To limit further bailouts of Fannie Mae and Freddie Mac, to enhance the regulation and oversight of such enterprises, and for other purposes.

SA 4020. Mr. CRAPO (for himself, Mr. Gregg, Mr. Shelby, Mr. McCain,
Mr. Vitter, Mrs. Hutchison, and Mr. Corker) submitted an amendment
intended to be proposed by him 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:

At the end of the bill, add the following:

TITLE XIII--FANNIE MAE AND FREDDIE MAC

Subtitle A--Ending Bailouts

SEC. 1311. SHORT TITLE.

This subtitle may be cited as the ``Ending Bailouts of
Fannie Mae and Freddie Mac Act''.

SEC. 1312. REESTABLISHING THE MAXIMUM AGGREGATE AMOUNT
PERMITTED TO BE PROVIDED BY THE TAXPAYERS 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 at the end the following new
subparagraph:
``(L) Reestablishment of taxpayer funding caps.--The
Agency, as conservator, shall prevent a regulated entity from
requesting or receiving any funds from the United States
Department of the Treasury, as part of 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 State
Department of the Treasury and the Federal Home Loan Mortgage
Corporation, or the Federal National Mortgage Association,
that exceeds a maximum aggregate amount of
$200,000,000,000.''.

SEC. 1313. 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

[[Page S3733]]

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.''.

SEC. 1314. ENSURING CONGRESSIONAL REVIEW FOR AGREEMENTS
INCREASING TAXPAYER RISK.

Section 1367(b)(2) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C.
4617(b)(2)), as amended by sections 1203 and 1204, is further
amended by adding at the end the following new subparagraph:
``(N) Agreements.--
``(i) In general.--The Agency, as conservator or receiver,
may enter into agreements that are consistent with its
appointment as conservator or receiver with the regulated
entity and that expire prior to, or upon, the regulated
entity's emergence from conservatorship or receivership
provided--

``(I) the agreement does not expose the United States
taxpayers to additional risk; and
``(II) the agreement was approved by Congress pursuant to
clause (ii).

``(ii) Procedure for congressional approval.--

``(I) In general.--Notwithstanding clause (i), the Agency
may enter into, on an interim basis, an agreement, even if
the agreement exposes the taxpayer to additional risk,
including if such agreement exceeds the limitations
established under subparagraphs (L) and (M), if such an
agreement--

``(aa) is deemed necessary by the Agency, based upon the
Agency's duties as conservator or receiver; and
``(bb) is approved by Congress through adoption of a
concurrent resolution of approval, not more than 120 days
after the later of--
``(AA) the signing of the agreement; or
``(BB) the date of enactment of the Ending Bailouts of
Fannie Mae and Freddie Mac Act.

``(II) Required submissions for congressional review.--
During the 120-day period described under subclause (I), the
Director shall submit to Congress--

``(aa) the text of the agreement;
``(bb) a certification and justification of how the
agreement is consistent with the Agency's duties as
conservator or receiver;
``(cc) budgetary projections demonstrating the cost to the
taxpayer in a 1, 5, and 10-year window;
``(dd) independent risk analysis from the Government
Accountability Office of the agreement, considering the risk
to the short and long-term viability of the regulated entity
and the United States taxpayer;
``(ee) a time table for the expiration of the agreement;
``(ff) a list and description of assets included within
each enterprises portfolio, including gross size of each
enterprises portfolio and a detailed explanation of the
components;
``(gg) the prices that each enterprise is paying on
delinquent mortgages, and what mechanism is being applied to
protect the United States taxpayer;
``(hh) a list and description of risk management practices
by each enterprise to protect United States taxpayer dollars,
and the differences between each enterprises practices in
such regard, including whether there are any investigations
into the accounting practices of either enterprise;
``(ii) a list and description of any interaction between
the Department of the Treasury and the mortgage portfolio of
any other Government entity and its effect on each
enterprise;
``(jj) an updated disclosure of any taxpayer funds provided
for and at risk to each enterprise from the Department of the
Treasury; and
``(kk) an updated disclosure of the debt activity by each
enterprise and the sensitivity to any interest rate changes.
``(iii) Testimony required if funding limitation
exceeded.--The Director shall report to and testify before
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives if either the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association
requests amounts from the Director in excess of the
limitation established under subparagraphs (L) and (M).''.

SEC. 1315. CONGRESSIONAL TESTIMONY.

