MONITORING AND ENFORCING COMPLIANCE WITH HOUSING GOALS.

SEC. 1130. MONITORING AND ENFORCING COMPLIANCE WITH HOUSING GOALS.(a) In General.—Section 1336 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4566) is amended by striking subsections (b) and (c) and inserting the following:“(b) Notice and Preliminary Determination of Failure To Meet Goals.—“(1) Notice.—If the Director preliminarily determines that an enterprise has failed, or that there is a substantial probability that an enterprise will fail, to meet any housing goal under this subpart, the Director shall provide written notice to the enterprise of such a preliminary determination, the reasons for such determination, and the information on which the Director based the determination.“(2) Response period.—“(A) In general.—During the 30-day period beginning on the date on which an enterprise is provided notice under paragraph (1), the enterprise may submit to the Director any written information that the enterprise considers appropriate for consideration by the Director in finally determining whether such failure has occurred or whether the achievement of such goal was or is feasible.“(B) Extended period.—The Director may extend the period under subparagraph (A) for good cause for not more than 30 additional days.“(C) Shortened period.—The Director may shorten the period under subparagraph (A) for good cause.“(D) Failure to respond.—The failure of an enterprise to provide information during the 30-day period under this paragraph (as extended or shortened) shall waive any right 122 STAT. 2707 of the enterprise to comment on the proposed determination or action of the Director.“(3) Consideration of information and final determination.—“(A) In general.—After the expiration of the response period under paragraph (2), or upon receipt of information provided during such period by the enterprise, whichever occurs earlier, the Director shall issue a final determination on—“(i) whether the enterprise has failed, or there is a substantial probability that the enterprise will fail, to meet the housing goal; and“(ii) whether (taking into consideration market and economic conditions and the financial condition of the enterprise) the achievement of the housing goal was or is feasible.“(B) Considerations.—In making a final determination under subparagraph (A), the Director shall take into consideration any relevant information submitted by the enterprise during the response period.“(C) Notice.—The Director shall provide written notice, including a response to any information submitted during the response period, to the enterprise, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives, of—“(i) each final determination under this paragraph that an enterprise has failed, or that there is a substantial probability that the enterprise will fail, to meet a housing goal;“(ii) each final determination that the achievement of a housing goal was or is feasible; and“(iii) the reasons for each such final determination.“(c) Cease and Desist, Civil Money Penalties, and Remedies Including Housing Plans.—“(1) Requirement.—If the Director finds, pursuant to subsection (b), that there is a substantial probability that an enterprise will fail, or has actually failed, to meet any housing goal under this subpart, and that the achievement of the housing goal was or is feasible, the Director may require that the enterprise submit a housing plan under this subsection. If the Director makes such a finding and the enterprise refuses to submit such a plan, submits an unacceptable plan, or fails to comply with the plan, the Director may issue a cease and desist order in accordance with section 1341 and impose civil money penalties in accordance with section 1345.“(2) Housing plan.—If the Director requires a housing plan under this subsection, such a plan shall be—“(A) a feasible plan describing the specific actions the enterprise will take—“(i) to achieve the goal for the next calendar year; and“(ii) if the Director determines that there is a substantial probability that the enterprise will fail to meet a goal in the current year, to make such improvements and changes in its operations as are reasonable in the remainder of such year; and122 STAT. 2708“(B) sufficiently specific to enable the Director to monitor compliance periodically.“(3) Deadline for submission.—The Director shall establish a deadline for an enterprise to submit a housing plan to the Director, which may not be more than 45 days after the enterprise is provided notice. The Director may extend the deadline to the extent that the Director determines necessary. Any extension of the deadline shall be in writing and for a time certain.“(4) Approval.—The Director shall review each submission by an enterprise, including a housing plan submitted under this subsection, and, not later than 30 days after submission, approve or disapprove the plan or other action. The Director may extend the period for approval or disapproval for a single additional 30-day period if the Director determines it necessary. The Director shall approve any plan that the Director determines is likely to succeed, and conforms with the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act (as applicable), this title, and any other applicable provision of law.“(5) Notice of approval and disapproval.—The Director shall provide written notice to any enterprise submitting a housing plan of the approval or disapproval of the plan (which shall include the reasons for any disapproval of the plan) and of any extension of the period for approval or disapproval.“(6) Resubmission.—If the initial housing plan submitted by an enterprise under this section is disapproved, the enterprise shall submit an amended plan acceptable to the Director not later than 15 days after such disapproval, or such longer period that the Director determines is in the public interest.“(7) Cease and desist orders; civil money penalties.—Solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), if the Director requires an enterprise to submit a housing plan under this subsection and the enterprise refuses to submit such a plan, submits an unacceptable plan, or fails to comply with the plan, the Director may issue a cease and desist order in accordance with section 1341, impose civil money penalties in accordance with section 1345, exercise other appropriate enforcement authority or seek other appropriate actions.”.(b) Conforming Amendment.—The heading for subpart C of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended to read as follows:“Subpart C—Enforcement”.(c) Cease and Desist Proceedings .—(1) Repeal.—Section 1341 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4581) is hereby repealed.(2) Cease and desist proceedings.—The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by inserting before section 1342 the following:“SEC. 1341. CEASE AND DESIST PROCEEDINGS.