No GSE Subsidies for Investor Properties Act

No GSE Subsidies for Investor Properties Act

This bill prohibits government-sponsored enterprises (i.e., Fannie Mae and Freddie Mac) from purchasing or acquiring a mortgage secured by an investor property loan (i.e., a property comprised of 1-to-4 family dwelling units that is not the principal residence or a second home of the borrower) 18 months after the date of enactment. Further, these enterprises must implement a plan to gradually reduce the purchase and acquisition of such loans.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3040 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 3040

  To prohibit Fannie Mae and Freddie Mac from purchasing or otherwise 
       acquiring investor property loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 21, 2021

  Mr. Toomey introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To prohibit Fannie Mae and Freddie Mac from purchasing or otherwise 
       acquiring investor property loans, 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 ``No GSE Subsidies for Investor 
Properties Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Conventional mortgage.--The term ``conventional 
        mortgage'' has the meaning given the term in section 302(i) of 
        the Federal Home Loan Mortgage Act (12 U.S.C. 1451(i)).
            (2) Enterprise.--The term ``enterprise'' has the meaning 
        given the term in section 1303 of the Federal Housing 
        Enterprises Financial Safety and Soundness Act of 1992 (12 
        U.S.C. 4502).
            (3) Investor property loan.--The term ``investor property 
        loan'' means a conventional mortgage secured by a property 
        comprising 1-to-4 family dwelling units that is not the 
        principal residence or a second home of the borrower.

SEC. 3. PROHIBITION ON PURCHASE OR ACQUISITION OF INVESTOR PROPERTY 
              LOANS.

    (a) In General.--Notwithstanding any other provision of law, 
including the Federal National Mortgage Association Charter Act (12 
U.S.C. 1716 et seq.) or the Federal Home Loan Mortgage Corporation Act 
(42 U.S.C. 1451 et seq.), on and after the date that is 18 months after 
the date of enactment of this Act, an enterprise may not purchase or 
otherwise acquire an investor property loan.
    (b) Transition Plans.--The Federal Housing Finance Agency shall 
require each enterprise to develop and implement a plan to gradually 
reduce the purchase and acquisition of investor property loans by the 
enterprise to achieve compliance with subsection (a) while mitigating 
the risk of disruption to the housing finance market in the United 
States.
                                 <all>