[House Report 111-3]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-3
======================================================================
PROVIDING FOR FURTHER CONSIDERATION OF THE BILL (H.R. 384) TO REFORM
THE TROUBLED ASSETS RELIEF PROGRAM OF THE SECRETARY OF THE TREASURY AND
ENSURE ACCOUNTABILITY UNDER SUCH PROGRAM, AND FOR OTHER PURPOSES
_______
January 14, 2009.--Referred to the House Calendar and ordered to be
printed
_______
Mr. McGovern, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 62]
The Committee on Rules, having had under consideration
House Resolution 62, by a non-record vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for further consideration of H.R.
384, the TARP Reform and Accountability Act of 2009, under a
structured rule. No further general debate shall be in order.
The resolution provides that the bill shall be considered as
read. The resolution waives all points of order against
provisions in the bill. This waiver does not affect the point
of order available under clause 9 of rule XXI (regarding
earmark disclosure).
The resolution makes in order only those amendments printed
in this report. The amendments made in order may be offered
only in the order printed in this report, may be offered only
by a Member designated in this report, shall be considered as
read, shall be debatable for the time specified in this 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 a division of the question in the House
or in the Committee of the Whole. All points of order against
the amendments except for clauses 9 and 10 of rule XXI are
waived. The rule provides one motion to recommit with or
without instructions. The resolution provides a motion to
proceed under section 115 of the Emergency Economic
Stabilization Act if offered by the Majority Leader or his
designee which may be offered not later than the legislative
day of January 22, 2009.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
provisions in the bill, the committee is not aware of any
waivers. The waiver of all points of order is prophylactic.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 2
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide the
appropriate waivers for amendment #29 by Rep. Dent that would
require Congressional approval for release of the remaining
TARP funds after the President submits a request.
Results: Defeated 2-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 3
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Mr. Dreier
Summary of motion: To make in order and provide the
appropriate waivers for amendment #6 by Rep. Price (GA) that
would permanently suspend the HOPE for Homeowners program if,
after a 30-day period, the Comptroller General of the United
States determines the number of successfully modified mortgages
within the period was less than 140,000.
Results: Defeated 2-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 4
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Mr. Dreier.
Summary of motion: To make in order en bloc and provide the
appropriate waivers for an amendment in the nature of a
substitute #15 by Rep. Gohmert that would establish a two-month
period suspending federal income tax based on wages earned for
services performed and FICA withholding, and the amendment #23
by Rep. Gingrey that would require that 30% of the remaining
TARP funds be dedicated to assisting smaller, local community
financial institutions, or otherwise would prevent the release
of the remaining funds.
Results: Defeated 2-9
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 5
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Ms. Foxx.
Summary of motion: To make in order and provide the
appropriate waivers for amendment #44 by Rep. DeFazio that
would revise the release of the remaining $350 billion in TARP
funds in three tranches: $125 billion immediately, $50 billion
with Presidential request to Congress, and $175 billion with a
Presidential report sent to Congress unless within 15 days a
joint resolution of disapproval is enacted.
Results: Defeated 2-9
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 6
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Mrs. Foxx.
Summary of motion: To make in order and provide the
appropriate waivers for amendment #70 by Rep. Inslee that would
designate $5 billion of TARP funds for renewable energy
companies that have been heavily impacted by the economic
downturn.
Results: Defeated 2-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 7
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Mrs. Foxx.
Summary of motion: To make in order and provide the
appropriate waivers for amendment #57 by Rep. Hinchey that
would require that GAO conduct a study that determines the
causes of the financial crisis, require that no TARP funds be
used by Treasury until the report has been issued and Treasury
issues an overall strategy and timeline for implementing
recommendations by GAO with the goal of financial stability and
the well-being of taxpayers.
Results: Defeated 2-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 8
Date: January 14, 2009.
Measure: H.R. 384.
Motion by: Mrs. Foxx.
Summary of motion: To make in order and provide appropriate
waivers for amendment #67 by Rep. Kaptur that would suspend the
expenditure current remaining funds and the release of the
final $350 billion of TARP funds until the Congressional
Oversight Panel has forensically accounted for each dollar of
the initial $350 billion, and has examined the effect of TARP
and Federal Reserve policies on the economy.
Results: Defeated 2-9.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay;
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.
SUMMARY OF AMENDMENTS MADE IN ORDER
(Summaries derived from information provided by sponsors.)
