,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #idfj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #be1 #bjbf,mr4  
,fitzg]ald introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,f9ancial   
,s]vices  ,a ,,bill  ,to am5d ! ,f$]al  
,home ,loan ,mortgage ,corporation ,act 
& ! ,f$]al ,national ,mortgage          
,association ,*>t] ,act to specify      
requirem5ts ) respect to ! own]%ip (    
c]ta9 mortgage assets = ! ,f$]al ,home  
,loan ,mortgage ,corporation & ! ,f$]al 
,national ,mortgage ,association1 & =   
o!r purposes4  #a4 ,%ort title  ,?is    
,act may be cit$ z ! ,su/a9able         
,home[n]%ip ,act4  #b4 ,requirem5ts (   
own]%ip ( c]ta9 mortgage assets  7a7    
,fr$die ,mac  7#a7 ,mortgage op]ations  
,section #cje ( ! ,f$]al ,home ,loan    
,mortgage ,corporation ,act 7#ab        
,u4,s4,c4 #aded7 is am5d$-- 7,a7 9      
subsection 7a77#b7--  7i7 by /rik+ ,no  
conv5tional & ins]t+ ! foll[+3 ,limits  
on pur*ases ( high loan-to-value        
mortgages--  7,a7 ,9 g5]al ,no          

conv5tional  2  7ii7 9 subp>agraph 7,a71
 z am5d$ by clause 7i7--  7,i7 by /rik+ 
value ( & ins]t+ less] ( apprais$ value 
or pur*ase price (2  7,,ii7 by /rik+ n  
less ?an #aj p] c5tum 9 ! mortgage &    
ins]t+ n less ?an ! same p]c5tage ( !   
fir/-loss portion ( ! unpaid pr9cipal   
balance ( ! mortgage t is requir$ to be 
insur$ or gu>ante$ z describ$ 9         
subsection 7e77#a72  7,,iii7 by /rik+ = 
su* p]iod &2  7,,iv7 by ins]t+ n lat]   
?an #abj days aft] ! default ( su*      
mortgage aft] is 9 default2 &  7,v7 by  
/rik+ z det]m9$ by ! ,corporation &     
ins]t+ 1 subject to ! cov]age & !       
qualifi$ insur] requirem5ts describ$ 9  
subsection 7e72 &  7iii7 by add+ at !   
end ! foll[+3  7,b7 ,exception =        
ref9anc+ ,not)/&+ ! fir/ s5t5ce (       
subp>agraph 7,a71 ! ,corporation may    
pur*ase a conv5tional mortgage ) an     
out/&+ pr9cipal balance exce$+ #ig p]c5t
 ( ! value ( ! prop]ty secur+ ! mortgage
 if ! ,corporation or ! ,f$]al ,national
 ,mortgage ,association1 dur+ ! #cj day 

p]iod be=e ! orig9ation ( su* mortgage1 
replac$ a mortgage ) ! same borr[]      
secur$ by ! same prop]ty & ! new        
conv5tional mortgage-- 7i7 r$uces paym5t
 am\nts = ! borr[]2  7ii7 %ort5s !      
amortization t]m ( ! mortgage2 or  7iii7
 replaces v>iable rate mortgage ) fix$  
rate mortgage = a m9imum ( a #fj mon?   
t]m4  2 &  7,b7 by add+ at ! end !      
foll[+3  7e7 ,insurance or gu>antee on  
unpaid pr9cipal balance ( a mortgage    
7#a7 ,requirem5ts  7,a7 ,9 g5]al ,)     
respect to ! insurance or gu>antee on ! 
portion ( ! unpaid pr9cipal balance at !
 "t ( pur*ase ( a mortgage :i* is 9     
excess ( #hj p]c5t ( ! value ( ! prop]ty
 secur+ ! mortgage t is requir$ "u      
subsection 7a77#b77;,a71 ! foll[+       
requirem5ts apply3  7i7 ,= a mortgage ) 
an unpaid pr9cipal balance t is equal to
 an am\nt t is above #hj p]c5t & n m ?an
 #he p]c5t ( ! value ( ! prop]ty-- 7,i7 
an am\nt t is n less ?an #ab p]c5t ( !  
portion ( ! unpaid pr9cipal balance ( ! 
mortgage %all be gu>ante$ or insur$ by a

 qualifi$ insur]2 or  7,,ii7 if !       
mortgage is a fix$-rate mortgage ) a    
fully amortiz+ t]m ( less ?an or equal  
to #bj ye>s1 an am\nt t is n less ?an #f
 p]c5t ( ! portion ( ! unpaid pr9cipal  
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7ii7 ,= a
 mortgage ) an unpaid pr9cipal balance t
 is equal to an am\nt t is above #he    
p]c5t & n m ?an #ij p]c5t ( ! value ( ! 
prop]ty--  7,i7 an am\nt t is n less ?an
 #be p]c5t ( ! portion ( ! unpaid       
pr9cipal balance ( ! mortgage %all be   
gu>ante$ or insur$ by a qualifi$ insur]2
 or  7,,ii7 if ! mortgage is a fix$-rate
 mortgage ) a fully amortiz+ t]m ( less 
?an or equal to #bj ye>s1 an am\nt t is 
n less ?an #ab p]c5t ! portion ( !      
unpaid pr9cipal balance ( ! mortgage    
%all be gu>ante$ or insur$ by a qualifi$
 insur]4  7iii7 ,= a mortgage ) an      
unpaid pr9cipal balance t is equal to an
 am\nt t is above #ij p]c5t & n m ?an   
#ie p]c5t ( ! value ( ! prop]ty-- 7,i7  
an am\nt t is n less ?an #cj p]c5t !    

