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Full Text of this Amendment
At the appropriate place, insert the following:
SEC. __. MANDATORY LOAN GUARANTEES AND CREDIT ENHANCEMENT EFFORTS.
Section 109(a) of the Emergency Economic Stabilization Act of 2008 (division A of Public Law 110-343) is amended--
(1) by striking the last sentence;
(2) by striking ``To the extent'' and inserting the following:
``(1) IN GENERAL.--To the extent''; and
(3) by adding at the end the following:
``(2) LOAN GUARANTEES AND CREDIT ENHANCEMENTS REQUIRED.--
``(A) IN GENERAL.--In addition to actions required under paragraph (1), the Secretary shall, not later than 15 days after the date of enactment of this paragraph, designate the Corporation, on a reimbursable basis, to design and carry out a plan to use loan guarantees or credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.
``(B) AGGREGATE AMOUNTS.--The Secretary shall make and fund guarantees and credit enhancements developed under this paragraph in amounts of--
``(i) $10,000,000,000 in aggregate estimated subsidy costs, and amounts specified under paragraph (2) of section 115(a) shall be reduced by the subsidy cost of any guarantees or credit enhancements funded by the Secretary under this clause; and
``(ii) an additional $15,000,000,000, in aggregate estimated subsidy costs, and amounts specified under paragraph (3) of section 115(a) shall be reduced by the subsidy cost of any guarantees or credit enhancements funded by the Secretary under this clause.
``(C) CONTRACTING AUTHORITY.--In carrying out this paragraph, the Corporation may use its contracting authority under section 9 of the Federal Deposit Insurance Act.''.
(As printed in the Congressional Record for the Senate on Nov 20, 2008.)