1. Frank (MA): Clarifies that the agreements on use of TARP
funds do not apply to the small community institutions
designated in Section 105; clarifies that the agreements on use
of TARP assistance apply after date of enactment; requires
protection of renters living in properties for which
foreclosure proceedings have begun; clarifies that Treasury
must permit insured depositories that are TARP recipients to
repay any assistance provided without regard to replacement of
the funds; strikes provision requiring divestiture of private
passenger aircraft and leases; clarifies that the Secretary may
apply new executive compensation restrictions retroactively to
institutions that have already received TARP assistance;
clarifies that the warrant requirements for new TARP assistance
shall be in an amount at least equal to 15% of the aggregate
amount of the assistance; clarifies that the Secretary shall
take actions to make TARP available to smaller community
financial institutions, including those that are privately
held; requires reporting, data collection, and analysis of use
of TARP funds by participants and establishment of an online
publicly available database; requires the OCC and the OTS to
collect and report to Congress mortgage modification data;
requires the Secretary to facilitate auctions of troubled
assets by institutions to third-party purchasers; requires that
the Secretary, within 7 days of enactment, commit at least $100
billion, but in no case less than $40 billion, to foreclosure
mitigation efforts. At least $20 billion must be dedicated to
the systematic foreclosure mitigation plan described in section
205; clarifies authority of Treasury Secretary to assist
consumer, automobile fleet, commercial real estate, commercial,
small business, farm, minority and disadvantaged businesses,
and debtor-in-possession financing loans; adds term ``below
market'' to describe the interest rates to be achieved under
the home buyer stimulus program, including for the Hope for
Homeowners program; imposes new requirements and reporting on
Treasury and recipients of TARP assistance regarding inclusion
of minorities and women; adds a new Title VIII requiring new
reporting on guarantees made to Citigroup; and adds a new Title
IX requiring a GAO study of the financial crisis and Treasury
strategy for implementing GAO recommendations. (40 Minutes)
2. Matsui (CA): Would provide a sense of Congress stating
that TARP participants, who receive from future TARP funds,
should not initiate a foreclosure proceeding or foreclosure
sale on any principal homeowner until the new systematic loan
modification plan is implemented and deemed fully operational
by the Secretary and Chair of FDIC. (10 Minutes)
3. Hensarling (TX): Would remove the Secretary's authority
to delegate an observer to attend meetings of the board of
directors of any assisted institution. (10 Minutes)
4. Holt (NJ): Would amend the EESA to require that,
provided TARP funds are not used for their purchase, the
Secretary shall facilitate an auction of troubled assets by
third party purchases and, if such auction does not take place
within 3 months from enactment, the Secretary must report to
Congress on the mechanism the Secretary deems best to use to
value and liquidate such assets. (10 Minutes)
5. Bachmann (MN): Would remove the authority of the
Secretary, under TARP, to assist in financing and restructuring
the domestic vehicle manufacturers in the United States. (10
Minutes)
6. Bachmann (MN): Would eliminate changes and additional
funding for the HOPE for Homeowners program. (10 Minutes)
7. Murphy, Patrick (PA): Would require the Federal Reserve
to disclose detailed information regarding the Federal
Reserve's Mortgage-Backed Securities purchase program. (10
Minutes)
8. Myrick (NC): Would prohibit TARP fund recipients from
outsourcing new customer service or call center jobs to foreign
companies. (10 Minutes)
9. Walz (MN): Would require that any assisted institution
publicly report, not less than quarterly, on the institution's
use of the assistance, and would require the Treasury to make
those reports readily available online. (10 Minutes)
10. Flake (AZ): Would clarify that the TARP Special
Inspector General has oversight power over any actions taken by
Treasury under this legislation that he deems appropriate, with
certain exceptions. (10 Minutes)
11. Hinchey (NY): Would require Treasury to immediately
obtain information from recipients of TARP funds and their
precise use of funds allocated prior to January 1, 2009, and
require the Treasury to conduct an analysis of the use of those
funds within 30 days of enactment. (10 Minutes)
TEXT OF AMENDMENTS MADE IN ORDER
1. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 40 minutes
Page 3, line 16, after the period insert the following:
``Such reporting may be required directly for nondepository
institutions or through the appropriate Federal banking agency,
as provided in section 103.''.
Page 4, line 15, strike ``As'' and insert ``Except as
provided in section 105, as''.
Page 4, line 18, before the second comma insert ``made after
the date of the enactment of the TARP Reform and Accountability
Act of 2009''.
Page 5, line 1, strike ``funding'' and insert ``assistance''.
Page 5, line 10, strike ``funds'' and insert ``assistance''.
Page 6, line 23, strike ``funds'' and insert ``assistance''.
Page 7, after line 11, insert the following:
(4) Renter protection.--In the case of any
foreclosure on any dwelling or residential real
property securing an extension of credit made under a
contract entered into after the date of the enactment
of this Act, any successor in interest in such property
pursuant to the foreclosure shall assume such interest
subject to--
(A) the provision, by the successor in
interest, of a notice to vacate to any bona
fide tenant at least 90 days before the
effective date of the notice to vacate; and
(B) the rights of any bona fide tenant, as of
the date of such notice of foreclosure--
(i) under any bona fide lease entered
into before the notice of foreclosure
to occupy the premises until the end of
the remaining term of the lease or the
end of the 6-month period beginning on
the date of the notice of foreclosure,
whichever occurs first, subject to the
receipt by the tenant of the 90-day
notice under subparagraph (A); or
(ii) without a lease or with a lease
terminable at will under State law,
subject to the receipt by the tenant of
the 90-day notice under subparagraph
(A).
(5) Bona fide lease or tenancy.--For purposes of this
paragraph (1), a lease or tenancy shall be considered
bona fide only if--
(A) the mortgagor under the contract is not
the tenant;
(B) the lease or tenancy was the result of an
arms-length transaction; or
(C) the lease or tenancy requires the receipt
of rent that is not substantially less than
fair market rent for the property.
Page 7, line 14, strike ``may permit an'' and insert ``shall
permit an assisted''.
Page 7, line 18, before the first period insert the
following: ``, and when such assistance is repaid, the
Secretary shall liquidate warrants associated with such
assistance at the current market price''.
Page 8, line 6, strike ``means'' and insert ``mean''.
Page 8, strike lines 19 through 21 and insert the following:
``(1) Standards required.--Notwithstanding any''.
Page 8, line 25, strike ``assisted institution'' and insert
``institution that became an assisted institution after the
date of the enactment of the TARP Reform and Accountability Act
of 2009''.
Page 9, lines 6 through 8, strike ``an assisted institution
which received assistance under this title'' and insert ``such
institution''.
Page 10, strike lines 5 through 16.
Page 10, line 17, strike ``(4)'' and insert ``(3)''.
Page 10, line 23, strike ``on or after'' and insert
``before''.