portion ( ! unpaid pr9cipal balance ( ! 
mortgage %all be gu>ante$ or insur$ by a
 qualifi$ insur]2 or  7,,ii7 if !       
mortgage is a fix$-rate mortgage ) a    
fully amortiz+ t]m ( less ?an or equal  
to #bj ye>s1 an am\nt t is n less ?an   
#be p]c5t ! portion ( ! unpaid pr9cipal 
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7iv7 ,= a
 mortgage ) an unpaid pr9cipal balance t
 is equal to an am\nt t is above #ie    
p]c5t & n m ?an #ig p]c5t ( ! value ( ! 
prop]ty1 an am\nt t is n less ?an #ce   
p]c5t ( ! portion ( ! unpaid pr9cipal   
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7,b7     
,exceptions  7i7 ,/ate ag5cies & c]ta9  
mortgage programs ,) respect to a sell] 
t is a ,/ate or political subdivision   
!re(1 = mortgages pur*as$ on behalf ( a 
,/ate or political subdivision !re(1 & =
 mortgages acquir$ "u section #acce ( ! 
,f$]al ,h\s+ ,ent]prises ,f9ancial      
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #defe71 ! foll[+ cov]age      

requirem5ts apply = unpaid pr9cipal     
balances at ! "t ( pur*ase3 7,i7 ,= a   
mortgage ) an unpaid pr9cipal balance t 
is equal to an am\nt t is above #hj     
p]c5t & n m ?an #he p]c5t ( ! value ( ! 
prop]ty1 an am\nt t is n less ?an #f    
p]c5t ! portion ( ! unpaid pr9cipal     
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7,,ii7 ,=
 a mortgage ) an unpaid pr9cipal balance
 t is equal to an am\nt t is above #he  
p]c5t & n m ?an #ij p]c5t ( ! value ( ! 
prop]ty1 an am\nt t is n less ?an #ab   
p]c5t ! portion ( ! unpaid pr9cipal     
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7,,iii7  
,= a mortgage ) an unpaid pr9cipal      
balance t is equal to an am\nt t is     
above #ij p]c5t & n m ?an #ie p]c5t ( ! 
value ( ! prop]ty1 an am\nt t is n less 
?an #af p]c5t ( ! portion ( ! unpaid    
pr9cipal balance ( ! mortgage %all be   
gu>ante$ or insur$ by a qualifi$ insur]4
  7,,iv7 ,= a mortgage ) an unpaid      
pr9cipal balance t is equal to an am\nt 

t is above #ie p]c5t & n m ?an #ig p]c5t
 ( ! value ( ! prop]ty1 an am\nt t is n 
less ?an #ah p]c5t ! portion ( ! unpaid 
pr9cipal balance ( ! mortgage %all be   
gu>ante$ or insur$ by a qualifi$ insur]4
  7ii7 ,l[ income mortgagor  7,i7 ,9    
g5]al ,= a mortgage ) an unpaid pr9cipal
 balance at ! "t ( pur*ase t is equal to
 an am\nt t is above #ij p]c5t & n m ?an
 #ig p]c5t ( ! value ( ! prop]ty1 & =   
:i* ! mortgagor ( ! mortgage is a       
l[-income mortgagor1 ! ,director ( !    
,f$]al ,h\s+ ,f9ance ,ag5cy may p]mit t 
an am\nt t is n less ?an #be p]c5t ( !  
portion ( ! unpaid pr9cipal balance ( ! 
mortgage %all be gu>ante$ or insur$ by a
 qualifi$ insur]4  7,,ii7 ,l[-income    
mortgagor def9$  7aa7 ,9 g5]al ,! t]m   
l[-income mortgagor means a mortgagor ) 
a h\sehold income ( n m ?an #hj p]c5t ( 
! area m$ian income4  7bb7 ,area m$ian  
income qualification ,! ,director ( !   
,f$]al ,h\s+ ,f9ance ,ag5cy may adju/ ! 
area m$ian income qualification describ$
 9 item 7aa74  7#b7 ,qualifi$ insur]    

7,a7 ,9 g5]al ,to be a qualifi$ insur]  
"u ?is subsection1 an insur] %all-- 7i7 
be subject to any ,/ate insurance law or
 regulations t are applicable to        
insurance companies 9 ! respective ,/ate
 9 :i* ! insur] op]ates2  7ii7 be       
subject to any eligibility /&>ds z      
describ$ 9 subp>agraph 7,b72 &  7iii7 be
 a private ent]prise4  7,b7 ,eligibility
 /&>ds f ,corporation  7i7 ,9 g5]al ,!  
,corporation may set eligibility /&>ds1 
z describ$ 9 clause 7ii71 = qualifi$    
insur]s4  7ii7 ,imposition ( /&>ds ,any 
eligibility /&>ds impos$ by !           
,corporation on qualifi$ insur]s %all be
 approv$ by ! ,director ( ! ,f$]al ,h\s+
 ,f9ance ,ag5cy & subject to a #cj day  
notice & comm5t p]iod = ! public1       
includ+ insur]s to provide input on !   
propos$ eligibility requirem5ts or      
*anges !reto4 ,! ,director may only     
approve su* propos$ eligibility         
requirem5ts f ! public comm5t p]iod4    
7f7 ,hold+ ( assets  7#a7 ,9 g5]al ,!   
value ( ! cov]$ assets held by !        

,corporation at any "t may n exce$ !    
great] (-- 7,a7 #h p]c5t ( !            
,corporation's total assets2 or  7,b7 an
 am\nt t ! ,secret>y ( ! ,treasury & !  
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy det]m9e is necess>y on a qu>t]ly 
basis to-- 7i7 engage 9 ! bus9ess (     
securitiz+ mortgage-back$ securities    
gu>ante$ ! ,corporation2 &  7ii7 comply 
) ! liquidity requirem5ts prescrib$ by !
 ,director4  7#b7 ,cov]$ assets def9$ ,9
 ?is subsection1 ! t]m cov]$ assets--   
7,a7 means mortgages1 mortgage loans1   
mortgage-relat$ securities1 p>ticipation
 c]tificates1 mortgage-back$ comm]cial  
pap]1 obligations ( real e/ate mortgage 
inve/m5t conduits1 & any sub/antially   
simil> assets2 &  7,b7 does n include   
loans = ! con/ruction ( resid5tial      
dwell+ units4  7g7  ,requirem5ts apply+ 
to ! pur*ase ( s+le-,family resid5tial  
mortgages  7#a7  ,9 g5]al  ,!           
,corporation may n v>y ! pric+ or any   
o!r contractual t]m ( ! acquisition by !
 ,corporation ( any s+le-family         

resid5tial mortgage 7includ+ by grant+  
any v>iance7 bas$ on ! size1 *>t] type1 
or volume ( bus9ess ( ! sell] ( su*     
mortgage4  7#b7  ,equival5t (f]s  ,!    
,corporation %all (f] to pur*ase at all 
times1 = equival5t ca% consid]ation     
7subject to an appropriate adju/m5t = ! 
value ( any s]vic+ rights reta9$ by an  
approv$ sell]-s]vic] & = ! co/ ( be>+ or
 o!rwise manag+ any increm5tal cr$it1   
m>ket1 op]ational1 liquidity1 or o!r    
risk associat$ ) ! ca% w9d[71 & on      
sub/antially simil> t]ms1 includ+ pric+1
 any s+le-family resid5tial mortgage t--
  7,a7 is ( a class ( s+le-family       
resid5tial mortgages t ! ,corporation   
(f]s to acquire = mortgage-back$        
securities gu>ante$ by ! ,corporation or
 o!r nonca% consid]ation2  7,b7 is (f]$ 
= sale to ! ,corporation by a sell] t   
has be5 approv$ to d bus9ess ) !        
,corporation2 &  7,c7 has be5 orig9at$  
&1 if sold1 sold 9 compliance ) any     
und]writ+ or o!r simil> re/rictions     
prescrib$ by ! ,corporation or !        

