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HR 1182 112th Congress House Housing and Community Development Bankruptcy Business investment and capital Congressional oversight Corporate finance and management Government corporations and government-sponsored enterprises Government lending and loan guarantees Government studies and investigations Government trust funds Housing finance and home ownership Interest, dividends, interest rates Securities State and local taxation User charges and fees

GSE Bailout Elimination and Taxpayer Protection Act

Introduced: March 17, 2011 See on congress.gov
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 4, 2011
Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
Mar 17, 2011
Referred to the House Committee on Financial Services.
Mar 17, 2011
Introduced in House
 Plain-English summary Congressional Research Service

GSE Bailout Elimination and Taxpayer Protection Act - Sets a deadline for the Director of the Federal Housing Finance Agency (FHFA) to terminate the conservatorship of either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) if the Director determines that it is financially viable. (Refers to both Fannie Mae and Freddie Mac as enterprises [government-sponsored enterprises, or GSEs].)

Requires the Director to appoint the FHFA immediately as receiver of either enterprise if it is found not to be financially viable.

Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (FHEFSSA) to repeal: (1) its housing goals, and (2) the housing trust fund.

Amends the Housing and Community Development Act of 1992 to restrict the authority of an enterprise to acquire mortgage assets following its emergence from conservatorship.

Repeals certain temporary, general, and permanent high-cost area increases to conforming loan limits.

Establishes new conforming loan limits.

Amends FHEFSSA to require the Director to require each enterprise to charge a guarantee fee, in connection with any mortrgage guaranteed after a specified three-year period, in an amount equivalent to that which the enterprise would charge if it were held to the same capital standards as private banks or financial institutions.

Amends the Federal National Mortgage Association Charter Act (FNMACA) and the Federal Home Loan Mortgage Corporation Act (FHLMCA) to prohibit reduction in the rate of dividends paid on each enterprise's Variable Liquidation Preference Senior Preferred Stock.

Amends FHEFSSA to require the Director to establish minimum levels of capital for the enterprises, including levels in excess of such minimums as necessary or appropriate in light of an enterprise's particular circumstances. Authorizes the Director to deem failure of an enterprise to maintain revised minimum capital levels to constitute an unsafe and unsound condition.

Amends FNMACA and FHLMCA to: (1) prohibit the enterprises from purchasing mortgages if the mortgagor has paid less than the specified minimum downpayment; and (2) require the enterprises to pay state and local taxes.

Repeals the exemption of mortgage-backed securities and subordinate obligations of Fannie Mae, as well as mortgage-backed securities of Freddie Mac, from regulation by the Securities and Exchange Commission (SEC), thus subjecting such securities and obligations to SEC regulation.

Prescribes a deadline and procedures for the wind down of operations and dissolution of an enterprise three years after enactment of this Act.

What's happening now April 4, 2011

Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.

 Committees of jurisdiction 2