Page 12, line 24, before the first period, insert ``, and
shall require such reports to be provided to the appropriate
State bank supervisor (as defined in section 3 of the Federal
Deposit Insurance Act)''.
Page 13, line 4 and 5, strike ``striking paragraph (1) and
inserting'' and inserting ``adding at the end''.
Strike line 6 on page 13 and all that follows through page
16, line 18, and insert the following:
``(4) Amount.--For assistance provided after the date
of the enactment of the TARP Reform and Accountability
Act of 2009, and except as provided in title III of
such Act, the warrants or instruments described in this
section shall have a value at least equal to 15 percent
of the aggregate amount of such assistance.''.
Strike line 23 on page 16 and all that follows through page
17, line 2.
Page 17, line 6, strike ``make available funds'' and insert
``provide assistance''.
Page 17, line 8, before the period insert ``, including such
institutions that are privately held''.
Page 17, strike lines 9 through 12 and insert the following:
(b) Comparable Terms.--An institution that receives
assistance after the date of the enactment of the TARP Reform
and Accountability Act of 2009, shall do so on terms comparable
to the terms applicable to institutions that received
assistance prior to the date of the enactment of such Act of
2009: Provided, That the institution--
Page 17, line 13, strike ``have submitted applications'' and
inserting ``has submitted an application''.
Page 17, line 18, strike ``are'' and insert ``is''.
Page 17, line 25, strike the comma and insert a period.
Page 18, strike lines 1 through 3.
Page 19, after line 12, insert the following:
SEC. 107. INCLUSION OF WOMEN AND MINORITIES.
(a) Office of Minority and Women Inclusion.--The Secretary of
the Treasury shall establish an Office of Minority and Women
Inclusion, or designate an office of the entity, that shall be
responsible for carrying out this section and ensuring
compliance by the Secretary and each assisted institution (as
such term is defined in section 3 of the Emergency Economic
Stabilization Act of 2008) with the requirements of this
section. The Office shall be responsible for all matters of the
entity relating to diversity in management, employment, and
business activities in accordance with such standards and
requirements as the Secretary shall establish regarding the use
of assistance provided under title I of such Act.
(b) Inclusion in All Levels of Business Activities.--The
Secretary and each assisted institution shall develop and
implement standards and procedures to ensure, to the maximum
extent possible, the inclusion and utilization of minorities
(as such term is defined in section 1204(c) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1811 note)) and women, and minority-and women-owned
businesses (as such terms are defined in section 21A(r)(4) of
the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4))
(including financial institutions, investment banking firms,
mortgage banking firms, asset management firms, broker-dealers,
financial services firms, underwriters, accountants, brokers,
investment consultants, and providers of legal services) in all
business and activities of the Secretary and each assisted
institution at all levels, including in procurement, insurance,
and all types of contracts (including contracts for the
issuance or guarantee of any debt, equity, or mortgage-related
securities, the management of its mortgage and securities
portfolios, the making of its equity investments, the purchase,
sale and servicing of single- and multi-family mortgage loans,
and the implementation of its affordable housing program and
initiatives). The processes established by the Secretary and
each assisted institution for review and evaluation for
contract proposals and to hire service providers shall include
a component that gives consideration to the diversity of the
applicant.
(c) Applicability.--This section shall apply to all contracts
of the Secretary of the Treasury and assisted institutions for
services of any kind, including services that require the
services of investment banking, asset management entities,
broker-dealers, financial services entities, underwriters,
accountants, investment consultants, and providers of legal
services.
(d) Reports to Congress.--Not later than 180 days after the
date of the enactment of this Act, the Secretary shall report
to the Congress detailed information describing the actions
taken by the Office and assisted institutions pursuant to this
section, which shall include a statement of the total amounts
provided by the Secretary and assisted institutions under title
I of the Emergency Economic Stabilization Act of 2008 to third
party contractors since the last such report and the percentage
of such amounts paid to businesses described in subsection (b)
of this section.
SEC. 108. ANALYSIS OF USE OF ASSISTANCE.
(a) Requirement.--The Secretary of the Treasury shall
regularly analyze timely and detailed information concerning
the use of assistance provided under title I of the Emergency
Economic Stabilization Act of 2008 by assisted institutions to
ensure that the program established under title I of such Act
is meeting the goals of the program.
(b) Agency Collection.--The Secretary of the Treasury shall
require the Federal banking agencies (as defined in section 3
of the Federal Deposit Insurance Act) and any other Federal
agency the Secretary chooses to report detailed information to
the Secretary on the use of assistance provided by the
Secretary under the Emergency Economic Stabilization Act of
2008 in a standard electronic form on no less than a quarterly
basis.
(c) Source of Information.--The data collected and analyzed
under subsections (a) and (b)--
(1) shall come from existing reports filed by all
assisted institutions where possible, including
depository institutions and nondepository institutions,
with the principal Federal regulator of each such
institution, if any; and
(2) and should be sufficiently detailed and timely to
enable the Secretary to determine the effectiveness of
the program established under title I of the Emergency
Economic Stabilization Act of 2008 in stimulating
prudent lending and strengthening bank capital.
(d) Adjustments and Recommendations.--If the Secretary of the
Treasury determines that--
(1) the goals of the program established under title
I of the Emergency Economic Stabilization Act of 2008
are not being met, the Secretary shall work with the
Federal agencies supplying the information under
subsection (b) to encourage such agencies to provide
the recipients of assistance under such title with
recommendations for better meeting the goals of the
program; and
(2) the goals of the program are not being met
following the recommendations and adjustments made in
accordance with paragraph (1), the Secretary shall
adjust the future uses of assistance provided under
such title.
