,i #aadth ,,congress #b;d ,session ,h4 ,r4 #diac ,,in ,,the ,,house ,,of ,,representatives ,april #ab1 #bjaf ,mr4 ,mulvaney introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to ensure the sufficient capitalization of ,fannie ,mae and ,freddie ,mac and prevent any further bailout of such enterprises by the ,federal ,government1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,housing ,finance ,restructuring ,act of #bjaf4 #b4 ,repayment of liquidation preference 7a7 ,repayment and redemption ,not later than the expiration of the #fj-;day period beginning on the date of the enactment of this ,act1 the ,secretary of the ,treasury shall modify the ,senior ,preferred ,stock ,purchase ,agreement for each enterprise to provide as follows3 7#a7 ,deemed repayment in full ,effective on the date of the date of the enactment of this ,act1 the liquidation preference on the ,variable ,liquidation ,preference ,senior ,preferred ,stocks of each enterprise is reduced to zero4 7#b7 ,redemption of variable liquidation preference senior preferred stock ,pursuant to paragraph 7#a71 the ,variable ,liquidation ,preference ,senior ,preferred ,stock of each enterprise shall be redeemed upon the date of the modification of the ,senior ,preferred ,stock ,purchase ,agreement required under this subsection and1 upon and after such redemption-- 7,a7 shares of such ,variable ,liquidation ,preference ,senior ,preferred ,stock of each enterprise shall no longer be deemed to be outstanding and all rights of the holders thereof1 as such holders1 shall cease2 7,b7 shares of redeemed ,variable ,liquidation ,preference ,senior ,preferred ,stock of each enterprise shall no longer have the status of authorized1 issued1 or outstanding shares2 7,c7 the ,senior ,preferred ,stock ,purchase ,agreement for each enterprise shall be terminated1 except that sections #b4a and #b4b of such ,agreement1 as modified by the ,second ,amendment to the ,senior ,preferred ,stock ,purchase ,agreement for the enterprise 7dated ,december #bd1 #bjji71 shall remain in force and effect2 and 7,d7 the ,department of the ,treasury shall retain any dividend payments made by an enterprise to the ,department of the ,treasury before the date of the enactment of this ,act4 7b7 ,no resumption of periodic commitment fee ,the ,department of the ,treasury shall not require the enterprises to pay a periodic commitment fee1 as described in section #c4b of the ,senior ,preferred ,stock ,purchase ,agreements4 7c7 ,exercise of warrants for common stock ,notwithstanding subsection 7a77#b77;,c7 of this section1 upon the enactment of this ,act1 the ,department of the ,treasury shall exercise the warrants for the purchase of common stock of the enterprises provided to the ,department under the ,senior ,preferred ,stock ,purchase ,agreements4 #c4 ,rebuilding of enterprise retained capital 7a7 ,applicability ,notwithstanding any other provision of law or any provision of the ,senior ,preferred ,stock ,purchase ,agreement for an enterprise1 the provisions of this section shall apply to each enterprise1 including during the term of any conservatorship of an enterprise pursuant to section #acfg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag74 7b7 ,use of net income for capital reserves ,at any time that an enterprise is not fully capitalized 7as such term is defined in subsection 7c77#c77-- 7#a7 section #accg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#db ,u4,s4,c4 #defg7 shall not apply to the enterprise2 and 7#b7 the ,director shall require that1 in each fiscal year1 the net income of each enterprise1 as determined by the ,director1 for such fiscal year shall be retained and maintained by the enterprise as retained capital reserves4 7c7 ,full capitalization 7#a7 ,allocation to ,housing ,trust ,fund and ,capital ,magnet ,fund ,at any time that an enterprise is fully capitalized1 as determined by the ,director1 subsection 7b7 shall not apply to the enterprise and section #accg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib shall apply to the enterprise4 7#b7 ,dividends ,an enterprise may not1 unless the enterprise is fully capitalized1 declare or pay any dividend 7whether common or preferred7 with respect to any equity interests of the enterprise4 7#c7 ,definition ,for purposes of this subsection1 the term fully capitalized means1 with respect to an enterprise1 that the enterprise maintains an amount of total capital1 as such term is defined in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb71 that is equal to or exceeds #aj percent of the risk-weighted assets of the enterprise4 7d7 ,capital restoration plan 7#a7 ,requirement ,not later than the expiration of the #de-;day period beginning on the date of the enactment of this ,act1 the ,director shall prepare and submit to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate a capital restoration plan for each enterprise that complies with section #acfi;,c7a7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfbb7;a774 7#b7 ,annual updates ,after submission of a capital restoration plan for an enterprise pursuant to paragraph 7#a71 during any period that an enterprise remains not fully capitalized 7as such term is defined in subsection 7c77#c771 the ,director shall update the plan for such enterprise on an annual basis and submit such updated plan to the ,committees referred to in paragraph 7#a71 together with a report describing any progress made toward restoring the capital of the enterprise during the preceding #a-year period4 7#c7 ,public availability ,the ,director shall make publicly available each capital restoration plan prepared pursuant to paragraph 7#a7 and each updated plan prepared pursuant to paragraph 7#b74 7e7 ,termination of conservatorships ,the ,director shall terminate the conservatorship of an enterprise under section #acfg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7 at such time that the enterprise attains1 as determined by the ,director1 an amount of capital that is equal to or exceeds #e percent of the risk-weighted assets of the enterprise4 7f7 ,regulations ,not later than the expiration of the #ahj-;day period beginning on the date of the enactment of this ,act1 the ,director shall issue regulations necessary to carry out this section and the amendments made by this section4 #d4 ,private right of action 7a7 ,in general ,any individual or entity adversely affected or aggrieved by action or inaction on the part of the ,director or the ,secretary of the ,treasury in violation of this ,act or title ,,xiii of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #deja et seq47 may commence a civil action for prospective injunctive relief against the ,director or the ,secretary1 as appropriate4 7b7 ,equitable relief ,in any action under this section1 the court may award appropriate equitable relief1 including temporary1 preliminary1 or permanent injunctive relief4 7c7 ,costs ,in any action under this section1 the court shall award the costs of litigation1 including reasonable attorney and expert witness fees1 to any prevailing or substantially prevailing plaintiff4 7d7 ,jurisdiction ,the district courts of the ,united ,states shall have jurisdiction over proceedings commenced pursuant to this section and shall exercise the same without regard to whether the party aggrieved shall have exhausted any administrative or other remedies that may be provided for by law4 #e4 ,definitions ,for purposes of this ,act1 the following definitions shall apply3 7#a7 ,director ,the term ,director means the ,director of the ,federal ,housing ,finance ,agency1 in the capacity of such ,director and in the capacity as conservator of an enterprise pursuant to section #acfg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag71 as the case may be4 7#b7 ,enterprise ,the term enterprise has the meaning given such term in section #acjc of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dejb74 7#c7 ,net income ,the term net income means1 with respect to an enterprise1 income after deduction of all associated expenses1 as calculated in accordance with generally accepted accounting principles4 7#d7 ,risk-weighted ,the term risk-weighted means1 with respect to the assets of an enterprise1 that the amount of any such assets that are single family housing mortgages meeting the requirements of section #fah7;a77#a77;,b7 of the ,resolution ,trust ,corporation1 ,refinancing1 ,restructuring1 and ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ahcan note7 are calculated using a risk-weighting of #ej percent1 in the same manner required under subsection 7a77#a77;,a7 of such section #fah with respect to single family housing loans4 7#e7 ,senior preferred stock purchase agreement ,the term ,senior ,preferred ,stock ,purchase ,agreement means1 with respect to an enterprise1 the ,amended and ,restated ,senior ,preferred ,stock ,purchase ,agreements1 dated ,september #bf1 #bjjh1 amended ,may #f1 #bjji1 further amended ,december #bd1 #bjji1 and further amended ,august #ag1 #bjab1 between the ,department of the ,treasury and such enterprise4