Protecting Access to Safe Mortgages Act - Amends the Federal National Mortgage Association Charter Act and the Federal Home Loan Mortgage Corporation Act to increase mortgage portfolio limitations placed upon: (1) the Federal National Mortgage Association (Fannie Mae); and (2) the Federal Home Loan Mortgage Corporation (Freddie Mac), respectively.
Instructs the Director of the Office of Federal Housing Enterprise Oversight (OFHEO) of the Department of Housing and Urban Development (HUD) to lift: (1) the limitation on growth provision set forth in the Fannie Mae Consent Order; and (2) the voluntary temporary growth limitation described in a certain Freddie Mac Letter.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3777 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 3777
To temporarily raise the portfolio caps applicable to Freddie Mac and
Fannie Mae, to provide the necessary financing to curb foreclosures by
facilitating the refinancing of at-risk subprime borrowers into safe,
prime loans, to preserve liquidity in the mortgage lending markets, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 9, 2007
Ms. Bean (for herself and Mr. Neugebauer) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To temporarily raise the portfolio caps applicable to Freddie Mac and
Fannie Mae, to provide the necessary financing to curb foreclosures by
facilitating the refinancing of at-risk subprime borrowers into safe,
prime loans, to preserve liquidity in the mortgage lending markets, 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 Access to Safe Mortgages
Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) American families will be severely harmed by an
unprecedented wave of potential foreclosures expected to occur
in the next 12 months, as adjustable rate subprime mortgages
reset to higher interest rates;
(2) preventing such foreclosures and facilitating the
refinancing of at-risk subprime borrowers into safe prime loans
will require additional capacity on the part of the government
sponsored enterprises, the Federal National Mortgage
Association, and the Federal Home Loan Mortgage Association,
and any affiliates thereof, to purchase additional financing;
(3) there is a lack of liquidity in the financial markets
for mortgage backed securities, which threatens to impair
financing for all mortgages; and
(4) the government sponsored enterprises, the Federal
National Mortgage Association, and the Federal Home Loan
Mortgage Corporation, and any affiliates thereof, are uniquely
positioned to provide the financing necessary to alleviate the
predicted wave of upcoming foreclosures, and the liquidity
necessary to help United States markets.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Director.--The term ``Director'' means the Director of
the Office of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development.
(2) Enterprise.--The term ``enterprise'' means--
(A) the Federal National Mortgage Association, and
any affiliate thereof; and
(B) the Federal Home Loan Mortgage Corporation, and
any affiliate thereof.
(3) Fannie mae consent order.--The term ``Fannie Mae
Consent Order'' means the order of the Office of Federal
Housing Enterprises Oversight dated May 23, 2006, in the matter
of the Federal National Mortgage Association.
(4) Freddie mac letter.--The term ``Freddie Mac Letter''
means the letter dated July 31, 2006, from the Chairman and
Chief Executive Officer of the Federal Home Loan Mortgage
Corporation to the Director.
(5) OFHEO.--The term ``OFHEO'' means the Office of Federal
Housing Enterprises Oversight.
SEC. 4. LIFTING OF PORTFOLIO CAPS.
(a) In General.--Immediately upon the date of enactment of this
Act, the Director shall terminate, suspend, modify, or otherwise lift--
(1) the limitation on growth provision set forth in section
4, Article III of the Fannie Mae Consent Order, as interpreted
and modified by OFHEO on September 19, 2007; and
(2) the voluntary temporary growth limitation described in
the Freddie Mac Letter, as interpreted and modified by OFHEO on
September 19, 2007.
(b) Factors.--In carrying out subsection (a), the Director shall
increase the mortgage portfolio limitations of both enterprises by not
less than 10 percent, unless the Director certifies in writing to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives, and
demonstrates by compelling evidence that such action is likely to
result in a significant depletion of the core capital of an enterprise,
or otherwise create an unsafe and unsound condition.
(c) Rule of Construction.--Nothing in this section shall be
construed to prevent or prohibit the Director from exercising any
authority of the Director to terminate, suspend, modify, or otherwise
lift the limitations referred to in paragraphs (1) and (2) of
subsection (a) beyond the minimum increase specified in subsection (b),
as the Director deems appropriate.
SEC. 5. SUNSET PROVISION.
This Act is repealed, effective 1 year after the date of enactment
of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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