This bill updates rules for how the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (the "Enterprises") manage risks from liens, encumbrances, and defects in property title. It adds a new item to the Federal Housing Enterprises Financial Safety and Soundness Act that says Enterprises should manage those risks by using third-party products that are regulated either by a State insurance authority (as defined in 15 U.S.C. 6809(11)) or a State regulator (as defined in 12 U.S.C. 5481(22)).
The bill also requires the Director (as defined in 12 U.S.C. 4052(9)) to set a capital rule: Enterprises must hold an additional 1.00 percent of the unpaid principal balance for any mortgage the Enterprises buy that does not meet the new third-party product regulation requirement. The Director must issue regulations and guidance within 180 days after the bill becomes law to ensure compliance, including verifying that products are appropriately regulated. The bill defines "Enterprises" by reference to 12 U.S.C. 4502(10).
If your mortgage is purchased by one of the Enterprises, this bill directs those Enterprises to rely on third-party products for lien and title risk only if those products are regulated by an approved state authority. If a mortgage lacks a qualifying regulated product, the Enterprises must hold extra capital against that mortgage. No publicly available information on direct effects for individual borrowers is included in the bill text.
The bill requires the Enterprises to hold an additional 1.00 percent of the unpaid principal balance on any purchased mortgage that does not meet the new regulation requirement. The Director must issue regulations and guidance within 180 days. No publicly available information on federal budgetary costs, administrative costs, or broader economic effects is included in the bill text.
No publicly available information.
No publicly available information.