Sec. 201 Establishment of MFA
There is established the Mortgage Finance Agency, which shall be an independent agency of the Federal Government.
Title II — Mortgage Finance Agency
II Mortgage Finance Agency
Sec. 202 Governance
Director—
In general— The MFA shall be headed, on a day-to-day basis, by a Director, appointed by the President, by and with the advice and consent of the Senate. Such appointment shall be made not later than 6 months after the date of enactment of this Act.
Regulatory authority— The Director shall have general regulatory authority over the MFA, and shall exercise such general regulatory authority as necessary to carry out this Act.
Term— The Director shall serve for a term of 5 years. An individual may serve as Director after the expiration of the term for which appointed, until a successor has been appointed and qualified.
Vacancies— A vacancy in the office of the Director shall be filled in the same manner as the original appointment.
Compensation— The Director shall be compensated at the rate prescribed for level II of the Executive Schedule under section 5313 of title 5, United States Code.
Board of directors—
Members— The operations of the MFA shall be directed by a 5-member Board of Directors, including the Director, who shall serve as the chairperson of the Board of Directors, a Vice Chairman, who shall be appointed by the President, the Chairman of the Securities and Exchange Commission, or a designee thereof, the Secretary of Housing and Urban Development, or a designee thereof, and the Chairman of the Board of Governors of the Federal Reserve System, or a designee thereof.
Majority vote— A majority vote of all members of the Board of Directors is necessary to resolve all voting issues of the MFA.
Meetings— The Board of Directors shall meet at the call of the Director, but in no event less frequently than once in each calendar quarter.
Federal employees— The members of the Board of Directors shall serve without additional pay (or benefits in the nature of compensation) for service as a member of the Board of Directors.
Travel expenses— Members of the Board of Directors shall be entitled to receive travel expenses, including per diem in lieu of subsistence, equivalent to those set forth in subchapter I of chapter 57 of title 5, United States Code.
Bylaws— The Board of Directors may prescribe, amend, and repeal such bylaws as may be necessary for carrying out the functions of the Board of Directors.
Quorum— A majority of the Board of Directors shall constitute a quorum.
Privatization Advisory Board—
Members— There shall be appointed by the President a 10-member privatization advisory board. To the extent practicable, the President shall seek at all times to have advisory board members with expertise in—
single family housing finance;
multifamily housing finance;
residential real estate development and sales;
secondary market structuring and pricing;
private mortgage insurance;
privatization structuring and execution; and
macroeconomic policy.
Role— The roles of the advisory board shall be—
to advise the Board of Directors on the privatization of the MFA upon termination of its authority under this Act, including how best to facilitate a smooth, efficient, and orderly transition of the guarantee business;
to review and opine on the status of the planning for privatization; and
concurrently with the plan and annual and quarterly reports presented by the MFA to Congress under section 304(c), to present to Congress its own independent reports on the plan for privatization and the status thereof.
Inspector general— There shall be within the MFA an Inspector General, who shall be appointed by the President in accordance with section 3(a) of the Inspector General Act of 1978 (5 U.S.C. App.) not later than 6 months after the date of enactment of this Act.
Sec. 203 Funding
Annual appropriations to the MFA shall be based upon a budget submitted to Congress by the MFA and approved by the Board of Directors. In accordance with section 303(a)(2), amounts appropriated shall be recouped through collection of the guarantee fee.
Sec. 204 Regulations; reports
Startup— Not later than 12 months after the date of the appointment of the Director, the MFA shall issue such regulations, guidelines, orders, requirements, and standards as may be necessary for the establishment and operation of the MFA.
Report to Congress— Not later than 6 months after the date of the appointment of the Director, the Board of Directors shall provide to Congress a progress report on the drafting of regulations and other conditions precedent to the MFA becoming fully operational.
Sec. 205 Appearances before congress
The Director shall appear before Congress annually regarding—
the safety and soundness of the MFA and the Catastrophic Fund, including, beginning 1 year after the date on which the MFA becomes operational, a report by the Inspector General of the MFA, and a report of an independent actuary regarding the adequacy of guarantee fees, the adequacy of the Catastrophic Fund, and the adequacy of the percentage of the guarantee fee that is being allocated to the Catastrophic Fund;
any material deficiencies in the conduct of the operations of the MFA;
the overall operational status of the MFA;
operations, resources, and performance of the Board of Directors; and
such other relevant matters relating to the Board of Directors and the MFA.
Sec. 206 Staff, experts, and consultants
Compensation—
In general— The MFA may appoint and fix the compensation of such officers, attorneys, economists, examiners, and other employees as may be necessary for carrying out its functions. The MFA shall appoint a Chief Risk Officer not later than 90 days after the date of the appointment of the Director.
Rates of pay— Rates of basic pay for all employees of the MFA may be set and adjusted by the MFA without regard to the provisions of chapter 51 or subchapter III of chapter 53 of title 5, United States Code.
Parity— The MFA may provide additional compensation and benefits to employees of the MFA, if the same type of compensation or benefits are then being provided by any agency referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not then being provided, could be provided by such an agency under applicable provisions of law, rule, or regulation. In setting and adjusting the total amount of compensation and benefits for employees, the MFA shall consult with, and seek to maintain comparability with, the agencies referred to under section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).
Detail of government employees— Upon request of the Director, any Federal Government employee may be detailed to the MFA or the Board of Directors without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.
Experts and consultants— The Director shall procure the services of experts and consultants as the Director considers necessary or appropriate.