Housing and Economic Recovery Act of 2008/Division A/Title I/Subtitle A

{{SECTION|SEC. 1101.|SEC. 1101}}. ESTABLISHMENT OF THE FEDERAL HOUSING FINANCE AGENCY.

 * The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by striking sections 1311 and 1312 and inserting the following:

{{SECTION|SEC. 1102.|SEC. 1102}}. DUTIES AND AUTHORITIES OF THE DIRECTOR.

 * (a) In General.—
 * Section 1313 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4513) is amended to read as follows:


 * (b) Independence in Congressional Testimony and Recommendations.—
 * Section 111 of Public Law 93-495 (12 U.S.C. 250) is amended by striking "the Federal Housing Finance Board" and inserting "the Director of the Federal Housing Finance Agency".

{{SECTION|SEC. 1103.|SEC. 1103}}. FEDERAL HOUSING FINANCE OVERSIGHT BOARD.

 * (a) In General.—
 * The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting after section 1313 the following:


 * (b) Annual Report of the Director.—
 * Section 1319B(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4521(a)) is amended—
 * (1) by striking "enterprise" each place that term appears and inserting "regulated entity";


 * (2) by striking "enterprises" each place that term appears and inserting "regulated entities";


 * (3) in paragraph (3), by striking "; and" and inserting a semicolon;


 * (4) in paragraph (4), by striking "1994." and inserting "1994; and"; and


 * (5) by adding at the end the following:

{{SECTION|SEC. 1104.|SEC. 1104}}. AUTHORITY TO REQUIRE REPORTS BY REGULATED ENTITIES.

 * (a) In General.—
 * Section 1314 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4514) is amended—
 * (1) in the section heading, by striking "enterprises" and inserting "regulated entities";


 * (2) by striking "an enterprise" each place that term appears and inserting "a regulated entity";


 * (3) by striking "the enterprise" and inserting "the regulated entity";


 * (4) in subsection (a)—


 * (A) by striking the subsection heading and all that follows through "and operations" in paragraph (1) and inserting the following:


 * (B) in paragraph (2)—
 * (i) by inserting ", by general or specific orders," after "may also require"; and


 * (ii) by striking "whenever" and inserting "on any of the topics specified in paragraph (1) or any other relevant topics, if"; and


 * (5) by adding at the end the following:


 * (b) Conforming Amendment.—
 * The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by striking sections 1327 and 1328.

{{SECTION|SEC. 1105.|SEC. 1105}}. EXAMINERS AND ACCOUNTANTS; AUTHORITY TO CONTRACT FOR REVIEWS OF REGULATED ENTITIES; OMBUDSMAN.

 * (a) In General.—
 * Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517) is amended—
 * (1) in subsection (a), by striking "enterprise" each place that term appears and inserting "regulated entity";


 * (2) in subsection (b)—
 * (A) by inserting "of a regulated entity" after "under this section"; and


 * (B) by striking "to determine the condition of an enterprise for the purpose of ensuring its financial safety and soundness" and inserting "or appropriate";


 * (3) in subsection (c), in the second sentence, by inserting before the period "to conduct examinations under this section";


 * (4) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; and


 * (5) by inserting after subsection (c) the following:


 * ``(d) Inspector General.—There shall be within the Agency an Inspector General, who shall be appointed in accordance with section 3(a) of the Inspector General Act of 1978.´´.


 * (b) Direct Hire Authority To Hire Accountants, Economists, and Examiners.—
 * Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517) is amended by adding at the end the following:


 * (c) Amendments to Inspector General Act.—
 * Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—
 * (1) in paragraph (1), by inserting "; the Director of the Federal Housing Finance Agency" after "Social Security Administration"; and


 * (2) in paragraph (2), by inserting ", the Federal Housing Finance Agency" after "Social Security Administration".


 * (d) Authority To Contract for Reviews of Regulated Entities.—
 * Section 1319 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4519) is amended—
 * (1) in the section heading, by striking "enterprises by rating organization" and inserting "regulated entities"; and


 * (2) by striking "enterprises" and inserting "regulated entities".