,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy z a cons]vator2  7#c7            
,simultane\s mortgage le9s  ,!          
,corporation may n pur*ase a s+le-family
 resid5tial mortgage t 0 orig9at$ 9     
comb9ation ) a subord9ate li5 secur$    
aga9/ ! same prop]ty if at ! "t (       
orig9ation1 su* mortgage or su*         
subord9ate li5 provid$ access to a home 
equity l9e ( cr$it t1 if us$ by !       
mortgagor c\ld1 9 comb9ation ) ! orig9al
 pr9cipal obligation ( su* mortgage & ! 
orig9al pr9cipal obligation ( su*       
subord9ate li51 exce$ #hj p]c5t ( !     
value ( su* prop]ty4  4  7#b7           
,obligations & securities ,section      
#cjf7l77#b77;,c77i7 ( ! ,f$]al ,home    
,loan ,mortgage ,corporation ,act 7#ab  
,u4,s4,c4 #adee7l77#b77;,c77i77 is am5d$
 to read z foll[s3  7i7 d$icat$ =--     
7,i7 ! purpose ( deficit r$uction2 or   
7,,ii7 ! purpose ( support+ h\s+ supply 
initiatives1 includ+ af=dable &         
middle-income h\s+ developm5ts1 z def9$ 
by ! ,secret>y ( ! ,treasury2 &  4  7#c7

 ,effective dates ,! am5dm5ts made by-- 
7,a7 p>agraph 7#a7 %all take effect on !
 date t is #ahj days aft] ! date ( !    
enactm5t ( ?is section2 &  7,b7 p>agraph
 7#b7 %all take effect on ! date ( !    
enactm5t ( ?is section4  7b7 ,fannie    
,mae  7#a7 ,mortgage op]ations ,section 
#cjb ( ! ,national ,h\s+ ,act 7#ab      
,u4,s4,c4 #agag7;b77#b77--  7,a7 9      
subsection 7b77#b7-- 7i7 by /rik+ ,= ! &
 ins]t+ ! foll[+3  ,limits on pur*ases (
 high loan-to-value mortgages-- 7,a7 ,9 
g5]al ,= !  2  7ii7 9 subp>agraph 7,a71 
z am5d$ by clause 7i7-- 7,i7 by /rik+   
value ( & ins]t+ less] ( apprais$ value 
or pur*ase price (2  7,,ii7 by /rik+ n  
less ?an #aj p] c5tum 9 ! mortgage &    
ins]t+ n less ?an ! same p]c5tage ( !   
fir/-loss portion ( ! unpaid pr9cipal   
balance ( ! mortgage t is requir$ to be 
insur$ or gu>ante$ z describ$ 9         
subsection 7d77#a72  7,,iii7 by /rik+ = 
su* p]iod &2  7,,iv7 by ins]t+ n lat]   
?an #abj days aft] ! default ( su*      
mortgage aft] is 9 default2 &  7,v7 by  

/rik+ z det]m9$ by ! corporation &      
ins]t+ 1 subject to ! cov]age & !       
qualifi$ insur] requirem5ts describ$ 9  
subsection 7d72 &  7iii7 by add+ at !   
end ! foll[+3  7,b7 ,exception =        
ref9anc+ ,not)/&+ ! second s5t5ce (     
subp>agraph 7,a71 ! corporation may     
pur*ase a conv5tional mortgage ) an     
out/&+ pr9cipal balance exce$+ #ig p]c5t
 ( ! value ( ! prop]ty secur+ ! mortgage
 if ! corporation or ! ,f$]al ,home     
,loan ,mortgage ,corporation1 dur+ ! #cj
 day p]iod be=e ! orig9ation ( su*      
mortgage1 replac$ a mortgage ) ! same   
borr[] secur$ by ! same prop]ty & ! new 
conv5tional mortgage--  7i7 r$uces      
paym5t am\nts = ! borr[]2  7ii7 %ort5s !
 amortization t]m ( ! mortgage2 or      
7iii7 replaces v>iable rate mortgage )  
fix$ rate mortgage = a m9imum ( a #fj   
mon? t]m4  2 &  7,b7 by add+ at ! end ! 
foll[+3  7d7 ,insurance or gu>antee on  
unpaid pr9cipal balance ( a mortgage    
7#a7 ,requirem5ts  7,a7 ,9 g5]al ,)     
respect to ! insurance or gu>antee on ! 

portion ( ! unpaid pr9cipal balance at !
 "t ( pur*ase ( a mortgage :i* is 9     
excess ( #hj p]c5t ( ! value ( ! prop]ty
 secur+ ! mortgage t is requir$ "u      
subsection 7b77#b77;,a71 ! foll[+       
requirem5ts apply3 7i7 ,= a mortgage )  
an unpaid pr9cipal balance t is equal to
 an am\nt t is above #hj p]c5t & n m ?an
 #he p]c5t ( ! value ( ! prop]ty--  7,i7
 an am\nt t is n less ?an #ab p]c5t ( ! 
portion ( ! unpaid pr9cipal balance ( ! 
mortgage %all be gu>ante$ or insur$ by a
 qualifi$ insur]2 or  7,,ii7 if !       
mortgage is a fix$-rate mortgage ) a    
fully amortiz+ t]m ( less ?an or equal  
to #bj ye>s1 an am\nt t is n less ?an #f
 p]c5t ( ! portion ( ! unpaid pr9cipal  
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7ii7 ,= a
 mortgage ) an unpaid pr9cipal balance t
 is equal to an am\nt t is above #he    
p]c5t & n m ?an #ij p]c5t ( ! value ( ! 
prop]ty-- 7,i7 an am\nt t is n less ?an 
#be p]c5t ( ! portion ( ! unpaid        
pr9cipal balance ( ! mortgage %all be   

