Replies to post #294541 on Fannie Mae-No Politics (FNMA)

[WildTwins]

NEW BILL!!! HR 1673

The bill is titled ''Enterprise Secondary Reserve Taxpayer Protection and Government Accountability Act of 2015'' and will be filed as HR 1673.

''(E.) SECONDARY RESERVE.-

''(1) ESTABLISHMENT-Notwithstanding any other provision of law, rule, regulation, order, or agreement, the Director shall, by regulation, establish for any enterprise operating in conservatorship pursuant to section 1367 a secondary reserve fund and shall deposit in such fund from any revenues of the enterprise an amount equal to the amounts enumerated under subsection (A.) for the enterprise.

''(2) MAINTENANCE.-Amounts in the secondary reserve fund shall be held in escrow by the enterprise until-

'' the Director uses such amounts pursuant to paragraph (3); or

''(B.) the Director abolishes the secondary reserve fund pursuant to paragraph (4).

''(3) AVAILABILITY OF AMOUNTS.-If the Director determines, in accordance with regulations issued under paragraph (5), that losses of an enterprise operating in conservatorship pursuant to section 1367 will exceed amounts available for the enterprise under subsections , (C.), (D.), or (F.), the Director shall make a determination, in accordance with such regulation, whether to use funds held in the secondary reserve for the enterprise.

''(4) ABOLISHMENT.-Upon the dissolution of the conservatorship of an enterprise, the Director shall abolish any secondary reserve established under paragraph (1) for the enterprise and amounts remaining in such reserve upon such abolishment shall revert to meet capital requirements under subsections , , , and then to earnings of the enterprise.

It also continues to provide the Federal Housing Finance Agency (FHFA) with the authority to establish a capital restoration plan for the entities.

''(6) TREATMENT OF SECONDARY RESERVE.-

Any secondary reserve established under this Act for an enterprise shall not be considered capital, a capital reserve, or otherwise an asset of the enterprise, other than as part of a capital restoration plan for the enterprise approved under section 1369C, during the pendency of a conservatorship for the enterprise.''