FEDERAL HOUSING FINANCE BOARD ESTABLISHED.

SEC. 702. FEDERAL HOUSING FINANCE BOARD ESTABLISHED. (a) In General.—The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by inserting after section 2 the following new sections: “SEC. 2A. FEDERAL HOUSING FINANCE BOARD. “(a) Establishment.— “(1) In general.—There is established the Federal Housing Finance Board, which shall succeed to the authority of the Federal Home Loan Bank Board with respect to the Federal Home Loan Banks. “(2) Status.—The Board shall be an independent agency in the executive branch of the Government. “(3) Duties.—The duties of the Board shall be— “(A) to supervise the Federal Home Loan Banks, “(B) to ensure that the Federal Home Loan Banks carry out their housing finance mission, “(C) to ensure the Federal Home Loan Banks remain adequately capitalized and able to raise funds in the capital markets, and “(D) to ensure the Federal Home Loan Banks operate in a safe and sound manner. “(b) Management.— “(1) In general.—The management of the Board shall be vested in a Board of Directors consisting of 5 directors as follows: “(A) The Secretary who shall serve without additional compensation. “(B) Four citizens of the United States, appointed by the President, by and with the advice and consent of the Senate, each of whom shall hold office for a term of 7 years. “(2) Provisions relating to appointed directors.— “(A) In general.—The directors appointed pursuant to paragraph (1)(B) shall be from among persons with extensive experience or training in housing finance or with a commitment to providing specialized housing credit. An appointed director shall not hold any other appointed office during his or her term as director. Not more than 3 directors shall be members of the same political party. Not more than 1 appointed director shall be from any single district of the Federal Home Loan Bank System. Nominations pursuant to this subparagraph shall be referred in the Senate to the Committee on Banking, Housing, and Urban Affairs. “(B) Consumer representative.—At least 1 director shall be chosen from an organization with more than a 2-year history of representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections. “(C) Limitations on conflicts of interest.—No director may— “(i) serve as a director or officer of any Federal Home Loan Bank or any member of any Bank; or “(ii) hold shares of, or any other financial interest in, any member of any such Bank. “(3) Initial terms.—Notwithstanding paragraph (2), of the directors first appointed— 103 STAT. 414 “(A) one shall be appointed for a term of 1 year; “(B) one shall be appointed for a term of 3 years; and “(C) one shall be appointed for a term of 5 years. “(c) Chairperson; Transitional Provisions.— “(1) In general.—The President shall designate 1 of the appointed directors to be the Chairperson of the Board. The Chairperson shall designate another director to serve as Acting Chairperson during the absence or disability of the Chairperson. “(2) Transitional provision.—Beginning on the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, until such time that at least 2 directors are appointed and confirmed pursuant to subsection (b), the Secretary shall act for all purposes and with the full powers of the Board of Directors. The Secretary may utilize the services of employees from the Department of Housing and Urban Development to perform services for the Board of Directors during such transition period. “(d) Vacancies.— “(1) In general.—Any vacancy on the Board of Directors shall be filled in the manner in which the original appointment was made. Any director appointed to fill a vacancy occurring before the expiration of the term for which such director’s predecessor was appointed shall be appointed only for the remainder of such term. Each director may continue to serve until a successor has been appointed and qualified. “(2) The secretary.—In the event of a vacancy in the office of Secretary or during the absence or disability of the Secretary, the Acting Secretary shall act as a director in place of the Secretary. “SEC. 2B. POWERS AND DUTIES. “(a) General Powers.—-The Board shall have the following powers: “(1) To supervise the Federal Home Loan Banks and to promulgate and enforce such regulations and orders as are necessary from time to time to carry out the provisions of this Act. “(2) To suspend or remove for cause a director, officer, employee, or agent of any Federal Home Loan Bank or joint office. The cause of such suspension or removal shall be communicated in writing to such director, officer, employee, or agent and to such Bank or joint office. Notwithstanding any other provision of this Act, no officer, employee, or agent of a Bank or joint office shall be a Federal officer or employee under any definition of either term in title 5, United States Code. “(3) To determine necessary expenditures of the Board under this Act and the manner in which such expenditures shall be incurred, allowed, and paid. “(4) To use the United States mails in the same manner and under the same conditions as a department or agency of the United States. “(b) Staff.— “(1) Board staff.—Subject to title IV of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the Board may employ, direct, and fix the compensation and number of employees, attorneys, and agents of the Federal Housing Finance Board, except that in no event shall the Board 103 STAT. 415delegate any function to any employee, administrative unit of any Bank, or joint office of the Federal Home Loan Bank System. The prohibition contained in the preceding sentence shall not apply to the delegation of ministerial functions including issuing consolidated obligations pursuant to section 11(b). In directing and fixing such compensation, the Board shall consult with and maintain comparability with the compensation at the Federal bank regulatory agencies. Such compensation shall be paid without regard to the provisions of other laws applicable to officers or employees of the United States, except the Chairperson and other Directors shall be compensated as prescribed in sections 5314 and 5315 of title 5, United States Code, respectively. “(2) Abolition of joint offices.—The joint or collective offices of the Federal Home Loan Bank System, except for the Office of Finance, are hereby abolished. “(c) Receipts of the Board.—Receipts of the Board derived from assessments levied upon the Federal Home Loan Banks and from other sources (other than receipts from the sale of consolidated Federal Home Loan Bank bonds and debentures issued under section 11 of this Act) shall be deposited in the Treasury of the United States. Salaries of the directors and other employees of the Board and all other expenses thereof may be paid from such assessments or other sources and shall not be construed to be Government Funds or appropriated monies, or subject to apportionment for the purposes of chapter 15 of title 31, United States Code, or any other authority. “(d) Annual Report.—The Board shall make an annual report to the Congress.”. (b) Audits and Reports.—Section 20 of the Federal Home Loan Bank Act (12 U.S.C. 1440) is amended by adding at the end the following: “In addition to such examinations, the Comptroller General may audit or examine the Board and the Banks, to determine the extent to which the Board and the Banks are fairly and effectively fulfilling the purposes of this Act.”. (c) Appointment of Inspector General.—Section 8E(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by striking “Federal Home Loan Bank Board,“ and inserting “Federal Housing Finance Board,”.