gu>ante$ or insur$ by a qualifi$ insur]2
 or  7,,ii7 if ! mortgage is a fix$-rate
 mortgage ) a fully amortiz+ t]m ( less 
?an or equal to #bj ye>s1 an am\nt t is 
n less ?an #ab p]c5t ! portion ( !      
unpaid pr9cipal balance ( ! mortgage    
%all be gu>ante$ or insur$ by a qualifi$
 insur]4  7iii7 ,= a mortgage ) an      
unpaid pr9cipal balance t is equal to an
 am\nt t is above #ij p]c5t & n m ?an   
#ie p]c5t ( ! value ( ! prop]ty--  7,i7 
an am\nt t is n less ?an #cj p]c5t !    
portion ( ! unpaid pr9cipal balance ( ! 
mortgage %all be gu>ante$ or insur$ by a
 qualifi$ insur]2 or  7,,ii7 if !       
mortgage is a fix$-rate mortgage ) a    
fully amortiz+ t]m ( less ?an or equal  
to #bj ye>s1 an am\nt t is n less ?an   
#be p]c5t ! portion ( ! unpaid pr9cipal 
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7iv7 ,= a
 mortgage ) an unpaid pr9cipal balance t
 is equal to an am\nt t is above #ie    
p]c5t & n m ?an #ig p]c5t ( ! value ( ! 
prop]ty1 an am\nt t is n less ?an #ce   

p]c5t ( ! portion ( ! unpaid pr9cipal   
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7,b7     
,exceptions  7i7 ,/ate ag5cies & c]ta9  
mortgage programs ,) respect to a sell] 
t is a ,/ate or political subdivision   
!re(1 = mortgages pur*as$ on behalf ( a 
,/ate or political subdivision !re(1 & =
 mortgages acquir$ "u section #acce ( ! 
,f$]al ,h\s+ ,ent]prises ,f9ancial      
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #defe71 ! foll[+ cov]age      
requirem5ts apply = unpaid pr9cipal     
balances at ! "t ( pur*ase3  7,i7 ,= a  
mortgage ) an unpaid pr9cipal balance t 
is equal to an am\nt t is above #hj     
p]c5t & n m ?an #he p]c5t ( ! value ( ! 
prop]ty1 an am\nt t is n less ?an #f    
p]c5t ! portion ( ! unpaid pr9cipal     
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7,,ii7 ,=
 a mortgage ) an unpaid pr9cipal balance
 t is equal to an am\nt t is above #he  
p]c5t & n m ?an #ij p]c5t ( ! value ( ! 
prop]ty1 an am\nt t is n less ?an #ab   

p]c5t ! portion ( ! unpaid pr9cipal     
balance ( ! mortgage %all be gu>ante$ or
 insur$ by a qualifi$ insur]4  7,,iii7  
,= a mortgage ) an unpaid pr9cipal      
balance t is equal to an am\nt t is     
above #ij p]c5t & n m ?an #ie p]c5t ( ! 
value ( ! prop]ty1 an am\nt t is n less 
?an #af p]c5t ( ! portion ( ! unpaid    
pr9cipal balance ( ! mortgage %all be   
gu>ante$ or insur$ by a qualifi$ insur]4
  7,,iv7 ,= a mortgage ) an unpaid      
pr9cipal balance t is equal to an am\nt 
t is above #ie p]c5t & n m ?an #ig p]c5t
 ( ! value ( ! prop]ty1 an am\nt t is n 
less ?an #ah p]c5t ! portion ( ! unpaid 
pr9cipal balance ( ! mortgage %all be   
gu>ante$ or insur$ by a qualifi$ insur]4
  7ii7 ,l[ income mortgagor  7,i7 ,9    
g5]al ,= a mortgage ) an unpaid pr9cipal
 balance at ! "t ( pur*ase t is equal to
 an am\nt t is above #ij p]c5t & n m ?an
 #ig p]c5t ( ! value ( ! prop]ty1 & =   
:i* ! mortgagor ( ! mortgage is a       
l[-income mortgagor1 ! ,director ( !    
,f$]al ,h\s+ ,f9ance ,ag5cy may p]mit t 

an am\nt t is n less ?an #be p]c5t ( !  
portion ( ! unpaid pr9cipal balance ( ! 
mortgage %all be gu>ante$ or insur$ by a
 qualifi$ insur]4  7,,ii7 ,l[-income    
mortgagor def9$  7aa7 ,9 g5]al ,! t]m   
l[-income mortgagor means a mortgagor ) 
a h\sehold income ( n m ?an #hj p]c5t ( 
! area m$ian income4  7bb7 ,area m$ian  
income qualification ,! ,director ( !   
,f$]al ,h\s+ ,f9ance ,ag5cy may adju/ ! 
area m$ian income qualification describ$
 9 item 7aa74  7#b7 ,qualifi$ insur]    
7,a7 ,9 g5]al ,to be a qualifi$ insur]  
"u ?is subsection1 an insur] %all--  7i7
 be subject to any ,/ate insurance law  
or regulations t are applicable to      
insurance companies 9 ! respective ,/ate
 9 :i* ! insur] op]ates2  7ii7 be       
subject to any eligibility /&>ds z      
describ$ 9 subp>agraph 7,b72 &  7iii7 be
 a private ent]prise4  7,b7 ,eligibility
 /&>ds f corporation  7i7 ,9 g5]al ,!   
corporation may set eligibility /&>ds1 z
 describ$ 9 clause 7ii71 = qualifi$     
insur]s4  7ii7  ,imposition ( /&>ds     

,any eligibility /&>ds impos$ by !      
corporation on qualifi$ insur]s %all be 
approv$ by ! ,director ( ! ,f$]al ,h\s+ 
,f9ance ,ag5cy & subject to a #cj day   
notice & comm5t p]iod = ! public1       
includ+ insur]s to provide input on !   
propos$ eligibility requirem5ts or      
*anges !reto4 ,! ,director may only     
approve su* propos$ eligibility         
requirem5ts f ! public comm5t p]iod4    
7e7 ,hold+ ( assets  7#a7 ,9 g5]al ,!   
value ( ! cov]$ assets held by !        
corporation at any "t may n exce$ !     
great] (-- 7,a7 #h p]c5t ( !            
corporation's total assets2 or  7,b7 an 
am\nt t ! ,secret>y ( ! ,treasury & !   
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy det]m9e is necess>y on a qu>t]ly 
basis to-- 7i7 engage 9 ! bus9ess (     
securitiz+ mortgage-back$ securities    
gu>ante$ ! corporation2 &  7ii7 comply )
 ! liquidity requirem5ts prescrib$ by ! 
,director4  7#b7 ,cov]$ assets def9$ ,9 
?is subsection1 ! t]m cov]$ assets--    
7,a7 means mortgages1 mortgage loans1   