SEC. 109. DATABASE OF USE OF TARP FUNDS.
The Secretary of the Treasury shall create and maintain a
fully searchable database, accessible on the Internet at no
cost to the public, that contains the name of each entity
receiving funds made available under section 115(a) of the
Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5225(a)) and the purpose for which such entity is receiving
such funds.
Page 19, line 13, strike ``107'' and insert
``110''.
Page 19, line 16, strike ``subsection'' and insert
``subsections''.
Page 19, line 20, strike the quotation marks and the last
period.
Page 19, line after line 20, insert the following:
``(g) Qualified Property.--
``(1) Guarantee.--Upon the request of a lessee of
qualified property in leases where the lessee
economically defeased its rent and purchase option
payments, the Secretary may serve as a guarantor with
respect to all payment obligations of such lessee with
respect to any defeased lease transaction that is in
technical default because of a downgrade of a financial
guarantor. Such guarantee shall be on such terms and
conditions as are determined by the Secretary.
``(2) Definitions.--For purposes of this subsection,
the following definitions shall apply:
``(A) Qualified property.--The term
`qualified property' means domestic property
subject to a lease entered into prior to
November 1, 2007, in which a State or local
government authority (as defined in section
5302(a) of title 49, United States Code) is the
lessee.
``(B) Guarantor.--The term `guarantor'
includes any guarantor, surety, and payment
undertaker.''.
Page 20, before line 1 insert the following new section:
SEC. 111. INVESTMENT OF TARP FUNDS IN CREDIT UNIONS TAKEN INTO ACCOUNT
IN DETERMINATION OF NET WORTH.
(a) In General.--Section 216(o)(2) of the Federal Credit
Union Act (12 U.S.C. 1790d(o)(2)) is amended by striking
subparagraph (A) and inserting the following new subparagraph:
``(A) with respect to any insured credit
union, means--
``(i) the retained earnings balance
of the credit union, as determined
under generally accepted accounting
principles, together with any amounts
that were previously the retained
earnings of any other credit union with
which the credit union has combined;
and
``(ii) any donated equity, permanent,
and perpetual capital deposits, or
other primary capital made available
under Title I of the Emergency Economic
Stabilization Act of 2008, as
determined by regulation or order of
the Board with due regard for the
accepted capital standards for United
States depository institutions
generally; and''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect at the end of the 30-day period beginning on
the date of the enactment of this Act.
SEC. 112. TREASURY FACILITATED AUCTION.
Section 113(b) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5223(b)) is amended to read as follows:
``(b) Use of Market Mechanisms.--
``(1) In general.--In making purchases under this
Act, the Secretary shall--
``(A) make such purchases at the lowest price
that the Secretary determines to be consistent
with the purposes of this Act; and
``(B) maximize the efficiency of the use of
taxpayer resources by using market mechanisms,
including auctions or reverse auctions, where
appropriate.
``(2) Auction facilitation.--
``(A) In general.--The Secretary shall, in
coordination with institutions that volunteer
to participate, and not using any funds under
this title for purchases, facilitate an auction
of troubled assets owned by such institutions
to third party purchasers.
``(B) Report.--If the auction described in
subparagraph (A) does not take place within the
3 month period following the date of the
enactment of the TARP Reform and Accountability
Act of 2009, the Secretary shall issue a report
to the Congress stating--
``(i) why such auction has not taken
place; and
``(ii) by what mechanism the
Secretary feels that troubled assets
could most expeditiously be valued and
liquidated.''.
Page 20, after line 4, insert the following:
(a) Commitment of Resources.--Notwithstanding any provision
of title I of the Emergency Economic Stabilization Act of 2008,
not later than seven days after the date of the enactment of
the TARP Reform and Accountability Act of 2009, the Secretary
of the Treasury (in this title referred to as the
``Secretary'') shall commit funds made available to the
Secretary under title I of the Emergency Economic Stabilization
Act of 2008 in an amount of at least $100,000,000,000, unless
the Secretary certifies otherwise under subsection (d), but in
no case less than $40,000,000,000, for the purposes of
foreclosure mitigation. Not less than $20,000,000,000 of this
amount shall be dedicated to the program described under
section 204 of this Act. The Secretary shall consult with the
Chairperson of the Board of Directors of the Federal Deposit
Insurance Corporation regarding the administration of the
program.
Page 20, line 5, strike ``(a)'' and insert ``(b)''.
Page 20, strike ``of the Treasury'' in line 8 and all that
follows through ```Secretary')'' in line 9.
Page 20, line 11, after ``to'' insert ``use the funds
committed under subparagraph (a) to''.
Page 20, strike lines 16 through 21.
Strike ``committing funds'' in line 23 of page 20 and all
that follows through ``of 2008'' on page 21, line 1.
Page 21, line 2, strike ``(a)'' and insert ``(b)''.
Page 21, line 3, strike ``by May 1, 2009,''.
Page 21, lines 4 and 5, strike ``more than the minimum of
$40,000,000,000 as required'' and insert ``at least
$100,000,000,000 in the plan established''.
Page 21, lines 6 and 7, strike ``, no later than May 15,
2009,'' and insert ``in the plan''.
Page 21, line 7, strike ``additional funds'' and insert
``amounts''.
Page 21, after line 8, insert the following:
(e) Clarification.--For purposes of this title, the term
``residential properties'' shall include 1- to 4-family
residential properties.
Page 21, line 11, strike ``201(a)'' and insert ``201(b)''.
Page 21, lines 23 and 24, strike ``one, or a combination of
more than one,'' and insert ``the systematic foreclosure
prevention and mortgage modification program under section 204
and a combination''.
