H.R. 1461 - Federal Housing Finance Reform Act of 2005

COMMITTEE ACTION: REPORTED BY A RECORD VOTE OF 7 to 3 on Tuesday, October 25, 2005.
FLOOR ACTION:ADOPTED BY THE YEAS AND NAYS 220-196 AFTER AGREEING TO THE PREVIOUS QUESTION on Tuesday, October 25, 2005
MANAGERS: SESSIONS/MCGOVERN
109th Congress
1st Session

 

H. RES. 509
[Report No. 109-254]

H.R. 1461 - FEDERAL HOUSING FINANCE REFORM ACT OF 2005

1.Structured rule.

2. Provides one hour of general debate equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services.

3. Waives all points of order against consideration of the bill.

4. Provides that the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill shall be considered as an original bill for the purpose of amendment and shall be considered as read.

5. Waives all points of order against the committee amendment in the nature of a substitute.

6. Makes in order only those amendments printed in the Rules Committee report accompanying this resolution.

7. Provides that the amendments made in order may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole.

8. Waives all points of order against the amendments printed in the report.

9. Provides one motion to recommit with or without instructions.

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RESOLUTION

Resolved, That at any time after the adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 1461) to reform the regulation of certain housing-related Government-sponsored enterprises, and for other purposes. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived. General debate shall be confined to the bill and shall not exceed one hour equally divided and controlled by the chairman and ranking minority member of the Committee on Financial Services. After general debate the bill shall be considered for amendment under the five-minute rule. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill. The committee amendment in the nature of a substitute shall be considered as read. All points of order against the committee amendment in the nature of a substitute are waived. Notwithstanding clause 11 of rule XVIII, no amendment to the committee amendment in the nature of a substitute shall be in order except those printed in the report of the Committee on Rules accompanying this resolution. Each such amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole. All points of order against such amendments are waived. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. Any Member may demand a separate vote in the House on any amendment adopted in the Committee of the Whole to the bill or to the committee amendment in the nature of a substitute. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.

SUMMARY OF AMENDMENTS TO BE MADE IN ORDER
(Summary of amendments derived from information provided by the sponsor)

Oxley #16:
Manager's Amendment. Expands the affordable housing role of Fannie Mae and Freddie Mac. Includes new sections on new single-family and multi-family housing goals, duty to serve lower-income markets, and a new affordable housing fund with contributions from the enterprises. The amendment moves the effective date of the entire bill up from one year to six months following enactment, including the affordable housing fund. For the first two years, Fannie Mae and Freddie Mac will contribute 3.5% of after-tax earnings, and subsequently 5% of such earnings. 25% of the GSEs' contributions will go annually to the Treasury Department to help pay off REFCorp (S&L) bonds, with the remainder going to the fund. The amendment sunsets the fund in five years, when its extension will be considered. During the first two years, priority consideration will be given to areas impacted by Hurricanes Katrina and Rita, thereafter priority in funding will be based on greatest impact, geographic diversity, timely action, as well as other disaster area needs. Eligible recipients - for-profit builders, state housing agencies, and non-profit organizations - must have a demonstrated capacity for affordable housing activities and make assurances that they will comply with limits on the use of funds. Funds may not be used for political activities, advocacy, lobbying, counseling services, travel expenses, and tax return advice. Non-profit recipients must have affordable housing as their primary purpose and, beginning one-year before applying, non-profits and their affiliates cannot have engaged in federal election activity, electioneering communication, or lobbying. Recipient use of funds will be closely tracked. Those misusing funds will be permanently barred from participation and must make reimbursement. The amendment also clarifies that federally recognized tribes and Alaskan Native villages qualify for funding under the Affordable Housing Fund established by the bill. In addition, the amendment includes a request from the Judiciary Committee to require consultation with the Attorney General by the GSE regulator when exercising new litigation authority, and from the Government Reform Committee to remove a FOIA exemption for the proceedings of the new agency's oversight board. The Federal Housing Finance Agency will establish an ombudsman to hear complaints and appeals from the GSEs and those having business relationships with the GSEs. H.R. 1461 consolidates current GSE regulation by two agencies and HUD into one agency. The manager's amendment clarifies that existing rules and regulations will remain in force during the six-month transition period and until changed by the new Federal Housing Finance Agency. (20 minutes)

Carson #3:
Permits personal property loans secured by manufactured housing to be considered in determining whether a GSE has met its duty to serve underserved markets. Permits manufactured homes that have not been attached to ground owned by a manufactured home owner to count towards this goal. (10 minutes)

Davis, Artur (AL) #2:
Clarifies the definition of "rural" to make it consistent with the same definition in the Housing Act of 1949. Retains "micro-politan area" and "tribal trust lands" as part of the definition. (10 minutes)

Leach #9:
Gives the newly created regulator (FHFA) greater authority to impose capital strictures on GSEs. (10 minutes)

Royce #15:
Authorizes the regulator to require one or both of the enterprises to dispose or acquire assets or liabilities if the regulator deems those assets or liabilities to be a potential systemic risk to the housing market, the capital markets, or the financial system. (10 minutes)

Paul #1:
Eliminates the ability of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank Board to borrow from the Treasury. (10 minutes)

Garrett #14:
Strikes the language in the bill that raises the Conforming Loan Limit. (10 minutes)

Sanchez, Loretta #19:
Adds "alternative credit scoring" as an additional element to the Annual Housing Report Regarding Regulated Entities (Section 1324). (10 minutes)

Kanjorski #11:
Restores Presidential appointees on the boards of Fannie Mae and Freddie Mac by retaining the regulatory appointees on the boards of the Federal Home Loan Banks. Makes modifications to the boards of the Federal Home Loan Banks related to the number of regulatory appointees, the expertise of appointees in community and economic development, and the allowable continued service of appointees after the expiration of their terms. (10 minutes)

 


TEXT OF THE AMENDMENTS

1.)Oxley #16

2.)Carson #3

3.)Davis, Artur (AL) #2

4.)Leach #9

5.)Royce #15

6.)Paul #1

7.)Garrett #14

8.)Sanchez, Loretta #19

9.) Kanjorski #11