To amend the Home Owners' Loan Act to modify the separate capitalization rule for the subsidiaries of savings associations that engage in activities not permissible for national banks.

Amends the Home Owners' Loan Act to delineate conditions under which the Director of the Office of Thrift Supervision may modify, in his or her sole discretion, the statutory percentages applicable to the capitalization requirements (separate capitalization rule) of savings associations' subsidiaries engaged in activities that are not permissible for national banks. Prescribes percentage limitations.