CEASE AND DESIST PROCEEDINGS.

SEC. 1151. CEASE AND DESIST PROCEEDINGS. Section 1371 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4631) is amended—(1) by striking subsections (a) and (b) and inserting the following:“(a) Issuance for Unsafe or Unsound Practices and Violations.—“(1) Authority of director.—If, in the opinion of the Director, a regulated entity or any entity-affiliated party is engaging or has engaged, or the Director has reasonable cause to believe that the regulated entity or any entity-affiliated party is about to engage, in an unsafe or unsound practice 122 STAT. 2768 in conducting the business of the regulated entity or the Office of Finance, or is violating or has violated, or the Director has reasonable cause to believe is about to violate, a law, rule, regulation, or order, or any condition imposed in writing by the Director in connection with the granting of any application or other request by the regulated entity or the Office of Finance or any written agreement entered into with the Director, the Director may issue and serve upon the regulated entity or entity-affiliated party a notice of charges in respect thereof.“(2) Limitation.—The Director may not, pursuant to this section, enforce compliance with any housing goal established under subpart B of part 2 of subtitle A of this title, with section 1336 or 1337 of this title, with subsection (m) or (n) of section 309 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(m), (n)), with subsection (e) or (f) of section 307 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1456(e), (f)), or with paragraph (5) of section 10(j) of the Federal Home Loan Bank Act (12 U.S.C. 1430(j)).“(b) Issuance for Unsatisfactory Rating.—If a regulated entity receives, in its most recent report of examination, a less-than-satisfactory rating for asset quality, management, earnings, or liquidity, the Director may (if the deficiency is not corrected) deem the regulated entity to be engaging in an unsafe or unsound practice for purposes of subsection (a).”;(2) in subsection (c)—(A) in paragraph (1), by inserting before the period at the end the following: “, unless the party served with a notice of charges shall appear at the hearing personally or by a duly authorized representative, the party shall be deemed to have consented to the issuance of the cease and desist order”; and(B) in paragraph (2)—(i) by striking “or director” and inserting “director, or entity-affiliated party”; and(ii) by inserting “or entity-affiliated party” before “consents”;(3) in each of subsections (c), (d), and (e)—(A) by striking “the enterprise” each place that term appears and inserting “the regulated entity”;(B) by striking “an enterprise” each place that term appears and inserting “a regulated entity”; and(C) by striking “conduct” each place that term appears and inserting “practice”;(4) in subsection (d)—(A) in the matter preceding paragraph (1)—(i) by striking “or director” and inserting “director, or entity-affiliated party”; and(ii) by inserting “to require a regulated entity or entity-affiliated party” after “includes the authority”;(B) in paragraph (1)—(i) by striking “to require an executive officer or a director to”; and(ii) by striking “loss” and all that follows through “person” and inserting “loss, if”;(iii) in subparagraph (A), by inserting “such entity or party or finance facility” before “was”; and122 STAT. 2769(iv) by striking subparagraph (B) and inserting the following:“(B) the violation or practice involved a reckless disregard for the law or any applicable regulations or prior order of the Director;”; and(C) in paragraph (4), by inserting “loan or” before “asset”;(5) in subsection (e), by inserting “or entity-affiliated party”—(A) before “or any executive”; and(B) before the period at the end; and(6) in subsection (f)—(A) by striking “enterprise” and inserting “regulated entity, finance facility,”; and(B) by striking “or director” and inserting “director, or entity-affiliated party”.