Page 21, after line 25, insert the following:
(4) Workforce and outreach.--The plan shall set forth
how the Secretary intends to develop, second, or
contract for appropriate staffing to carry out the plan
and the component programs and to ensure that private
mortgage servicers utilizing the programs established
by the Secretary will provide sufficient staffing and
resources to engage in the outreach, loss mitigation
activities, and homeowner education necessary for
successful foreclosure mitigation.
Page 22, line 2, strike ``201(a)'' and insert ``201(b)''.
Page 22, strike lines 9 through 11.
Page 22, line 12, strike ``(2)'' and insert ``(1)''.
Page 22, line 23, strike ``(3)'' and insert ``(2)''.
Page 23, line 8, strike ``(4)'' and insert ``(3)''.
Page 23, line 13, strike ``(5)'' and insert ``(4)''.
Page 23, line 10, after ``servicers'' insert the following:
````, including servicers that are not affiliated with a
depository institution,''.
Page 23, line 19, after ``Corporation'' insert ``, regional
public-private partnerships,''.
Page 23, after line 22, insert the following:
(5) Substitution of trust.--A program under which
modifications are allowed to the securitization trust
agreements with respect to securities secured by pools
of mortgages to allow a new qualified buyer to be
substituted on a foreclosed property or a delinquent
mortgage without seeking new financing.
Page 24, line 18, after ``with'' insert ``the Chairperson of
the Federal Deposit Insurance Corporation and''.
Page 27, line 19, strike ``201(a)'' and insert ``201(b)''.
Page 28, line 3, strike ``118'' and insert ``title I''.
Page 28, line 12, strike ``204'' and insert ``205''.
Page 28, line 18, strike ``201(a)'' and insert ``201(b)''.
Page 29, line 1, strike ``205'' and insert ``206''.
Strike line 21 on page 31 and all that follows through page
32, line 2.
Page 32, line 3, strike ``(c)'' and insert ``(b)''.
Page 32, line 10, strike ``(d)'' and insert ``(c)''.
Page 32, after line 19, insert the following:
SEC. 207. FORECLOSURE PREVENTION FOR AFFORDABLE HOUSING.
Section 109 of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5219) is amended to read as follows:
``SEC. 109. FORECLOSURE MITIGATION EFFORTS.
``(a) Residential Mortgage Servicing Standards.--To the
extent that the Secretary acquires mortgages, mortgage backed
securities, and other assets secured by residential real
estate, including multifamily housing, the Secretary shall
implement a plan that seeks to maximize assistance for
homeowners and renters and use the authority of the Secretary
to encourage the servicers of the underlying mortgages,
considering net present value to the taxpayer, to take
advantage of the HOPE for Homeowners Program under section 257
of the National Housing Act or other available programs to
minimize foreclosures. In addition, the Secretary may use loan
guarantees and credit enhancements to facilitate loan
modifications to prevent avoidable foreclosures on single-
family and multifamily housing.
``(b) Coordination.--The Secretary shall coordinate with the
Corporation, the Board (with respect to any mortgage or
mortgage-backed securities or pool of securities held, owned,
or controlled by or on behalf of a Federal reserve bank, as
provided in section 110(a)(1)(C)), the Federal Housing Finance
Agency, the Secretary of Housing and Urban Development, and
other Federal Government entities that hold troubled assets to
attempt to identify opportunities for the acquisition of
classes of troubled assets that will improve the ability of the
Secretary to improve the loan modification and restructuring
process and, where permissible, to permit bona fide tenants who
are current on their rent to remain in their homes under the
terms of the lease. In the case of a mortgage on a residential
rental property, including a qualified low-income building
under section 42 of the Internal Revenue Code of 1986, the plan
required under this section shall include protecting Federal,
State, and local rental subsidies and protections, and ensuring
any modification takes into account the need for operating
funds to maintain decent and safe conditions at the property.
``(c) Consent to Reasonable Loan Modification Requests.--Upon
any request arising under existing investment contracts, the
Secretary shall consent, where appropriate and considering net
present value to the taxpayer, to reasonable requests by
homeowners and owners of multifamily housing, including
qualified low-income buildings under section 42 of the Internal
Revenue Code of 1986, for loss mitigation measures, including
term extensions, rate reductions, principal write downs,
increases in the proportion of loans within a trust or other
structure allowed to be modified, or removal of other
limitation on modifications.''.
Page 32, line 20, strike ``206'' and insert ``208''.
Page 33, after line 6, insert the following (and conform the
Table of Contents accordingly):
SEC. 209. MORTGAGE MODIFICATION DATA COLLECTING AND REPORTING.
(a) Reporting Requirements.--Not later than 120 days after
the date of the enactment of this Act, and quarterly
thereafter, the Comptroller of the Currency, in coordination
with the Director of the Office of Thrift Supervision, shall
submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate, the Committee on Financial Services of
the House of Representatives, and the Joint Economic Committee
on the volume of mortgage modifications reported to the Office
of the Comptroller of the Currency and the Office of Thrift
Supervision, under the mortgage metrics program of each such
Office, during the previous quarter, including the following:
(1) The total number of mortgage modifications
resulting in each of the following:
(A) Additions of delinquent payments and fees
to loan balances.
(B) Interest rate reductions and freezes.
(C) Term extensions.
(D) Reductions of principal.
(E) Deferrals of principal.
(F) Combinations of modifications described
in subparagraph (A), (B), (C), (D), or (E).
(2) The total number of mortgage modifications in
which the total monthly principal and interest payment
resulted in the following:
(A) An increase.
(B) Remained the same.
