taxpayer ,protection shall1 on an annual basis1 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 containing the information required under subparagraph 7,b74 7,b7 ,required content ,the report required under subparagraph 7,a7 shall-- 7i7 include an analysis of the adequacy of-- 7,i7 the first loss position required under this ,act1 including the sufficiency of any permissible risk-sharing or risk mitigation permitted as a substitute for equity capital intended to cover the initial credit losses on a covered security prior to use of any amounts in the ,mortgage ,insurance ,fund1 the ability of the first loss position to absorb credit loss on covered securities1 and to protect taxpayers2 and 7,,ii7 the performance of eligible single-family mortgage loans collateralizing single-family covered securities insured under this ,act based upon current underwriting standards and how that performance differs from the performance of noneligible mortgage loans based upon the underwriting standards for such noneligible mortgage loans1 including with respect to-- 7aa7 debt to income ratio2 7bb7 loan to value ratios2 7cc7 credit history2 7dd7 loan documentation2 7ee7 occupancy status2 7ff7 credit enhancements2 7gg7 housing counseling by a ,,hud-approved housing counseling agency2 7hh7 loan payments2 7ii7 the purpose of the loan1 such as to refinance or purchase a home2 7jj7 the type of loan product1 such as a #cj-year fixed interest rate mortgage loan1 a #ae-year fixed interest rate mortgage loan1 or an adjustable interest rate mortgage loan2 7kk7 the mortgage loan origination channel2 and 7ll7 such other underwriting criteria that would be useful to the ,director of ,taxpayer ,protection2 and 7ii7 provide recommendations for such legislative1 regulatory1 or administrative actions to-- 7,i7 address any need to further limit overexposure of the ,mortgage ,insurance ,fund to any #a approved entity or business practice2 7,,ii7 foster and encourage a robust private secondary mortgage market for noneligible mortgage loans and mortgage-backed securities that are not guaranteed by the ,government ,national ,mortgage ,association2 and 7,,iii7 assist the ,corporation in protecting taxpayers1 including a recommendation as to whether a counter-cyclical increase of the reserve ratio of the ,mortgage ,insurance ,fund or of the capital standards required of individual approved guarantors is necessary to protect taxpayers4 7#c7 ,annual report on system-wide leverage ,the ,office of ,taxpayer ,protection shall1 on an annual basis1 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 report on system-wide leverage in the secondary mortgage market4 7#d7 ,annual report on early payment defaults ,the ,office of ,taxpayer ,protection shall1 on an annual basis1 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 report on early payment defaults on eligible single-family mortgage loans for the preceding year1 which shall include any eligible single-family mortgage loan that becomes delinquent or that is in default within #bd months of the origination of the loan4 7#e7 ,inclusion in annual report ,the ,corporation shall include the reports required under paragraphs 7#b7 and 7#c7 in the annual report required under section #bjf4 7#f7 ,reliance on public data ,in preparing each report required under this section1 the ,office of ,taxpayer ,protection-- 7,a7 shall use1 to the maximum extent practicable1 publicly available data and data otherwise collected under this ,act2 and 7,b7 shall not include or review any confidential information or information collected by the ,corporation as part of its supervisory or examination authorities that is confidential4 ,,iii ,duties and responsibilities of the ,,fmic ,a ,duties and authorities #cja4 ,duties and responsibilities 7a7 ,duties ,the principal duties of the ,corporation shall be to-- 7#a7 carry out this ,act in a manner that fulfills the purposes of the ,corporation as described in section #bja7;b72 7#b7 minimize any potential long-term cost to the taxpayer1 including through the use of the ,mortgage ,insurance ,fund1 the assessment of insurance fees1 and the approval of approved entities and credit risk-sharing mechanisms2 7#c7 facilitate fair access to the secondary mortgage market for small mortgage lenders originating eligible single-family and multifamily mortgage loans1 including through the establishment1 approval1 and oversight of small lender mutuals2 7#d7 ensure integrity and discipline in the mortgage market1 particularly by monitoring the safety and soundness of regulated entities and approved entities2 7#e7 ensure that approved entities maintain the capacity to further the requirements of the ,corporation pursuant to section #bja7;b77#e7 and that approved guarantors1 approved multifamily guarantors1 and approved aggregators are in compliance with section #baj7;a77#c72 7#f7 promote the standardization of the secondary mortgage market through the use of uniform securitization agreements1 servicing agreements1 and the ,securitization ,platform2 7#g7 increase transparency in single-family and multifamily mortgage markets1 including through the ,national ,mortgage ,database2 and 7#h7 ensure continued1 widespread availability of an affordable1 long-term1 fixed rate1 prepayable mortgage1 such as a #cj-year fixed rate mortgage4 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 in this ,act4 7c7 ,delegation of authority ,the ,board of ,directors may delegate to any duly authorized employee or representative any power vested in the ,corporation by law4 #cjb4 ,standards for credit risk-sharing mechanisms 7a7 ,approval 7#a7 ,authority ,the ,corporation shall develop1 adopt1 and publish1 after notice and comment1 standards for the consideration and1 as appropriate1 the approval of credit risk-sharing mechanisms that shall require that the first loss position of private market holders on single-family covered securities is-- 7,a7 adequate to cover losses that might be incurred in a period of economic stress1 including national and regional home price declines1 such as those observed during moderate to severe recessions in the ,united ,states2 and 7,b7 not less than #aj percent of the principal or face value of the single-family covered security at the time of issuance4 7#b7 ,fraud prohibition 7,a7 ,prohibition ,it shall be unlawful for any person to intentionally create and issue any instrument or security as a first loss position on a single-family covered security that such person knows or in the exercise of reasonable care should have known does not satisfy the requirements of this section4 7,b7 ,penalty ,violations of subparagraph 7,a7 shall be punishable in accordance with section #acdc of title #ah1 ,united ,states ,code4 7b7 ,approval of credit risk-sharing mechanisms 7#a7 ,considerations for approval of various mechanisms ,in approving credit risk-sharing mechanisms under subsection 7a71 the ,corporation shall-- 7,a7 consider proposals that include credit-linked structures or other instruments that are designed to absorb credit losses on single-family covered securities2 7,b7 consider any credit risk-sharing mechanisms undertaken by the enterprises2 7,c7 ensure that the first loss position is fully funded to meet the requirements of subsection 7a77#a77;,b72 7,d7 ensure that each type of proposed mechanism-- 7i7 enables the ,corporation to verify that the first loss position is fully funded2 7ii7 minimizes any potential long-term cost to the taxpayer2 7iii7 accommodates the availability of mortgage credit on equal and transparent terms in the secondary mortgage market for-- 7,i7 small mortgage lenders2 and 7,,ii7 lenders from all geographic locations1 including rural locations2 7iv7 allows for broad availability of mortgage credit and secondary mortgage market financing through fluctuations in the business cycle for eligible single-family lending across all-- 7,i7 regions2 7,,ii7 localities2 7,,iii7 institutions2 7,,iv7 property types1 including housing serving renters2 and 7,v7 eligible borrowers2 7v7 fulfills the requirements under section #cad with respect to loan modifications and foreclosure prevention2 7vi7 does not prevent the securitization of refinanced or modified eligible single-family mortgage loans within single-family covered securities during a period when the authority under section #cje7;i7 is exercised2 7vii7 does not diminish market liquidity and resiliency2 7viii7 does not prevent the refinancing of underwater eligible single-family mortgage loans2 and 7ix7 does not present an unnecessary risk to the ,mortgage ,insurance ,fund2 7,e7 consider whether the approval of any credit risk-sharing mechanism will impair the operation and liquidity of forward market executions for eligible single-family mortgage loans and single-family covered securities1 such as the ,to-,be-,announced market1 taking into consideration other risk-sharing options available to market participants2 and 7,f7 take necessary steps to prevent abuse and deceptive practices in the use of the credit risk-sharing mechanisms1 including by-- 7i7 creating appropriate standards relating to-- 7,i7 the vintages or categories of covered securities that are referenced by a credit risk-sharing mechanism2 7,,ii7 standardization of the terms and features of credit risk-sharing structures2 and 7,,iii7 measures that prevent the duplicative sale by a guarantor of the same mortgage credit risk in the same pool of eligible single-family mortgage loans2 and 7ii7 requiring additional disclosures and affirmative representations that must be made by entities that create and issue credit risk-sharing mechanisms4 7#b7 ,notice and publication ,the ,corporation shall-- 7,a7 provide prompt notice to any person seeking approval for a credit risk-sharing mechanism of the approval or denial of that credit risk-sharing mechanism2 and 7,b7 make available detailed information regarding approved mechanisms on the website of the ,corporation4 7#c7 ,review of approved credit risk-sharing mechanisms 7,a7 ,authority to suspend ,the ,corporation may1 from time to time and in its discretion-- 7i7 conduct reviews of approved credit risk-sharing mechanisms to determine whether such credit risk-sharing mechanisms continue to satisfy the considerations for approval under paragraph 7#a72 7ii7 assess the functioning of the forward market for eligible single-family mortgage loans and single-family covered securities1 including the ,to-,be-,announced market1 to determine whether any approved credit risk-sharing mechanism has adversely affected the liquidity or resiliency of such market2 and 7iii7 suspend the approval of-- 7,i7 any credit risk-sharing mechanism that it determines does not satisfy the considerations for approval under paragraph 7#a72 or 7,,ii7 any credit risk-sharing mechanism that it determines has adversely affected the liquidity or resiliency of the forward market for eligible single-family mortgage loans and single-family covered securities1 including the ,to-,be-,announced market4 7,b7 ,reconsideration 7i7 ,development of expedited process ,the ,corporation shall develop an expedited process for the reinstatement of the approval of any credit risk-sharing mechanism that is suspended under subparagraph 7,a77iii74 7ii7 ,revision of mechanism ,if a credit risk-sharing mechanism is suspended under subparagraph 7,a77iii71 the credit risk-sharing mechanism may be adapted or revised1 as necessary1 for reconsideration for reinstatement of the approval of the credit risk-sharing mechanism under the expedited process developed under clause 7i74 7,c7 ,no effect on existing mechanisms ,the suspension of the approval of any credit risk-sharing mechanism under subparagraph 7,a77iii7 shall have no effect on the status of single-family covered securities and related instruments using the credit risk-sharing mechanism that were issued prior to the suspension4 7#d7 ,additional credit risk-sharing mechanisms 7,a7 ,approval ,in addition to credit risk-sharing mechanisms approved by the ,corporation under subsection 7a71 the ,corporation shall consider and may approve additional fully-funded credit risk-sharing mechanisms that-- 7i7 may be employed by an approved guarantor to manage the credit risk relating to guarantees provided for single-family covered securities2 and 7ii7 do not represent the first loss position with respect to single-family covered securities4 7,b7 ,rule of construction ,nothing in this paragraph shall be construed to limit an approved guarantor from engaging in other forms of risk-sharing or risk mitigation using mechanisms that have not been considered or approved by the ,corporation4 7#e7 ,reports 7,a7 ,in general ,not later than #a year after the agency transfer date1 and annually thereafter until the system certification date1 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 discusses each credit risk-sharing mechanism that the ,chairperson considered in carrying out the requirements of this section2 7ii7 describes how the operation and execution of each approved credit risk-sharing mechanism fulfills the requirements of this section2 and 7iii7 explains how the ,corporation arrived at the determinations made under clause 7ii71 including a discussion of the data considered4 7,b7 ,subsequent reports ,on the system certification date and annually thereafter1 the ,corporation shall publish in the ,federal ,register a list of the credit risk-sharing mechanisms that the ,corporation approved or suspended1 addressing the identical concerns set forth under clauses 7i7 through 7iii7 of subparagraph 7,a7 and1 with respect to any suspension1 the considerations under paragraph 7#a7 that are no longer satisfied4 7,c7 ,multifamily reports ,the ,corporation shall include in the reports prepared under subparagraphs 7,a7 and 7,b7 a description of the credit risk-sharing mechanisms approved by the ,corporation for multifamily guarantors pursuant to section #gjc4 7c7 ,collateral diversification standards ,the ,corporation shall establish standards1 after notice and comment1 for the appropriate minimum level of diversification for eligible single-family mortgage loans that collateralize single-family covered securities that are issued subject to an approved credit risk-sharing mechanism in order to reduce the credit risk such single-family covered securities could pose to the ,mortgage ,insurance ,fund4 7d7 ,rule of construction ,nothing in this section shall be construed to require the ,corporation to approve any credit risk-sharing mechanism4 7e7 ,applicability of the ,commodity ,exchange ,act and ,securities ,act of #aicc 7#a7 ,exemption from the ,commodity ,exchange ,act2 prior consultation required 7,a7 ,exemption ,no counterparty that enters into a swap1 as that term is defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a71 for purposes of structuring any credit risk-sharing mechanism that is approved by the ,corporation pursuant to this section1 which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any single-family covered security insured in accordance with section #cjc or section #cje1 shall be deemed1 by reason of such swap transaction1 to be a commodity pool1 as that term is defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a74 7,b7 ,prior consultation required ,before approving any credit risk-sharing mechanism that would be exempt from the ,commodity ,exchange ,act pursuant to subparagraph 7,a71 the ,corporation shall consult with the ,commodity ,futures ,trading ,commission4 7#b7 ,exemption from section #bg;,b of the ,securities ,act of #aicc2 prior consultation required 7,a7 ,exemption ,any credit risk-sharing mechanism that is approved by the ,corporation pursuant to this section1 which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any single-family covered security insured in accordance with section #cjc or section #cje1 shall be exempt from section #bg;,b of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggz-#b;a74 7,b7 ,prior consultation required ,before approving any credit risk-sharing mechanism that would be exempt from section #bg;,b of the ,securities ,act of #aicc pursuant to subparagraph 7,a71 the ,corporation shall consult with the ,securities and ,exchange ,commission4 #cjc4 ,insurance2 ,mortgage ,insurance ,fund 7a7 ,authority ,the ,corporation shall1 in exchange for a fee in accordance with subsection 7e77#h71 insure the payment of principal and interest on a covered security with respect to any failure to pay on such covered security subject to the requirements of this section4 7b7 ,terms and conditions 7#a7 ,in general ,the ,corporation shall1 by regulation1 establish terms and conditions for the provision of insurance under this ,act4 7#b7 ,single-family ,the terms and conditions required to be established under paragraph 7#a7 shall1 for single-family covered securities1 include terms and conditions that ensure-- 7,a7 eligible single-family mortgage loans collateralizing single-family covered securities have been delivered to the ,platform2 and 7,b7 with respect to each single-family covered security1 either-- 7i7 private market holders have taken a first loss position that satisfies the requirements of section #cjb2 or 7ii7 an approved guarantor has provided a guarantee in satisfaction of the requirements of section #caa4 7#c7 ,multifamily ,the terms and conditions required to be established under paragraph 7#a7 shall1 for multifamily covered securities1 include terms and conditions that ensure1 with respect to each multifamily covered security1 that an approved multifamily guarantor has provided a guarantee in satisfaction of the requirements of section #gjc4 7c7 ,cash payments2 continued operations ,the ,corporation shall facilitate the timely and unconditional payment of principal and interest on covered securities insured under this ,act by paying1 in cash when due1 any shortfalls in principal and interest due on the covered security1 and continuing to charge and collect any fees for the provision of insurance 7in accordance with subsection 7e77#h77 relating to the covered security in the event of any losses that may be incurred 7#a7 in excess of a payment default on the covered security that exceeds the first loss position assumed by a private market holder1 7#b7 in the case of a covered security that is guaranteed by an approved guarantor or approved multifamily guarantor as a result of the insolvency of the guarantor1 or 7#c7 upon the failure of the servicer or guarantor to transfer to the bond administrator for the covered security funds in amounts necessary to make timely payment of principal and interest due on the covered security4 7d7 ,cost recovery ,in the event the ,corporation makes a payment on a covered security based on subsection 7c77#c71 the ,corporation shall recover such amount paid1 and reasonable costs and expenses1 from the servicer or guarantor4 7e7 ,mortgage ,insurance ,fund 7#a7 ,establishment ,on the agency transfer date1 there shall be established the ,mortgage ,insurance ,fund1 which the ,corporation shall-- 7,a7 maintain and administer2 7,b7 use to carry out the insurance functions authorized under this ,act1 including any function or action authorized under section #cje2 and 7,c7 invest in accordance with the requirements of paragraph 7#aj74 7#b7 ,deposits ,the ,mortgage ,insurance ,fund shall be credited with any-- 7,a7 fee amounts required to be deposited in the ,fund under this section2 7,b7 amounts earned on investments pursuant to paragraph 7#aj72 7,c7 assessment amounts authorized to be deposited into the ,fund under section #dje7;b72 and 7,d7 assessment amounts required to be deposited into the ,fund under section #fjh7;c74 7#c7 ,fees for single-family and multifamily covered securities ,in determining the amount of any fee to be charged by the ,corporation under this section1 the ,corporation shall charge a separate fee for single-family covered securities and multifamily covered securities1 as appropriate for each asset class4 7#d7 ,separate accounting required ,the ,corporation shall keep and maintain separate accounting for deposits in the ,mortgage ,insurance ,fund related to fee amounts charged and collected for the insurance of single-family covered securities and multifamily covered securities4 7#e7 ,fiduciary responsibility ,the ,corporation has the responsibility to ensure that the ,mortgage ,insurance ,fund remains financially sound4 7#f7 ,use and treatment of amounts in the ,fund 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 ,act1 for the expenses of the ,corporation1 and for-- 7i7 compensation of the employees of the ,corporation2 7ii7 purposes of-- 7,i7 funding the ,,csp2 and 7,,ii7 establishing the ,securitization ,platform under section #cba1 multifamily subsidiaries under section #gja1 the initial ,small ,lender ,mutual under section #cae1 and any other entity authorized by this ,act that facilitates an orderly transition to the new housing finance system2 and 7iii7 covering all other expenses of the ,corporation4 7,b7 ,prohibition ,the ,mortgage ,insurance ,fund may not be used or otherwise diverted to cover any other expense of the ,federal ,government4 7,c7 ,exemption from apportionment ,notwithstanding any other provision of law1 amounts in the ,mortgage ,insurance ,fund shall not be subject to apportionment for the purposes of chapter #ae of title #ca1 ,united ,states ,code1 or under any other authority4 7,d7 ,not ,government funds ,amounts in the ,mortgage ,insurance ,fund shall not be construed to be ,government or public funds or appropriated money4 7#g7 ,reserve ratio goals for ,mortgage ,insurance ,fund ,the ,corporation shall-- 7,a7 endeavor to ensure that the ,mortgage ,insurance ,fund attains a reserve ratio-- 7i7 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 system certification date2 and 7ii7 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 system certification date2 and 7,b7 after the expiration of the period referred to in subparagraph 7,a77ii71 endeavor to ensure that the ,mortgage ,insurance ,fund maintains a reserve ratio of not less than #b4ej percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title4 7#h7 ,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-- 7i7 achieve and maintain the reserve ratio goals established under paragraph 7#g72 and 7ii7 fund the operations of the ,corporation4 7,b7 ,fee considerations ,in establishing fees under subparagraph 7,a71 the ,corporation shall consider-- 7i7 the expected operating expenses of the ,mortgage ,insurance ,fund2 7ii7 the risk of loss to the ,mortgage ,insurance ,fund in carrying out the requirements under this ,act2 7iii7 the risk presented by1 and the loss absorption capacity of1 the credit risk-sharing mechanism or guarantee that is provided on the pool of eligible mortgage loans collateralizing the covered security to be insured under this title2 7iv7 economic conditions generally affecting the mortgage markets2 7v7 the extent to which the reserve ratio of the ,mortgage ,insurance ,fund met-- 7,i7 the reserve ratio set for the preceding #ab-month period2 or 7,,ii7 the reserve ratio goals established in paragraph 7#g72 and 7vi7 any other factors that the ,corporation determines appropriate4 7,c7 ,fee uniformity ,the fee required under subparagraph 7,a7-- 7i7 except as provided in subparagraph 7,d71 shall be set at a uniform amount applicable to all institutions purchasing insurance under this title2 7ii7 may not vary-- 7,i7 by geographic location2 or 7,,ii7 by the size of the institution to which the fee is charged2 and 7iii7 may not be based on the volume of insurance to be purchased4 7,d7 ,separate and distinct fees based on credit risk-sharing mechanisms ,nothing in subparagraph 7,c7 shall prohibit or be construed to prohibit the ,corporation from charging separate and distinct fees under this paragraph based on the type or form of credit risk-sharing mechanism applicable to the covered security to be insured under this title4 7,e7 ,deposit into ,mortgage ,insurance ,fund ,any fee amounts collected under this paragraph shall be deposited in the ,mortgage ,insurance ,fund4 7#i7 ,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 7#aj7 ,investments 7,a7 ,in general ,the ,board of ,directors may request the ,secretary of the ,treasury to invest such portion of amounts in the ,mortgage ,insurance ,fund that1 in the judgment of the ,board1 is not required to meet the current needs of the ,corporation4 7,b7 ,eligible investments ,pursuant to a request under subparagraph 7,a71 the ,secretary of the ,treasury shall invest such portions in obligations of the ,united ,states with maturities suitable to the needs of the ,corporation1 as determined by the ,board1 and bearing interest at a rate determined by the ,secretary of the ,treasury1 taking into consideration1 at the time of the investment1 market yields on outstanding marketable obligations of the ,united ,states of comparable maturity4 7,c7 ,prohibited investments ,amounts in the ,mortgage ,insurance ,fund may not be invested in any-- 7i7 covered security insured under this title2 or 7ii7 mortgage-backed security issued by the enterprises4 7f7 ,mandatory loss review by the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation 7#a7 ,in general ,if the ,mortgage ,insurance ,fund is required to make any payment of principal or interest1 or both1 on a covered security with respect to losses incurred on such covered security to any holder of such covered security1 the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall-- 7,a7 review and make a written report to the ,corporation regarding the decision of the ,corporation to insure such covered security and the supervision by the ,corporation of all market participants involved in the creation1 issuance1 servicing1 guarantee of1 or insurance of such covered security1 which shall-- 7i7 ascertain why the covered security resulted in a loss to the ,mortgage ,insurance ,fund2 and 7ii7 make recommendations for preventing any such loss in the future2 and 7,b7 provide a copy of the report required under subparagraph 7,a7 to-- 7i7 the ,comptroller ,general of the ,united ,states2 7ii7 the appropriate ,federal banking agency or ,state regulatory authority1 as appropriate1 of any market participant involved in the creation1 issuance1 servicing1 guarantee of1 or insurance of such covered security2 and 7iii7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7#b7 ,deadline for report ,the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall comply with paragraph 7#a7 as expeditiously as possible1 but in no event shall the report required under paragraph 7#a7 be submitted later than #f months after the date on which the loss was incurred4 7#c7 ,public disclosure required 7,a7 ,in general ,the ,corporation shall disclose any report on losses required under this subsection1 upon request under section #eeb of title #e1 ,united ,states ,code1 without excising-- 7i7 any portion under section #eeb7;b77#e7 of that title2 or 7ii7 any information under paragraph 7#d7 7other than trade secrets7 or paragraph 7#h7 of section #eeb7;b7 of that title4 7,b7 ,exception ,subparagraph 7,a7 does not require the ,corporation to disclose the name of any holder of the covered security1 or information from which the identity of such a person could reasonably be ascertained4 7#d7 ,review by ,comptroller ,general ,the ,comptroller ,general of the ,united ,states shall1 under such conditions as the ,comptroller ,general determines to be appropriate1 review any report made under paragraph 7#a7 and recommend to the ,corporation improvements in the supervision of market participants4 #cjd4 ,loan limits2 ,housing ,price ,index 7a7 ,establishment ,the ,corporation shall establish limitations governing the maximum original principal obligation of eligible single-family mortgage loans that may collateralize a covered security to be insured by the ,corporation under this title4 7b7 ,calculation of amount ,the limitation set forth under subsection 7a7 shall be calculated with respect to the total original principal obligation of the eligible single-family mortgage loan and not merely with respect to the amount insured by the ,corporation4 7c7 ,maximum limits 7#a7 ,in general ,except as provided in paragraph 7#b71 the maximum limitation amount under this subsection shall not exceed #dag1jjj for a mortgage loan secured by a #a-;family residence1 for a mortgage loan secured by a #b-;family residence the limit shall equal #abh percent of the limit for a mortgage loan secured by a #a-;family residence1 for a mortgage loan secured by a #c-;family residence the limit shall equal #aee percent of the limit for a mortgage loan secured by a #a-;family residence1 and for a mortgage loan secured by a #d-;family residence the limit shall equal #aib percent of the limit for a mortgage loan secured by a #a-;family residence1 except that such maximum limitations shall be adjusted effective ,january #a of each year beginning after the effective date 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 by the ,chairperson pursuant to subsection 7d74 ,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 upward 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 7#b7 ,high-cost area limits ,the limitations set forth in paragraph 7#a7 may be increased by not more than #ej percent with respect to properties located in ,alaska1 ,guam1 ,hawaii1 and the ,virgin ,islands4 ,such foregoing limitations 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 for such size residence set forth under paragraph 7#a71 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 residence4 7d7 ,housing ,price ,index 7#a7 ,national ,index ,the ,corporation shall establish and maintain a method of assessing a national average single-family house price for use in calculating the loan limits for eligible single-family mortgage loans under subsection 7c71 and other averages as the ,corporation considers appropriate1 including-- 7,a7 averages based on different geographic regions2 and 7,b7 an average for houses whose mortgage collateralized single-family covered securities4 7#b7 ,considerations ,in establishing the method described under subsection 7a71 the ,corporation may take into consideration the data collected in carrying out the functions described under section #ccb1 and such other data1 existing house price indexes1 and other measures as the ,corporation considers appropriate4 #cje4 ,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 threaten to create an anomalous lack of mortgage credit availability within the single-family housing market1 multifamily housing market1 or entire ,united ,states housing market that could materially and severely disrupt the functioning of the housing finance system of the ,united ,states1 the ,corporation may1 for a period of #f months-- 7#a7 provide insurance in accordance with section #cjc to any single-family covered security regardless of whether such security has satisfied the requirements of section #cjb2 and 7#b7 establish provisional standards for approved entities1 notwithstanding any standard required under subtitle ,b or section #gjc1 pursuant to section #fjg4 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 ,terms and conditions ,insurance provided under subsection 7a7 shall be subject to such additional or different limitations1 restrictions1 and regulations as the ,corporation may prescribe4 7d7 ,bailout strictly prohibited ,in exercising the authority granted under subsection 7a71 the ,corporation may not-- 7#a7 provide aid to an approved entity or an affiliate of the approved entity1 if such approved entity is in bankruptcy or any other ,federal or ,state insolvency proceeding2 or 7#b7 provide aid for the purpose of assisting a single and specific company to avoid bankruptcy or any other ,federal or ,state insolvency proceeding4 7e7 ,notice ,not later than #g days after authorizing insurance or establishing provisional standards under subsection 7a71 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 report that includes-- 7#a7 the justification for the exercise of authority to provide such insurance or establish such provisional standards2 7#b7 evidence that unusual and exigent circumstances have created or threatened to create an anomalous lack of mortgage credit availability within the single-family housing market1 multifamily housing market1 or entire ,united ,states housing market that could materially and severely disrupt the functioning of the housing finance system of the ,united ,states2 and 7#c7 evidence that failure to exercise such authority would have undermined the safety and soundness of the housing finance system4 7f7 ,additional exercise of authority 7#a7 ,in general ,subject to the limitation under subsection 7g71 the authority granted to the ,corporation under subsection 7a7 may be exercised for #b additional #i-month periods within any given #c-year period1 provided that 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 ,development-- 7,a7 determines-- 7i7 for a second exercise of authority under subsection 7a71 by an affirmative vote of #b_/c or more of the ,board of ,directors then serving1 that a second exercise of authority under subsection 7a7 is necessary2 or 7ii7 for a third exercise of authority under subsection 7a71 by an affirmative vote of #b_/c or more of the ,board of ,directors then serving1 and an affirmative vote of #b_/c or more of the ,board of ,governors of the ,federal ,reserve ,system then serving1 that a third exercise of authority under this section is necessary2 and 7,b7 provides notice to ,congress1 as provided under subsection 7e74 7#b7 ,order of exercise of authority ,any additional exercise of authority under this subsection may occur consecutively or non-consecutively4 7g7 ,limitation ,the authority granted to the ,corporation under this section may not be exercised more than #c times in any given #c-year period1 which #c-year period shall commence upon the initial exercise of authority under subsection 7a74 7h7 ,normalization and reduction of risk ,following any exercise of authority under this section1 the ,corporation shall-- 7#a7 establish a timeline for approved entities to meet the approval standards set forth in this ,act2 and 7#b7 in a manner and pursuant to a timeline that will minimize losses to the ,mortgage ,insurance ,fund1 establish a program to either-- 7,a7 sell1 in whole or in part1 the first loss position on covered securities issued pursuant to this section to private market holders2 or 7,b7 transfer for value to approved entities1 or work with approved entities to sell1 in whole or in part1 the first lost position on covered securities issued pursuant to this section4 7i7 ,authority to respond to sustained national home price decline 7#a7 ,authority ,in the event of a significant decline of national home prices1 in at least #b consecutive calendar quarters1 the ,corporation1 by an affirmative vote of #b_/c or more of the ,board of ,directors then serving1 may for a period of #f months permit the transfer of guarantees of eligible mortgage loans that secure covered securities if such eligible mortgage loans are refinanced1 regardless of the value of the underlying collateral securing such eligible mortgage loans4 7#b7 ,additional exercise of authority ,the authority granted to the ,corporation under paragraph 7#a7 may be exercised for additional #f-month periods1 if upon each additional extension of such authority there is an affirmative vote of #b_/c or more of the ,board of ,directors then serving4 7#c7 ,limitation ,the ,corporation shall not provide insurance under this section to any covered security that includes mortgage loans that do not meet the definition of an eligible mortgage loan1 as defined in this ,act1 except for mortgage loans refinanced from eligible mortgage loans in covered securities4 7#d7 ,rule of construction ,no provision in this section shall be construed as permitting the ,corporation to lower any other requirement related to the requirements set forth under the definition of an eligible mortgage loan4 #cjf4 ,general powers 7a7 ,corporate powers ,the ,federal ,mortgage ,insurance ,corporation shall have the power-- 7#a7 to adopt1 alter1 and use a corporate seal1 which shall be judicially noticed2 7#b7 to enter into1 execute1 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 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 or tribunal of competent jurisdiction1 ,federal or ,state1 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 ,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 7#i7 to appoint and supervise personnel employed by the ,corporation2 7#aj7 to establish and maintain divisions1 units1 or other offices within the ,corporation1 including those established in sections #bjg1 #bjh1 #bji1 and #baa in order to carry out the responsibilities of this ,act1 and to satisfy the requirements of other applicable law2 and 7#aa7 to manage the affairs of the ,corporation and conduct the business of the ,corporation1 as necessary4 7b7 ,litigation authority 7#a7 ,in general ,in enforcing any provision of this ,act1 any regulation or order prescribed under this ,act1 or any other provision of law1 rule1 regulation1 or order1 or in any other action1 suit1 or proceeding to which the ,corporation is a party or in which the ,corporation is interested1 and in the administration of conservatorships and receiverships1 the ,corporation may act in the ,corporation's own name and through attorneys or other agents acting on behalf of the ,corporation4 7#b7 ,subject to suit ,except as otherwise provided by law1 the ,corporation shall be subject to suit 7other than suits for claims for money damages7 by a regulated entity or market participant with respect to any matter under this ,act or any other applicable provision of law1 rule1 order1 or regulation under this ,act1 in the ,united ,states district court for the judicial district in which the regulated entity or market participant has its principal place of business1 or in the ,united ,states ,district ,court for the ,district of ,columbia1 and the ,corporation may be served with process in the manner prescribed by the ,federal ,rules of ,civil ,procedure4 7c7 ,expenditures ,except as may be otherwise provided in this title1 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 7d7 ,exemption from certain taxes ,the ,corporation1 including its franchise1 capital1 reserves1 surplus1 mortgage loans 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 county1 municipal1 or local taxation to the same extent according to its value as other real property is taxed4 7e7 ,exclusive use of name ,no individual1 association1 partnership1 or corporation1 except the body corporate named under section #bja1 shall hereafter use the words ,federal ,mortgage ,insurance ,corporation or any combination of such words1 as the name or a part thereof under which such 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 corporate named under section #bja4 ,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 #a1jjj for each day during which such violation is committed or repeated4 7f7 ,fiscal agents ,the ,federal ,reserve banks are authorized and directed to act as depositories1 custodians1 and fiscal agents for the ,corporation1 for its own account or as fiduciary1 and such banks shall be reimbursed for such services in such manner as may be agreed upon1 and the ,corporation may itself act in such capacities1 for its own account or as fiduciary1 and for the account of others4 7g7 ,other powers ,the ,corporation is authorized to assess and collect fees on regulated entities and approved entities1 including for applications1 examinations1 and other purposes1 as authorized by this ,act4 7h7 ,federal ,home ,loan ,bank assessment ,the ,corporation shall have the authority to assess a fee on the ,federal ,home ,loan ,banks to cover the necessary costs related to supervising the ,federal ,home ,loan ,banks4 ,the costs associated with the secondary market activities of the ,federal ,home ,loan ,banks pursuant to section #cab shall be covered by the fee charged pursuant to this subsection4 7i7 ,rule of construction related to fair housing ,nothing in this ,act shall be construed as authorizing the ,corporation to waive1 repeal1 amend1 or modify requirements relating to fair housing law1 including those requirements under the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq47 and the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq474 #cjg4 ,exemptions 7a7 ,securities exempt from ,securities and ,exchange ,commission regulation 7#a7 ,covered securities 7,a7 ,in general ,all 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 security insured or guaranteed by the ,federal ,mortgage ,insurance ,corporation2 after ,federal ,reserve bank24 7#b7 ,credit risk-sharing mechanisms ,section #bg;,b7c7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggz-#b;a7c77 is amended-- 7,a7 in paragraph 7#a71 by striking or at the end2 7,b7 in paragraph 7#b71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7#c7 purchases or sales of any asset-backed security that is a credit risk-sharing mechanism approved by the ,federal ,mortgage ,insurance ,corporation in accordance with section #cjb or section #gjc7;c7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad1 which credit risk-sharing mechanism is designed to be used or is used1 as determined by the ,federal ,mortgage ,insurance ,corporation1 by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any pool of eligible mortgage loans that collateralizes a covered security insured in accordance with section #cjc or #cje of that ,act4 4 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 #b of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad1 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 7c7 ,counterparties exempt from the ,commodity ,exchange ,act ,section #a;a7#aj7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#aj77 is amended by adding at the end the following3 7,c7 ,exemption ,solely as it relates to the specific role of a counterparty in connection with the swap transaction described in this paragraph1 the term commodity pool does not include any counterparty that enters into any swap for purposes of structuring a credit risk-sharing mechanism that is approved by the ,federal ,mortgage ,insurance ,corporation in accordance with section #cjb or section #gjc7;c7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad1 which credit risk-sharing mechanism is designed to be used or is used1 as determined by the ,federal ,mortgage ,insurance ,corporation1 by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any pool of eligible mortgage loans that collateralizes a covered security insured in accordance with section #cjc or #cje of that ,act4 4 #cjh4 ,regulatory consultation and coordination 7a7 ,consultation permitted ,the ,corporation may1 in carrying out any duty1 responsibility1 requirement1 or action authorized under this ,act1 consult with the ,federal regulatory agencies1 any individual ,federal regulatory agency1 the ,secretary of the ,treasury1 the ,secretary of ,housing and ,urban ,development1 any ,state banking regulator1 any ,state insurance regulator1 and any other ,state agency1 as the ,corporation determines necessary and appropriate4 7b7 ,coordination required ,the ,corporation shall1 as required by this ,act1 in carrying out any duty1 responsibility1 requirement1 or action authorized under this ,act1 coordinate with the ,federal regulatory agencies1 any individual ,federal regulatory agency1 the ,secretary of the ,treasury1 the ,secretary of ,housing and ,urban ,development1 any ,state banking regulator1 any ,state insurance regulator1 and any other ,state agency4 7c7 ,avoidance of duplication ,to the fullest extent possible1 the ,corporation shall-- 7#a7 avoid duplication of examination activities1 reporting requirements1 and requests for information2 7#b7 rely on examination reports made by other ,federal or ,state regulatory agencies relating to an approved entity and its subsidiaries1 if any2 and 7#c7 ensure that approved entities are not subject to conflicting supervisory demands by the ,corporation and other ,federal regulatory agencies4 7d7 ,protection of privileges 7#a7 ,in general ,pursuant to the authorities provided under subsections 7a7 and 7b71 to facilitate the consultative process and coordination1 the ,corporation may share information with the ,federal regulatory agencies1 any individual ,federal regulatory agency1 the ,secretary of the ,treasury1 the ,secretary of ,housing and ,urban ,development1 any ,state bank supervisor1 any ,state insurance regulator1 any other ,state agency1 or any foreign banking authority1 on a one-time1 regular1 or periodic basis1 as determined by the ,corporation1 regarding the capital assets and liabilities1 financial condition1 risk management practices1 or any other practice of any market participant4 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 market participant 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 regulatory agencies1 any individual ,federal regulatory agency1 any ,state bank supervisor1 any ,state insurance regulator1 any other ,state agency1 or any foreign banking authority1 but for this subsection4 7e7 ,federal and ,state authority preserved ,unless otherwise expressly provided by this section1 no provision of this section shall limit or be construed to limit1 in any way1 the existing authority of any ,federal agency or ,state regulatory authority4 #cji4 ,authority to issue regulations 7a7 ,general authority ,the ,corporation may prescribe such regulations and issue such guidelines1 orders1 requirements1 or standards as are necessary to-- 7#a7 carry out this ,act1 or any amendment made by this ,act2 and 7#b7 ensure-- 7,a7 competition among approved entities in the secondary mortgage market2 7,b7 liquidity in the secondary mortgage market and the forward execution market for eligible single-family mortgage loans and single-family covered securities1 such as the ,to-,be-,announced market2 and 7,c7 mitigation of systemic risk in the secondary mortgage market4 7b7 ,capital standards 7#a7 ,in general ,for each type of covered entity the ,corporation shall establish1 by regulation1 capital standards and related solvency standards necessary to implement the provisions of this ,act4 7#b7 ,definitions 7,a7 ,in general ,the regulations required under this subsection shall define all such terms as are necessary to carry out the purposes of this subsection4 7,b7 ,considerations in defining instruments and contracts that qualify as capital ,in defining instruments and contracts that qualify as capital pursuant to subparagraph 7,a71 the ,corporation-- 7i7 shall include such instruments and contracts that will absorb losses before the ,mortgage ,insurance ,fund2 and 7ii7 may assign significance to those instruments and contracts based on the nature and risks of such instruments and contracts4 7,c7 ,considerations in defining capital ratios ,solely for the purposes of calculating a capital ratio appropriate to the business model of the applicable entity pursuant to subparagraph 7,a71 the ,corporation shall consider for the denominator-- 7i7 total assets2 7ii7 total liabilities2 7iii7 risk in force2 or 7iv7 unpaid principal balance4 7#c7 ,designed to ensure safety and soundness ,the capital and related solvency standards established under this subsection shall be designed to-- 7,a7 ensure the safety and soundness of a covered entity2 7,b7 minimize the risk of loss to the ,mortgage ,insurance ,fund2 7,c7 in consultation and coordination with the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 the ,office of the ,comptroller of the ,currency1 and the ,national ,credit ,union ,administration1 reduce the potential for regulatory arbitrage between capital standards for covered entities and capital standards promulgated by ,federal regulatory agencies for insured depository institutions and their affiliates2 and 7,d7 be specifically tailored to accommodate a diverse range of business models that may be employed by covered entities4 7#d7 ,supplemental capital requirements ,in order to prevent or mitigate risks to the secondary mortgage market of the ,united ,states that could arise from the material financial distress or failure1 or ongoing activities1 of covered entities that are large approved aggregators or large approved guarantors that engage in covered guarantee transactions1 the ,corporation1 by regulation-- 7,a7 shall establish supplemental capital requirements for covered entities that are large approved aggregators or large approved guarantors2 and 7,b7 may establish such other standards for covered entities that are large approved aggregators or large approved guarantors that the ,corporation determines necessary or appropriate4 7c7 ,market share limitation for certain large entities ,the ,corporation shall establish1 by regulation1 market share limitations for large approved aggregators and large approved guarantors that would take effect only in the event the ,corporation has reason to believe the supplemental standards established under subsection 7b77#d7 are insufficient to prevent or mitigate risks to the secondary mortgage market of the ,united ,states that could arise from the material financial distress or failure1 or ongoing activities1 of such approved aggregators and approved