“(a) Grounds for Issuance.—The Director may issue and serve a notice of charges under this section upon an enterprise if the Director determines that—122 STAT. 2709 “(1) the enterprise has failed to submit a report under section 1327, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;“(2) the enterprise has failed to submit the information required under subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act, or subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act;“(3) solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), the enterprise has failed to submit a housing plan that complies with section 1336(c) within the applicable period; or“(4) solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), the enterprise has failed to comply with a housing plan under section 1336(c).“(b) Procedure.—“(1) Notice of charges.—Each notice of charges issued under this section shall contain a statement of the facts constituting the alleged conduct and shall fix a time and place at which a hearing will be held to determine on the record whether an order to cease and desist from such conduct should issue.“(2) Issuance of order.—If the Director finds on the record made at a hearing described in paragraph (1) that any conduct specified in the notice of charges has been established (or the enterprise consents pursuant to section 1342(a)(4)), the Director may issue and serve upon the enterprise an order requiring the enterprise to—“(A) submit a report under section 1327;“(B) solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), submit a housing plan in compliance with section 1336(c);“(C) solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), comply with the housing plan in compliance with section 1336(c); or“(D) provide the information required under subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act, or subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act.“(c) Effective Date.—An order under this section shall become effective upon the expiration of the 30-day period beginning on the date of service of the order upon the enterprise (except in the case of an order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as provided in the order, except to the extent that the order is stayed, modified, terminated, or set aside by action of the Director or otherwise, as provided in this subpart.” .(d) Civil Money Penalties.—(1) Repeal.—Section 1345 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4585) is hereby repealed.(2) Civil money penalties.—The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by inserting after section 1344 the following:122 STAT. 2710 “SEC. 1345. CIVIL MONEY PENALTIES.“(a) Authority.—The Director may impose a civil money penalty, in accordance with the provisions of this section, on any enterprise that has failed to—“(1) submit a report under section 1327, following a notice of such failure, an opportunity for comment by the enterprise, and a final determination by the Director;“(2) submit the information required under subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act or subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act;“(3) solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), submit a housing plan or perform its responsibilities under a remedial order issued pursuant to section 1336(c) within the required period; or“(4) solely with respect to the housing goals established under sections 1332(a) and 1333(a)(1), comply with a housing plan for the enterprise under section 1336(c).“(b) Amount of Penalty.—The amount of a penalty under this section, as determined by the Director, may not exceed—“(1) for any failure described in paragraph (1), (5), or (6) of subsection (a), $100,000 for each day that the failure occurs; and“(2) for any failure described in paragraph (2), (3), or (4) of subsection (a), $50,000 for each day that the failure occurs.“(c) Procedures.—“(1) Establishment.—The Director shall establish standards and procedures governing the imposition of civil money penalties under this section. Such standards and procedures—“(A) shall provide for the Director to notify the enterprise in writing of the determination of the Director to impose the penalty, which shall be made on the record;“(B) shall provide for the imposition of a penalty only after the enterprise has been given an opportunity for a hearing on the record pursuant to section 1342; and“(C) may provide for review by the Director of any determination or order, or interlocutory ruling, arising from a hearing.“(2) Factors in determining amount of penalty.—In determining the amount of a penalty under this section, the Director shall give consideration to factors including—“(A) the gravity of the offense;“(B) any history of prior offenses;“(C) ability to pay the penalty;“(D) injury to the public;“(E) benefits received;“(F) deterrence of future violations;“(G) the length of time that the enterprise should reasonably take to achieve the goal; and“(H) such other factors as the Director may determine, by regulation, to be appropriate.“(d) Action to Collect Penalty.—If an enterprise fails to comply with an order by the Director imposing a civil money penalty under this section, after the order is no longer subject to review, as provided in sections 1342 and 1343, the Director may bring an action in the United States District Court for the District of Columbia to obtain a monetary judgment against the enterprise, 122 STAT. 2711 and such other relief as may be available. The monetary judgment may, in the court’s discretion, include the attorneys’ fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the order imposing the penalty shall not be subject to review.“(e) Settlement by Director.—The Director may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.“(f) Deposit of Penalties.—The Director shall use any civil money penalties collected under this section to help fund the Housing Trust Fund established under section 1338.” .(e) Director Authority.—(1) Authority to bring a civil action.—Section 1344(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4584) is amended by striking “The Secretary may request the Attorney General of the United States to bring a civil action” and inserting “The Director may bring a civil action”.(2) Subpoena enforcement.—Section 1348(c) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4588(c)) is amended by inserting “may bring an action or” before “may request”.(3) Conforming amendments.—Subpart C of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4581 et seq.) is amended by striking “Secretary” each place that term appears and inserting “Director” in each of—(A) section 1342 (12 U.S.C. 4582);(B) section 1343 (12 U.S.C. 4583);(C) section 1346 (12 U.S.C. 4586);(D) section 1347 (12 U.S.C. 4587); and(E) section 1348 (12 U.S.C. 4588).