(C) Decreased less than 10 percent.
(D) Decreased 10 percent or more.
(b) Data Collection.--
(1) Required.--
(A) In general.--Not later than 60 days after
the date of the enactment of this Act, the
Comptroller of the Currency and the Director of
the Office of Thrift Supervision, shall issue
mortgage modification data collection and
reporting requirements to institutions covered
under the reporting requirement of the mortgage
metrics program of the Comptroller or the
Director.
(B) Inclusiveness of collections.--The
requirements under subparagraph (A) shall
provide for the collection of all mortgage
modification data needed by the Comptroller of
the Currency and the Director of the Office of
Thrift Supervision to fulfill the reporting
requirements under subsection (a).
(2) Report.--The Comptroller of the Currency shall
report all requirements established under paragraph (1)
to each committee receiving the report required under
subsection (a).
Page 52, strike ``obligation'' in line 19 and all that
follows through ``2008'' in line 21 and insert ``existing
vested legal rights and the Constitution''.
Page 63, line 9, after the first period insert the following:
``In determining which classes of consumer loans to support,
the Secretary may consider the applicable regulatory structure
and level of consumer protection afforded to such loans.''.
Page 63, line 11, strike ``103'' and insert ``101''.
Page 63, line 13, strike ``(f)'' and insert ``(g)''.
Page 63, line 13, strike ``401'' and insert ``110''.
Page 63, line 15, strike ``(g)'' and insert ``(h)''.
Page 64, line 8, before the first period insert the
following: ``or any other entity eligible to issue bonds the
interest on which is excludable from gross income for Federal
income tax purposes.''.
Page 64, line 19, after ``estate loans,'' insert ``including
loans for multifamily housing,''.
Page 64, after line 22, insert the following new sections:
SEC. 404. SMALL BUSINESS LOANS.
Title I of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5211 et seq.) is amended by adding after section 138
(as added by section 403 of this title) the following new
section:
``SEC. 139. CLARIFICATION OF AUTHORITY REGARDING SMALL BUSINESS LOANS.
``The authority of the Secretary to take any action under
this title includes the authority to establish or support
facilities to support the availability of small business loans,
including farm loans, loans to minority and disadvantaged
businesses, debtor-in-possession financing, dealer floor plan
financing, and any other small business loans, including
through purchase of asset-backed securities, directly or
through the Board or any Federal reserve bank.''.
SEC. 405. COMMERCIAL LOANS.
Title I of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5211 et seq.) is amended by adding after section 139
(as added by section 404 of this title) the following new
section:
``SEC. 140. CLARIFICATION OF AUTHORITY REGARDING COMMERCIAL LOANS.
``The authority of the Secretary to take any action under
this title includes the authority to establish or support
facilities to support the availability of commercial loans,
including through purchase of asset-backed securities, directly
or through the Board or any Federal reserve bank.''.
SEC. 406. AUTOMOBILE FLEET PURCHASE LOANS.
Title I of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5211 et seq.) is amended by adding after section 140
(as added by section 405 of this title) the following new
section:
``SEC. 140. CLARIFICATION OF AUTHORITY REGARDING AUTOMOBILE FLEET
PURCHASE LOANS.
``The authority of the Secretary to take any action under
this title includes the authority to establish or support
facilities to support the availability of automobile fleet
purchase loans, including loans for the automobile rental
industry and other fleet purchasers, including through purchase
of asset-backed securities, directly or through the Board or
any Federal reserve bank.''.
SEC. 407. CERTIFICATION.
Subsection (a) of section 105 of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5215(a)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(4) the use of the authority for the purposes
specified in the amendments made by title IV of the
TARP Reform and Accountability Act of 2009.''.
Strike line 1 on page 68 and all that follows through page
69, line 2.
Page 69, line 7, strike ``carry out'' and insert ``establish
and implement, within 60 days of the date of the enactment of
the TARP Reform and Accountability Act of 2009,''.
Page 69, lines 8 and 9, strike ``using the authority made
available by section 1117 of the Housing and Economic Recovery
Act of 2008''.
Page 69, lines 11 and 12, strike ``which shall include
ensuring'' and insert ``by providing mechanisms to ensure''.
Page 69, line 12, after ``affordable'' insert ``, below-
market''.
Strike line 15 on page 69 and all that follows through page
70, line 13, and insert the following:
(b) Implementation.--The Secretary shall execute the program
under this section using the authority to purchase obligations
and other securities issued by the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, and
the Federal Home Loan Banks made available by the Housing and
Economic Recovery Act of 2008 and such other authority as the
Secretary may have (other than that provided by title I of the
Emergency Economic Stabilization Act of 2008) to make
affordable, below-market interest rates available directly
through portfolio lenders.
Page 70, line 14, strike ``(d)'' and insert ``(c)''.
Page 70, line 17, after ``affordable'' insert ``, below-
market''.
Strike line 24 on page 70 and all that follows through page
71, line 3, and insert the following:
(e) Targeting for Housing Disaster Areas.--
(1) In general.--In carrying out the program under
this section, the Secretary shall take into
consideration impact of activities under the program on
housing disaster areas.
(2) Report.--Not later than 60 days after the
Secretary first has authority to purchase troubled
assets pursuant to section 115(a)(3) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C.
5225(a)(3)), the Secretary shall--
(A) evaluate the impact of existing Federal
foreclosure prevention activities on housing
disaster areas;
(B) make a determination of whether the
foreclosure rates and anticipated default rates
in such areas have been adequately reduced; and
(C) submit a report to the Congress that
describes the impact of such activities and the
determination of the Secretary under
subparagraph (B).