 * (e) Office of the Ombudsman.—
 * Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517) is amended by adding at the end the following:


 * ``(i) Ombudsman.—The Director shall establish, by regulation, an Office of the Ombudsman within the Agency, which shall be responsible for considering complaints and appeals, from any regulated entity and any person that has a business relationship with a regulated entity, regarding any matter relating to the regulation and supervision of such regulated entity by the Agency. The regulation issued by the Director under this subsection shall specify the authority and duties of the Office of the Ombudsman.´´.

{{SECTION|SEC. 1106.|SEC. 1106}}. ASSESSMENTS.

 * Section 1316 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4516) is amended—
 * (1) by striking subsection (a) and inserting the following:


 * (2) in subsection (b)—
 * (A) by realigning the margins of paragraph (2) two ems from the left, so as to align the left margin of such paragraph with the left margins of paragraph (1);


 * (B) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and


 * (C) by inserting after paragraph (1) the following:


 * ``(2) Separate treatment of federal home loan bank and enterprise assessments.—Assessments collected from the enterprises shall not exceed the amounts sufficient to provide for the costs and expenses described in subsection (a) relating to the enterprises. Assessments collected from the Federal Home Loan Banks shall not exceed the amounts sufficient to provide for the costs and expenses described in subsection (a) relating to the Federal Home Loan Banks.´´;


 * (3) by striking subsection (c) and inserting the following:


 * (4) in subsection (d), by striking "If" and inserting "Except with respect to amounts collected pursuant to subsection (a)(3), if"; and


 * (5) by striking subsections (e) through (g) and inserting the following:

{{SECTION|SEC. 1107.|SEC. 1107}}. REGULATIONS AND ORDERS.

 * Section 1319G of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4526) is amended—
 * (1) by striking subsection (a) and inserting the following:


 * ``(a) Authority.—The Director shall issue any regulations, guidelines, or orders necessary to carry out the duties of the Director under this title or the authorizing statutes, and to ensure that the purposes of this title and the authorizing statutes are accomplished.´´; and


 * (2) by striking subsection (c).

{{SECTION|SEC. 1108.|SEC. 1108}}. PRUDENTIAL MANAGEMENT AND OPERATIONS STANDARDS.

 * The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting after section 1313A, as added by this Act, the following new section:

{{SECTION|SEC. 1109.|SEC. 1109}}. REVIEW OF AND AUTHORITY OVER ENTERPRISE ASSETS AND LIABILITIES.

 * (a) In General.—
 * Subtitle B of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4611 et seq.) is amended—
 * (1) by striking the subtitle designation and heading and inserting the following:


 * ``Subtitle B—Required Capital Levels for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and Liabilities´´; and


 * (2) by adding at the end the following new section:


 * (b) Regulations.—
 * Not later than the expiration of the 180-day period beginning on the effective date of this Act, the Director shall issue regulations pursuant to section 1369E(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (as added by subsection (a) of this section) establishing the portfolio holdings standards under such section.

{{SECTION|SEC. 1110.|SEC. 1110}}. RISK-BASED CAPITAL REQUIREMENTS.

 * (a) In General.—
 * Section 1361 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4611) is amended to read as follows:


 * (b) Federal Home Loan Banks Risk-Based Capital.—
 * Section 6(a)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1426(a)(3)) is amended—
 * (1) by striking subparagraph (A) and inserting the following:


 * ``(A) Risk-based capital standards.—
 * ``The Director shall, by regulation, establish risk-based capital standards for the Federal Home Loan Banks to ensure that the Federal Home Loan Banks operate in a safe and sound manner, with sufficient permanent capital and reserves to support the risks that arise in the operations and management of the Federal Home Loans Banks.´´; and


 * (2) in subparagraph (B), by striking "(A)(ii)" and inserting "(A)".

{{SECTION|SEC. 1111.|SEC. 1111}}. MINIMUM CAPITAL LEVELS.

