H.R. 2440 (112th): Market Transparency and Taxpayer Protection Act of 2011

112th Congress, 2011–2013. Text as of Jul 07, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 2440

IN THE HOUSE OF REPRESENTATIVES

July 7, 2011

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

A BILL

To protect the taxpayers of the United States by requiring Fannie Mae and Freddie Mac to sell or dispose of the assets of such enterprises that are not critical to their missions.

1.

Short title

This Act may be cited as the Market Transparency and Taxpayer Protection Act of 2011.

2.

Disposition of non-mission critical assets

(a)

Enterprise reports to Director

The Director of the Federal Housing Finance Agency shall require each enterprise to submit a report to the Director, not later than the expiration of the 180-day period beginning upon the date of the enactment of this Act, that—

(1)

identifies all assets of value of the enterprise; and

(2)

describes the functions, characteristics, and estimated value of each such asset.

(b)

Determination of non-Mission critical assets

(1)

In general

After reviewing the report submitted by an enterprise pursuant to subsection (a), the Director shall make a determination of which assets of such enterprise are critical, and which are not critical, to carrying out the mission of the enterprise in accordance with the charter Act for the enterprise and other applicable laws.

(2)

Patents and historical mortgage data

The determinations under paragraph (1) shall include determinations with regard to any patents and historical mortgage data of the enterprise.

(c)

Annual plans

(1)

Establishment

Not later than the expiration of the 12- and 24-month periods beginning upon the date of the enactment of this Act, the Director shall establish a plan for each enterprise for sale or other disposition, during the annual plan period for each such plan, of assets of such enterprise that the Director has determined, pursuant to subsection (b), to be non-mission critical assets of such enterprise in a manner that complies with the requirements under subsection (d) (relating to implementation, commencement, and divestment).

(2)

Contents

Each plan required under paragraph (1) for an enterprise shall—

(A)

identify the non-mission critical assets of the enterprise to be sold or otherwise disposed of during the annual plan period;

(B)

specifically address whether and how patents and historical mortgage data of the enterprise that are non-mission critical assets should be sold or disposed of during the annual plan period, which may include making such assets available in the public domain;

(C)

provide for any sales or other dispositions to be conducted in accordance with section 1367(b)(11)(E) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4617(b)(11)(E)); and

(D)

include any other information as the Director considers appropriate.

(d)

Implementation

(1)

Commencement

Not later than the expiration of the 90-day period beginning upon establishment of each annual plan pursuant to subsection (c), the Director shall commence implementation of such plan.

(2)

Divestment of all non-mission critical assets

The Director shall prohibit each enterprise from owning or holding, after the expiration of the 36-month period beginning upon the date of the enactment of this Act, any asset that the Director has determined, pursuant to subsection (b), to be a non-mission critical asset of such enterprise.

(e)

Annual reports to Congress

Not later than 90 days after the conclusion of the annual plan period for each annual plan for an enterprise required by subsection (c), the Director shall submit to the Congress a report on the non-mission critical assets of such enterprise that were sold or otherwise disposed of pursuant to such annual plan.

(f)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Annual plan period

The term annual plan period means, with respect to an annual plan established pursuant to subsection (c) for an enterprise, the 12-month period that begins upon establishment of the annual plan.

(2)

Charter Act

The term charter Act means—

(A)

with respect to the Federal National Mortgage Association, the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); and

(B)

with respect to the Federal Home Loan Mortgage Corporation, the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.).

(3)

Director

The term Director means the Director of the Federal Housing Finance Agency.

(4)

Enterprise

The term enterprise has the meaning given such term in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502).

(5)

Non-mission critical assets

The term non-mission critical asset means, with respect to an enterprise, an asset of the enterprise that the Director determines, pursuant to subsection (b), is not critical to carrying out the mission of the enterprise in accordance with the charter Act for the enterprise and other applicable laws.