(3) Alternative proposals.--If the Secretary
determines that the foreclosure rates and anticipated
default rates in housing disaster areas have not been
adequately reduced, the Secretary shall--
(A) consider carrying out alternative
proposals, including a proposal under which the
Federal Government makes available affordable
mortgages, including refinancings, through
subsidized financing or mortgage purchases; and
(B) establish and carry out alternative
programs as the Secretary considers necessary
to ensure that foreclosure prevention efforts
are most effective in the areas of greatest
need, including housing disaster areas.
(4) Housing disaster areas.--For purposes of this
section, the term ``housing disaster area'' means a
geographic area having both--
(A) a high foreclosure rate during the 12
months preceding the date of the enactment of
this Act, as measured by percentages of homes
in or having gone through foreclosure during
such period and compared to other areas; and
(B) a substantial decline in home prices
during the 12 months preceding the date of the
enactment of this Act, as measured by the
Office of Federal Housing Enterprise and
Oversight and compared to other areas.
Page 72, line 20, strike ``1814(a)'' and insert ``1824(a)''.
At the end of the bill, add the following new title:
TITLE VIII--REPORTS ON THE GUARANTEE OF CERTAIN CITIGROUP ASSETS
SEC. 801. REPORTS REQUIRED.
(a) Treasury Reports.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of the Treasury, in
coordination with the Chairperson of the Board of Directors of
the Federal Deposit Insurance Corporation, shall issue a report
to the Committee on Financial Services of the House of
Representatives, the Committee on Banking of the Senate, and to
the Comptroller General of the United States containing the
following:
(1) The authority under which the Citigroup guarantee
and purchases were made.
(2) A complete accounting of the specific loans,
securities, and any other financial instruments in the
asset pool covered by the Citigroup guarantee.
(b) GAO Report.--Not later than 60 days after the date the
Secretary of the Treasury issues the report required by
subsection (a), the Comptroller General of the United States
shall issue a report to the Committee on Financial Services of
the House of Representatives and the Committee on Banking of
the Senate examining the probable long-term cost to the Federal
Government of the Citigroup guarantee.
(c) Citigroup Guarantee Defined.--For the purpose of this
section, the term ``Citigroup guarantee'' means the agreement
announced November 23, 2008, between Citigroup and the Treasury
and the Federal Deposit Insurance Corporation to guarantee or
purchase, partly through the use of funds authorized under the
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 et
seq.), an asset pool of approximately $306 billion of loans and
securities backed by residential and commercial real estate and
other such assets on Citigroup's balance sheet.
TITLE IX--GAO STUDY OF FINANCIAL CRISIS
SEC. 901. STUDY REQUIRED.
The Comptroller General of the United States shall--
(1) conduct an in-depth study of the root causes of
the financial crisis; and
(2) submit a report to the Congress and the
President, and transmit a copy to the Secretary of the
Treasury, containing the findings and conclusions of
the Comptroller General with respect to the study under
paragraph (1), together with such recommendations for
legislative and administrative action as the
Comptroller General may determine to be appropriate
before the end of the 6-month period beginning on the
date of the enactment of this Act.
SEC. 902. TREASURY STRATEGY AND TIMELINE.
Using the findings and conclusions of the Comptroller General
in the report under section 901(2), within 30 days, the
Secretary of the Treasury shall issue an overall strategy and
timeline for implementing the recommendations contained in the
report with the goal of financial stability and the well-being
of taxpayers.
----------
2. An Amendment To Be Offered by Representative Matsui of California,
or Her Designee, Debatable for 10 Minutes
Page 32, after line 19 insert the following new section (and
redesignate the subsequent section and conform the table of
contents accordingly):
SEC. 206. FORECLOSURE MORATORIUM RECOMMENDATION.
(a) Foreclosure Deferment.--It is the sense of the Congress
that any institution which becomes an assisted institution on
or after the date of the enactment of this Act should not
initiate, or allow to continue, a foreclosure proceeding or a
foreclosure sale on any with respect to any principal homeowner
mortgage, until the earliest of the following:
(1) The date by which the comprehensive plan to
prevent and mitigate foreclosures has been developed by
the Secretary and the Federal Deposit Insurance
Corporation and approved by the Financial Stability
Oversight Board under section 201 and become fully
operational.
(2) The date by which the systematic foreclosure
prevention and mortgage modification plan has been
established by the Secretary in accordance with section
204 and become fully operational.
(3) The end of the 9-month period beginning on the
date of the enactment of this Act.
(b) FHA-Regulated Loan Modification Agreements.--If an
assisted institution to which subsection (a) applies reaches a
loan modification agreement with a homeowner under the auspices
of the Federal Housing Administration before any plan referred
to in paragraph (1) or (2) of such subsection takes effect,
subsection (a) shall cease to apply to such institution as of
the effective date of the loan modification agreement.
(c) Duty of Consumer To Maintain Property.--Any homeowner for
whose benefit any foreclosure proceeding or sale is barred
under subsection (a) from being instituted, continued, or
consummated with respect to any homeowner mortgage may not,
with respect to any property securing such mortgage, destroy,
damage, or impair such property, allow the property to
deteriorate, or commit waste on the property.
(d) Duty of Consumer To Respond to Reasonable Inquiries.--Any
homeowner for whose benefit any foreclosure proceeding or sale
is barred under subsection (a) from being instituted,
continued, or consummated with respect to any homeowner
mortgage shall respond to reasonable inquiries from a creditor
or servicer during the period during which such foreclosure
proceeding or sale is barred.
----------
3. An Amendment To Be Offered by Representative Hensarling of Texas, or
His Designee, Debatable for 10 Minutes
Page 11, strike lines 1 through 7.