 * Section 1362 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4612) is amended—
 * (1) in subsection (a), by striking "In General" and inserting "Enterprises"; and
 * (2) by striking subsection (b) and inserting the following:

{{SECTION|SEC. 1112.|SEC. 1112}}. REGISTRATION UNDER THE SECURITIES LAWS.

 * The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by adding at the end the following:

{{SECTION|SEC. 1113.|SEC. 1113}}. PROHIBITION AND WITHHOLDING OF EXECUTIVE COMPENSATION.

 * (a) In General.—
 * Section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518) is amended—
 * (1) in the section heading, by striking "of excessive" and inserting "and withholding of executive";


 * (2) in subsection (a)—
 * (A) by striking "enterprise" and inserting "regulated entity"; and


 * (B) by striking "enterprises" and inserting "regulated entities";


 * (3) by redesignating subsection (b) as subsection (d); and


 * (4) by inserting after subsection (a) the following:


 * ``(b) Factors.—In making any determination under subsection (a), the Director may take into consideration any factors the Director considers relevant, including any wrongdoing on the part of the executive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. The approval of an agreement or contract pursuant to section 309(d)(3)(B) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)(3)(B)) or section 303(h)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)(2)) shall not preclude the Director from making any subsequent determination under subsection (a).
 * ``(c) Withholding of Compensation.—In carrying out subsection (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation.´´.


 * (b) Conforming Amendments.—
 * (1) Fannie Mae.—
 * Section 309(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)) is amended by adding at the end the following new paragraph:


 * ``(4) Notwithstanding any other provision of this section, the corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).´´.


 * (2) Freddie Mac.—
 * Section 303(h) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)) is amended by adding at the end the following new paragraph:


 * ``(4) Notwithstanding any other provision of this section, the Corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).´´.


 * (3) Federal Home Loan Banks.—
 * Section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) is amended by adding at the end the following new subsection:


 * ``(l) Withholding of Compensation.—Notwithstanding any other provision of this section, a Federal Home Loan Bank shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).´´.

{{SECTION|SEC. 1114.|SEC. 1114}}. LIMIT ON GOLDEN PARACHUTES.

 * Section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518) is amended by adding at the end the following:

{{SECTION|SEC. 1115.|SEC. 1115}}. REPORTING OF FRAUDULENT LOANS.

 * Part 1 of subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4631 et seq.), as amended by this Act, is amended by adding at the end the following:

{{SECTION|SEC. 1116.|SEC. 1116}}. INCLUSION OF MINORITIES AND WOMEN; DIVERSITY IN AGENCY WORKFORCE.

 * Section 1319A of the Housing and Community Development Act of 1992 (12 U.S.C. 4520) is amended—
 * (1) in the section heading, by striking "equal opportunity in solicitation of contracts" and inserting "minority and women inclusion; diversity requirements";
 * (2) in subsection (a), by striking "(a) In General.—Each enterprise" and inserting "(e) Outreach.—Each regulated entity"; and
 * (3) by striking subsection (b);
 * (4) by inserting before subsection (e), as so redesignated by paragraph (2) of this section, the following new subsections:


 * (5) by adding at the end the following new subsection:

{{SECTION|SEC. 1117.|SEC. 1117}}. TEMPORARY AUTHORITY FOR PURCHASE OF OBLIGATIONS OF REGULATED ENTITIES BY SECRETARY OF TREASURY.

 * (a) Fannie Mae.—
 * Section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719) is amended by adding at the end the following new subsection:


 * (b) Freddie Mac.—
 * Section 306 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455) is amended by adding at the end the following new subsection:


 * (c) Federal Home Loan Banks.—
 * Section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431) is amended by adding at the end the following new subsection:

=== . CONSULTATION BETWEEN THE DIRECTOR OF THE FEDERAL HOUSING FINANCE AGENCY AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM TO ENSURE FINANCIAL MARKET STABILITY. ===


 * Subsection (a) of section 1313 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4513), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new paragraph: