HR 31 - Fannie Mae and Freddie Mac Accountability and Transparency for Taxpayers Act of 2011

HR 31

112th CONGRESS
1st Session

H. R. 31

To require the Inspector General of the Federal Housing Finance Agency to submit quarterly reports to the Congress during the conservatorship of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

IN THE HOUSE OF REPRESENTATIVES

January 5, 2011

Mrs. BIGGERT introduced the following bill; which was referred to the Committee on Financial Services

A BILL

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Fannie Mae and Freddie Mac Accountability and Transparency for Taxpayers Act of 2011'.

SEC. 2. QUARTERLY REPORTS DURING CONSERVATORSHIP.

(a) Reporting Requirement- For each reporting period, the Inspector General of the Federal Housing Finance Agency shall submit to the Congress a report for each enterprise that summarizes the activities of the Inspector General with respect to such enterprise, and the activities and condition of such enterprise, during such reporting period.

(b) Contents- Each report required under this section for an enterprise for a reporting period shall include the following information:

(1) A description, including dollar amount, of total liabilities of the enterprise as of the reporting date, with a detailed breakdown of the potential level of risk to the Federal Government inherent in the dollar amount of each separate type of liability and a quantification as to how the risk to the Federal Government has changed from the previous reporting period, distinguishing between changes attributable to volume and changes attributable to changes in risk levels.

(2) An explanation of, including rationale for, all compensation and bonuses paid to any executive officer (as such term is defined in section 1303 of the Housing and Community Development Act of 1992 (12 U.S.C. 4502)) of the enterprise, and any retention decisions made, by the enterprise during such period regarding its executive officers.

(3) A description of foreclosure mitigation activities of the enterprise during such period, including any related data, a list of law firms and attorneys approved or retained by the enterprise for handling foreclosure and bankruptcy matters relating to mortgages held or securitized by the enterprise, and the eligibility criteria used for such approval or retention and reasons for limiting such list, and the number of mortgage loans held by the enterprise that were refinanced in 2008, 2009, and 2010 through foreclosure mitigation activities of the enterprise that have, during such period, entered into default.

(4) A description of any mortgage fraud prevention activities undertaken by the enterprise during such period and data describing the extent of mortgage fraud during such period, including descriptions of the efforts of the enterprise to prevent or detect mortgage fraud, of the pervasiveness of mortgage fraud, and of the most prevalent types of mortgage fraud detected.

(5) A listing with description of any formal or informal communication between Governors and staff of the Board of Governors of the Federal Reserve System and executives in the enterprise and any formal or informal communication between officials and staff of the Department of the Treasury and the Governors and staff of the Board of Governors of the Federal Reserve System and executives in the enterprise regarding the purchase or sale of any enterprise-related securities.

(6) A description of any investments, holdings, and activities of the enterprise during such period that are not consistent with the mission of the enterprise as provided under Federal law.

(7) A description of the reasons for any equity investments in the enterprise by the Department of the Treasury during such period and any increase during such period in the authorized amount of equity investments by such Department.

(8) An analysis of the capital levels and portfolio size of the enterprise during such period and their impacts on the safety and soundness of the enterprise.

(9) A description and analysis of the underwriting standards of the enterprise applicable during such period, including the criteria for safety and soundness of mortgage loans for single-family, multi-family, and condominium residential homes securitized by the enterprise and the ability of such criteria to ensure such safety and soundness.

(10) An analysis of actions taken by the enterprise that had a beneficial or harmful effect on holders of enterprise-related securities, in particular, preferred stock issued prior to September 6, 2008.

(11) Any other information that the Inspector General considers relevant or important with respect to the enterprise, and the activities and condition of the enterprise.

(1) INITIAL PERIOD- The first reporting period for each enterprise shall be the period that began upon the commencement of the conservatorship period for the enterprise and that ends upon the date of the enactment of this Act. The reports required under this section for such period shall be submitted not later than the expiration of the 60-day period beginning on the date of the enactment of this Act.

(2) QUARTERLY PERIODS- After the first reporting period, the reporting periods for each enterprise shall be each calendar quarter that concludes after the date of the enactment of this Act. Each report for each such reporting period shall be submitted not later than the expiration of the 60-day period beginning upon the conclusion of such reporting period.