guarantors4 7d7 ,recognition of distinctions between the approved entities and the ,federal ,home ,loan ,banks 7#a7 ,in general ,prior to promulgating any regulation or taking any other formal or informal action of general applicability and future effect relating to the ,federal ,home ,loan ,banks1 including the issuance of an advisory document or examination guidance1 the ,chairperson1 in consultation with the ,office of ,federal ,home ,loan ,bank ,supervision1 shall consider the differences between the ,federal ,home ,loan ,banks and approved entities with respect to-- 7,a7 the ,banks'-- 7i7 cooperative ownership structure2 7ii7 mission of providing liquidity to its members2 7iii7 affordable housing and community development mission2 7iv7 capital structure2 and 7v7 joint and several liability2 and 7,b7 any other differences that the ,corporation considers appropriate4 7#b7 ,capital considerations ,the ,corporation1 in coordination with the ,office of ,federal ,home ,loan ,bank ,supervision1 shall establish capital standards1 as required under section #cji7;b71 with respect to a ,federal ,home ,loan ,bank1 or subsidiary or joint office thereof1 that is approved as an aggregator under section #cab1 that-- 7,a7 are adequate to support the role of a ,federal ,home ,loan ,bank as a covered entity1 consistent with the safe and sound operations of the ,bank or ,banks involved2 and 7,b7 do not adversely impact the traditional liquidity and advance business of the ,federal ,home ,loan ,bank ,system or the marketability or creditworthiness of ,federal ,home ,loan ,bank consolidated obligations4 7e7 ,regulations relating to force-placed insurance 7#a7 ,in general ,the ,corporation shall1 by regulation1 set standards for the purchase of force-placed insurance by market participants4 7#b7 ,limitation ,no standards developed1 adopted1 or published under paragraph 7#a7 shall concern the regulation of the business of insurance or preempt any ,state law1 regulation1 or procedure concerning the regulation of the business of insurance4 7f7 ,use and protection of personally identifiable information 7#a7 ,privacy considerations ,in collecting information from any person1 in publicly releasing information held by the ,corporation1 or in requiring approved entities to publicly report information1 the ,corporation shall take steps to ensure that proprietary1 personal1 or confidential consumer information that is protected from public disclosure under section #eeb7;b7 or #eeb;a of title #e1 ,united ,states ,code1 or any other provision of law1 is not made public4 7#b7 ,treatment of approved entities ,with respect to the application of any provision of the ,right to ,financial ,privacy ,act of #aigh to a disclosure by an approved entity subject to this subsection1 the approved entity shall be treated as if it were a financial institution as defined in section #aaja of that ,act 7#ab ,u4,s4,c4 #cdja74 7#c7 ,non disclosure 7,a7 ,in general ,unless otherwise specified by this ,act1 any personally identifiable information obtained or maintained by the ,corporation in connection with any supervision or enforcement authority or function1 including the ,office of ,general ,counsel and ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation1 may not be disclosed to any non supervisory or non enforcement office1 division1 or employee of the ,corporation1 or to any other ,federal or ,state agency unless-- 7i7 the information is necessary and appropriate for such office1 division1 or employee of the ,corporation to comply with this ,act1 and the office1 division1 or employee cannot reasonably obtain the information through the normal course of business of such office1 division1 or employee2 7ii7 the other ,federal or ,state agency has satisfied any conditions of information sharing that the ,corporation may establish1 including treatment of personally identifiable information and sharing of information that shall conform to the standards for protection of the confidentiality of personally identifiable information and for data integrity and security that are applicable to ,federal agencies2 or 7iii7 the records are relevant to a legitimate law enforcement inquiry1 or intelligence or counterintelligence activity1 investigation1 or analysis related to international terrorism within the jurisdiction of the receiving entity4 7,b7 ,protection of personally identifiable information by specific offices ,any office created under section #bjg7;a77#a77;,b7 shall-- 7i7 develop standards regarding treatment and confidentiality of personally identifiable information and the collection and sharing of information that are tailored to the purpose or mission of the office2 and 7ii7 obtain approval from the ,chairperson of the standards developed under clause 7i7 prior to the operation of the office4 7g7 ,consumer ,privacy ,the ,corporation shall not obtain from an approved entity any personally identifiable financial information about a consumer from the financial records of the approved entity1 except-- 7#a7 if the financial records are reasonably described in a request by the ,corporation and the consumer provides written permission for the disclosure of such information by an approved entity to the ,corporation2 or 7#b7 as may be specifically permitted or required under other applicable provisions of law and in accordance with the ,right to ,financial ,privacy ,act of #aigh 7#ab ,u4,s4,c4 #cdja et seq474 7h7 ,option for approved guarantors and approved aggregators 7#a7 ,establishment of process for approval ,the ,corporation may1 if it determines necessary or appropriate1 establish a process and criteria for approved guarantors and approved aggregators to apply to the ,corporation for approval to operate a cash window for the purchase of individual eligible single-family mortgage loans4 7#b7 ,requirements ,if the ,corporation establishes a process and criteria under paragraph 7#a71 the ,corporation-- 7,a7 may grant approval to an approved guarantor or an approved aggregator that applies to operate a cash window for the purchase of individual eligible single-family mortgage loans only if the ,corporation determines that-- 7i7 the approved guarantor or approved aggregator meets the criteria established under paragraph 7#a72 and 7ii7 the operation of the cash window would not pose a risk to the ,mortgage ,insurance ,fund2 and 7,b7 to ensure the safety and soundness of each approved guarantor and approved aggregator1 shall establish standards for the regulation1 supervision1 and operation of each cash window that an approved guarantor or approved aggregator is approved to operate under this paragraph4 #caj4 ,equivalency in protection of the ,mortgage ,insurance ,fund ,in order to protect the ,mortgage ,insurance ,fund and promote multiple sources of first loss positions1 the ,corporation shall seek to ensure equivalent loss absorption capacity between approved credit risk-sharing mechanisms pursuant to section #cjb and capital standards for approved guarantors pursuant to section #caa4 ,b ,approval and supervision of approved entities for single-family activities #caa4 ,approval and supervision of guarantors 7a7 ,standards for approval of guarantors 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of guarantors to guarantee the timely payment of principal and interest on securities collateralized by eligible single-family mortgage loans 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 a requirement that the guarantor maintain capital levels as defined by the ,corporation1 pursuant to subsection 7g72 7,c7 the capability of the management of the guarantor2 7,d7 the general character and fitness of the officers and directors of the guarantor1 including the compliance history of the guarantor's officers and directors with ,federal and ,state laws and the rules and regulations promulgated by self-regulatory organizations 7as defined in section #c7;a77#bf7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#bf771 as applicable2 7,e7 the risk presented by the guarantor to the ,mortgage ,insurance ,fund2 7,f7 the adequacy of insurance and fidelity coverage of the guarantor2 7,g7 the ability of the guarantor to-- 7i7 at the discretion of the guarantor1 transfer investment risk and credit risk to private market holders in the single-family market in accordance with the credit risk-sharing mechanisms approved by the ,corporation under section #cjb2 7ii7 create mechanisms to guarantee multi-lender pools2 and 7iii7 ensure that eligible single-family mortgage loans that collateralize a single-family covered security insured under this title are originated in compliance with the requirements of this ,act2 7,h7 the capacity of the guarantor to take the first loss position2 7,i7 that the guarantor has the capacity to guarantee eligible single-family mortgage loans in a manner that furthers the purposes of the ,corporation described in section #bja7;b77#e72 7,j7 a requirement that the guarantor timely issue publicly available audited financial statements on an annual basis prepared in accordance with generally accepted accounting principles used in the industry2 7,k7 that the guarantor is in compliance with section #baj7;a77#c72 7,l7 that the guarantor has substantial analytical capabilities to effectively manage credit risk2 7,m7 that the guarantor does not originate eligible single-family mortgage loans and is not an affiliate of a person that actively engages in the business of originating eligible single-family mortgage loans2 and 7,n7 any other standard the ,corporation determines necessary to protect the ,mortgage ,insurance ,fund4 7#c7 ,rule of construction ,nothing in subparagraph 7,i7 of paragraph 7#b7 shall be construed to prevent the ,corporation from approving a small or specialty guarantor1 provided that the guarantor has the capacity to adequately diversify its risk to meet appropriate safety and soundness concerns4 7#d7 ,consultation and coordination ,to promote consistency and minimize regulatory conflict1 the ,corporation shall consult and coordinate with appropriate ,federal and ,state regulators and officials when developing standards pursuant to this subsection4 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 a guarantor under this section4 7,b7 ,application review ,the ,corporation shall establish internal timelines for its processing of an application under this section1 including timelines for any action to approve or to deny an application under this section4 7,c7 ,prohibition on control by insured depository institutions or affiliates of insured depository institutions 7i7 ,in general ,it shall be unlawful for an insured depository institution or an affiliate of an insured depository institution to control an approved guarantor4 7ii7 ,rule of construction regarding control ,for purposes of this subparagraph1 any insured depository institution or affiliate of an insured depository institution has control over an approved guarantor if the company directly or indirectly or acting through #a or more other persons owns1 controls1 or has power to vote #aj percent or more of any class of voting shares of the approved guarantor4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a71 provided the guarantor meets the standards established under subsection 7a74 7#c7 ,denial ,the ,corporation shall have the authority to deny any application made pursuant to paragraph 7#a7 if an officer or director of the guarantor has1 at any time prior to the date of the approval of such application1 been-- 7,a7 subject to a statutory disqualification pursuant to section #c7;a77#ci7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ci772 or 7,b7 suspended1 removed1 or prohibited from participation pursuant to section #h7;g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;g771 prohibited from certain action pursuant to paragraphs 7#f7 or 7#g7 of section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e771 subject to an action resulting in a written agreement or other written statement under section #h7u77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7u77#a771 for which a violation may be enforced by an appropriate ,federal banking agency1 or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7#d7 ,notice and publication ,the ,corporation shall-- 7,a7 provide prompt notice to a guarantor of the approval or denial of any application of the guarantor to become an approved guarantor under this section2 7,b7 publish a notice in the ,federal ,register upon approval of any guarantor2 and 7,c7 maintain an updated list of approved guarantors on the website of the ,corporation4 7c7 ,requirement to maintain approval status 7#a7 ,authority to issue order ,if the ,corporation determines that an approved guarantor no longer meets the standards for such approval or violates a requirement under this ,act1 including any standard1 regulation1 or order promulgated in accordance with this ,act1 the ,corporation may-- 7,a7 suspend or revoke the approved status of the approved guarantor2 or 7,b7 take any other action with respect to such approved guarantor as may be authorized under this ,act4 7#b7 ,rule of construction ,the suspension or revocation of the approved status of an approved guarantor under this section shall have no effect on the status as a covered security of any covered security collateralized by eligible mortgage loans with which the approved guarantor contracted prior to the suspension or revocation4 7#c7 ,publication ,the ,corporation shall-- 7,a7 promptly publish a notice in the ,federal ,register upon suspension or revocation of the approval of any approved guarantor2 and 7,b7 maintain an updated list of such approved guarantors on the website of the ,corporation4 7#d7 ,definition ,in this subsection1 the term violate includes any action1 taken alone or with others1 for or toward causing1 bringing about1 participating in1 counseling1 or aiding or abetting1 a violation of the requirements under this ,act4 7d7 ,prudential standards for supervision ,the ,corporation shall prescribe prudential standards for approved guarantors in order to-- 7#a7 ensure-- 7,a7 the safety and soundness of approved guarantors2 and 7,b7 the maintenance of approval standards by approved guarantors2 and 7#b7 minimize the risk presented to the ,mortgage ,insurance ,fund4 7e7 ,reports and examinations ,for purposes of determining whether an approved guarantor is fulfilling the requirements under this ,act1 the ,corporation shall have the authority to require reports from and examine an approved guarantor1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsection 7a7 of section #i of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahai74 7f7 ,enforcement ,the ,corporation shall have the authority to enforce the provisions of this ,act with respect to an approved guarantor1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsections 7b7 through 7n7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7g7 ,capital standards 7#a7 ,in general ,pursuant to the requirement to establish capital and related solvency standards under section #cji7;b71 the ,corporation shall establish standards for approved guarantors that require an approved guarantor to-- 7,a7 hold #aj percent capital2 and 7,b7 maintain solvency levels adequate for the approved guarantor to withstand losses that might be incurred by the approved guarantor in a period of economic stress1 including national and regional home price declines1 such as those observed during moderate to severe recessions in the ,united ,states4 7#b7 ,risk-sharing considerations ,for purposes of paragraph 7#a71 the ,corporation shall consider the extent1 amount1 and form of risk-sharing and risk mitigation through the use by approved guarantors of credit risk-sharing mechanisms approved pursuant to section #cjb7;b77#d74 ,the ,corporation shall allow such risk-sharing and risk mitigation to fulfill required amounts of capital to be held under paragraph 7#a77;,a7 such that it ensures an equivalent amount of loss absorption capacity as required under section #cjb7;a77#a77;,b7 while maintaining an appropriate structure of capital as determined by the ,corporation4 7#c7 ,stress tests ,the ,corporation shall conduct appropriate stress tests of each approved guarantor that has total assets of more than #aj1jjj1jjj1jjj1 provided that such stress tests shall be-- 7,a7 specifically tailored to the business model of the approved guarantor2 and 7,b7 utilized to-- 7i7 ensure the safety and soundness of the approved guarantor2 and 7ii7 minimize the risk the approved guarantor may present to the ,mortgage ,insurance ,fund4 7h7 ,resolution authority for failing guarantors 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,corporation shall-- 7,a7 have the authority to act1 in the same manner and to the same extent1 with respect to an approved guarantor as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under subsections 7c7 through 7s7 of section #aa of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba71 section #ab of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbb71 and section #ac of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc71 while tailoring such actions to the specific business model of the approved guarantor1 as may be necessary to properly exercise such authority under this subsection2 7,b7 in carrying out any authority provided in subparagraph 7,a71 act1 in the same manner and to the same extent1 with respect to the ,mortgage ,insurance ,fund as the ,federal ,deposit ,insurance ,corporation may act with respect to the ,deposit ,insurance ,fund under the provisions of the ,federal ,deposit ,insurance ,act set forth in subparagraph 7,a72 7,c7 prescribe regulations governing the applicable rights1 duties1 and obligations of an approved guarantor placed into resolution under this subsection1 its creditors1 counterparties1 and other persons1 as the ,corporation deems necessary to properly exercise the authority provided in subparagraph 7,a72 7,d7 consistent with the authorities provided in subparagraph 7,a71 immediately place an insolvent approved guarantor into receivership2 and 7,e7 upon placing an approved guarantor into receivership1 treat single-family covered securities insured by the ,corporation under section #cjc in the same manner as the ,federal ,deposit ,insurance ,corporation treats deposit liabilities under section #aa7;d77#aa77;,a77ii7 of the ,federal ,deposit ,insurance ,act and insured deposits under section #aa7;f7 of the ,federal ,deposit ,insurance ,act1 where the ,corporation shall have the same right of subrogation as the ,federal ,deposit ,insurance ,corporation has under section #aa7;g7 of the ,federal ,deposit ,insurance ,act4 7#b7 ,least-cost resolution required ,the ,corporation may not exercise any authority under paragraph 7#a7 with respect to any approved guarantor unless the total amount of the expenditures by the ,corporation and obligations incurred by the ,corporation in connection with the exercise of any such authority with respect to such approved guarantor is the least costly to the ,mortgage ,insurance ,fund1 consistent with the least cost approach specified in the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 of all possible methods for meeting the ,corporation's obligations under this ,act and expeditiously concluding its resolution activities1 subject to section #ac of the ,federal ,deposit ,insurance ,act where the ,corporation and the ,board of ,directors shall have the same authority as the ,federal ,deposit ,insurance ,corporation and the ,federal ,deposit ,insurance ,corporation's board of directors4 7#c7 ,taxpayer protection ,the ,corporation1 in carrying out any authority provided in this subsection1 shall prescribe regulations to ensure that any amounts owed to the ,united ,states1 unless the ,united ,states agrees or consents otherwise1 shall have priority following administrative expenses of the receiver when satisfying unsecured claims against an approved guarantor1 or the receiver therefor1 that are proven to the satisfaction of the receiver4 7i7 ,hearing ,upon notice of denial of an application for approval under subsection 7b7 or upon a notice of suspension or revocation of the approved status of an approved guarantor under subsection 7c71 the applicant or approved guarantor shall be afforded a hearing under subsection 7h7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h771 in the same manner and to the same extent as if the ,corporation were the appropriate ,federal banking agency1 provided that the approved guarantor submits a request to the ,corporation for a hearing not later than #aj days after the date on which the notice is published under subsection 7b77#c7 or 7c77#c74 7j7 ,other activities ,an approved guarantor shall be prohibited from being an approved aggregator4 7k7 ,provision of pool level insurance ,subject to such standards as the ,corporation may provide1 an approved guarantor may provide insurance or other credit enhancement on a pool of eligible single-family mortgage loans collateralizing a single-family covered security insured under this title4 7l7 ,prohibited activity ,an approved guarantor may not-- 7#a7 originate eligible single-family mortgage loans2 or 7#b7 be an affiliate of a person that actively engages in the business of originating eligible single-family mortgage loans4 7m7 ,guarantors required to pay claims ,subject to such standards as the ,corporation may provide1 an approved guarantor may not for any reason withhold payment of funds that would ensure holders of single-family covered securities receive timely payment of principal and interest on single-family covered securities4 ,the ,corporation shall by regulation develop a process for the mediation and resolution of disputed payment amounts4 #cab4 ,approval and supervision of aggregators 7a7 ,standards for approval of mortgage aggregators 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of mortgage aggregators to deliver eligible single-family mortgage loans to the ,securitization ,platform for securitization by such aggregator as a single-family covered security4 7#b7 ,required standards ,the standards required under paragraph 7#a7 shall include standards with respect to the ability of mortgage aggregator to-- 7,a7 aggregate eligible single-family mortgage loans into pools1 including multi-lender pools1 as appropriate2 7,b7 transfer investment risk and credit risk to private market participants in accordance with the credit risk-sharing mechanisms approved by the ,corporation under section #cjb2 7,c7 ensure equitable access to the secondary mortgage market for single-family covered securities for all institutions regardless of size or geographic location2 and 7,d7 ensure that eligible single-family mortgage loans that collateralize a single-family covered security insured under this title are originated in compliance with the requirements of this ,act4 7#c7 ,additional required standards ,the standards required under paragraph 7#a7 shall also include-- 7,a7 the financial history and condition of the mortgage aggregator2 7,b7 the adequacy of the capital structure of the mortgage aggregator2 7,c7 the capability of the management of the mortgage aggregator2 7,d7 the general character and fitness of the officers and directors of the mortgage aggregator1 including the compliance history of the mortgage aggregator's officers and directors with ,federal and ,state laws and the rules and regulations promulgated by self-regulatory organizations 7as defined in section #c7;a77#bf7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#bf771 as applicable2 7,e7 the risk presented by the mortgage aggregator to the ,mortgage ,insurance ,fund2 7,f7 the adequacy of insurance and fidelity coverage of the mortgage aggregator2 7,g7 a requirement that the mortgage aggregator submit audited financial statements to the ,corporation2 7,h7 that the mortgage aggregator has the capacity to aggregate mortgage loans in a manner that furthers purposes of the ,corporation described in section #bja7;b77#e72 7,i7 that the mortgage aggregator is in compliance with section #baj7;a77#c72 and 7,j7 any other standard the ,corporation determines necessary to protect the ,mortgage ,insurance ,fund4 7#d7 ,rule of construction ,nothing in subparagraph 7,h7 of paragraph 7#c7 shall be construed to prevent the ,corporation from approving a small or specialty mortgage aggregator1 provided that the mortgage aggregator has the capacity to adequately diversify its risk to meet appropriate safety and soundness concerns of the ,corporation4 7#e7 ,consultation and coordination ,to promote consistency and minimize regulatory conflict1 the ,corporation shall consult and coordinate with appropriate ,federal and ,state regulators and officials when developing standards pursuant to this subsection4 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 a mortgage aggregator under this section4 7,b7 ,application review ,the ,corporation shall establish internal timelines for its processing of an application under this section1 including timelines for any action to approve or to deny an application under this section4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a71 provided the mortgage aggregator meets the standards established under subsection 7a74 7#c7 ,denial ,the ,corporation shall have the authority to deny any application made pursuant to paragraph 7#a7 if an officer or director of the mortgage aggregator has1 at any time prior to the date of the approval of such application1 been-- 7,a7 subject to a statutory disqualification pursuant to section #c7;a77#ci7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ci772 or 7,b7 suspended1 removed1 or prohibited from participation pursuant to section #h7;g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;g771 prohibited from certain action pursuant to paragraphs 7#f7 or 7#g7 of section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e771 subject to an action resulting in a written agreement or other written statement under section #h7u77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7u77#a771 for which a violation may be enforced by an appropriate ,federal banking agency1 or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7#d7 ,notice and publication ,the ,corporation shall-- 7,a7 provide prompt notice to a mortgage aggregator of the approval or denial of any application of the mortgage aggregator to become an approved aggregator under this section2 7,b7 publish a notice in the ,federal ,register upon approval of any mortgage aggregator2 and 7,c7 maintain an updated list of approved aggregators on the website of the ,corporation4 7c7 ,requirement to maintain approval status 7#a7 ,authority to issue order ,if the ,corporation determines that an approved aggregator no longer meets the standards for such approval or violates a requirement under this ,act1 including any standard1 regulation1 or order promulgated in accordance with this ,act1 the ,corporation may-- 7,a7 suspend or revoke the approved status of the approved aggregator2 or 7,b7 take any other action with respect to such approved aggregator as may be authorized under this ,act4 7#b7 ,rule of construction ,the suspension or revocation of the approved status of an approved aggregator under this section shall have no effect on the status as a covered security of any covered security collateralized by eligible mortgage loans with which the approved aggregator contracted prior to the suspension or revocation4 7#c7 ,publication ,the ,corporation shall-- 7,a7 promptly publish a notice in the ,federal ,register upon suspension or revocation of the approval of any approved aggregator2 and 7,b7 maintain an updated list of such approved aggregators on the website of the ,corporation4 7#d7 ,definition ,in this subsection1 the term violate includes any action1 taken alone or with others1 for or toward causing1 bringing about1 participating in1 counseling1 or aiding or abetting1 a violation of the requirements under this ,act4 7d7 ,prudential standards for supervision 7#a7 ,in general ,subject to subsection 7k77#a71 the ,corporation shall prescribe prudential standards for approved aggregators in order to-- 7,a7 ensure-- 7i7 the safety and soundness of approved aggregators2 and 7ii7 the maintenance of approval standards by approved aggregators2 and 7,b7 minimize the risk presented to the ,mortgage ,insurance ,fund4 7#b7 ,recognition of distinctions between aggregators that are insured depository institutions1 affiliates of insured depository institutions1 and those that are not ,in carrying out the requirements under paragraph 7#a71 the ,corporation shall-- 7,a7 distinguish between prudential standards for approved aggregators that are insured depository institutions1 approved aggregators that are affiliates of insured depository institutions1 and approved aggregators that are neither insured depository institutions nor affiliates of insured depository institutions2 and 7,b7 consult and coordinate with ,federal and ,state banking agencies when establishing prudential standards for approved aggregators that are insured depository institutions and approved aggregators that are affiliates of insured depository institutions1 in order to minimize duplication of and conflicts with the prudential standards set by the appropriate ,federal or ,state banking agencies of insured depository institutions or the affiliates of insured depository institutions4 7#c7 ,rule of construction ,nothing in this section shall supersede the prudential standards established by the appropriate ,federal banking agencies4 7e7 ,reports and examinations ,for purposes of gathering information to determine whether an approved aggregator is fulfilling the requirements under this ,act1 the ,corporation shall have the authority to require reports from and examine an approved aggregator as follows3 7#a7 ,not insured depository institutions or affiliates ,for an approved aggregator that is neither an insured depository institution nor an affiliate of an insured depository institution1 the ,corporation shall have the authority to require reports from and examine an approved aggregator1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsection 7a7 of section #i of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahai74 7#b7 ,insured depository institutions and affiliates ,for an approved aggregator that is an insured depository institution or an affiliate of an insured depository institutions3 7,a7 ,use of existing reports to reduce examinations ,to the fullest extent possible1 the ,corporation shall-- 7i7 rely on the examinations1 inspections1 and reports of the appropriate ,federal or ,state banking agencies2 7ii7 avoid duplication of examination activities1 reporting requirements1 and requests for information2 and 7iii7 ensure that the depository institution holding company and the subsidiaries of the depository institution holding company are not subject to conflicting supervisory demands by the ,corporation and appropriate ,federal and ,state banking agencies4 7,b7 ,examination authority ,if the ,corporation determines that the examinations1 inspections1 and reports obtained pursuant to subparagraph 7,a7 are insufficient for the ,corporation to adequately supervise an approved aggregator for compliance with this ,act1 the ,corporation shall have the authority to require reports from and examine the approved aggregator for compliance with this ,act1 in the same manner and to the same extent as the ,board of ,governors of the ,federal ,reserve ,system has with respect to a subsidiary of a bank holding companyunder the provisions of paragraphs 7#a7 and 7#b7 of subsection 7c7 of section #e of the ,bank ,holding ,company ,act 7#ab ,u4,s4,c4 #ahdd74 7,c7 ,regulatory notice 7i7 ,regulatory notice ,before commencing an examination of an approved aggregator under this paragraph1 the ,corporation shall provide reasonable notice to1 and coordinate with1 the appropriate ,federal or ,state banking agency or ,state regulatory agency4 7ii7 ,rule of construction ,nothing in this ,act shall limit the authority of the ,corporation to require reports of and examine an approved aggregator-- 7,i7 to verify the sale of1 and funds received from1 the first loss position2 and 7,,ii7 when the ,corporation becomes aware-- 7aa7 of a material threat to the safety and soundness of the approved aggregator2 7bb7 that the approved aggregator is in material violation of this ,act or the rules promulgated by the ,corporation pursuant to this ,act2 or 7cc7 that the activities of the approved aggregator threaten the financial stability of the housing finance system or the ,mortgage ,insurance ,fund4 7f7 ,enforcement ,the ,corporation shall have the authority to enforce the provisions of this ,act with respect to an approved aggregator1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsections 7b7 through 7n7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah71 provided that to the extent that the ,corporation and an appropriate ,federal banking agency are each authorized to enforce prudential standards with respect to an approved aggregator that is an insured depository institution or an affiliate of an insured depository institution1 the appropriate ,federal banking agency shall have primary authority to enforce such standards4 7g7 ,capital standards ,for approved aggregators that are neither an insured depository institution nor an affiliate of an insured depository institution the following shall apply3 7#a7 ,in general ,pursuant to the requirement to establish capital and related solvency standards under section #cji7;b71 the ,corporation shall establish standards for approved aggregators that require an approved aggregator-- 7,a7 to hold capital in an amount comparable to that which is required to be held by insured depository institutions and their affiliates with respect to their applicable aggregating activities2 and 7,b7 to maintain solvency levels adequate for the approved aggregator to withstand losses that might be incurred by the approved aggregator in a period of economic stress1 including national and regional home price declines1 such as those observed during moderate to severe recessions in the ,united ,states4 7#b7 ,stress tests ,the ,corporation shall conduct appropriate stress tests of each approved aggregator that has total assets of more than #aj1jjj1jjj1jjj1 provided that such stress tests shall be-- 7,a7 specifically tailored to the business model of the approved aggregator2 7,b7 utilized to-- 7i7 ensure the safety and soundness of the approved aggregator2 and 7ii7 minimize the risk the approved aggregator may present to the ,mortgage ,insurance ,fund2 and 7,c7 coordinated with the ,board of ,governors of the ,federal ,reserve ,system1 if the approved aggregator is an affiliate of an insured depository institution4 7h7 ,resolution authority for failing aggregators 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,corporation shall-- 7,a7 have the authority to act1 in the same manner and to the same extent1 with respect to an approved aggregator that is not an insured depository institution as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under subsections 7c7 through 7s7 of section #aa of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba71 section #ab of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbb71 and section #ac of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc71 while tailoring such actions to the specific business model of the approved aggregator1 as may be necessary to properly exercise such authority under this subsection2 7,b7 in carrying out any authority provided under subparagraph 7,a71 act1 in the same manner and to the same extent1 with respect to the ,mortgage ,insurance ,fund as the ,federal ,deposit ,insurance ,corporation may act with respect to the ,deposit ,insurance ,fund under the provisions of the ,federal ,deposit ,insurance ,act set forth in subparagraph 7,a72 7,c7 prescribe regulations governing the applicable rights1 duties1 and obligations of an approved aggregator that is not an insured depository institution placed into resolution under this subsection1 its creditors1 counterparties1 and other persons1 as the ,corporation deems necessary to properly exercise the authority provided in subparagraph 7,a72 and 7,d7 consistent with the authorities provided in subparagraph 7,a71 immediately place an insolvent approved aggregator that is not an insured depository institution into receivership4 7#b7 ,rule of construction ,if an insolvent approved aggregator is an insured depository institution1 the ,corporation shall recommend1 in writing1 to such approved aggregator's appropriate ,federal banking agency or ,state banking regulator to resolve such approved aggregator1 which agency shall have sole authority to resolve such aggregator pursuant to section #aa7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;c77 and other appropriate sections of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 or appropriate ,federal or ,state law1 as applicable4 7#c7 ,least-cost resolution required ,the ,corporation may not exercise any authority under paragraph 7#a7 with respect to any approved aggregator that is not an insured depository institution unless the total amount of the expenditures by the ,corporation and obligations incurred by the ,corporation in connection with the exercise of any such authority with respect to such approved aggregator is the least costly to the ,mortgage ,insurance ,fund1 consistent with the least cost approach specified in the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 of all possible methods for meeting the ,corporation's obligations under this ,act and expeditiously concluding its resolution activities1 subject to section #ac of the ,federal ,deposit ,insurance ,act where the ,corporation and the ,board of ,directors shall have the same authority as the ,federal ,deposit ,insurance ,corporation and the ,federal ,deposit ,insurance ,corporation's board of directors4 7#d7 ,taxpayer protection ,the ,corporation1 in carrying out any authority provided in this subsection1 shall prescribe regulations to ensure that any amounts owed to the ,united ,states1 unless the ,united ,states agrees or consents otherwise1 shall have priority following administrative expenses of the receiver when satisfying unsecured claims against an approved aggregator1 or the receiver therefor1 that are proven to the satisfaction of the receiver4 7i7 ,hearing ,upon notice of denial of an application for approval under subsection 7b7 or upon a notice of suspension or revocation of the approved status of an approved aggregator under subsection 7c71 the applicant or approved aggregator shall be afforded a hearing under subsection 7h7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h771 in the same manner and to the same extent as if the ,corporation were the appropriate ,federal banking agency1 provided that the approved aggregator submits a request to the ,corporation for a hearing not later than #aj days after the date on which the notice is published under subsection 7b77#c7 or 7c77#c74 7j7 ,other activities ,an approved aggregator shall be prohibited from being an approved guarantor4 7k7 ,information sharing regarding insured depository institutions and affiliates of insured depository institutions 7#a7 ,by the ,corporation ,to the extent the ,corporation has relevant information indicating that an approved aggregator that is an insured depository institution or an affiliate of an insured depository institution 7,a7 faces a material threat to its safety and soundness1 including insufficient capital1 7,b7 may be in material violation of ,federal banking law1 or 7,c7 may threaten the financial stability of the housing finance system or the ,mortgage ,insurance ,fund1 the ,corporation shall notify1 in writing1 such appropriate ,federal banking agency that such conditions exist4 ,the ,corporation shall have no authority to enforce prudential standards established by an appropriate ,federal banking agency pursuant to the appropriate ,federal banking agency's authority4 7#b7 ,by ,federal and ,state banking agencies ,to the extent an appropriate ,federal banking agency or ,state banking agency has relevant information indicating that an approved aggregator that is an insured depository institution or an affiliate of an insured depository institution 7,a7 faces a material threat to its safety and soundness1 including insufficient capital1 7,b7 may be in material violation of this ,act or the rules promulgated by the ,corporation pursuant to this ,act1 or 7,c7 may threaten the financial stability of the housing finance system or the ,mortgage ,insurance ,fund1 such appropriate ,federal banking agency or ,state banking agency shall notify1 in writing1 the ,corporation that such conditions exist4 7l7 ,rule of construction regarding preservation of ,corporation authority ,nothing in this section limits1 or shall be construed to limit1 the authority of the ,corporation to provide exemptions to1 or adjustments for1 the provisions of this section based on the asset size of an approved aggregator1 or other criteria1 as the ,corporation deems appropriate1 in order to reduce regulatory burdens while appropriately balancing protection of the ,mortgage ,insurance ,fund4 7m7 ,federal ,home ,loan ,banks1 joint offices1 and bank subsidiaries as aggregators 7#a7 ,federal ,home ,loan ,bank ,act 7,a7 ,establishment of joint offices and subsidiaries 7i7 ,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 ,agency1 in coordination with the ,federal ,mortgage ,insurance ,corporation1 #a or more ,federal ,home ,loan ,banks may establish a subsidiary or joint office in any form under the laws of any ,state1 subject to the approval of the ,corporation4 ,any subsidiary or joint office established under this subsection shall be restricted to engaging in activities related to being an approved aggregator1 as that term is defined under section #b of ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 7d7 ,subject to such regulations as may be prescribed by the ,agency1 in coordination with the ,federal ,mortgage ,insurance ,corporation1 #a or more ,federal ,home ,loan ,banks or any subsidiary or joint office of a ,federal ,home ,loan ,bank established under subsection 7c7 may apply to become1 and may become1 an approved aggregator1 as that term is defined under section #b of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 4 7ii7 ,effective date ,the amendments made by clause 7i7 shall take effect on the system certification date4 7,b7 ,c,d,f,is 7i7 ,amendment ,section #aj7;a7 of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adcj7;a77 is amended-- 7,i7 in paragraph 7#b77;,b71 by inserting or community development financial institution 7as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb77 after community financial institution2 and 7,,ii7 in paragraph 7#c77;,e71 by inserting or community development financial institution 7as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb77 after community financial institution4 7ii7 ,effective date ,the amendment made by clause 7i7 shall take effect on the agency transfer date4 7#b7 ,not consolidated debt ,notwithstanding section #aa of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adca71 any covered security secured by eligible mortgage loans transferred to the ,platform by a ,federal ,home ,loan ,bank or subsidiary or joint office thereof1 acting as an approved aggregator1 shall not be designated as1 or considered to be the joint and several obligations of the ,federal ,home ,loan ,banks4 #cac4 ,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 loan insurance on eligible single-family mortgage loans that collateralize single-family covered securities4 7#b7 ,required standards ,the standards required under paragraph 7#a7 shall include-- 7,a7 the financial history and current financial condition1 including capital and loss reserves to comply with any applicable ,state law or regulation1 of the private mortgage insurer2 7,b7 the capability of the management of the private mortgage insurer2 7,c7 the general character and fitness of the officers and directors of the private mortgage insurer1 including the compliance history of the private mortgage insurer's officers and directors with ,federal and ,state laws and the rules and regulations promulgated by self-regulatory organizations 7as defined in section #c7;a77#bf7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#bf771 as applicable2 7,d7 that the private mortgage insurer has the capacity to insure eligible single-family mortgage loans in a manner to comply with any applicable ,state law or regulation and that furthers the purposes of the ,corporation as described in section #bja7;b77#e72 7,e7 the risk presented by the private mortgage insurer to the ,mortgage ,insurance ,fund2 7,f7 the adequacy of insurance and fidelity coverage of the private mortgage insurer2 7,g7 a requirement that the private mortgage insurer submit audited financial statements to the ,corporation2 and 7,h7 any other standard the ,corporation1 after notice and public comment1 determines necessary to avoid significant risk to the ,mortgage ,insurance ,fund1 provided the standard does not materially conflict with ,state law4 7#c7 ,rule of construction ,nothing in subparagraph 7,d7 of paragraph 7#b7 shall be construed to prevent the ,corporation from approving a small or specialty private mortgage insurer1 provided that the private mortgage insurer has the capacity to adequately diversify its risk to meet solvency standards required by any applicable ,state law or regulation4 7#d7 ,consultation and coordination ,to promote consistency and minimize regulatory conflict1 the ,corporation shall consult and coordinate with appropriate ,federal regulators and ,state regulators and officials when developing standards pursuant to this subsection4 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 a private mortgage insurer under this section4 7,b7 ,application review ,the ,corporation shall establish internal timelines for its processing of an application under this section1 including timelines for any action to approve or to deny an application under this section4 7,c7 ,notification ,the ,corporation shall notify the appropriate ,state insurance regulator upon receipt of any application by a private mortgage insurer to become an approved private mortgage insurer under this section4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a71 provided the private mortgage insurer meets the standards established under subsection 7a74 7#c7 ,denial ,the ,corporation shall have the authority to deny any application made pursuant to paragraph 7#a7 if an officer or director of the private mortgage insurer has1 at any time prior to the date of the approval of such application1 been-- 7,a7 subject to a statutory disqualification pursuant to section #c7;a77#ci7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ci772 or 7,b7 suspended1 removed1 or prohibited from participation pursuant to section #h7;g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;g771 prohibited from certain action pursuant to paragraphs 7#f7 or 7#g7 of section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e771 subject to an action resulting in a written agreement or other written statement under section #h7u77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7u77#a771 for which a violation may be enforced by an appropriate ,federal banking agency1 or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7#d7 ,notice and publication ,the ,corporation shall-- 7,a7 provide prompt notice to a private mortgage insurer of the approval or denial of any application of the private mortgage insurer to become an approved private mortgage insurer under this section2 7,b7 publish a notice in the ,federal ,register upon approval of any private mortgage insurer2 7,c7 maintain an updated list of approved private mortgage insurers on the website of the ,corporation2 and 7,d7 provide prompt notice to the appropriate ,state insurance regulator upon the approval or denial of any application of a private mortgage insurer to become an approved private mortgage insurer under this section4 7#e7 ,grandfathered insurers of the enterprises ,any private mortgage insurer who was approved to insure mortgage loans for an enterprise on the date that is #a day before the date the ,corporation publishes the provisional standards for the approval of private mortgage insurers required under section #fjg7;a77#b71 and was in good standing as of such date-- 7,a7 shall be deemed conditionally approved for a period of #a year from the date on which the ,corporation publishes the provisional standards for the approval of private mortgage insurers required under section #fjg7;a77#b72 7,b7 shall1 not later than the date which is #f months after date on which the ,corporation publishes the standards required under subsection 7a71 apply for approved status via the application process described in this subsection to be eligible for approved status2 and 7,c7 shall1 provided the private mortgage insurer has complied with subparagraph 7,b71 receive a determination from the ,corporation as to the approval or denial of its application to become an approved private mortgage insurer prior to the expiration of the #a-year period described under subparagraph 7,a74 7c7 ,requirement to maintain approval status 7#a7 ,authority to issue order ,if the ,corporation determines that an approved private mortgage insurer no longer meets the standards for such approval or violates a requirement under this section1 including any standard1 regulation1 or order promulgated in accordance with this ,act1 the ,corporation may-- 7,a7 provide prompt notice to the appropriate ,state insurance regulator that the ,corporation determines that an approved private mortgage insurer no longer meets the standard for such approval2 7,b7 suspend or revoke the approved status of the approved private mortgage insurer2 or 7,c7 take any other action with respect to such approved private mortgage insurer as may be authorized under this ,act4 7#b7 ,rule of construction ,the suspension or revocation of the approved status of an approved private mortgage insurer under this section shall have no effect on the status as a covered security of any covered security collateralized by eligible mortgage loans with which the approved private mortgage insurer contracted prior to the suspension or revocation4 7#c7 ,publication ,the ,corporation shall-- 7,a7 promptly publish a notice in the ,federal ,register upon suspension or revocation of the approval of any approved private mortgage insurer2 and 7,b7 maintain an updated list of such approved private mortgage insurers on the website of the ,corporation4 7#d7 ,definition ,in this subsection1 the term violate includes any action1 taken alone or with others1 for or toward causing1 bringing about1 participating in1 counseling1 or aiding or abetting1 a violation of the requirements under this ,act4 7d7 ,state regulation ,the appropriate ,state insurance regulator of an approved private mortgage insurer has primary authority to examine and supervise the approved private mortgage insurer4 7e7 ,reports and examinations 7#a7 ,in general ,for purposes of determining whether an approved private mortgage insurer is fulfilling the requirements under this ,act1 the ,corporation may1 in coordination with the appropriate ,state insurance regulator of the approved private mortgage insurer1 including providing the appropriate ,state insurance regulator the opportunity to join the ,corporation in an on-site examination1 examine or review any approved private mortgage insurer if the ,corporation has substantial reason to believe-- 7,a7 that an approved private mortgage insurer has engaged in a material violation or pattern of violations of this ,act or the rules promulgated pursuant to this ,act2 or 7,b7 that the activities of an approved private mortgage insurer may threaten the financial stability of the housing finance system or the ,mortgage ,insurance ,fund4 7#b7 #c-year compliance examination ,in addition to the authority under paragraph 7#a71 the ,corporation shall conduct an examination of an approved private mortgage insurer once1 but not more than once1 every #c years1 provided the approved private mortgage insurer has not been examined on-site by an appropriate ,state insurance regulator4 7#c7 ,coordination ,in conducting an exam or review authorized pursuant to paragraph 7#a7 or paragraph 7#b71 the ,corporation shall-- 7,a7 provide reasonable notice to1 and coordinate with1 the appropriate ,state insurance regulator for an approved private mortgage insurer before commencing an examination of the approved private mortgage insurer under this section2 7,b7 to the fullest extent possible1 avoid duplication of examination activities1 reporting requirements1 and requests for information1 including by relying on existing examinations1 inspections1 and reports of the appropriate ,state insurance regulator2 and 7,c7 ensure that the approved private mortgage insurer is not subject to conflicting supervisory demands by the ,corporation and ,state insurance regulators1 as appropriate4 7#d7 ,notice of determination ,the ,state insurance regulator of an approved private mortgage insurer shall notify the ,corporation if there has been a final determination that the approved private mortgage insurer is in a hazardous financial condition provided that the ,corporation agrees to maintain the confidentiality or privileged status of the document1 material1 or other information received from the ,state insurance regulator of the approved private mortgage insurer4 7f7 ,enforcement 7#a7 ,in general ,the ,corporation shall have the authority to enforce the provisions of this section with respect to a private mortgage insurer1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsections 7b7 through 7n7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah71 provided the ,corporation demonstrates that such enforcement action is necessary to avoid significant risk to the ,mortgage ,insurance ,fund4 7#b7 ,notification ,prior to taking any enforcement action against an approved private mortgage insurer1 the ,corporation shall promptly notify1 consult1 and coordinate with the appropriate ,state insurance regulator4 7g7 ,resolution authority 7#a7 ,in general ,for any approved private mortgage insurer that the ,corporation has substantial reason to believe is insolvent1 as defined by applicable ,state law1 and would otherwise be subject to receivership proceedings under such applicable ,state law1 the ,corporation shall recommend1 in writing1 that the ,state insurance regulator for such approved private mortgage insurer take such actions as are necessary and authorized under applicable ,state law to resolve such approved private mortgage insurer4 7#b7 ,backup authority ,notwithstanding the requirement under paragraph 7#a71 if1 after the end of the #fj-;day period beginning on the date on which the ,corporation provides its written recommendation pursuant to paragraph 7#a71 the appropriate ,state insurance regulator has not filed the appropriate judicial action in the appropriate ,state court to place such approved private mortgage insurer into receivership under the laws and requirements of the ,state1 the ,corporation shall have the authority to stand in the place of the appropriate regulatory agency and file the appropriate judicial action in the appropriate ,state court to place such approved private mortgage insurer into receivership under the laws and requirements of the ,state4 7h7 ,hearing ,upon notice of denial of an application for approval under subsection 7b7 or upon a notice of suspension or revocation of the approved status of an approved private mortgage insurer under subsection 7c71 the applicant or approved private mortgage insurer shall be afforded a hearing under subsection 7h7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h771 in the same manner and to the same extent as if the ,corporation were the appropriate ,federal banking agency1 provided that the approved private mortgage insurer submits a request to the ,corporation for a hearing not later than #aj days after the date on which the notice is published under subsection 7b77#c7 or 7c77#c74 7i7 ,rule of construction regarding preservation of ,corporation authority ,nothing in this section limits1 or shall be construed to limit1 the authority of the ,corporation to provide exemptions to1 or adjustments for1 the provisions of this section based on the asset size of approved private mortgage insurers1 or other criteria1 as the ,corporation deems appropriate1 in order to reduce regulatory burdens while appropriately balancing the protection of the ,mortgage ,insurance ,fund4 #cad4 ,approval of servicers 7a7 ,standards for approval of servicers 7#a7 ,in general ,the ,corporation shall1 by regulation1 establish standards for the approval by the ,corporation of servicers to administer eligible single-family mortgage loans1 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 bona fide insurance premiums2 7,d7 the maintenance of records on eligible single-family mortgage loans2 7,e7 the establishment of loss mitigation options that seek to enhance value and prevent1 to greatest extent possible1 the need to trigger a claim on insurance offered by the ,corporation pursuant to this title1 including by-- 7i7 establishing1 by rule1 a consistent process through which borrowers1 who have submitted an initial loan modification request1 will be evaluated by servicers and the securitization trust for an affordable loan modification2 and 7ii7 providing clear guidance regarding the treatment of second lien holders1 taking into consideration the priority and subordination of liens under ,federal and ,state laws2 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 arrears1 the borrower has entered into a repayment plan or modification1 an approved entity or regulated entity has purchased the loan1 or the property securing the eligible single-family mortgage loan has been liquidated1 including specification that the servicer shall recover advances upon permanent modification of a borrower's mortgage loan2 7,g7 the establishment of procedures under which the servicer may initiate or continue a foreclosure1 in accordance with applicable ,federal and ,state laws and regulations that-- 7i7 take into account-- 7,i7 the servicer's evaluation of1 and agreements with1 borrowers for loss mitigation options pursuant to subparagraph 7,e72 7,,ii7 potential losses caused by delays in collateral recovery2 and 7,,iii7 the need to minimize risks to the ,mortgage ,insurance ,fund2 and 7ii7 provide the borrower1 upon request1 documentation establishing the right of the mortgagee to foreclose2 7,h7 the provision of eligible single-family mortgage loan information to borrowers1 upon request1 including a copy of the pooling and servicing agreement and securitization trust requirements that address the ability of the servicer to offer loss mitigation options2 and 7,i7 implementing the terms of any loss mitigation and foreclosure prevention as required by any uniform securitization agreement developed under section #cbf4 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 capability of the management of the servicer2 7,c7 the general character and fitness of the officers and directors of the servicer1 including the compliance history of the servicer's officers and directors with ,federal and ,state laws and the rules and regulations promulgated by self-regulatory organizations 7as defined in section #c7;a77#bf7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#bf771 as applicable2 7,d7 the risk presented by such servicer to the ,mortgage ,insurance ,fund2 and 7,e7 minimum operational and management standards for the servicer1 including with respect to-- 7i7 internal controls2 7ii7 recordkeeping2 7iii7 internal audit systems2 7iv7 the maintenance of adequate liquidity and reserves2 and 7v7 reporting standards to the ,corporation and investors1 including audited financial statements4 7#c7 ,coordination1 consistency1 and comparability ,to promote consistency and minimize regulatory conflict1 the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,national ,credit ,union ,administration1 and the ,corporation shall-- 7,a7 consult and coordinate with each other in developing and issuing regulations with respect to the rules and standards for the servicing of eligible single-family mortgage loans2 and 7,b7 review existing regulations with respect to mortgage loan servicing rules and standards4 7#d7 ,consultation and coordination with ,state regulators ,to promote consistency and minimize regulatory conflict1 the ,corporation shall consult and coordinate with appropriate ,state regulators in developing and issuing regulations with respect to the rules and standards for the servicing of eligible single-family mortgage loans4 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 a servicer under this section2 and 7,b7 that does not discriminate against or otherwise disadvantage small servicers4 7#b7 ,approval 7,a7 ,in general ,the ,corporation may approve any application made pursuant to paragraph 7#a7 provided the servicer meets the standards adopted under subsection 7a74 7,b7 ,prompt notice ,the ,corporation shall notify any applicant seeking to become an approved servicer under this section of the decision of the ,corporation with respect to such approval as promptly as practicable4 7#c7 ,denial ,the ,corporation shall have the authority to deny any application made pursuant to paragraph 7#a7 if an officer or director of the servicer has1 at any time prior to the date of the approval of such application1 been-- 7,a7 subject to a statutory disqualification pursuant to section #c7;a77#ci7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ci772 or 7,b7 suspended1 removed1 or prohibited from participation pursuant to section #h7;g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;g771 prohibited from certain action pursuant to paragraphs 7#f7 or 7#g7 of section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e771 subject to an action resulting in a written agreement or other written statement under section #h7u77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7u77#a771 for which a violation may be enforced by an appropriate ,federal banking agency1 or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7#d7 ,grandfathered servicers of the enterprises ,any servicer who was approved to service mortgage loans for an enterprise on the date that is #a day before the date of enactment of this ,act1 and was in good standing as of such date1 shall be deemed to be an approved servicer for purposes of initial servicer approval by the ,corporation and thereafter subject to the requirements of this section as an approved servicer4 7#e7 ,small servicer exemption 7,a7 ,in general ,the ,corporation shall1 by regulation1 provide exemptions to1 or adjustments for1 the provisions of this section for approved servicers that service #g1ejj or fewer eligible single-family mortgage loans1 in order to reduce regulatory burdens while appropriately balancing protection of the ,mortgage ,insurance ,fund4 7,b7 ,limitation of exemption eligibility ,an approved servicer and its subsidiaries and affiliates shall be considered a single entity for purposes of the exemption under subparagraph 7,a74 7#f7 ,,respa amendment ,section #f of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfje7 is amended by adding at the end the following3 7n7 ,small servicer exemption 7#a7 ,in general ,the ,bureau shall1 by regulation1 provide exemptions to1 or adjustments for1 the provisions of this section for servicers that service #g1ejj or fewer mortgage loans1 in order to reduce regulatory burdens while appropriately balancing consumer protections4 7#b7 ,limitation of exemption eligibility ,an approved servicer and its subsidiaries and affiliates shall be considered a single entity for purposes of the exemption under paragraph 7#a74 4 7#g7 ,publication ,the ,corporation shall-- 7,a7 publish a notice in the ,federal ,register upon approving any servicer under this section2 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 ,review 7,a7 ,in general ,the ,corporation may examine or review any approved servicer if the ,corporation has substantial reason to believe that a servicer has engaged in a material violation or pattern of violations of this ,act or the rules promulgated pursuant to this ,act1 including-- 7i7 any failure by an approved servicer to comply with terms set forth in any uniform securitization agreement developed under section #cbf2 or 7ii7 through the identification of any information indicating abnormal eligible single-family mortgage loan performance within the loan portfolio of the approved servicer4 7,b7 #b-year compliance examination ,in addition to the authority under subparagraph 7,a71 the ,corporation shall conduct an examination or review of an approved servicer once1 but not more than once1 every #b years1 provided however that such examination or review shall be limited to compliance with this ,act or regulations promulgated under this ,act4 7,c7 ,coordination ,in conducting an exam or review authorized pursuant to subparagraph 7,a7 or subparagraph 7,b71 the ,corporation shall-- 7i7 provide reasonable notice to1 and coordinate with1 the appropriate ,federal banking agency1 the ,bureau of ,consumer ,financial ,protection1 or ,state regulatory agency1 as appropriate1 for an approved servicer that is regulated by such ,federal banking agency1 the ,bureau of ,consumer ,financial ,protection1 or ,state regulatory agency before commencing an examination of the approved servicer under this section2 and 7ii7 to the fullest extent possible-- 7,i7 rely on the examinations1 inspections1 and reports of the appropriate ,federal banking agency1 the ,bureau of ,consumer ,financial ,protection1 or ,state regulatory agency1 as appropriate1 for an approved servicer that is regulated by such ,federal banking agency1 the ,bureau of ,consumer ,financial ,protection1 or ,state regulatory agency2 7,,ii7 avoid duplication of examination activities1 reporting requirements1 and requests for information2 and 7,,iii7 ensure that approved servicers are not subject to conflicting supervisory demands by the ,corporation1 appropriate ,federal banking agencies1 the ,bureau of ,consumer ,financial ,protection1 or ,state regulatory agencies1 as appropriate4 7,d7 ,self certification 7i7 ,in general ,to facilitate any exam or review authorized pursuant to subparagraph 7,a7 or subparagraph 7,b71 each approved servicer shall1 on an annual basis and in accordance with such requirements as the ,corporation may establish1 certify in writing to the ,corporation that the approved servicer is in compliance with the standards identified under paragraphs 7#a7 and 7#b7 of subsection 7a71 all other requirements of this ,act1 and any rules promulgated pursuant to this ,act4 7ii7 ,penalty for false or misleading certifications 7,i7 ,enforcement ,the ,corporation shall have the authority to impose enforcement penalties with respect to an approved servicer who submits a certification under clause 7i7 that contains false or misleading information1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to insured depository institutions under the provisions of subsections 7b7 through 7n7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah71 except that the penalties under subsection 7j7 of such section #h shall not apply4 7,,ii7 ,notification ,if the ,corporation takes any enforcement action against an approved servicer1 the ,corporation shall notify the approved servicer's appropriate ,federal banking agency1 the ,bureau of ,consumer ,financial ,protection1 or ,state regulator1 if applicable4 7#b7 ,suspension or revocation 7,a7 ,corporation authority ,if the ,corporation determines1 in any exam or review authorized 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 have their approved status suspended or revoked2 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 ,transfer of mortgage servicing duties 7#a7 ,in general ,for any eligible single-family mortgage loan or pool of eligible single-family mortgage loans collateralizing a single-family covered security insured by the ,corporation under this title and in accordance with rules promulgated by the ,corporation1 the ,corporation may require the approved servicer of any such eligible single-family mortgage loan or pool of eligible single-family mortgage loans to enter into a subservicing arrangement with any independent specialty servicer approved by the ,corporation4 7#b7 ,rules ,the rules required under paragraph 7#a7 shall-- 7,a7 set forth with clarity the performance conditions of an approved servicer that would warrant or necessitate the use of the authority granted to the ,corporation under this subsection2 7,b7 require that the performance condition warranting or necessitating the use of such authority be of such type or character so as to materially and adversely affect the ability of the ,corporation to recover any amounts owed to the ,corporation2 7,c7 for purposes of subparagraph 7,b71 define the term materially and adversely affect2 7,d7 require that any approved servicer whose servicing duties are subject to this subsection be provided a reasonable amount of time1 provided that such time does not present a risk to the ,mortgage ,insurance ,fund1 to rebut1 address1 or correct any determination of the ,corporation regarding a performance condition described under subparagraph 7,a72 7,e7 only permit the ,corporation to carry out the authority granted under this subsection upon expiration of the time-period allowed under subparagraph 7,d72 7,f7 limit the scope of any such authority to eligible single-family mortgage loans that share similar underwriting1 borrower1 and performance characteristics2 7,g7 ensure that the scope of any such authority is not applied broadly and without further limitation2 and 7,h7 notwithstanding subparagraphs 7,b7 through 7,g71 provide that an approved servicer may be subject to more extensive programmatic discipline or correction measures1 as determined by the ,corporation1 if1 during any #e-year period-- 7i7 the servicing duties that are the subject of the current use of the ,corporation's authority under this subsection marks the third instance of the use of such authority with respect to the same approved servicer2 and 7ii7 with respect to the prior #b separate and individual instances of the use of such authority1 the same approved servicer failed to cure any identified performance conditions or implement corrective measures as determined by the ,corporation pursuant to subparagraph 7,d74 7#c7 ,cessation of compensation ,if a transfer of servicing duties occurs under paragraph 7#a71 the approved servicer from whom such servicing duties are extinguished shall cease to receive compensation for any such servicing activities related to those duties4 7#d7 ,servicer succession plans 7,a7 ,in general ,the ,corporation may establish a succession plan for each approved servicer1 including provisions for-- 7i7 a specialized servicer to replace the approved servicer if the performance of the eligible single-family mortgage loan pool serviced by such approved servicer deteriorates to specified levels2 and 7ii7 a plan to achieve continuity of contact for borrowers upon the replacement of the approved servicer4 7,b7 ,rule of construction ,nothing in this paragraph shall be construed as authorizing the ,corporation to circumvent1 evade1 or otherwise disregard the rules established in paragraphs 7#a7 and 7#b7 when facilitating a transfer of servicing rights4 7f7 ,petitions for change of servicer by private market holders 7#a7 ,development of process ,the ,corporation shall develop a process by which private market holders of the first loss position in a single-family covered security may petition the ,corporation for a change in approved servicers1 including specialized servicers for individual eligible single-family mortgage loans1 if the private market holders can demonstrate that its investment was not appropriately protected by the current approved servicer1 including by failing to meet any standard or requirement identified under paragraphs 7#a7 and 7#b7 of subsection 7a74 7#b7 ,cessation of compensation ,if a change in approved servicers is approved under paragraph 7#a7-- 7,a7 the change must occur within #cj days after the petition is approved by the ,corporation2 and 7,b7 once the change required under subparagraph 7,a7 has occurred1 the approved servicer from whom such servicing rights are extinguished shall cease to receive compensation for any such servicing activities related to those rights4 7g7 ,notice of transfer of servicing rights by current servicer 7#a7 ,notice to ,,fmic ,the ,corporation shall develop a process by which an approved servicer shall provide notice to the ,corporation of any transfer of any servicing rights of such approved servicer to another approved servicer4 7#b7 ,authority of ,,fmic to prevent1 halt1 or rescind a transfer ,the process required to be developed under paragraph 7#a7 shall include the development of procedures to permit the ,corporation to prevent1 halt1 or rescind any transfer of servicing rights from an approved servicer to a servicer that is not approved to service eligible single-family mortgage loans under this section or to any servicer whose approved status has been suspended or revoked pursuant to subsection 7c77#b74 7h7 ,general authority with respect to the transfer of servicing rights ,the ,corporation may develop such other standards with respect to the transfer of servicing rights by approved servicers as the ,corporation determines necessary and appropriate to facilitate an orderly transfer of servicing rights after the suspension or revocation of the approved status of a servicer pursuant to subsection 7c77#b74 7i7 ,study of servicer compensation related to non-performing single-family mortgage loans 7#a7 ,in general ,the ,corporation shall carry out a study of servicing compensation for non-performing single-family mortgage loans1 including alternatives to existing servicing compensation structures4 7#b7 ,recommendations ,the study required under paragraph 7#a7 shall include recommendations for the optimal structure of servicer compensation1 in order to-- 7,a7 improve service for borrowers2 7,b7 reduce financial risk to servicers2 and 7,c7 provide flexibility for guarantors to better manage non-performing single-family mortgage loans4 7#c7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,chairperson shall issue a report to the ,congress containing any findings and determinations made in carrying out the study required under paragraph 7#a74 7j7 ,rule of construction ,nothing in this section shall prohibit a mortgage originator from retaining rights to service the eligible single-family mortgage loans it originated1 provided that the mortgage originator-- 7#a7 meets the standards to be an approved servicer under subsection 7a72 or 7#b7 qualifies for an exemption under subsection 7b77#e74 #cae4 ,authority to establish and approve small lender mutuals 7a7 ,establishment of small lender mutuals 7#a7 ,in general ,the ,corporation shall establish #a entity known as the ,small ,lender ,mutual1 which shall be an approved small lender mutual1 owned by and operated for the benefit of its members1 for the purposes of subsection 7b74 7#b7 ,approval of other small lender mutuals ,the ,corporation shall1 by regulation1 establish standards for the approval by the ,corporation of such other small lender mutuals as may be necessary to facilitate the purposes described in subsection 7b74 7b7 ,purposes ,the purpose of the ,small ,lender ,mutual established under subsection 7a77#a7 and any small lender mutual approved under subsection 7a77#b7 7in this section collectively referred to as a small lender mutual7 shall be as follows3 7#a7 ,to address the needs of small mortgage lenders with respect to covered securities4 7#b7 ,to purchase eligible mortgage loans to securitize a covered security from its member participants-- 7,a7 for cash1 on a single loan basis2 or 7,b7 through the sale of a portion of a multi-lender pool or multi-guarantor pool collateralized by eligible mortgage loans securitized in a covered security4 7#c7 ,to obtain all necessary and appropriate credit enhancements for covered securities to support the lending activities of small mortgage lenders4 7#d7 ,to implement policies and procedures that ensure that the access rules and fees of any small lender mutual are not prohibitive and do not discriminate against originators of eligible mortgage loans or any entity that aggregates eligible mortgage loans on the basis of size1 composition1 business line1 or loan volume4 7#e7 ,to appropriately manage the risk of the ,small ,lender ,mutual to ensure the continued safety and soundness of such mutual4 7c7 ,provisions to ensure the effective operations of small lender mutuals 7#a7 ,requirement to assess needs of small lender mutual ,not later than #a year after the date of enactment of this ,act1 the ,federal ,housing ,finance ,agency shall conduct an assessment of the intellectual property1 technology1 infrastructure1 and processes of the enterprises relating to the operation and maintenance of the systems needed to ensure small mortgage lender access to the secondary mortgage market to determine the needs of the ,small ,lender ,mutual established under subsection 7a77#a74 ,the assessment required under this paragraph shall be submitted to the ,transition ,committee established under section #djd1 or the ,board if confirmed pursuant to section #djd7;d71 and included in the transition plan required under section #fjb4 7#b7 ,authority to manage disposition of enterprise infrastructure ,after the agency transfer date and before the system certification date1 the ,federal ,housing ,finance ,agency1 consistent with title ,,vi-- 7,a7 shall dispose of the intellectual property1 technology1 infrastructure1 and processes of the enterprises relating to the operation and maintenance of the systems needed for small mortgage lenders to access the secondary mortgage market2 and 7,b7 may manage such disposition through the sale1 transfer1 licensing1 or leasing of such intellectual property1 technology1 infrastructure1 and processes of an enterprise to the ,small ,lender ,mutual established under subsection 7a77#a7 to ensure that the ,small ,lender ,mutual can access the secondary mortgage market and fulfill the purposes of the section4 7#c7 ,transfer of necessary technology ,after the agency transfer date and before the system certification date1 the ,federal ,housing ,finance ,agency1 consistent with section #fjd7;h71 may transfer to a subsidiary or subsidiaries of the enterprises any function1 activity1 infrastructure1 property1 including intellectual property1 technology1 or any other object or service of an enterprise that the ,corporation determines is necessary and available for the ,small ,lender ,mutual established under subsection 7a77#a7 to carry out its activities and operations4 7#d7 ,initial capitalization 7,a7 ,in general ,the initial capital necessary for the ,small ,lender ,mutual to be established under subsection 7a77#a7 to purchase a subsidiary established under paragraph 7#c7 or to purchase1 lease1 or license the systems under paragraph 7#b77;,b71 and to perform all other activities and functions of the ,small ,lender ,mutual1 including the ability of the ,small ,lender ,mutual to operate a cash window for the purchase of individual eligible mortgage loans1 shall be provided by the enterprises4 7,b7 ,determination of amount ,the amount of any initial capital required to be provided by the enterprises under subparagraph 7,a7 shall be determined by the ,corporation based on the needs of the ,small ,lender ,mutual to carry out its activities and functions1 as well as by the current volume of business from the enterprise-approved sellers that are eligible to participate1 pursuant to subsection 7e71 as a member of the ,small ,lender ,mutual4 7,c7 ,repayment 7i7 ,in general ,the amount of any initial capital required to be provided by the enterprises under subparagraph 7,a7 shall be repaid by the ,small ,lender ,mutual established under subsection 7a77#a7 on a schedule jointly agreed to by the ,small ,lender ,mutual and the ,corporation4 7ii7 ,repayment period 7,i7 ,in general ,the repayment of any amounts required under clause 7i7 shall be completed within #g years from the system certification date4 7,,ii7 ,authority to extend repayment period ,the ,corporation1 after consultation with the mutual board of the ,small ,lender ,mutual established under subsection 7a77#a71 may extend the repayment period set forth under subclause 7,i7 for an additional #c years1 if1 in the sole discretion of the ,corporation1 the ,corporation deems such extension necessary4 7d7 ,ensuring fair competition ,the ,federal ,housing ,finance ,agency may1 consistent with the public interest1 for the maintenance of fair competition among all small lender mutuals1 and for the purposes set forth in this section1 provide1 through a licensing agreement or other agreement1 access to any technology or platform transferred pursuant to subsection 7c77#c74 7e7 ,eligibility 7#a7 ,in general ,eligibility to participate as a member in any small lender mutual shall be limited to any-- 7,a7 insured depository institution having less than #ejj1jjj1jjj1jjj in total consolidated assets at the time of the initial participation of the institution in the small lender mutual2 7,b7 non-depository mortgage originator that-- 7i7 has a minimum net worth of #b1ejj1jjj2 7ii7 has annual eligible mortgage loan production of less than #ajj1jjj1jjj1jjj2 and 7iii7 7,i7 prior to the system certification date1 was approved to sell mortgage loans to an enterprise on the date that is #a day prior to the establishment or approval of the small lender mutual1 provided that such originator was in good standing as of such date2 or 7,,ii7 meets the standards established by the small lender mutual pursuant to subsection 7l72 7,c7 ,community ,development ,financial ,institution that meets the standards established by the small lender mutual pursuant to subsection 7l72 7,d7 mission-based nonprofit lender that meets the standards established by the small lender mutual pursuant to subsection 7l72 7,e7 housing finance agency that meets the standards established by the small lender mutual pursuant to subsection 7l72 and 7,f7 ,federal ,home ,loan ,bank4 7#b7 ,access of originators ,an entity eligible to participate as a member of a small lender mutual may not be required to become an approved entity under this ,act to access any function or operation of a small lender mutual4 7#c7 ,rule of construction ,each entity eligible to participate as a member of a small lender mutual under this section shall meet all applicable standards and requirements under this ,act4 7f7 ,report ,not later than #b years after the date on which the ,small ,lender ,mutual is established under subsection 7a77#a71 the ,corporation shall-- 7#a7 conduct and complete a study evaluating the criteria for eligibility as a member of the ,small ,lender ,mutual under subparagraphs 7,a7 and 7,b7 of subsection 7e77#a72 and 7#b7 submit a report to ,congress1 which shall include an evaluation of-- 7,a7 whether the participation levels of members of the ,small ,lender ,mutual under subparagraphs 7,a7 and 7,b7 of subsection 7e77#a7 are sufficient to create the economies of scale and liquidity necessary for competitive pricing in the secondary mortgage market2 7,b7 the ability of the ,small ,lender ,mutual to ensure access for small mortgage lenders to the secondary mortgage market2 7,c7 the impact of the asset and net worth eligibility criteria established in subparagraphs 7,a7 and 7,b7 of subsection 7e77#a7 on the size1 competitiveness1 and membership of the ,small ,lender ,mutual2 7,d7 whether the eligibility thresholds established in subparagraphs 7,a7 and 7,b7 of subsection 7e77#a7 are facilitating or impeding the creation of a robust market for approved guarantors2 7,e7 whether the establishment of other eligibility criteria in subparagraphs 7,a7 and 7,b7 of subsection 7e77#a7 would better serve members of the ,small ,lender ,mutual1 including such other criteria as-- 7i7 a different asset threshold2 7ii7 an annual mortgage loan origination threshold2 or 7iii7 a mortgage loan production cap2 7,f7 whether the ,small ,lender ,mutual is fully meeting the cash window needs of small mortgage lenders2 and 7,g7 whether the ,small ,lender ,mutual is adequately capitalized to meet the needs of members of the ,small ,lender ,mutual and protect the ,mortgage ,insurance ,fund4 7g7 ,eligibility thresholds ,beginning on the date on which the ,corporation submits the report required under subsection 7f71 the ,corporation may adjust the eligibility thresholds established in subparagraphs 7,a7 and 7,b7 of subsection 7e77#a7 if the ,corporation1 in consultation with the mutual board of a small lender mutual1 determines that-- 7#a7 the thresholds do not facilitate the purposes of the small lender mutual as described in subsection 7b72 7#b7 the thresholds restrict small multifamily lenders' participation in the small lender mutual2 7#c7 the thresholds do not foster competition in the secondary mortgage market2 or 7#d7 the thresholds pose a risk to the ,mortgage ,insurance ,fund4 7h7 ,reassessment ,beginning on the date on which the ,corporation submits the report required under subsection 7f71 the ,corporation shall1 on an annual basis1 reassess the ,small ,lender ,mutual's eligibility thresholds4 7i7 ,platform membership ,each small lender mutual shall be a member of the ,securitization ,platform4 7j7 ,funding authority 7#a7 ,authority to establish membership fees ,the mutual board of each small lender mutual shall charge and collect fees from its member participants-- 7,a7 for membership in the small lender mutual2 and 7,b7 to cover the costs of-- 7i7 in the case of the ,small ,lender ,mutual established under subsection 7a77#a7-- 7,i7 the purchase of any function1 activity1 infrastructure1 property1 including intellectual property1 technology1 or any other object or service from an enterprise pursuant to subsection 7c72 7,,ii7 any initial capital for the establishment of a cash window2 and 7,,iii7 the repayment of amounts required under subsection 7c77#d77;,c71 provided that any fee charged to cover such repayment amounts is applicable only to those member participants identified and approved after the establishment date of the ,small ,lender ,mutual and before the repayment date established under subsection 7c77#d77;,c77ii72 and 7ii7 the continued operation of the small lender mutual1 including to build capital reserves and to manage risks4 7#b7 ,equitable compensation of certain member participants of ,small ,lender ,mutual ,the mutual board of the ,small ,lender ,mutual established under subsection 7a77#a7 may1 in addition to any fee required under paragraph 7#a71 charge and collect a fee from member participants identified and approved after the repayment date established under subsection 7c77#d77;,c77ii7 to compensate member participants identified and approved prior to such repayment date for the share of the fees paid by such member participants to cover the cost of repayment amounts pursuant to paragraph 7#a77;,b77i77,,iii74 7#c7 ,authority to increase or decrease fees ,the mutual board of each small lender mutual may1 in its discretion and upon consultation with the ,corporation1 increase or decrease any fee authorized under paragraph 7#a74 7#d7 ,provision of fee schedule to ,,fmic ,the mutual board of each small lender mutual shall1 on an annual basis and upon any increase or decrease of any fee authorized under paragraph 7#a71 provide the ,corporation with a schedule of the fees charged by the small lender mutual to its member participants4 7#e7 ,limitation ,the fees authorized under paragraph 7#a7-- 7,a7 shall be equitably assessed2 and 7,b7 shall not discriminate against originators of eligible mortgage loans or any entity that aggregates eligible mortgage loans on the basis of size1 composition1 business line1 or loan volume4 7#f7 ,authority to reduce fees 7,a7 ,in general ,if a small lender mutual1 in consultation with the ,corporation1 determines that any fee or fees authorized under this subsection are prohibitive or discriminatory1 the small lender mutual may1 in the interest of building the membership of the small lender mutual1 lower any such fee or fees4 7,b7 ,reasonableness and considerations ,each small lender mutual shall1 in consultation with the ,corporation1 set reasonable criteria for any determination authorized under subparagraph 7,a74 ,the criteria required to be set forth under this subparagraph shall consider the potential impact on the financial safety and soundness of the small lender mutual4 7k7 ,governance 7#a7 ,recognition of important role of smaller institutions ,the mutual board of each small lender mutual1 in consultation with the ,corporation1 shall take all reasonable steps necessary to establish governance provisions that reflect the important role in the mortgage market played by the member participants of small lender mutuals4 7#b7 ,mutual board 7,a7 ,in general ,the management of each small lender mutual shall be vested in a board of #ae directors 7in this section referred to as the mutual board71 which shall include representatives of approved member participants of the small lender mutual4 7,b7 ,appointment of mutual board of ,small ,lender ,mutual 7i7 ,initial appointment ,the ,corporation shall make initial appointments of the members of the mutual board for the ,small ,lender ,mutual established under subsection 7a77#a74 ,each such initial appointment shall be for a term of #a year4 7ii7 ,appointments ,upon expiration of the #a-year period set forth under clause 7i71 the member participants of the ,small ,lender ,mutual established under subsection 7a77#a7 shall elect the members of the mutual board of the ,small ,lender ,mutual from within the membership of the ,small ,lender ,mutual4 7,c7 ,independent directors ,the mutual board of each small lender mutual shall have at least #a independent director to serve the public interest4 ,the independent director required under this subparagraph shall have a history of representing consumer or community interests on banking services1 credit needs1 housing1 or financial consumer protections4 7,d7 ,representation on ,board ,no more than #a_/c of the directors of the mutual board of the ,small ,lender ,mutual may be held by a single category of member participants1 which shall be defined for purposes of this subsection as community banks1 credit unions1 non-depository mortgage originators1 ,federal ,home ,loan ,banks1 housing finance agencies1 ,community ,development ,financial ,institutions1 and mission-based nonprofit lenders4 7#c7 ,representation to the ,platform ,the mutual board of the ,small ,lender ,mutual shall select1 on a rotating basis from representative of its directors1 an individual to serve as a ,platform ,director under section #cbb4 7#d7 ,representation of multiple small lender mutuals ,if more than #a small lender mutual is approved under this section1 each small lender mutual shall rotate the representation position under section #cbb4 7#e7 ,no preferences for size ,member participants of each small lender mutual shall have equal voting rights on any matters before the small lender mutual of which it is a member1 regardless of the size of the individual member participant4 7#f7 ,rule of construction ,for purposes of this subsection1 a member participant and its subsidiaries1 joint offices1 and affiliates shall be treated as a single entity and shall be entitled to cast a single vote on any matters before the small lender mutual of which it is a member4 7l7 ,approval of member participants 7#a7 ,in general ,each mutual board established under subsection 7k7 shall develop standards and procedures to approve the application of member participants in the small lender mutual4 7#b7 ,content of standards ,the standards required under paragraph 7#a7 shall include standards relating to the-- 7,a7 prospective members' compliance history with ,federal and ,state law2 7,b7 safety and soundness of prospective member participants2 and 7,c7 mortgage underwriting practices of the prospective member4 7#c7 ,coordination with other regulators 7,a7 ,consultation ,in approving any prospective member to become a member participant in a small lender mutual1 the mutual board of that small lender mutual may consult and share information with-- 7i7 the appropriate ,federal banking agency and ,state regulator of the prospective member2 or 7ii7 the ,bureau of ,consumer ,financial ,protection1 if the ,bureau of ,consumer ,financial ,protection has supervisory authority over 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 board of directors or its appropriate ,federal banking agency4 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 ,federal or ,state regulator1 but for this subsection4 7#d7 ,streamlining for existing lenders approved by the enterprises ,each mutual board established under subsection 7k7 shall develop streamlined membership standards and procedures for any lender who was approved to sell mortgage loans to an enterprise on the date that is #a day before the date of enactment of this ,act1 and was in good standing as of such date4 7m7 ,cash window 7#a7 ,requirement for small lender mutuals ,each small lender mutual shall have the ability to operate a cash window for the purchase of individual eligible single-family mortgage loans4 7#b7 ,standards to ensure safety and soundness ,to ensure the safety and soundness of each small lender mutual1 the ,corporation shall establish standards for the regulation1 supervision1 and operation of each cash window required under paragraph 7#a74 7#c7 ,licensing of cash window technology ,the ,federal ,housing ,finance ,agency may1 consistent with the public interest and for the maintenance of fair competition among entities providing cash window services1 provide1 through a licensing agreement or other agreement1 access to any technology or platform relating to a cash window transferred under paragraph 7#c7 of subsection 7c74 7n7 ,recognition of distinction between small lender mutual companies and other aggregators ,prior to promulgating any regulation or taking any other formal or informal action of general applicability1 including the issuance of an advisory document or examination guidance1 the ,corporation shall consider the differences between small lender mutuals and other approved aggregators with respect to-- 7#a7 the cooperative ownership structure of small lender mutuals2 7#b7 the purposes of small lender mutuals as set forth in subsection 7b72 7#c7 the capital structure of small lender mutuals2 and 7#d7 any other differences that the ,corporation considers appropriate4 7o7 ,coordination of servicer approval ,each mutual board established under subsection 7k7 may coordinate with the ,corporation to facilitate the application process for its member participants to become approved servicers of the ,corporation pursuant to section #cad4 7p7 ,multifamily study ,not later than #a year after the agency transfer date1 the ,corporation shall conduct and complete a study to determine-- 7#a7 the access needs of small multifamily mortgage lenders to the secondary multifamily mortgage market2 and 7#b7 whether the ,small ,lender ,mutual established under subsection 7a77#a7 can meet the access needs of small multifamily mortgage lenders4 7q7 ,prohibited activities ,a small lender mutual may not guarantee any mortgage loans or mortgage-backed securities4 #caf4 ,supervisory actions related to capital and solvency 7a7 ,capital classifications 7#a7 ,establishment ,the ,corporation shall establish1 by regulation1 capital classifications regarding the levels of capital maintained by each type of covered entity4 7#b7 ,classes ,in carrying out the requirement under paragraph 7#a71 the ,corporation shall classify covered entities according to the following capital classifications3 7,a7 ,well capitalized ,a covered entity shall be classified as well capitalized if the entity meets or exceeds all of the capital and solvency standards required under section #cji7;b74 7,b7 ,adequately capitalized ,a covered entity shall be classified as adequately capitalized if the entity meets or exceeds some1 but not all1 of the capital and solvency standards required under section #cji7;b74 7,c7 ,undercapitalized ,a covered entity shall be classified as undercapitalized if the entity fails to meet any of the capital and solvency standards required under section #cji7;b74 7,d7 ,significantly undercapitalized ,a covered entity shall be classified as significantly undercapitalized if the entity is significantly below any of the capital and solvency standards required under section #cji7;b74 7,e7 ,critically undercapitalized ,a covered entity shall be classified as critically undercapitalized if the entity is critically below any of the capital and solvency standards required under section #cji7;b74 7#c7 ,discretionary classification 7,a7 ,grounds for reclassification ,the ,corporation may reclassify the capital classification of a covered entity if-- 7i7 at any time1 the ,corporation determines1 in writing1 that the covered entity is engaging in conduct that could result in a rapid depletion of capital held by the covered entity2 7ii7 after notice and an opportunity for hearing1 the ,corporation determines that the covered entity is in an unsafe or unsound condition2 7iii7 pursuant to the requirements of this title1 the ,corporation deems the covered entity to be engaging in an unsafe or unsound practice2 7iv7 the covered entity does not submit a capital restoration plan within the applicable time period that is substantially in compliance with regulations for such plans adopted by the ,corporation2 7v7 the ,corporation does not approve the capital restoration plan submitted by the covered entity2 or 7vi7 the ,corporation determines that the covered entity has failed to comply with the capital restoration plan and fulfill the schedule for the plan approved by the ,corporation in any material respect4 7,b7 ,reclassification ,in addition to any other action authorized under this title1 including the reclassification of a covered entity for any reason not specified in this