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S. 693 112th Congress Senate

GSE Bailout Elimination and Taxpayer Protection Act

Official title: A bill to establish a term certain for the conservatorships of Fannie Mae and Freddie Mac, to provide conditions for continued operation of such enterprises, a… Show full official titleShow less

Official title: A bill to establish a term certain for the conservatorships of Fannie Mae and Freddie Mac, to provide conditions for continued operation of such enterprises, and to provide for the wind down of such operations and dissolution of such enterprises.

Introduced: September 15, 2011 See on congress.gov
Housing and Community Development BankruptcyBusiness investment and capitalCongressional oversightCorporate finance and management
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Government corporations and government-sponsored enterprisesGovernment lending and loan guaranteesGovernment studies and investigationsGovernment trust fundsHousing finance and home ownershipInterest, dividends, interest ratesSecuritiesState and local taxationUser charges and fees
This bill died when the 112th Congress ended
It never became law before the 112th Congress (2011–2012) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 31, 2011
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Mar 31, 2011
Introduced in Senate
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 Latest action March 31, 2011

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 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.

 Related & companion bills 4
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
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APA
U.S. Congress. (2026). S. 693: GSE Bailout Elimination and Taxpayer Protection Act. 112th Congress. Open America. https://openamerica.io/bill/112-S-693/
MLA
"S. 693: GSE Bailout Elimination and Taxpayer Protection Act." 112th Congress, 2026, Open America, https://openamerica.io/bill/112-S-693/.
Bluebook (legal)
S. 693, 112th Cong. (2026), https://openamerica.io/bill/112-S-693/.
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[S. 693: GSE Bailout Elimination and Taxpayer Protection Act](https://openamerica.io/bill/112-S-693/)
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