mortgage-relat$ securities1 p>ticipation
 c]tificates1 mortgage-back$ comm]cial  
pap]1 obligations ( real e/ate mortgage 
inve/m5t conduits1 & any sub/antially   
simil> assets2 &  7,b7 does n include   
loans = ! con/ruction ( resid5tial      
dwell+ units4  7f7  ,requirem5ts apply+ 
to ! pur*ase ( s+le-,family resid5tial  
mortgages  7#a7  ,9 g5]al  ,!           
corporation may n v>y ! pric+ or any o!r
 contractual t]m ( ! acquisition by !   
corporation ( any s+le-family resid5tial
 mortgage 7includ+ by grant+ any        
v>iance7 bas$ on ! size1 *>t] type1 or  
volume ( bus9ess ( ! sell] ( su*        
mortgage4  7#b7  ,equival5t (f]s  ,!    
corporation %all (f] to pur*ase at all  
times1 = equival5t ca% consid]ation     
7subject to an appropriate adju/m5t = ! 
value ( any s]vic+ rights reta9$ by an  
approv$ sell]-s]vic] & = ! co/ ( be>+ or
 o!rwise manag+ any increm5tal cr$it1   
m>ket1 op]ational1 liquidity1 or o!r    
risk associat$ ) ! ca% w9d[71 & on      
sub/antially simil> t]ms1 includ+ pric+1

 any s+le-family resid5tial mortgage t--
  7,a7 is ( a class ( s+le-family       
resid5tial mortgages t ! corporation    
(f]s to acquire = mortgage-back$        
securities gu>ante$ by ! corporation or 
o!r nonca% consid]ation2  7,b7 is (f]$ =
 sale to ! corporation by a sell] t has 
be5 approv$ to d bus9ess ) !            
corporation2 &  7,c7 has be5 orig9at$ &1
 if sold1 sold 9 compliance ) any       
und]writ+ or o!r simil> re/rictions     
prescrib$ by ! corporation or !         
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy z a cons]vator2  7#c7            
,simultane\s mortgage le9s  ,!          
corporation may n pur*ase a s+le-family 
resid5tial mortgage t 0 orig9at$ 9      
comb9ation ) a subord9ate li5 secur$    
aga9/ ! same prop]ty if at ! "t (       
orig9ation1 su* mortgage or su*         
subord9ate li5 provid$ access to a home 
equity l9e ( cr$it t1 if us$ by !       
mortgagor c\ld1 9 comb9ation ) ! orig9al
 pr9cipal obligation ( su* mortgage & ! 
orig9al pr9cipal obligation ( su*       

subord9ate li51 exce$ #hj p]c5t ( !     
value ( su* prop]ty4  4  7#b7           
,obligations & securities ,section      
#cjd7;g77#b77;,c77i7 ( ! ,national ,h\s+
 ,act 7#ab ,u4,s4,c4                    
#agai7;g77#b77;,c77i77 is am5d$ to read 
z foll[s3  7i7 d$icat$ =--  7,i7 !      
purpose ( deficit r$uction2 or  7,,ii7 !
 purpose ( support+ h\s+ supply         
initiatives1 includ+ af=dable &         
middle-income h\s+ developm5ts1 z def9$ 
by ! ,secret>y ( ! ,treasury2 &  4  7#c7
 ,effective dates ,! am5dm5ts made by-- 
7,a7 p>agraph 7#a7 %all take effect on !
 date t is #ahj days aft] ! date ( !    
enactm5t ( ?is section2 &  7,b7 p>agraph
 7#b7 %all take effect on ! date ( !    
enactm5t ( ?is section4  #c4 ,adju/m5ts 
to limitations ( maximum orig9al        
pr9cipal obligation ( conv5tional       
mortgages  7a7 ,fr$die ,mac ,section    
#cje7;a77#b77;,a7 ( ! ,f$]al ,home ,loan
 ,mortgage ,corporation ,act1 z am5d$ by
 section #b1 is fur!r am5d$ by /rik+    
,ea* adju/m5t & all t foll[s ?r\gh exce$

 prior decl9es4 & ins]t+ ! foll[+3 ,ea* 
adju/m5t %all be made by add+ ea* su*   
am\nt 7z x may h be5 previ\sly adju/$7 a
 p]c5tage !re( equal to ! l[] ( !       
p]c5tage increase1 dur+ ! mo/ rec5t     
#ab-mon? p]iod end+ be=e ! "t ( det]m9+ 
su* annual adju/m5t1 9 m$ian h\sehold   
income publi%$ by ! ,bureau ( ! ,c5sus  
or ! h\s+ price index z det]m9$ by !    
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy44  7b7 ,fannie ,mae ,section     
#cjb7;b77#b77;,a7 ( ! ,national ,h\s+   
,act1 z am5d$ by section #b1 is fur!r   
am5d$ by /rik+ ,ea* adju/m5t & all t    
foll[s ?r\gh exce$ prior decl9es4 &     
ins]t+ ! foll[+3 ,ea* adju/m5t %all be  
made by add+ ea* su* am\nt 7z x may h   
be5 previ\sly adju/$7 a p]c5tage !re(   
equal to ! l[] ( ! p]c5tage increase1   
dur+ ! mo/ rec5t #ab-mon? p]iod end+    
be=e ! "t ( det]m9+ su* annual adju/m5t1
 9 m$ian h\sehold income publi%$ by !   
,bureau ( ! ,c5sus or ! h\s+ price index
 z det]m9$ by ! ,director ( ! ,f$]al    
,h\s+ ,f9ance ,ag5cy44  7c7 ,,fha ,loans

 ,section #bjc7;b77#b77;,a7 ( !         
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agji7;b77#b77 is am5d$--  7#a7 by /rik+
 n to exce$ ! less] (-- & ins]t+ !      
foll[+3 n to exce$ #aae p]c5t ( ! m$ian 
h\se price 9 ! area 9 #bjbf1 z det]m9$  
by ! ,secret>y1 :i* ! ,secret>y %all    
adju/ ! maximum pr9cipal obligation     
p]mitt$ on an annual basis by add+ to ! 
am\nt describ$ 9 ! previ\s s5t5ce a     
p]c5tage !re( equal to ! l[] ( !        
p]c5tage increase1 dur+ ! mo/ rec5t     
#ab-mon? p]iod end+ be=e ! "t ( det]m9+ 
su* annual adju/m5t1 9 m$ian h\sehold   
income publi%$ by ! ,bureau ( ! ,c5sus  
or ! h\s+ price index z det]m9$ by !    
,director ( ! ,f$]al ,h\s+ ,f9ance      
,ag5cy22 &  7#b7 by /rik+ clauses 7i7 & 
7ii72  #d4 ,prior approval ( ent]prise  
products  7a7 ,9 g5]al ,section #acba ( 
! ,f$]al ,h\s+ ,ent]prises ,f9ancial    
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #deda7 is am5d$--  7#a7 9     
subsection 7c7-- 7,a7 9 p>agraph 7#c7-- 
7i7 by /rik+ #cj-;day & ins]t+ #fj-;day2

