GSE Credit Risk Equitable Treatment Act of 2011

GSE Credit Risk Equitable Treatment Act of 2011 - Amends the Securities Exchange Act of 1934 to require that credit risk retention regulations ensure that there is no difference in the treatment of asset-backed securities securitized by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporatioin (Freddie Mac) (government-sponsored enterprises or GSEs), solely because of securitization by the GSE, from the treament of other asset-backed securities securitized by any other entity.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1223 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1223

 To amend the Securities Exchange Act of 1934 to ensure mortgages held 
     or securitized by Fannie Mae and Freddie Mac and asset-backed 
 securities issued by such enterprises are treated similarly as other 
 mortgages and asset-backed securities for purposes of the credit risk 
                 retention requirements under such Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2011

 Mr. Garrett (for himself, Mr. Bachus, Mr. Hensarling, and Mr. Pearce) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Securities Exchange Act of 1934 to ensure mortgages held 
     or securitized by Fannie Mae and Freddie Mac and asset-backed 
 securities issued by such enterprises are treated similarly as other 
 mortgages and asset-backed securities for purposes of the credit risk 
                 retention requirements under such Act.

    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 ``GSE Credit Risk Equitable Treatment 
Act of 2011''.

SEC. 2. EQUITABLE TREATMENT OF FANNIE MAE AND FREDDIE MAC UNDER CREDIT 
              RISK RETENTION REQUIREMENTS.

    (a) In General.--Section 15G of the Securities Exchange Act of 1934 
(15 U.S.C. 78o-11) is amended--
            (1) in subsection (c)(1)--
                    (A) in subparagraph (F), by striking ``and'' at the 
                end;
                    (B) in subparagraph (G), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(H) provide for no difference in the treatment of 
                an asset-backed security securitized by the Federal 
                National Mortgage Association or the Federal Home Loan 
                Mortgage Corporation, solely because of securitization 
                by such enterprise, from the treatment of asset-backed 
                securities securitized by any other entity.''; and
            (2) in subsection (e)--
                    (A) by redesignating paragraph (6) as paragraph 
                (7); and
                    (B) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) Mortgages of fannie mae and freddie mac.--The 
        regulations issued under paragraph (4) shall provide that the 
        purchase, holding, or securitization of any mortgage by the 
        Federal National Mortgage Association or the Federal Home Loan 
        Mortgage Corporation shall not solely of itself have any effect 
        on whether such mortgage qualifies as a qualified residential 
        mortgage under such paragraph.''.
    (b) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Federal banking agencies (as such term is 
defined in section 15G(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78o-11(a)), the Securities and Exchange Commission, the 
Secretary of Housing and Urban Development, and the Director of the 
Federal Housing Finance Agency, shall jointly issue regulations to 
carry out subsections (c)(1)(H) and (e)(6) of section 15G of the 
Securities Exchange Act of 1934, as added by the amendments made by 
subsection (a) of this section.
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