----------
4. An Amendment To Be Offered by Representative Holt of New Jersey, or
His Designee, Debatable for 10 Minutes
Page 19, after line 20, insert the following:
SEC. 108. TREASURY FACILITATED AUCTION.
Section 113(b) of the Emergency Economic Stabilization Act of
2008 (12 U.S.C. 5223(b)) is amended to read as follows:
``(b) Use of Market Mechanisms.--
``(1) In general.--In making purchases under this
Act, the Secretary shall--
``(A) make such purchases at the lowest price
that the Secretary determines to be consistent
with the purposes of this Act; and
``(B) maximize the efficiency of the use of
taxpayer resources by using market mechanisms,
including auctions or reverse auctions, where
appropriate.
``(2) Auction facilitation.--
``(A) In general.--The Secretary shall, in
coordination with institutions that volunteer
to participate, and not using any funds under
this title for purchases, facilitate an auction
of troubled assets owned by such institutions
to third party purchasers.
``(B) Report.--If the auction described in
subparagraph (A) does not take place within the
3 month period following the date of the
enactment of the TARP Reform and Accountability
Act of 2009, the Secretary shall issue a report
to the Congress stating--
``(i) why such auction has not taken
place; and
``(ii) by what mechanism the
Secretary feels that troubled assets
could most expeditiously be valued and
liquidated.''.
----------
5. An Amendment To Be Offered by Representative Bachmann of Minnesota,
or Her Designee, Debatable for 10 Minutes
Strike line 1 on page 65 and all that follows through page
69, line 2.
----------
6. An Amendment To Be Offered by Representative Bachmann of Minnesota,
or Her Designee, Debatable for 10 Minutes
Strike title III (and conform the Table of Contents
accordingly).
----------
7. An Amendment To Be Offered by Representative Patrick Murphy of
Pennsylvania, or His Designee, Debatable for 10 Minutes
Page 74, after line 17, add the following new title (and
conform the Table of Contents accordingly):
TITLE VIII--AGENCY MBS PURCHASE PROGRAM DISCLOSURE
SEC. 801. DISCLOSURE REQUIRED.
Not later than 1 month after the date of the enactment of
this Act, the Chairman of the Board of Governors of the Federal
Reserve System shall issue to the Congress a report
disclosing--
(1) the details of the competitive request for
proposal process that was used to select the investment
managers of the Federal Reserve System's Agency
Mortgage-Backed Security Purchase Program announced by
the Federal Reserve System on November 25, 2008;
(2) all details of the contracts, including contract
price, made between the Federal Reserve System and such
investment managers; and
(3) steps that each such investment manager has taken
to ensure that the investment manager has appropriately
segregated the investment management team that
implements the Agency Mortgage-Backed Security Purchase
Program from other advisory and propriety trading
activities undertaken by the investment manager and the
members of the investment management team.
----------
8. An Amendment To Be Offered by Representative Myrick of North
Carolina, or Her Designee, Debatable for 10 Minutes
Page 7, after line 11, insert the following:
``(4) Prohibition on use of tarp funds for foreign
customer service positions.--Effective as of the date
of the enactment of the TARP Reform and Accountability
Act of 2009, no assisted institution that became an
assisted institution on or after October 3, 2008, may
enter into a new agreement, or expand a current
agreement, with any foreign company for provision of
customer service functions, including call-center
services, while any of such assistance is
outstanding.''.
----------
9. An Amendment To Be Offered by Representative Walz of Minnesota, or
His Designee, Debatable for 10 Minutes
In subsection (e) of section 113 of the Emergency Economic
Stabilization Act of 2008, as proposed to be added by section
101(a) of the bill, add at the end the following new paragraph:
``(4) Online publication of periodic reports.--The
Secretary shall make publicly available on the Internet
each report made in accordance with paragraph (1).''.
----------
10. An Amendment To Be Offered by Representative Flake of Arizona, or
His Designee, Debatable for 10 Minutes
At the end of title I, insert the following:
SEC. 108. BROADENED INSPECTOR GENERAL AUTHORITY.
Section 121(c) of the Emergency Economic Stabilization Act
(12 U.S.C. 5231(c)) is amended by striking ``the purchase,
management, and sale of assets'' and all that follows through
``under section 102'' and inserting ``any action taken by the
Secretary of the Treasury under this title (except sections
115, 116, 117, and 125), as the Special Inspector General
determines appropriate''.
In the table of contents in section 1(b), insert after the
item relating to section 107 the following new item:
Sec. 108. Broadened Inspector General Authority.
____________________________________________________
11. An Amendment To Be Offered by Representative Hinchey of New York,
or His Designee, Debatable for 10 Minutes
Page 4, after line 9, insert the following new paragraph:
``(4) Use of 2008 assistance.--
``(A) Collection of information.--Effective
upon enactment of this paragraph, the Secretary
shall require any assisted institution which
received assistance under this title before
January 1, 2009, to provide sufficient
information with regard to such assistance as
to inform the Secretary of the precise use of
such assistance by the institution and the
purpose for the use.
``(B) Analysis.--The Secretary shall conduct
an analysis of the use of the assistance for
which information was received under
subparagraph (A).
``(C) Report to the congress.--Within 30 days
after the enactment of this paragraph, the
Secretary shall promptly submit a report
containing the findings and conclusion of the
Secretary on the use of the assistance referred
to in subparagraph (A), together with such
recommendations for legislative or
administrative action as the Secretary may
determine to be appropriate, to the Committee
on Financial Services of the House of
Representatives, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and
the Committees on Appropriations of the House
of Representatives and the Senate.''.