; and (2) by adding at the end the following new subclause: (V) The Federal Housing Finance Agency, with regard to mortgages owned or guaranteed by an entity regulated or supervised by such agency. . 607. FHFA authority to regulate and examine contractual counterparties Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the preceding provisions of this Act, is further amended ( 12 U.S.C. 4517 ) by adding at the end the following new subsection: (k) Regulation and examination of contractual counterparties (1) Authority When a regulated entity or the Office of Finance causes to be performed for itself, by contract or otherwise and whether on or off its premises, any services authorized to that regulated entity or the Office of Finance by its authorizing statute or the Federal Housing Enterprises Financial Safety and Soundness Act of 1992— (A) such performance shall be subject to regulation and examination by the Federal Housing Finance Agency to the same extent as if such services were being performed by the regulated entity or the Office of Finance itself on its own premises, and (B) the regulated entity or the Office of Finance shall notify the Director of the existence of the service relationship within thirty days after the making of such service contract or the performance of the service, whichever occurs first. (2) Regulations and orders The Director may issue such regulations and orders as may be necessary to enable the Agency to administer and to carry out the purposes of this subsection and to prevent evasions thereof. . 608. Election of directors of a merged Federal Home Loan Bank Section 7 of the Federal Home Loan Bank Act ( 12 U.S.C. 1427 ) is amended— (1) in subsection (a)(1), by inserting and subsection (d) after paragraphs (2) through (4) ; (2) in subsection (b)— (A) in the matter preceding paragraph (2)— (i) by striking Each and inserting (1)(A) Except as provided in subsection (d), each ; (ii) by inserting (B) before No person