118 HR 5837 IH: Protecting America's Property Rights Act
U.S. House of Representatives
2023-09-29
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I
118th CONGRESS
1st Session
H. R. 5837
IN THE HOUSE OF REPRESENTATIVES
September 29, 2023
Mr. Garbarino (for himself and Mr. Vicente Gonzalez of Texas) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To provide additional requirements for the purchase and sale of conventional mortgages by the enterprises, and for other purposes.
1.

Short title
This Act may be cited as the “Protecting America's Property Rights Act”.
2.

Fannie Mae charter amendments
(a)

Purchase and sale of conventional mortgages
Section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is amended by inserting “No such purchase of a conventional mortgage secured by a property comprising one- to four-family dwelling units shall be made unless the mortgage is secured by real property and the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State, territory, or district in which the property securing the mortgage is located.” after the first sentence.
(b)

Approval of new activities and risk
Section 302(b)(6) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(6)) is amended to read as follows:
“(6)

Prior approval of Director and Secretary for new programs
(A)

In general
The corporation may not implement any new program, activity, product, or type of risk unless the corporation first obtains the approval of the Director of the Federal Housing Finance Agency and the Secretary of the Treasury.
(B)

Hearings
The Director of the Federal Housing Finance Agency shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on a semi-annual basis regarding any new program, activity, product, or type of risk approved under subparagraph (A).”.
(c)

Secondary market operations
Section 304(a) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(a)) is amended—
(1)
in paragraph (1), in the first sentence, by inserting “and for which the priority of the lien of the mortgage is insured by a title insurance companies licensed and authorized to do business in the State, territory, or district in which the property securing the mortgage is located” before the period at the end; and
(2)
in paragraph (2), in the second sentence, by striking “or (B) to originate mortgage loans” and inserting “(B) to originate mortgage loans; or (C) to purchase mortgages for which the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State, territory, or district in which the property securing the mortgage is located”.
3.

Freddie Mac charter amendments
(a)

Purchase and sale of conventional mortgages
Section 305(a)(2) of the Federal Home Loan Corporation Act (12 U.S.C. 1454(a)(2)) is amended by inserting “The Corporation may not purchase a conventional mortgage secured by a property comprising one- to four-family dwelling units unless the mortgage is secured by real property and the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State in which the property securing the mortgage is located.” after the second sentence.
(b)

Approval of new activities and risk
Section 305(c) of the Federal Home Loan Corporation Act (12 U.S.C. 1454(c)) is amended to read as follows:
“(c)

Prior approval of Director and Secretary for new programs
(1)

In general
The Corporation may not implement any new program, activity, product, or type of risk unless the Corporation first obtains the approval of the Director of the Federal Housing Finance Agency and the Secretary of the Treasury.
(2)

Hearings
The Director of the Federal Housing Finance Agency shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on a semi-annual basis regarding any new program, activity, product, or type of risk approved under paragraph (1).”.
(c)

Secondary market operations
Section 305(a) of the Federal Home Loan Corporation Act (12 U.S.C. 1454(a)) is amended—
(1)
in paragraph (1), in the first sentence, by inserting “for which the priority of the lien of the mortgage is insured by a title insurance companies licensed and authorized to do business in the State in which the property securing the mortgage is located” before the period at the end; and
(2)
in paragraph (5), in the third sentence, by striking “or (B) to originate mortgage loans” and inserting “(B) to originate mortgage loans; or (C) to purchase mortgages for which the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State in which the property securing the mortgage is located”.
4.

Definition of conforming mortgage
Section 1303(26) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502(26)) is amended—
(1)
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly;
(2)
by striking “mortgage having” and inserting
“mortgage—
(A)
having”;
(3)
in subparagraph (A)(ii), as so redesignated, by striking the period at the end and inserting “; and”; and
(4)
by adding at the end the following:
“(B)
for which the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State in which the property securing the mortgage is located.”.