(3) RECEIVERSHIP- Notwithstanding paragraph (2), if at any time a receiver is appointed for an enterprise pursuant to section 1367 of the Housing and Community Development Act of 1992 (12 U.S.C. 4617), the reporting periods for the enterprise during such receivership shall be each calendar month (or such shorter period as the Inspector General considers appropriate). Each report for each such reporting period shall be submitted not later than the expiration of the 30-day period beginning upon the conclusion of such reporting period.

(4) NATIONALIZATION- Notwithstanding paragraph (2), if at any time the Federal Government or any agency or entity of the Federal Government obtains control of an enterprise under law or through ownership of voting stock of the enterprise, or the Inspector General determines that the enterprise has otherwise been nationalized, the reporting periods for the enterprise after such nationalization occurs shall be the consecutive 6-month periods (the first such period beginning upon such nationalization (or such shorter period as the Inspector General considers appropriate). Each report for each such reporting period shall be submitted not later than the expiration of the 60-day period beginning upon the conclusion of such reporting period.

(d) Public Availability- The Inspector General shall--

(1) make information regarding the activities of the Inspector General, including each report submitted to the Congress pursuant to this section, available to the public, including through a World Wide Web site of the Federal Housing Finance Agency; and

(2) establish an electronic mail address and a toll-free telephone number, and shall publicize the availability of such address and number, by which the public may report waste, fraud, or abuse by an enterprise.

(e) Definitions- For purposes of this section, the following definitions shall apply:

(1) CONSERVATORSHIP PERIOD- The term `conservatorship period' means, with respect to an enterprise, the period that--

(A) began upon appointment of the Federal Housing Finance Agency as conservator for the enterprise on September 6, 2008, pursuant to section 1367 of the Housing and Community Development Act of 1992 (12 U.S.C. 4617); and

(B) ends upon the termination of such conservatorship of the enterprise.

(2) INSPECTOR GENERAL- The term `Inspector General' means the Inspector General of the Federal Housing Finance Agency, appointed pursuant to section 1317(d) of the Housing and Community Development Act of 1992 (12 U.S.C. 4517).

(3) ENTERPRISE- The term `enterprise' means the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

(4) REPORTING PERIOD- The term `reporting period' means a period described in paragraph (1), (2), (3), or (4) of subsection (c).

SEC. 3. INSPECTOR GENERAL OF THE FEDERAL HOUSING FINANCE AGENCY.

Section 1317 of the Housing and Community Development Act of 1992 (12 U.S.C. 4517) is amended by striking subsection (d) and inserting the following new subsection:

`(d) Inspector General-

`(1) APPOINTMENT- There shall be within the Agency an Inspector General, who shall be appointed in accordance with section 3(a) of the Inspector General Act of 1978.

`(2) DIRECT HIRE AUTHORITY-

`(A) APPOINTMENT AUTHORITY- Subject to subparagraph (B), the Inspector General of the Agency may appoint candidates to any position in Office of the Inspector General of the Agency--

`(i) in accordance with the statutes, rules, and regulations governing appointments in the excepted service; and

`(ii) notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.

`(B) APPLICABILITY- Subparagraph (A) shall apply with respect to any position within the Office of the Inspector General of the Agency, and the authority under such subparagraph shall be effective only during the 12-month period beginning upon the enactment of the Fannie Mae and Freddie Mac Accountability and Transparency for Taxpayers Act of 2011.

`(C) DUAL COMPENSATION WAIVER AUTHORITY-

`(i) WAIVER AUTHORITY- Subject to subparagraph (B) and notwithstanding section 8468 of title 5, United States Code, or any other statute, rule, or regulation prescribing the termination of retirement annuities or the offset of such annuities for annuitants who are re-employed by the Federal Government, if an annuitant receiving an annuity from the Civil Service Retirement and Disability Fund becomes employed in a position within the Office of the Inspector General of the Agency, the annuity of such annuitant shall continue without termination or offset. An annuitant so reemployed shall not be considered an employee for purposes of chapter 83 or 84 of title 5, United States Code.

`(ii) APPLICABILITY- Subparagraph (A) shall apply with respect to any position within the Office of the Inspector General of the Agency, and the authority under such subparagraph shall be effective only during the 36-month period beginning upon the enactment of the Fannie Mae and Freddie Mac Accountability and Transparency for Taxpayers Act of 2011.

`(3) LAW ENFORCEMENT AUTHORITY- The Office of the Inspector General of the Agency shall be treated as an office included under section 6(e)(3) of the Inspector General Act of 1978 (5 U.S.C. App.), relating to the exemption from the initial determination of eligibility by the Attorney General.'.

END