The Director of the Federal Housing Finance Agency and the
Secretary shall report to and testify before the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives each time that $10,000,000,000 of funds are
expended pursuant to the Amended and Restated Senior
Preferred Stock Purchase Agreements, dated September 26,
2008, as amended May 6, 2009. The testimony required under
this section shall include the reasons why such additional
expenditure of taxpayer funds is necessary.

SEC. 1316. INTERNET POSTING BY THE SECRETARY.

The Secretary shall post, on the front page of the website
of the Department of the Treasury--
(1) the aggregate portfolio holdings of each enterprise;
and
(2) a weekly summary of taxpayer funds provided for and at
risk to each enterprise, based on any interest rate changes.

Subtitle B--Fannie Mae and Freddie Mac in the Federal Budget

SEC. 1321. ON-BUDGET STATUS OF FANNIE MAE AND FREDDIE MAC.

(a) In General.--Notwithstanding any other provision of
law, the receipts and disbursements, including the
administrative expenses, of the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation
shall be counted as new budget authority, outlays, receipts,
or deficit or surplus for purposes of--
(1) the Budget of the United States Government as submitted
by the President;
(2) the congressional budget;
(3) the Statutory Pay-As-You-Go Act of 2010; and
(4) the Balanced Budget and Emergency Deficit Control Act
of 1985 (or any successor statute).
(b) Expiration.--The budgetary treatment of the Federal
National Mortgage Association or Federal Home Loan Mortgage
Corporation or any functional replacements under subsection
(a) shall continue with respect to such entities until such
entities are no longer under Federal conservatorship or
receivership as authorized by the Housing and Economic
Recovery Act of 2008 (Public Law 110-289) or any successor
statute.

SEC. 1322. BUDGETARY TREATMENT OF FANNIE MAE AND FREDDIE MAC.

All costs to the Government of the activities of or under
the Federal National Mortgage Association, Federal Home Loan
Mortgage Corporation and any functional replacements or any
modification of such entities shall be determined on a fair
value basis.

SEC. 1323. FANNIE MAE AND FREDDIE MAC DEBT SUBJECT TO PUBLIC
DEBT LIMIT.

(a) In General.--For purposes of section 3101(b) of chapter
31 of title 31, United States Code, the face amount of
obligations issued by the Federal National Mortgage
Association and by the Federal Home Loan Mortgage Corporation
or any functional replacements and outstanding shall be
treated as issued by the United States Government under that
section.
(b) Temporary Increase in the Public Debt Limit.--The limit
on the obligation in section 3101(b) of title 31, United
States Code, shall be increased by the face amount of
obligations issued by the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation
and outstanding on April 15, 2010.
(c) Expiration.--
(1) Obligations.--The obligations of Federal National
Mortgage Association or Federal Home Loan Mortgage
Corporation or any functional replacements shall continue to
be treated as issued by the United States Government with
respect to such entities until such entities no longer have
in place an agreement with the Secretary of the Treasury for
the purchase of obligations and securities authorized by the
Housing and Economic Recovery Act of 2008 (Public Law 110-
289) or any successor statute.
(2) Debt limit.--Any temporary increase in the public debt
limit authorized in subsection (b) with respect to the
obligations of Federal National Mortgage Association or
Federal Home Loan Mortgage Corporation shall be reversed with
respect to such entities when Federal National Mortgage
Association or Federal Home Loan Mortgage Corporation or any
functional replacements no longer have in place an agreement
with the Secretary of the Treasury for the purchase of
obligations and securities authorized by the Housing and
Economic Recovery Act of 2008 (Public Law 110-289) or any
successor statute.

SEC. 1324. DEFINITIONS.

In this subtitle, the following definitions shall apply:
(1) Fair value.--The term ``fair value'' shall have the
same meaning as the definition of fair value outlined in
Financial Accounting Standards No. 157, or any successor
thereto, issued by the Financial Accounting Standards Board.
(2) Functional replacements.--The term ``functional
replacements'' means any organization, agreement, or other
arrangement that would perform the public functions of
Federal National Mortgage Association or Federal Home Loan
Mortgage Corporation.
(3) Modification.--
(A) In general.--The term ``modification'' means any
government action that alters the estimated fair value of the
activities of the Federal National Mortgage Association or
Federal Home Loan Mortgage Corporation or any functional
replacements.
(B) Cost.--The cost of a modification is the difference
between the current estimate of the fair value of the
activities of the Federal National Mortgage Association or
Federal Home Loan Mortgage Corporation or any functional
replacements and the estimate of the fair value of such
activities as modified.
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