Government-Sponsored Housing Enterprises Financial Safety and Soundness Act of 1991

Summary

Government-Sponsored Housing Enterprises Financial Safety and Soundness Act of 1991 - Title I: Supervision and Regulation of FNMA and FHLMC - Subtitle A: Establishment of Financial Safety and Soundness Regulator - Establishes the Office of Secondary Market Examination and Oversight (the Office) within the Department of Housing and Urban Development (HUD), to be managed by a presidentially appointed Director and a Deputy Director. Delineates the Director's scope of exclusive authority, which shall not be subject to the approval of the Secretary of HUD (the Secretary). Authorizes the Director to establish and collect from the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation and their affiliates (the enterprises) charges sufficient to provide for all costs and expenses of the Office of Secondary Market Examination and Oversight, including examination expenses. Establishes in the Treasury the Secondary Market Examination and Oversight Fund (to be funded by such fees and charges) which shall be used to implement this Act and the Director's responsibilities. Requires the Director to submit an annual status report to the Congress, including the financial condition of the enterprises. Subtitle B: Amendments to Other Acts - Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to bring them within the purview of this Act, including: (1) prohibiting, without prior written approval, dividend payments that would decrease the regulatory capital of the enterprises to an amount less than the risk-based capital level established for them under this Act; (2) authorizing the Director to require the enterprises to report before paying any dividend; and (3) requiring the enterprises to establish affordable housing goals according to prescribed guidelines. Subtitle C: Implementation - Directs the Secretary and the Director to promulgate final regulations implementing this Act by a specified deadline. Title II: Required Capital Levels for FNMA and FHLMC And Special Enforcement Powers - Requires the Director to establish risk-based capital levels for each enterprise according to statutory guidelines. Establishes minimum capital levels, critical capital levels, and enforcement levels. Sets forth mandatory supervisory actions for the enterprises at various capital levels, including the mandatory appointment of a conservator, and the contents of capital restoration plans. Subjects the Director's actions to judicial review. Mandates an annual financial condition examination of each enterprise. Sets forth civil money penalties for enterprise failure to report, or the filing of false reports. Title III: Cease and Desist Orders Against FNMA and FHLMC - Outlines the conditions for the issuance of either cease and desist orders or temporary cease and desist orders upon the Director's determination that an enterprise is about to engage in a rapid capital depletion activity. Subjects such orders to judicial review procedures. Authorizes enforcement actions by the Attorney General upon the Director's request. Grants the Director subpoena authority. Title IV: Primary of Financial Safety and Soundness for the Federal Housing Finance Board - Amends the Federal Home Loan Bank Act to declare that the primary duty of the Federal Housing Finance Board is to ensure that the Federal Home Loan Banks operate in a financially safe and sound manner.

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Documents

7 official files

• Reported in House (text)

  Reported in House · EN

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• Referred in Senate (text)

  Referred in Senate · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Engrossed in House (text)

  Engrossed in House · EN

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• Passed House amended

  summary · EN · 25 September 1991

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• Reported to House with amendment(s)

  summary · EN · 17 September 1991

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• Introduced in House

  summary · EN · 16 July 1991

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