To require the Secretary of the Treasury to conduct a study on ending the conservatorship of Fannie Mae and Freddie Mac, and reforming the housing finance system.

SA 3938. Mr. DODD 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; as follows:

On page 1455, after line 25, insert the following:

SEC. 1077. DEPARTMENT OF THE TREASURY STUDY ON ENDING THE
CONSERVATORSHIP OF FANNIE MAE, FREDDIE MAC, AND
REFORMING THE HOUSING FINANCE SYSTEM.

(a) Study Required.--
(1) In general.--The Secretary of the Treasury shall
conduct a study of and develop recommendations regarding the
options for ending the conservatorship of the Federal
National Mortgage Association (in this section referred to as
``Fannie Mae'') and the Federal Home Loan Mortgage
Corporation (in this section referred to as ``Freddie Mac''),
while minimizing the cost to taxpayers, including such
options as--
(A) the gradual wind-down and liquidation of such entities;
(B) the privatization of such entities;
(C) the incorporation of the functions of such entities
into a Federal agency;
(D) the dissolution of Fannie Mae and Freddie Mac into
smaller companies; or
(E) any other measures the Secretary determines
appropriate.
(2) Analyses.--The study required under paragraph (1) shall
include an analysis of--
(A) the role of the Federal Government in supporting a
stable, well-functioning housing finance system, and whether
and to what extent the Federal Government should bear risks
in meeting Federal housing finance objectives;
(B) how the current structure of the housing finance system
can be improved;
(C) how the housing finance system should support the
continued availability of mortgage credit to all segments of
the market;
(D) how the housing finance system should be structured to
ensure that consumers continue to have access to 30-year,
fixed rate, pre-payable mortgages and other mortgage products
that have simple terms that can be easily understood;
(E) the role of the Federal Housing Administration and the
Department of Veterans Affairs in a future housing system;
(F) the impact of reforms of the housing finance system on
the financing of rental housing;

[[Page S3544]]

(G) the impact of reforms of the housing finance system on
secondary market liquidity;
(H) the role of standardization in the housing finance
system;
(I) how housing finance systems in other countries offer
insights that can help inform options for reform in the
United States; and
(J) the options for transition to a reformed housing
finance system.
(b) Report and Recommendations.--Not later than January 31,
2011, the Secretary of the Treasury shall submit the report
and recommendations required under subsection (a) to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives.
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