subsection1 if the ,corporation takes any action described in subparagraph 7,a71 the ,corporation may classify a covered entity as appropriate4 7#d7 ,restriction on capital distributions 7,a7 ,in general ,a covered entity shall make no capital distribution if1 after making the distribution1 the covered entity would be classified as anything other than well capitalized or adequately capitalized4 7,b7 ,exception ,notwithstanding subparagraph 7,a71 the ,corporation may permit a covered entity1 to the extent appropriate or applicable1 to repurchase1 redeem1 retire1 or otherwise acquire shares or ownership interests if the repurchase1 redemption1 retirement1 or other acquisition-- 7i7 is made in connection with the issuance of additional shares or obligations of the covered entity in at least an equivalent amount2 7ii7 will reduce the financial obligations of the covered entity or otherwise improve the financial condition of the covered entity2 7iii7 will enhance the ability of the covered entity to promptly meet the minimum capital level for the covered entity2 7iv7 contributes to the long-term financial safety and soundness of the covered entity2 or 7v7 furthers the public interest4 7b7 ,adequately capitalized ,if a covered entity is classified as adequately capitalized3 7#a7 ,mandatory capital restoration plan ,the ,corporation shall require the covered entity to-- 7,a7 submit to the ,corporation a capital restoration plan2 and 7,b7 implement the plan after approval4 7#b7 ,discretionary safeguards ,the ,corporation may take1 with respect to an adequately capitalized covered entity1 any of the actions authorized to be taken under subsection 7c7 with respect to an undercapitalized covered entity1 if the ,corporation determines that such actions are necessary to carry out the purposes of this subtitle4 7c7 ,undercapitalized ,if a covered entity is classified as undercapitalized3 7#a7 ,mandatory capital restoration plan ,the ,corporation shall require the covered entity to-- 7,a7 submit to the ,corporation a capital restoration plan2 and 7,b7 implement the plan after approval4 7#b7 ,restriction on asset growth ,an undercapitalized covered entity shall not permit its average total assets during any calendar quarter to exceed its average total assets during the preceding calendar quarter1 unless-- 7,a7 the ,corporation has accepted the capital restoration plan of the covered entity2 7,b7 any increase in total assets is consistent with the capital restoration plan2 and 7,c7 the ratio of capital to total assets of the covered entity increases during the calendar quarter at a rate sufficient to enable the covered entity to become adequately capitalized within a reasonable time4 7#c7 ,prior approval of acquisitions and new activities ,an undercapitalized covered entity shall not1 directly or indirectly1 acquire any interest in any entity or engage in a new activity1 unless-- 7,a7 the ,corporation has accepted the capital restoration plan of the covered entity1 the covered entity is implementing the plan1 and the ,corporation determines that the proposed action is consistent with and will further the achievement of the plan2 or 7,b7 the ,corporation determines that the proposed action will further the purpose of this section4 7#d7 ,required monitoring ,the ,corporation shall-- 7,a7 closely monitor the condition of any undercapitalized covered entity2 7,b7 closely monitor compliance with the capital restoration plan1 restrictions1 and requirements imposed on an undercapitalized covered entity under this section2 and 7,c7 periodically review the capital restoration plan1 restrictions1 and requirements applicable to an undercapitalized covered entity to determine whether the plan1 restrictions1 and requirements are achieving the purpose of this section4 7#e7 ,discretionary safeguards ,the ,corporation may take1 with respect to an undercapitalized covered entity1 any of the actions authorized to be taken under subsection 7d7 with respect to a significantly undercapitalized covered entity1 if the ,corporation determines that such actions are necessary to carry out the purpose of this subtitle4 7d7 ,significantly undercapitalized ,if a covered entity is classified as significantly undercapitalized3 7#a7 ,mandatory capital restoration plan ,the ,corporation shall require the covered entity to-- 7,a7 submit to the ,corporation a capital restoration plan2 and 7,b7 implement the plan after approval4 7#b7 ,discretionary supervisory actions for significantly undercapitalized covered entities ,in addition to any other actions taken by the ,corporation1 the ,corporation may1 at any time1 take any of the following actions with respect to a covered entity that is classified as significantly undercapitalized3 7,a7 ,limitation on obligations ,limit any increase in1 or order the reduction of1 any obligations of the covered entity1 including off-balance sheet obligations4 7,b7 ,limitation on growth ,limit or prohibit the growth of the assets of the covered entity1 or require reduction of the assets of the covered entity4 7,c7 ,acquisition of new capital ,require the covered entity to raise new capital in a form and amount determined by the ,corporation4 7,d7 ,restriction on activities ,require the covered entity to terminate1 reduce1 or modify any activity that creates excessive risk to the covered entity1 as determined by the ,corporation4 7,e7 ,improvement of management ,take #a or more of the following actions3 7i7 ,new election of ,board ,order or hold a new election for the board of directors of the covered entity4 7ii7 ,dismissal of directors or executive officers ,require the covered entity to dismiss from office any director or executive officer who had held office for more than #ahj days immediately before the date on which the covered entity became undercapitalized4 7iii7 ,employ qualified executive officers ,require the covered entity to employ qualified executive officers 7who1 if the ,corporation so specifies1 shall be subject to approval by the ,corporation74 7e7 ,critically undercapitalized 7#a7 ,regulated entity ,the ,corporation shall have the authority to resolve a critically undercapitalized regulated entity pursuant to section #acfg of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #dfag71 as amended by this ,act4 7#b7 ,covered entity ,the ,corporation shall have the authority to resolve a covered entity that is classified as failing or critically undercapitalized pursuant to the resolution authority granted to the ,corporation under section #caa7;h71 section #cab7;h71 section #cac7;g71 and section #gjc7;i71 as applicable4 #cag4 ,ownership1 acquisitions1 and operations of covered entities 7a7 ,ownership and acquisitions of covered entities ,it shall be unlawful1 except with the prior approval of the ,corporation1 for any person to-- 7#a7 directly or indirectly own1 control1 or have power to vote #aj percent of any class of voting shares of any covered entity 7except to the extent that voting stock is required to be purchased by ,federal statute as a condition to participate in the programs of the covered entity72 7#b7 control in any manner the election of a majority of the directors or trustees of any covered entity2 7#c7 exercise a controlling influence over the management or policies of any covered entity2 7#d7 merge or consolidate with any covered entity2 or 7#e7 divest a covered entity1 or any substantial line of business of a covered entity1 into any surviving entity4 7b7 ,application and approval process 7#a7 ,in general ,the ,corporation shall establish1 by regulation1 an application1 in such form and manner and requiring such information as the ,corporation may require1 for the approval of acquisitions1 mergers1 consolidations1 or divestitures under subsection 7a74 7#b7 ,application review ,the ,corporation shall-- 7,a7 establish internal timelines for its processing of applications under this section1 including timelines for any action to approve or to deny an application under this section2 and 7,b7 notify any applicant seeking to undertake an action described under subsection 7a7 of the decision of the ,corporation to approve or to deny their application as promptly as practicable4 7c7 ,standards for approval of application ,the ,corporation shall establish1 by regulation1 standards for the approval by the ,corporation of acquisitions1 mergers1 consolidations1 or divestitures under subsection 7a74 ,the standards required under this subsection shall1 at a minimum1 be based on-- 7#a7 the application process established by the ,corporation under subsection 7b77#a72 7#b7 the financial history and condition of the applicant2 7#c7 the capability of the management of the applicant2 7#d7 the general character and fitness of the officers and directors of the applicant1 including the compliance history of the applicant's officers and directors with ,federal and ,state laws and the rules and regulations promulgated by self-regulatory organizations 7as defined in section #c7;a77#bf7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#bf771 as applicable2 7#e7 the risk presented by such acquisition1 merger1 consolidation1 or divestiture to the ,mortgage ,insurance ,fund2 7#f7 any other standard the ,corporation determines necessary to promote competition and mitigate market dislocations among covered entities in the secondary mortgage market2 and 7#g7 any other standard the ,corporation determines necessary or appropriate4 7d7 ,approval ,the ,corporation-- 7#a7 may approve any application made pursuant to this section if the applicant meets the standards established under subsection 7c72 7#b7 may not approve-- 7,a7 any application under this section which would result in a monopoly2 or 7,b7 any other proposed acquisition or merger or consolidation under this section whose effect in any area of the ,united ,states may be substantially to lessen competition1 or to tend to create a monopoly1 or which in any other manner would be in restraint of trade1 unless the ,corporation finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the needs of consumers and the communities served2 and 7#c7 shall have the authority to deny any application made pursuant to paragraph 7#a7 if an officer or director of the applicant has1 at any time prior to the date of the approval of such application1 been-- 7,a7 subject to a statutory disqualification pursuant to section #c7;a77#ci7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ci772 or 7,b7 suspended1 removed1 or prohibited from participation pursuant to section #h7;g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;g771 prohibited from certain action pursuant to paragraphs 7#f7 or 7#g7 of section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e771 subject to an action resulting in a written agreement or other written statement under section #h7u77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7u77#a771 for which a violation may be enforced by an appropriate ,federal banking agency1 or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7e7 ,restrictions on engaging in other lines of business 7#a7 ,for approved guarantors and approved multifamily guarantors ,an approved guarantor or approved multifamily guarantor may not engage in any activity relating to the business of insurance1 other than any activity carried out by an approved guarantor or approved multifamily guarantor and approved by the ,corporation pursuant to sections #caa or #gjc4 7#b7 ,other activities ,an approved guarantor or approved multifamily guarantor may engage in any business activity unrelated to the business of insurance1 subject to-- 7,a7 the prior approval of the ,corporation2 and 7,b7 any terms and conditions set forth by the ,corporation4 7#c7 ,rule of construction ,nothing in paragraph 7#a7 or 7#b7 shall be construed to prevent an approved guarantor from being an affiliate of a private mortgage insurer if approved by the ,corporation4 7f7 ,limits on support or guarantee arrangement 7#a7 ,in general ,an approved guarantor or approved multifamily guarantor may not enter into any agreement1 covenant1 or other arrangement 7including any credit risk-sharing arrangement7 with an affiliate or other person to support1 guarantee1 or finance any operation or activity of that affiliate4 7#b7 ,support ,subject to any terms and conditions established by the ,corporation1 by regulation or order1 an approved guarantor or approved multifamily guarantor may enter into an agreement1 covenant1 or other arrangement with an affiliate solely for the purpose of supporting1 guaranteeing1 or financing an operation or activity of the approved guarantor or approved multifamily guarantor4 7#c7 ,rule of construction ,nothing in this section shall supersede the requirements under sections #bc;,a and #bc;,b of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cga;c1 #cga;c-#a74 7g7 ,anti-steering requirement 7#a7 ,in general ,the ,corporation shall1 by regulation1 prohibit discounts made by an approved guarantor for any mortgage originator that is an investor1 or an affiliate of an investor1 in the approved guarantor that are not otherwise available to other similar mortgage originators4 7#b7 ,report ,the ,office of the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall1 on an annual basis1 submit a report to the ,corporation and to ,congress on the practices and internal controls of approved guarantors with respect to steering or preferential treatment for their investors prohibited by this section4 ,c ,securitization ,platform and ,transparency in ,market ,operations ,i ,securitization ,platform #cba4 ,establishment of the ,securitization ,platform 7a7 ,in general ,the ,corporation shall establish an entity known as the ,securitization ,platform 7in this part referred to as the ,platform7 that shall be a utility owned by and operated for the benefit of its members as-- 7#a7 a nonprofit cooperative2 or 7#b7 a cooperative entity other than as described under paragraph 7#a7 that-- 7,a7 best achieves the purposes and obligations of the ,platform under section #cbe2 and 7,b7 serves the public interest4 7b7 ,regulated by the ,corporation ,the ,platform shall be regulated and supervised by the ,corporation4 7c7 ,incorporation 7#a7 ,non ,federal status ,the ,platform shall not be an agency or instrumentality of the ,federal ,government4 7#b7 ,discretion as to legal form ,the ,corporation shall determine the legal form of incorporation of the ,platform4 7#c7 ,situs of incorporation ,the ,corporation shall-- 7,a7 determine in which of the several ,states to incorporate the ,platform2 and 7,b7 have the authority to amend the ,state of incorporation to best effectuate the purposes and obligations of this part and other provisions of this ,act4 7#d7 ,timing of incorporation ,not later than #a year after the agency transfer date1 the ,corporation shall file and submit the necessary documents to incorporate the ,platform in the ,state determined under paragraph 7#c77;,a74 7d7 ,funding by the ,corporation and transfer of property 7#a7 ,transfer of funds from the ,corporation ,at a time established by the ,corporation1 the ,corporation shall transfer to the ,platform such funds as the ,corporation1 in consultation with the ,platform ,directors1 determines may be reasonably necessary for the ,platform to begin carrying out the activities and operations of the ,platform4 7#b7 ,transfer of property 7,a7 ,in general ,consistent with title ,,vi1 the ,federal ,housing ,finance ,agency1 in consultation with the ,corporation and1 as appropriate1 the enterprises1 may direct the enterprises to transfer or sell to the ,platform any property1 including but not limited to1 intellectual property1 technology1 systems1 and infrastructure 7including technology1 systems1 and infrastructure developed by the enterprises for the ,,csp71 as well as any other legacy systems1 infrastructure1 and processes that may be necessary for the ,platform to carry out the functions and operations of the ,platform4 7,b7 ,contractual and other legal obligations ,as may be necessary for the ,corporation1 the ,federal ,housing ,finance ,agency1 and the enterprises to comply with legal1 contractual1 or other obligations1 the ,federal ,housing ,finance ,agency shall have the authority to require that any transfer authorized pursuant to subparagraph 7,a7 occurs as an exchange for value1 including through the provision of appropriate compensation to the enterprises 7including as provided in subparagraphs 7,c7 and 7,d771 or other entities responsible for creating1 or contracting with1 the ,,csp4 7,c7 ,maximum return to senior preferred shareholders of the enterprises ,the transfer or sale of property to the ,platform under this paragraph shall1 as appropriate1 be managed by the ,federal ,housing ,finance ,agency to obtain resolutions that maximize the return for the senior preferred shareholders of the enterprises to the extent that such resolutions-- 7i7 are consistent with facilitating-- 7,i7 a deep1 liquid1 and resilient secondary mortgage market for single-family and multifamily mortgage-backed securities to support access to mortgage credit in the primary mortgage market2 and 7,,ii7 an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the ,corporation with minimum disruption in the availability of loan credit2 7ii7 are consistent with applicable ,federal and ,state law2 7iii7 comply with the requirements of this ,act and the amendments made by this ,act2 and 7iv7 protect the taxpayer from having to absorb losses incurred in the secondary mortgage market4 7,d7 ,required determinations for sale of assets to the ,platform ,the ,federal ,housing ,finance ,agency may not require the enterprises to make a sale to the ,platform under subparagraph 7,a7 that involves the disposition of the property or assets of the enterprises unless the ,federal ,housing ,finance ,agency determines that the sale-- 7i7 is consistent with an orderly transition from housing finance markets facilitated by the enterprises to efficient housing finance markets facilitated by the ,corporation with minimum disruption in the availability of loan credit2 7ii7 does not impede or otherwise interfere with the ability of the ,federal ,housing ,finance ,agency or the ,corporation to carry out the functions and requirements of this ,act2 7iii7 does not transfer1 convey1 or authorize any guarantee or ,federal support1 assistance1 or backing1 implicit or explicit1 related to any such property or assets being sold2 and 7iv7 will maximize the return for the senior preferred shareholders as required under subparagraph 7,c74 7e7 ,platform operability ,the ,corporation shall establish sufficient redundancies in the ,platform so that in the event of operational disruption of the ,platform1 there is sufficient back-up capacity to-- 7#a7 process payments on existing securities issued through the ,platform2 and 7#b7 structure1 form1 and issue new securities through the ,platform4 7f7 ,use by other entities in exigent circumstance 7#a7 ,in general ,on and after the system certification date1 if the ,corporation determines that operational or other problems with the ,platform do not permit the ,platform to operate in a manner that allows the ,platform to achieve the purposes and obligations of the ,platform under section #cbe1 the ,corporation shall have the authority to permit the ,platform ,directors to use entities other than the ,platform to perform the issuance functions required to be performed through the ,platform and that are necessary for the proper functioning of the secondary mortgage market4 7#b7 ,rule of construction ,any entity permitted to perform issuance functions that would ordinarily be expected to be performed by the ,platform under paragraph 7#a7 shall be regulated and supervised1 as appropriate1 by the ,corporation as if such entity were the ,platform itself4 #cbb4 ,management of the ,platform 7a7 ,platform ,directors 7#a7 ,authority of the ,board 7,a7 ,in general ,the ,platform ,directors shall have all the powers necessary to carry out the purposes1 powers1 and functions of the ,platform1 and in the exercise of such purposes1 powers1 and functions1 and upon approval of the ,corporation1 shall adopt such rules and guidance and issue such orders as the ,platform ,directors deem necessary and appropriate4 7,b7 ,conflicts of interest ,the ,platform ,directors shall develop policies and procedures to monitor and mitigate potential conflicts of interest in carrying out the purposes1 powers1 and functions of the ,platform4 7#b7 ,initial ,board 7,a7 ,composition ,the initial ,platform ,directors shall be comprised of #e directors1 each of whom shall be appointed by the ,board of ,directors but none of whom shall be a member of the ,board of ,directors4 7,b7 ,timing of appointment of initial ,platform ,directors ,the initial ,platform ,directors shall be appointed pursuant to subparagraph 7,a7 not later than #ahj days after the later of-- 7i7 the filing of the necessary documents to incorporate the ,platform as required under section #cba7;c72 or 7ii7 the approval of the incorporation of the ,platform by the relevant ,state4 7,c7 ,term 7i7 ,in general ,each initial ,platform ,director appointed pursuant to subparagraph 7,a7 shall serve for a term of #a year4 7ii7 ,authority to extend term ,the ,board of ,directors may-- 7,i7 in its discretion1 extend for an additional year the term of each initial ,platform ,director appointed pursuant to subparagraph 7,a72 and 7,,ii7 upon a determination by the ,corporation that the ,platform membership does not reflect the diversity or variety of market participants required to conduct the election of the ,platform ,directors under paragraph 7#c71 extend for an additional #b years the term of each initial ,platform ,director appointed pursuant to subparagraph 7,a74 7,d7 ,purpose of the initial ,platform ,directors ,the initial ,platform ,directors shall-- 7i7 draft and enact initial bylaws and other governance documents for the operation of the ,platform1 including policies and procedures pursuant to paragraph 7#a77;,b72 7ii7 establish criteria for membership in the ,platform consistent with the requirements of section #cbc2 7iii7 establish any necessary initial fee structures or usage fee structures under section #cbd2 and 7iv7 organize and conduct the election of the ,platform ,directors from the ,platform members as required by paragraph 7#c74 7#c7 ,elected ,board 7,a7 ,required election2 timing of election ,upon the expiration of the term of the members of the initial ,platform ,directors1 the members of the ,platform shall1 in accordance with subparagraphs 7,b7 through 7,f71 elect new ,platform ,directors4 7,b7 ,composition 7i7 ,diversity ,the ,platform ,directors elected pursuant to this paragraph shall reflect the diverse range of ,platform members1 including large1 mid-size1 and small business members4 7ii7 ,members 7,i7 ,in general ,the ,platform ,directors elected pursuant to this paragraph shall be comprised of #i directors as follows3 7aa7 #h member directors1 including-- 7,,aa7 #g member directors who shall be elected from among representatives of the members in the ,platform1 at least #a of whom shall represent the interests of small mortgage lenders2 and 7,,bb7 #a member director who shall be a representative of a small lender mutual1 as established under section #cae7k74 7bb7 #a independent director4 7,,ii7 ,independent director ,the independent director elected pursuant to this paragraph-- 7aa7 shall not be an affiliate of any member in the ,platform2 and 7bb7 shall have demonstrated knowledge of1 or experience in1 financial management1 financial services1 risk management1 information technology1 or housing finance1 which may include affordable housing finance4 7,c7 ,chairperson ,the ,chairperson of the ,platform ,directors shall be elected from among the ,platform ,directors elected under this paragraph4 7,d7 ,term 7i7 ,in general ,each ,platform ,director elected under this paragraph shall serve for a term of #b years4 7ii7 ,staggered terms ,notwithstanding clause 7i7-- 7,i7 the first elected chairperson of the ,platform ,directors shall be elected to serve for a term of #b years2 and 7,,ii7 of the first #h other ,platform ,directors not elected to serve as chairperson3 7aa7 #d shall be elected to serve for a term of #b years4 7bb7 #d shall be elected to serve an initial term of #a year4 7,e7 ,equal votes ,platform ,directors shall have equal voting rights on any matters before the ,platform ,directors4 7,f7 ,nomination and election procedures ,procedures for the nomination and election of ,platform ,directors shall be prescribed by the bylaws adopted by the ,platform ,directors in a manner consistent with the purposes and provisions of this part4 7,g7 ,restructuring of ,platform ,directors ,the ,platform ,directors elected under this paragraph1 with approval from the ,corporation1 may choose to restructure or reorganize the ,platform ,directors in a manner different than what is specified under this paragraph following a determination by the ,platform ,directors and the ,corporation that a different ,platform board structure or ,platform board composition would better achieve the purposes and obligations of this ,act1 or better serve the owners of the ,platform in a manner consistent with the public interest4 7b7 ,executive officers ,the ,platform ,directors shall appoint a chief executive officer1 chief financial officer1 comptroller1 chief regulatory officer1 and any other officers as the ,platform ,directors deem necessary to carry out the management and administration of the functions and operations of the ,platform4 #cbc4 ,membership in the ,platform 7a7 ,application 7#a7 ,in general ,a person seeking to become a member in the ,platform1 or to be reinstated as a member in the ,platform1 shall file an application with the ,platform ,directors4 7#b7 ,standards ,consistent with achieving a broad membership that includes small mortgage lenders1 as well as large1 mid-size1 and small business members1 the ,platform ,directors shall develop procedures and standards for-- 7,a7 the application of persons seeking to become members in the ,platform2 and 7,b7 the approval of applicants for membership in the ,platform4 7#c7 ,additional standards for approved entities ,the standards for the approval by the ,platform ,directors of an approved entity as a member in the ,platform shall be consistent with and supplement any standards1 requirements1 and obligations applicable to the approved entity under subtitle ,b of this title1 or any other provision of this ,act4 7b7 ,members ,the ,platform ,directors may approve as a member of the ,platform any person that applies for membership in the ,platform pursuant to subsection 7a7 that is-- 7#a7 a mortgage aggregator2 7#b7 a mortgage guarantor2 7#c7 a mortgage originator2 7#d7 a ,federal ,home ,loan ,bank or a subsidiary or joint office approved under section #cab of one or more ,federal ,home ,loan ,banks2 7#e7 a small lender mutual established or approved under section #cae2 or 7#f7 any other market participant1 provided that in the sole determination of the ,platform ,directors1 having such market participant as a member of the ,platform is necessary or helpful to fulfilling the purposes and obligations of the ,platform under section #cbe4 7c7 ,termination ,the ,platform ,directors may terminate membership in the ,platform of any member for failure to adhere to any standards established by the ,platform ,directors4 #cbd4 ,fees 7a7 ,in general ,the ,platform ,directors may assess and collect fees1 and may1 in their discretion1 increase or decrease such fees1 from the members in the ,platform-- 7#a7 for initial membership in the ,platform1 consistent with the requirements of subsection 7b72 7#b7 to maintain ongoing membership in the ,platform2 7#c7 for use of the ,platform1 consistent with the requirements of subsection 7c72 and 7#d7 to cover the ongoing costs of the functions and operations of the ,platform1 including-- 7,a7 the purchase of property1 technology1 and systems developed by either enterprise or others2 7,b7 to develop and invest in new technology2 7,c7 to build a capital base that would be able to offset1 or otherwise mitigate1 losses that might occur due to the potential operational failure of the ,platform2 and 7,d7 to conduct any other activities approved by the ,platform ,directors4 7b7 ,initial fee ,upon approval of its application to become a member in the ,platform1 each new approved member shall pay to the ,platform a fee in an amount to be determined by the ,platform ,directors1 provided that such fee amount is consistent with obtaining a broad membership in the ,platform that includes small mortgage lenders1 as well as large1 mid-size1 and small business members4 7c7 ,usage fees 7#a7 ,establishment ,each member in the ,platform shall pay usage fees1 as such fees are determined by the ,platform ,directors4 7#b7 ,review of fees ,the ,platform ,directors shall1 not less than annually1 review the fee structure established under this subsection and submit any resulting recommendations to amend the fee structure to the ,corporation4 7#c7 ,assessment and measurement 7,a7 ,in general ,except as otherwise provided under subparagraphs 7,b7 and 7,c71 usage fees charged and collected under this subsection shall be equitably assessed and based upon the member's use of the services offered by the ,platform1 as such use is to be measured by the total principal balance of the mortgage loans or mortgage-backed securities securitized for the member through the ,platform4 7,b7 ,tiered fee options ,if the ,platform ,directors determine that certain entities face a barrier to use the ,platform1 the ,platform ,directors may adopt a tiered usage fee structure to promote greater access and a more competitive market for the ,platform that may include differential fee structures for usage fee charges incurred by housing finance agencies1 small mortgage lenders1 ,community ,development ,financial ,institutions1 mission-based nonprofit lenders1 community land trusts1 permanently affordable homeownership programs1 or other organizations selected by the ,corporation4 7,c7 ,tiered fee option for covered and noncovered securities ,the ,platform ,directors may adopt a tiered usage fee structure under this subsection that may include differential fee structures for usage fee charges for the issuance of noncovered securities that differ from the usage fees charged for the issuance of covered securities4 7#d7 ,payment ,usage fees charged under this subsection shall be paid by the member at the time the mortgage loans or mortgage-backed securities are delivered by the member to the ,platform4 7d7 ,corporation review of initial fees and usage fees 7#a7 ,in general ,the ,platform ,directors shall submit any fee structure proposal for initial fees or usage fees under subsection 7b7 or 7c7 to the ,corporation4 ,the ,corporation shall approve any initial fee or usage fee structure proposed by the ,platform ,directors unless the ,corporation determines that the fee structure is not consistent with-- 7,a7 facilitating1 a deep1 liquid1 and resilient secondary mortgage market for mortgage-backed securities2 and 7,b7 the purposes and obligations of the ,platform under section #cbe4 7#b7 ,automatic establishment of fees absent ,corporation disapproval ,if the ,corporation does not issue an order of disapproval of an initial fee or usage fee structure proposed by the ,platform ,directors within #fj days following the submission of the proposed initial fee or usage fee structure to the ,corporation1 the proposed initial fee or usage fee structure shall automatically go into effect for the ,platform and its members4 7#c7 ,impact of ,corporation disapproval ,if the ,corporation disapproves an initial fee or usage fee structure proposed by the ,platform ,directors pursuant to this subsection1 the ,platform ,directors may-- 7,a7 submit to the ,corporation a revised fee or usage fee structure for approval2 or 7,b7 if applicable1 use the existing approved fee or usage fee structure4 #cbe4 ,purposes and obligations of the ,platform 7a7 ,purpose ,the purposes of the ,platform established under section #cba are to-- 7#a7 purchase and receive from its members eligible mortgage loans or securities collateralized by eligible mortgage loans for securitization by issuers as covered securities2 7#b7 issue through the ,platform to its members standardized covered securities1 or other covered securities1 insured by the ,corporation pursuant to this ,act2 7#c7 purchase and receive from its members noneligible mortgage loans or securities not collateralized by eligible mortgage loans for securitization as noncovered securities1 to the extent desired or requested by its members2 and 7#d7 issue to its members standardized noncovered securities1 or other noncovered securities1 that are not insured by the ,corporation pursuant to this ,act1 to the extent desired or requested by its members4 7b7 ,powers and functions ,the powers and functions of the ,platform are to-- 7#a7 develop the ability to issue1 and to issue1 standardized covered securities1 insured by the ,corporation pursuant to this ,act1 in accordance with subsection 7e72 7#b7 develop1 adopt1 and publish standardized securitization documents and agreements 7including1 but not limited to1 uniform pooling1 trust1 and custodial agreements7-- 7,a7 required for all covered securities issued by or through the ,platform in accordance with section #cbf7;a7 7and which shall be made optional for all noncovered securities issued through the ,platform72 and 7,b7 which-- 7i7 shall be drafted in consultation with the ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,department of ,housing and ,urban ,development1 and such other ,federal regulatory agencies as the ,platform ,directors determine appropriate2 7ii7 may rely upon existing documentation and forms required by the enterprises or other ,federal regulatory agencies1 to the extent determined by the ,platform ,directors to be practical or appropriate2 and 7iii7 before being issued through the ,platform1 shall be approved by the ,corporation as being consistent with-- 7,i7 the requirements under section #cbf7;a72 and 7,,ii7 facilitating a deep1 liquid1 and resilient secondary mortgage market for mortgage-backed securities2 7#c7 develop standardized documents approved by the ,corporation for servicing and loss mitigation standards pursuant to section #cad for eligible mortgage loans that collateralize the covered securities issued through the ,platform to its members1 which shall be based on standards set by the ,corporation and which may rely upon existing documentation and forms required by the enterprises or other ,federal or ,state regulatory agencies1 to the extent determined by the ,platform ,directors to be practical or appropriate2 7#d7 as expressly provided in section #cbf7;b77#b77;,f71 develop1 adopt1 and publish the required contractual terms for contracts for noncovered securities issued through the ,platform1 which shall be-- 7,a7 developed in consultation with the ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,department of ,housing and ,urban ,development1 and such other ,federal regulatory agencies as the ,platform ,directors determine appropriate2 and 7,b7 before being issued through the ,platform1 approved by the ,corporation as being consistent with-- 7i7 the requirements under section #cbf7;b72 and 7ii7 facilitating a deep1 liquid1 and resilient secondary mortgage market for mortgage-backed securities2 7#e7 develop1 adopt1 and publish optional standardized securitization documents and agreements 7including1 but not limited to1 uniform pooling1 trust1 and custodial agreements7 tailored for noncovered securities issued through the ,platform1 and which may be used as desired or requested by the members of the ,platform1 in accordance with section #cbf7;c71 and which standardized securitization documents and agreements-- 7,a7 shall be drafted in consultation with the ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,department of ,housing and ,urban ,development1 and such other ,federal regulatory agencies as the ,platform ,directors determine appropriate2 7,b7 may rely upon existing documentation and forms required by the enterprises or other ,federal or ,state regulatory agencies1 to the extent determined by the ,platform ,directors to be practical or appropriate2 and 7,c7 before being issued through the ,platform1 shall be approved by the ,corporation as being consistent with-- 7i7 the requirements under section #cbf7;c72 and 7ii7 facilitating a deep1 liquid1 and resilient secondary mortgage market for mortgage-backed securities2 7#f7 the extent not otherwise provided in paragraphs 7#b71 7#c71 and 7#e71 to endeavor to use or rely upon existing documentation and forms required by the enterprises or other ,federal or ,state regulatory agencies1 to the extent determined by the ,platform ,directors to be practical or appropriate2 7#g7 establish a strong business continuity plan that meets industry best practices and establish sufficient redundancies so that in the event of an operational failure of the ,platform there is sufficient back-up capacity to process payments and issue covered and noncovered securities2 7#h7 verify that the eligible mortgage loans and securities collateralized by eligible mortgage loans purchased and received by the ,platform1 including from any small lender mutual established or approved under section #cae1 for securitization as covered securities1 meet the requirements for covered securities under this ,act and any regulations adopted by the ,corporation pursuant thereto2 7#i7 verify that the noneligible mortgage loans and securities not collateralized by eligible mortgage loans purchased and received by the ,platform1 including from any small lender mutual established or approved under section #cae1 for securitization as noncovered securities1 meet the requirements for noncovered securities under this ,act and any regulations adopted by the ,corporation pursuant thereto2 7#aj7 for the purpose of securitization1 purchase or receive from members of the ,platform-- 7,a7 eligible mortgage loans1 pools of eligible mortgage loans1 securities collateralized by eligible mortgage loans1 or outstanding mortgage-backed securities issued by the enterprises for securitization as covered securities2 and 7,b7 noneligible mortgage loans1 pools of noneligible mortgage loans1 or securities collateralized by noneligible mortgage loans for securitization as noncovered securities1 to the extent desired or requested by members of the ,platform2 7#aa7 for the purpose of securitization1 facilitate the issuance of-- 7,a7 all covered securities of members of the ,platform that are collateralized by eligible mortgage loans1 or outstanding mortgage-backed securities issued by the enterprises2 7,b7 all covered securities of members of the ,platform that are pooled from-- 7i7 a single mortgage originator1 mortgage aggregator1 approved entity1 or regulated entity2 or 7ii7 multiple mortgage originators1 mortgage aggregators1 approved entities1 or regulated entities2 7,c7 noncovered securities collateralized by noneligible mortgage loans received from members of the ,platform2 and 7,d7 noncovered securities collateralized by noneligible mortgage loans received from members of the ,platform that are pooled from-- 7i7 a single mortgage originator1 mortgage aggregator1 or regulated entity2 or 7ii7 multiple mortgage originators1 mortgage aggregators1 or regulated entities2 7#ab7 perform bond administration1 data validation1 and reporting for all covered and noncovered securities issued through the ,platform1 including those issued on behalf of any small lender mutual established or approved under section #cae2 7#ac7 facilitate systems to lower barriers to entry for new mortgage originators and approved entities or access to membership in the ,platform2 7#ad7 provide essential functions necessary to issue standardized securities which may be compatible with the ,to-,be-,announced market1 for covered securities and1 if appropriate1 noncovered securities2 7#ae7 manage operational and systems related risks associated with delivering covered and noncovered securities and receiving eligible and noneligible mortgage loans2 7#af7 develop the capability to offer securitization services to private label issuers2 7#ag7 require the servicing documentation used for mortgage loans that collateralize securities issued through the ,platform to provide a standard method 7which may include the use of a single electronic verification system7 for a mortgagor who has been denied a loan modification to verify such denial at no cost to the mortgagor2 7#ah7 facilitate the issuance of securitizations for multifamily loans1 establish common documentation1 or develop other requirements necessary to permit the ,platform1 or a subsidiary or affiliate thereof1 to be used for multifamily loan securitizations if the ,platform ,directors issue a determination that it would be desirable and practical for the ,platform1 or a subsidiary or affiliate thereof1 to be used to issue or otherwise facilitate multifamily loan securitizations2 and 7#ai7 establish1 not later than the system certification date1 a ,collateral ,valuation ,advisory ,committee-- 7,a7 which shall be comprised of #i members appointed by the ,platform ,directors1 including representatives of appraisers1 appraisal management companies1 mortgage originators 7including small mortgage lenders71 investors1 real estate professionals1 homebuilding professionals1 consumer advocates1 as well as ,federal and ,state appraisal regulatory organizations2 7,b7 the purpose of which shall be to-- 7i7 provide recommendations to the ,platform and the ,corporation regarding secondary mortgage market residential appraisal guidelines1 standards1 and reporting formats consistent with the ,real ,estate ,settlement ,procedures ,act 7#ab ,u4,s4,c4 #bfjc71 the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afca et seq471 and all other applicable ,federal and ,state laws2 and 7ii7 make recommendations regarding the continuation of a repository for valuation reports1 taking into account existing operational structures and contractual arrangements2 and 7,c7 which1 in fulfilling its purpose under this paragraph1 shall1 as appropriate1 consult and coordinate with the ,appraisal ,subcommittee of the ,federal ,financial ,institutions ,examinations ,council established under title ,,xi of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ccca et seq474 7c7 ,prohibited activities ,the ,platform may not-- 7#a7 guarantee any mortgage loans or mortgage-backed securities2 7#b7 assume or hold mortgage loan credit risk2 7#c7 purchase any mortgage loans for cash on a single loan basis for the purpose of securitization2 7#d7 undertake the issuance of any covered securities through the ,platform unless the first loss position is already held by a private entity2 7#e7 own or hold any mortgage loans or mortgage-backed securities for investment purposes2 7#f7 make or be a party to any representation and warranty agreement on any mortgage loans2 or 7#g7 take lender representation and warranty risk4 7d7 ,interoperability with multifamily loan securitization issuance ,the ,platform shall be developed in a manner that may permit1 and would not preclude1 the ,platform1 or any subsidiary or affiliate thereof1 to be used for the issuance of multifamily loan securitizations1 provided that the development of this vehicle for multifamily loan securitizations does not delay the ability of the ,platform to perform its obligations under this section with respect to single-family securities by the system certification date4 7e7 ,timing of ,platform capacity to develop and to issue standardized securities for the single-family covered securities ,not later than #b years following the election of the ,platform ,directors under section #cbb7;a77#c71 or as otherwise permitted under section #fja1 the ,platform shall develop the ,platform's ability to issue1 and issue1 standardized securities for single-family covered securities4 7f7 ,discretion for ,platform ,directors to issue standardized securities for single-family noncovered securities ,the ,platform ,directors may develop an ability for the ,platform to issue standardized securities for single-family noncovered securities1 if the ,platform ,directors determine that sufficient demand exists among the ,platform members for the ,platform to issue such a product4 #cbf4 ,uniform securitization agreements for covered securities and required contractual terms for noncovered securities 7a7 ,required uniform securitization agreements for covered securities issued through the ,platform 7#a7 ,in general ,the ,platform ,directors shall develop standard uniform securitization agreements for all covered securities to be issued through the ,platform1 as required pursuant to section #cbe7;b77#b74 7#b7 ,required terms ,the standard uniform securitization agreements required to be developed under paragraph 7#a7 shall include terms relating to-- 7,a7 pooling and servicing1 including the development of uniform standards and practices consistent with the standards specified by the ,corporation pursuant to section #cad2 7,b7 loss mitigation procedures consistent with those specified by the ,corporation pursuant to section #cad2 7,c7 minimum representations and warranties2 7,d7 indemnification and remedies1 including for the restitution or indemnification of the ,corporation with respect to early term delinquencies of eligible mortgage loans that collateralize a covered security2 7,e7 the requirements of the indenture for mortgage-backed securities that are exempt from the ,trust ,indenture ,act of #aici 7#ae ,u4,s4,c4 #gg;aaa et seq47 and the requirements1 responsibilities1 and duties of trustees1 as set forth in the indenture or pooling and servicing agreement2 7,f7 the qualification1 responsibilities1 and duties of trustees2 and 7,g7 any other terms or standards the ,platform ,directors1 with approval of the ,corporation1 determine to be necessary or appropriate4 7#c7 ,defining representation and warranty violations ,in developing the uniform securitization agreements required under paragraph 7#a71 the ,platform ,directors shall also develop1 adopt1 and publish1 upon approval by the ,corporation1 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 7b7 ,required contractual terms for contracts for all noncovered securities issued through the ,platform 7#a7 ,in general ,all contracts for noncovered securities issued through the ,platform shall include a set of required contractual terms relating to the obligations of the parties to each contract4 7#b7 ,required contractual terms ,the required contractual terms for agreements for all noncovered securities issued through the ,platform shall provide the obligations of the parties to a contract including the following considerations3 7,a7 ,pooling and servicing4 7,b7 ,loss mitigation procedures4 7,c7 ,representations and warranties4 7,d7 ,indemnification and remedies4 7,e7 ,the qualification1 responsibilities1 and duties of trustees1 including1 but not limited to1 requirements set forth in the indenture or pooling and servicing agreement1 or any applicable provisions of the ,trust ,indenture ,act of #aici 7#ae ,u4,s4,c4 #gg;aaa et seq474 7,f7 ,other terms or standards the ,platform ,directors1 with approval of the ,corporation1 determine to be necessary or appropriate to protect or facilitate the operation of the ,platform4 7#c7 ,permissible adjustments ,parties to contracts for noncovered securities described under this subsection may supplement the required contractual terms identified under paragraph 7#b7 with any additional contractual terms so desired by the parties to contracts for noncovered securities issued through the ,platform4 7c7 ,optional uniform securitization agreements for noncovered securities issued through the ,platform ,the ,platform ,directors may develop optional uniform securitization agreements for use by noncovered securities that are issued through the ,platform that include standards and obligations that are different from those included in the uniform securitization agreements for covered securities as set forth in subsection 7a71 provided that-- 7#a7 the agreements include the required contractual terms required for noncovered securities that are issued through the ,platform set forth in subsection 7b72 and 7#b7 the ,platform ,directors determine that sufficient demand exists among the members of the ,platform for the ,platform to issue such optional uniform securitization agreements for use by noncovered securities4 7d7 ,agreements for noncovered securities issued off the ,platform ,nothing in this section shall preclude1 or require1 noncovered securities that are not issued through the ,platform from adopting the-- 7#a7 uniform securitization agreements for covered securities issued through the ,platform developed under subsection 7a72 7#b7 optional uniform securitization agreements for noncovered securities issued through the ,platform developed under subsection 7c72 or 7#c7 required contractual terms for contracts for noncovered securities issued through the ,platform developed under subsection 7b74 7e7 ,consultation required ,the ,platform ,directors shall consult with market participants1 including servicers1 originators1 issuers1 and mortgage investors1 and community stakeholders and representatives of homeowners in developing-- 7#a7 the uniform securitization agreements pursuant to subsection 7a72 7#b7 the required contractual terms for contracts for noncovered securities issued through the ,platform pursuant to subsection 7b72 and 7#c7 the optional uniform securitization agreements for noncovered securities issued through the ,platform pursuant to subsection 7c74 #cbg4 ,approval and standards for collateral risk managers 7a7 ,standards for approval of collateral risk managers ,the ,corporation shall develop1 adopt1 and publish standards for the use of collateral risk managers who may work with the ,platform1 as well as trustees and servicers of mortgage-backed securities to manage mortgage loan collateral1 including standards with respect to-- 7#a7 tracking mortgage loan repurchases2 7#b7 compliance with obligations under any applicable securitization documents2 and 7#c7 managing-- 7,a7 any disputes2 and 7,b7 the resolution process4 7b7 ,additional required standards ,the standards required under subsection 7a7 shall include the review of foreclosure loss mitigation programs established under section #cad for approved servicers4 ,,ii ,transparency in market operations #cca4 ,review of loan documents2 disclosures 7a7 ,in general ,the ,corporation1 in consultation and coordination with the ,securities and ,exchange ,commission1 shall1 by rule-- 7#a7 require market participants1 as appropriate1 to make available to private market investors in connection with the first loss position on a covered security1 including through use of the ,securitization ,platform established under section #cba1 all-- 7,a7 documents relating to eligible mortgage loans collateralizing that covered security2 and 7,b7 servicing reports of the approved servicer relating to such eligible mortgage loans2 7#b7 require market participants1 as appropriate1 to disclose to investors information that is substantially similar1 to the extent practicable1 to disclosures required of issuers of asset-backed securities under section #ac7;a7 or #ae7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7a71 #gho7d77 until the covered security is fully paid1 other than information that the ,corporation determines1 in consultation and coordination with the ,securities and ,exchange ,commission1 is not applicable to a covered security1 a particular type of covered security1 or eligible mortgage loans collateralizing a covered security2 7#c7 require that all disclosures must be made consistent with the antifraud provisions of the ,federal securities laws2 and 7#d7 establish the timing1 frequency1 and manner in which such access and disclosures are made4 7b7 ,access and disclosures ,in prescribing the rules required under subsection 7a71 the ,corporation shall take into consideration-- 7#a7 the potential cost of such access and disclosures2 7#b7 the effect of such access and disclosures on liquidity in the housing finance market2 and 7#c7 the interests of investors4 7c7 ,privacy protections ,in prescribing the rules required under subsection 7a71 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 #ccb4 ,national mortgage database 7a7 ,transfer ,effective on the system certification date1 there are transferred to the ,corporation all functions of the ,federal ,housing ,finance ,agency of the ,corporation relating to the rights1 responsibilities1 and obligations of the ,federal ,housing ,finance ,agency pursuant to the ,inter-,agency ,agreement 7or any successor thereto7 entered into by the ,federal ,housing ,finance ,agency and the ,bureau of ,consumer ,financial ,protection with respect to the development1 construction1 maintenance1 operation1 and funding of the ,national ,mortgage ,database4 7b7 ,privacy ,in exercising authority under this section1 the ,corporation and the ,bureau of ,consumer ,financial ,protection shall-- 7#a7 take steps to ensure the privacy of consumers1 including prohibiting the identification of specific borrowers2 7#b7 minimize the collection and storage of personally identifiable information2 and 7#c7 consider all statutes1 rules1 and regulations relating to the privacy of consumer credit information and personally identifiable information4 7c7 ,duplication ,the ,chairperson and the ,director of the ,bureau of ,consumer ,financial ,protection shall take all reasonable steps necessary to minimize conflicts and duplication of the data required under this section with data collected1 published1 or otherwise obtained by other ,federal regulators1 including the data disclosure system required under section #cjd7;f7 of the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhjc7;f774 7d7 ,minimize burden on reporting entities ,if #b or more entities are required by this section to report the same mortgage data relating to the same mortgage loan1 the entities may1 by agreement that is clearly communicated to the ,corporation and the ,bureau1 determine that only #a of such entities will report the data4 ,if #a of such entities reports the required mortgage data1 it shall not be a violation of this section for the other entities not to report the data4 7e7 ,access to data ,the ,corporation and the ,bureau of ,consumer ,financial ,protection shall each establish1 and cause to be published in the ,federal ,register1 the initial date on which-- 7#a7 the public shall begin to have access to any data put into the public domain1 in accordance with this section and in a manner that is easily accessible to the public2 and 7#b7 all mortgage data is required to be put into the public domain1 in accordance with this section4 #ccc4 ,working group on electronic registration of mortgage loans 7a7 ,establishment ,not later than #ahj days after the agency transfer date1 the ,corporation shall establish a working group to study-- 7#a7 whether the establishment of a national electronic mortgage registry system is necessary2 and 7#b7 how to establish1 operate1 and maintain a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans4 7b7 ,composition ,the working group established under subsection 7a7 shall be composed of the following3 7#a7 ,the ,chairperson or the ,chairperson's designee4 7#b7 ,the ,director of the ,bureau of ,consumer ,financial ,protection or the ,director's designee4 7#c7 ,the ,chairman of the ,federal ,deposit ,insurance ,corporation or the ,chairman's designee4 7#d7 ,the ,chairman of the ,securities and ,exchange ,commission or the ,chairman's designee4 7#e7 ,the ,chairman of the ,federal ,reserve ,board or the ,chairman's designee4 7#f7 ,the ,comptroller of the ,currency or the ,comptroller's designee4 7#g7 ,a representative from the ,federal ,home ,loan ,bank ,system4 7#h7 ,a representative from a ,federal ,reserve ,bank4 7#i7 ,individuals selected by the ,chairperson from among the following3 7,a7 ,state and local government agencies and representatives1 including housing finance agencies and those with expertise in property records1 electronic recording1 and the ,uniform ,commercial ,code4 7,b7 ,the ,national ,conference of ,commissioners on ,uniform ,state ,laws 7,c7 ,industry groups1 including single-family and multifamily mortgage originators1 title insurers1 servicers1 issuers1 and investors4 7,d7 ,consumer groups1 including representatives of homeowners1 community stakeholders1 and housing organizations4 7,e7 ,individuals with technical expertise1 including those with expertise in designing1 constructing and maintaining mortgage databases4 7c7 ,duties ,the duties of the working group established under subsection 7a7 are to assess and develop recommendations on the necessity for and feasibility of establishing1 operating1 and maintaining a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans to document custody and registration of mortgage loans1 notes1 titles1 liens1 deeds of trust1 and other security instruments1 in order to automate1 centralize1 standardize1 and improve the tracking of changes in-- 7#a7 the ownership of mortgage loans1 deeds of trust1 and other security instruments2 7#b7 the ownership of the beneficial interest in promissory notes secured by any mortgage loan1 deed of trust1 or other security instrument2 7#c7 the servicing rights for any mortgage loan1 deed of trust1 or other security instrument2 and 7#d7 such other information as the ,corporation may require4 7d7 ,considerations ,in carrying out the duties under this section1 the working group established under subsection 7a7 shall consider-- 7#a7 the cost to ,states and localities1 including any impact on revenue generated by local recording of mortgage loan documents2 7#b7 the feasibility of allowing ,states and localities to continue to collect fees and revenue2 7#c7 the implications of data accuracy on judicial or non-judicial foreclosure2 7#d7 the need to minimize conflicting mortgage loan registry requirements2 7#e7 the need to provide consumers with access to key information about the ownership and servicing of their mortgage loans2 7#f7 the need to provide data accuracy1 security1 and privacy2 7#g7 existing ,state real property and commercial laws and any such laws in development1 including an electronic mortgage registry law developed as a uniform ,state law proposal2 7#h7 the costs and benefits of developing and maintaining a national mortgage registry system1 including any potential impact on consumer mortgage credit and industry participants2 7#i7 the feasibility of using existing industry standards and capabilities in the operation of a national mortgage registry system2 and 7#aj7 any research1 reports1 or other work undertaken by outside experts1 including ,federal and ,state entities4 7e7 ,report ,not later than #b years after the date on which the working group is established under subsection 7a71 the working group shall issue a publicly available report1 which shall-- 7#a7 include recommendations-- 7,a7 as to whether the establishment of a national electronic mortgage registry system is necessary or appropriate in the public interest or for the protection of the ,mortgage ,insurance ,fund2 and 7,b7 on how to establish1 operate1 and maintain a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans2 and 7#b7 if the working group recommends that the establishment of the national electronic mortgage registry system is necessary or appropriate under paragraph 7#a71 outline the minimum requirements for such registry1 which shall-- 7,a7 include considerations for the development and implementation of electronic mortgage registry systems by ,state and local government agencies1 including requirements to ensure accurate reporting to such systems2 and 7,b7 satisfy the recommendations of this report4 7f7 ,rulemaking 7#a7 ,in general ,beginning #e years after publication of the report under subsection 7e71 the ,corporation may1 by rule1 establish a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans1 deeds of trust1 or other security instruments in accordance with the findings of the report if-- 7,a7 the ,corporation determines that electronic mortgage registry systems have not been created by ,state and local government agencies in accordance with the minimum requirements established in the report2 and 7,b7 the establishment of a national electronic mortgage registry system for single-family mortgage loans and multifamily mortgage loans remains necessary or appropriate in the public interest or for the protection of the ,mortgage ,insurance ,fund4 7#b7 ,conflicting reports ,if the ,corporation establishes a national electronic mortgage registry system under paragraph 7#a71 the ,corporation shall provide approved entities a reasonable amount of time to correct a filing made in the national electronic mortgage registry system established under paragraph 7#a7 that is in direct conflict with any filing in a ,state or local real property recording system4 7#c7 ,authority to extend establishment of registries ,the ,corporation1 in consultation with appropriate ,state and local government agencies responsible for real property recordation1 may extend the period of time provided under paragraph 7#a7 for a single period of not more than #e years if the ,corporation determines that the extension is necessary or appropriate4 7#d7 ,consultation and coordination with ,state and local agencies ,to promote consistency in and minimize disruption to the housing finance system and systems for the local recording of mortgage loan documents1 the ,corporation shall consult and coordinate with appropriate ,state and local government agencies responsible for real property recordation when developing and issuing rules under this subsection4 7#e7 ,requirements on rules ,the rules and standards promulgated under this section shall recognize and protect valid perfected security interests in registered mortgage-related documents4 7g7 ,rules of construction 7#a7 ,limitation on liability ,nothing in this section shall be construed as implying or establishing a private right of action against an approved entity for filings made to a national electronic mortgage registry system established under subsection 7f77#a7 or other filing actions taken pursuant to subsection 7f74 7#b7 ,limitation on supervisory or enforcement authority ,nothing in this section shall be construed as authorizing the ,corporation1 before the establishment of a national electronic mortgage registry system under subsection 7f77#a71 to exercise supervisory or enforcement authority with respect to an approved entity relating to a real property filing action in a ,state or local real property recording system by the approved entity4 7#c7 ,preemption ,nothing in this section shall be construed as preempting1 altering1 annulling1 exempting1 or affecting the applicability of any ,state or local law1 including those laws relating to real property recording or foreclosure4 #ccd4 ,multiple lender issues ,with respect to the dwelling of a borrower that serves as security for an eligible mortgage loan1 if the borrower enters into any credit transaction that would result in the creation of a new mortgage loan or other credit lien on such dwelling where the loan-to-value ratio of such credit transaction amount is #hj percent or more1 the creditor 7as defined in section #ajbf4b7;a77#ag7 of title #ab of the ,code of ,federal ,regulations7 shall notify the creditor of the senior eligible mortgage loan within #cj days after consummation of such transaction4 #cce4 ,required harmonization of standards within eligible mortgage criteria 7a7 ,in general ,the ,corporation shall consult and coordinate with the ,bureau of ,consumer ,financial ,protection to ensure that the minimum standards issued by the ,corporation with respect to eligible single-family mortgage loans pursuant to section #b7bi7 remain1 to the greatest extent possible1 substantially similar to rules promulgated by the ,bureau pursuant to section #abi;,c7b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7b77 provided that any revisions to1 or amendments of1 such minimum standards issued by the ,corporation-- 7#a7 conform to all of the other requirements set forth under section #b7bi72 and 7#b7 in the determination of the ,corporation1 do not negatively impact the ,mortgage ,insurance ,fund4 7b7 ,annual report on any changes or differences in rules ,the ,corporation shall1 on an annual basis1 submit to the ,chair and ,ranking ,member of the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,chair and ,ranking ,member of the ,committee on ,financial ,services of the ,house of ,representatives a report that-- 7#a7 describes any changes to the minimum standards identified in subsection 7a72 7#b7 describes the economic analysis developed and used by the ,corporation for any changes described under paragraph 7#a7 in order to ensure such changes do not violate the duties of the ,corporation to protect the ,mortgage ,insurance ,fund2 and 7#c7 identifies any changes that occurred and differences that exist between the minimum standards developed1 adopted1 and maintained by the ,corporation and the rules promulgated by the ,bureau pursuant to section #abi;,c7b7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7b774 ,,iv ,,fhfa and ,,fmic ,transition #dja4 ,definitions ,in this title-- 7#a7 the term ,director means-- 7,a7 during the period beginning on the date of enactment of this ,act and ending on the day before the agency transfer date1 the ,director of the ,existing ,agency2 and 7,b7 on and after the agency transfer date1 the ,director of the ,federal ,housing ,finance ,agency of the ,corporation appointed under section #djb7;a77#b72 7#b7 the term ,existing ,agency means the ,federal ,housing ,finance ,agency1 as constituted on the day before the agency transfer date2 7#c7 the term function means any duty1 obligation1 power1 authority1 responsibility1 right1 privilege1 activity1 or program2 7#d7 the term regulated entity has the same meaning as in section #acjc7bj7 of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #dejb7bj772 and 7#e7 the term ,transition ,committee means the ,federal ,mortgage ,insurance ,corporation ,transition ,committee established under section #djd7;a77#a74 #djb4 ,,fhfa transition 7a7 ,establishment 7#a7 ,in general ,effective on the agency transfer date1 there is established in the ,corporation the ,federal ,housing ,finance ,agency1 which shall be maintained as a distinct entity within the ,corporation4 7#b7 ,director ,the ,federal ,housing ,finance ,agency shall be headed by a ,director1 who shall be-- 7,a7 appointed by the ,president1 by and with the advice and consent of the ,senate2 and 7,b7 a non-voting member of the ,board of ,directors4 7b7 ,federal ,housing ,finance ,agency ,transfer 7#a7 ,transfer of property and functions ,effective on the agency transfer date and unless otherwise specified by this ,act1 all property and functions of the ,federal ,housing ,finance ,agency are transferred to the ,federal ,housing ,finance ,agency of the ,corporation4 7#b7 ,incumbent ,director ,the individual serving as the ,director of the ,existing ,agency on the day before the agency transfer date may serve as the ,director of the ,federal ,housing ,finance ,agency of the ,corporation until the end of the term of such individual as ,director of the ,existing ,agency under section #acab7;b77#b7 of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #deab7;b77#b771 as in effect on the day before the agency transfer date4 7#c7 ,transition chairperson 7,a7 ,in general ,during the period beginning on the agency transfer date and ending on the date on which the first individual is appointed as ,chairperson under section #bjb1 the ,director shall serve as the ,transition ,chairperson of the ,corporation and1 except as provided in subparagraph 7,b71 shall exercise all authorities of the ,chairperson1 unless stated otherwise4 7,b7 ,limitation on authority ,in serving as the ,transition ,chairperson of the ,corporation pursuant to subparagraph 7,a71 the ,director shall not have the authority to establish any rule under section #b or any rule relating to approved entities under title ,,iii4 7c7 ,powers and duties 7#a7 ,in general ,the ,director of the ,federal ,housing ,finance ,agency of the ,corporation shall-- 7,a7 retain and exercise all powers1 including conservatorship and receivership powers1 as amended by this ,act1 of the ,director of the ,existing ,agency on the day before the agency transfer date relating to the ,federal ,home ,loan ,bank ,system1 the ,federal ,home ,loan ,banks1 and the enterprises2 7,b7 manage and implement actions authorized by the ,corporation related to the transition to the new housing finance system that impact the conservatorship or receivership of regulated entities2 and 7,c7 consult with other members of the ,transition ,committee and the ,board of ,directors as may be appropriate to fulfill the requirements of this ,act4 7#b7 ,autonomy of ,,fhfa ,except as provided in section #fjd7;a77#b71 or as otherwise specifically provided in this ,act1 the ,chairperson and the ,board of ,directors may not-- 7,a7 intervene in any matter or proceeding before the ,director1 unless otherwise specifically provided by law2 7,b7 appoint1 direct1 or remove any officer or employee of the ,federal ,housing ,finance ,agency of the ,corporation2 or 7,c7 merge or consolidate the ,federal ,housing ,finance ,agency of the ,corporation1 or any of the functions or responsibilities of the ,federal ,housing ,finance ,agency of the ,corporation1 with any division1 office1 or other component of the ,corporation4 7d7 ,agency expenditures and budget 7#a7 ,in general ,after the agency transfer date1 the ,director of the ,federal ,housing ,finance ,agency of the ,corporation-- 7,a7 except as provided in paragraph 7#b71 may obligate and expend amounts available to the ,federal ,housing ,finance ,agency2 and 7,b7 shall submit regular updates to the ,board of ,directors4 7#b7 ,limitation on amount 7,a7 ,before ,chairperson appointed ,during the period beginning on the agency transfer date and ending on the date on which the first individual is appointed as ,chairperson under section #bjb1 the ,director shall require approval from the ,transition ,committee for any agency capital expenditure in excess of #e1jjj1jjj4 7,b7 ,chairperson appointed ,on and after the date on which the first individual is appointed as ,chairperson under section #bjb1 the ,director shall require approval from the ,board of ,directors for any agency capital expenditure in excess of #e1jjj1jjjj4 7e7 ,cooperation ,during the period beginning on the date of enactment of this ,act and ending on the system certification date1 the ,board of ,directors and the ,director shall cooperate and coordinate in the exercise of their respective authorities to facilitate and achieve an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the ,corporation with minimum disruption in the availability of mortgage credit4 7f7 ,coordination and continuation of certain actions 7#a7 ,in general ,all regulations1 orders1 determinations1 and resolutions described in 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 ,federal ,housing ,finance ,agency of the ,corporation until modified1 terminated1 set aside1 or superseded in accordance with applicable law by the ,federal ,housing ,finance ,agency of the ,corporation1 any court of competent jurisdiction1 or operation of law4 7#b7 ,applicability ,a regulation1 order1 determination1 or resolution is described in this paragraph if it-- 7,a7 was issued1 made1 prescribed1 or allowed to become effective by-- 7i7 the ,existing ,agency2 7ii7 the ,federal ,housing ,finance ,board2 or 7iii7 a court of competent jurisdiction1 and relates to functions transferred by this section2 7,b7 relates to the performance of functions that are transferred by this section2 and 7,c7 is in effect on the agency transfer date4 7g7 ,use of agency services ,any agency1 department1 or other instrumentality of the ,united ,states1 and any successor to any such agency1 department1 or instrumentality1 which was providing supporting services to the ,existing ,agency before the agency transfer date in connection with functions that are transferred to the ,federal ,housing ,finance ,agency of 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 7h7 ,savings provisions 7#a7 ,existing rights1 duties1 and obligations not affected ,subsection 7a7 shall not affect the validity of any right1 duty1 or obligation of the ,united ,states1 the ,director of the ,existing ,agency1 or any other person1 which-- 7,a7 arises under-- 7i7 the ,safety and ,soundness ,act2 7ii7 the ,federal ,national ,mortgage ,association ,charter ,act2 7iii7 the ,federal ,home ,loan ,mortgage ,corporation ,act2 or 7iv7 any other provision of law applicable with respect to the ,existing ,agency2 and 7,b7 existed on the day before the agency transfer date4 7#b7 ,continuation of suits ,no action or other proceeding commenced by or against the ,director of the ,existing ,agency in connection with functions that are transferred to the ,federal ,housing ,finance ,agency of the ,corporation shall abate by reason of the enactment of this ,act1 except that the ,director of the ,federal ,housing ,finance ,agency of the ,corporation shall be substituted for the ,director of the ,existing ,agency as a party to any such action or proceeding4 7i7 ,technical and conforming amendments 7#a7 ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib ,the ,safety and ,soundness ,act 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 established under section #acaa and inserting the ,federal ,housing ,finance ,agency within the ,federal ,mortgage ,insurance ,corporation established under section #djb7;a77#a7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad2 and 7ii7 in paragraph 7#i71 by striking ,federal ,housing ,finance ,agency and inserting ,agency2 7,b7 in section #acaa7;a71 by striking established and all that follows through ,government and inserting established in the ,federal ,mortgage ,insurance ,corporation1 the ,federal ,housing ,finance ,agency1 which shall be maintained as a distinct entity within the ,federal ,mortgage ,insurance ,corporation2 7,c7 in section #acab-- 7i7 in subsection 7a7-- 7,i7 in the heading1 by striking ,establishment of position and inserting ,director2 and 7,,ii7 by striking1 established the position of2 and 7ii7 in subsection 7b77#a71 by striking by the ,president and all that follows through housing finance and inserting in accordance with section #djb7;a77#b7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad2 and 7,d7 in section #acfg-- 7i7 in subsection 7a77#g71 by striking ,when acting and inserting ,except as may be provided in section #fjd7;a77#b7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad1 or as otherwise specifically provided for in such ,act1 when acting2 and 7ii7 by amending subsection 7b77#b77;,d7 to read as follows3 7,d7 ,power as conservator 7i7 ,enterprises ,on and after the agency transfer date1 as that term is defined in section #b of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad1 the ,agency shall1 as conservator1 take such actions as are necessary-- 7,i7 to wind down the operations of the enterprises in an orderly manner that complies with the requirements of such ,act2 7,,ii7 to manage the affairs1 assets1 and obligations of the enterprises and to operate the enterprises in compliance with the requirements of such ,act2 7,,iii7 to undertake and carry out any sale1 transfer1 or disposition authorized in sections #cae7;c71 #cba7;d71 #fjd7;i77#b71 #gja7;b71 or #gjb of such ,act in order to facilitate the orderly transition to the new housing finance system authorized by such ,act2 and 7,,iv7 to maintain liquidity and stability in the secondary mortgage market until such time as the enterprises shall have no authority to conduct new business1 pursuant to title ,,vi of such ,act4 7ii7 ,federal ,home ,loan ,banks ,the ,corporation may1 as conservator1 take such actions as are-- 7,i7 necessary to put a ,federal ,home ,loan ,bank in a sound and solvent condition2 and 7,,ii7 appropriate to carry on the business of a ,federal ,home ,loan ,bank and preserve and conserve the assets and property of the ,federal ,home ,loan ,bank4 4 7#b7 ,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 ,chairman of the ,director of ,governors each place that term appears and inserting ,chairman of the ,board of ,governors2 and 7,b7 in section #b-- 7i7 in paragraph 7#aa71 by striking ,federal ,housing ,finance ,agency and inserting ,agency2 and 7ii7 in paragraph 7#ab71 by striking the ,federal ,housing ,finance ,agency and all that follows through the period at the end and inserting the ,federal ,housing ,finance ,agency within the ,federal ,mortgage ,insurance ,corporation established under section #djb7;a77#a7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 7#c7 ,federal ,deposit ,insurance ,act ,the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is amended-- 7,a7 in section #aa7t77#b77;,a71 by inserting after clause 7vii7 the following3 7viii7 ,the ,federal ,mortgage ,insurance ,corporation4 2 and 7,b7 in section #ah7x7-- 7i7 by inserting the ,federal ,mortgage ,insurance ,corporation1 before any ,federal banking agency each place that term appears2 and 7ii7 by inserting ,corporation1 after such ,bureau1 each place that term appears4 7#d7 ,federal ,financial ,institutions ,examination ,council ,act of #aigh ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is amended-- 7,a7 in section #ajjd7;a7-- 7i7 by redesignating paragraphs 7#e7 and 7#f7 as paragraphs 7#f7 and 7#g71 respectively2 and 7ii7 by inserting after paragraph 7#d7 the following3 7#e7 the ,chairman of the ,federal ,mortgage ,insurance ,corporation1 2 7,b7 in section #ajaa1 in first sentence1 by inserting ,federal ,mortgage ,insurance ,corporation1 after ,financial ,protection12 and 7,c7 by inserting at the end the following3 #ajab4 ,establishment of the ,subcommittee on ,mortgage ,servicing ,there shall be within the ,council a subcommittee to be known as the ,subcommittee on ,mortgage ,servicing1 which shall consist of designees of heads of the ,federal financial institution regulatory agencies1 the ,bureau of ,consumer ,financial ,protection1 the ,federal ,mortgage ,insurance ,corporation1 the ,federal ,housing ,finance ,agency1 and a representative of the ,state ,liaison ,committee established under section #ajjg4 4 7#e7 ,,firrea ,section #abaf of the ,financial ,institutions ,reform1 ,recovery1 and ,enhancement ,act of #aihi 7#ab ,u4,s4,c4 #ahcc;e7 is amended-- 7,a7 in subsection 7a71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,b7 in subsection 7c71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7#f7 ,housing and ,urban-,rural ,recovery ,act of #aihc ,the first sentence of section #dfi of the ,housing and ,urban-,rural ,recovery ,act of #aihc 7#ab ,u4,s4,c4 #agjap-#a7 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 after cooperation of 4 7#g7 ,paperwork ,reduction ,act ,section #cejb7e7 of title #dd1 ,united ,states ,code 7commonly known as the ,paperwork ,reduction ,act71 is amended by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7#h7 ,public ,law #ic-die ,section #aaa of ,public ,law #ic-die 7#ab ,u4,s4,c4 #bej7 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7#i7 ,right to ,financial ,privacy ,act of #aigh ,section #aaja7g7 of the ,right to ,financial ,privacy ,act of #aigh 7#ab ,u4,s4,c4 #cdja7g77 is amended-- 7,a7 in subparagraph 7,h71 by striking 2 or and inserting a semicolon2 7,b7 in subparagraph 7,i71 by striking 2 and and inserting 2 or2 and 7,c7 by adding at the end the following3 7,j7 the ,federal ,mortgage ,insurance ,corporation2 and 4 7#aj7 ,title #e1 ,united ,states ,code ,title #e1 ,united ,states ,code1 is amended-- 7,a7 in section #ecac1 by inserting the following new item3 ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 2 and 7,b7 in section #cacb7;a77#a77;,d7-- 7i7 by striking ,supervision11 and inserting ,supervision12 and 7ii7 by inserting the ,federal ,mortgage ,insurance ,corporation1 after ,federal ,housing ,finance ,agency14 7#aa7 ,title #ah1 ,united ,states ,code ,title #ah1 ,united ,states ,code1 is amended by striking ,federal ,housing ,finance ,agency each place such term appears in each of sections #bab1 #feg1 #ajjf1 #ajad1 and #aije and inserting ,federal ,mortgage ,insurance ,corporation4 7#ab7 ,federal ,credit ,union ,act ,section #ajg7g77;,e7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg7g77;,e77 is amended by inserting the ,federal ,mortgage ,insurance ,corporation1 before the ,federal ,national ,mortgage ,association4 7#ac7 ,bank ,holding ,company ,act ,section #e7;c77#e77;,b7 of the ,bank ,holding ,company ,act 7#ab ,u4,s4,c4 #ahdd7;c77#e77;,b77 is amended-- 7,a7 in clause 7iv71 by striking 2 or and inserting a semicolon2 7,b7 in clause 7v71 by striking the period at the end and insert 2 or2 and 7,c7 by adding at the end the following3 7vi7 an approved guarantor approved under section #caa of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 4 7#ad7 ,congressional ,budget ,act of #aigd ,section #ejd7;c7 of the ,congressional ,budget ,act of #aigd 7#b ,u4,s4,c4 #ffa;c7c77 is amended-- 7,a7 in paragraph 7#a71 by striking or2 7,b7 by redesignating paragraph 7#b7 as paragraph 7#c72 and 7,c7 by inserting after paragraph 7#a7 the following3 7#b7 are credit programs of the ,federal ,mortgage ,insurance ,corporation2 or 4 7#ae7 ,effective date ,the amendments made by this subsection shall take effect on the agency transfer date4 #djc4 ,transfer and rights of employees of the ,,fhfa 7a7 ,transfer 7#a7 ,in general ,effective on the agency transfer date1 each employee of the ,existing ,agency1 including each employee of the ,office of the ,inspector ,general of the ,existing ,agency1 who is in good standing1 shall be transferred to the ,corporation for employment1 and such transfer shall be deemed a transfer of function for purposes of section #cejc of title #e1 ,united ,states ,code4 7#b7 ,assignment 7,a7 ,in general ,except as provided in subparagraph 7,b71 an employee transferred under paragraph 7#a7 shall be appointed to a position in the ,federal ,housing ,finance ,agency of the ,corporation4 7,b7 ,exception ,on and after the agency transfer date1 the ,chairperson1 in consultation with the ,director of the ,federal ,housing ,finance ,agency of the ,corporation1 may reassign an employee transferred under paragraph 7#a7 to a component of the ,corporation other than the ,federal ,housing ,finance ,agency of the ,corporation1 if the reassignment is in the best interest of the ,corporation4 7b7 ,guaranteed positions 7#a7 ,in general ,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 7#b7 ,no involuntary separation or reduction ,an employee transferred under subsection 7a7 holding a permanent position on the day immediately preceding the transfer may not be involuntarily separated or reduced in grade or compensation during the #ab-month period beginning on the date of transfer1 except for cause1 or1 in the case of a temporary employee1 separated in accordance with the terms of the appointment of the employee4 7c7 ,appointment authority for excepted and senior executive service employees 7#a7 ,in general ,in the case of an employee occupying a position in the excepted service or the ,senior ,executive ,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-- 7,a7 a position excepted from the competitive service because of its confidential1 policymaking1 policy-determining1 or policy-advocating character2 or 7,b7 a noncareer appointee in the ,senior ,executive ,service 7within the meaning of section #cacb7;a77#g7 of title #e1 ,united ,states ,code74 7d7 ,employee benefit programs 7#a7 ,in general ,any employee of the ,existing ,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 ,existing ,agency or the ,corporation1 as applicable1 including insurance1 to which such employee belongs on the date of the transfer under subsection 7a71 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 ,existing ,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 7e7 ,enterprise employees ,to ensure an orderly transition to the new housing finance system established under this ,act and to facilitate the organization1 formation1 and competency of the ,corporation1 the ,corporation may hire employees from the enterprises4 7f7 ,reorganization ,if the ,corporation determines that a reorganization of the workforce is required1 the 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 #djd4 ,transition ,committee 7a7 ,establishment and purpose 7#a7 ,in general ,effective on the date of enactment of this ,act1 there is established the ,federal ,mortgage ,insurance ,corporation ,transition ,committee4 7#b7 ,purpose ,the purpose of the ,transition ,committee shall be to-- 7,a7 develop a plan to facilitate an orderly transition to a new housing finance system in accordance with this ,act2 and 7,b7 provide advice to the ,transition ,chairperson or the ,board when consulted4 7b7 ,composition 7#a7 ,members ,the ,transition ,committee shall be comprised of-- 7,a7 the ,director2 7,b7 the ,chairman of the ,federal ,deposit ,insurance ,corporation2 7,c7 the ,comptroller of the ,currency2 7,d7 the ,chairperson2 and 7,e7 any member of the ,board of ,directors4 7#b7 ,chairperson 7,a7 ,before ,chairperson of ,corporation ,until the date on which the first individual is appointed as ,chairperson under section #bjb1 the ,director shall serve as the ,chairperson of the ,transition ,committee4 7,b7 ,chairperson of ,corporation appointed ,on and after the date on which the first individual is appointed as ,chairperson under section #bjb1 the ,chairperson shall serve as the ,chairperson of the ,transition ,committee4 7#c7 ,acting officials may serve ,in the event of a vacancy in the office of the head of a member agency1 and pending the appointment of a successor1 or during the absence or disability of the head of a member agency1 the acting head of the member agency shall serve as a member of the ,transition ,committee in the place of that agency head4 7#d7 ,staff ,as necessary to carry out the duties of the ,transition ,committee1 the ,chairperson of the ,transition ,committee may-- 7,a7 before the agency transfer date1 use employees of the ,existing ,agency2 and 7,b7 on and after the agency transfer date1 use employees of the ,corporation4 7c7 ,transition plan 7#a7 ,development ,the ,transition ,committee shall develop the transition plan required by section #fjb4 7#b7 ,approval ,the transition plan may not be submitted to ,congress under section #fjb1 unless it is approved by a majority of the ,transition ,committee4 7d7 ,dissolution ,the ,transition ,committee shall be dissolved upon the later of-- 7#a7 the date on which the first individual is appointed as ,chairperson under section #bjb2 or 7#b7 the date on which the transition plan is submitted to ,congress in accordance with subsection 7c77#b7 and section #fjb4 #dje4 ,transition assessments 7a7 ,in ,general ,section #acaf of the ,safety and ,soundness ,act 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 ,,vi of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad or any other provision of law1 for the period beginning on the date of enactment of this subsection and ending on the system certification date 7as that date is set forth under title ,,vi of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad71 the ,agency 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 ,federal ,mortgage ,insurance ,corporation1 including those purposes detailed in section #cjc7;e77#f7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 ,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 7,a7 ,amounts received by the ,corporation ,amounts received by the ,corporation from assessments imposed under section #acaf7;i7 of the ,safety and ,soundness ,act shall be deposited by the ,corporation in the ,mortgage ,insurance ,fund4 7,b7 ,amounts received by the ,existing ,agency ,amounts received by the ,existing ,agency beginning on the date of enactment of this ,act until the agency transfer date from assessments imposed under section #acaf7;i7 of the ,safety and ,soundness ,act shall be held in an account of the ,existing ,agency and shall be transferred to the ,corporation on the agency transfer date for deposit in the ,mortgage ,insurance ,fund in accordance with subparagraph 7,a74 7,c7 ,exemption from apportionment ,notwithstanding any other provision of law1 amounts received by the ,corporation from any assessment imposed under section #acaf7;i7 of the ,safety and ,soundness ,act shall not be subject to apportionment for the purposes of chapter #ae of title #ca1 ,united ,states ,code1 or under any other authority4 7,d7 ,rule of construction ,amounts received by the ,corporation from any assessment imposed under section #acaf7;i7 of the ,safety and ,soundness ,act shall not be construed to be ,government or public funds or appropriated money4 7#b7 ,use of funds 7,a7 ,in general ,the ,existing ,agency shall use amounts received from assessments imposed under section #acaf7;i7 of the ,safety and ,soundness ,act solely for the purpose of funding the ,mortgage ,insurance ,fund on the agency transfer date4 7,b7 ,treasury investments ,the ,existing ,agency may request the ,secretary of the ,treasury to invest the amounts received from assessments imposed under section #acaf7;i7 of the ,safety and ,soundness ,act4 7,c7 ,government obligations ,pursuant to a request under subparagraph 7,b71 the ,secretary of the ,treasury shall invest such amounts in ,federal ,government obligations-- 7i7 guaranteed as to principal and interest by the ,united ,states with maturities suitable to the needs of the ,existing ,agency2 and 7ii7 bearing interest at a rate determined by the ,secretary of the ,treasury1 taking into consideration current market yields on outstanding marketable obligations of the ,united ,states of comparable maturity4 #djf4 ,transfer of powers and duties on the system certification date2 continuation and coordination of certain actions 7a7 ,transfer of functions ,effective on the system certification date and except as provided in section #ccb7;a71 there are transferred to the ,corporation all functions of the ,federal ,housing ,finance ,agency of the ,corporation and the ,director thereof4 7b7 ,coordination and continuation of certain actions 7#a7 ,in general ,all regulations1 orders1 determinations1 and resolutions described in 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 in this paragraph if it-- 7,a7 was issued1 made1 prescribed1 or allowed to become effective by-- 7i7 the ,existing ,agency2 7ii7 the ,federal ,housing ,finance ,agency of the ,corporation2 7iii7 the ,federal ,housing ,finance ,board2 or 7iv7 a court of competent jurisdiction2 7,b7 relates to the performance of functions that are transferred by subsection 7a72 and 7,c7 is in effect on the effective date of the transfer under subsection 7a74 7c7 ,use of agency services ,any agency1 department1 or other instrumentality of the ,united ,states1 and any successor to any such agency1 department1 or instrumentality1 which was providing supporting services to the ,federal ,housing ,finance ,agency of the ,corporation before the system certification date in connection with functions that are transferred to the ,corporation under subsection 7a7 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 7d7 ,savings provisions 7#a7 ,existing rights1 duties1 and obligations not affected ,subsection 7a7 shall not affect the validity of any right1 duty1 or obligation of the ,united ,states1 the ,director of the ,federal ,housing ,finance ,agency of the ,corporation1 or any other person1 which-- 7,a7 arises under-- 7i7 the ,safety and ,soundness ,act2 7ii7 the ,federal ,national ,mortgage ,association ,charter ,act2 7iii7 the ,federal ,home ,loan ,mortgage ,corporation ,act2 or 7iv7 any other provision of law applicable with respect to the ,federal ,housing ,finance ,agency2 and 7,b7 existed on the day before the system certification date4 7#b7 ,continuation of suits ,no action or other proceeding commenced by or against the ,director of the ,federal ,housing ,finance ,agency of the ,corporation in connection with functions that are transferred to the ,corporation under subsection 7a7 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 of the ,corporation as a party to any such action or proceeding4 #djg4 ,technical and conforming amendments relating to abolishment of ,,fhfa 7a7 ,effective date ,the amendments made by this section shall take effect on the system certification date4 7b7 ,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 striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7c7 ,commodity ,exchange ,act ,section #a;a7#ci77;,e7 of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#ci77;,e77 is amended by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7d7 ,emergency ,economic ,stabilization ,act of #bjjh ,the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebja note7 is amended-- 7#a7 in section #ajd7;b77#c71 by striking the ,director of the ,federal ,housing ,finance ,agency and inserting the ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 7#b7 in section #aji7;b71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7#c7 in section #aaj7;a77#a77;,a71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7e7 ,federal ,national ,mortgage ,association ,charter ,act ,the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agaf et seq47 is amended-- 7#a7 in section #cjc7;c77#b71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7#b7 in section #cji-- 7,a7 in subsection 7d77#c77;,b7-- 7i7 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7ii7 by striking ,director each place that term appears and inserting ,chairperson2 7,b7 in subsection 7k77#a71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 7,c7 in subsection 7m7-- 7i7 in paragraph 7#a71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7ii7 in paragraph 7#b7-- 7,i7 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,,ii7 by striking ,director each place that term appears and inserting ,chairperson2 and 7,d7 in subsection 7n7-- 7i7 in paragraph 7#a71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 7ii7 in paragraph 7#b77,l71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7iii7 in paragraph 7#c77;,b71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 7f7 ,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 striking ,federal ,housing ,finance ,agency each place that term appears and inserting ,federal ,mortgage ,insurance ,corporation2 7#b7 in section #h7;e77#g77;,a77vi71 by striking ,federal ,housing ,finance ,agency each place that term appears and inserting ,federal ,mortgage ,insurance ,corporation2 and 7#c7 in section #cc7;e71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7g7 ,federal ,financial ,institutions ,examination ,council ,act of #aigh ,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 striking and the ,federal ,housing ,finance ,agency4 7h7 ,federal ,home ,loan ,bank ,act ,the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adba et seq47 is amended-- 7#a7 in section #b-- 7,a7 in paragraph 7#aa71 as previously amended by section #djb7;i71 by striking ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7,b7 in paragraph 7#ab71 as previously amended by section #djb7;i71 by striking the ,federal ,housing ,finance ,agency within the ,federal ,mortgage ,insurance ,corporation established under section #djb7;a77#a7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad and inserting ,federal ,mortgage ,insurance ,corporation established under section #bja of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad2 7#b7 in section #aj7;a77#c77;,b71 by inserting 1 subject to such regulations that the ,federal ,mortgage ,insurance ,corporation may issue to ensure the safety and soundness of the ,federal ,home ,loan ,banks1 covered securities insured by the ,federal ,mortgage ,insurance ,corporation under the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad after ,government ,national ,mortgage ,association2 and 7#c7 in section #aa7;h71 by inserting 1 subject to such regulations that the ,federal ,mortgage ,insurance ,corporation may issue to ensure the safety and soundness of the ,federal ,home ,loan ,banks1 covered securities insured by the ,federal ,mortgage ,insurance ,corporation under the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad after ,federal ,home ,loan ,mortgage ,corporation pursuant to section #cje or section #cjf of the ,federal ,home ,loan ,mortgage ,corporation ,act4 7i7 ,federal ,home ,loan ,mortgage ,corporation ,act ,the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq47 is amended-- 7#a7 in section #cjc-- 7,a7 in subsection 7b77#b71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7,b7 in subsection 7h7-- 7i7 in paragraph 7#b7-- 7,i7 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,,ii7 by striking ,director each place that term appears and inserting ,chairperson2 and 7ii7 in paragraph 7#d71 by striking ,director and inserting ,chairperson2 7#b7 in section #cje7;a77#b71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7#c7 in section #cjg-- 7,a7 in subsection 7c77#a71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 7,b7 in subsection 7e7-- 7i7 in paragraph 7#a7-- 7,i7 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,,ii7 by striking ,director each place that term appears and inserting ,chairperson2 and 7ii7 in paragraph 7#b7-- 7,i7 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,,ii7 by striking ,director each place that term appears and inserting ,chairperson2 and 7,c7 in subsection 7f7-- 7i7 in paragraph 7#a71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 7ii7 in paragraph 7#b71 by striking ,director of the ,federal ,housing ,finance ,agency each place that term appears and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 and 7iii7 in paragraph 7#c77;,b71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 7j7 ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib ,the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #deja et seq47 is amended-- 7#a7 in section #acjc-- 7,a7 in paragraph 7#b71 as previously amended by section #djb7;i71 by striking the ,federal ,housing ,finance ,agency within the ,federal ,mortgage ,insurance ,corporation established under section #djb7;a77#a7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad and inserting ,federal ,mortgage ,insurance ,corporation established under section #bja of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad2 7,b7 by striking paragraph 7#d7 and inserting the following3 7#d7 ,reserved4 2 and 7,c7 in paragraph 7#i71 as previously amended by section #djb7;i71 by striking ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation2 7#b7 by repealing section #acac;,a2 7#c7 in section #acag-- 7,a7 by striking subsection 7d72 and 7,b7 by redesignating subsections 7e7 through 7i7 as subsections 7d7 through 7h71 respectively2 and 7#d7 in section #acfg-- 7,a7 in subsection 7a71 in the heading1 by striking ,agency and inserting ,corporation2 and 7,b7 in subsection 7b71 in the heading to paragraph 7#i77;,b71 as so redesignated1 by striking ,agency and inserting ,corporation4 7k7 ,financial ,institutions ,reform1 ,recovery1 and ,enhancement ,act of #aihi ,the ,financial ,institutions ,reform1 ,recovery1 and ,enhancement ,act of #aihi 7,public ,law #aja-gc2 #ajc ,stat4 #ahc7 is amended-- 7#a7 in section #djb7;e71 by striking ,federal ,housing ,finance ,agency each place that term appears and inserting ,federal ,mortgage ,insurance ,corporation2 7#b7 in section #aabd1 by striking ,federal ,housing ,finance ,agency each place that term appears and inserting ,federal ,mortgage ,insurance ,corporation2 and 7#c7 in section #aabe7;b71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7l7 ,flood ,disaster ,protection ,act of #aigc ,section #ajb7;f77#c77;,a7 of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7f77#c77;,a77 is amended by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 7m7 ,housing ,economic ,recovery ,act of #bjjh ,section #ajjb7;b7 of the ,housing and ,economic ,recovery ,act of #bjjh 7,public ,law #aaj-bhi2 #abb ,stat4 #bffa7 is amended-- 7#a7 in paragraph 7#a71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7#b7 in paragraph 7#b71 by striking ,director of the ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 7n7 ,housing and ,urban-,rural ,recovery ,act of #aihc ,the first sentence of section #dfi of the ,housing and ,urban-,rural ,recovery ,act of #aihc 7#ab ,u4,s4,c4 #agjap-#a7 is amended by striking ,federal ,housing ,finance ,agency14 7o7 ,multifamily ,assisted ,housing ,reform and ,affordability ,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 striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7p7 ,public law #ic-die ,section #aaa of ,public ,law #ic-die 7#ab ,u4,s4,c4 #bej7 is amended by striking the ,director of the ,federal ,housing ,finance ,agency14 7q7 ,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 striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7r7 ,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 striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7s7 ,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 striking ,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 7t7 ,sarbanes-,oxley ,act of #bjjb ,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 striking ,director of the ,federal ,housing ,finance ,agency and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 7u7 ,securities ,exchange ,act ,section #ae;,g of the ,securities ,exchange ,act 7#ae ,u4,s4,c4 #gho-#aa7 is amended-- 7#a7 in subsection 7b77#b71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7#b7 in subsection 7e77#d71 by striking ,director of the ,federal ,housing ,finance ,agency each place that term appears and inserting ,chairperson of the ,federal ,mortgage ,insurance ,corporation4 7v7 ,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 striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7#b7 in section #abi;,e-- 7,a7 in subsection 7g77#a71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation2 and 7,b7 in subsection 7h71 by striking ,federal ,housing ,finance ,agency and inserting ,federal ,mortgage ,insurance ,corporation4 7w7 ,other references in ,federal law ,on and after the system certification date1 any reference to the ,federal ,housing ,finance ,agency or the ,director thereof in any law1 rule1 regulation1 certificate1 directive1 instruction1 or other official paper in force on the system certification date shall be considered to refer and apply to the ,federal ,mortgage ,insurance ,corporation and the ,chairperson thereof1 respectively4 #djh4 ,repeal of mandatory housing goals 7a7 ,repeal of housing goals ,the ,safety and ,soundness ,act is amended by striking sections #acca through #accf 7#ab ,u4,s4,c4 #defa-f74 7b7 ,conforming amendments ,the ,safety and ,soundness ,act 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 7c7 ,effective date ,the amendments made by this section shall take effect on the date of enactment of this ,act4 7d7 ,required compliance with nondiscrimination laws 7#a7 ,approved entities2 ,platform ,notwithstanding any other provision of this ,act1 approved entities and the ,securitization ,platform shall comply with ,federal and ,state nondiscrimination laws1 including the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq47 and the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq474 7#b7 ,corporation 7,a7 ,in general ,in carrying out this ,act1 the ,corporation shall comply with ,federal and ,state nondiscrimination laws4 7,b7 ,periodic review ,the ,corporation shall periodically review its policies1 standards1 and guidelines with respect to eligible mortgage loans1 including1 but not limited to1 any automated underwriting systems1 to ensure that such policies1 standards1 and guidelines are consistent with the requirements of section #djh7;d74 7#c7 ,safety and ,soundness ,act ,section #acbe of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #dede7 is amended-- 7,a7 in the matter preceding paragraph 7#a71 by striking ,the ,secretary and inserting the following3 7a7 ,in general ,the ,secretary 2 7,b7 in paragraph 7#a7-- 7i7 by inserting 1 approved guarantor1 approved multifamily guarantor1 approved aggregator1 and the ,securitization ,platform after enterprise2 7ii7 by inserting or guarantee after purchase2 and 7iii7 by inserting or mortgage-backed security after mortgage2 7,c7 in paragraph 7#b7-- 7i7 by striking 7#b7 by regulation and by inserting 7#b77;,a7 by regulation2 7ii7 by inserting and after the semicolon2 and 7iii7 by adding at the end the following3 7,b7 with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions1 by regulation1 require each approved guarantor1 approved multifamily guarantor1 and approved aggregator to submit data to the ,secretary to assist the ,secretary in investigating whether a mortgage lender with which the approved guarantor1 approved multifamily guarantor1 or approved aggregator does business has failed to comply with the ,fair ,housing ,act 7#db ,u4,s4,c4 #cfja et seq472 2 7,d7 in paragraph 7#c7-- 7i7 by striking 7#c7 by regulation and by inserting 7#c77;,a7 by regulation2 7ii7 by inserting and after the semicolon2 and 7iii7 by adding at the end the following3 7,b7 with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions1 by regulation1 require each approved guarantor1 approved multifamily guarantor1 and approved aggregator to submit data to the ,secretary to assist in investigating whether a mortgage lender with which the approved guarantor1 approved multifamily guarantor1 or approved aggregator does business has failed to comply with the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia et seq471 and shall submit any such information received to the appropriate ,federal agencies1 as provided in section #gjd of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c71 for appropriate action2 2 7,e7 in paragraph 7#d71 by inserting and the ,federal ,mortgage ,insurance ,corporation after enterprises2 7,f7 in paragraph 7#e7-- 7i7 by striking 7#e7 direct the and by inserting 7#e77;,a7 direct the2 7ii7 by inserting and after the semicolon2 and 7iii7 by adding at the end the following3 7,b7 with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions1 apply various remedial actions1 including suspension1 probation1 reprimand1 or settlement1 against lenders that have been found to have engaged in discriminatory lending practices in violation of the ,fair ,housing ,act or the ,equal ,credit ,opportunity ,act1 pursuant to a final adjudication on the record1 and after opportunity for an administrative hearing1 in accordance with subchapter ,,ii of chapter #e of title #e1 ,united ,states ,code2 and 2 7,g7 in paragraph 7#f7-- 7i7 by striking 7#f7 periodically review and by inserting 7#f77;,a7 periodically review2 7ii7 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7,b7 with respect to the market for covered guarantee transactions and covered market-based risk-sharing transactions1 periodically review and comment on the underwriting and appraisal guidelines of each approved guarantor1 approved multifamily guarantor1 and approved aggregator1 and the policies1 standards1 and guidelines of the ,securitization ,platform to ensure that such guidelines are consistent with the ,fair ,housing ,act and this section4 2 and 7,h7 by adding at the end the following3 7b7 ,definitions ,in this section1 the terms approved guarantor1 approved multifamily guarantor1 approved aggregator1 covered guarantee transaction1 covered market-based risk-sharing transaction1 and ,securitization ,platform have the meanings given such terms in section #b of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad4 4 ,v ,improving transparency1 accountability1 and efficacy within affordable housing #eja4 ,affordable housing allocations 7a7 ,fee and allocation of amounts ,in addition to any fees for the provision of insurance established in accordance with title ,,iii1 in each fiscal year the ,corporation shall-- 7#a7 charge and collect a fee determined as provided in subsection 7b7 for each dollar of the outstanding principal balance of all eligible mortgage loans that collateralize covered securities insured under this ,act2 and 7#b7 allocate or otherwise transfer1 on an annual basis-- 7,a7 #ge 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 ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh72 7,b7 #ae percent of such fee amounts to the ,secretary of the ,treasury to fund the ,capital ,magnet ,fund established under section #acci of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defi72 and 7,c7 #aj percent of such fee amounts to the ,corporation to fund the ,market ,access ,fund established under section #ejd4 7b7 ,determination of fee ,the fee required to be charged under subsection 7a7 shall be determined as follows3 7#a7 ,initial fee ,beginning on the date of enactment of this ,act and ending upon the date set forth under paragraph 7#b77;,e71 the fee shall be an amount equal to #aj basis points for each dollar of the outstanding principal balance of eligible mortgage loans collateralizing covered securities insured under this ,act4 7#b7 ,subsequent incentive-based fee ,not later than #f months after the date that the ,corporation has approved at least #b approved guarantors1 approved multifamily guarantors1 or approved aggregators1 the ,corporation shall1 by regulation1 after notice and comment1 establish a formula for determining the fee that meets the following criteria3 7,a7 ,average for all fees ,the average of fees charged on the total outstanding principal balance of all eligible mortgage loans collateralizing covered securities insured under this ,act shall be equal to #aj basis points4 7,b7 ,permissible range ,the highest basis point fee charged to an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction shall not exceed #b times the lowest basis point fee charged4 7,c7 ,incentives to serve underserved market segments 7i7 ,in general ,the formula determined under this subsection shall provide that the amount by which any particular fee charged to an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction may be more or less than the average fee required under subparagraph 7,a7 based upon consideration of the following factors3 7,i7 ,performance relative to peers ,the performance of each approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction and each approved aggregator engaged in a covered market-based risk-sharing transaction in serving underserved market segments1 as identified and defined under section #baj1 relative to the performance of all other approved guarantors1 approved multifamily guarantors1 or approved aggregators engaged in covered guarantee transactions or approved aggregators engaged in covered market-based risk-sharing transactions4 7,,ii7 ,performance relative to primary market loan origination data ,the performance of each approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction and each approved aggregator engaged in a covered market-based risk-sharing transaction in serving underserved market segments1 as identified and defined under section #baj1 relative to the level of primary market mortgage originations in each of the underserved market segments so identified and defined that were facilitated by the approved guarantor1 approved multifamily guarantor1 or approved aggregator's engagement in a covered guarantee transaction or the approved aggregator's engagement in a covered market-based risk-sharing transaction4 7,,iii7 ,relative extent to which individual market segments are underserved ,the relative extent to which each of the underserved market segments1 as identified and defined under section #baj1 that have primary market mortgage originations facilitated by the approved guarantor1 approved multifamily guarantor1 or approved aggregator's engagement in a covered guarantee transaction or the approved aggregator's engagement in a covered market-based risk-sharing transaction is underserved4 7ii7 ,weighing factors ,the formula determined under this subsection shall assign such weights to each of the factors set forth under clause 7i7 as the ,corporation determines necessary and appropriate4 7iii7 ,data for measuring factors ,to measure the performance in serving underserved market segments1 as identified and defined under section #baj1 by approved guarantors1 approved multifamily guarantors1 or approved aggregators engaged in a covered guarantee transaction and approved aggregators engaged in a covered market-based risk-sharing transaction and the extent to which a market segment is underserved1 the formula determined under this subsection shall provide for the use of-- 7,i7 the identifications and definitions of underserved market segments established by the ,corporation under section #baj2 7,,ii7 data and other information in the annual report filed with the ,corporation by each approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction and each approved aggregator engaged in a covered market-based risk-sharing transaction1 as required under section #baj2 7,,iii7 loan level data1 to the extent possible in the manner required by the ,home ,mortgage ,disclosure ,act 7#ab ,u4,s4,c4 #bhja et seq47 on activities related to covered securities2 and 7,,iv7 other publicly available data4 7,d7 ,third-party entity to measure factors 7i7 ,selection ,the ,corporation1 through a competitive process1 shall select an entity independent of the ,corporation to gather1 use1 and provide to the ,corporation the data required under subparagraph 7,c77iii74 7ii7 ,ranking ,the entity selected under clause 7i7 shall-- 7,i7 analyze the data required under subparagraph 7,c77iii72 and 7,,ii7 rank the approved guarantors1 approved multifamily guarantors1 or approved aggregators engaged in covered guarantee transactions and the approved aggregators engaged in covered market-based risk-sharing transactions1 applying the formula established by the ,corporation4 7iii7 ,timing of ranking ,the entity selected under clause 7i7 shall1 on an annual basis1 provide the rankings required under clause 7ii77,,ii74 ,the annual rankings required under this clause shall begin at a time to be determined mutually by the entity selected under clause 7i7 and the ,corporation1 so that the ,corporation will be positioned to determine1 charge1 and collect the first incentive-based fees beginning on the date that is #ab months after the date of approval of at least #b approved guarantors1 approved multifamily guarantors1 or approved aggregators4 7,e7 ,timing of charging and collecting incentive-based fees 7i7 ,first incentive-based fees ,subject to paragraph 7#c71 the ,corporation shall charge and collect the first incentive-based fees required under this subsection beginning on the date that is #ab months after the date of the approval of at least #b approved guarantors1 approved multifamily guarantors1 or approved aggregators4 7ii7 ,subsequent annual incentive-based fees ,subject to paragraph 7#c71 the ,corporation shall charge and collect incentive-based fees annually on the first business day of each #ab-month period that begins after the expiration of the initial #ab-month period set forth in clause 7i74 7iii7 ,collection 7,i7 ,procedures ,the ,corporation shall1 by regulation1 establish procedures for collecting the incentive-based fee required under this paragraph on a periodic basis determined by the ,corporation4 7,,ii7 ,compliance with procedures ,the ,corporation shall collect all incentive-based fees required under this paragraph consistent with the procedures established pursuant to subclause 7,i74 7iv7 ,adjustments to incentive-based fees paid 7,i7 ,in general ,the ,corporation shall make appropriate adjustments to the incentive-based fee charged to an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction for any year based on the-- 7aa7 application of the formula established under this paragraph to such approved guarantor1 approved multifamily guarantor1 or approved aggregator2 and 7bb7 measured performance of such approved guarantor1 approved multifamily guarantor1 or approved aggregator in that year4 7,,ii7 ,form of adjustments ,any adjustments made pursuant to subclause 7,i7 may take the form of-- 7aa7 a credit against the fee paid by an approved guarantor1 approved multifamily guarantor1 or approved aggregator for the year2 or 7bb7 an additional amount owing on the fee for the year by the approved guarantor1 approved multifamily guarantor1 or approved aggregator4 7v7 ,frequency of incentive-based fee collection ,in determining the appropriate periodic basis for collecting the incentive-based fees required under clause 7iii71 the ,corporation shall take into consideration the need to make appropriate adjustments to the fees under clause 7iv7 through credits or additional billings4 7vi7 ,rule of construction ,nothing in this subparagraph shall be construed to waive1 override1 or in any manner supersede the requirement set forth under subparagraph 7,a74 7,f7 ,additional incentives to serve underserved market segments 7i7 ,fee credits from the ,market ,access ,fund ,notwithstanding any provision of section #ejd or any other provision of law1 the ,corporation may use up to #ej percent of the amounts in the ,market ,access ,fund1 determined as of the date that an incentive-based fee under subparagraph 7,e7 is to be charged in any year1 to provide #a or more approved guarantors1 approved multifamily guarantors1 or approved aggregators engaged in a covered guarantee transaction or approved aggregators engaged in a covered market-based risk-sharing transaction with additional incentives to serve underserved market segments1 as identified and defined under section #baj1 through the award of a credit that may be applied to reduce the annual fee charged to the approved guarantor1 approved multifamily guarantor1 or approved aggregator if that person exceeds performance measures related to the service of such underserved market segments established by the ,corporation4 7ii7 ,rule required ,the ,corporation shall establish1 by regulation1 the terms1 conditions1 and performance measures for the awarding of credits under clause 7i74 7#c7 ,opt-out from incentive-based fees 7,a7 ,election and written agreement ,an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction may elect to be excepted from the incentive-based fee that is charged under paragraph 7#b7 by notifying the ,corporation in writing that the approved guarantor1 approved multifamily guarantor1 or approved aggregator agrees to pay the fee amount described in subparagraph 7,c74 7,b7 ,timing for election ,for any #ab-month period for which an incentive-based fee will be charged under paragraph 7#b71 an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction may make an election under subparagraph 7,a7 not later than #c months prior to the beginning of such #ab-month period4 7,c7 ,fee amount for opt-out ,if an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction makes an election under subparagraph 7,a71 the ,corporation shall charge to1 and collect from1 the approved guarantor1 approved multifamily guarantor1 or approved aggregator a fee in an amount equal to the highest fee charged by ,corporation for the #ab-month period under the ranking made under paragraph 7#b77;,d74 7,d7 ,opt-out not to affect reporting requirements ,an election made under subparagraph 7,a7 shall not release1 diminish1 or otherwise affect any requirement set forth by this ,act that requires an approved guarantor1 approved multifamily guarantor1 or approved aggregator engaged in a covered guarantee transaction or an approved aggregator engaged in a covered market-based risk-sharing transaction to furnish to the ,corporation such information as the ,corporation is authorized by this ,act to obtain1 including the annual report required to be filed with the ,corporation under section #baj4 7c7 ,continuing obligation ,the fee required to be charged under subsection 7a7 shall be collected for the life of the covered security4 7d7 ,suspension of contributions ,the ,corporation may temporarily suspend allocations under subsection 7a77#b7 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 #cjc4 7e7 ,rule of construction ,the cost of the fee required to be charged under subsection 7a7 shall not be borne by eligible borrowers4 #ejb4 ,housing ,trust ,fund ,section #acch of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh7 is amended-- 7#a7 in subsection 7a77#a7-- 7,a7 in the first sentence1 by inserting or pursuant to section #eja of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad after section #accg2 and 7,b7 in the second sentence1 by inserting federally-recognized tribes and after grants to2 7#b7 by striking subsection 7b7 and inserting the following3 7b7 ,reserved4 2 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#b7-- 7i7 by striking 7as such term is defined in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiig 7#be ,u4,s4,c4 #dajc772 and 7ii7 by adding at the end the following3 ,an ,indian tribe receiving grant amounts under this subsection may designate a federally recognized tribe or a tribally designated housing entity to receive such grant amounts4 ,nothing in this subsection shall limit or be construed to limit the ability of an ,indian tribe or a tribally designated housing entity from being a permissible designated recipient of grant amounts provided by a ,state under this section42 7,c7 in paragraph 7#c7-- 7i7 in the heading-- 7,i7 by inserting ,indian tribes and before ,states2 and 7,,ii7 by striking by needs-based formula2 7ii7 in subparagraph 7,a71 by striking ,the ,secretary shall and inserting the following3 7i7 ,minimum tribal distributions 7,i7 ,in general ,the ,secretary1 acting through the ,office of ,native ,american ,programs1 shall distribute via competitive grants the amounts determined under subclause 7,,ii7 and made available under this subsection to federally recognized tribes and tribally designated housing entities4 7,,ii7 ,amounts ,the total amount required to be distributed under this subclause for a fiscal year shall be the greater of #bj1jjj1jjj1 or #b percent of the total amount of amounts allocated for the ,housing ,trust ,fund under this section4 7,,iii7 ,use of amounts ,competitive grant amounts received by a federally recognized tribe or a tribally designated housing entity under this clause may be used1 or committed to use1 only for those activities that are identified as eligible affordable housing activities under section #bjb of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dacb74 7,,iv7 ,evaluation of applications 7aa7 ,in general ,in evaluating any application for the receipt of competitive grant amounts authorized under this clause1 the ,secretary1 acting through the ,office of ,native ,american ,programs1 shall consider with respect to the federally recognized tribe applicant or tribally designated housing entity applicant and to ,indian reservations and other ,indian areas associated with the federally recognized tribe applicant or served by the tribally designated housing entity applicant evaluation criteria1 including the following3 7,,aa7 ,level of poverty on the ,indian reservation or in the ,indian area4 7,,bb7 ,level of unemployment on the ,indian reservation or in the ,indian area4 7,,cc7 ,condition of housing stock on the ,indian reservation or in the ,indian area4 7,,dd7 ,level of overcrowded housing on the ,indian reservation or in the ,indian area1 as measured by the number of households in which the number of persons per room is greater than #a4 7,,ee7 ,presence and prevalence of black mold on the ,indian reservation or in the ,indian area4 7,,ff7 ,demonstrated experience1 capacity1 and ability of the applicant to manage the development and construction of affordable housing1 and manage affordable housing programs1 including rental housing programs1 homeownership programs1 and programs to assist purchasers with down payments1 closing costs1 or interest rate buy-downs4 7,,gg7 ,demonstrated ability of the applicant to meet the requirements under the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #daja et seq471 including the timely and efficient expenditure of funds4 7,,hh7 ,such other criteria as may be specified by the ,secretary in order to evaluate the overall quality of the proposed project1 the feasibility of the proposed project1 and whether the proposed project will address the housing needs on the ,indian reservation or in the ,indian area4 7bb7 ,review of data ,in evaluating any application for the receipt of competitive grant amounts authorized under this clause1 the ,secretary1 acting through the ,office of ,native ,american ,programs1 shall permit a federally recognized tribe applicant or a tribally designated housing entity applicant to supplement or replace1 in whole or in part1 any data compiled and produced by the ,bureau of the ,census and upon which the ,secretary1 acting through the ,office of ,native ,american ,program1 relies1 provided such tribally-collected data meets the ,department of ,housing and ,urban ,development's standards for accuracy4 7,v7 ,treatment of funds ,notwithstanding any other provision of law1 competitive grant amounts received under this clause shall not be considered ,federal funds for purposes of matching other ,federal sources of funds4 7,,vi7 ,rule of construction ,the requirements under clause 7ii71 subparagraphs 7,b7 and 7,c7 of this paragraph1 and paragraphs 7#d7 through 7#h7 and paragraph 7#aj77;,a7 of this subsection shall not apply to any amounts distributed under this clause to a federally recognized tribe or a tribally designated housing entity4 7ii7 ,state distributions ,from any amounts remaining in the ,housing ,trust ,fund after the distribution of the amounts required under clause 7i71 the ,secretary shall 2 7iii7 in subparagraph 7,b71 by striking subparagraph 7,a7 and inserting subparagraph 7,a77ii72 and 7iv7 in subparagraph 7,c71 by striking subparagraph 7,a7 and inserting subparagraph 7,a77ii72 7,d7 in paragraph 7#d7-- 7i7 in subparagraph 7,b71 by striking other than fiscal year #bjji2 and 7ii7 by striking subparagraph 7,c71 and inserting the following3 7,c7 ,minimum ,state allocations 7i7 ,in general ,except as provided in clause 7ii71 the minimum allocation1 following the determination of the formula amount in paragraph 7#c71 to any of the #ej ,states of the ,united ,states or the ,district of ,columbia shall be #aj1jjj1jjj and the increase in any such allocation shall be deducted pro rata from the allocations made above such minimum to all other of the ,states 7as such term is defined in section #acjc74 7ii7 ,exception ,if the allocation to the ,housing ,trust ,fund under section #eja7;a77#b77;,a7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad for a fiscal year is less than #a1jjj1jjj1jjj1 the minimum allocation to any of the #ej ,states of the ,united ,states or the ,district of ,columbia shall be the greater of #e1jjj1jjj or #a percent of the total amount of amounts allocated for the ,housing ,trust ,fund under this section and the increase in any such allocation shall be deducted pro rata from the allocations made above such minimum to all other of the ,states 7as such term is defined in section #acjc74 2 7,e7 in paragraph 7#e77;,a7-- 7i7 in clause 7iii71 by striking and at the end2 7ii7 by redesignating clause 7iv7 as clause 7v72 and 7iii7 by inserting after clause 7iii7 the following3 7iv7 set forth a plan for achieving geographic diversity1 including the distribution of grant amounts to rural areas in proportion to housing needs in those areas2 and 4 7,f7 in paragraph 7#g77;,a71 by striking housing under the programs identified in section #acce7;a77#b77;,b7 of this title and inserting housing subsidized under ,federal law or comparable ,state or local laws2 7,g7 in paragraph 7#g77;,b77iv71 by striking section #acb and inserting section #aacb2 7,h7 in paragraph 7#i71 by inserting 7including a public housing agency7 after agency2 and 7,i7 by adding at the end the following3 7#aa7 ,rule of construction ,nothing in this subsection shall be construed to limit the ability of a federally recognized tribe or a tribally designated housing entity from receiving grant amounts provided by a ,state under this section4 2 7#d7 in subsection 7f71 by adding at the end the following3 7#g7 ,tribal terms 7,a7 ,in general ,the terms federally recognized tribe1 ,indian area1 ,indian tribe1 and tribally designated housing entity have the same meaning as in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 7,b7 ,indian reservation ,the term ,indian reservation means land subject to the jurisdiction of an ,indian tribe4 7#h7 ,rural area ,the term rural area means any community eligible for assistance under section #ebj of the ,housing ,act of #aidi 7#db ,u4,s4,c4 #adij74 2 and 7#e7 in subsection 7g77#b77;,d77i71 by inserting 1 including the distribution of grant amounts to rural areas in proportion to housing needs in those areas after diversity4 #ejc4 ,capital ,magnet ,fund ,section #acci of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defi7 is amended-- 7#a7 in subsection 7b77#a71 by inserting or section #eja of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad after section #accg2 7#b7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#b7-- 7i7 by inserting 1 activities designed to foster revitalization in areas experiencing severe economic distress and property disinvestment1 including1 but not limited to1 demolition1 property rehabilitation1 and infrastructure configuration1 after economic development activities2 and 7ii7 by inserting and tribal after rural2 and 7#c7 in subsection 7h77#b77;,a71 by inserting or tribal after rural4 #ejd4 ,market ,access ,fund 7a7 ,establishment ,the ,corporation shall establish a fund1 to be known as the ,market ,access ,fund1 which shall be maintained and administered by the ,office of ,consumer and ,market ,access4 7b7 ,deposits ,the ,market ,access ,fund shall be credited with-- 7#a7 the share of the fee charged and collected by the ,corporation under section #eja2 and 7#b7 such other amounts as may be appropriated or transferred to the ,market ,access ,fund4 7c7 ,purpose ,amounts in the ,market ,access ,fund shall be eligible for use by grantees to address the homeownership and rental housing needs of underserved or hard-to-serve populations by-- 7#a7 providing grants and loans for research1 development1 and pilot testing of innovations in consumer education1 product design1 underwriting1 and servicing2 7#b7 offering additional credit support for certain eligible mortgage loans or pools of eligible mortgage loans1 such as by covering a portion of any capital required to obtain insurance from the ,corporation under this ,act1 provided that amounts for such additional credit support do not replace borrower funds required of an eligible mortgage loan2 7#c7 providing 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 which programs shall include manufactured homes purchased through real estate and personal property loans and manufactured homes used as rental housing1 provided that such grant or loan amounts are used only for the benefit of families whose income does not exceed #abj percent of the median income for the area as determined by the ,corporation1 with adjustments for family size2 7#d7 providing limited credit enhancement1 and other forms of credit support1 for product and services that-- 7,a7 will increase the rate of sustainable homeownership and affordable rental housing1 including manufactured homes purchased through real estate and personal property loans and manufactured homes used as rental housing1 by individuals or families whose income does not exceed #abj percent of the area median income as determined by the ,corporation1 with adjustments for family size2 and 7,b7 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 market2 7#e7 providing housing counseling by a ,,hud-approved housing counseling agency2 7#f7 providing incentives to achieve broader access to mortgage credit2 and 7#g7 providing grants and loans for activities designed to foster revitalization in areas experiencing severe economic distress and property disinvestment1 including1 but not limited to1 demolition1 rehabilitation1 infrastructure configuration1 and reuse of vacant land4 7d7 ,annual report 7#a7 ,in general ,the ,chairperson shall1 on an annual basis1 report to ,congress on the performance and outcome of grants1 loans1 or credit support programs funded by the ,market ,access ,fund in accordance with subsection 7c71 including-- 7,a7 an evaluation of how each grant1 loan1 or credit support program-- 7i7 succeeded in meeting or failed to meet the need of certain populations1 especially extremely low-1 very low-1 low-1 and moderate-income and underserved or hard-to-serve populations2 and 7ii7 succeeded in maximizing or failed to maximize the leverage of public investment made for each such grant1 loan1 or credit support program2 and 7,b7 for each award of funds for a grant1 loan1 or credit support program by the ,market ,access ,fund-- 7i7 the recipient of the funds2 7ii7 the purpose for which the recipient received the funds2 7iii7 the amount of funds provided to the recipient2 and 7iv7 the amount of funds1 excluding administrative costs1 that are used to directly meet the purpose identified under clause 7ii71 including meeting the housing needs of extremely low-1 very low-1 low-1 and moderate-income and underserved or hard-to-serve populations4 7#b7 ,inclusion in annual report ,the ,chairperson shall include the report required under paragraph 7#a7 in the annual report required under section #bjf4 #eje4 ,additional taxpayer protections 7a7 ,not to be used for political activities ,consistent with the existing requirements under sections #acch7;c77#aj77;,d7 and #acci7;h77#e7 of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh7;c77#aj77;,d7 and #defi7;h77#e771 the ,secretary of ,housing and ,urban ,development1 the ,secretary of the ,treasury1 and the ,office of ,community and ,market ,access1 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 political advocacy2 7#c7 lobbying1 whether directly or through other parties2 7#d7 influencing the selection1 nomination1 election1 or appointment of #a 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 7b7 ,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 7a71 the ,secretary of ,housing and ,urban ,development1 the ,secretary of the ,treasury1 or the ,corporation1 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 7a71 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 ,development1 the ,secretary of the ,treasury1 or the ,corporation1 as the case may be1 imposes other administrative sanctions4 7c7 ,definitions ,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 7,b7 for purposes of the ,capital ,magnet ,fund1 an eligible grantee as described under section #acci7;e7 of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defi7;e772 and 7,c7 for purpose of the ,market ,access ,fund1 an eligible grantee as described under section #ejd7;c72 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 ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh7;c77#i772 7,b7 for purposes of the ,capital ,magnet ,fund1 a recipient of assistance from the ,capital ,magnet ,fund2 and 7,c7 for purposes of the ,market ,access ,fund1 a recipient of assistance from the ,market ,access ,fund2 7#c7 the term ,capital ,magnet ,fund means the ,capital ,magnet ,fund established under section #acci of the ,safety and ,soundness ,act 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 ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh74 7d7 ,rule of construction ,nothing in subsection 7a7 shall be construed to prevent funds from being used for-- 7#a7 ,,hud-approved housing counseling services2 7#b7 financial literacy education2 or 7#c7 application fees1 permits1 or other construction-related expenses1 if funds are authorized for such construction4 #ejf4 ,promoting affordable housing investment 7a7 ,housing and ,community ,development ,act of #aiib ,paragraph 7#f7 of section #edb7;c7 of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#bb7;c77 is amended to read as follows3 7#f7 ,ginnie ,mae securitization ,the ,government ,national ,mortgage ,association may1 at the discretion of the ,secretary1 securitize any multifamily loan insured under this subsection1 provided that-- 7,a7 the ,federal ,housing ,administration provides mortgage insurance based on the unpaid principal balance of the loan1 as shall be described by regulation2 7,b7 the ,federal ,housing ,administration shall not require an assignment fee for mortgage insurance claims related to the securitized mortgages2 7,c7 the risk-sharing agreement must provide for reimbursement to the ,secretary by the risk share partner or partners for either all or a portion of the losses incurred on the loans insured1 regardless of whether the servicing rights or other related mortgage interest have been transferred to a different entity2 and 7,d7 any entity that subsequently acquires the servicing rights or other related mortgage interest of the risk share partner or partners shall not assume any obligation under the risk-sharing agreement4 4 7b7 ,national ,housing ,act ,clause 7ii7 of the first sentence of section #cjf7;g77#a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agba7;g77#a77 is amended-- 7#a7 by striking the semicolon and inserting a comma2 and 7#b7 by inserting before the period at the end the following3 1 or which are insured under subsection 7c7 of section #edb of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4#agaez-#bb71 subject to the terms of subsection 7c77#f7 of such section4 7c7 ,effective date2 sunset 7#a7 ,effective date ,the amendments made by this section shall take effect beginning on ,october #a1 #bjad4 7#b7 ,sunset ,the amendments made by this section shall expire on ,september #cj1 #bjba4 ,effective ,october #a1 #bjba1 the provisions of paragraph 7#f7 of section #edb7;c7 of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#bb7;c77 and clause 7ii7 of the first sentence of section #cjf7;g77#a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agba7;g77#a771 as in effect on the day before the date of the enactment of this ,act1 are hereby revived4 ,,vi ,transition and termination of ,fannie ,mae and ,freddie ,mac #fja4 ,minimum housing finance system criteria to be met prior to system certification date 7a7 ,system certification date ,the system certification date shall be the date that the ,board of ,directors1 in its sole discretion1 certifies by a majority vote that-- 7#a7 the ,corporation is able to undertake1 in a manner found satisfactory to the ,board1 the duties specified by this ,act1 and any amendments made by this ,act2 and 7#b7 all the minimum criteria set forth under subsection 7b7 with respect to the new housing finance system have been fully satisfied4 7b7 ,minimum housing finance system criteria ,the ,board of ,directors shall consider the following minimum criteria in determining whether to certify that the new housing finance system is ready3 7#a7 ,taxpayer protection ,the ,department of the ,treasury advised the ,board of ,directors that laws and contracts are in place to provide for compensation to the ,department for its support of the enterprises and the housing finance system4 7#b7 ,securitization platform and standardized securities ,the ,securitization ,platform is developed and able to issue standardized securities for the single-family covered securities market4 7#c7 ,small lender mutuals ,at least #a small lender mutual is fully operational and able to undertake the duties specified in section #cae4 7#d7 ,approved entities ,a sufficient number of approved entities have been approved pursuant the provisions of subtitle ,b of title ,,iii-- 7,a7 to assume a reasonable level of first loss position through approved guarantors or through approved credit risk-sharing mechanisms established under section #cjb2 and 7,b7 to generate a substantial volume of secondary mortgage market activity with respect to eligible single-family mortgage loans collateralizing single-family covered securities insured in accordance with this ,act4 7#e7 ,multifamily market 7,a7 ,well-functioning multifamily market ,the ,corporation has approved multiple multifamily guarantors pursuant to title ,,vii who are providing sufficient multifamily financing in the primary1 secondary1 and tertiary geographical markets1 including in rural markets and through a diversity of experienced multifamily lenders4 7,b7 ,requirements of the ,act ,approved multifamily guarantors are meeting the requirements of this ,act4 7,c7 ,competitive market ,there is a competitive multifamily market for approved multifamily guarantors engaging in multifamily covered securities4 7,d7 ,rule of construction ,noncompliance with the requirements of this ,act by any individual approved multifamily guarantor shall not constitute grounds to prevent system certification4 7c7 ,rule of construction ,the ,corporation shall take all steps necessary to meet each minimum housing finance system criteria set forth under subsection 7b7 as expeditiously and efficiently as practicable4 ,the ,corporation may commence providing guarantees on single-family or multifamily covered securities prior to meeting all the minimum housing finance system criteria set forth under subsection 7b74 7d7 ,notification to ,congress 7#a7 ,in general ,the ,chairperson shall promptly 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 written notification that the ,board of ,directors has certified that the criteria set forth under subsection 7b7 have been met4 7#b7 ,timing ,the ,corporation shall provide the notification required under paragraph 7#a7 not later than #e years after the date of enactment of this ,act4 7#c7 ,deadline extensions 7,a7 ,first extension ,if the ,board of ,directors is unable to make the certification required by this section prior to the deadline required in paragraph 7#b71 the ,board of ,directors may1 with an affirmative vote of the majority of the ,board1 extend the deadline an additional #b years4 7,b7 ,second extension ,if1 after the expiration of the first extension of #b years1 the ,board of ,directors is unable to make the certification required by this section1 the ,board of ,directors may1 with an affirmative vote of at least #b_/c of the ,board1 extend the deadline an additional #b years4 7,c7 ,additional extensions ,if1 after the expiration of the second extension of #b years1 the ,board of ,directors is unable to make the certification required by this section1 the ,board of ,directors may1 with a unanimous affirmative vote of the ,board and 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 extend the deadline an additional year1 and annually thereafter utilizing the same process described in this subparagraph until such time as the ,board of ,directors makes the certification required by this section4 #fjb4 ,transition of the housing finance system 7a7 ,transition plan ,the ,transition ,committee established under section #djd shall develop a transition plan not later than #ab months after the date of enactment of this ,act to facilitate an orderly transition to the new housing finance system authorized by this ,act4 7b7 ,contents of plan ,the transition plan required under subsection 7a7 shall include-- 7#a7 estimated timeframes by which to achieve the minimum housing finance system criteria set forth under section #fja7;b7 within #e years after the date of enactment of this ,act2 7#b7 detailed actions that the ,corporation will take to achieve such minimum criteria2 7#c7 estimated timeframes and detailed actions that the ,corporation1 including the ,federal ,housing ,finance ,agency1 will take to provide an orderly wind down of the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation2 7#d7 a detailed inventory of all intellectual property owned1 held1 or licensed by the enterprises1 including patents1 trademarks1 software1 credit evaluation systems1 and data and information on mortgage performance and plans for utilizing any such intellectual property1 technology1 infrastructure1 or processes of the enterprises in effecting the transition plan2 7#e7 a description of and updates on the ongoing operations of the ,corporation1 including the operations of the ,federal ,housing ,finance ,agency2 7#f7 detailed plans and timeframes for establishing1 as soon as practicable1 a multifamily covered securities market2 7#g7 detailed plans and timeframes for establishing1 as soon as practicable1 a standardized security issued through the ,securitization ,platform for the single-family covered securities market2 and 7#h7 detailed plans for increasing the level of credit risk-sharing in the secondary mortgage market4 7c7 ,considerations 7#a7 ,in general ,for purposes of facilitating an orderly transition to the new housing finance system authorized by this ,act1 the ,corporation shall consider in determining how to best fulfill the requirements of this title the estimated impact of various transition options with respect to the following3 7,a7 ,housing prices and affordability4 7,b7 ,the effectiveness of consumer protections in the housing market4 7,c7 ,volume and characteristics of mortgage loan originations4 7,d7 ,the condition of the rental housing market4 7,e7 ,small lender participation in the secondary mortgage market4 7,f7 ,access to credit in rural and underserved communities4 7,g7 ,competition among market participants4 7,h7 ,the condition of the multifamily housing market4 7,i7 ,innovation among secondary mortgage market participants4 7,j7 ,taxpayer repayment4 7,k7 ,private capital in the secondary mortgage market4 7#b7 ,inclusion in annual report ,a description and analysis of each consideration required under paragraph 7#a7 shall be included in the report required to be submitted to ,congress under subsection 7d74 7d7 ,report to ,congress 7#a7 ,in general ,not later than #ab months after the date of enactment of this ,act and in accordance with section #djd7;c77#b71 the ,transition ,committee shall submit the transition plan required under subsection 7a7 to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7#b7 ,updates ,not later than #a year after the date on which the transition plan is submitted under paragraph 7#a7 and annually thereafter until the system certification date1 the ,chairperson shall-- 7,a7 update the transition plan1 subject to the requirements of subsection 7b72 and 7,b7 submit such updated plan to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 #fjc4 ,resolution authority2 technical amendments 7a7 ,effective date ,the amendments made by this section shall take effect on the agency transfer date4 7b7 ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib ,section #acfg of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #dfag7 is amended-- 7#a7 by striking stockholder and stockholders and inserting shareholder1 member1 and shareholders1 members11 respectively1 each place those terms appear2 7#b7 by striking wind up and winding up and inserting wind down and winding down1 respectively1 each place those terms appear2 7#c7 in subsection 7a7-- 7,a7 in paragraph 7#c77;,g71 by striking 1 and there is no reasonable prospect for the regulated entity to become adequately capitalized 7as defined in section #acfd7;a77#a772 7,b7 by striking paragraph 7#c77;,j7 and inserting the following3 7,j7 ,insolvency ,the regulated entity is insolvent or near-insolvent4 2 7,c7 by