Sec. 304. Mandatory receivership
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The Director shall, with respect to each enterprise, immediately appoint the Ginnie Mae as receiver under section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617 ) upon the later of the following: The expiration of the 60-month period beginning on the date of the enactment of this Act, as the duration of such period may be adjusted pursuant to subsection (c). The certification date has occurred and the Director has determined— that a competitive private housing finance market has been established; that competitive and equitable access to the Platform for smaller mortgage lenders is available; in consultation with relevant participants and stakeholders in the housing finance market, that the Platform and the procedures and structures established by title II have been thoroughly and sufficiently tested and such tests indicate that they will facilitate the continued functioning of the market for to be announced mortgage-backed securities; the pooling services offered by Federal Home Loan Banks pursuant to section 11(m) of the Federal Home Loan Bank Act are competitive with services made available by the enterprises before the certification date; and the Federal Home Loan Banks are capable of meeting the cash window needs of credit unions, community and mid-sized depository institutions, and non-depository mortgage originators with competitive rates and terms.
Ginnie Mae shall carry out the receivership referred to in subsection
(a)for the enterprise under the authority of such section 1367, subject to the following requirements: In carrying out the receivership of each enterprise, Ginnie Mae shall strive to achieve both of the following goals: Obtaining an adequate return of taxpayer investment in the enterprise, taking into consideration the total cost to the taxpayers, the value provided to the enterprise, and the risk and exposure to the Federal Government involved, together with interest on such investment at a rate determined by the Director, in consultation with the Board of Governors of the Federal Reserve System and the Secretary of the Treasury. Removing barriers to private sector competition in the housing finance market by providing for the transfer of the assets of the enterprise into the private sector to compete in a functioning housing finance market. Any entities emerging from such receivership shall be fully private and any obligations and securities of such entities shall not constitute a debt or obligation of the United States nor or any agency or instrumentality thereof. The receivership shall provide, notwithstanding any other provision of this Act, for the transfer of the multifamily housing mortgage guarantee businesses of the enterprises in accordance with section 401 of this Act. The receivership shall provide for— the identification of any assets of the enterprise that are not necessary for the operation of the limited-life entities established pursuant to paragraph (6); and making such assets available at auction for acquisition at competitive rates by any private entities, which shall include the private entities established pursuant to paragraph (6)(C). The receivership shall provide for the restructuring of the Senior Preferred Stock Purchase Agreements entered into between the Department of the Treasury and the enterprise on September 26, 2008, as amended and restated thereafter, to— permit the redemption of senior preferred shares of the Department of the Treasury; provide for the cancellation of the warrants for the purchase of common stock of the enterprises issued to the Department of the Treasury; and provide for the appropriate level of compensation to the Federal Government for the financial support and commitment provided to the enterprise. Under the receivership— the receiver shall organize a limited-life regulated entity for the enterprise in accordance with section 1367(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617(i) ), except that— any assets and liabilities of the enterprise that the receiver determines are necessary to allow the limited-life regulated entity to operate independent from the resolution of the enterprise shall be transferred to the limited-life regulated entity; and in winding up the affairs of the limited-life regulated entity, the remaining assets of the limited-life regulated entity shall be made available to the successor entities established pursuant to subparagraph
(C)of this paragraph and to other private guarantors engaged in providing insurance for eligible mortgage-backed securities in accordance with section 202; the charter of the enterprise shall be repealed pursuant to section 1367(k) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617(k) ), as amended by section 305; and the receiver shall provide for reorganization and chartering of the successor entity to the limited life regulated entity for the enterprise as an entity established to operate as an insurer under section 202(b)(2)(A) of this Act or a participating aggregator of eligible mortgages for securitization pursuant to section 201 if such eligible mortgages are originated by originators whose volume of such business is insufficient to allow for such originators to aggregate and securitize such mortgages. Ginnie Mae may adjust the duration of the period referred to in subsection (a)(1) by establishing requirements to be met by market participants before such period may be considered to be concluded. Such requirements may include requirements regarding— ensuring that there is an adequate level of private capital available for efficient financing of single-family and multifamily housing mortgages through— the market for initial public offerings; and retained earnings of market participants; and ensuring that any anticompetitive liquidity advantages in mortgage-backed securities are adequately protected against.
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Sec. 304
Mandatory receivership
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