H.R. 1224 (112th): GSE Portfolio Risk Reduction Act of 2011

112th Congress, 2011–2013. Text as of Mar 29, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 1224

IN THE HOUSE OF REPRESENTATIVES

March 29, 2011

(for himself, Mr. Bachus, Mr. Garrett, and Mr. Pearce) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To increase the rate of the required annual reductions of the retained portfolios of Fannie Mae and Freddie Mac.

1.

Short title

This Act may be cited as the GSE Portfolio Risk Reduction Act of 2011.

2.

Portfolio limitations

Subtitle B of title XIII of the Housing and Community Development Act of 1992 (12 U.S.C. 4611 et seq.) is amended by adding at the end the following new section:

1369F.

Restriction on mortgage assets of enterprises

(a)

Restriction

No enterprise shall own, as of any applicable date in this subsection or thereafter, mortgage assets in excess of—

(1)

upon the expiration of the 1-year period that begins upon the enactment of the GSE Portfolio Risk Reduction Act of 2011 or thereafter, $700,000,000,000;

(2)

upon the expiration of the 2-year period that begins upon the enactment of such Act or thereafter, $600,000,000,000;

(3)

upon the expiration of the 3-year period that begins upon the enactment of such Act or thereafter, $475,000,000,000;

(4)

upon the expiration of the 4-year period that begins upon the enactment of such Act or thereafter, $350,000,000,000; and

(5)

upon the expiration of the 5-year period that begins upon the enactment of such Act or thereafter, $250,000,000,000.

(b)

Definition of mortgage assets

For purposes of this section, the term mortgage assets means, with respect to an enterprise, assets of such enterprise consisting of mortgages, mortgage loans, mortgage-related securities, participation certificates, mortgage-backed commercial paper, obligations of real estate mortgage investment conduits and similar assets, in each case to the extent such assets would appear on the balance sheet of such enterprise in accordance with generally accepted accounting principles in effect in the United States as of September 7, 2008 (as set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board from time to time; and without giving any effect to any change that may be made after September 7, 2008, in respect of Statement of Financial Accounting Standards No. 140 or any similar accounting standard).

.