striking paragraph 7#c77,k72 7,d7 by redesignating paragraph 7#c77,l7 as paragraph 7#c77,k72 and 7,e7 in paragraph 7#d77;,b7-- 7i7 in the heading1 by striking critically undercapitalized regulated entity and inserting insolvent or near-insolvent regulated entities2 7ii7 in the matter preceding clause 7i71 by striking critically undercapitalized and inserting insolvent or near-insolvent2 and 7iii7 in clause 7i71 by striking critically undercapitalized and inserting insolvent or near-insolvent2 7#d7 in subsection 7b7-- 7,a7 in paragraph 7#b77;,b7-- 7i7 in clause 7iii71 by adding and after conservator or receiver22 7ii7 by striking clause 7iv72 and 7iii7 by redesignating clause 7v7 as clause 7iv72 7,b7 in paragraph 7#b77;,h71 by striking of proceeds realized from the performance of contracts or sale of the assets of a regulated entity and inserting that funds are available2 7,c7 in paragraph 7#b77;,i77i77,i71 by striking section #acdh and inserting part ,,ii of this subtitle2 7,d7 in paragraph 7#b77;,i77iii71 by striking section #acag or #acgi;,b and inserting subtitle ,b of this ,act2 7,e7 by striking paragraph 7#c77;,a7 and inserting the following3 7,a7 ,in general ,the ,agency-- 7i7 may1 as receiver1 determine claims in accordance with the requirements of this subsection and any regulations prescribed under paragraph 7#d72 and 7ii7 may define the term creditor and may distinguish between creditors1 in order to facilitate the orderly administration of the regulated entity in conservatorship or receivership1 in accordance with the requirements of this section4 2 7,f7 in paragraph 7#c77;,b71 by striking closed2 7,g7 in paragraph 7#e77;,d77iii77,,ii71 by inserting legally enforceable and perfected before security interest2 7,h7 by striking paragraph 7#g72 7,i7 by redesignating paragraphs 7#h7 through 7#ai7 as paragraphs 7#g7 through 7#ah71 respectively2 and 7,j7 in paragraph 7#aj77;,e71 as so redesignated-- 7i7 in clause 7ii71 by striking 2 and and inserting a semicolon2 7ii7 in clause 7iii71 by striking the period and inserting a semicolon2 and 7iii7 by adding at the end the following3 7iv7 prohibits discrimination on the basis of race1 sex1 or ethnic group in the solicitation or consideration of offers2 and 7v7 mitigates the potential for serious adverse effects to the financial system4 2 and 7#e7 by striking subsection 7c7 and inserting the following3 7c7 ,priority of expenses and unsecured claims 7#a7 ,in general ,unsecured claims against a regulated entity1 or the receiver therefor1 that are proven to the satisfaction of the receiver shall have priority in the following order3 7,a7 ,claims of the receiver for administrative expenses4 7,b7 ,any amounts owed to the ,united ,states1 unless the ,united ,states agrees or consents otherwise4 7,c7 ,wages1 salaries1 or commissions1 including vacation1 severance1 and sick leave pay earned by an individual 7other than an individual described in subparagraph 7,f771 but only to the extent of #ab1dge for each individual 7as indexed for inflation1 by regulation of the ,agency7 earned not later than #ahj days before the date of appointment of the ,agency as receiver4 7,d7 ,contributions owed to employee benefit plans arising from services rendered not later than #ahj days before the date of appointment of the ,agency as receiver1 to the extent of the number of employees covered by each such plan1 multiplied by #ab1dge 7as indexed for inflation1 by regulation of the ,agency71 less the aggregate amount paid to such employees under subparagraph 7,c71 plus the aggregate amount paid by the receivership on behalf of such employees to any other employee benefit plan4 7,e7 ,any claim arising solely from a covered guarantee transaction involving the regulated entity4 7,f7 ,any other general or senior liability of the regulated entity 7which is not a liability described under subparagraph 7,g71 7,h71 or 7,i774 7,g7 ,any obligation subordinated to general creditors 7which is not an obligation described under subparagraph 7,h7 or 7,i774 7,h7 ,any wages1 salaries1 or commissions1 including any vacation1 severance1 and sick leave pay earned1 owed to senior executives and directors of the regulated entity4 7,i7 ,any obligation to shareholders or members arising as a result of their status as shareholders or members4 7#b7 ,claims of the ,united ,states ,unsecured claims of the ,united ,states shall1 at a minimum1 have a higher priority than liabilities of the regulated entity that count as regulatory capital4 7#c7 ,creditors similarly situated ,all creditors that are similarly situated under paragraph 7#a7 shall be treated in a similar manner1 except that the receiver may take any action 7including making payments7 that does not comply with this subsection1 if-- 7,a7 the ,agency determines that such action is necessary to-- 7i7 maximize the value of the assets of the regulated entity2 7ii7 maximize the present value return from the sale or other disposition of the assets of the regulated entity2 7iii7 initiate and continue operations essential to implementation of the receivership or any limited-life regulated entity2 7iv7 minimize the amount of any loss realized upon the sale or other disposition of the assets of the regulated entity2 or 7v7 preserve the financial stability of the ,united ,states2 and 7,b7 all creditors that are similarly situated under paragraph 7#a7 receive not less than the amount provided in subsection 7f77#b74 7#d7 ,definition ,as used in this subsection1 the term administrative expenses of the receiver includes-- 7,a7 the actual1 necessary costs and expenses incurred by the receiver in preserving the assets of a failed regulated entity or liquidating or otherwise resolving the affairs of a failed regulated entity2 and 7,b7 any obligations that the receiver determines are necessary and appropriate to facilitate the smooth and orderly liquidation or other resolution of the regulated entity4 2 7#f7 by redesignating subsections 7d7 through 7j7 as subsections 7e7 and 7k71 respectively2 7#g7 by inserting after section 7c7 the following3 7d7 ,subrogation 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,agency1 upon the payment to any person as provided in subsection 7c7 in connection with any covered guarantee transaction 7as that term is defined in section #b of the ,housing ,finance ,reform and ,taxpayer ,protection ,act of #bjad71 shall be subrogated to all rights of the person against such regulated entity to the extent of such payment or assumption4 7#b7 ,dividends on subrogated amounts ,the subrogation of the ,agency under paragraph 7#a7 with respect to any regulated entity shall include the right on the part of the ,agency to receive the same dividends1 fees1 or other amounts from the proceeds of the assets of such regulated entity and recoveries on account of stockholders' liability as would have been payable to the person on a claim related to the covered guarantee transaction4 7#c7 ,waiver of certain claims ,the ,agency shall waive1 in favor only of any person against whom stockholders' individual liability may be asserted1 any claim on account of such liability in excess of the liability1 if any1 to the regulated entity or its creditors1 for the amount unpaid upon such stock in such regulated entity1 but any such waiver shall be effected in such manner and on such terms and conditions as will not increase recoveries or dividends on account of claims to which the ,agency is not subrogated4 2 7#h7 in subsection 7e71 as so redesignated-- 7,a7 in paragraph 7#h71 by adding at the end the following3 7,h7 ,recordkeeping ,the ,agency may prescribe regulations requiring that regulated entities maintain such records with respect to qualified financial contracts 7including market valuations7 that the ,agency determines to be necessary or appropriate in order to assist the ,agency as receiver for a regulated entity in being able to exercise its rights and fulfill its obligations under this paragraph or paragraph 7#i7 or 7#aj74 2 7,b7 by striking paragraph 7#i7 and inserting the following3 7#i7 ,transfer of qualified financial contracts 7,a7 ,in general ,in making any transfer of assets or liabilities of a regulated entity in default which includes any qualified financial contract1 the conservator or receiver for such regulated entity shall either-- 7i7 transfer to #a person1 other than a person for which a conservator1 receiver1 trustee in bankruptcy1 or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding-- 7,i7 all qualified financial contracts between any person 7or any affiliate of such person7 and the regulated entity in default2 7,,ii7 all claims of such person 7or any affiliate of such person7 against such regulated entity under any such contract 7other than any claim which1 under the terms of any such contract1 is subordinated to the claims of general unsecured creditors of such regulated entity72 7,,iii7 all claims of such regulated entity against such person 7or any affiliate of such person7 under any such contract2 and 7,,iv7 all property securing1 or any other credit enhancement for any contract described in subclause 7,i71 or any claim described in subclause 7,,ii7 or 7,,iii7 under any such contract2 or 7ii7 transfer none of the financial contracts1 claims1 or property referred to under clause 7i7 7with respect to such person and any affiliate of such person74 7,b7 ,transfer to foreign bank1 financial institution1 or branch or agency thereof ,in transferring any qualified financial contracts and related claims and property under subparagraph 7,a77i71 the ,agency as receiver for a regulated entity shall not make such transfer to a foreign person unless1 under the law applicable to such foreign person1 to the qualified financial contracts1 and to any netting contract1 any security agreement or arrangement or other credit enhancement related to #a or more qualified financial contracts1 the contractual rights of the parties to such qualified financial contracts1 netting contracts1 security agreements or arrangements1 or other credit enhancements1 are enforceable substantially to the same extent as permitted under this section4 2 and 7,c7 in paragraph 7#ac77;,c77ii7-- 7i7 by redesignating subclause 7,,iii7 as subclause 7,,iv72 7ii7 by striking and at the end of subclause 7,,ii72 and 7iii7 by inserting after subclause 7,,ii7 the following3 7,,iii7 apply to the rights of parties to netting contracts pursuant to subtitle ,a of title ,,iv of the ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ddja et seq472 or 2 7#i7 in subsection 7g71 as so redesignated-- 7,a7 by striking section or at the request of the ,director and inserting title2 and 7,b7 by striking a conservator or a receiver and inserting the conservator or receiver hereunder1 and any remedy against the ,agency as conservator or receiver shall be limited to money damages determined in accordance with this title2 7#aj7 in subsection 7j71 as so redesignated-- 7,a7 in paragraph 7#a77;,a77ii71 by striking shall and inserting may2 7,b7 in paragraph 7#b7-- 7i7 in the heading1 by striking ,charter and establishment and inserting ,establishment of ,limited-,life ,regulated ,entities2 and 7ii7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,transfer of registered status ,if the ,agency is appointed as receiver for an enterprise1 the limited-life regulated entity established under this subsection with respect to such enterprise shall1 by operation of law and immediately upon its organization1 succeed to the registered status of the enterprise and thereafter operate in accordance with1 and subject to1 this ,act and any other provision of law to which an enterprise is subject1 except as otherwise provided in this subsection4 2 7,c7 in paragraph 7#c7-- 7i7 in the heading1 by inserting and operating funds after ,capital stock2 7ii7 by redesignating subparagraphs 7,a7 and 7,b7 as subparagraphs 7,b7 and 7,c71 respectively2 7iii7 by inserting prior to subparagraph 7,b71 as so redesignated1 the following3 7,a7 ,capital not required ,notwithstanding any other provision of ,federal or ,state law1 a limited-life regulated entity may1 if permitted by the ,agency1 operate without any capital or surplus as the ,agency may in its discretion determine to be appropriate4 2 7iv7 in subparagraph 7,b71 as so redesignated1 by striking ,no agency requirement and inserting ,no contribution by the ,agency required2 and 7v7 by adding at the end the following3 7,d7 ,operating funds ,upon the organization of a limited-life regulated entity1 and thereafter1 as the ,agency may1 in its discretion1 determine to be necessary or advisable1 the ,agency may make available to the limited-life regulated entity1 upon such terms and conditions and in such form and amounts as the ,agency may in its discretion determine1 funds for the operation of the limited-life regulated entity in lieu of capital4 2 7,d7 in paragraph 7#f7-- 7i7 in the heading1 by striking ,winding up and inserting ,winding down2 7ii7 by striking subparagraph 7,a7 and inserting the following3 7,a7 ,in general ,subject to subparagraph 7,b71 the ,agency shall wind down the affairs of a limited-life regulated entity established under this subsection-- 7i7 with respect to a ,federal ,home ,loan ,bank1 not later than #b years after the date of its organization2 and 7ii7 with respect to an enterprise1 within such period of time as the ,agency determines to be necessary and appropriate4 2 and 7iii7 in subparagraph 7,b71 by inserting established under this subsection with respect to a ,federal ,home ,loan ,bank after limited-life regulated entity2 7,e7 in paragraph 7#g77;,a77iv7-- 7i7 in the matter preceding subclause 7,i71 by inserting the ,agency determines that such actions are necessary to after that do not comply with this clause1 if2 and 7ii7 by striking subclauses 7,i7 and 7,,ii7 and inserting the following3 7,i7 maximize the value of the assets of the regulated entity2 7,,ii7 maximize the present value return from the sale or other disposition of the assets of the regulated entity2 7,,iii7 initiate and continue operations essential to the implementation of the limited-life regulated entity2 7,,iv7 minimize the amount of any loss realized upon the sale or other disposition of the assets of the regulated entity2 7,v7 preserve the financial stability of the ,united ,states2 and 7,,vi7 ensure that all creditors that are similarly situated under subsection 7c77#a7 receive not less than the amount provided in subsection 7f77#b74 2 and 7,f7 in paragraph 7#aa77;,c7-- 7i7 in clause 7i71 in the matter preceding subclause 7,i71 by striking 7other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by an enterprise72 and 7ii7 by inserting at the end the following3 7ii7 ,hearing ,the hearing required pursuant to this subparagraph shall be before a court of the ,united ,states1 which shall have jurisdiction to conduct such hearing and to authorize the limited-life regulated entity to obtain secured credit under clause 7i74 2 and 7#aa7 by striking subsection 7k77relating to charter revocation71 as so designated by ,public ,law #aaj-bhi4 7c7 ,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 or duties that are vested in the ,federal ,housing ,finance ,agency or the ,director thereof with respect to supervision and regulation of the enterprises1 until such time as the ,federal ,housing ,finance ,agency and the position of the ,director are transferred in accordance with title ,,iv of this ,act4 #fjd4 ,wind down 7a7 ,authority of ,,fhfa ,director 7#a7 ,in general ,beginning on the date of enactment of this ,act and ending on the system certification date1 the ,,fhfa ,director1 in consultation with the ,corporation1 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 ,,fhfa ,director under paragraph 7#a7-- 7,a7 the sale1 exchange1 license1 or other disposition of any asset for value subject to the wind down required under this section shall be prohibited1 if the ,corporation-- 7i7 in its discretion determines that such sale1 exchange1 license1 or disposition would materially interfere with the ability of the ,corporation to carry out the requirements of this ,act2 and 7ii7 notifies1 in writing1 the ,,fhfa ,director within #ad days of such determination2 and 7,b7 the ,corporation may direct the conservator of the enterprises to sell1 exchange1 license1 or otherwise dispose of any asset for value subject to the wind down required under this section1 if the ,board of ,directors certifies by a majority vote that-- 7i7 not completing such sale1 transfer1 exchange1 license1 or other disposition for value would be inconsistent with the transition plan approved pursuant to section #fjb2 and 7ii7 such sale1 transfer1 exchange1 license1 or disposition for value would not violate the duties of the conservator4 7b7 ,authority of ,corporation ,beginning on the system certification date1 the ,corporation 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 7c7 ,resolution plan 7#a7 ,in general ,each enterprise shall develop a resolution plan in order to facilitate an orderly transition to the new housing finance system authorized by this ,act4 7#b7 ,timing ,each resolution plan required to be developed under paragraph 7#a7 shall be submitted to the ,,fhfa ,director not later than #ij days after the agency transfer date4 7#c7 ,contents of plans ,each resolution plan required to be developed under paragraph 7#a7 shall include a full description and valuation of the assets1 liabilities1 and contractual obligations of the enterprise1 and any other information that the ,,fhfa ,director may require4 7#d7 ,retention of authority ,notwithstanding any provision of a resolution plan required to be developed under paragraph 7#a71 the ,federal ,housing ,finance ,agency and the ,corporation shall retain and exercise full discretion to the extent that either the ,agency or the ,corporation utilizes or relies on such a resolution plan1 either in whole or in part1 in fulfilling any duty or responsibility required by this ,act4 7#e7 ,public summary ,after reviewing each resolution plan required to be developed under paragraph 7#a71 the ,corporation shall make available to the public a summary of each such resolution plan4 7#f7 ,valuation study ,after reviewing each resolution plan required to be developed under paragraph 7#a71 the ,corporation shall conduct a valuation study of each enterprise's business segments1 including any technology1 business unit1 legacy book1 and other assets and liabilities that may be sold for value in a manner consistent with the purposes and requirements of this ,act4 7d7 ,prohibition on new business 7#a7 ,federal ,national ,mortgage ,association 7,a7 ,new business prohibited ,effective on the system certification date1 the ,federal ,national ,mortgage ,association shall have no authority to conduct new business under the ,federal ,national ,mortgage ,association ,charter ,act4 7,b7 ,new business defined ,for purposes of subparagraph 7,a71 the term new business means any new-- 7i7 purchase of1 servicing of1 or dealing in any insured or conventional mortgages by the ,federal ,national ,mortgage ,association under section #cjb7;b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agag7;b772 7ii7 purchase of a mortgage by the ,federal ,national ,mortgage ,association in its secondary mortgage market operations under section #cjd7;a7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agai7;a772 7iii7 issue of an obligation of the ,federal ,national ,mortgage ,association under section #cjd7;b7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agai7;b771 including-- 7,i7 bonds1 notes1 debentures1 and other similar instruments2 7,,ii7 capital lease obligations2 7,,iii7 obligations in respect of letters of credit1 bankers acceptances1 or other similar instruments2 7,,iv7 guarantees of new securities based on mortgages set aside2 and 7,v7 swap1 security-based swap1 derivative product1 or other similar instrument2 7iv7 setting aside of any mortgages held by the ,federal ,national ,mortgage ,association and any new issue and sale of securities based on the mortgages so set aside under section #cjd7;d7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agai7;d772 and 7v7 issue of a subordinated obligation of the ,federal ,national ,mortgage ,association under section #cjd7;e7 of the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agai7;e774 7,c7 ,exclusion from new business ,the term new business shall not include any new-- 7i7 purchase by the ,federal ,national ,mortgage ,association of a non-performing mortgage from a pool of mortgages previously set aside by the enterprise2 7ii7 issue of an obligation of the ,federal ,national ,mortgage ,association if1 after giving effect to the issuance1 the aggregate amount of such obligations does not exceed #abj percent of the amount of mortgage assets permitted to be owned by the enterprise under section #fje2 7iii7 setting aside of mortgages previously set aside by the ,federal ,national ,mortgage ,association1 or any new issue and sale of securities based on the mortgages so previously set aside1 to refund or replace an outstanding issue of securities based on mortgages previously set aside1 if the face amount of the refunding or replacing mortgage-backed securities does not exceed the face amount of the mortgage-backed securities being refunded or replaced2 7iv7 transfer of guarantees of mortgage-backed securities guaranteed by the ,federal ,national ,mortgage ,association if the mortgage loans collateralizing such securities are refinanced1 regardless of the value of the underlying collateral and the homeowner's current employment status and income2 or 7v7 entry into any swap1 security-based swap1 or other similar instrument1 or purchase of sale of any derivative product1 or other similar instrument1 to facilitate the orderly wind down of the ,federal ,national ,mortgage ,association and appropriate loss mitigation on any outstanding guarantees of the ,federal ,national ,mortgage ,association under section #fje4 7,d7 ,new business prohibition not to affect outstanding enterprise debt or guarantees ,nothing in subparagraph 7,a7 shall adversely affect the rights and obligations of any holders of-- 7i7 outstanding debt obligations of the ,federal ,national ,mortgage ,association1 including any-- 7,i7 bonds1 notes1 debentures1 or other similar instruments2 7,,ii7 capital lease obligations2 7,,iii7 obligations in respect of letters of credit1 bankers' acceptances1 or other similar instruments2 or 7,,iv7 swap1 security-based swap1 derivative product1 or other similar instrument2 or 7ii7 mortgage-backed securities guaranteed by the ,federal ,national ,mortgage ,association4 7#b7 ,federal ,home ,loan ,mortgage ,corporation 7,a7 ,new business prohibited ,effective on the system certification date1 the ,federal ,home ,loan ,mortgage ,corporation shall have no authority to conduct new business under the ,federal ,home ,loan ,mortgage ,corporation ,act4 7,b7 ,new business defined ,for purposes of subparagraph 7,a71 the term new business means any new-- 7i7 purchase of1 servicing of1 or dealing in any insured or conventional mortgages by the ,federal ,home ,loan ,mortgage ,corporation under section #cje7;a7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a772 7ii7 issue of an obligation of the ,federal ,home ,loan ,mortgage ,corporation under section #cjf7;a7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adee7;a771 including-- 7,i7 bonds1 notes1 debentures1 and other similar instruments2 7,,ii7 capital lease obligations2 7,,iii7 obligations in respect of letters of credit1 bankers acceptances1 or other similar instruments2 7,,iv7 guarantees of new securities based on mortgages set aside2 and 7,v7 swap1 security-based swap1 derivative product1 or other similar instrument2 7iii7 issue of mortgage-backed securities under the ,federal ,home ,loan ,mortgage ,corporation ,act2 and 7iv7 issue of a subordinated obligation of the ,federal ,home ,loan ,mortgage ,corporation under the ,federal ,home ,loan ,mortgage ,corporation ,act4 7,c7 ,exclusion from new business ,the term new business shall not include any new-- 7i7 purchase by the ,federal ,home ,loan ,mortgage ,corporation of a non-performing mortgage from a pool of mortgages previously set aside by the enterprise2 7ii7 issue of an obligation of the ,federal ,home ,loan ,mortgage ,corporation if1 after giving effect to the issuance1 the aggregate amount of such obligations does not exceed #abj percent of the amount of mortgage assets permitted to be owned by the enterprise under section #fje2 7iii7 issue of mortgage-backed securities1 to refund or replace an outstanding issue of mortgage-backed securities1 if the face amount of the refunding or replacing mortgage-backed securities does not exceed the face amount of the mortgage-backed securities being refunded or replaced2 7iv7 transfer of guarantees of mortgage-backed securities guaranteed by the ,federal ,home ,loan ,mortgage ,corporation if the mortgage loans collateralizing such securities are refinanced1 regardless of the value of the underlying collateral and the homeowner's current employment status and income2 or 7v7 entry into any swap1 security-based swap1 or other similar instrument1 or purchase of sale of any derivative product1 or other similar instrument1 to facilitate the orderly wind down of the ,federal ,home ,loan ,mortgage ,corporation and appropriate loss mitigation on any outstanding guarantees of the ,federal ,home ,loan ,mortgage ,corporation under section #fje4 7,d7 ,new business prohibition not to affect outstanding enterprise debt or guarantees ,nothing in subparagraph 7,a7 shall adversely affect the rights and obligations of any holders of-- 7i7 outstanding debt obligations of the ,federal ,home ,loan ,mortgage ,corporation1 including any-- 7,i7 bonds1 notes1 debentures1 or other similar instruments2 7,,ii7 capital lease obligations2 7,,iii7 obligations in respect of letters of credit1 bankers' acceptances1 or other similar instruments2 or 7,,iv7 swap1 security-based swap1 derivative product1 or other similar instrument2 or 7ii7 mortgage-backed securities guaranteed by the ,federal ,home ,loan ,mortgage ,corporation4 7#c7 ,rule of construction ,the prohibition on new business by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation set forth in paragraphs 7#a7 and 7#b7 shall not prohibit1 nor be construed to prohibit1 the ,corporation from managing such entity4 7#d7 ,existing guarantee obligations 7,a7 ,explicit guarantee ,the full faith and credit of the ,united ,states is pledged to the payment of all amounts which may be required to be paid under any obligation described under paragraphs 7#a7 and 7#b71 including any obligation issued on or after the system certification date to refund or replace an obligation that was outstanding on the day before the system certification date4 7,b7 ,loan eligibility ,the enterprises shall include as eligible loans for the purposes of refinancing all current loans that qualify as eligible mortgage loans and meet those underwriting requirements for eligibility for same servicer refinancing1 except that the enterprises may not disqualify or impose varying rules based on loan-to-value1 combined loan-to-value1 employment status1 or income with regard to refinancing mortgage loans that collateralize mortgage-backed securities issued by an enterprise prior to the system certification date4 7,c7 ,continued dividend payments ,notwithstanding the provisions of this section or any other provision of law1 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-- 7i7 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 shall be permitted if it facilitates the sale of assets of the enterprises to facilitate compliance with this title2 and 7ii7 shall remain in effect until the guarantee obligations described under paragraphs 7#a7 and 7#b7 are fully extinguished4 7,d7 ,applicability ,notwithstanding the provisions of this section1 all guarantee fee amounts derived from the mortgage guarantee business of the enterprises in existence as of the system certification date1 after satisfying the fee amounts required to be collected by section #acbg of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #dedg71 shall be subject to the terms of the ,senior ,preferred ,stock ,purchase ,agreement4 7e7 ,charters revoked ,effective upon the date the guarantee obligations under subsection 7d77#d77;,a7 are fully extinguished3 7#a7 ,the ,federal ,national ,mortgage ,association ,charter ,act is repealed1 except as the provisions of such ,act relate to the establishment1 purposes1 powers1 authorities1 duties1 supervision1 administration1 and management of the ,government ,national ,mortgage ,association4 7#b7 ,the ,federal ,home ,loan ,mortgage ,corporation ,act is repealed4 7f7 ,authority to insure outstanding mortgage-backed securities2 mortgage-backed securities of the enterprises 7#a7 ,authority to insure mortgage-backed securities2 authority to develop enterprise mortgage-backed securities ,after the agency transfer date1 and subject to such procedures1 standards1 terms1 and conditions as may be adopted by the ,corporation under paragraph 7#b71 the ,corporation may-- 7,a7 upon application and in exchange for a fee determined by the ,corporation1 provide insurance on outstanding mortgage-backed securities issued by the enterprises2 and 7,b7 facilitate1 including through the operations of the enterprises or the utilization of the ,platform1 the-- 7i7 exchange of mortgage-backed securities issued by either enterprise for covered securities2 7ii7 exchange of mortgage-backed securities issued by #a enterprise for those of the other enterprise2 7iii7 issuance of mortgage-backed securities by both enterprises through a single issuer2 and 7iv7 issuance of real estate mortgage investment conduit securities1 consisting of mortgage-backed securities issued by the enterprises4 7#b7 ,development of procedures1 standards1 terms1 and conditions ,the ,corporation shall develop and adopt procedures1 standards1 terms1 and conditions to enable the ,corporation and each of the enterprises1 as applicable1 to implement each of the activities described in paragraph 7#a74 7#c7 ,required procedures1 standards1 terms1 and conditions ,in the development and adoption of the procedures1 standards1 terms1 and conditions required under paragraph 7#b71 the ,corporation shall consider the effect of each activity with respect to the following3 7,a7 ,lender access to the secondary mortgage market4 7,b7 ,the liquidity and trading price of existing enterprise mortgage-backed securities4 7,c7 ,the ability of market participants and the enterprises to issue new mortgage-backed securities4 7,d7 ,the cost to the enterprises or the ,corporation to exchange1 restructure1 or insure mortgage-backed securities4 7g7 ,report to ,congress 7#a7 ,in general ,prior to the agency transfer date1 the ,,fhfa ,director shall submit a study considering the feasibility of activities described in subsection 7f77#a7 to-- 7,a7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 7,b7 the ,committee on ,financial ,services of the ,house of ,representatives2 and 7,c7 the ,corporation4 7#b7 ,updates ,following the agency transfer date1 the ,corporation shall provide updates on the activities described in subsection 7f77#a7 in the transition plan 7and in each annual update thereof7 required under section #fjb4 7h7 ,division of assets and liabilities2 authority to establish holding companies1 trusts1 and subsidiaries 7#a7 ,in general ,the action and procedures required under subsection 7a7-- 7,a7 shall include the establishment and execution of plans to manage assets toward the liquidation of liabilities and provide for an equitable division1 distribution1 and liquidation of the assets and liabilities of an enterprise1 including any infrastructure1 property1 including intellectual property1 historic data1 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 7,b7 may provide for the establishment of-- 7i7 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 enterprise or both enterprises2 7ii7 #a or more trusts to which to transfer-- 7,i7 outstanding debt obligations of an enterprise or both enterprises2 or 7,,ii7 outstanding mortgages held for the purpose of collateralizing mortgage-backed securities guaranteed by an enterprise or both enterprises2 and 7iii7 #a or more subsidiaries or joint ventures with private entities for the purposes of facilitating an orderly wind down of one enterprise or both enterprises and the transition to the new housing finance system2 7,c7 may include the sale as a going concern of any holding company1 trust1 subsidiary1 or joint venture with a private entity established by an enterprise under this subsection2 and 7,d7 may provide that any holding company1 trust1 subsidiary1 or joint venture sold as a going concern may be utilized to facilitate the formation of-- 7i7 a small lender mutual under section #cae2 7ii7 an approved guarantor2 7iii7 an approved multifamily guarantor2 7iv7 an approved aggregator2 or 7v7 the ,securitization ,platform4 7#b7 ,rule of construction ,any holding company1 trust1 subsidiary1 or joint venture established by an enterprise before or after the agency transfer date is eligible to be sold by the ,federal ,housing ,finance ,agency as a going concern for the purposes described in this section4 7i7 ,recoupment by senior preferred shareholders 7#a7 ,maximum return to senior preferred shareholders ,the wind down of each enterprise required under this section shall be managed by the ,corporation to obtain resolutions that maximize the return for the senior preferred shareholders1 to the extent that such resolutions-- 7,a7 are consistent with the goals of facilitating-- 7i7 a deep1 liquid1 and resilient secondary mortgage market for single-family and multifamily mortgage-backed securities in order to support access to mortgage credit in the primary mortgage market2 and 7ii7 an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the ,corporation with minimum disruption in the availability of mortgage credit2 7,b7 are consistent with applicable ,federal and ,state law2 7,c7 comply with the requirements of this ,act and the amendments made by this ,act2 and 7,d7 protect the taxpayer from having to absorb losses incurred in the secondary mortgage market4 7#b7 ,sale of certain assets as a going concern 7,a7 ,sale for value ,if the ,federal ,housing ,finance ,agency makes the determinations in subparagraph 7,b71 the ,federal ,housing ,finance ,agency may conduct a sale1 exchange1 license1 or other disposition for value of any line of business of an enterprise1 or any function1 activity1 asset1 intellectual property1 or service of an enterprise1 as a going concern4 7,b7 ,required determinations ,a sale under subparagraph 7,a7 is permitted if the ,federal ,housing ,finance ,agency determines that the sale1 exchange1 license1 or other disposition for value-- 7i7 is consistent with the goal of an orderly transition from housing finance markets facilitated by the enterprises to housing finance markets facilitated by the ,corporation with minimum disruption in the availability of mortgage credit2 7ii7 does not impede or otherwise interfere with the ability of the ,federal ,housing ,finance ,agency or the ,corporation to carry out the functions and requirements of this ,act2 7iii7 does not transfer1 convey1 or authorize any guarantee or ,federal support1 assistance1 or backing1 implicit or explicit1 related to any such business line1 function1 activity1 or service2 7iv7 will maximize the return for the senior preferred shareholders as required under paragraph 7#a72 and 7v7 would not result in an uncompetitive primary or secondary mortgage market or otherwise limit competitiveness in the primary or secondary mortgage markets4 7,c7 ,sale of historic data ,the ,federal ,housing ,finance ,agency shall conduct a sale for value of each enterprise's historic data1 including loan-level historical performance data4 ,in conducting such sale1 the ,federal ,housing ,finance ,agency may require that-- 7i7 the purchaser of the historic data is the ,corporation or the ,securitization ,platform2 7ii7 the purchaser of the historic data makes the historic data available to the public in a searchable and easily accessible format as promptly as practicable2 and 7iii7 the purchaser of the historic data takes appropriate steps to ensure the privacy of consumers1 minimizes the collection and storage of personally identifiable financial information1 and considers statutes1 rules1 and regulations relating to the privacy of consumer credit information and personally identifiable financial information4 #fje4 ,portfolio reduction 7a7 ,graduated reduction 7#a7 ,in general ,on ,december #ca of the year after the date of enactment of this ,act1 and on ,december #ca of each year thereafter until each enterprise reaches the allowable size of the retained single-family portfolio specified in paragraph 7#b71 each enterprise shall not own single-family mortgage loan assets in excess of #he percent of the aggregate amount of the single-family mortgage loan assets that the enterprise was permitted to own as of ,december #ca of the immediately preceding calendar year4 7#b7 ,retained single-family portfolio to facilitate orderly wind down ,not later than the date on which the system certification date occurs1 the ,corporation shall establish an allowable amount of enterprise-owned single-family mortgage loan 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 loan assets defined ,for purposes of this section1 the term mortgage loan assets means1 with respect to an enterprise1 assets of such enterprise consisting of mortgage loans1 mortgage-related securities1 participation certificates1 mortgage-backed commercial paper1 obligations of real estate mortgage loan investment conduits1 and similar assets1 in each case to the extent that 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 time1 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 #fjf4 ,oversight of transition of the housing finance system 7a7 ,testimony ,beginning on the agency transfer date and ending on the system certification date1 the ,chairperson shall1 on an annual basis1 appear before the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives to provide testimony on the progress made in carrying out the requirements of this title4 7b7 ,inspector ,general report on transition ,beginning on the agency transfer date and ending on the system certification date1 the ,inspector ,general of the ,federal ,mortgage ,insurance ,corporation shall1 on an annual basis-- 7#a7 submit a report to the ,corporation and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives-- 7,a7 on the status of the transition to the new housing finance system authorized by this ,act2 7,b7 that includes recommendations to facilitate an orderly transition to the new housing finance system authorized by this ,act2 and 7,c7 on the impact of various actions required by this ,act on borrowers and small mortgage lenders2 and 7#b7 appear before the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives to provide testimony on the report required under paragraph 7#a74 7c7 ,,gao report on transition 7#a7 ,in general ,not later than #ah months after the system certification date1 the ,comptroller ,general of the ,united ,states shall conduct a study and 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 reviewing the transition required by this ,act4 7#b7 ,contents of study ,in conducting the study required under paragraph 7#a71 the ,comptroller ,general shall review-- 7,a7 all property1 including intellectual property1 of the enterprises that may have been sold1 transferred1 or licensed for value pursuant to this title or any amendment made by this title2 7,b7 the number and market share of each type of approved entity2 and 7,c7 the amount of any taxpayer repayment4 #fjg4 ,authority to establish provisional standards 7a7 ,provisional standards 7#a7 ,in general ,notwithstanding any standard required under subtitle ,b of title ,,iii or section #gjc1 the ,corporation may establish provisional standards for the approval of approved entities in order to ensure the sufficient participation of financially sound entities in the housing finance system4 7#b7 ,period of effectiveness during transition ,the ,corporation is authorized to establish provisional standards under paragraph 7#a7 prior to the system certification date and such provisional standards shall-- 7,a7 be published in the ,federal ,register for notice and comment2 and 7,b7 remain in effect until the ,corporation adopts and publishes final standards for the approval of approved entities pursuant to subtitle ,b of title ,,iii or section #gjc4 7#c7 ,period of effectiveness during unusual and exigent circumstances ,the ,corporation is authorized to establish provisional standards under paragraph 7#a7 during periods when the authority of the ,corporation under section #cje is exercised and such provisional standards shall-- 7,a7 be published in the ,federal ,register2 and 7,b7 remain in effect until the final date of the timeline established by the ,corporation pursuant to section #cje7;h77#a74 7#d7 ,rule of construction ,nothing in paragraph 7#b7 shall be construed to allow the ,corporation to delay or otherwise not implement subsection 7c7 in the required timeframe4 7b7 ,oversight of approved entities ,during any period in which a provisional standard is in effect pursuant to subsection 7a71 the ,corporation shall maintain all oversight and enforcement authorities with regard to approved entities in accordance with the requirements and authorities of subtitles ,b and ,c of title ,,iii and section #gjc4 7c7 ,phase-in of capital standards for approved guarantors 7#a7 ,in general ,the requirement under section #caa7;g77#a77;,a7 shall take effect on the date that is #h years after the date that the ,corporation approves the first approved guarantor under this section4 7#b7 ,phase-in ,beginning on the date that the ,corporation approves the first approved guarantor under this section and ending on the date set forth under paragraph 7#a71 the ,corporation shall-- 7,a7 require an approved guarantor to maintain an appropriate level of capital necessary to help ensure an orderly transition pursuant to this title2 and 7,b7 increase annually1 in equal increments1 the required amount of capital to be held by the approved guarantor4 7#c7 ,applicability ,each capital level required to be held by an approved guarantor under this section1 including each annual increase pursuant to paragraph 7#b77;,b71 shall only be applicable with respect to new business being guaranteed by an approved guarantor on and after the date each capital level becomes effective4 7d7 ,phase-in of capital standards for multifamily approved guarantors 7#a7 ,in general ,the requirement under section #gjc7;h77#a77;,a7 shall take effect on the date that is #h years after the date that the ,corporation approves the first multifamily approved guarantor under this section4 7#b7 ,phase-in ,beginning on the date that the ,corporation approves the first approved multifamily guarantor under this section and ending on the date set forth under paragraph 7#a71 the ,corporation shall-- 7,a7 require an approved multifamily guarantor to maintain an appropriate level of capital necessary to help ensure an orderly transition pursuant to this title2 and 7,b7 increase annually1 in equal increments1 the required amount of capital to be held by the approved multifamily guarantor4 7#c7 ,applicability ,each capital level required to be held by an approved multifamily guarantor under this section1 including each annual increase pursuant to paragraph 7#b77;,b71 shall only be applicable with respect to new business being guaranteed by an approved multifamily guarantor on and after the date each capital level becomes effective4 #fjh4 ,initial fund level for the ,mortgage ,insurance ,fund 7a7 ,fund amount on system certification date ,the ,corporation shall endeavor to ensure that the ,mortgage ,insurance ,fund established under section #cjc attains a reserve ratio of #j4ge percent of the sum of the outstanding principal balance of the covered securities for which insurance is projected to be provided under this ,act for the #e-year period beginning on the system certification date4 7b7 ,report to ,congress on projection ,the projection required under subsection 7a7 shall be-- 7#a7 determined by the ,corporation2 and 7#b7 reported to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 7c7 ,assessments ,pursuant to the authorities granted to the ,corporation under section #acaf7;i7 of the ,safety and ,soundness ,act1 as added by section #dje1 the amount of funds required to be held by the ,mortgage ,insurance ,fund under subsection 7a7 shall be acquired through assessments on the enterprises4 ,the assessments required under this subsection shall be in effect for the period beginning on the date of enactment of this ,act and ending on the system certification date4 ,the assessments required under this subsection shall be deposited in the ,mortgage ,insurance ,fund4 #fji4 ,,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 transitioning to and creating a fully privatized secondary mortgage market1 including recommendations on how to best carry out any displacement of the insurance model established under this ,act1 and an assessment of the cost of mortgage credit and the impact on the economy if the secondary mortgage market is fully privatized4 7b7 ,corporation plan ,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 description of the legislative1 administrative1 and regulatory actions necessary to implement the recommendations of the report4 ,,vii ,multifamily #gja4 ,establishment of multifamily subsidiaries 7a7 ,formation and governance of multifamily subsidiaries 7#a7 ,federal ,national ,mortgage ,association 7,a7 ,multifamily subsidiary plan ,the ,,fhfa ,director1 in consultation with the ,secretary of the ,treasury1 shall direct the ,federal ,national ,mortgage ,association to develop a plan1 not later than #ahj days after the date of enactment of this ,act1 to establish a multifamily subsidiary for purposes of expeditiously meeting the multifamily market minimum criteria required under section #fja4 7,b7 ,establishment of multifamily subsidiary ,pursuant to section #fjd1 the ,federal ,housing ,finance ,agency shall direct the ,federal ,national ,mortgage ,association to establish a multifamily subsidiary not later than #a year after the date of enactment of this ,act4 7#b7 ,federal ,home ,loan ,mortgage ,corporation 7,a7 ,multifamily subsidiary plan ,the ,,fhfa ,director1 in consultation with the ,secretary of the ,treasury1 shall direct the ,federal ,home ,loan ,mortgage ,corporation to develop a plan1 not later than #ahj days after the date of enactment of this ,act1 to establish a multifamily subsidiary for purposes of expeditiously meeting the multifamily market minimum criteria required under section #fja4 7,b7 ,establishment of multifamily subsidiary ,pursuant to section #fjd1 the ,federal ,housing ,finance ,agency shall direct the ,federal ,home ,loan ,mortgage ,corporation to establish a multifamily subsidiary not later than #a year after the date of enactment of this ,act4 7b7 ,transfer of functions 7#a7 ,fannie ,mae multifamily subsidiary 7,a7 ,in general ,notwithstanding the provisions under title ,,vi or any other provision of law1 effective on the date on which the multifamily subsidiary is established under subsection 7a77#a77;,b71 all employees1 functions1 activities1 infrastructure1 property1 including the ,delegated ,underwriting and ,servicing ,lender ,program and other intellectual property1 platforms1 technology1 or any other object or service of the ,federal ,national ,mortgage ,association necessary to the support1 maintenance1 and operation of the multifamily business of the ,federal ,national ,mortgage ,association shall be transferred and contributed1 without cost1 to the multifamily subsidiary4 7,b7 ,capital contribution ,in connection with the transfer required under subparagraph 7,a71 the ,federal ,national ,mortgage ,association shall contribute1 in any form or manner the ,federal ,housing ,finance ,agency may determine1 subject to the approval right of the ,secretary of the ,treasury in the ,senior ,preferred ,stock ,purchase ,agreement1 any capital necessary to ensure that the multifamily subsidiary established under subsection 7a77#a77;,b7 has1 in the determination of the ,,fhfa ,director1 sufficient capital to carry out its multifamily business1 including the ability to obtain warehouse lines of credit4 7,c7 ,ensuring continuation of ongoing operation of multifamily business ,in carrying out the multifamily business transferred pursuant to subparagraph 7,a71 the multifamily subsidiary established under subsection 7a77#a77;,b7 shall ensure that any such business continues to operate1 as applicable1 consistent with-- 7i7 the ,delegated ,underwriting and ,servicing ,lender ,program established by the ,federal ,national ,mortgage ,association2 7ii7 any other programs1 activities1 and contractual agreements of the enterprises that support the enterprises' provision of liquidity to the multifamily housing market2 and 7iii7 the provisions of this title4 7#b7 ,freddie ,mac multifamily subsidiary 7,a7 ,in general ,notwithstanding