SEC-271 -- REPORT ON CREDIT ENHANCEMENT.


 (a) In General.-The Comptroller General of the United States shall
carry out a study of ways in which financing for affordable housing may
be made available to assist in the most efficient implementation of
comprehensive housing affordability strategies of participating
jurisdictions. In conducting the study, the Comptroller General shall
draw upon the expertise of such representatives of State and local
government, State and local housing finance agencies, agencies of the
United States, government-sponsored mortgage finance corporations,
for-profit and nonprofit housing developers, private financial
institutions, and sources of long-term mortgage investment, as the
Comptroller General determines to be appropriate.

 (b) Report.-Not later than one year after the enactment of this Act,
the Comptroller General shall submit to the Congress and the Secretary
a report containing any recommendations for legislative or
administrative actions needed to improve the availability of mortgage
finance for affordable housing. The report shall include, but need not
be limited to, an assessment of-

 (1) the need for the Department of Housing and Urban Development or
other agencies of the United States to provide partial credit
enhancement to make financing for affordable housing available
efficiently and at the lowest possible cost; and

 (2) alternative ways in which-

 (A) the Department could provide any needed credit enhancement on a
one-stop basis for participating jurisdictions, in coordination with
other forms of assistance under this subtitle;

 (B) the Department or other agencies of the Federal Government could
assist government-sponsored mortgage finance corporations in the
financing of mortgages on affordable housing through the development of
mortgage-backed securities that are more standardized and readily traded
in the capital markets;

 (C) the capacities of existing agencies of the United States could be
used to provide mortgage finance more efficiently for affordable housing
through government-sponsored mortgage finance corporations; and

 (D) the interests of the Federal Government could be protected and any
risks of loss could be minimized through requirements for fees, mortgage
insurance, risk-sharing, secure collateral, and guarantees by other
parties, and through standards relating to minimum capital and prior
experience with underwriting, origination and servicing.
Subtitle F-General Provisions