  7ii7 by /rik+ ,dur+ & ins]t+ ! foll[+3
  7,a7 ,9 g5]al ,dur+  2 &  7iii7 by    
add+ at ! end ! foll[+3  7,b7 ,ext5sion 
( public comm5t p]iod ,! ,director may  
ext5d ! public comm5t p]iod describ$ 9  
subp>agraph 7,a7 by #cj days4  2 &  7,b7
 9 p>agraph 7#d7--  7i7 9 subp>agraph   
7,a71 by /rik+ #cj & ins]t+ #fj2  7ii7 9
 subp>agraph 7,b71 by /rik+ #cj-;day &  
all t foll[s ?r\gh product & ins]t+     
#fj-;day p]iod describ$ 9 subp>agraph   
7,a71 !n ! product is d5i$42 &  7iii7 by
 /rik+ subp>agraph 7,c72  7#b7 9        
subsection 7e77#a77;,c7--  7,a7 by /rik+
 to-- & ins]t+ to ! activities describ$ 
9 subp>agraphs 7,a7 & 7,b742 &  7,b7 by 
/rik+ clauses 7i7 & 7ii72 &  7#c7 by    
add+ at ! end ! foll[+3  7g7 ,public    
disclosure ( det]m9ation ,9 addition to 
in=mation disclos$ 9 ! reque/ = public  
comm5t "u subsection 7c71 ! ,director   
%all publi% on a public website & 9 !   
,f$]al ,regi/] any non-propriet>y       
in=mation relat$ to a det]m9ation )     
respect a new product or new activity   

submission n lat] ?an #cj days aft] mak+
 su* det]m9ation1 includ+ in=mation     
relat$ to ! crit]ia = su* det]m9ation4  
4  7b7 ,rulemak+ ,n lat] ?an #ij days   
aft] ! date ( ! enactm5t ( ?is section1 
! ,director ( ! ,f$]al ,h\s+ ,f9ance    
,ag5cy %all issue or revise rules to    
c>ry out ! am5dm5ts ( ?is section4  #e4 
,core capital def9ition ,section        
#acjc7g7 ( ! ,f$]al ,h\s+ ,ent]prises   
,f9ancial ,safety & ,s\ndness ,act (    
#aiib 7#ab ,u4,s4,c4 #dejb7g77 is am5d$ 
by ins]t+ aft] subp>agraph 7,d7 !       
foll[+3  7,e7 ,any o!r compon5ts or     
adju/m5ts z det]m9$ appropriate by !    
,director = ! purposes (-- 7i7 ensur+   
safety & s\ndness ( an ent]prise2 &     
7ii7 enhanc+ transp>5cy & consi/5cy )   
respect to f9ancial indu/ry /&>ds4  4   
#f4 ,risk transf] requirem5ts  7a7      
,transf] ( risk ,subp>t ,a ( "p #b (    
subtitle ,a ( ! ,f$]al ,h\s+ ,ent]prises
 ,f9ancial ,safety & ,s\ndness ,act (   
#aiib 7#ab ,u4,s4,c4 #deda et seq47 is  
am5d$ by add+ at ! end ! foll[+3  #acbi4

 ,transf] ( risk  7a7 ,9 g5]al ,n lat]  
?an #b ye>s aft] ! date ( ! enactm5t (  
?is section1 ! ,director %all require   
ea* ent]prise to transf] ! va/ majority 
( cr$it risk on s+le-family resid5tial  
mortgages1 z det]m9$ by ! ,director1    
/>t+ at ! fir/ doll> aft] expect$       
losses1 us+ ! mo/ economically feasible 
me*anism to ensure t cr$it risk is      
transf]r$ at all tran*es ( risk1 z      
prompt z ! m>ket conditions w           
facilitate1 to a div]sifi$ pool (       
inve/ors & insur]s1 all on a safe & s\nd
 basis1 to r$uce ! mortgage cr$it risk  
conc5tration at ! ent]prises at a co/ t 
is consid]$ reasonable & consi/5t ) !   
level ( gu>antee fees be+ *>g$4  7b7    
,cr$it risk transf] t>gets & publication
  7#a7 ,t>gets ,! ,director %all1 on an 
annual basis1 issue & publi% guidance t 
describes t>gets = cr$it risk transf]   
transactions4  7#b7 ,report to ,congress
 ,! ,director %all1 on an annual basis1 
submit to ! ,congress a report t        
describes ! results ( ! previ\s ye>'s   

cr$it risk transf]s4  7c7 ,cr$it risk   
transf] /ructures ,! ,f$]al ,home ,loan 
,mortgage ,corporation & ! ,f$]al       
,national ,mortgage ,association may use
 exi/+ ,cr$it ,risk ,transf] /ructures1 
includ+ ,cr$it ,insurance ,risk ,transf]
 7#8,,cirt'71 ,ag5cy ,cr$it ,insurance  
,/ructure 7#8,,acis'71 ,connecticut     
,av5ue ,security 7#8,,cas'71 or         
,/ructur$ ,ag5cy ,cr$it ,risk           
7#8,,/acr'71 & ,sell]_/,s]vic] ,risk    
,%>e arrangem5ts1 = ! risk transf] t is 
requir$ "u subsection 7a74  7d7         
,economically feasible def9$ ,9 ?is     
section1 ! t]m #8economically feasible' 
means ! ability to consummate a         
risk-transf] trade 9 a mann] t results 9
 ! ent]prise rema9+ pr(itable on its    
acquisition ( ! und]ly+ collat]al 9 :i* 
! risk is transf]r$4  4  7b7 ,risk bas$ 
capital levels ,section #acfa7;a77#a7 ( 
! ,f$]al ,h\s+ ,ent]prises ,f9ancial    
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #dfaa7;a77#a77 is am5d$ to    
read z foll[s3  7#a7  ,ent]prises  ,!   