the provisions under title ,,vi or any other provision of law1 effective on the date on which the multifamily subsidiary is established under subsection 7a77#b77;,b71 all employees1 functions1 activities1 infrastructure1 property1 including the ,k ,series ,structured ,pass-,through ,certificates originated and offered under the ,program ,plus ,lender ,program and other intellectual property1 platforms1 technology1 or any other object or service of the ,federal ,home ,loan ,mortgage ,corporation necessary to the support1 maintenance1 and operation of the multifamily business of the ,federal ,home ,loan ,mortgage ,corporation shall be transferred and contributed1 without cost1 to the multifamily subsidiary4 7,b7 ,capital contribution ,in connection with the transfer required under subparagraph 7,a71 the ,federal ,home ,loan ,mortgage ,corporation shall contribute1 in any form or manner the ,federal ,housing ,finance ,agency may determine1 subject to the approval right of the ,secretary of the ,treasury in the ,senior ,preferred ,stock ,purchase ,agreement1 any capital necessary to ensure that the multifamily subsidiary established under subsection 7a77#b77;,b7 has1 in the determination of the ,,fhfa ,director1 sufficient capital to carry out its multifamily business1 including the ability to obtain warehouse lines of credit4 7,c7 ,ensuring continuation of ongoing operation of multifamily business ,in carrying out the multifamily business transferred pursuant to subparagraph 7,a71 the multifamily subsidiary established under subsection 7a77#b77;,b7 shall ensure that any such business continues to operate1 as applicable1 consistent with-- 7i7 the ,k ,series ,structured ,pass-,through ,certificates originated and offered under the ,program ,plus ,lender ,program established by the ,federal ,home ,loan ,mortgage ,corporation2 7ii7 any other programs1 activities1 and contractual agreements of the enterprises that support the enterprises' provision of liquidity to the multifamily housing market2 and 7iii7 the provisions of this title4 7c7 ,multifamily subsidiaries 7#a7 ,in general ,the multifamily subsidiaries established by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation under subsection 7a7 may retain a limited multifamily mortgage loan portfolio to-- 7,a7 aggregate mortgage loans for pooled securities executions2 7,b7 implement pilot mortgage loan programs and other risk-sharing transactions and product modification testing2 7,c7 engage in the financing of properties with rent-regulatory restrictions1 off-campus student housing1 and senior and assisted living developments2 and 7,d7 perform additional activities as may be established by the ,corporation for the purpose of facilitating the continuation of existing multifamily activities4 7#b7 ,portfolio reduction applicability ,for purposes of expeditiously meeting the multifamily market minimum criteria required under section #fja1 the multifamily subsidiaries established under subsection 7a7 shall not be subject to the portfolio reduction required under section #fje4 #gjb4 ,disposition of multifamily businesses 7a7 ,authority to manage disposition of multifamily businesses ,notwithstanding any provision of title ,,vi or any other provision of law1 the ,federal ,housing ,finance ,agency may1 on or before the system certification date1 manage the sale1 transfer1 or disposition for value of property1 including intellectual property1 technology1 platforms1 and legacy systems1 infrastructure and processes of an enterprise relating to the operation and maintenance of the multifamily business of an enterprise4 7b7 ,required establishment of well-functioning multifamily covered security market ,in exercising the authority in subsection 7a71 the ,federal ,housing ,finance ,agency shall manage any disposition of the multifamily business of an enterprise in a manner consistent with-- 7#a7 the establishment of a well-functioning multifamily covered security market2 7#b7 the provision of broad access to multifamily financing2 and 7#c7 facilitating competition in the multifamily covered security market by-- 7,a7 providing open access to performance information on the legacy multifamily business of an enterprise2 7,b7 providing for reasonable licensing of the multifamily proprietary systems of an enterprise2 and 7,c7 setting market share limitations1 fees1 or additional capital standards on multifamily business assets that were sold1 transferred1 or disposed4 #gjc4 ,approval and supervision of multifamily guarantors 7a7 ,standards for approval of multifamily guarantors 7#a7 ,in general ,the ,corporation shall develop1 adopt1 and publish standards for the approval by the ,corporation of multifamily guarantors to-- 7,a7 issue multifamily covered securities2 and 7,b7 guarantee the timely payment of principal and interest on multifamily covered securities collateralized by eligible multifamily mortgage loans 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 multifamily guarantor2 7,b7 a requirement that the multifamily guarantor maintain capital levels as defined by the ,corporation1 pursuant to subsection 7h72 7,c7 the capability of the management of the multifamily guarantor2 7,d7 the general character and fitness of the officers and directors of the multifamily guarantor1 including the compliance history of the multifamily guarantor's officers and directors with ,federal and ,state laws and the rules and regulations promulgated by self-regulatory organizations 7as defined in section #c7;a77#bf7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#bf771 as applicable2 7,e7 the risk presented by the multifamily guarantor to the ,mortgage ,insurance ,fund2 7,f7 the adequacy of insurance and fidelity coverage of the multifamily guarantor2 7,g7 the ability of the multifamily guarantor to-- 7i7 ensure that eligible multifamily mortgage loans that collateralize a multifamily covered security insured under this ,act are originated in compliance with the requirements of this ,act2 7ii7 oversee multifamily servicers and specialty servicers conducting servicing activities on eligible multifamily mortgage loans1 which may be governed under the terms of seller-servicer guides in effect at either of the enterprises on the date of enactment of this ,act2 and 7iii7 oversee counterparties in credit risk-sharing transactions2 7,h7 the capacity of the multifamily guarantor to take the first loss position1 pari passu position1 or transfer investment risk and credit risk to private market holders2 7,i7 that the multifamily guarantor has the capacity to guarantee eligible multifamily mortgage loans in a manner that furthers the purposes of the ,corporation as described in section #bja7;b77#e72 7,j7 a requirement that the multifamily guarantor submit audited financial statements to the ,corporation2 7,k7 that the multifamily guarantor does not originate eligible multifamily mortgage loans and is not an affiliate of a person that actively engages in the business of originating eligible multifamily mortgage loans2 and 7,l7 a requirement that the multifamily guarantor has the capacity to meet the requirement of section #gjd4 7#c7 ,consultation and coordination ,to promote consistency and minimize regulatory conflict1 the ,corporation shall consult and coordinate with appropriate ,federal and ,state regulators and officials when developing standards pursuant to this subsection4 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 a multifamily guarantor under this section4 7,b7 ,application review ,the ,corporation shall establish internal timelines for its processing of an application under this section1 including timelines for any action to approve or to deny an application under this section4 7,c7 ,prohibition on control by insured depository institutions or affiliates of insured depository institutions 7i7 ,in general ,it shall be unlawful for an insured depository institution or an affiliate of an insured depository institution to control an approved multifamily guarantor4 7ii7 ,rule of construction regarding control ,for purposes of this subparagraph1 any insured depository institution or affiliate of an insured depository institution has control over an approved multifamily guarantor if the company directly or indirectly or acting through #a or more other persons owns1 controls1 or has power to vote #aj percent or more of any class of voting shares of the approved multifamily guarantor4 7,d7 ,expedited application process ,the ,corporation may establish an expedited application process for an applicant applying to become an approved multifamily guarantor1 provided that any such applicant-- 7i7 proposes to use a credit risk-sharing mechanism approved under subsection 7c72 and 7ii7 otherwise meets the requirements of this section4 7#b7 ,approval ,the ,corporation may approve any application made pursuant to paragraph 7#a71 provided the multifamily guarantor meets the standards established under subsection 7a74 7#c7 ,denial ,the ,corporation shall have the authority to deny any application made pursuant to paragraph 7#a7 if an officer or director of the multifamily guarantor has1 at any time prior to the date of the approval of such application1 been-- 7,a7 subject to a statutory disqualification pursuant to section #c7;a77#ci7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ci772 or 7,b7 suspended1 removed1 or prohibited from participation pursuant to section #h7;g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;g771 prohibited from certain action pursuant to paragraphs 7#f7 or 7#g7 of section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e771 subject to an action resulting in a written agreement or other written statement under section #h7u77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7u77#a771 for which a violation may be enforced by an appropriate ,federal banking agency1 or subject to any final order issued with respect to any administrative enforcement proceeding initiated by such agency under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7#d7 ,notice and publication ,the ,corporation shall-- 7,a7 provide prompt notice to a multifamily guarantor of the approval or denial of any application of the multifamily guarantor to become an approved multifamily guarantor under this section2 7,b7 publish a notice in the ,federal ,register upon approval of any multifamily guarantor2 and 7,c7 maintain an updated list of approved multifamily guarantors on the website of the ,corporation4 7c7 ,credit risk-sharing mechanisms 7#a7 ,consideration and approval ,the ,corporation shall-- 7,a7 consider and approve credit risk-sharing mechanisms that may be employed by an approved multifamily guarantor to manage the credit risk related to guarantees provided for multifamily covered securities2 and 7,b7 approve any credit risk-sharing mechanism undertaken by an enterprise as of the date of enactment of this ,act1 including-- 7i7 the ,delegated ,underwriting and ,servicing ,lender ,program established by the ,federal ,national ,mortgage ,association2 7ii7 the ,k ,series ,structured ,pass-,through ,certificates originated and offered under the ,program ,plus ,lender ,program established by the ,federal ,home ,loan ,mortgage ,corporation2 7iii7 any other program1 activity1 or contractual agreement of an enterprise that supports the enterprise's provision of liquidity to the multifamily housing market2 and 7iv7 any credit risk-sharing mechanism based on the mechanisms described in clause 7i71 7ii71 or 7iii71 with modifications approved by the ,corporation4 7#b7 ,rule of ,construction ,nothing in paragraph 7#a7 shall be construed to-- 7,a7 prevent private market holders from taking a first loss position on multifamily covered securities guaranteed by an approved multifamily guarantor2 or 7,b7 limit an approved multifamily guarantor from engaging in other forms of risk-sharing using mechanisms that have not been considered or approved by the ,corporation4 7#c7 ,report ,each report required by section #cjb7;b77#e7 shall include a description of each credit risk-sharing mechanism approved by the ,corporation pursuant to this subsection4 7#d7 ,notice and publication ,the ,corporation shall-- 7,a7 provide prompt notice to any person seeking approval for a credit risk-sharing mechanism of the approval or denial of that credit risk-sharing mechanism under this subsection2 and 7,b7 make available updated information regarding approved credit risk-sharing mechanisms on the website of the ,corporation4 7#e7 ,applicability of the ,commodity ,exchange ,act and ,securities ,act of #aicc 7,a7 ,exemption from the ,commodity ,exchange ,act2 prior consultation required 7i7 ,exemption ,no counterparty that enters into a swap1 as that term is defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a71 for purposes of structuring any credit risk-sharing mechanism that is approved by the ,corporation pursuant to this section1 which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any multifamily covered security insured in accordance with section #cjc or section #cje1 shall be deemed1 by reason of such swap transaction1 to be a commodity pool1 as that term is defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a74 7ii7 ,prior consultation required ,before approving any credit risk-sharing mechanism that would be exempt from the ,commodity ,exchange ,act pursuant to subparagraph 7,a71 the ,corporation shall consult with the ,commodity ,futures ,trading ,commission4 7,b7 ,exemption from section #bg;,b of the ,securities ,act of #aicc2 prior consultation required 7i7 ,exemption ,any credit risk-sharing mechanism that is approved by the ,corporation pursuant to this section1 which credit risk-sharing mechanism is designed to be used or is used by a private market holder to assume losses and to reduce the specific risks arising from losses realized under such credit risk-sharing mechanism associated with any multifamily covered security insured in accordance with section #cjc or section #cje1 shall be exempt from section #bg;,b of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggz-#b;a74 7ii7 ,prior consultation required ,before approving any credit risk-sharing mechanism that would be exempt from section #bg;,b of the ,securities ,act of #aicc pursuant to subparagraph 7,a71 the ,corporation shall consult with the ,securities and ,exchange ,commission4 7d7 ,requirement to maintain approval status 7#a7 ,authority to issue order ,if the ,corporation determines that an approved multifamily guarantor approved under this section no longer meets the standards for such approval or violates a requirement under this ,act1 including any standard1 regulation1 or order promulgated in accordance with this ,act1 the ,corporation may-- 7,a7 suspend or revoke the approved status of the approved multifamily guarantor2 or 7,b7 take any other action with respect to such approved multifamily guarantor as may be authorized under this ,act4 7#b7 ,rule of construction ,the suspension or revocation of the approved status of an approved multifamily guarantor under this section shall have no effect on the status as a multifamily covered security of any multifamily covered security collateralized by eligible multifamily mortgage loans with which the approved multifamily guarantor contracted prior to the suspension or revocation4 7#c7 ,publication ,the ,corporation shall-- 7,a7 promptly publish a notice in the ,federal ,register upon suspension or revocation of the approval of any approved multifamily guarantor2 and 7,b7 maintain an updated list of such approved multifamily guarantors on the website of the ,corporation4 7#d7 ,definition ,in this subsection1 the term violate includes any action1 taken alone or with others1 for or toward causing1 bringing about1 participating in1 counseling1 or aiding or abetting1 a violation of the requirements under this ,act4 7e7 ,prudential standards for supervision ,the ,corporation shall prescribe prudential standards for approved multifamily guarantors in order to-- 7#a7 ensure-- 7,a7 the safety and soundness of approved multifamily guarantors2 and 7,b7 the maintenance of approval standards by approved multifamily guarantors2 and 7#b7 minimize the risk presented to the ,mortgage ,insurance ,fund4 7f7 ,reports and examinations ,for purposes of determining whether an approved multifamily guarantor is fulfilling the requirements under this ,act1 the ,corporation shall have the authority to require reports from and examine an approved multifamily guarantor1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsection 7a7 of section #i of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahai74 7g7 ,enforcement ,the ,corporation shall have the authority to enforce the provisions of this ,act with respect to an approved multifamily guarantor1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under the provisions of subsections 7b7 through 7n7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7h7 ,capital standards 7#a7 ,in general ,pursuant to the requirement to establish capital and related solvency standards under section #cji7;b71 the ,corporation shall establish standards for approved multifamily guarantors as follows3 7,a7 ,guarantor activities ,the capital standard for eligible multifamily mortgage loans that collateralize multifamily covered securities insured by the ,corporation shall require an approved multifamily guarantor to hold #aj percent capital4 7,b7 ,aggregation activities ,an approved multifamily guarantor shall hold capital in an amount comparable to that which is required to be held by insured depository institutions and their affiliates with respect to their applicable aggregating activities4 7,c7 ,solvency levels ,an approved multifamily guarantor shall maintain solvency levels adequate for the approved multifamily guarantor to withstand losses that might be incurred by the approved multifamily guarantor in a period of economic stress1 including national and regional multifamily housing price declines1 such as those observed during moderate to severe recessions in the ,united ,states4 7#b7 ,risk-sharing considerations 7,a7 ,in general ,for purposes of paragraph 7#a77;,a71 the ,corporation shall consider the extent1 amount1 and form of risk-sharing and risk mitigation through the use by approved multifamily guarantors of credit risk-sharing mechanisms approved pursuant to subsection 7c74 ,the ,corporation shall allow such risk-sharing and risk mitigation to fulfill required amounts of capital to be held under paragraph 7#a77;,a7 while maintaining an appropriate structure of capital as determined by the ,corporation4 7,b7 ,equivalent treatment ,for purposes of paragraph 7#b77;,a71 the ,corporation shall seek to ensure equivalent capital treatment between approved credit risk-sharing mechanisms approved under subsection 7c7 with similar performance histories4 7#c7 ,other consideration ,to reflect the differences between single-family and multifamily businesses1 the capital standards established under paragraph 7#a77;,a7 may differ from the capital standards established under section #caa for approved guarantors4 7#d7 ,stress tests ,the ,corporation shall conduct appropriate stress tests of each approved multifamily guarantor that has total assets of more than #aj1jjj1jjj1jjj1 provided that such stress tests shall be-- 7,a7 specifically tailored to the business model of the approved multifamily guarantor2 and 7,b7 utilized to-- 7i7 ensure the safety and soundness of the approved multifamily guarantor2 and 7ii7 minimize the risk the approved multifamily guarantor may present to the ,mortgage ,insurance ,fund4 7i7 ,resolution authority for failing multifamily guarantors 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,corporation shall-- 7,a7 have the authority to act1 in the same manner and to the same extent1 with respect to an approved multifamily guarantor as the ,federal ,deposit ,insurance ,corporation has with respect to an insured depository institution under subsections 7c7 through 7s7 of section #aa of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba71 section #ab of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbb71 and section #ac of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc71 while tailoring such actions to the specific business model of the approved multifamily guarantor1 as may be necessary to properly exercise such authority under this subsection2 7,b7 in carrying out any authority provided in subparagraph 7,a71 act1 in the same manner and to the same extent1 with respect to the ,mortgage ,insurance ,fund as the ,federal ,deposit ,insurance ,corporation may act with respect to the ,deposit ,insurance ,fund under the provisions of the ,federal ,deposit ,insurance ,act set forth in subparagraph 7,a72 7,c7 prescribe regulations governing the applicable rights1 duties1 and obligations of an approved multifamily guarantor placed into resolution under this subsection1 its creditors1 counterparties1 and other persons1 as the ,corporation deems necessary to properly exercise the authority provided in subparagraph 7,a72 7,d7 consistent with the authorities provided in subparagraph 7,a71 immediately place an insolvent approved multifamily guarantor into receivership2 and 7,e7 upon placing an approved multifamily guarantor into receivership1 treat multifamily covered securities insured by the ,corporation under section #cjc in the same manner as the ,federal ,deposit ,insurance ,corporation treats deposit liabilities under section #aa7;d77#aa77;,a77ii7 of the ,federal ,deposit ,insurance ,act and insured deposits under section #aa7;f7 of the ,federal ,deposit ,insurance ,act1 where the ,corporation shall have the same right of subrogation as the ,federal ,deposit ,insurance ,corporation has under section #aa7;g7 of the ,federal ,deposit ,insurance ,act4 7#b7 ,least-cost resolution required ,the ,corporation may not exercise any authority under paragraph 7#a7 with respect to any approved multifamily guarantor unless the total amount of the expenditures by the ,corporation and obligations incurred by the ,corporation in connection with the exercise of any such authority with respect to such approved multifamily guarantor is the least costly to the ,mortgage ,insurance ,fund1 consistent with the least cost approach specified in the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 of all possible methods for meeting the ,corporation's obligations under this ,act and expeditiously concluding its resolution activities1 subject to section #ac of the ,federal ,deposit ,insurance ,act where the ,corporation and the ,board of ,directors shall have the same authority as the ,federal ,deposit ,insurance ,corporation and the ,federal ,deposit ,insurance ,corporation's board of directors4 7#c7 ,taxpayer protection ,the ,corporation1 in carrying out any authority provided in this subsection1 shall prescribe regulations to ensure that any amounts owed to the ,united ,states1 unless the ,united ,states agrees or consents otherwise1 shall have priority following administrative expenses of the receiver when satisfying unsecured claims against an approved multifamily guarantor1 or the receiver therefor1 that are proven to the satisfaction of the receiver4 7j7 ,hearing ,upon notice of denial of an application for approval under subsection 7b7 or upon a notice of suspension or revocation of the approved status of an approved multifamily guarantor under subsection 7d71 the applicant or approved multifamily guarantor shall be afforded a hearing under subsection 7h7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h771 in the same manner and to the same extent as if the ,corporation were the appropriate ,federal banking agency1 provided that the approved multifamily guarantor submits a request to the ,corporation for a hearing not later than #aj days after the date on which the notice is published under subsection 7b77#c7 or 7d77#c74 7k7 ,prohibited activity ,an approved multifamily guarantor may not-- 7#a7 originate eligible multifamily mortgage loans2 or 7#b7 be an affiliate of a person that actively engages in the business of originating eligible multifamily mortgage loans4 7l7 ,guarantors required to pay claims ,subject to such standards as the ,corporation may provide1 an approved multifamily guarantor may not for any reason withhold payment of funds that would ensure holders of multifamily covered securities receive timely payment of principal and interest on multifamily covered securities4 ,the ,corporation shall by regulation develop a process for the mediation and resolution of disputed payment amounts4 #gjd4 ,multifamily housing requirement 7a7 ,in general ,each approved multifamily guarantor shall ensure1 during each calendar year1 that at least #fj percent of the rental housing units which are contained in the eligible multifamily mortgage loans that collateralize all multifamily covered securities guaranteed by each such approved multifamily guarantor during the previous #bd-month period were1 at the time of origination1 affordable to low-income families4 7b7 ,determination of affordability of rental housing units ,for purposes of subsection 7a71 the affordability of rental housing units contained in an eligible multifamily mortgage loan shall be determined at the time of loan commitment by using-- 7#a7 the most recent rent roll for an occupied property2 or 7#b7 in the case of rental housing units that are newly constructed or substantially rehabilitated1 a final pro-forma rent roll4 7c7 ,determination of compliance ,the ,corporation shall determine1 during each calendar year1 whether each approved multifamily guarantor has complied with the requirement under subsection 7a74 7d7 ,suspension or adjustment 7#a7 ,in general ,the ,corporation may suspend or adjust the requirement under subsection 7a7 for an approved multifamily guarantor or guarantors-- 7,a7 during a period of unusual and exigent market conditions in the multifamily housing market as determined pursuant to section #cje2 or 7,b7 either-- 7i7 pursuant to information available to the ,corporation demonstrating adverse market conditions in the multifamily housing market2 or 7ii7 pursuant to a written request to suspend or adjust the requirement under subsection 7a7 made by an approved multifamily guarantor1 which the ,corporation may grant in whole or in part4 7#b7 ,criteria for suspension or adjustment ,the ,corporation may suspend or adjust the requirement under subsection 7a7 pursuant to paragraph 7#a77;,b7 only if-- 7,a7 market and economic conditions require such an action2 or 7,b7 efforts to meet the requirement under subsection 7a7 would result in-- 7i7 the constraint of liquidity in certain market segments2 7ii7 over-investment in certain market segments2 or 7iii7 other consequences contrary to the intent of this section4 7#c7 ,limitation on authority ,the ,corporation shall narrowly tailor any suspension or adjustment made under paragraph 7#a77;,b7 to address the market conditions that prompted the suspension or adjustment4 7#d7 ,determination 7,a7 ,period for public comment ,the ,corporation shall1 promptly upon a decision to pursue a suspension or adjustment under paragraph 7#a77;,b77i7 or upon receipt of a request under paragraph 7#a77;,b77ii71 seek public comment on the suspension or adjustment for a period of #cj days4 7,b7 ,period for determination ,the ,corporation shall make a determination regarding any proposed suspension or adjustment within #cj days after the expiration of the public comment period provided under subparagraph 7,a74 7,c7 ,extensions ,the ,corporation may extend the period for determination provided under subparagraph 7,b7 for a single additional #ae-;day period1 but only if the ,corporation requests additional information from the approved multifamily guarantor4 7#e7 ,review of suspension or adjustment 7,a7 ,annual review ,the ,corporation shall review any suspension or adjustment made by the ,corporation under subparagraphs 7,a7 or 7,b7 of paragraph 7#a7 at least annually to determine whether the suspension or adjustment satisfies the criteria established under paragraph 7#b74 7,b7 ,publication and comment ,the ,corporation shall-- 7i7 not less than annually1 publish a list of all suspensions and adjustments in effect under this section2 and 7ii7 seek public comment as to the continued necessity of such suspensions or adjustments4 7e7 ,mixed income liquidity study and review 7#a7 ,study ,not later than #b years after the date of enactment of this ,act1 and periodically or as market conditions warrant thereafter1 the ,corporation shall conduct a study of liquidity in the market for financing the new construction or substantial rehabilitation of mixed-income properties containing multifamily units that-- 7,a7 otherwise qualify under the requirement under subsection 7a72 and 7,b7 are financed by tax-exempt bonds that are issued by a ,state or local housing finance agency4 7#b7 ,adjustment to requirement ,the ,corporation may adjust the requirement under subsection 7a71 subject to the procedures provided under paragraphs 7#b7 through 7#e7 of subsection 7d71 if the ,corporation finds based on a study conducted under paragraph 7#a7 that-- 7,a7 liquidity is constrained in the market for eligible multifamily mortgage loans for the mixed-income properties described in paragraph 7#a72 and 7,b7 it is necessary to foster liquidity in that market4 7f7 ,rule of construction ,nothing in this section shall be construed to authorize the ,corporation to require an approved multifamily guarantor to exceed the #fj percent requirement set forth under subsection 7a74 7g7 ,definitions2 applicability to enterprises ,in this section-- 7#a7 the term approved multifamily guarantor includes an enterprise or any multifamily subsidiary established pursuant to section #gja2 7#b7 the term multifamily covered security includes a multifamily mortgage-backed security guaranteed by an enterprise or any multifamily subsidiary established pursuant to section #gja2 and 7#c7 the term eligible multifamily mortgage loan includes a multifamily mortgage loan collateralizing a security guaranteed by an enterprise or any multifamily subsidiary established pursuant to section #gja4 #gje4 ,establishment of small multifamily property program 7a7 ,pilot program ,the ,corporation shall establish at least #a pilot program1 to be administered by the ,office of ,multifamily ,housing1 in consultation with the ,office of ,consumer and ,market ,access1 to test and assess methods or products designed to increase secondary mortgage market access for multifamily properties comprised of not more than #ej units or with mortgages not exceeding #c1jjj1jjj 7as adjusted for inflation74 7b7 ,activities ,in administering the pilot program required under subsection 7a71 the ,corporation shall-- 7#a7 review1 and may approve1 proposals from regulated entities or approved multifamily guarantors1 including proposals focused on lending by small mortgage lenders1 to participate in the pilot program by carrying out activities to decrease barriers to secondary mortgage market access for multifamily properties comprised of not more than #ej units or with mortgages not exceeding #c1jjj1jjj 7as adjusted for inflation7 through new risk-sharing1 partnerships1 or other mechanisms or incentives2 and 7#b7 establish requirements governing the activities of the pilot program1 including requirements with respect to-- 7,a7 any mid-course alterations of activities permitted under the pilot program1 information sharing1 reporting1 and evaluation of the results of a pilot program2 and 7,b7 the tracking of any allocations of amounts that may be distributed from the ,market ,access ,fund4 7c7 ,use of ,market ,access ,fund ,a regulated entity or approved multifamily guarantor that submits a proposal under subsection 7b7 may request1 as part of the proposal1 allocations from the ,market ,access ,fund as necessary to support its proposed activities4 7d7 ,amendments to pilot program ,the ,corporation may amend a pilot program established under subsection 7a7 as needed to accommodate the multifamily mortgage market4 7e7 ,publication ,the ,corporation shall make publicly available the results of a pilot program established under subsection 7a74 7f7 ,requirement ,the ,corporation shall consider the results of a pilot program established under subsection 7a7 for purposes of expanding and implementing new mechanisms to decrease barriers to secondary mortgage market access for multifamily properties comprised of not more than #ej units or with mortgages not exceeding #c1jjj1jjj 7as adjusted for inflation74 7g7 ,limitation on funding ,the ,corporation may not use funds from the ,mortgage ,insurance ,fund to fund any pilot program activities conducted by a regulated entity or approved multifamily guarantor under this section4 #gjf4 ,multifamily housing study ,the ,office of ,multifamily ,housing shall conduct a study on the expansion of the ,federal ,home ,loan ,banks' ,acquired ,member ,assets 7,,ama7 programs to eligible multifamily mortgage loans4 #gjg4 ,multifamily platform study 7a7 ,in general ,not later than #ah months after the system certification date1 the ,corporation shall conduct a study on the need1 feasibility1 costs1 and merits of creating a cooperatively-owned1 nonprofit multifamily issuance platform to securitize eligible multifamily mortgage loans4 7b7 ,content of study ,the study required under subsection 7a7 shall address-- 7#a7 competition between existing approved multifamily guarantors2 7#b7 the barriers to entry for new multifamily guarantors2 7#c7 the costs associated with developing a new platform2 7#d7 the funding of smaller-balance multifamily mortgage loans1 including mortgage loans originated by credit unions and community and mid-size banks and other small-volume lenders in rural and other underserved communities2 7#e7 standardized definitions and reporting and payment requirements2 7#f7 stability in the multifamily lending market in times of stress2 and 7#g7 such other information as the ,corporation determines appropriate to further the purpose of the study4 7c7 ,consideration ,in conducting the study required under subsection 7a71 the ,corporation shall consider whether any identified need to establish a multifamily securitization platform can and will be met by the ,platform established under section #cba1 or any subsidiary or affiliate thereof4 7d7 ,report to ,congress ,not later than #ah months after the system certification date1 the ,corporation shall submit the study required under subsection 7a7 to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives4 #gjh4 ,short-term residential housing 7a7 ,in general ,section #eac of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agca;b7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in clause 7#a71 by striking or at the end2 and 7,b7 by inserting before the period at the end the following3 1 or 7#c7 the project is a short-term residential property 7as such term is defined in subsection 7e7 of this section7 and is subject to a mortgage insured under section #bjg1 provided that the ,secretary has made a determination pursuant to the study and report required under section #gjh7;b7 of the ,housing ,finance ,reform and ,taxpayer ,protection ,act that the provision of such insurance is appropriate2 and 7#b7 in subsection 7e7-- 7,a7 in clause 7#a71 by striking and at the end2 and 7,b7 by inserting before the period at the end the following3 1 and 7#c7 the term short-term residential property means multifamily housing that 7,a7 has more than #ej dwelling units that each contain a kitchen1 including a full refrigerator and cooking surface1 and bathroom facilities1 7,b7 provides mail boxes for each unit1 7,c7 rents such units for a minimum stay of #g days1 and 7,d7 does not provide food or beverage services1 including in-room service1 daily maid services1 furnishing and laundering of linen without charge1 or bellhop services4 7b7 ,study 7#a7 ,in general ,not later than #f months after the date of enactment of this ,act1 the ,secretary of ,housing and ,urban ,development shall-- 7,a7 conduct and complete a study evaluating the risk of the provision of insurance under section #bjg of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agac7 for short-term residential properties2 and 7,b7 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 ,representatives1 which shall include-- 7i7 the findings of the study required under subparagraph 7,a72 and 7ii7 a determination as to whether any additional risk presented to the ,general ,insurance ,fund resulting from the provision of insurance under section #bjg of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agac7 for short-term residential properties is appropriate4 7#b7 ,contents of study ,in conducting the study required under paragraph 7#a77;,a71 the ,secretary of ,housing and ,urban ,development shall-- 7,a7 evaluate whether the provision of insurance under section #bjg of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agac7 for short-term residential properties presents additional risk to the ,general ,insurance ,fund2 and 7,b7 consider any additional operational and logistical costs associated with providing such insurance4 7#c7 ,definitions ,in this subsection-- 7,a7 the term ,general ,insurance ,fund means the fund established under section #eai of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agce;c72 and 7,b7 the term short-term residential properties has the meaning given the term under section #eac7;e77#c7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agca;b7e77#c774 ,,viii ,general provisions #hja4 ,rule of construction ,nothing in this ,act shall be construed to alter1 supersede1 or interfere with the final ruling of a court of competent jurisdiction with respect to any provision of the ,senior ,preferred ,stock ,purchase ,agreement or amendments thereof of an enterprise4 #hjb4 ,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 #hjc4 ,transfer notification under ,,tila 7a7 ,in general ,section #aca7;g7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afda7;g77 is amended by striking paragraph 7#b7 and inserting the following3 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 the term mortgage loan means any consumer credit transaction that is secured by the principal dwelling of a consumer2 7,b7 the term securitized residential mortgage means any residential mortgage loan that serves as collateral for a fixed-income or other security that allows the holder of such security to receive payments dependent on the cash flow from such residential mortgage loan2 and 7,c7 the term servicer-- 7i7 has the meaning provided in section #abi;,a1 except that such term includes a person who receives any payments from a mortgagor1 including any amounts for escrow accounts1 and makes payments to the owner of the loan or other third parties1 including payments made after default1 pursuant to the terms of the relevant contracts2 and 7ii7 excludes ,state and local housing agencies4 4 7b7 ,disclosure of fees ,section #e7;c77#c7 of the ,real ,estate ,settlement ,procedures ,act 7#ab ,u4,s4,c4 #bfje7;c77#c77 is amended-- 7#a7 by striking ,any notice required and inserting the following3 7,a7 ,in general ,any notice required 2 and 7#b7 by adding at the end the following3 7,b7 ,disclosure of fees requirement ,the transferee servicer shall provide to the borrower1 not more than #ae days after the effective date of transfer of the servicing of the mortgage loan1 a statement regarding the loan which shows the following3 7i7 ,the application of all payments and charges1 including the date received1 as allocated to principal1 interest1 escrow1 and other charges4 7ii7 ,the status of the loan as of the date of the transfer including whether the loan is in default and whether any loss mitigation application submitted by the borrower is pending4 7iii7 ,an itemization and explanation for all arrearages claimed to be due as of the date of the transfer4 4 7c7 ,safe harbor for mistaken payments2 fees ,section #aca of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afda7 is amended-- 7#a7 by redesignating subsection 7g7 as subsection 7i72 and 7#b7 by inserting after subsection 7f7 the following3 7g7 ,treatment of mistaken loan payments after transfer ,during the #fj-;day period beginning on the effective date of transfer of the servicing of any securitized residential mortgage loan1 a late fee may not be imposed on the consumer with respect to any payment on such loan1 and no such payment may be treated as late for any other purpose1 if the payment is received by the transferor servicer 7rather than the transferee servicer who should properly receive payment7 on or before the applicable due date1 including any grace period allowed under the loan documents4 7h7 ,fee waive upon transfer 7#a7 ,in general ,the creditor1 new owner1 or assignee of the mortgage loan1 by itself or through its servicer1 may not impose or collect-- 7,a7 any fee that is not listed as having been incurred in the notice to the consumer of the transfer of servicing of a securitized residential mortgage loan2 or 7,b7 any fee incurred prior to the effective date of servicing transfer that is not disclosed on a periodic statement provided to the consumer prior to the effective date of servicing transfer of a securitized residential mortgage loan4 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 the term securitized residential mortgage means any residential mortgage loan that serves as collateral for a fixed-income or other security that allows the holder of such security to receive payments dependent on the cash flow from such residential mortgage loan2 and 7,b7 the term servicer-- 7i7 has the meaning provided in section #abi;,a1 except that such term includes a person who receives any payments from a mortgagor1 including any amounts for escrow accounts1 and makes payments to the owner of the loan or other third parties1 including payments made after default1 pursuant to the terms of the relevant contracts2 and 7ii7 excludes ,state and local housing agencies4 4 #hjd4 ,investment authority to support rural infrastructure ,section #aa of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adca7 is amended by adding at the end the following3 7m7 ,mission investments for rural infrastructure ,in furtherance of its mission under section #e1 each ,federal ,home ,loan ,bank is authorized to purchase investment grade securities from nonmember cooperative lenders that have received financing from the ,federal ,financing ,bank and that possess demonstrated experience in making loans to rural cooperatives4 ,such securities shall be secured investments collateralized by loans of the cooperative lender4 ,the purchase of such securities shall be at the sole discretion of the ,bank1 consistent with such regulations1 restrictions1 and limitations as may be prescribed by the ,board4 4 #hje4 ,consolidation of similar housing assistance programs 7a7 ,report 7#a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,corporation1 the ,secretary of ,housing and ,urban ,development1 the ,secretary of the ,treasury1 the ,secretary of ,agriculture1 the ,secretary of ,veterans ,affairs1 the ,secretary of ,labor1 and the ,secretary of the ,interior shall jointly submit to ,congress a report1 which shall-- 7,a7 identify and evaluate1 based on need and appropriateness1 specific opportunities to consolidate similar housing assistance programs1 which may include the programs identified in the ,august #bjab ,government ,accountability ,office report to ,congress entitled ,opportunities ,exist to ,increase ,collaboration and ,consider ,consolidation 7,,gao-#ab-eed72 7,b7 provide recommendations to ,congress for legislative action to appropriately streamline1 consolidate1 or eliminate similar housing assistance programs identified and evaluated under subparagraph 7,a72 and 7,c7 identify opportunities for cross-agency collaboration of housing assistance efforts4 7#b7 ,accessibility ,the report submitted under paragraph 7#a7 shall be made available on a publically accessible ,internet website4 7b7 ,use of administrative authority 7#a7 ,in general 7,a7 ,the ,director of the ,office of ,management and ,budget shall coordinate with the ,secretary of ,housing and ,urban ,development1 the ,secretary of the ,treasury1 the ,secretary of ,agriculture1 the ,secretary of ,veterans ,affairs1 the ,secretary of ,labor1 and the ,secretary of the ,interior to consider and evaluate opportunities to eliminate1 consolidate1 or streamline housing assistance programs4 7,b7 ,the ,director of the ,office of ,management and ,budget1 in coordination with the ,secretary of ,housing and ,urban ,development1 the ,secretary of the ,treasury1 the ,secretary of ,agriculture1 the ,secretary of ,veterans ,affairs1 the ,secretary of ,labor1 and the ,secretary of the ,interior1 shall eliminate1 consolidate1 or streamline any programs identified under subparagraph 7,a7 which they find appropriate4 7#b7 ,cost savings ,any administrative cost savings resulting from the consolidation1 elimination1 or streamlining of housing assistance programs under paragraph 7#a7 shall be transferred as follows3 7,a7 #ej percent to 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 7,b7 #ej percent to the ,general ,fund of the ,treasury to be used for deficit reduction4 7#c7 ,report ,the ,director of the ,office of ,management and ,budget shall submit to ,congress a report on an annual basis of any actions taken to streamline similar housing assistance programs1 and the cost savings resulting from such actions4 7c7 ,rule of construction ,nothing in this section shall be construed to grant the ,director of the ,office of ,management and ,budget1 the ,secretary of ,housing and ,urban ,development1 the ,secretary of the ,treasury1 the ,secretary of ,agriculture1 the ,secretary of ,veterans ,affairs1 the ,secretary of ,labor1 or the ,secretary of the ,interior any additional authority to eliminate1 consolidate1 or streamline housing assistance programs that they did not have prior to the date of enactment of this ,act4 #hjf4 ,bureau of ,consumer ,financial ,protection review2 ,,gao report 7a7 ,bureau of ,consumer ,financial ,protection review 7#a7 ,in general ,except as provided in paragraph 7#b71 not later than #c months after the date of enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall1 after reviewing relevant data and consulting with stakeholders1 including representatives of the manufactured housing industry and representatives of consumers and homeowners1 consider and review the application of subsections 7bb7 and 7cc7 of section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7 to manufactured housing loans1 including-- 7,a7 the annual percentage rate coverage test for high-cost mortgages2 7,b7 the total points and fees coverage test for high-cost mortgages2 and 7,c7 the definition of the term mortgage originator4 7#b7 ,exception ,the ,bureau of ,consumer ,financial ,protection shall not be required to conduct the review under paragraph 7#a7 if the ,bureau does not receive relevant data relating to the review that was not previously submitted to the ,bureau on or before ,january #ca1 #bjac4 7#c7 ,rule of construction ,nothing in paragraph 7#a7 shall be construed to require the ,bureau of ,consumer ,financial ,protection to engage in rulemaking1 including rulemaking to modify any rule relating to subsection 7bb7 or 7cc7 of section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb74 7b7 ,,gao report ,not later than #aj months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and issue a report to ,congress on the manufactured housing loan market1 which shall include an analysis of-- 7#a7 the loan products available in the manufactured housing loan market and the performance of those products1 which shall include a review of the underwriting standards and portfolios of creditors that originate manufactured housing loans1 such as depository institutions and finance companies2 7#b7 the characteristics of borrowers that participate in the manufactured housing loan market1 including-- 7,a7 the creditworthiness of the borrower2 7,b7 the usage pattern of the borrower2 and 7,c7 the process for evaluating and comparing loan products prior to purchase2 and 7#c7 the potential impact on access to mortgage credit for manufactured housing loans if subsections 7bb7 and 7cc7 of section #ajc of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7 were applied to manufactured housing loans1 including-- 7,a7 the annual percentage rate coverage test for high-cost mortgages2 7,b7 the total points and fees coverage test for high-cost mortgages2 7,c7 the definition of mortgage originator2 7,d7 borrower delinquency and default in the manufactured housing loan market2 and 7,e7 competition in the manufactured housing loan market4 #hjg4 ,determination of budgetary effects ,the budgetary effects of this ,act1 for the purpose of complying with the ,statutory ,pay-,as-,you-,go ,act of #bjaj1 shall be determined by reference to the latest statement titled ,budgetary ,effects of ,,paygo ,legislation for this ,act1 submitted for printing in the ,congressional ,record by the ,chairman of the ,senate ,budget ,committee1 provided that such statement has been submitted prior to the vote on passage4 ,september #ah1 #bjad,reported with an amendment