S.Amdt. 3850

SA 3850. Mr. VITTER submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail'', to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

On page 43, insert between lines 6 and 7, insert the
following:
(3) Applicability to fannie mae and freddie mac.--
Notwithstanding any other provision of law, the provisions of
subsections (b) and (f) shall apply with respect to the
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation in the same manner and to the same
extent as those provisions apply to nonbank financial
companies supervised by the Board of Governors and large,
interconnected bank holding companies.
At the end of title II, add the following new section and
designate accordingly:
Sec. __.: Applicability to fannie mae and freddie mac.--
Notwithstanding any other provision of law, this title shall
apply with respect to the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation in
the same manner and to the same extent as those provisions
apply to nonbank financial companies supervised by the Board
of Governors and large, interconnected bank holding
companies.
At the end of subtitle A of title I, add the following:

SEC. 122. ENHANCED TAXPAYER PROTECTION FROM FANNIE MAE AND
FREDDIE MAC.

(a) Reestablishing the Maximum Taxpayer Exposure to Fannie
Mae and Freddie Mac.-- Section 1367(b)(2) of the Federal
Housing Enterprises Financial Safety and Soundness Act of
1992 (12 U.S.C. 4617(b)(2)) is amended by adding the
following new subparagraph:
``(L) Limitation on certain funding.--The Agency, as
conservator, shall prohibit the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association from
receiving more than $200,000,000,000 through the Amended and
Restated Senior Preferred Stock Purchase Agreement, dated as
of September 26, 2008, amended May 6, 2009, and further
amended December 24, 2009, between the United States
Department of the Treasury and the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association.''.
(b) Reestablishing Scheduled Reduction of Mortgage Assets
Owned by Fannie Mae and Freddie Mac.--Section 1367(b)(2) of
the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4617(b)(2)) is amended by
adding at the end the following new subparagraph:
``(M) Reduction of owned mortgage assets.--
``(i) In general.--The Agency, as conservator, shall ensure
that a regulated entity does not own, as of any applicable
date, mortgage assets in excess of 90.0 percent of the
aggregate amount of mortgage assets that the regulated entity
owned on December 31 of each of the previous year, provided,
that in no event shall the regulated entity be required under
this subparagraph to own less than $250,000,000,000 in
mortgage assets.
``(ii) Definition of mortgage assets.--For purposes of this
subparagraph, the term `mortgage assets' means with respect
to a regulated entity, assets of such entity consisting of
mortgages, mortgage loans, mortgage-related securities,
participation certificates, mortgage-backed commercial paper,
obligations of real estate mortgage investment conduits and
similar assets, in each case to the extent such assets would
appear on the balance sheet of such entity in accordance with
generally accepted accounting principles.''.
(c) Affordable Housing Goals.--
Repeal.--The Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 is amended by striking sections
1331 through 1336 (12 U.S.C. 4561-6).
(2) Conforming amendments.--Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 is amended--
(A) in section 1303(28) (12 U.S.C. 4502(28)), by striking
``and, for the purposes'' and all that follows through
``designated disaster areas'';
(B) in section 1324(b)(1)(A) (12 U.S.C. 4544(b)(1)(A))--
(i) by striking clauses (i), (ii), and (iv);
(ii) in clause (iii), by inserting ``and'' after the
semicolon at the end; and
(iii) by redesignating clauses (iii) and (v) as clauses (i)
and (ii), respectively;
(C) in section 1338(c)(10) (12 U.S.C. 4568(c)(10)), by
striking subparagraph (E);
(D) in section 1339(h) (12 U.S.C. 4569), by striking
paragraph (7);
(E) in section 1341 (12 U.S.C. 4581)--
(i) in subsection (a)--
(I) in paragraph (1), by inserting ``or'' after the
semicolon at the end;
(II) in paragraph (2), by striking the semicolon at the end
and inserting a period; and
(III) by striking paragraphs (3) and (4); and
(ii) in subsection (b)(2)--
(I) in subparagraph (A), by inserting ``or'' after the
semicolon at the end;
(II) by striking subparagraphs (B) and (C); and
(III) by redesignating subparagraph (D) as subparagraph
(B);
(F) in section 1345(a) (12 U.S.C. 4585(a))--
(i) in paragraph (1), by inserting ``or'' after the
semicolon at the end;
(ii) in paragraph (2), by striking the semicolon at the end
and inserting a period; and
(iii) by striking paragraphs (3) and (4); and
(G) in section 1371(a)(2) (12 U.S.C. 4631(a)(2))--
(i) by striking ``with any housing goal established under
subpart B of part 2 of subtitle A of this title,''; and
(ii) by striking ``section 1336 or''.
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