Sec. 401. Optimizing revenue intake and saving taxpayer dollars at Ginnie Mae by assessing current practices and exploring alternative governance structures to provide better oversight
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In this section— the term appropriate congressional committees means— the Committee on Banking, Housing, and Urban Affairs of the Senate; the Committee on Homeland Security and Governmental Affairs of the Senate; the Committee on Financial Services of the House of Representatives; and the Committee on Oversight and Reform of the House of Representatives; the term Association means the Government National Mortgage Association; and the term Secretary means the Secretary of Housing and Urban Development.
Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study and submit to the appropriate congressional committees and the Comptroller General of the United States a report on the adequacy of the guaranty fee of the Association for single-family mortgage-backed securities, which shall— evaluate the extent to which the level of the guaranty fee for single-family mortgage-backed securities provides the Association with sufficient reserves to cover potential losses under different economic scenarios, including adverse scenarios, based on an actuarial or similar analysis; identify the types of standards that the Association could use to set the guaranty fee for single-family mortgage-backed securities and evaluate which standard or standards would enable the Association to set the guaranty fee at an appropriate level in line with the mission of the Association; assess the benefits and costs of adopting a risk-based guaranty fee for single-family mortgage-backed securities that imposes a higher fee on higher risk issuers; analyze how and to what extent an increase in the guaranty fee (for all issuers and a subset of riskier issuers) would affect borrowers’ financing, closing, and other related costs for federally insured mortgage loans; and if warranted, include recommendations for any necessary amendments to the National Housing Act ( 12 U.S.C. 1701 et seq. ) to change the guaranty fee for single-family mortgage-backed securities, including for establishing a standard under which the Association can determine the level of the guaranty fee for single-family mortgage-backed securities.
Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study and submit to the appropriate congressional committees and the Comptroller General of the United States a report evaluating the workforce composition of the Association in consideration of the critical functions of the Association, which shall— analyze— the number of Federal employees and contractors by type of role or position that the Association uses to perform compliance, risk management, and other critical functions, and the cost of a full-time equivalent Federal employee versus a contractor for comparable roles or positions; the extent to which the Association could use Federal employees instead of contractors by role or position to perform critical functions; the types and amounts of costs that the Association could save by using Federal employees instead of contractors, where possible, to perform critical functions, such as savings from differences in pay and not having to oversee contractors; whether the Association would face any legal or other obstacles in using Federal employees instead of contractors to perform critical functions; and the potential negative and positive effects of using Federal employees instead of contractors on the ability of the Association to achieve the mission of the Association; and if warranted, include recommendations for any necessary amendments to the National Housing Act ( 12 U.S.C. 1701 et seq. ) to change the funding structure of the Association.
Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study and submit to the appropriate congressional committees and the Comptroller General of the United States a report evaluating the workforce challenges of the Association, which shall— analyze, quantitatively to the extent possible, the challenges of the Association in hiring and retaining staff, including compensation, during the 3-year period preceding the report; identify and summarize the options that the Association has pursued within existing authorities to address the staffing challenges of the Association, including which agencies or offices were involved, and the key decisions and outcomes of those efforts; identify options that the Association did not pursue within existing authorities to address the staffing challenges of the Association and the reasons for not pursuing those options; identify and evaluate options outside of existing authorities that the Association could use to address the staffing challenges of the Association and the potential benefits and costs of those options; and if warranted, include recommendations for any necessary amendments to the National Housing Act ( 12 U.S.C. 1701 et seq. ) to change how the Government National Mortgage Association sets compensation.
The Comptroller General of the United States shall conduct a study and submit to the appropriate congressional committees a report on alternate ways of overseeing the Association to address increasing risks, which shall— review the reports submitted by the Secretary under subsections (b), (c), and
(d)to determine if the reports addressed the required provisions and assess any recommendations made in those reports; identify key challenges or constraints that the Association has faced under the governance and funding structure of the Association as a government corporation within the Department of Housing and Urban Development; identify alternative models under which the governance and funding structure of the Association could be reorganized to better support housing policy priorities in the United States and to ensure that the Association fulfilling the role of increasing liquidity in the housing finance market while also minimizing risk to the taxpayer; evaluate the potential positive and negative impacts of the models described in paragraph
(3)on the Association, the Department of Housing and Urban Development, and other stakeholders; obtain input from relevant stakeholders, such as Federal entities, lenders, issuers, investors, affordable housing advocates, and researchers, on reforms to the organizational and oversight structure of the Association; consider the housing finance system and ways in which alternative oversight structures of the Association could impact the system; and review such other information as the Comptroller General determines relevant.
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Sec. 401
Optimizing revenue intake and saving taxpayer dollars at Ginnie Mae by assessing current practices and exploring alternative governance structures to provide better oversight
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