[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2687 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 2687
To provide additional requirements for the purchase and sale of
conventional mortgages by the enterprises, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 27, 2023
Mr. Kennedy introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To provide additional requirements for the purchase and sale of
conventional mortgages by the enterprises, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting America's Property Rights
Act''.
SEC. 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''.
SEC. 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''.
SEC. 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.''.
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