,director %all1 by regulation1 e/abli%  
risk-bas$ capital requirem5ts = !       
ent]prises to ensure t ! ent]prises     
op]ate 9 a safe & s\nd mann]1 ma9ta9+   
suffici5t capital & res]ves to support !
 risks t arise 9 ! op]ations & managem5t
 ( ! ent]prises1 & promote consi/5cy    
betwe5 ! capital treatm5t ( cr$it risk  
transf] & comp>able risk-transf]        
me*anism us$ by f$]ally regulat$        
f9ancial in/itutions4 ,! capital        
requirem5ts %all align ) ! actual cr$it 
risk *>act]i/ics ( mortgages &          
mortgage-back$ securities1 includ+      
loan-to-value ratios1 borr[] cr$it      
scores1 debt-to-income ratios1 & product
 /ructure1 & avoid capital treatm5t t   
disc\rages or p5alizes ! use ( prud5t   
cr$it risk transf] me*anisms4  4  #g4   
,capital framework & return regulation =
 gov]nm5t-sponsor$ ent]prises  7a7      
,treasury l9e ( cr$it & p]iodic         
commitm5t fee  7#a7 ,cont9uation (      
treasury support ,not)/&+ section #h (  
?is ,act1 ! l9es ( cr$it e/abli%$ "u    

section #b4a ( ! ,s5ior ,pref]r$ ,/ock  
,pur*ase ,agreem5ts = ea* ent]prise %all
 rema9 9 effect4  7#b7 ,availability (  
unus$ cr$it facility ,ea* ent]prise %all
 reta9 access to any unus$ & out/&+     
balances ( ! l9es ( cr$it describ$ 9    
p>agraph 7#a71 :i* %all s]ve exclusively
 z a cata/rophic risk back/op subord9ate
 to any capital requirem5ts made by !   
,director pursuant to section #acac;,b (
 ! ,f$]al ,h\s+ ,ent]prises ,f9ancial   
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #deac;b74  7#c7 ,commitm5t fee
 /ructure ,to reta9 access to ! l9e (   
cr$it describ$ 9 p>agraph 7#a71 ea*     
ent]prise %all pay an annual commitm5t  
fee1 ! co/ ( :i* %all be det]m9$ by !   
,secret>y ( ! ,treasury1 9 consultation 
) ! ,director1 bas$ on prevail+ m>ket   
risk indicators1 includ+-- 7,a7 cr$it   
default swap spreads ( comp>able        
f9ancial in/itutions2 &  7,b7 impli$    
risk pric+ 9 sy/emic risk assessm5ts    
det]m9$ by ! ,bo>d ( ,gov]nors ( !      
,f$]al ,res]ve ,sy/em & ! ,director4    

7b7 ,e/abli%m5t ( all[able return on    
equity range  7#a7 ,purpose ( return on 
equity range ,= ! purposes ( ensur+     
f9ancial /ability & prev5t+ excessive   
risk-tak+1 ! ,director1 9 consultation )
 ! ,secret>y ( ! ,treasury1 %all e/abli%
 a return on equity range requirem5t = !
 ent]prises4  7#b7 ,return on equity    
range det]m9ation ,! ,director %all     
initially e/abli% ! return on equity    
range betwe5 #i & #ac p]c5t1 z det]m9$  
?r\gh an economic assessm5t ( f9ancial  
m>ket conditions4  7#c7 ,review &       
adju/m5ts on return on equity range ,n  
lat] ?an #e ye>s aft] ! date ( !        
enactm5t ( ?is section1 & n lat] ?an e  
#e ye>s !reaft]1 ! ,director--  7,a7    
%all review & adju/ z necess>y ! return 
on equity range e/abli%$ "u ?is section2
  7,b7 may make adju/m5ts to ! range to 
a p]c5tage t is outside ! p]c5tage range
 describ$ 9 p>agraph 7#b72 &  7,c7 %all 
make ! adju/m5ts ?r\gh rulemak+4  7c7   
,commitm5t fee adju/m5ts & capital      
ret5tion  7#a7 ,commitm5t fee 9 normal  

op]at+ conditions ,9 any fiscal ye> 9   
:i* an ent]prise reports a return on    
equity range )9 ! e/abli%$ range1 !     
ent]prise %all pay ! commitm5t fee z    
det]m9$ "u subsection 7a77#c74  7#b7    
,capital ret5tion :5 return on equity   
falls bel[ ! l[] b\nd ,9 any fiscal ye> 
9 :i* an ent]prise reports a return on  
equity range bel[ ! l[] b\nd ( !        
e/abli%$ range1 ! ent]prise %all-- 7,a7 
be exempt f pay+ ! commitm5t fee = su*  
ye>2 &  7,b7 prioritize ! ret5tion (    
e>n+s to bol/] capital res]ves1 unless !
 core capital levels ( ! ent]prise meet 
or exce$ ! m9imum requirem5ts "u any    
capital requirem5ts made by ! ,director 
pursuant to section #acac;,b ( ! ,f$]al 
,h\s+ ,ent]prises ,f9ancial ,safety &   
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#deac;b74  7#c7 ,excess e>n+s remittance
 :5 roe exce$s upp] b\nd ,9 any fiscal  
ye> 9 :i* an ent]prise reports a return 
on equity range above ! upp] b\nd ( !   
e/abli%$ range1 ! ent]prise %all--  7,a7
 pay ! commitm5t fee z det]m9$ "u       

subsection 7a77#c72 &  7,b7 remit all   
net e>n+s exce$+ ! upp] b\nd to !       
,secret>y ( ! ,treasury to comp5sate !  
,f$]al ,gov]nm5t = its implicit         
risk-be>+ role4  7d7 ,divid5d           
re/rictions bas$ on capital adequacy    
7#a7 ,divid5d re/riction = capital      
defici5cy ,an ent]prise may n issue     
divid5ds 9 any fiscal ye> 9 :i* ! core  
capital ( ! ent]prise falls bel[ !      
m9imum levels requir$ "u any capital    
requirem5ts made by ! ,director pursuant
 to section #acac;,b ( ! ,f$]al ,h\s+   
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#deac;b74  7#b7 ,divid5d ,all[ance 9 l[ 
return on equity ye>s ) ,adequate       
,capital ,if an ent]prise core capital  
meets or exce$s ! m9imum capital        
requirem5ts made by ! ,director pursuant
 to section #acac;,b ( ! ,f$]al ,h\s+   
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#deac;b71 divid5d paym5ts may n be      
re/rict$1 not)/&+ ye>s 9 :i* ! return on

 equity falls bel[ ! l[] b\nd ( !       
e/abli%$ range4  7e7 ,implem5tation &   
,regulatory ,ov]sight  7#a7 ,rulemak+ & 
ov]sight ,! ,director1 9 consultation ) 
! ,secret>y ( ! ,treasury1 %all issue   
rules to implem5t ?is section1 includ+--
 7,a7 ! me?odologies = calculat+ !      
commitm5t fee describ$ 9 subsection     
7a77#c72  7,b7 ! proc$ures = sett+ &    
adju/+ ! return on equity range describ$
 9 subsection 7b72  7,c7 ! capital      
ret5tion requirem5ts describ$ 9         
subsection 7c77#b72 &  7,d7 ! me*anisms 
= remittances ( excess e>n+s describ$ 9 
subsection 7c77#c77;,b74  7#b7 ,annual  
report+ to congress ,n lat] ?an #a ye>  
aft] ! date ( ! enactm5t ( ?is section1 
& annually !reaft]1 ! ,director %all    
submit to ! ,f9ancial ,s]vices          
,committee ( ! ,h\se ( ,repres5tatives &
 ! ,bank+1 ,h\s+1 & ,urban ,affairs     
,committee ( ! ,s5ate a report t        
details--  7,a7 ! f9ancial p]=mance (   
ea* ent]prise2  7,b7 ! /atus ( ! l9es ( 
cr$it describ$ 9 subsection 7a71 includ+

 ! am\nt ( unus$ cr$it available2  7,c7 
! effect ( ! return on equity range on  
h\s+ f9ance /ability & af=dability2 &   
7,d7 any recomm5dation = legislative or 
regulatory adju/m5ts to enhance !       
ov]sight & risk managem5t ( !           
ent]prises4  7f7 ,def9itions ,9 ?is     
section3 7#a7 ,director ,! t]m ,director
 means ! ,director ( ! ,f$]al ,h\s+     
,f9ance ,ag5cy4  7#b7 ,ent]prise ,! t]m 
ent]prise has ! mean+ giv5 su* t]m 9    
section #acjc ( ! ,f$]al ,h\s+          
,ent]prises ,f9ancial ,safety &         
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#dejb74  7#c7 ,e/abli%$ range ,! t]m    
e/abli%$ range means ! return on equity 
range e/abli%$ "u subsection 7b7 & any  
adju/m5ts made to su* range "u          
subsection 7b77#c74  7#d7 ,return on    
equity ,! t]m return on equity means !  
annual net income ( ! ent]prise divid$  
by value ( total %>ehold] equity ( !    
ent]prise1 express$ z a p]c5tage4  7#e7 
,s5ior ,pref]r$ ,/ock ,pur*ase ,agreem5t
 ,! t]m ,s5ior ,pref]r$ ,/ock ,pur*ase  

,agreem5t means1 ) respect to an        
ent]prise1 ! ,am5d$ & ,re/at$ ,s5ior    
,pref]r$ ,/ock ,pur*ase ,agreem5ts1 dat$
 ,septemb] #bf1 #bjjh1 am5d$ ,may #f1   
#bjji1 fur!r am5d$ ,decemb] #bd1 #bjji1 
& fur!r am5d$ ,augu/ #ag1 #bjab1 betwe5 
! ,secret>y ( ! ,treasury & su*         
ent]prise4  #h4 ,/ock ( ea* ent]prise2  
plan to t]m9ate cons]vator%ip  7a7      
,s5ior ,pref]r$ ,/ock conv]sion ,!      
,secret>y ( ! ,treasury may conv]t !    
,s5ior ,pref]r$ ,/ocks ( ea* ent]prise  
into common equity4  7b7 ,no resumption 
( p]iodic commitm5t fee ,! ,secret>y ( !
 ,treasury %all n require ! ent]prises  
to adh]e to ! p]iodic commitm5t fee     
describ$ 9 section #c4b ( ! ,s5ior      
,pref]r$ ,/ock ,pur*ase ,agreem5ts4  7c7
 ,ex]cise ( w>rants = common /ock ,!    
,secret>y ( ! ,treasury %all ex]cise !  
w>rants = ! pur*ase ( common /ock ( !   
ent]prises provid$ to ! ,secret>y "u !  
,s5ior ,pref]r$ ,/ock ,pur*ase          
,agreem5ts4  7d7 ,prep>ation ,to t]m9ate
 cons]vator%ip  7#a7 ,capital /&>ds ,n  

lat] ?an #ij aft] ! date ( ! enactm5t ( 
?is section1 ! ,director ( ! ,f$]al     
,h\s+ ,f9ance ,ag5cy %all make a        
det]m9ation ) respect to necess>y       
capital /&>ds = ea* ent]prise to exit   
cons]vator%ip4  7#b7  ,insuffici5t      
capital  ,if an ent]prise does n meet ! 
capital /&>ds describ$ 9 p>agraph 7#a71 
! ,director ( ! ,f$]al ,h\s+ ,f9ance    
,ag5cy %all--  7,a7 direct ! ent]prise  
to sell /ock to meet capital /&>ds2     
7,b7 def9e capital ?re%olds t det]m9e ! 
level ( int]v5tion by ! ,director2 &    
7,c7 det]m9e a timel9e = ! ent]prise to 
rea* necess>y capital /&>ds4  7#c7      
,commitm5t to re/ructure  ,n lat] ?an #a
 ye> aft] ! date ( ! enactm5t ( ?is     
section1 ! ,secret>y ( ! ,treasury & ea*
 ent]prise %all re/ructure ! inve/m5t & 
divid5d am\nt ( ! ,dep>tm5t ( !         
,treasury ) respect to ea* ent]prise 9 a
 mann] t facilitates ! ord]ly exit f    
cons]vator%ip4  7e7 ,sale ( /ocks ,n    
lat] ?an #b ye>s aft] ! date ( !        
enactm5t ( ?is section1 ! ,secret>y ( ! 

,treasury %all sell ! /ock f ex]cis+ its
 w>rants describ$ 9 subsection 7c74  7f7
 ,def9itions ,9 ?is section3  7#a7      
,ent]prise ,! t]m ent]prise has ! mean+ 
giv5 su* t]m 9 section #acjc ( ! ,f$]al 
,h\s+ ,ent]prises ,f9ancial ,safety &   
,s\ndness ,act ( #aiib 7#ab ,u4,s4,c4   
#dejb74  7#b7 ,s5ior ,pref]r$ ,/ock     
,pur*ase ,agreem5t ,! t]m ,s5ior        
,pref]r$ ,/ock ,pur*ase ,agreem5t means1
 ) respect to an ent]prise1 ! ,am5d$ &  
,re/at$ ,s5ior ,pref]r$ ,/ock ,pur*ase  
,agreem5ts1 dat$ ,septemb] #bf1 #bjjh1  
am5d$ ,may #f1 #bjji1 fur!r am5d$       
,decemb] #bd1 #bjji1 & fur!r am5d$      
,augu/ #ag1 #bjab1 betwe5 ! ,secret>y ( 
! ,treasury & su* ent]prise4